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29 March 2019
Florida Man Sentenced to More Than Three Years in Prison for Credit Card FraudRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore has sentenced Nicholas Whitetto (39, Quincy) to 42 months in federal prison for conspiracy to commit access device fraud. As part of his sentence, the court also entered a money judgment of $65,000, the proceeds of the credit card fraud.
Whitetto pleaded guilty on January 11, 2019.
According to court documents, Whitetto and others devised a scheme wherein they called a credit card company (referred to in court documents as the Banking Institution) and provided the personal identifying information of actual credit card account holders. Whitetto or another coconspirator then requested to be added as an authorized user on the credit card accounts and directed that the new authorized user’s credit cards be mailed to addresses controlled by the conspirators. The conspirators utilized this plan to fraudulently obtain at least 50 unauthorized credit cards.
Once they received the fraudulently-obtained credit cards in the mail, the conspirators went to various banks and made cash advance withdrawals. The conspirators also used the fraudulently-obtained cards to make unauthorized purchases. The Banking Institution suffered a loss exceeding $100,000.
On January 11, 2019, co-conspirator Frank Tillman pleaded guilty to his role in the scam. His sentencing hearing is scheduled for April 8, 2019.
This case was investigated by the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Rachel K. Jones.
Felon with Drugs and Gun Sentenced to 6 Years in Federal PrisonRead the Press Release
PITTSBURGH - A former resident of Westmoreland and Washington Counties in southwestern Pennsylvania has been sentenced in federal court to six years (72 months) in prison on his conviction of federal drug and firearms offenses, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy M. Bissoon imposed the sentence on Laurenti James Robertson, 28, of Monessen and Venetia, Pennsylvania.
According to information presented to the court, Robertson was stopped in a rental car on October 19, 2015, and found to be in possession of 158 stamp bags of heroin and $1,315.00 in cash. Five days later, on October 24, 2015, Robertson was stopped in a different vehicle and found to be in possession of 15 stamp bags of heroin and a loaded semi-automatic pistol. Robertson is precluded from possessing a firearm as a result of his separate 2013 felony convictions for Robbery and Theft. Federal law prohibits a felon from lawfully possessing a firearm or ammunition.
Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.
United States Attorney Brady commended the Drug Enforcement Administration (DEA) for the investigation leading to the successful prosecution of Robertson and acknowledged the many law enforcement agencies that provided valuable assistance, including the Canonsburg Police Department, the Monessen Police Department, The Pennsylvania State Police, the Charleroi Police Department, the Homestead Police Department and the Washington County Sheriff’s Office.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Federal Court Shuts Down Texas Tax Return PreparerRead the Press Release
A federal court in Beaumont, Texas, entered a permanent injunction against Sylvia Rodriguez, aka Sylvia Ornelas, barring her from preparing federal tax returns for others and owning or operating a tax preparation business, the Justice Department today announced.
The court found that Rodriguez engaged in fraudulent and deceptive conduct that substantially interfered with the administration of the tax laws.
In its complaint, the government alleged that Rodriguez prepared tax returns making false or fraudulent claims for the Earned Income Tax Credit, the fuel tax credit, and the American Opportunity Credit. In addition, Rodriguez allegedly reported fictitious business and inflated federal income tax withholdings on her customers’ returns. Also, according to the complaint, Rodriguez did not give some customers copies of their filed tax returns, or gave them returns that were different from those that were filed.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website about selecting a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Federal Court Bars Texas Return Preparer and Business from Preparing Tax ReturnsRead the Press Release
A federal court in Dallas, Texas, permanently enjoined Jhane Broadway, individually and doing business as Jeprofessionalz (aka MaxTaxPros), from preparing federal income tax returns for others, the Justice Department announced today.
The order, issued by District Judge David C. Godbey, also requires Broadway to mail or email notice of the injunction order to all customers for whom she prepared a federal tax return or claim for refund for tax years 2015 through 2017.
The government alleged that Broadway unlawfully prepared federal income tax returns that understate the tax liabilities of her customers by claiming false, improper, or inflated deductions, including fabricated Schedule A itemized deductions and Schedule C business losses.
The court’s order also prohibits Broadway from having an ownership interest in or working for any entity that prepares tax returns or represents clients before the Internal Revenue Service. Broadway consented to the order.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Fatal Overdose on the Menominee Indian Reservation Leads to Murder and Drug Distribution Charges for Two PeopleRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on March 26, 2019, a federal grand jury returned a three-count indictment against two people who allegedly distributed controlled substances on the Menominee Indian Reservation and led to the death of a man, and another who deleted messages between one of the defendants and the deceased. The indictment named Alissa M. Waupoose (Age: 28), Ronald J. Frechette (Age: 39), and Kelly Nacotee (Age: 41), all of whom are enrolled members of the Menominee Indian Tribe of Wisconsin. The three all reside in Keshena, which is on the Menominee Indian Reservation in Wisconsin.
Count One of the indictment charged Waupoose and Frechette with Distribution of Controlled Substance Analogue Resulting Death in violation of 21 U.S.C. §§ 813 and 841. Waupoose and Frechette face a mandatory minimum of 20 years, and up to life, in prison; up to a $5 million fine; and from 3 years to life on supervised release. The charge also carries a $100 special assessment.
Count Two of the indictment charged Waupoose and Frechette with Second-Degree Murder in violation of 18 U.S.C. §§ 1111, 1153, and 2. Waupoose and Frechette each face a maximum sentence of life in prison, up to a $250,000 fine, and up to 5 years of supervised release. The charge also carries a $100 special assessment.
Count Three of the indictment charged Kelly Nacotee with Misprision of a Felony in violation of 18 U.S.C. § 4. Nacotee faces a maximum sentence of 3 years in prison, up to a $250,000 fine, up to 3 years on supervised release, and a $100 special assessment.
According to the indictment, on or about September 13, 2016, Waupoose and Frechette killed a man by distributing a chemical analogue of fentanyl to him. Nacotee deleted messages between Frechette and the deceased after learning of his overdose.
The case was investigated by the Menominee Tribal Police Department, Menominee County Sheriff’s Office, and the Federal Bureau of Investigation, with assistance from the U.S. Drug Enforcement Administration’s Diversion Control Division and the Wisconsin State Crime Laboratory. The case will be prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
For additional information contact: Public Information Officer Kenneth Gales at 414 297-1700
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Edmond Man Pleads Guilty to Embezzling over $750,000 and Tax FraudRead the Press Release
OKLAHOMA CITY – ODIS AUBREY KING, 74, of Edmond, has pleaded guilty to embezzling over $750,000 from his employer and filing a false federal income tax return, announced Robert J. Troester of the U.S. Attorney’s Office.
According to federal charges filed on February 15, 2019, King worked as an accountant from 2002 until August 2017 for a company in Oklahoma City that sold pipe handling tools for drilling rigs. He was responsible for preparing checks drawn on the company’s bank account and recording those payments in the company’s check register. From July 2009 to July 2017, King forged the owner’s signature on over 200 company checks without the company’s permission or knowledge. He made the checks payable to himself and disguised the payments in the check register as legitimate business expenses. In total, King deposited approximately $755,000 into his personal bank account using forged company checks. He also did not report the embezzled funds as income on his federal income tax returns.
On March 28, King pleaded guilty to a single count of making and possessing a forged check written in October 2015, as well as a single count of filing a materially false federal income tax return covering calendar year 2014.
Sentencing will take into account the full scope of King’s embezzlement and tax fraud. He faces a sentence of up to ten years in prison and a fine of up to $250,000 on the embezzlement count. He also faces a sentence of up to three years in prison and a fine of up to $100,000 for filing a false federal income tax return. Sentencing will take place in approximately 90 days.
These charges are the result of an investigation by the FBI and the Internal Revenue Service–Criminal Investigations. The case is being prosecuted by Assistant U.S. Attorney Jessica L. Perry.
Reference is made to court filings for further information.
East Bernstadt Woman Sentenced to 36 Months for Identity Theft and Bank FraudRead the Press Release
LONDON, Ky. – Sharon Hall, 68, of East Bernstadt, Kentucky was sentenced Wednesday, in United States District Court in London, on convictions for bank fraud and aggravated identity theft. United States District Judge Gregory Van Tatenhove sentenced Hall to 24 months imprisonment, on the aggravated identity theft conviction, which will run consecutively to 12 months, on the bank fraud conviction, for a total of 36 months in federal prison.
Hall was convicted by a jury, in January, 2018. The proof at trial established that, during a period of 18 months around 2007 and 2008, Hall applied for and received student loans from at least six different lenders, in the names of her children, niece, and nephew, without their knowledge. She forged the names of the students on loan applications and altered payroll documents to defraud the banks. She received over $93,000 on at least 11 different loans. She paid back approximately $23,000 on the loans, before the remaining amounts were written off by the lenders, resulting in bank losses of approximately $70,000. Hall was ordered to pay restitution to the banks and the students whose names she used.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, G. Michael Ishee, II, Assistant Special Agent in Charge of the U.S. Department of the Interior, Office of Inspector General (DOI OIG), and Edd Cole, Acting Special Agent in Charge of the U.S. Department of Education, Office of Inspector General, Midwest Regional Office (DOE OIG), jointly announced the sentence.
“I commend the efforts of DOI OIG and DOE OIG for jointly pursuing this investigation, which led to the defendant being held accountable for her fraudulent conduct,” said United States Attorney Duncan. “The defendant now faces the consequences of her criminal actions.”
“This verdict and sentencing are the direct result of two Federal investigative agencies working collaboratively to ensure the integrity of their designated Federal programs and personnel,” said Assistant Special Agent in Charge Ishee. “The DOI OIG is committed to working closely with our partner OIGs, including the U.S. Department of Education OIG, on behalf of the American taxpayers. This investigation and sentencing are significant in our continued efforts to combat fraud, waste and mismanagement within the DOI.”
“Accountability applies to everyone, and this is especially true for Federal employees, as we work on behalf of the American people,” said Acting Special Agent in Charge Cole. “That’s why I’m proud of the work of OIG special agents and our law enforcement colleagues in holding Ms. Hall accountable for her criminal actions.”
The investigation was conducted by the DOI OIG and the DOE OIG and Assistant United States Attorneys Ken Taylor and Erin Roth represented the United States.
Dorchester Man Charged with Distribution of HeroinRead the Press Release
BOSTON – A Dorchester man was charged on Wednesday, March 27, 2019, in federal court in Boston with distributing heroin.
John Doe, a/k/a “Manny,” whose true identity is unknown, was indicted by a federal grand jury for distribution of heroin. Doe was arrested on March 1, 2019, and charged by criminal complaint. He has been in custody since his arrest on March 1, 2019.
According to court documents, in September 2018, federal agents began investigating Doe for drug trafficking violations. On four separate occasions between Sept. 26, 2018, and Nov. 28, 2018, law enforcement conducted undercover controlled purchases of heroin from Doe.
The charge of distribution of heroin carries a sentence of no greater than 20 years in prison, at least three years of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement. Assistance was provided by the Massachusetts State Police and the Attleboro, Norton, and Mansfield Police Departments. Assistant U.S. Attorney Alathea E. Porter of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
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.
Credit Union Manager Who Allegedly Embezzled $40 Million from His Employer Faces Bank Fraud, Identity Theft ChargesRead the Press Release
LOS ANGELES – A long-time manager at CBS Employees Federal Credit Union is in federal custody on a criminal complaint alleging he embezzled $40 million from his employer over two decades and spent the money on gambling, expensive cars and watches, and travel by private jet.
