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Thursday 14 February 2019
Northern District of Alabama U.S. Attorney’s Office Collects $9,044,060.80 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
Birmingham, AL-- U.S. Attorney Jay E. Town announced today that the Northern District of Alabama collected $9,044,060.80 in criminal and civil actions in Fiscal Year 2018. Of this amount, $7,221,160.63 was collected in criminal actions and $1,822,900.17 was collected in civil actions.
Additionally, the Northern District of Alabama worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,651,100.00 in 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 Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents is nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
“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,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
“The prosecutors and support staff in my office strive each day to put criminals behind bars and protect the public fisc, and the collection of civil and criminal debts is an essential part of that,” Town said. “The forfeitures collected shows our continued commitment to pursue the recovery of those ill-gotten gains so that victims of crime and the federal treasury can be given restitution. We will continue to do so aggressively.”
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.
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North Carolina Man Convicted of Traveling to Nashville Tennessee to Have Sex with 15 Year-OldRead the Press Release
NASHVILLE, Tenn. – February 14, 2019 – A federal jury returned guilty verdicts today on all counts against James Frei, 50, of Union Mills, North Carolina, after a trial on child pornography related offenses, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. Frei was indicted in March 2017 and charged with child pornography offenses, including production and transportation of child pornography, on-line enticement of a minor and traveling to have sex with a minor.
According to evidence and testimony at trial, in July 2016, the National Center for Missing and Exploited Children (NCMEC) received a cyber-tip from Facebook regarding an adult male engaging in sexually explicit conversations with a minor female, later identified as a 15 year-old living in Nashville. The conversations indicated that the adult may have already traveled to Nashville to have sex with the minor female. This information was relayed to the Metropolitan Nashville Police Department (MNPD) for further investigation.
A MNPD detective interviewed the minor and learned that she had met the man, later identified as Frei, in May 2016 through a teen chat room on Facebook and that he had traveled to Nashville multiple times in May 2016 and went to her house after her father had left for work, where they engaged in sexual activity. The minor female was then driven to a nearby park where they again engaged in sexual activity. Frei returned to Nashville for a few days in June 2016 and on two occasions, he took the minor to a hotel near the airport and engaged in sexual activity. The detective also learned that Frei had recorded the sexual encounters with his cell phone.
A subsequent search warrant served at Frei’s North Carolina home resulted in the seizure and forensic examination of his cell phone, which was found to contain numerous images and videos of him engaging in sex with the minor female.
Frei faces up to life in prison when he is sentenced on May 20, 2019. The production of child pornography charge carries a mandatory minimum sentence of 15 years in prison.
This case was investigated by the Metropolitan Nashville Police Department and is being prosecuted by Assistant U.S. Attorneys Katy Risinger and Christopher Suedekum.
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New Orleans Man Sentenced for Hate Crime in Shooting of Three African-American Men Attempting to Evacuate After Hurricane KatrinaRead the Press Release
Roland J. Bourgeois Jr., 55, of New Orleans, Louisiana, was sentenced to 10 years imprisonment, followed by five years of supervised release on charges that, in the wake of Hurricane Katrina, he shot at three young African-American men because of their race as the men attempted to evacuate New Orleans, announced Assistant Attorney General for the Civil Rights Division Eric Dreiband; U.S. Attorney for the Eastern District of Louisiana Peter G. Strasser; and FBI New Orleans Division Special Agent in Charge Eric J. Rommal.
“Today’s sentencing brings closure to this race-motivated shooting that occurred over 13 years ago, in the wake of Hurricane Katrina,” said Assistant Attorney General Eric Dreiband. “This sentence sends a clear message to those who attempt to divide our community with violence and fear that the Department of Justice will work tirelessly to prosecute perpetrators of hate-motivated violence.”
“Upholding the civil rights of our citizens is one of the most important duties of the Department of Justice. This sentencing clearly demonstrates the tenacity of law enforcement to hold individuals responsible for their actions, despite the passage of time,” said U.S. Attorney Strasser. “Hurricane Katrina was a tragic chapter in the history of our city. Hopefully this plea brings some measure of finality to those directly affected by this crime and to this great city that endured so much in the days following this calamity.”
Eric Rommal, FBI New Orleans Special Agent in Charge stated: “Justice is blind, but she is also patient. Mr. Bourgeois’ cowardly, unprovoked, and racially based violent acts were unjustly carried out upon his victims over a decade ago, leaving the victims, their families, and our community torn by hate. We hope his sentencing will help the healing process and serve notice that violence especially borne from hate, will never be tolerated and the FBI remains committed to upholding the Constitution and protecting civil rights.”
According to documents filed in connection with the plea, shortly after Hurricane Katrina struck New Orleans, Bourgeois and other white male residents of the Algiers Point neighborhood agreed that they would use force to keep out African Americans from their neighborhood. They moved fallen trees to barricade the streets near their homes and started armed patrols of the neighborhood.
On Sept. 1, 2005, three young African-American men – D.H., M.A., and C.C. – walked to Algiers Point in an effort to reach the ferry landing, a site that state and federal agencies were using as an evacuation point. When the three men crossed a barricade constructed by Bourgeois and others, Bourgeois opened fire with a shotgun, wounding all three men. After the men fled, Bourgeois boasted that he had “got one” and pledged to “kill that [racial slur]” if the man had survived. Bourgeois warned one of his neighbors: “Anything coming up this street darker than a brown paper bag is getting shot.”
The prosecution of this matter was delayed because the defendant was repeatedly found incompetent to stand trial after being charged in July 2010. The defendant’s competency was evaluated six different times between 2010 and 2018. After he was declared competent in 2018, Bourgeois pleaded guilty in October 2018.
The FBI conducted the investigation. The case was prosecuted by Special Litigation Counsel Jared Fishman and Trial Attorney Mary J. Hahn of the Civil Rights Division, and Assistant United States Attorney David Howard Sinkman of the Eastern District of Louisiana.
For more information about Department of Justice’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to Department of Justice hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals.
New Orleans Man Sentenced for Hate Crime in Shooting of Three African-American Men Attempting to Evacuate After Hurricane KatrinaRead the Press Release
WASHINGTON – Roland J. Bourgeois Jr., 55, of New Orleans, Louisiana, was sentenced to 10 years imprisonment, followed by five years of supervised release on charges that, in the wake of Hurricane Katrina, he shot at three young African-American men because of their race as the men attempted to evacuate New Orleans, announced Assistant Attorney General for the Civil Rights Division Eric Dreiband; U.S. Attorney for the Eastern District of Louisiana Peter G. Strasser; and FBI New Orleans Division Special Agent in Charge Eric J. Rommal.
“Today’s sentencing brings closure to this race-motivated shooting that occurred over 13 years ago, in the wake of Hurricane Katrina,” said Assistant Attorney General Eric Dreiband. “This sentence sends a clear message to those who attempt to divide our community with violence and fear that the Department of Justice will work tirelessly to prosecute perpetrators of hate-motivated violence.”
“Upholding the civil rights of our citizens is one of the most important duties of the Department of Justice. This sentencing clearly demonstrates the tenacity of law enforcement to hold individuals responsible for their actions, despite the passage of time,” said U.S. Attorney Strasser. “Hurricane Katrina was a tragic chapter in the history of our city. Hopefully this plea brings some measure of finality to those directly affected by this crime and to this great city that endured so much in the days following this calamity.”
Eric Rommal, FBI New Orleans Special Agent in Charge stated: “Justice is blind, but she is also patient. Mr. Bourgeois’ cowardly, unprovoked, and racially based violent acts were unjustly carried out upon his victims over a decade ago, leaving the victims, their families, and our community torn by hate. We hope his sentencing will help the healing process and serve notice that violence especially borne from hate, will never be tolerated and the FBI remains committed to upholding the Constitution and protecting civil rights.”
According to documents filed in connection with the plea, shortly after Hurricane Katrina struck New Orleans, Bourgeois and other white male residents of the Algiers Point neighborhood agreed that they would use force to keep out African Americans from their neighborhood. They moved fallen trees to barricade the streets near their homes and started armed patrols of the neighborhood.
On Sept. 1, 2005, three young African-American men – D.H., M.A., and C.C. – walked to Algiers Point in an effort to reach the ferry landing, a site that state and federal agencies were using as an evacuation point. When the three men crossed a barricade constructed by Bourgeois and others, Bourgeois opened fire with a shotgun, wounding all three men. After the men fled, Bourgeois boasted that he had “got one” and pledged to “kill that [racial slur]” if the man had survived. Bourgeois warned one of his neighbors: “Anything coming up this street darker than a brown paper bag is getting shot.”
The prosecution of this matter was delayed because the defendant was repeatedly found incompetent to stand trial after being charged in July, 2010. The defendant’s competency was evaluated six different times between 2010 and 2018. After he was declared competent in 2018, Bourgeois pleaded guilty in October 2018.
The FBI conducted the investigation. The case was prosecuted by Special Litigation Counsel Jared Fishman and Trial Attorney Mary J. Hahn of the Civil Rights Division, and Assistant United States Attorney David Howard Sinkman of the Eastern District of Louisiana.
For more information about DOJ’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to DOJ hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals.
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New Britain Man Sentenced to More Than 11 Years in Federal Prison for Cocaine and Firearm OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ORLANDO QUIROS, also known as “O” and “Gordo, 42, formerly of New Britain and Suffield, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 136 months of imprisonment, followed by five years of supervised release, for cocaine trafficking and firearm possession offenses.
This matter stems from a joint investigation headed by the DEA New Haven Task Force into a central Connecticut cocaine and crack cocaine trafficking ring. The investigation, which included the use of court-authorized wiretaps, controlled purchases of crack cocaine and seizures of cocaine and cash proceeds, revealed that Westley Northrup, also known as “Piff,” operated a cocaine and crack cocaine trafficking ring while he was incarcerated in state custody at the Cheshire Correctional Institution. Northrup conspired with Carlos Roman, also known as “Frizz,” of Middletown, to purchase cocaine from suppliers, including Omar Rivera, convert some of the cocaine to crack cocaine, and then distribute crack and cocaine through a network of dealers.
Further investigation revealed that Rivera, of New Britain, was being supplied with cocaine by Quiros, who regularly received packages containing multi-kilogram quantities of cocaine through the U.S. Mail from Puerto Rico. Quiros’s operation was assisted by individuals who agreed to accept delivery of the packages.
On July 12, 2017, law enforcement officers intercepted and seized approximately $210,000 in cash that Quiros had in a vehicle he was driving from Connecticut to New York.
Quiros and others involved in this narcotics trafficking conspiracy were arrested on July 26, 2017. On that date, investigators executed multiple search warrants and seized approximately seven kilograms of cocaine, several pounds of marijuana, four firearms, and nearly $100,000 in cash.
One of the firearms, and approximately $90,000 in cash, were found in a Hartford apartment that Quiros maintained.
Investigators also seized from Quiros a 2016 Maserati and 2016 BMW 6 Series.
On July 17, 2018, Quiros pleaded guilty to one count of conspiracy to possess with intent to distribute five kilograms or more of cocaine, and one count of possession of a firearm by a previously convicted felon.
Northrup, Roman and Rivera pleaded guilty to related charges. On April 12, 2018, Roman was sentenced to 120 months of imprisonment. Northrup and Rivera await sentencing.
This matter has been investigated by the DEA New Haven Task Force, U.S. Postal Inspection Service and the Middletown and New Britain Police Departments. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, the Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby and Middletown Police Departments.
The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Nashville Man Facing Federal Charges for Setting Fires to the Music City GarageRead the Press Release
NASHVILLE, Tenn. – February 14, 2014 – James Hayward Williams, aka Spanky, 42 of Nashville, Tennessee, was charged today with 11 federal offenses relating to the burning of the Music City Garage in East Nashville in December 2018 and for firing multiple rounds from a semi-automatic pistol at On the Go Tires in East Nashville on January 5, 2019, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
A criminal complaint obtained today charges Williams with using Instagram messages to threaten to burn the Music City Garage and vehicles located on the property, with the intent to extort money from the owner; four counts of using fire to commit a federal felony; four counts of maliciously damaging a building used in interstate commerce, by means of fire; and being a convicted felon in possession of a firearm.
According to the complaint, after threatening the owner with burning the business, Williams set fire to the Music City Garage two times during the early morning hours on December 22, 2018, and again set fire to the building on December 24th and on December 26th, in an effort to extort $30,000 from its owner. During each incident, the Metropolitan Nashville Fire Department (MNFD) responded and extinguished blazes at the business, including vehicles which had been set on fire. The complaint also charges Williams with possessing a .40 caliber Smith & Wesson pistol after having been convicted of a felony and firing multiple rounds from that pistol at On the Go Tires, in furtherance of an extortion attempt to collect $20,000 from a person associated with that business. As alleged in the complaint, multiple rounds were fired at the business and at a vehicle that was occupied by a young girl, narrowly missing her.
If convicted, Williams faces more than 100 years in prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the MNPD Gang Unit and recently formed Crime Gun Unit; and the MNFD Fire Marshal’s Office. Assistant U.S. Attorney Sunny A.M. Koshy is prosecuting the case.
The charges in the criminal complaint are merely accusations. The defendant is presumed innocent until proven guilty in a court of law.
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Moss Point Man Sentenced to Nearly 15 Years in Federal Prison for Illegally Possessing Firearm and Possession with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, Miss. –Aaron Rouleau, 32, of Moss Point, Mississippi, was sentenced yesterday by U.S. District Judge Louis Guirola to 178 months in prison for possession with intent to distribute more than 50 grams of methamphetamine, and 120 months in prison for possession of a firearm by a felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. The sentences will run concurrently. Rouleau was also sentenced to 5 years of supervised release and ordered to pay a $10,000 fine.
On February 26, 2018, the South Mississippi Metropolitan Enforcement Team (MET) executed a search warrant at a residence in Moss Point, where Rouleau was found in a parked vehicle with 99 grams of methamphetamine and two firearms. Rouleau had been selling methamphetamine from that location during the weeks prior to his arrest.
The Jackson County Metropolitan Enforcement Team and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It was prosecuted by Assistant United States Attorney Emily Nobile.
Monongalia County woman admits to child pornography chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Tara Ponceroff, of Morgantown, West Virginia, has admitted today to a child pornography charge, United States Attorney Bill Powell announced.
Ponceroff, age 26, pled guilty to one count of “Aiding and Abetting Production of Child Pornography.” Ponceroff admitted to producing and distributing child pornography involving a minor in December 2017 in Monongalia County.