Edward Martin Rostohar, 62, of Studio City, has been charged with two felony counts: bank fraud and aggravated identity theft. He was arrested on March 12 and has been ordered detained as both a flight risk and an economic danger to the community. Rostohar’s arraignment is scheduled for April 18.
The charges against Rostohar were made in conjunction with today’s announcement by the National Credit Union Administration (NCUA), a federal agency that regulates credit unions, that it has liquidated CBS Employees Federal Credit Union and discontinued its operations after determining CBS Employees was insolvent with no prospect of restoring viable operations on its own. University Credit Union, located in Westwood, immediately assumed CBS Employees’ assets, loans, and all member shares.
According to an affidavit filed with the criminal complaint, beginning before 2000 and continuing until this month, Rostohar used his position as a manager at the credit union, a federally insured financial institution, to make online payments from the credit union to himself or by forging the signature of another credit union employee on checks made payable to himself.
The alleged scheme was exposed beginning on March 6 when a credit union employee found a $35,000 check made payable to Rostohar, and the check did not include the reason for the high dollar amount, according to court documents. The employee conducted an audit of the credit union checks issued since January 2018 and discovered $3,775,000 in checks made payable to Rostohar and which contained the forged signature of another employee without the employee’s knowledge or consent. On March 12, the credit union informed Rostohar that he had been suspended from his job after an internal investigation uncovered “irregularities in the performance of your job duties,” according to court documents. Later that day, Rostohar’s wife called 911 and told the dispatcher that her husband had stolen money from work and was leaving the country, court papers state. Rostohar was taken into custody and admitted that he stole money from the credit union for 20 years, beginning by paying the monthly balances on his personal credit cards with funds from the credit union’s online accounts or by forging checks, and later by forging his coworker’s signature on credit union checks and depositing them into his personal accounts, court papers state. Rostohar allegedly estimated he stole $40 million from the credit union. An NCUA examination up to February 28 revealed a potential loss to the credit union of $40,541,130.
Prior to his 30 years of employment at the CBS Employees credit union, Rostohar was an examiner at NCUA, court documents state. Rostohar allegedly told law enforcement that this background gave him knowledge of what NCUA examiners look for when examining credit unions and allowed him to avoid detection, the affidavit states. Rostohar allegedly said he gambled away much of the money and spent the rest on traveling by private jet, buying expensive watches, and giving his wife a weekly allowance of $5,000. He also said he purchased two cars – a Porsche and a Tesla – with money he stole from the credit union, court papers state. Rostohar allegedly also admitted to starting a business in Reno, Nevada in December 2018, and he wrote tens of thousands of dollars’ worth of checks to himself to cover the business’s cost as well as to pay a $5,000 monthly mortgage on a home in Reno he recently purchased.
If convicted on both charges, Rostohar faces a statutory maximum sentence of 30 years in federal prison and a $1 million fine on the bank fraud count and a mandatory consecutive term of two years in federal prison on the aggravated identity theft count.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Los Angeles Police Department.
This case is being prosecuted by Assistant United States Attorney Andrew Brown of the Major Frauds Section.
Convicted Felon Sentenced to Prison for Possessing FirearmsRead the Press Release
ALEXANDRIA, Va. – A Fauquier County man was sentenced today to nearly three and a half years in prison for being a felon in possession of firearms.
According to court documents, Douglas Newton, 57, has several prior felony convictions, including convictions for unauthorized use of a vehicle and grand larceny, third degree homicide, and attempted unlawful wounding and use of a firearm during a felony. In October 2018, special agents with the ATF executed a search warrant at Newton’s residence and recovered three firearms and approximately 390 rounds of ammunition.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Patricia T. Giles prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-422.
Convicted Felon Sentenced to Prison for Possessing FirearmRead the Press Release
ALEXANDRIA, Va. – A Springfield man was sentenced today to nearly six years in prison for being a felon in possession of a firearm.
According to court documents, Sang June Han, 24, unlawfully possessed a loaded Glock pistol, on March 23, 2018, in Springfield. Han unlawfully possessed the firearm while shooting a music video, which was later posted to YouTube showing Han brandishing the pistol. Prior to the YouTube video being posted, Han posted photographs of himself on Instagram brandishing the firearm.
Han had previously been convicted of five felony offenses in Virginia and was on supervised probation at the time of this offense. Han’s 2013 felony conviction for attempted robbery was the result of an armed attempt to rob a drug dealer of drugs and money. According to the victim, Han repeatedly pistol-whipped the victim during the attempted robbery. Han’s 2015 felony conviction for possession of a controlled substance with intent to distribute was the result of a traffic stop during which law enforcement recovered 8.5 ounces of marijuana and a Smith & Wesson pistol from Han’s trunk. Han’s 2016 felony convictions for possession of cocaine and pentylone were the result of a police search of his hotel room during which police recovered 2 ounces of marijuana, 10 bundles of crack cocaine, and multiple bags of Xanax.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorney Nicholas U. Murphy II prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-384.
Colorado Springs Man Found Guilty of Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
DENVER – Following a one-week trial, a jury found Perry Wayne Suggs, Jr., age 32, of Colorado Springs, Colorado, guilty of being a felon in possession of a firearm and ammunition, announced U.S. Attorney Jason Dunn and ATF Denver Field Division Special Agent in Charge Debbie Livingston. Suggs appeared at the trial in custody, and was remanded after the jury relayed their verdict. The trial was before U.S. District Court Judge William J. Martinez.
Suggs was indicted by a federal grand jury in Denver on February 21, 2018. The federal grand jury then returned a superseding indictment on April 19, 2018. The trial started on March 25, 2019, and concluded today, March 28, 2019, with the guilty verdict. The defendant is scheduled to be sentenced by Judge Martinez on August 28, 2019. He faces not more than 10 years in federal prison, and up to a $250,000 fine.
According to court documents and evidence presented at trial, on January 3, 2018, Colorado Springs Police Officers were dispatched to a shots fired call where a man in a BMW fired at a pedestrian crossing the street. Officers interviewed a mother and daughter who had witnessed the shooting. They had the make and model of the car, as well as its license plate number. The pedestrian had nothing in his hands and was legally crossing an intersection when an individual in a black BMW pointed a firearm at the pedestrian’s legs and fired. The driver then fled. A witness took a picture of the car’s license plate and then pointed out the shell casing in the intersection, which was retrieved by the officers.
The victim called 911 and was interviewed by the police officers. Based on the victim’s information as well as that of the witnesses, officers learned the black BMW was registered to Perry Suggs, Jr., the defendant, who lived in Colorado Springs. It was determined that Suggs was a member of the Gangster Disciples street gang who had at least one felony conviction and was likely to possess firearms. It is against federal law for felons to possess firearms.
Officers executed a search warrant at Suggs’ residence as well as the BMW. There were two firearms in plain view inside a vehicle at his residence, including a black handgun and a black semi-automatic rifle. Ultimately officers found a Glock handgun and an AR-15 style rifle as well as ammunition. A test using the NIBIN database (National Integrated Ballistic Information Network) as well as a full forensic examination, confirmed that the Glock recovered by officers matched the shell casings found at the scene.
“The defendant was a danger to the Colorado Springs community,” said U.S. Attorney Jason Dunn. “Thanks to the hard work of law enforcement and prosecutors, the defendant will now have to answer for his crime,”.
“This case is a prime example of technology and skilled investigators coming together to find the person responsible for acts of violence,” said ATF Denver Special Agent in Charge Debbie Livingston. “I am proud of our partnerships that made this case possible.”
This matter was investigated by the Colorado Springs Police Department and the ATF with the assistance of the Colorado Springs Metro Crime Lab. The defendant was prosecuted by Assistant U.S. Attorneys Emily Treaster and Hetal J. Doshi.
This case is part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Carroll County Man Pleads Guilty to Filing a False Federal Tax ReturnRead the Press Release
Jackson, TN – Joshua "Josh" Lynn Hicks, 32 of Huntingdon, Tennessee appeared before Judge J. Daniel Breen and entered a guilty plea to filing false tax returns. U.S. Attorney D. Michael Dunavant announced the guilty plea today.
According to the indictment, in 2015, Hicks was the owner of J. Hicks Appliances in Huntingdon, Tennessee, and Appliances and More in Lexington, Tennessee. Responsible for the business record keeping, he willfully underreported the businesses’ gross receipts by $98,031 for the taxable year of 2015. Hicks also filed false U.S. Individual Income Tax Returns by underreporting gross receipts on his Schedule C, profit or loss from business in 2012, 2013, and 2014, which resulted in an underreporting of income in the total amount of $335,000.00, which had a corresponding negative impact on the ability of the U.S. Treasury to accurately and completely collect income taxes due from the defendant for that 4 year period.
On November 13, 2018, a federal grand jury in Jackson, Tennessee returned a four-count indictment against Hicks for filing False and Fraudulent statements on Income Tax Returns for the years of 2012-2015. On March 27, 2019, Hicks pleaded guilty to one count of the indictment for calendar year 2015.
U.S. Attorney D. Michael Dunavant said: "Protection of the United States Treasury is a core value and critical mission for this office and the Department of Justice. Income tax evasion and fraud strike at the very heart of our federal government’s financial ability to provide services and protection for our citizens, and will not be tolerated."
Hicks faces a statutory maximum sentence of three years in federal prison, a period of supervised release, and monetary penalties. As part of the plea agreement, Hicks will pay restitution in the amount of $95,210 to the United States. Sentencing is set for June 27, 2019, before United States District Court Judge J. Daniel Breen.
The Internal Revenue Service, Criminal Investigation Division, investigated this case.
Assistant U.S. Attorney Matt Wilson prosecuted this case on behalf of the government.
CareWell Urgent Care Center Agrees to Pay $2 Million to Resolve Allegations of False Billing of Government Health Care ProgramsRead the Press Release
BOSTON – The United States Attorney’s Office announced today that CareWell Urgent Care Centers of MA, P.C., CareWell Urgent Care of Rhode Island, P.C., and Urgent Care Centers of New England Inc. (CareWell), the owners and operators of urgent care centers located throughout Massachusetts and Rhode Island, have agreed to pay $2 million to resolve allegations that they violated the False Claims Act by submitting inflated and upcoded claims to Medicare, Massachusetts Medicaid (MassHealth), the Massachusetts Group Insurance Commission (GIC), and Rhode Island Medicaid.
Urgent care centers receive payment for Evaluation and Management (E/M) services by submitting Current Procedural Terminology (CPT) codes which reflect the level of E/M service performed. The level of E/M service is determined, in part, by the number of 14 possible body systems (e.g. cardiovascular, gastrointestinal, neurological, etc.) a physician, nurse practitioner, or other medical professional must review and examine to diagnose and treat a patient’s specific medical complaints. Generally, the more complex a patient’s medical complaints are, the more body systems may need to be reviewed, reflecting a higher level of E/M service performed. Urgent care centers are required to submit CPT codes for E/M services that are reasonable and medically necessary for an urgent care center to perform in light of the history of, examination into, and medical decision-making required for a patient’s medical complaints. In addition, urgent care centers must submit claims that properly identify whether a nurse practitioner, without the direct supervision of a physician, performed the E/M service in order to accurately determine the amount of payment they should receive.