Ponceroff faces up to 30 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Middle District Prosecutor Recognized with Shield Award for Work on Kadar Bomb Threat CaseRead the Press Release
MACON – The First Assistant United States Attorney for the Middle District of Georgia was recognized for his role in the current investigation and prosecution of a U.S./Israeli man indicted for hate crimes and threats to Jewish institutions at the Anti Defamation League’s (ADL) annual SHIELD Awards, announced Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Peter Leary is one of 23 individuals recognized with a SHIELD award in the Michael Kadar case (to learn more about this case, please visit https://www.justice.gov/usao-dc/pr/usisraeli-man-indicted-hate-crime-and-threats-jewish-community-centers-israeli-embassy).
A SHIELD award is an expression of gratitude for law enforcement who courageously protect citizens and uphold the United States constitution, especially recognizing those who successfully respond to hate crimes, extremism, genocide, terrorism and other malicious, illegal acts that undercut our nation’s freedom. Created by ADL in 2010, the name of the award is an acronym for the core values of the law enforcement profession: Service, Honor, Integrity, Excellence, Leadership and Dedication. Recipients are chosen by a committee of more than 20 agency heads in the Washington, DC region, representing more than 90,000 personnel.
“Our office is extremely proud of Peter Leary, who joins a team from across the nation investigating crimes that terrorize our communities and disturb the freedoms that our nation holds dear,” said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. “I join our entire office serving the citizens of Middle Georgia in saluting Peter and our other dedicated law enforcement partners for this very worthy recognition.”
The SHIELD awards ceremony was held at the National Press Club, in Washington, DC on Wednesday, February 13, 2019. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Michigan Man and His Company Plead Guilty to Illegally Storing Hazardous Waste in Madison Heights, MichiganRead the Press Release
Gary Alfred Sayers and his company, Electro-Plating Services Inc., both pleaded guilty in federal court in Detroit, Michigan, to illegally storing hazardous wastes at the company’s premises in Madison Heights, Michigan, in knowing violation of the Resource Conservation and Recovery Act, the Department of Justice and U.S. Environmental Protection Agency (EPA) announced. Under the terms of the plea agreement, Sayers and Electro-Plating Services each pleaded guilty to a felony charge of illegally storing hazardous waste and will pay the EPA $1,444,510 for its direct costs to clean up the plating facility. The court will decide any term of incarceration and fine at sentencing.
According to the plea agreement, Sayers — who owns and has been the President of Electro-Plating Services from the late 1990s — used various dangerous chemicals in his electroplating business that became hazardous wastes when they no longer fulfilled their industrial purpose. Sayers almost never sent those wastes away for proper disposal, preferring to keep them on site indefinitely.
“Sayers’s knowing, illegal storage of waste cyanide, highly corrosive wastes, toxic chromium waste, and reactive wastes posed a significant danger and threat to nearby communities and the environment. He and his company continued their illegal and poor handling despite many years of warnings by environmental regulators, and they are now being held accountable for their willful refusal to comply with the law,” said Jeffrey Bossert Clark, Assistant Attorney General for the Environment and Natural Resources Division.
“Illegal storing of hazardous waste is a danger not only to the environment but to communities as well,” stated United States Attorney Matthew Schneider. “The actions by this defendant showed a blatant disregard for the law. It is our hope that prosecutions such as this one will serve as a deterrent to others who seek to serve their own interests rather than the safety of the environment.”
“Hazardous wastes pose serious risks to the health of entire communities, so it’s imperative they be handled and disposed of safely and legally,” said EPA Assistant Administrator for the Office of Enforcement and Compliance Assurance Susan Bodine. “EPA and its law enforcement partners are committed to the protection of public health and will continue to pursue those who blatantly undermine those efforts.”
According to the plea agreement, Sayers knew that such storage was illegal because he also managed the company’s former Detroit facility — where he kept hazardous wastes illegally until 2005 — and because the Michigan Department of Environmental Quality (MDEQ) repeatedly sent him warnings. In 2005, Sayers was charged with and pleaded guilty to illegally transporting hazardous wastes. During the ensuing years, MDEQ attempted to get Sayers and Electro-Plating Services to properly manage the amounts of hazardous wastes piling up at the Madison Heights location. MDEQ issued numerous Letters of Warning and Violation Notices to the company regarding its hazardous wastes.
In 2016, MDEQ identified over 5,000 containers of liquid and solid wastes at the Madison Heights location. That same year, the City of Madison Heights revoked the company’s occupancy permit. In January 2017, EPA initiated a Superfund removal action, after determining that the nature and threats posed by the stored hazardous waste required a time-critical response. The cleanup was completed in January 2018.
Sentencing is scheduled for May 16, 2019.
Assistant Attorney General Clark and U.S. Attorney Schneider thanked the U.S. Environmental Protection Agency’s Criminal Investigation Division and the Michigan Department of Environmental Quality for their work in this investigation. The case is being prosecuted by Senior Counsel Krishna Dighe of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division and Assistant U.S. Attorney Sara Woodward of the U.S. Attorney’s Office for the Eastern District of Michigan.
Mexican National Admits to Trafficking Fentanyl into the United StatesRead the Press Release
NEWARK, N.J. – A Mexican man today admitted his role in conspiring to traffic approximately 300 grams of fentanyl into New Jersey, U.S. Attorney Craig Carpenito announced.
Angel Santo Jerez Matos, 60, a/k/a “El Colonel,” pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with conspiracy to possess with intent to distribute more than 40 grams of fentanyl.
According to the documents filed in this case and statements made in court:
Matos was a supplier of fentanyl, heroin, and cocaine to a drug trafficking organization operating in and around New Jersey.
Matos and a member of a New Jersey drug trafficking organization were heard, on intercepted communications, discussing the pricing of “cars,” meaning kilograms of narcotics to be shipped from Mexico into the United States through California. The drugs would then be shipped to New Jersey. Additional communications among members of the New Jersey drug trafficking organization revealed that 300 grams of fentanyl that had originated with Matos in Mexico made its way to users in Newark in May 2017.
The conspiracy charge to which Matos pleaded guilty carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine. Sentencing is scheduled for June 19, 2019.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office Economic Crimes Unit.
U.S. Attorney Carpenito credited the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, with the investigation leading to today’s guilty plea.
This case is being conducted under the auspices of the OCDETF. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Defense counsel: Robert Galuccio Esq., Paterson, New Jersey
Mason City Nurse Sentenced to Three Years in Federal Prison for Stealing Pain Medication for over a Year from PatientsRead the Press Release
An Iowa nurse who stole pain medications from his patients and created false medical records to cover up his thefts was sentenced February 13, 2019, to three years in federal prison.
James Allen Moorehead, age 58, from Mason City, Iowa, received the prison term after an August 13, 2018 guilty plea to one count of acquiring a controlled substance by misrepresentation, fraud, deception, and subterfuge, one count of false statements relating to health care matters, and one count of aggravated identity theft.
In a plea agreement, Moorehead admitted that he was employed at Franklin General Hospital in Hampton, Iowa, as a registered nurse in 2016 and 2017. During this employment, he used patient identities to get controlled substances by accessing their prescribed medication in the hospital’s system and diverting those pain pills to himself. He specifically stole pills containing hydrocodone. Moorehead concealed his scheme by making false entries in medical records that the medications were actually administered to the patients. He would also give his patients Tylenol instead of their prescribed pain medication. Multiple patients reported increased pain during Moorehead’s shifts.
Moorehead had previously surrendered his nursing license under a 2008 Iowa Board of Nursing agreement, after having been terminated from North Iowa Mercy Health Center and Genesis Health Center for stealing opioids. The Iowa Board of Nursing reinstated Moorehead’s nursing license in June 2011, and he began working at Franklin General Hospital in March 2012. He was terminated from that job in March 2017.
Moorehead was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. At Moorehead’s sentencing, Judge Reade called his crimes “outrageous” and found the impact upon his victims to be “significant.” Judge Reade noted that Moorehead had received a second chance from the Iowa Board of Nursing but had reengaged in the same criminal conduct to the detriment of vulnerable people in his care.
Moorehead was sentenced to 36 months’ imprisonment and fined $20,000. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Judge Reade also found Moorehead lied on a court form, under oath, in order to obtain court-appointed counsel, by failing to disclose assets, including bonds and an IRA. Judge Reade ordered Moorehead’s lawyer to itemize all of the lawyer’s costs in defending Moorhead and indicated the Court would order Moorehead to repay all of those costs to the Court at a later date.
Moorehead was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorneys Lyndie M. Freeman and Tim Vavricek and investigated by the Iowa Medicaid Fraud Control Unit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-3021.
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Maryland Man Sentenced to 12 Years in Prison for Federal Drug Trafficking OffenseRead the Press Release
WASHINGTON – Jeremiah Woodfork, 33, of District Heights, Md., has been sentenced to a total of 12 years in prison on a federal cocaine trafficking charge stemming from his apprehension after he fired multiple gunshots from his car at another motorist in Northeast Washington. At the time of his arrest, Woodfork was awaiting sentencing in the Circuit Court for Prince George’s County, Md., for an attempted robbery conviction, for which he failed to appear.
The announcement was made by U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Woodfork pled guilty in September 2017, in the U.S. District Court for the District of Columbia, to one count of unlawful possession with intent to distribute cocaine. He was sentenced on Feb. 13, 2019, by the Honorable Randolph D. Moss. Following completion of his prison term, Woodfork will be placed on three years of supervised release.
According to the government’s evidence, on Jan. 18, 2017, at approximately 9:40 a.m., Woodfork was driving in a teal-colored Mercedes-Benz with his pregnant girlfriend when he cut off another vehicle. The driver of the other vehicle began to follow Woodfork’s vehicle in an effort to obtain the license plate number to call in a report of a reckless driver.
As the other motorist followed Woodfork, Woodfork abruptly stopped the Mercedes in the 1900 block of 3rd Street NE, rolled down the driver’s side window, and fired multiple gunshots at the other vehicle. The driver of the other vehicle called 911 and provided a description of the Mercedes Woodfork was operating.
Officers with the Metropolitan Police Department (MPD) spotted Woodfork’s Mercedes a short time later and attempted to stop him. However, Woodfork fled at a high rate of speed through parts of Northeast and Northwest Washington.
Officers eventually cut Woodfork off near Fifth and T Streets NW, at which time Woodfork crashed the Mercedes into a parked vehicle and fled on foot. Woodfork was apprehended a short distance away. In a search of his pockets, police found cocaine and $1,290. Police also recovered additional quantities of cocaine and marijuana in a vest lying next to the driver’s seat of the Mercedes, as well as a Taurus .22-caliber semi-automatic pistol in an alleyway a short distance from where Woodfork crashed the Mercedes.
At the time of his arrest, Woodfork had failed to appear for sentencing in the Circuit Court for Prince George’s County, Md., after his conviction for attempted robbery, first-degree burglary, and second-degree assault in an unrelated case.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham, commended the work of the MPD officers who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney Steven B. Wasserman and Paralegal Specialist Rommel Pachoca.
Manhattan Doctor Pleads Guilty to Accepting Bribes and Kickbacks from Pharmaceutical Company in Exchange for Prescribing Fentanyl DrugRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that ALEXANDRU BURDUCEA, a doctor who practiced in Manhattan, pled guilty today to conspiracy to violate the Anti-Kickback Statute in connection with a scheme to prescribe Subsys, a potent fentanyl-based spray, in exchange for bribes and kickbacks from Subsys’s manufacturer, Insys Therapeutics (“Insys”). BURDUCEA pled guilty before U.S. Magistrate Judge Kevin Nathaniel Fox. The case is assigned to U.S. District Judge Kimba M. Wood.
U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Alexandru Burducea, a prominent Manhattan pain management doctor, accepted tens of thousands of dollars in speaker fees from Insys in exchange for prescribing large volumes of Insys’s powerful fentanyl-based spray, Subsys. The corrupting influence of money has no place in medicine, especially when it comes to prescribing fentanyl and other dangerous opioids. Like many other doctors around the country, Dr. Burducea is now being held to account for his participation in this corrupt kickback scheme.”
According to the allegations contained in the Indictment against BURDUCEA and filings in related proceedings:
The Insys Speakers Bureau
Subsys, which is manufactured by Insys, is a powerful painkiller approximately 50 to 100 times more potent than morphine. The U.S. Food and Drug Administration (“FDA”) approved Subsys only for the management of breakthrough pain in cancer patients. Prescriptions of Subsys typically cost thousands of dollars each month, and Medicare and Medicaid, as well as commercial insurers, reimbursed prescriptions written by BURDUCEA.
In or about August 2012, Insys launched a “Speakers Bureau,” a roster of doctors who would conduct programs (“Speaker Programs”) purportedly aimed at educating other medical practitioners about Subsys. In reality, Insys used its Speakers Bureau to induce the doctors who served as speakers to prescribe large volumes of Subsys by paying them Speaker Program fees. Speakers were supposed to conduct an educational slide presentation for other health care practitioners at each Speaker Program. In reality, many of the Speaker Programs were predominantly social affairs where no educational presentation about Subsys occurred. Attendance sign-in sheets for the Speaker Programs were frequently forged by adding the names and signatures of medical practitioners who were not present.
BURDUCEA’s Participation in the Scheme
BURDUCEA, a doctor certified in pain management and anesthesiology, was an Assistant Professor of Anesthesiology at a large Manhattan hospital. BURDUCEA also practiced at an anesthesiology and pain management office associated with the hospital. From in or about September 2014 until in or about June 2015, BURDUCEA received approximately $68,400 in Speaker Program fees from Insys in exchange for prescribing large volumes of Subsys. In addition, Insys hired BURDUCEA’s then-girlfriend, now wife, to work as BURDUCEA’s sales representative, and the company paid her large commissions based on the volume of Subsys prescribed by her assigned doctors, including BURDUCEA.
BURDUCEA, who had never prescribed Subsys before in or about September 2014, became approximately the 14th-highest prescriber of Subsys nationally in the second quarter of 2015, accounting for total net sales of the drug of approximately $621,345 in that quarter.
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BURDUCEA, 42, of Little Neck, New York, pled guilty to one count of conspiracy to violate the Anti-Kickback Statute, which carries a maximum sentence of five years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. BURDUCEA is scheduled to be sentenced by Judge Wood on May 22, 2019, at 11:00 a.m.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation and thanked the U.S. Department of Health and Human Services Office of Inspector General for its assistance in the investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Noah Solowiejczyk and David Abramowicz are in charge of the prosecution.
Manhattan Art Gallery Owner Mary Boone Sentenced to 30 Months in Prison for Filing False Tax ReturnsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that Manhattan art gallery owner MARY BOONE was sentenced to 30 months in prison for filing false tax returns as part of a multi-year tax fraud scheme that cost the U.S. Treasury over $3 million. BOONE previously pled guilty to two counts of filing false tax returns in 2011 before U.S. District Judge Alvin K. Hellerstein, who imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As Manhattan art gallery owner Mary Boone has admitted, her personal tax returns were more a work of impressionism than realism. Seemingly in order from afar, the picture Boone painted of her profits, losses, and expenses was, upon closer inspection, a palette of lies and misrepresentations mixed together to avoid paying over $3 million in taxes. Today, Boone was sentenced to 30 months in prison for failing to pay her fair share in taxes.”