The United States, the Commonwealth of Massachusetts, and the state of Rhode Island allege that, between March 1, 2013, and August 31, 2018, CareWell submitted false claims to Medicare, MassHealth, GIC, and Rhode Island Medicaid by falsely inflating the level of E/M services performed and by failing to properly identify the providers of E/M services. The governments contend that CareWell accomplished its fraud in several ways, including mandating that medical personnel examine and document at least 13 body systems during medical history inquiries, and at least nine body systems during physical examinations, even if patients’ specific medical complaints or symptoms did not justify such a comprehensive inquiry or examination.
CareWell instructed medical personnel to use encounter plan templates, loaded onto electronic medical records software, containing “yes or no” questions that CareWell directed its personnel to ask patients regarding specific body systems, even when such inquiries were not medically necessary. Even if medical personnel failed to ask a patient every question in an encounter plan template, the template contained a default “no” response to each inquiry. CareWell used the default “no” responses to assert that the associated body systems had been examined and billed accordingly, even when no such examination had occurred. The governments also allege that CareWell’s management told its medical personnel that the mandate of examining body systems unrelated to a patient’s specific medical complaints or symptoms was a requirement imposed by a malpractice insurance carrier, even though CareWell knew that no malpractice insurance carrier had ever imposed such a requirement on CareWell. In addition, the governments contend that CareWell failed to reduce the amounts of its claims to Medicare, MassHealth, GIC, and Rhode Island Medicaid for services performed by unsupervised nurse practitioners.
“The CareWell urgent care centers engaged in a calculated scheme to reap unjustified economic benefit for their own gain from precious government healthcare resources,” said United States Attorney Andrew E. Lelling. “Today’s result reinforces this office’s commitment to take action against providers that have defrauded government healthcare programs.”
“Inflating bills and submitting claims to government health insurance programs for needless services drains resources from legitimate patient care,” said Phillip Coyne, Special Agent in Charge, Office of Inspector General of the U.S. Department of Health and Human Services. “Those seeking to enrich themselves at the expense of these taxpayer-funded programs must be held accountable.”
This civil settlement resolves allegations brought forth in a whistleblower lawsuit filed by a former employee of CareWell, Aileen Cartier, under the qui tam provisions of the False Claims Act, which permits private individuals, known as relators, to sue on behalf of the government for false claims and to share in any recovery. In connection with today’s announced settlement, Ms. Cartier will receive 17 percent of the recovery.
U.S. Attorney Lelling and HHS-OIG SAC Coyne made the announcement today. This case was handled by Assistant U.S. Attorney Steven Sharobem of Lelling’s Civil Division, Assistant Attorneys General Cassandra Arriaza, Jennifer Goldstein, and Ali Russo from the Massachusetts’ Attorney General’s Office and Assistant Attorney General James Dube of the Rhode Island’s Attorney General’s Office.
California Man Sentenced in Deadly Wichita Swatting CaseRead the Press Release
WICHITA, KAN. – A California man was sentenced Friday to 20 years in federal prison for making a hoax call to Wichita police that resulted in an innocent man who had no connection to the defendant or his co-conspirators being shot and killed by police, U.S. Attorney Stephen McAllister said.
Tyler Barriss, 26, Los Angeles, Calif., pleaded guilty to causing a deadly swatting incident in Wichita on Dec. 28, 2017, as well as dozens of similar crimes in which no one was injured. In those cases, Barriss pleaded guilty to charges filed in federal courts in California and the District of Columbia.
In the Wichita case, Barriss entered guilty pleas to one count of making a false report resulting in a death, one count of cyberstalking and one count of conspiracy. Barriss agreed to accept a sentence of 20-25 years as part of the plea. His counsel argued for the minimum 20, the government for the maximum 25, and the Court imposed a 20-year sentence, believed to be the longest sentence imposed for swatting or hoaxes.
“Swatting is no prank,” McAllister said. “Sending police and emergency responders rushing to anyone’s home based on utterly false information as some kind of joke shows an incredible disregard for the safety of other people.”
“I hope that this prosecution and lengthy sentence sends a strong message that will put an end to the juvenile and reckless practice of ‘swatting’ within the gaming community, as well as in any other context,” McAllister continued. “Swatting is just a terrible idea. I also hope that today’s result helps bring some peace to the Finch family and some closure to the Wichita community,” McAllister said.
In the Kansas case, Barriss admitted making hoax calls that resulted in Wichita police surrounding a house at 1033 W. McCormick. When officers arrived, they believed a man was inside who had killed his own father and was holding family members hostage. The man who came outside to face police, however, had done nothing wrong and did not know about the swatting call. As he stepped onto the porch, police told him to put up his hands. When he unexpectedly dropped his hands, he was shot and killed by a police officer.
DISTRICT OF COLUMBIA
In a case from the District of Columbia, Barriss pleaded guilty to making hoax bomb threats in phone calls to the headquarters of the FBI and the Federal Communications Commission in Washington, D.C.
CENTRAL DISTRICT OF CALIFORNIA
In a case from the Central District of California, Barriss pleaded guilty to 46 counts, including making calls with false reports that bombs were planted at high schools, universities, shopping malls and TV stations. He made the calls from Los Angeles to emergency numbers in Ohio, New Hampshire, Nevada, Massachusetts, Illinois, Utah, Virginia, Texas, Arizona, Missouri, Maine, Pennsylvania, New Mexico, New York, Michigan, Florida and Canada.
WICHITA
Two co-defendants in the Wichita case, Casey Viner, 19, North College Hill, Ohio, and Shane Gaskill, 20, Wichita, Kan., are awaiting trial.
In Barriss’ plea, he admitted he got involved with Viner and Gaskill after the two had a falling out while playing Call of Duty online. As a result, Viner, who was in Ohio, asked Barriss, who was in California, to swat Gaskill, who was in Wichita. Gaskill noticed Barriss was stalking him online. In messages over the internet, Gaskill dared Barriss to carry out the swat. Gaskill fooled Barriss, however, by claiming to live at 1033 W. McCormick. In fact, Gaskill no longer lived there.
McAllister and Assistant U.S. Attorney Debra Barnett prosecuted the Kansas case. McAllister commended the FBI, the Sedgwick County Sheriff’s Office and the Wichita Police Department for their work on the Kansas case. In the Middle District of California, Assistant U.S. Attorney George Emel Pence, IV, prosecuted. In the District of Columbia, Assistant U.S. Attorney Luke Matthew Jones prosecuted.
Brothers Who Allegedly Ran Unlicensed Financial Advisory Business Out of Their Parents’ Encino Home Face Wire Fraud ChargesRead the Press Release
LOS ANGELES – Two brothers who allegedly operated an unlicensed investment advisory business out of their parents’ Encino home were arrested today on federal wire fraud charges for an alleged scheme in which they used false account statements to hide multi-million dollar losses of their investors’ funds.
Motty Mizrahi, 46, of Encino, and Sassi Mizrahi, 53, of Sherman Oaks, were arrested this morning and made their initial appearances today in United States District Court.
According to the criminal complaint filed in this case, Motty Mizrahi falsely portrayed himself as a licensed broker, certified public accountant, and experienced trader who employed sophisticated financial option- and insurance-hedging strategies through the brothers’ business, MBIG Company. The Mizrahi brothers operated MBIG out of their parents’ home in Encino, court documents state. From November 2012 until March 2019, Motty Mizrahi raised millions of dollars from investors, promised them “guaranteed” returns between 2 percent and 3 percent per month, and assured them that their funds could be withdrawn after an initial holding period on an on-demand basis. Motty Mizrahi allegedly submitted phony monthly account statements that purported to show consistent monthly gains and also falsely showed that MBIG’s account balances were between $6 million and $9 million. However, Motty Mizrahi instead lost the investors’ money – losses he and Sassi Mizrahi denied when confronted by victims who unsuccessfully demanded their money back, the affidavit states.
The complaint also alleges that Motty Mizrahi distributed to investors a financial prospectus that contained false and fraudulent representations concerning MBIG’s past investment performance. The Mizrahi brothers also allegedly misled investors about their company’s E*Trade brokerage account, which was supposed to be used for investors’ money but in reality did not exist. Instead, Motty Mizrahi routed all victim-investor funds into his own personal trading account, the affidavit states. After E*Trade closed Motty Mizrahi’s personal accounts, Motty and Sassi Mizrahi allegedly continued to mislead investors by assuring them that MBIG had an E*Trade account containing adequate balances to cover the victim-investors’ initial investments.
If convicted on the wire fraud charges, the defendants would each face a statutory maximum sentence of 20 years in federal prison.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
In a related action, the U.S. Securities and Exchange Commission filed a civil fraud action against Motty Mizrahi and MBIG Company and obtained emergency relief including a temporary restraining order and an asset freeze order against the defendants.
The criminal case is being investigated by the Federal Bureau of Investigation.
This matter is being prosecuted by Assistant United States Attorney Adam P. Schleifer of the Major Frauds Section.
Brevard Man Sentenced to 80 Years for Committing Sex Crimes Against ChildrenRead the Press Release
Orlando, Florida – United States District Judge Carlos E. Mendoza has sentenced Keneon Fitzroy Isaac (45, Cocoa) to 80 years in federal prison for production and possession of child pornography. The court also ordered Isaac to forfeit the smart phones that he used to commit the offenses.
Isaac was found guilty on January 4, 2019.
According to court documents, Isaac sexually abused a homeless, 13-year-old child on at least two occasions, and recorded the abuse using his smart phone. Isaac met the victim at a gas station, where she was panhandling with her mother. During the next two months, Isaac gained the family’s trust by providing basic necessities for the family including food, clothing, and shelter. Isaac also obtained 213 images of child pornography from the internet, some of which depicted the sexual abuse and exploitation of infants, toddlers and prepubescent children.
“This criminal abused the trust of a family under the worst of circumstances,” said HSI Tampa Special Agent in Charge James C. Spero. “While this predator has essentially received a life sentence, we hope it can provide some closure for the young victim during the healing process.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Brevard County Sheriff’s Office, and the Cocoa Beach Police Department. It was prosecuted by Assistant United States Attorney Karen L. Gable.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Beaver County Man Pleads Guilty in Fentanyl Trafficking ConspiracyRead the Press Release
PITTSBURGH - A resident of Monaca, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Nikia Perkins, 44, pleaded guilty on Tuesday to one count before Chief United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that from in and around September 2016, and continuing thereafter to in and around July 2017, Perkins conspired with others to distribute and possess with the intent to distribute at least 1.2 kilograms, but less than 4 kilograms of fentanyl, a Schedule II controlled substance.
Judge Hornak scheduled sentencing for July 23, 2019 at 9:30 a.m. The law provides for a total sentence of not less than 10 years to a maximum of life in prison, a fine not to exceed $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert C. Schupansky is prosecuting this case on behalf of the government.
This investigation was part of a long-term investigation by the FBI Greater Pittsburgh Safe Streets Task Force (GPSSTF), which targeted a large scale Drug Trafficking Organization operating in Butler, Beaver and Allegheny Counties. The GPSSTF is comprised of dedicated law enforcement professionals from the Wilkinsburg Police Department, Pennsylvania Attorney General’s Bureau of Narcotics Investigations, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pittsburgh Bureau of Police and the FBI. The GPSSTF and the United States Attorney’s Office, Western District of Pennsylvania, would like to recognize the significant contributions made to this investigation by the Pennsylvania State Police, United Sates Postal Inspection Service, Cranberry Township Police Department and the New Brighton Police Department. The Department of Homeland Security Investigators also assisted in the investigation that led to the prosecution of Nikia Perkins.