According to allegations in the Information to which BOONE pled guilty, court filings, and statements made in public court proceedings:
BOONE, the owner of Mary Boone Gallery (the “Gallery”) in Manhattan, engaged in a multi-year scheme to evade paying millions of dollars in federal income taxes for the calendar years 2009 through 2011. During each of these years, BOONE regularly provided false records to her accountant and thereby caused the accountant to prepare false tax returns for BOONE and the Gallery.
BOONE’s tax fraud scheme had two principal components. First, BOONE converted the Gallery’s funds to her own personal use and then falsely claimed these personal expenses as business deductions. In 2011, BOONE used business funds to pay approximately $1.28 million in personal expenses, including $793,003 to remodel BOONE’s Manhattan apartment; $120,856 for rent and expenses for a second Manhattan apartment; and approximately $300,000 in personal credit card charges. To evade paying federal income taxes on this personal income, BOONE fraudulently characterized these expenses as tax-deductible business expenses on the handwritten check registers that BOONE provided to her accountant. For example, BOONE falsely characterized a $500,000 payment to a contractor for remodeling BOONE’s apartment as a “commission.” In addition, BOONE withdrew over $560,000 in cash from the Gallery’s accounts between 2009 and 2011. BOONE either falsely reported the withdrawals as business payments to a printing company or failed to report them at all.
Second, BOONE artificially inflated the Gallery’s stated expenses and, to a lesser degree, the Gallery’s stated income, in order to fraudulently generate business losses when, in reality, the Gallery was generating profits each year. In furtherance of this aspect of the tax fraud scheme, BOONE engaged in complex financial machinations and further falsification of the check registers that BOONE provided to her accountant. For example, in 2011, BOONE transferred approximately $9.5 million from one business bank account to another, and falsely characterized these transfers as tax-deductible business expenses, such as commissions to artists, on the check registers that Boone provided to the accountant.
In all, BOONE caused the Internal Revenue Service (“IRS”) to incur losses of over $3 million, not including penalties and interest.
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In addition to the prison term, Judge Hellerstein ordered BOONE to serve one year of supervised release, including 180 hours of community service. Boone previously paid court-ordered restitution to the IRS in the amount of $3,097,160, which represents the additional tax due and owing as a result of BOONE’s filing of false individual and corporate income tax returns for calendar years 2009, 2010, and 2011.
Mr. Berman praised the outstanding investigative work of IRS Criminal Investigation in this case.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Olga I. Zverovich is in charge of the prosecution.
Local businessman illegally in United States pleads guilty to bribing IRS agent to fix his federal taxesRead the Press Release
ATLANTA – Local business owner Magdaleno Garcia Alonso has pleaded guilty to attempting to bribe an IRS Revenue Agent to get out of paying his personal and business taxes.
“Garcia attempted to buy his way out of paying his taxes by bribing an IRS Revenue Agent,” said U.S. Attorney Byung J. “BJay” Pak. “As expected, the agent reported his illegal offer – and now Garcia must answer for his crimes.”
“It is the mission of the Treasury Inspector General for Tax Administration (TIGTA) to protect the integrity of the IRS and promote the fair administration of our federal tax system,” said Special Agent in Charge Gary Smith of TIGTA’s Southern Field Division. “TIGTA and our law enforcement partners at the U.S. Attorney’s Office will do everything within our power to ensure those individuals who attempt to bribe IRS agents and corrupt our nation’s tax system will be prosecuted to the fullest extent of the law.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Garcia owned and operated Acworth Georgia Concrete, Inc. Garcia filed tax returns with the Internal Revenue Service (“IRS”) for 2015 and 2016, both as an individual and on behalf of his concrete business. Based on those filings, the IRS notified Garcia that it was auditing his tax returns. As a result of the audit, the IRS calculated that Garcia owed approximately $234,000 in back taxes for his business and approximately $111,000 in back taxes personally.
In mid-September 2018, Garcia offered to pay the IRS Revenue Agent who completed the audit of his tax returns a cash bribe if the agent reduced Garcia’s tax liabilities. The Revenue Agent properly reported Garcia’s bribe offer to the appropriate authorities – and federal law enforcement agents set up an undercover operation to record Garcia.
On September 19, 2018, Garcia met the Revenue Agent at a fast-food restaurant in Cobb County, Georgia. During that recorded meeting, Garcia proposed that if the IRS agent reduced his back taxes from $345,000 to $100,000, then he would pay the IRS agent $30,000 in cash. In fact, Garcia hand wrote an agreement setting out the terms of his bribery scheme, writing that he would “pay [the] IRS $100,000” in back taxes (instead of $345,000) and would give the IRS Agent a bribe payment of “$20,000 now” and “$10,000” in the future. In her undercover role, the IRS agent agreed and signed Garcia’s contract. Garcia then gave the IRS Agent $20,000 in cash. On November 10, 2018, federal law enforcement officers arrested Garcia as he arrived to meet the IRS agent to give her an additional $5,000 cash bribe payment.
Garcia has admitted and agreed that he is a citizen of Mexico, is illegally in the United States, and will consent to being removed from the United States after he completes his prison sentence.
On November 6, 2018, a federal grand jury returned an indictment against Garcia, 50, of Acworth, Georgia, for bribery. Garcia pleaded guilty to that charge via criminal information.
This case is being investigated by the U.S. Department of the Treasury, Treasury Inspector General for Tax Administration (TIGTA).
Assistant U.S. Attorney Jeffrey W. Davis, Public Integrity and Special Matters section chief, is prosecuting the case. The case was previously prosecuted by former Assistant U.S. Attorney Jenny R. Turner.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Kenner Man Pleads Guilty to Violating the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – Garrett Roth, age 26, a resident of Kenner, pleaded guilty Tuesday, February 12, 2019 before United States District Judge Susie Morgan to an indictment charging him with being an unlawful user/drug addict in possession of a firearm, in violation of the Federal Gun Control Act announced U.S. Attorney Peter G. Strasser.
Garrett Roth was charged on August 13, 2018 in a one-count bill of information with possessing a Taurus, 9 mm semi-automatic pistol while being an unlawful user of and addicted to heroin. ROTH faces up to 10 years imprisonment, a fine of up to $250,000 and up to three years of supervised release following any term of imprisonment. The sentencing is set for May 21, 2019 at 2 pm.
This case was brought as 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.
U. S. Attorney Peter Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution is being handled by Assistant United States Attorney David Haller.
Justice Department Requires College Multimedia Rights Provider to Refrain from Unlawful Agreements Not to CompeteRead the Press Release
The Department of Justice announced today that it had reached a settlement with Learfield IMG College to resolve a Department lawsuit alleging that it engaged in unlawful agreements not to compete for multimedia rights contracts for universities’ athletic programs.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to challenge unlawful agreements not to compete. At the same time, the Department filed a proposed settlement that, if approved by the court, would resolve the lawsuit’s alleged competitive harm.
“The illegal agreements not to compete allowed Learfield IMG College to benefit at the expense of the nation’s universities, students, and fans,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Public and private universities rely on competition among multimedia rights providers to provide critical resources to athletic programs, but these agreements lessened that competition and thereby harmed the universities and, ultimately, American students and taxpayers.”
The proposed settlement prohibits agreements not to bid, or to submit joint bids, between Learfield IMG College and any of its competitors in multimedia rights management. The Department has determined that prohibiting this conduct would resolve the competition concerns raised as a result of Learfield IMG College’s actions. The proposed settlement further requires Learfield IMG College to adopt rigorous antitrust compliance and reporting measures to prevent similar anticompetitive conduct in the future. Learfield IMG College has cooperated with the Department’s investigation and will continue to do so as it adopts these measures.
Learfield IMG College, a subsidiary of A-L Tier I LLC, is headquartered in Plano, Texas. Learfield IMG College provides a variety of services to universities, including multimedia rights management, trademark licensing, and ticketing.
Judge Sentences Businessman for Wire Fraud and Aggravated Identity TheftRead the Press Release
In San Antonio this morning, 53-year-old Reynaldo “Sonny” Jesus Peralez, owner and operator of Bohannon Oil Services, L.L.C., was sentenced for scheming to defraud investors of over $3.5 million dollars by routing false and fraudulent investment into trucks and transportation involved in the transport of fracking sands and for stealing the identity of one of his victims to further his fraudulent schemes announced United States Attorney John F. Bash and Federal Bureau of Investigations (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
Chief United States District Judge Orlando L. Garcia sentenced Peralez to 75 months imprisonment followed by a three year supervised release term. Judge Garcia also ordered Peralez to pay $3,599,105 in restitution.
On April 30, 2018, Peralez pleded guilty to one count of wire fraud and one count of aggravated identity theft. By pleading guilty to the charges, Peralez admitted to knowingly engaging in a scheme to defraud investors and knowingly possess and use the identification of another person.
According to court documents, Peralez was the owner and operator of Bohannon Oil Services, L.L.C. Through his company, Peralez made false and fraudulent representations to prospective investors indicating his company needed additional trucks to haul frac sand in order to fulfill contracts he had with oilfield services companies. In fact, Peralez had no such contracts with the companies. Peralez then grossly inflated the value of trucks, which he purchased with investor funds, and kept the remaining funds for his own personal use. Peralez sent investors emails that included false documentation regarding his business dealings. Peralez also made false representations to investors regarding payouts his business was supposedly receiving. Peralez created fictitious businesses that he pretended were selling trucks directly to investors. Peralez also forged the signature of a victim on a title to a truck to further his scheme.
Peralez was taken into custody by the U. S. Marshal Service to begin serving his sentence.
The Federal Bureau of Investigation (FBI) investigated this case. Assistant United States Attorney Joseph Blackwell prosecuted this case on behalf of the Government.
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Jackson Man Pleads Guilty under Project EJECT to Illegally Possessing a FirearmRead the Press Release
Jackson, Miss – Rodrecas Tims, 33, of Jackson, pled guilty today before U.S. District Judge Henry T. Wingate to possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Dana Nichols, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
On November 1, 2018, Jackson Police officers approached Tims as he was walking away from his car in a Jackson parking lot after the officers smelled, and observed in plain view, marijuana rolled into a “cigar” in an ashtray. Tims was found to have two pistols concealed in the waistband of his pants. One of the pistols was stolen.
Tims was previously convicted of armed robbery in 2000 and again in 2005, and unlawfully possessing a firearm in 2005. On November 27, 2018 he was charged in a federal indictment with possession of a firearm by a convicted felon.
Tims will be sentenced on May 15, 2019, by Judge Wingate, and faces a maximum penalty of ten years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions 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.
Indictment: Kansas Couple Crashed Car into Cabela’s to Steal GunsRead the Press Release
KANSAS CITY, KAN. – A man and a woman from Kansas were indicted Wednesday on federal charges of crashing a car into a Cabela’s store and stealing guns, U.S. Attorney Stephen McAllister said.
Kyle Mendez, 29, Kansas City, Kan., and Brenda Tosh, 27, Kansas City, Kan., were charged with one count of conspiring to steal guns from a federally licensed firearms dealer. In addition, Mendez was charged with two counts of unlawful possession of firearms by a convicted felon and one count of transporting a stolen 2014 Dodge Challenger across state lines. The crimes are alleged to have occurred Nov. 6, 2018, in Kansas City, Kan.
The indictment alleges the defendants entered the Cabela’s store in Kansas City, Kan., by crashing a car through an exterior door. Mendez smashed through a locked door to get into the store’s Gun Library. The defendants took long guns from the firearms section of the store and placed them into a shopping cart. The guns included two 12-gauge shotguns, a .22-caliber rifle, a .308-caliber rifle and a .223-caliber rifle.
Before the defendants could get away with the guns, however, law enforcement officers arrived at the store. Tosh was arrested at the scene. Mendez fled from the store and was arrested later.
Upon conviction, the crimes carry the following penalties:
Unlawful possession of firearms by a felon (count one and count two): Up to 10 years in federal prison and a fine up to $250,000.
Theft from a federally licensed firearms dealer (count three): Up to five years and a fine up to $250,000.
Transporting a stolen car (count four): Up to 10 years and a fine up to $250,000.
The Kansas City, Kan., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
OTHER INDICTMENTS
Salvador Veleta-Sinola, 33, Kansas City, Kan., is charged with assaulting law enforcement officers who were attempting to arrest him.
Veleta-Sinola is charged with two counts of assaulting law enforcement officers with a dangerous weapon and one count of assaulting another officer.
The indictment alleges he bit an FBI agent and tried to stab him with a ballpoint pen. In addition, the defendant is alleged to have attacked two members of an FBI task force.
The crimes are alleged to have occurred Jan. 3, 2019 in Wyandotte County, Kan.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000 on the two counts of attacking officers with a dangerous weapon and up to eight years and a fine up to $250,000 on the other assault charge. The FBI investigated. U.S. Attorney Stephen McAllister is prosecuting.
Cristian Maese-Solano, 22, Kansas City, Kan., is charged with one count of unlawful possession of a firearm by a convicted felon. The crime is alleged to have occurred Nov. 12, 2018, in Wyandotte County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Trent Krug is prosecuting.
Ramon Alejandro Magallanes-Carta, 24, who is in custody, is charged with unlawfully re-entering the United States after being deported. He was found Jan. 16, 2019, in Hutchinson, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Department of Homeland Security investigated. Assistant U.S. Attorney Trent Krug is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment Unsealed Charging Three with Operating a Fictitious Immigration Law Firm That Targeted and Defrauded Undocumented Aliens, Family Members, and Other VictimsRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced the unsealing of an Indictment dated February 7, 2019, charging ESTEBAN RAMIREZ, III (“RAMIREZ”), age 26, HEATHER TOLSON (“TOLSON”), age 26, JOSE FERNANDEZ MOREL, a/k/a Benny Veintitres, a/k/a Robert McCane, a/k/a Domi (“FERNANDEZ”), age 28, with one (1) count of Conspiracy to Commit Wire Fraud in violation of Title 18, United States Code, Section 371 and three (3) counts of Wire Fraud in violation of Title 18, United States Code, Section 1343. RAMIREZ and TOLSON are residents of Lorain, OH and FERNANDEZ, formerly a resident of Lorain, OH, now lives in Santo Domingo, in the Dominican Republic after he was ordered removed from the United States by immigration officials in 2016.
Conspiracy to Commit Wire Fraud carries a maximum sentence of five (5) years and Wire Fraud carries a maximum sentence of twenty (20) years. Upon release from prison, all defendants also face a term of supervised release up to (3) three years, and/or a fine of $250,000 or the greater of twice the gross gain to each defendant or twice the gross loss to any person under Title 18, United States Code, Section 3571.