This 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.
Anchorage Man Sentenced for Possession of Child PornographyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Kenny Appuallo Gregory, 29, of Anchorage, was sentenced today by U.S. District Judge Sharon L. Gleason, to serve five years in prison, followed by a 20-year term of supervised release, for possession of child pornography.
According to court documents, between April 2, 2016, and April 8, 2016, Gregory exchanged emails with an undercover law enforcement agent. In these emails, Gregory offered to share with the undercover agent a link to images and videos of child pornography. In his email, he attached a link to the Internet photo-sharing site that contained child pornography, and Gregory wrote, “And I hope you give me something nice, in return I’ll let you see my stuff. Here you go and have fun.” Gregory also sent via email a video showing the sexual molestation of a girl approximately 5 to 9 years old.
Law enforcement obtained a search warrant for Gregory’s email address. The results of the warrant contained the emails described above. Later, HSI agents contacted Gregory at his Anchorage residence and he agreed to speak with the special agents after being advised of his rights. During his interview, Gregory admitted that he was the user of the email address with whom the undercover agent was communicating. When shown the email communications, Gregory replied, “looks like you guys have it all down.” A search of Gregory’s phone revealed approximately 300 images and videos of child pornography that Gregory had downloaded through the internet.
At sentencing, Judge Gleason noted the harm that Gregory’s conduct had on the children shown in the images he possessed. Judge Gleason described the victim impact statements submitted in the case, and the victims’ inability to live normal lives knowing that individuals like Gregory are downloading, viewing, and trading videos that show the victims being sexually abused. Judge Gleason stated, “those letters always bring home the seriousness of this offense.” Judge Gleason also noted that the sentence was intended to send a message to others who might trade child pornography.
Homeland Security Investigations (HSI) conducted the investigation leading to the successful prosecution of this case. Assistant U.S. Attorney Kyle Reardon prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices nationwide and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Alabama Husband and Wife Business Owners Indicted for Payroll Tax FraudRead the Press Release
A federal grand jury sitting in the Northern District of Alabama returned an indictment yesterday charging a Crane Hill, Alabama, husband and wife with five counts of failing to pay over payroll taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Jay E. Town for the Northern District of Alabama.
According to the indictment, Walter Michael Williams and Amy Butler Williams operated Dixie Steel Erectors (DSE), a commercial construction business in Hanceville, Alabama. Walter Michael Williams, president and owner of DSE, and Amy Williams, bookkeeper and office manager of DSE, were allegedly responsible for withholding and paying over DSE’s payroll taxes. The indictment charges that during 2012 and 2013, DSE accrued payroll tax liabilities and that the Williams withheld those taxes from the pay of the business’s employees, but willfully failed to pay over the withheld amounts to the Internal Revenue Service (IRS). The indictment further alleges that, while failing to pay over payroll taxes to the IRS, Walter Michael and Amy Williams used DSE’s funds to pay for numerous personal expenses, including mortgage payments on a lake house and condominium and alimony payments.
If convicted, both Walter Michael and Amy Williams face a maximum of five years in prison for each count of failure to pay over the employment taxes. In addition, they face a period of supervised release, restitution, and monetary penalties.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Town commended special agents of IRS Criminal-Investigation, who conducted the investigation, and Tax Division Trial Attorney Allison Garnett and Assistant United States Attorney Melissa Atwood, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Activity in the United States Attorney's OfficeRead the Press Release
Federal District Court Judge Alan B. Johnson sentenced DEVON MATTHEW GERLOSKY, 19, of Sundance, Wyoming on March 26, 2019 for possession of stolen firearms. Gerlosky was arrested in Cheyenne, Wyoming. He received seventy-eight months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay restitution in the amount of $27,115.57. The Gillette Police Department, Campbell County Attorney’s Office, Wyoming Division of Criminal Investigation, and US Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced JAMES CHRISTOPHER WYNIA, 25, of Greybull, Wyoming on March 21, 2019 for transportation of child pornography. Wynia was arrested in Greybull, Wyoming. He received sixty months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $100.00 fine. The Wyoming Division of Criminal Investigation and the US Department of Homeland Security Investigations investigated this case.
Acacia Mental Health Clinic, LLC and Its Owner, Abraham Freund, Agree to Pay over $4 million in Cash and Other Compensation to Settle the Government’s False Claims Act LawsuitRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced today that Acacia Mental Health Clinic, LLC (“Acacia”) and its owner, Abraham Freund, have agreed to pay approximately $4.1 million in cash and other compensation to the United States and the State of Wisconsin. The payments will be made to settle the government’s lawsuit alleging that Acacia and Freund violated the False Claims Act by submitting thousands of false claims to Medicaid for urine drug tests and telemedicine services. Acacia and Abraham Freund also agreed to 20-year suspensions from participation in federal healthcare programs such as Medicare and Medicaid; Abraham Freund’s son, Isaac Freund, agreed to a 5-year suspension.
Acacia operated a mental health and drug dependency clinic in Milwaukee, Wisconsin, until it ceased operations following the government’s filing of its lawsuit. Abraham Freund was the owner and chief executive of Acacia. Isaac Freund was involved in the operations of Acacia. The government alleged that Acacia, at Abraham Freund’s direction, submitted thousands of false claims to Medicaid in three fraudulent schemes:
- From January 1, 2011, through October 31, 2012, Acacia and Abraham Freund lied to Medicaid about the type of urine drug screens performed at Acacia in order to obtain additional Medicaid reimbursement to which they were not entitled. Acacia, at Abraham Freund’s direction, purchased inexpensive, simple “cup” tests for approximately $5 per cup, but then billed Medicaid as if Acacia had performed sophisticated tests that required laboratory equipment that Acacia did not possess. Acacia thus received over $200 per test instead of the $20 to which it was actually entitled.
- From November 1, 2012, through December 31, 2014, Acacia, at Abraham Freund’s direction and with Isaac’s involvement, performed medically unnecessary and duplicative urine drug tests for its Medicaid patients to obtain increased reimbursement. During this period, Abraham Freund required nearly every Medicaid patient to receive a cup test as well additional tests performed on multiple laboratory analyzers. Acacia and Abraham Freund knew that these duplicative tests served no medical purpose and billed Medicaid for these tests solely to obtain additional Medicaid money.
- From June 1, 2011, through December 31, 2014, Acacia, at Freund’s direction, submitted claims to Medicaid for telemedicine services rendered to Acacia’s patients by psychiatrists located outside the United States, in violation of Medicaid regulations.
“As a Medicaid provider purporting to treat patients suffering from mental health and drug dependency issues, Acacia saw some of the neediest patients in our state. Rather than treat them in good faith, Acacia and Abraham Freund exploited these patients as a means to bill Medicaid for unnecessary services to increase revenue,” stated United States Attorney Krueger. “This settlement will help make Medicaid whole, while also ensuring that Acacia, Abraham Freund, and Isaac Freund cannot submit more false claims to any federal healthcare program in the future.”
“Medicaid providers cannot misrepresent the services they provide in order to increase their billings,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General – Chicago Region (“HHS OIG”). “This settlement includes voluntary exclusions of Acacia, Abraham Freund, and Isaac Freund to ensure that they do not bill federal healthcare programs for misrepresented and unnecessary services in the future. The OIG will continue to work with our federal, state and local partners to protect the health and safety of Medicaid patients and vital taxpayer dollars.”
“The Federal Bureau of Investigation prioritizes the protection of taxpayers and will continue to hold accountable healthcare providers who misuse the Medicaid program,” said FBI Acting Special Agent-in-Charge Michelle Sutphin. “This multi-million dollar settlement and the exclusions of Acacia, Abraham Freund, and Isaac Freund from future participation in Medicaid show that the FBI will work to remedy and prevent Medicaid fraud.”
The government’s lawsuit followed a whistleblower lawsuit filed by Rose Presser under the qui tam provisions of the False Claims Act. Consequently, Ms. Presser will recover a share of the settlement amount.
Assistant United States Attorney Michael Carter represented the government in this matter. The FBI, HHS OIG, and the Wisconsin Department of Justice Medicaid Fraud Control & Elder Abuse Unit assisted in the investigation. The settlement agreement states allegations only; the defendants do not admit liability for the allegations.
# # # #
- From January 1, 2011, through October 31, 2012, Acacia and Abraham Freund lied to Medicaid about the type of urine drug screens performed at Acacia in order to obtain additional Medicaid reimbursement to which they were not entitled. Acacia, at Abraham Freund’s direction, purchased inexpensive, simple “cup” tests for approximately $5 per cup, but then billed Medicaid as if Acacia had performed sophisticated tests that required laboratory equipment that Acacia did not possess. Acacia thus received over $200 per test instead of the $20 to which it was actually entitled.
19 Indicted for Methamphetamine Trafficking and Firearms OffensesRead the Press Release
LONDON, Ky. – A federal grand jury has indicted 19 individuals from Laurel, Knox, Whitley, and Jefferson Counties, on drug trafficking and firearm offenses, in indictments that were unsealed today. The following individuals were named in the indictments:
• Jonathan Harper, 27, Louisville, Kentucky;
• Derwin Julien, 25. Louisville;
• Daniel Nantz, 29, Woodbine, Kentucky;
• Lawrence Collinsworth, 36, Gray, Kentucky;
• Cortez Evans, 27, Louisville;
• Tasha Wernicke, 36, Corbin, Kentucky;
• Jordan Britt, 29, Louisville;
• Scott Hensley, 37, Corbin;
• Amy Mosley, 41, Bernstadt, Kentucky;
• Lindsey Rose, 30, Williamsburg, Kentucky;
• Darryl Moore, 46, Corbin;
• Thorold Johnson, 27, Corbin;
• Bobby Hamilton, 38, Pineville, Kentucky;
• Rickie Eubanks, 41, Corbin;
• Charles Warfield, 50, Artemus, Kentucky;
• Eddie Hoskins, 39, Corbin;
• David Lowe, 37, Gray;
• Justin Collins, 30, Corbin; and
• Ralph Jones, 56, Barbourville, Kentucky.
The indictments stem from a nine-month investigation by the ATF, into methamphetamine and firearms trafficking. According to the indictments, the defendants engaged in a conspiracy to distribute methamphetamine in and around Laurel, Knox, and Whitley Counties. The indictments further allege that defendants trafficked firearms, used firearms during their drug trafficking transactions, and illegally possessed firearms.
The charged individuals are each awaiting their initial appearance in federal court.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Stuart Lowrey, Special Agent in Charge ATF, jointly made the announcement.
The investigation was conducted by the ATF, with substantial assistance from the Corbin Police Department, Knox County Sheriff’s Department, and Kentucky State Police. The United States is represented by Assistant United States Attorney Jenna E. Reed.
An indictment by a grand jury is an accusation only, and individuals charged in an indictment are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
28 March 2019
Vicksburg Felon Pleads Guilty to International Gun Trafficking ConspiracyRead the Press Release
Jackson, Miss. – Maurice Taylor, 33, of Vicksburg, Mississippi, pled guilty today, before Senior U.S. District Court Judge Tom S. Lee, to conspiracy to violate the Arms Export Control Act and to being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst, Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Special Agent in Charge Jere T. Miles with Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans.
Maurice Taylor carried out a scheme in which he shipped stolen firearms from Mississippi to a co-conspirator in London, England. He prepared two separate packages containing stolen firearms concealed within children’s toys, and mailed the packages to London, in violation of the Arms Export Control Act. DNA evidence confirmed that Taylor, who is a convicted felon, was one of the people who handled the firearms. The firearms had been stolen days earlier during a burglary of a pawn shop in Natchez, Mississippi. Taylor texted with his co-conspirator messages and photographs of the guns he would mail, and received back from London confirmation numbers for wired payments for the guns, through a mobile phone application. After the London Metropolitan Police arrested Taylor’s partner, the LMP seized his phone and several firearms from his car. Evidence of the communications and the electronic payments were retrieved from the co-conspirator’s phone.
Taylor also pled guilty being a convicted felon in possession of firearms. He has prior felony convictions for burglary and grand larceny in Sharkey County, Mississippi. Taylor will be sentenced on July 11, 2019, by Judge Lee, and faces a maximum penalty of five years in prison as to the Conspiracy charge and ten years in prison as to the charge of being a felon in possession of a firearm. Taylor stands to receive up to a $250,000.00 fine for each charge.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, and the London Metropolitan Police Service. It is being prosecuted by Assistant United States Attorneys Theodore M. Cooperstein and Charles W. Kirkham.
United States Files Lawsuit Against California State Water Resources Control Board for Failure to Comply with California Environmental Quality ActRead the Press Release
The Department of Justice and the U.S. Department of the Interior (DOI) today filed civil actions, in both federal and state court, against the California State Water Resources Control Board for failing to comply with the California Environmental Quality Act (CEQA).
On Dec. 12, 2018, the California State Water Resources Control Board (the Board) approved and adopted amendments to the Water Quality Control Plan for the San Francisco Bay/Sacramento–San Joaquin Delta Estuary (amended plan) and the related Substitute Environmental Document (SED). According to the complaint, the Amended Plan fails to comply with CEQA and, once implemented, will impair DOI’s ability to operate the New Melones Dam consistent with Congressional directives for the project.
“The environmental analysis by the California State Water Resources Control Board hid the true impacts of their plan and could put substantial operational constraints on the Department of the Interior’s ability to effectively operate the New Melones Dam, which plays a critical role in flood control, irrigation, and power generation in the Sacramento region,” said Assistant Attorney General Jeffrey Bossert Clark for the Department of Justice’s Environment and Natural Resources Division. “The Department of Justice will continue to advocate on behalf of our federal partners, especially when it comes to the proper application of federal and state environmental laws.”
“As stated in our letter to the Board on July 27, 2018, today’s lawsuit affirms the Bureau of Reclamation’s continued opposition to the State Water Board plan. The plan poses an unacceptable risk to Reclamation’s water storage and power generation capabilities at the New Melones Project in California and to local recreational opportunities,” said Bureau of Reclamation Commissioner Brenda Burman. “We pledge our commitment to environmentally and economically sound water management for California’s farms, families, business, and natural resources, and the American public as a whole.”
CEQA is a California statute which requires state and local agencies to identify the significant environmental impacts of their actions and to avoid or mitigate those impacts, if feasible. The lawsuits filed today allege that in approving the amended plan and final SED, the Board failed to comply with the requirements of CEQA in a number of ways:
- The Board failed to provide an accurate, stable and finite project description, because the Board analyzed a project materially different from the project described in the project description;
- The Board improperly masked potential environmental impacts of the amended plan by including carryover storage targets and other reservoir controls – mitigation measures – in its impacts analysis and by not analyzing the impacts of the amended plan on the environment without reservoir controls; and
- The Board failed to adequately analyze the impacts of the amended plan, including with respect to water temperature and related water quality conditions, and water supply.
As alleged in the lawsuits, the United States will be directly and substantially impacted by the Board’s actions, which impacts include, but are not limited to, operational constraints on the New Melones Project, loss of available surface water supplies for New Melones Project purposes, including Central Valley Project (CVP) water service contracts, and involuntary dedication of federal reservoir space for Board purposes.
The New Melones Dam is a federally owned Reclamation facility and a component of the federal CVP. The Dam stores water under permits issued by the State of California, and delivers water from storage to irrigation and water districts under contracts entered into under federal reclamation law. The lawsuits further allege that the new flow objectives will significantly reduce the amount of water available in New Melones reservoir for meeting congressionally authorized purposes of the New Melones Project, including irrigation, municipal and industrial purposes, power generation, and recreational opportunities at New Melones. The reduced water available for New Melones Project purposes would also impair Reclamation’s delivery of water under contracts it presently holds with irrigation and water districts.
The United States is represented in this action by Assistant Attorney General Clark and United States Attorney McGregor W. Scott; with lead counsel Stephen M. Macfarlane, Romney Philpott, Erika Norman of the Natural Resources Section; and Kelli L. Taylor of the U.S. Attorney’s Office for the Eastern District of California.
U.S. Postal Service Employee Charged with Stealing a Gift CardRead the Press Release
PITTSBURGH - A resident of Washington, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of theft of mail by a postal employee, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on March 26, named Robert Thurman, 32, as the sole defendant.
According to the Indictment, on or about August 2, 2018, Thurman was an employee of the United States Postal Service and stole a gift card that was intended to be conveyed by mail.
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. Bond of $5,000 unsecured has been requested.
Assistant United States Attorney Brian M. Czarnecki is prosecuting this case on behalf of the government.
The U.S. Postal Service-Office of Inspector General (USPS-OIG) 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.
U.S. Attorney’s Office for the Eastern District of Washington Collects $8,186,767 in Civil and Criminal Actions for Victims of Crime and U.S. Taxpayers in Fiscal Year 2018Read the Press Release
Spokane, Washington – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced today that the Eastern District of Washington collected $8,186,767 in criminal and civil actions in Fiscal Year 2018. Of this amount, $1,750,262 was collected for victim restitution in criminal actions and $6,436,504 was collected in civil actions.
Additionally, the U.S. Attorney’s Office for the Eastern District of Washington worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $2,489,999 in civil cases pursued jointly by these offices.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending September 30, 2018. The $14,839,821,650 in collections in FY 2018 represents nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices across the nation.
U.S. Attorney Harrington stated, “Today’s announcement is a testament to the diligent work of the United States Attorney’s Office for the Eastern District of Washington. It also sends a strong message that the United States Attorney’s Office will aggressively undertake efforts to ensure that victims are wholly restored, restitution and fines are paid in full, and civil financial obligations are satisfied.”
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” said Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
Examples of criminal and civil collections by the Eastern District of Washington in fiscal year 2018 include:
•Full recovery of restitution to victims in multiple Project Safe Childhood cases, such as United States v. Craig Morgenstern and United States v. Jeffrey Wint;
•Writ of execution sales of three properties resulting in nearly $1,000,000 in restitution and fine recoveries, plus additional civil collection of approximately $340,000 to the IRS and nearly $100,000 to local tax authorities in the matter United States v. J. Scott Vrieling;
•$3.2 million paid by Washington Closure Hanford, LLC in resolution of False Claims Act litigation in connection with small business subcontracts in connection with the Department of Energy’s Hanford nuclear site; and
•$2,489,999 paid by the State of Alaska in resolution of False Claims Act litigation involving States and their private consultants employing improper quality control practices with respect to their SNAP (food stamp) programs.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
U.S. Attorney's Office Hosts Statewide Project Safe Neighborhoods Gang and Violent Crime Prevention SummitRead the Press Release
LAS VEGAS, Nev. – As part of the U.S. Attorney’s Office Project Safe Neighborhoods initiative, United States Attorney Nicholas A. Trutanich hosted a statewide gang and violent crime prevention summit in Las Vegas today for local, state, tribal, and federal law enforcement, prosecutors, victims services, and community partners to discuss gang and youth violence prevention.
“Project Safe Neighborhoods is one of the most effective crime prevention tools in the Department of Justice’s toolshed to reduce violent crime,” said U.S. Attorney Trutanich for the District of Nevada. “The U.S. Attorney’s Office and our partners are committed to the same critical mission - securing the right of all Nevadans to live free from violent crime.”
More than 150 law enforcement officers from several different agencies throughout the state, community leaders, and stakeholders attended the daylong summit. Presenters and panelists covered topics including: developing positive community relationships in neighborhoods, proven practices for gang prevention and intervention, utilizing social media to identify gang activity and recruitment, and discussions of potential approaches and solutions to violent crime. Attendees also heard from community and faith based leaders who discussed the need for community involvement in preventing and stopping violent and gun crimes.
As a result of the Project Safe Neighborhoods initiative, violent crime in Henderson went down 12.5%; Las Vegas went down 27%; and Reno went down 4%, according to the 2017 FBI’s Uniform Crime Report. The U.S. Attorney’s Office, with the assistance of local, state, tribal, and federal law enforcement partners, has prosecuted 525 firearms-related cases since Fiscal Year 2016.
Fiscal Year
Firearms-Related Cases
Number of Defendants
October 1, 2018 to Present
160
176
October 1, 2017 to September 30, 2018
137
148
October 1, 2016 to September 30, 2017
140
149
October 1, 2015 to September 30, 2016
88
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Project Safe Neighborhoods (PSN) is a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
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Two SoCal Men Named in 19-Count Indictment Alleging Chinese Money Funded Inland Empire Marijuana Grow HousesRead the Press Release
LOS ANGELES – A federal grand jury today returned a 19-count felony indictment charging two men with participating in a scheme where nine residential homes in San Bernardino County were purchased, mostly with money wired from China, and then the homes were converted into illegal marijuana grow houses.
Lin Li, a.k.a. Aaron Li, 37, of Chino, the U.S.-based coordinator of the alleged scheme, and Jimmy Yu, 44, of Pasadena, an alleged grow house caretaker, have been charged with conspiracy to manufacture, distribute, and possess with intent to distribute marijuana, and to maintain a drug-involved premises. Li and Yu are scheduled to be arraigned on the charges on April 4 in United States District Court.
According to the indictment, unindicted co-conspirators wired millions of dollars from China to bank accounts controlled by Li, a real estate agent. Li allegedly then used straw buyers, shell companies, straw tenants, fake utility subscribers, and phony leases to disguise the properties’ illegal purpose of housing commercial marijuana grows.
For example, in relation to one of the homes, an affidavit filed with a criminal complaint in the case describes how a straw buyer purchased a Chino Hills residence for $782,000 in 2015. The straw buyer was named as chief executive officer of a Li-established limited liability company, and that LLC received a $1 million wire transfer from a Hong Kong-based investment group. The vast majority of the purchase price of the house was then wired from the LLC’s bank account, the affidavit states. Li allegedly received a commission check as the realtor for the sale and also served as the home’s property manager. In early 2018, a neighbor complained to law enforcement about the “overwhelming” smell of marijuana coming from the Chino Hills home and how no one seemed to live there, court papers state.