According to the Indictment, in the beginning of February 2017, FERNANDEZ devised a scheme to defraud by fraudulently representing himself as an immigration attorney. Specifically, FERNANDEZ and other coconspirators acting at his direction, created the fictitious law firm of “Micheal (sic) Browns Immigration Attorneys” with an address of 4207 Parliament Drive, Alexandria, LA 71303. FERNANDEZ enlisted the assistance of RAMIREZ and TOLSON to receive funds from various individuals who were victims of FERNANDEZ’s scheme. RAMIREZ and TOLSON agreed to wire via Western Union the fraudulently obtained funds they received to FERNANDEZ in the Dominican Republic. Part of their agreement was that FERNANDEZ would split these funds with RAMIREZ and TOLSON.
During the scheme, FERNANDEZ fraudulently represented himself as an attorney named “Robert McCane” and FERNANDEZ, RAMIREZ, and TOLSON represented themselves as employees with the “Micheal Browns Immigration Attorneys” law firm. According to the Indictment, FERNANDEZ, RAMIREZ, and TOLSON represented to Individual A’s family members that “McCane” was an attorney associated with the “Micheal Browns Immigration Attorneys” law firm located in Alexandria, LA which also had offices in New York and Ohio. The Indictment alleges that FERNANDEZ, RAMIREZ, and TOLSON utilized various email accounts to communicate with Individual A’s family members in an effort to promote the scheme. For example, FERNANDEZ, RAMIREZ, and TOLSON created a “Legal Services Agreement” that was emailed to Individual A’s family members which referenced a $4,980.00 fee and a $980.00 initial deposit for “attorney’s fees and cost incurred by clients.” FERNANDEZ, RAMIREZ, and TOLSON obtained money from Individual A’s family members under the guise of collecting a retainer to provide legal services for Individual A and under the pretense of posting a bond to secure the release of Individual A from immigration custody.
The Indictment details how TOLSON opened a bank account at a Chase Bank branch in Lorain, OH in order to receive fraudulently obtained payments from Individual A’s family members and how FERNANDEZ, RAMIREZ, and TOLSON utilized various Chase Bank locations in Lorain, OH and Western Union agent branches to conduct cash transactions to withdraw payments from Individual A’s family members. Further, the Indictment describes how RAMIREZ and TOLSON utilized Western Union locations to wire fraudulently obtained payments to FERNANDEZ in the Dominican Republic. The Indictment also alleges that FERNANDEZ, RAMIREZ, and TOLSON falsely represented themselves as employees of the U.S. Department of Homeland Security.
On February 11, 2019, Special Agents with the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”) arrested TOLSON and RAMIREZ in Ohio. On February 11, 2019, TOLSON and RAMIREZ appeared before a federal magistrate judge in Ohio who released TOLSON on a $10,000 bond and with the condition that she appear in U.S. District Court for the Eastern District of Louisiana on February 25, 2019. RAMIREZ was detained pending a detention hearing scheduled for February 13, 2019, in federal court in Toledo, Ohio. The U.S. Attorney’s Office for the Eastern District of Louisiana and HSI are working with the U.S. Department of Justice’s Office of International Affairs and the U.S. Department of State to extradite FERNANDEZ from the Dominican Republic.
U.S. Attorney Peter G. Strasser praised the work of Homeland Security Investigations. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
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Indiana Man Charged with Sexual Exploitation Involving a Minor from Madera CountyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Scott Matthew Trischler, 24, of Ft. Wayne, Indiana, charging him with one count of sexual exploitation of a minor, one count of enticement of a minor, and one count of receipt of child pornography, U.S. Attorney McGregor W. Scott announced.
According to a criminal complaint, Trischler developed a relationship with a minor in Madera County while playing an online game with her. Trischler then communicated with the minor through Kik Messenger, Skype, TextNow, and Google Hangouts. He convinced her to create and transmit to him images of herself engaging in sexually explicit conduct from approximately December 2017 through March 2018.
Trischler was arrested in Ft. Wayne, Indiana on February 5, 2019, and he has been ordered detained at least through his next court appearance there on March 5, 2019.
This case is the product of an investigation by the Fresno, California and Ft. Wayne, Indiana offices of the Federal Bureau of Investigation as well as the Madera County Sheriff’s Office. Assistant U.S. Attorney David Gappa is prosecuting the case.
If convicted, Trischler faces the following possible penalties: a mandatory minimum term of 15 years and a maximum of 30 years in prison for the sexual exploitation count; a mandatory minimum of 10 years to a maximum of life in prison for the enticement count; and a potential five to 20 years in prison for the one count of receipt of child pornography. For all counts there is a potential $250,000 fine and a lifetime term of supervised release. 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Haughville drug trafficking organization dismantledRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler today announced federal criminal charges against 24 individuals for a methamphetamine, heroin and cocaine distribution conspiracy and a federal firearms related charge.
On February 13, 2019, agents and officers from various law enforcement agencies executed arrest and search warrants in numerous locations centralized to the Haughville community in Indianapolis, Indiana. This operation led to the arrest of 22 individuals. During the investigation approximately 40 firearms, $155,000 in currency, 3 vehicles, and quantities of heroin, fentanyl, methamphetamine, cocaine and marijuana were seized.
Those charged include:
Jshaun Trice, 31, Indianapolis
Terrence Stum, 35, Indianapolis
Demetrick Holder, 20, Indianapolis
Darryl Allen, 35, Indianapolis
Eric Bard, 33, Indianapolis
Dustin Manuel, 30, Indianapolis*
Kelvin Washington, 34, Indianapolis
Gerald Hoskins, 23, Indianapolis
Devin Jones, 28, Indianapolis*
Adrian Myles, 40, Indianapolis
Christopher Hill, 30, Indianapolis
Robert Hadley, 48, Indianapolis
Danny Jenkins, 47, Indianapolis
Antonio McClure, 37, Indianapolis*
James Gibson, 33, Indianapolis
Carlo Payne, 39, Indianapolis
Thomas Acord, 30, Bloomington
Alton Brown Sr., 53, Indianapolis*
Steven Savage, 29, Indianapolis
Derrick O’Connor, 52, Indianapolis
Melissa Kidwell, 39, Indianapolis
Jacqueline Huffman, 40, Indianapolis
Jacob Jones, 30, Indianapolis
Sheridan Sisk, 37, Indianapolis
*Remains a fugitive
According to the indictment, Jshaun Trice and Terrence Stum directed the activities of a methamphetamine, heroin and cocaine trafficking organization in Indianapolis, Indiana. Jshaun Trice, Terrence Stum, Demetrick Holder and Gerald Hoskins coordinated their activities by receiving methamphetamine, heroin and cocaine from diverse sources, sharing controlled substances with each other, and distributing the controlled substances to customers. Individuals in the conspiracy distributed methamphetamine, heroin and cocaine on the 700 block of Arnolda Avenue, in the Haughville neighborhood in Indianapolis, Indiana, among other locations.
“Utilizing the Organized Crime Drug Enforcement Task Force model, the Justice Department works collaboratively to target, investigate and prosecute organizations engaged in dangerous and harmful drug trafficking activity in our community,” said Josh Minkler. “This year, the United States Attorney’s Office created a standalone OCDETF Unit led by Senior Litigation Counsel Bradley A. Blackington to tackle and unearth individuals and organizations operating to the detriment of communities like Haughville. The challenges we face are not insurmountable when we pair criminal prosecution as a deterrent with wraparound services like those being offered by the City in this instance.”