Li also has been charged with nine counts of knowingly and intentionally possessing with intent to distribute marijuana plants – 4,342 marijuana plants in total – and nine counts of knowingly maintaining a place for the manufacturing and distribution of marijuana. Yu faces five counts of possession with intent to distribute marijuana plants and five counts of maintaining a place for the manufacturing and distribution of marijuana. Ben Chen, 42, of Alhambra, who also allegedly took care of the marijuana grows, is being charged separately. The indictment also seeks the forfeiture of eight properties – five in Chino, two in Chino Hills, and one in Ontario – that allegedly were used in the marijuana grow house scheme.
If convicted, each defendant faces a statutory maximum sentence of life in federal prison and a mandatory minimum sentence of 10 years in prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter is the result of a 14-month investigation initiated by the San Bernardino County Sheriff’s Department which later was joined by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
This case is being prosecuted by Assistant United States Attorneys Carley Palmer of the Organized Crime Drug Enforcement Task Force Section and Jonathan Galatzan of the Asset Forfeiture Section.
Two Men Plead Guilty to Immigration CrimesRead the Press Release
BECKLEY, W.Va. – United States Attorney Mike Stuart announced today that two men pled guilty to immigration crimes before United States District Judge Irene Berger in Beckley. Both men entered guilty pleas to the felony offense of Reentry of a Removed Alien and are scheduled to be sentenced on July 10, 2019.
“The crisis on the border is exacerbated by illegal entrants repeatedly being deported only to come back again,” said United States Attorney Mike Stuart. “We’re spending considerable taxpayer dollars and prosecutors’ time on illegal reentry cases that reduce the time we have to prosecute other crimes. This is a growing problem.”
On February 1, 2019, Luis Figueroa-Zuniga, 44, a Honduran national, was found in Ronceverte, Greenbrier County, West Virginia. Federal agents with ICE had received a tip that he was working illegally at a restaurant. ICE agents investigated and located Figueroa-Zuniga leaving his residence to travel to the restaurant. ICE agents requested identification from him. Figueroa-Zuniga immediately admitted that he was not in the United States legally and had no identification documents permitting him legal status. ICE agents took Figueroa-Zuniga into federal custody. Fingerprinting matched Figueroa-Zuniga to a prior removal from the United States in 2005. Figueroa-Zuniga was found by immigration judges to be in the United States illegally and was deported to Honduras. He had not obtained permission to legally enter the United States and had not sought legal status or citizenship. Figueroa-Zuniga further admitted to ICE agents that he was a Honduran citizen.
On January 22, 2019, Samuel Hernandez-Hernandez, 31, a Mexican national, was found in Beaver, Raleigh County, West Virginia. Federal agents with ICE had received information that Hernandez-Hernandez was incarcerated in the prison facility and was not a United States citizen. Agents confirmed this information and they lodged a detainer against him. ICE agents further confirmed Hernandez-Hernandez was not in the country legally by speaking with him telephonically. Hernandez-Hernandez immediately admitted that he was not in the United States legally and had no identification documents permitting him legal status. Fingerprinting matched Hernandez-Hernandez to two prior removals from the United States in 2015 and 2016. Hernandez-Hernandez was found by immigration judges to be in the United States illegally and was deported to Mexico. He had not obtained permission to legally enter the United States and had not sought legal status or citizenship. Hernandez-Hernandez further admitted to ICE agents that he was a Mexican citizen.
The investigations were conducted by the U.S. Immigration and Customs Enforcement (ICE). Assistant United States Attorneys Erik S. Goes and Stefan Hasselblad are responsible for the prosecution.
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Two Charged in Complex Payment Processing Fraud SchemeRead the Press Release
PITTSBURGH - A resident of San Juan, Puerto Rico, and a resident of Point Roberts, Washington have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to commit mail fraud, wire fraud, and bank fraud, United States Attorney Scott W. Brady announced.
The one-count superseding Indictment, returned on March 26, named Lancelot De Montsegur, aka Patrice Berthome, 38, of San Juan, Puerto Rico, and Steven Juliver, 54, of Point Roberts, Washington, as defendants.
According to the superseding Indictment, De Montsegur and Juliver were involved in a complex fraud that involved fraudulently processing credit card payments. The credit card companies will not allow their products and services to be used to pay for certain precluded activities, including the on-line sales of recreational and designer drugs, kratom, and CBD oil. De Montsegur and Juliver participated in a conspiracy designed to conceal from the credit card companies the fact that De Montsegur, Juliver and their co-conspirators used their products and services to pay for precluded activities and to subvert the internal controls the credit card companies had in place to detect and prevent this type of activity.
The fraud involved establishing shell corporations and websites associated with the shell companies that falsely claimed that they sold a product other than designer drugs, kratom, or CBD oil. The conspirators then applied for PayPal, Stripe, Square, or merchant accounts from the credit card companies in the names of the shell corporations and the fake web sites. Once the accounts were established, they were used to process payments for designer drugs, kratom, or CBD oil. Additionally, the conspirators arranged for the credit card statements sent to the consumers to have the names of the shell corporations and telephone numbers. The conspirators set up a telephone bank to receive calls from customers questioning billings on their credit card statements, and the conspirators explained to the customers the true nature of the transactions in hopes of avoiding charge-backs that could cause the credit card companies to question the legitimacy of the transactions.
The law provides for a maximum total sentence of 30 years in prison, a fine of $1,000,000 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 Attorneys Brendan T. Conway and Jeffrey R. Bengel are prosecuting this case on behalf of the government.
The Food and Drug Administration Office of Criminal Investigations and Homeland Security Investigations conducted the investigation leading to the Superseding Indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tuba City Man Sentenced to 42 Months for Illegally Possessing Firearms and AmmunitionRead the Press Release
PHOENIX – This week, Joshua Felkins, of Tuba City, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 42 months of imprisonment, to be followed by three years of supervised release. Felkins had previously pleaded guilty to being a felon in possession of firearms and ammunition.
On May 24, 2017, Navajo tribal law enforcement and the Federal Bureau of Investigation conducted a search of Felkins’ residence in Tuba City, pursuant to a federal search warrant. Inside the residence, officers and agents found two firearms and dozens of rounds of ammunition. At the time of the search, Felkins had previously been convicted of felony offenses in both California and New Mexico. Accordingly, he was legally prohibited from possessing firearms and ammunition.
The investigation in this case was conducted by the Navajo Nation Division of Public Safety and the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
CASE NUMBER: CR-18-08129-PCT-DLR
RELEASE NUMBER: 2019-040_Felkins
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Truck Driver Guilty of Threatening to Assault Five BP AgentsRead the Press Release
CORPUS CHRISTI, Texas – A 49-year-old Weslaco man has entered a guilty plea to one count of threatening to assault a federal law enforcement officer while engaged in the performance of official duties, announced U.S. Attorney Ryan K. Patrick.
On Dec. 20, 2018, Daniel Campos Jr. entered the primary inspection lane of the U.S. Border Patrol Checkpoint located near Falfurrias driving a tractor trailer. While there, Border Patrol (BP) agents attempted to question him, at which time Campos became hostile, argumentative and refused to answer questions.
During this exchange, a BP canine alerted to the vehicle. As a result, authorities directed Campos to secondary inspection for further processing. While attempting to get him to proceed there, Campos yelled, cursed and refused to comply with the agents request. Campos eventually relented and proceeded to secondary inspection.
At secondary, he continued to yell, shouting, homophobic remarks and threatened five BP agents. Specifically, he threatened to kick the BP canine in the nose, said he would engage in inappropriate conduct with the agents’ mothers and threatened to harm the agents if he saw them outside of their uniforms.
At today’s hearing, Campos admitted he threatened the agents, acknowledging he did so in order to intimidate, impede and interfere with the agents’ investigation. He also confirmed the threat occurred as a result of the agents performing their official duties as BP agents.
U.S. District Judge Nelva Gonzales Ramos accepted the plea and set sentencing for June 27, 2019. At that time, Campos faces up to six years in federal prison and possible $250,000 maximum fine.
Campos will remain in custody pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorney Jeremy C. Fugate is prosecuting the case.
Three Houston Men Charged in Various Houston Violent CrimesRead the Press Release
HOUSTON – A federal grand jury has returned two separate indictments charging a total of three men in two armed crime sprees of Houston-area commercial businesses, announced U.S. Attorney Ryan K. Patrick. In one instance, two juveniles working at a Subway restaurant were robbed at gunpoint. The cases are being investigated and prosecuted as part of the recently announced Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Crime Gun Strike Force.
Devante Blackmon, 19, is set to make his initial appearance before U.S. Magistrate Judge Frances H. Stacy at 10:00 a.m. today. He is charged in the armed robbery of a local Dollar Tree store along with Stafford Polk, 22. Polk is considered a fugitive and a warrant remains outstanding for his arrest.
Blackmon and Polk are charged with armed robbery and using firearms in during crimes of violence.
Both are charged with Feb. 22, 2019, armed robbery of the Dollar tree store located at 5360 West 34th Street, in Houston. The defendants allegedly pointed a gun at several store employees and stole money before fleeing as the police arrived.
Blackmon is charged with two additional robberies of local cell phone stores. On May 20, 2018, Blackmon allegedly confronted a store employee who was working at the Metro PCS store located at 7303 Breen Drive in Houston. The indictment alleges Blackmon brandished the weapon and robbed the employee of money and cellular phones at gunpoint. On June 15, 2018, Blackmon also allegedly committed the armed robbery of the Boost Mobile store located at 12151 Northwest Freeway in Houston. Again, Blackmon allegedly brandished his gun and stole money and cellular phones at gunpoint.
In a separate, but similar case, Russell Pittman aka Randon Booth, 26, of Houston, allegedly committed three separate armed robberies of commercial businesses, including robberies of a Subway restaurant and two cell phone stores, during which he stole U.S. currency and cellular phones before fleeing.
On Feb. 15, 2018, Pittman allegedly confronted two juveniles who were working at the Subway restaurant located at 10086 Long Point Road in Houston. The indictment alleges Pittman brandished the weapon and robbed the employees of money at gunpoint.
The indictment alleges Pittman committed another armed robbery of the Boost Mobile store located at 2323 South Kirkwood in Houston. Again. He brandished his gun and stole money and cellular phones at gunpoint, according to the charges. Less than a month later, he allegedly also robbed the Cell Phone Zone located at 7111 Harwin Drive in Houston. During that robbery, Pittman pointed the gun at several store employees and stole money and cellular phones, the charges allege.
Pittman appeared in federal court March 18, 2019, at which time Judge Stacy ordered be held in custody pending further criminal proceedings.
Pittman and Blackmon are bot charged with three counts of interference with commerce by robbery and three counts of using and brandishing a firearm during and in relation to a crime of violence. Polk is charged with one count each of the same crimes.
If convicted, the defendants faces up to 20 years in federal prison for the robbery charges. The firearm offenses alleged in the robberies carry a mandatory minimum term of seven years to life for each offense, which must run consecutively to any other sentence imposed. Each conviction also carries the possibility of a $250,000 maximum fine.
ATF and Houston Police Department conducted both investigations, now part of the ATF Crime Gun Strike Force. Assistant U.S. Attorney Steve Mellin is prosecuting the cases.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Three Cleveland men indicted on firearms chargesRead the Press Release
Three Cleveland men were indicted on firearms charges.
Leandre M. Jeter, 29 possessed a Palmetto State Armory PA-15 rifle and a RG Industries .22-caliber revolver on January 25, despite a previous convictions for aggravated robbery with a firearm specification and being a felon in possession of a firearm, according to the indictment.
Aaron Stallworth, 30, possessed a Taurus 9 mm firearm and 45 rounds of ammunition on November 23, 2018, despite a previous conviction for felonious assault, according to the indictment.
Roger Patrick, 29, possessed a SCCY 9 mm firearm and 10 rounds of ammunition on November 25, 2018, despite previous convictions for robbery with a firearm specification and drug trafficking, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cleveland Division of Police. The cases are being prosecuted by Assistant U.S. Attorneys Kelly L. Galvin and John C. Hanley.
An indictment is only an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Boston Men Charged with Armed Robberyof Brockton Cell Phone StoreRead the Press Release
BOSTON – Three Boston men were charged yesterday in federal court in Boston in connection with the robbing a T-Mobile store in Brockton and shooting at police officers as they fled the scene.
Diovanni Carter, 29, Darius Carter, 28, and Stephan Rosser-Stewart, 26, were indicted yesterday on charges of interference with commerce by robbery; conspiracy to interfere with commerce by robbery; discharging, brandishing, using and carrying a firearm during the commission of a crime of violence; and being felons in possession of firearms and ammunition. The defendants were previously charged by the state. The Court has not yet scheduled an arraignment date.
On Jan. 26, 2019, Darius Carter and Rosser-Stewart entered a T-Mobile store in Brockton at approximately 7:11 p.m. It is alleged the men were carrying a semi-automatic firearm, which they pointed at the store manager as they demanded cash and electronics. Darius Carter struck the store manager in the head with a firearm as he demanded that the manager open the door to a rear room with a large safe containing cell phones and cash. The men allegedly stole approximately $25,000 in cash and electronics, left the store, and fled in a getaway vehicle driven by Diovanni Carter, who is alleged to be the leader of the group and orchestrated the plan.
Brockton Police responded and located the getaway vehicle. A high speed chase ensued that reached over 70 mph in residential neighborhoods. During the chase, Darius Carter and Rosser-Stewart allegedly fired nine rounds at the pursuing police cruisers.
Law enforcement apprehended Darius Carter and Rosser-Stewart and recovered the stolen phones, cash, and three firearms used in robbery. The defendants were wearing clothes consistent with those worn in store video surveillance. Diovanni Carter remained a fugitive until March 5, 2019, when he was apprehended by law enforcement.
All of the charged defendants were prohibited from possessing firearms and ammunition due to prior criminal convictions.
The charge of interference with commerce by robbery provides for a sentence of no greater than 20 years in prison, five years of supervised release, and a fine of up to $250,000. The charge of being a felon in possession of ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. The charge of use of a firearm during the commission of a crime of violence provides for a sentence of up to life in prison, and a mandatory consecutive term of imprisonment ranging from five years for the possession of a firearm, seven years for the brandishing of a firearm, and 10 years for the discharge of a firearm. 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; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; John Gibbons, U.S. Marshal of the District of Massachusetts; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy J. Cruz; Plymouth County Sheriff Joseph D. McDonald Jr.; and Brockton Police Chief John Crowley made the announcement today. Assistant U.S. Attorneys Philip Mallard and John Wortmann of Lelling’s Organized Crime and Gang Unit are prosecuting the case.
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 our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the indictments are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Texas Man in Custody on Charges of Tax EvasionRead the Press Release
VICTORIA, Texas – A grand jury has returned a 12-count indictment against a local man, alleging multiple counts of tax evasion and illegally structuring financial transactions for the purpose of evading reporting requirements, announced U.S. Attorney Ryan K. Patrick.
Corey Campbell Boucher surrendered to federal agents without incident this morning. He is expected to make his initial appearance before U.S. Magistrate Judge B. Janice Ellington at 2:00 today.
The indictment includes five counts of making a false material statement on his individual income tax returns for tax years 2012 - 2016. For each of those years Boucher allegedly knew he had received significantly more income than the amount stated in his U.S. Individual Income Tax Return.
The indictment also charges Boucher with seven counts of structuring financial transactions for the purpose of evading reporting requirements. On seven occasions between Sept. 16, 2014, and Aug. 17, 2016, Boucher allegedly broke up large cash deposits into multiple smaller deposits conducted on the same day for the purpose of evading federal reporting requirements, according to the charges.
If convicted, Boucher faces up to three years in federal prison for each count of tax evasion and a maximum of five years for each count of structuring. Each of the charges also carry a possible $250,00 maximum possible fine.
IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
An indictment or information is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Texas Woman Sentenced to Two Years in Prison for FederalRead the Press Release
ALBUQUERQUE – Selma Morales, 55, of Lubbock, Tex., was sentenced today in federal court in Santa Fe, NM, to 24 months of imprisonment followed by three years of supervised release for her conviction on a wire fraud charge arising from a scheme to defraud her employer. Morales also was ordered to pay $924,311 in restitution to her former employer.
According to court records, from May 2009 through May 2015, Morales engaged in a scheme to defraud her former employer, a law firm headquartered in Lubbock with offices in Albuquerque, Hobbs and Las Cruces, NM, of more than $550,000, which she used for unauthorized personal charges and expenditures. At the time, Morales was the law firm’s financial manager and bookkeeper.
Morales pleaded guilty in Sept. 2017, and admitted abusing her position as a trusted, high-level employee who managed the law firm’s day-to-day finances to perpetuate her fraudulent scheme. She acknowledged having access to the law firm’s bank accounts and credit cards in connection with her employment, and using the law firm’s credit cards to pay for personal expenses, including meals, groceries, car repairs, car and home insurance, property taxes, funeral expenses for a relative, clothing, sports apparel and equipment, designer products, jewelry, and plastic surgery. She also used the law firm’s credit cards to pay for family vacations and travel (including trips to San Francisco, Calif., Seattle, Wash., and Las Vegas, Nev.), entertainment (including season tickets to college athletic events, concerts and NBA playoff tickets), apartment rental payments, and college tuition payments. Morales also used her position as well as information about her employer to conceal her fraudulent activity.
The case was investigated by the Albuquerque office of the FBI, and was prosecuted by Assistant U.S. Attorneys Margaret M. Vierbuchen and Brandon L. Fyffe.
Statement by Attorney General William P. Barr on U.S. Attorney Jessie Liu’s Appointment as Chairwoman of the Attorney General’s Advisory CommitteeRead the Press Release
Attorney General William P. Barr issued the following statement:
“Today, I am pleased to announce that I am appointing Jessie Liu as chairwoman of the Attorney General's Advisory Committee of United States Attorneys (AGAC). Jessie Liu, an outstanding attorney with broad experience, is widely-respected, within the Department. She currently leads more than 300 prosecutors at our nation's largest U.S. Attorney’s office. Jessie will be an integral part of our leadership at the Department. We will all benefit from her universally-regarded expertise and dedication to public service. I would also like to thank Richard Moore, U.S. Attorney for the Southern District of Alabama, for his outstanding tenure as chair of the AGAC, and his contributions to the management of the Department. He will remain a key advisor on the committee.”
Starks felon sentenced to 18 months in prison for possessing three firearms, ammunitionRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that Ronald Joseph Guillory, 45, of Starks, Louisiana, was sentenced Monday to 18 months in prison by U.S. District Judge Donald E. Walter for possessing a shotgun, a rifle, a pistol and ammunition.
When Calcasieu Parish Sheriff’s officers responded to a disturbance on April 6, 2018 at a home near Vinton, Louisiana, they found Guillory sitting inside of his truck in the driveway. After the officers approached the vehicle, they noticed drug paraphernalia and arrested Guillory. They found a Stevens .16-gauge single-shot shotgun, a Marlin .22-caliber semi-automatic rifle, a Cobra .380-caliber semi-automatic pistol and ammunition on the back seat. Guillory admitted to the officers he was in possession of the weapons. Under federal law, Guillory is not allowed to possess a firearm or ammunition as a convicted felon. He was convicted of simple burglary in February of 2007. He pleaded guilty in federal court on November 15, 2018.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for reductions in crime.
The ATF and the Calcasieu Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger prosecuted the case.
Sacramento Man Indicted for Mailing Threatening Communications, Hoax Letters Containing White Powder, and Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a seven-count indictment today against Darnell Ray Owens, 32, of Sacramento, charging him with mailing threatening communications, hoaxes involving biological weapons, and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
According to court documents, Owens allegedly sent threatening letters via U.S. mail to individuals and organizations, using the return addresses of people he knew. Two letters contained white powder.
According to the indictment, on July 10, 2018, Owens mailed a letter to the pastor of a church in Dallas, Texas, which said in part, “I will assassinate your pastor in the name of Allah, I will burn down Christian churches … This is a threat.”
According to the indictment, on October 20, 2018, Owens sent a letter to Sacramento television station Fox 40 KTXL with threats to kill four employees. The letter stated in part, “Allah has commanded me to burn down the news station with fire and murder anyone who comes out with a gun … This is a threat and a promise.”
According to the indictment, On March 14, 2019, Owens mailed a letter to an elected official in Sacramento. It stated, “I knew you was going to not charge those corrupt racist cops. You have failed this city and the people. So I am making a threat on your life, I will assassinate you with a bullet to your head, you will not survive I will watch your body shake as the life in you leaves.”
In addition, the indictment charges Owens with sending two letters containing white powder under circumstances where the recipient may have reasonably believed that the letters contained a biological agent or toxin for use as a weapon. The letter to the church in Texas contained white powder and the other letter containing white powder was sent to the Sacramento County Department of Revenue Recovery. Owens allegedly sent the hoax letters using the identities of other persons, an action which would constitute aggravated identity theft.
This case is the product of an investigation by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the City of Sacramento Police Department. Assistant U.S. Attorney Shea J. Kenny is prosecuting the case.
Owens is in custody after being arrested in Tulsa, Oklahoma on March 22, 2019. He is awaiting transfer to the Eastern District of California.
If convicted, Owens faces a maximum statutory penalty of five years in prison for each of the threat and hoax counts, and a mandatory statutory penalty of two years in prison for each aggravated identity theft count, and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Retired Navy Service Member Pleads Guilty to Attempted Enticement of Minors to Engage in Sexual Activity and Possession of Child PornographyRead the Press Release
Orlando, Florida– United States Attorney Maria Chapa Lopez announces that Charles S. Leis (48, Tampa) has pleaded guilty to attempted enticement of minors to engage in sexual activity and possession of child pornography. Leis faces a mandatory minimum penalty of 10 years, and up to life, in federal prison for the attempted enticement count and up to 10 years in federal prison for the possession offense. A sentencing date has not yet been set.
According to the plea agreement, on October 24, 2018, an FBI special agent in Orange County, Florida initiated an undercover investigation within an online chat group that alluded to “family fun.” Leis joined the chat group and initiated conversations with the undercover agent, who identified himself as the father of two girls, ages 9 and 11. During the span of several days, Leis solicited sex, including oral, vaginal, and anal sex, from the minors. In that process, Leis distributed images of child pornography to the “father” in an effort to prove that he was “real” about his intent to engage the “girls” in sexual activity. Leis made plans to meet the “girls” in Tampa on November 2, 2018. However, on that date, the agent could not find Leis at the agreed upon location.
Further investigation revealed that around the same time (October 2018), Leis had been in contact with another FBI agent through another chat group. That undercover agent was acting as the father of 6 and 7-year-old girls. Leis also distributed child pornography to that agent and requested to have sexual intercourse with his “children.”
On November 29, 2018, FBI agents executed a search warrant at Leis’s residence in Tampa and seized his computer. The computer had depictions of girls between 3 and 10 years of age engaged in sexually explicit conduct.
This case was investigated by the Federal Bureau of Investigation and the Naval Criminal Investigative Service. It is being prosecuted by Assistant United States Attorneys Ilianys Rivera Miranda and Francis D. Murray.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Philadelphia Man Convicted at Trial of Trafficking Cocaine Near SchoolRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Carlos Ramos, 34, of Philadelphia, was convicted yesterday by a federal jury of one count of attempted possession with intent to distribute 500 grams or more of cocaine, one count of possession with intent to distribute cocaine, and one count of possession with intent to distribute cocaine within 1,000 feet of an elementary school.
On September 11, 2018, U.S. Postal Inspectors intercepted a suspicious priority mail package at the Philadelphia mail distribution center. After receiving a court-ordered search warrant, law enforcement opened the package and discovered over one kilogram of cocaine inside the package. On September 13, 2018, law enforcement conducted a controlled delivery of the priority package, which also contained a court-authorized GPS tracker and beeper device inside of it. The package was hand-delivered to the defendant, Carlos Ramos. A few minutes after delivery, the beeper went off, indicating that the priority mail package had been opened. When law enforcement knocked on the door, no one responded. A law enforcement officer conducting surveillance in the rear of the house observed an arm in a white jacket reach out of a second floor window and throw a white package out of the window into the backyard of the adjoining property. Law enforcement retrieved the package from the adjacent yard. Upon entry into the house, law enforcement encountered Ramos exiting the rear bedroom on the second floor and wearing a white jacket. A sweep of Ramos’ hands with a black light revealed the presence of theft detection powder on Ramos’ hands. Agents found the opened priority mail package, a knife, and some of the plastic wrapping material at the top of the stairs. The home is across the street from an elementary school.
“The defendant received over one kilogram of cocaine in the mail when he lived across the street from an elementary school,” said U.S. Attorney McSwain. “He clearly has no respect for the rule of law as well as a total disregard for the safety of our children. We are grateful that the jury held him accountable for his crimes.”
The case was investigated by the U.S. Postal Inspection Service and the Philadelphia Police Department, and the case is being prosecuted by Assistant United States Attorneys Justin Ashenfelter and Frank A. Labor III.
Philadelphia Business Owner Indicted for Multi-Million Dollar Fraudulent Loan SchemeRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Gary Frank, age 48, of Philadelphia and Bala Cynwyd, Pennsylvania, was charged today by indictment with wire fraud, bankruptcy fraud, and money laundering, stemming from a massive fraudulent loan scheme.
According to the indictment, for over a decade, the defendant executed a complex and sophisticated scheme to defraud numerous victims. The defendant owned and operated a Bala Cynwyd business named the Legal Coverage Group, Ltd., which contracted with employers desiring to offer a legal plan to their employees as part of their employee benefits plans. It is alleged that the defendant tricked his victims into believing that the Legal Coverage Group was a rapidly growing leader in the legal plan industry, generating hundreds of millions of dollars of annual revenue and employing hundreds of individuals. In reality, however, the Legal Coverage Group experienced virtually no growth from approximately 2006 through 2017, generating only several thousand dollars of annual revenue. Through this fraud, the defendant allegedly obtained over $30 million in loans, which he used to live an extravagant lifestyle.
According to the indictment, the defendant’s largest victims were banks and financial institutions, which loaned the Legal Coverage Group millions of dollars based upon the defendant’s fraudulent misrepresentations and false documents that he created. The defendant also allegedly deceived many individuals and other entities, including several of his close friends, his company’s staff members, its advisors, customers, vendors, and local charities.
“This Office takes allegations of financial fraud and loan fraud very seriously,’ said U.S. Attorney McSwain. “As alleged, the defendant obtained millions of dollars from lenders and friends, only to spend it on his lavish personal lifestyle. My Office will continue to work with our law enforcement partners to protect innocent individuals and businesses from being victimized by fraud.”
"This defendant allegedly lived high on the hog for over a decade by fraudulently misrepresenting his business practices and prowess," said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. "The FBI will continue to diligently investigate and hold accountable those foolish enough to engage in financial fraud."
If convicted, the defendant faces a maximum possible sentence of 935 years imprisonment, full restitution, a fine, and a period of supervised release.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Patrick J. Murray.
An indictment, information or complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Oak Grove woman pleads guilty to distributing methamphetamineRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Sedonnia Axl Lee Bass, 28, of Oak Grove, Louisiana, pleaded guilty Wednesday before U.S. District Judge Donald E. Walter for distributing methamphetamine.
According to the guilty plea, a West Carrol Parish Sheriff’s deputy responded to a domestic violence call on November 25, 2018 at an Oak Grove residence. The deputy approached a vehicle parked in the driveway and made contact with Bass, who was sitting in the driver’s seat. She told the deputy that she had not seen the altercation and would not say why she was there. While talking with Bass, the officer noticed that she was trying to conceal something near the center console. When Bass identified herself, the deputy recognized her name and knew that she had active warrants for her arrest and placed her under arrest. A search of the car revealed a black bag containing small baggies, a scale, a spoon and a pink glass-smoking pipe wrapped in a handkerchief on the floorboard area of the driver’s side. The deputy also found a clear plastic bag between the center console and the driver’s seat containing 117.0549 grams of methamphetamine. After questioning Bass at the station, she admitted the methamphetamine was hers and that she sells methamphetamine in and around the Oak Grove area.
Bass faces up to 10 years to life in prison, at least five years of supervised release and a $10 million fine. The court set the sentencing date for July 1, 2019.
The DEA, West Carroll Parish Sheriff’s Office and Oak Grove Police Department conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath is prosecuting the case.
Navajo Man Sentenced to 20 Years Prison for Aggravated Sexual Abuse by ForceRead the Press Release
PHOENIX– On March 26, 2019, Frankie Nez, 38, of Sanders, Ariz., was sentenced by U.S. District Judge Steven P. Logan to 20 years in prison, followed by life time supervised release. Nez had previously pleaded guilty to aggravated sexual abuse by force.
On Feb. 25, 2018, Nez forced his way into the elderly victim’s home and sexually assaulted her. Nez and the victim are enrolled members of the Navajo Nation.
The investigation in this case was conducted by the Navajo Nation Police Department and Federal Bureau of Investigation. The prosecution was handled by Kiyoko Patterson, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-18-08090-PCT-SPL
RELEASE NUMBER: 2019-038_Nez
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Navajo Man from Shiprock Sentenced ToRead the Press Release
ALBUQUERQUE – This morning a federal judge in Albuquerque, NM, sentenced Thomas M. Navaho, 26, an enrolled member of the Navajo Nation who resides in Shiprock, NM, to 51 months of imprisonment based on his previously entered guilty plea to an assault charge.
Navaho was convicted of assaulting a Navajo man on April 27, 2018, on the Navajo Indian Reservation in San Juan County, N.M. Court documents reflect that Navaho punched, kicked, choked, and threatening to kill the victim because he believed the victim called the police regarding a fight Navaho previously had with another person. The victim sustained serious bodily injuries, including bleeding on the brain, a broken rib, lacerations requiring stitches and a wound to his left hand which became infected and required surgery, as the result of the assault.
This case was investigated by the Farmington office of the FBI and the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Nicholas J. Marshall.
Minnesota Man Sentenced for 2 Dane County Bank RobberiesRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Robert L. Minette, 32, Shakopee, Minnesota, was sentenced to nine years in federal prison today by U.S. District Court Judge William Conley on two counts of aiding and abetting bank robbery and one count of brandishing a firearm. Minette entered a guilty plea to these charges on January 15, 2019.
This case involves a series of nine bank robberies that were planned by Jonathan Thompson. The bank robberies—in Madison, Middleton, Sun Prairie, and Fitchburg, Wisconsin — occurred between January 8 and February 22, 2018. Minette, Kiefah Marbra, and Thompson were indicted by a federal grand jury for these bank robberies on May 30, 2018. Minette was involved in the first two robberies; Marbra was involved in the next eight robberies; Johnson planned the robberies and was the getaway driver.
Thompson chose the banks and dropped off Marbra and Minette, who would enter the bank, brandish a gun, and demand money. After the robberies, Thompson would drive them back to his apartment where he would divide the proceeds.
In sentencing Minette, Judge Conley remarked that in light of his criminal history, when Minette was released from prison he “doubled down” by then committing two bank robberies. Judge Conley noted that even after the dye pack went off during the first robbery, Minette committed a second robbery and that must be considered in terms of the risk that he poses.
On January 15, 2018, Marbra pled guilty to the eight bank robberies that he was involved in and one count of brandishing a firearm. Thompson was convicted on January 30, 2019, after a three-day jury trial, of all nine bank robberies and one count of brandishing a firearm.
Marbra is scheduled to be sentenced on April 16, 2018. Thompson is scheduled to be sentenced on April 24, 2019. They both face a mandatory minimum penalty of seven years and a maximum penalty of life in prison.
The charges against Thompson are the result of an investigation by the Federal Bureau of Investigation, Madison Police Department, Middleton Police Department, Sun Prairie Police Department, Fitchburg Police Department, and Dane County Sheriff’s Office. The Dane County District Attorney’s Office also assisted in this case. The prosecution of the case is being handled by Assistant United States Attorneys Corey Stephan and Dan Graber.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Mineral County man admits to role in a drug distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Michael Corey Alt, of Elk Garden, West Virginia, has admitted to his involvement in a drug distribution conspiracy, United States Attorney Bill Powell announced.
Alt, age 34, pled guilty to one count of “Conspiracy to Distribute Methamphetamine.” Alt admitted to working with others to distribute methamphetamine from August 2017 to June 2018 in Mineral, Hardy, and Hampshire Counties and elsewhere.
Alt faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police, and the Potomac Highlands Drug & Violent Crimes Task Force investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Robert W. Trumble presided.
Michigan man charged with fraudulently obtaining nearly $12 million in VA construction contracts in Cleveland and Michigan by falsely claiming the company receiving the contracts was owned by a disabled veteranRead the Press Release
A Michigan man was charged with fraudulently obtaining nearly $12 million in government construction contracts in Cleveland and Michigan by falsely claiming the company receiving the contracts was owned by a disabled veteran.
William Kozerski, 62, of Bloomfield Hills, Michigan, was charged via criminal information with one count of wire fraud.
According to the information filed in federal court in Cleveland:
Congress established the Service-Disabled Veteran-Owned Small Business Program to help service-disabled veterans by setting aside certain contracts for small businesses majority owned and controlled by service-disabled veterans
CA Services was a construction company based in Michigan. Kozerski and CA Services held out that a service-disabled veteran was the owner and primary manager of CA Services when, in fact, the disabled veteran was not.
Kozerski, between 2007 and 2015, fraudulently claimed CA Services met the requirements of the Service-Disabled Veteran-Owned Small Business Program in order to obtain approximately $11.8 million in contracts for work at VA Medical Centers in Cleveland, Detroit and Ann Arbor.
If convicted, the defendant’s sentence will be determined by the Court after review of factors uniqueto this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation was conducted by Department of Veterans Affairs, Department of Veteran Affairs – Office of Inspector General, the Defense Criminal Investigative Service -- Office of the Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Chelsea Rice and Robert Kern.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.