This case was investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco and Firearms, Indianapolis Metropolitan Police Department, Marion County Sheriff’s Department, United States Postal Inspection Service, Internal Revenue Service Criminal Investigation Division, and the Indiana State Police.
“These arrests disrupted a violent drug trafficking ring and sent a clear message – if you are involved in illegal drug activity and violent crime in our city you will wake up one morning with law enforcement at your door. This case is at the heart of our collective mission to rid our communities of violent drug offenders and the destruction their activities create,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “The FBI, along with our federal, state and local partners, remains strongly committed to identifying and investigating those responsible for harming our communities.”
“Our community and the Haughville neighborhood deserve better than to be re-victimized by the crime and violence they have endured,” said Mayor Joe Hogsett. “This means the illicit economy and criminal infrastructure that existed here must be replaced with hope and opportunity. And so our Office of Public Health and Safety will be convening community and City resources to help fill the needs of a neighborhood in recovery.”
“The individuals removed from our community account for thousands of reported violent crimes. These arrests will reduce not only the amount of illicit drugs in our city, but also the violence that accompanies the drug trade,” said IMPD Chief Bryan Roach. “To break the cycle of drug-related crime and violence, we must fill the economic vacuum left behind, which is why the wraparound services that will be available are critically important to the safety of our city. The dedicated women and men of the IMPD will continue to work alongside our local and federal partners to improve the safety of our neighborhoods and the quality of residents’ lives.”
“As violence and drug trafficking tactics evolve, so does the strategy we implement with federal, state, and local law enforcement agencies as well as our community partners,” Marion County Prosecutor Terry Curry stated. “We are your neighbors, and we are committed to improving public safety in every neighborhood of our county.”
“This is a great example of the synergy that can be gained when law enforcement pools resources and works together to bring down criminal drug organizations,” said Inspector in Charge Patricia Armstrong of the Detroit Division, U.S. Postal Inspection Service.
Gabriel Grchan, Special Agent in Charge of IRS Criminal Investigation said, “IRS Criminal Investigation is charged with disrupting the money flow of criminal organizations. Our agents trace criminal proceeds and work to deprive criminals of their illicit spoils. Together with our OCDETF partners we dismantle illegal drug and money laundering enterprises that try to take root in Indiana.”
Indiana State Police Superintendent Doug Carter said, “Partnerships like this are what put criminal organizations out of business and their operators in prison.” Carter continued, “For those who are addicted, there is help, but for those who are contributing to - and profiting from - the addiction and misery of others; we have prison cells waiting.”
An indictment is merely a charge and not evidence of guilt. All defendant are considered innocent until proven guilty in federal court.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. The Organized Crime Drug Enforcement Task Force (OCDETF) is utilized to target, investigate, and prosecute more violent criminal organizations, with a goal of detaining and sentencing more violent offenders to significant prison terms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.1
Hartford Resident Charged with Child Exploitation OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an indictment charging MICHAEL SZWARC, 31, last residing in Hartford, with one count of receipt of child pornography.
The indictment was returned on February 5, 2019. Szwarc, who had been detained in state custody since September 8, 2018, appeared yesterday before U.S. Magistrate Judge Robert A. Richardson in Hartford and entered a plea of not guilty to the charge. He is detained pending trial.
As alleged in the indictment, between June and September 2018, Szwarc received images of minors engaged in sexually explicit conduct.
The indictment further alleges that, in October 2013, Szwarc was convicted in Connecticut Superior Court of possession of child pornography.
If convicted of the federal charge, due to his alleged prior conviction, Scwarc faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 40 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Hartford Police Department, with the assistance of the Office of Adult Probation. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Gregorio Blas Cruz Jr. Sentenced to Prison in Drug CaseRead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Gregorio Blas Cruz, Jr., age 50, originally from Mongmong, Guam, was sentenced on February 13, 2019, in two cases involving Possession with Intent to Distribute Methamphetamine Hydrochloride, in violation of 21 U.S.C. § 841(a)(1). The District Court sentenced Cruz to concurrent 70-month terms of imprisonment, to be followed by three years of supervised release. The Court also ordered Cruz to pay a mandatory $200 assessment fee. In addition, defendants who are convicted of a federal drug offense may no longer qualify for certain federal benefits.
On July 8, 2015, Cruz pled guilty to possessing methamphetamine with intent to distribute, in a case involving approximately 33 grams of ice and the seizure of $3,390 in U.S. currency. On April 21, 2016, while on pretrial release for that case, Cruz was arrested again for a similar offense. His second case involved 292 grams of methamphetamine and the seizure of over $1,000 in U.S. currency. Cruz had prior convictions in the Superior Court of Guam for family violence, theft and drugs.
The government requested a significant downward departure in Cruz’s sentence due to his providing law enforcement with information that resulted in the seizure of approximately ten pounds of methamphetamine. A DEA Task Force Officer from the Judiciary of Guam, Probation Office, testified at sentencing that the street value of the ten pounds of methamphetamine was over two million dollars. Due to Cruz’s 25-year drug addiction, the Court recommended his enrollment in a Bureau of Prisons drug treatment program while incarcerated.
The Drug Enforcement Administration conducted the investigation, in conjunction with Judiciary of Guam, Probation Office and Guam Police Department. The case was prosecuted by Belinda Alcantara, an Assistant U.S. Attorney in the District of Guam.
Grayson County Man Sentenced to 10 Years in Federal Prison for $2.1 Million Bank Fraud OffenseRead the Press Release
SHERMAN, Texas – A 38-year-old Sherman man has been sentenced to federal prison for bank fraud in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown.
Michael Shelley pleaded guilty on July 18, 2018, to bank fraud and was sentenced to 120 months in federal prison on Feb. 7, 2019, by U.S. District Judge Amos Mazzant. Shelley was also ordered to pay restitution in the amount of $2,189,073 to Lone Star Agricultural Credit Association (LSAC).
According to information presented in court, Shelley engaged in bank fraud while employed as a licensed loan officer at LSAC. Shelley devised and executed a scheme to defraud LSAC of millions of dollars through loan manipulation. Without LSAC’s knowledge or authorization, Shelley fabricated loan documents, advanced funds to fictitious borrowers, and manipulated collateral and loan interest rates. He made unauthorized fund transfers from fictitious borrowers to existing LSAC customers, all to the detriment of LSAC. Shelley’s criminal conduct involved nearly $9 million in LSAC loans and funds.
At sentencing, counsel for the victim, LSAC, explained the expansive financial harm Shelley’s fraud caused to both LSAC and its borrower-members. Due to Shelley’s position of authority within the bank, LSAC had to expend significant resources to unwind and uncover the full breadth and impact of his fraud. According to LSAC, the impact of Shelley’s fraud will be felt for years to come.
“Employee theft affects many businesses, and it can be devastating to a company,” said U.S. Attorney Joe Brown. “Unfortunately, this man had access to a whole lot of money, and he took advantage of that, and took advantage of the bank. It doesn’t matter whether it’s stolen with a gun or computer, it hurts just as bad to the victim.”
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Christopher A. Eason, with the assistance of Assistant U.S. Attorney Robert Austin Wells.
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Former Grain Elevator Manager Pleads Guilty to Mail Fraud and Tax EvasionRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of JEROME ROBERT HENNESSEY, 56, to one count of mail fraud and one count of tax evasion. HENNESSEY, who was charged via felony information on December 18, 2018, entered his guilty plea earlier today before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed in court, from 2003 through September 2018, HENNESSEY, the former manager of Ashby Farmers’ Co-Operative Elevator Company (“the Co-op”), was responsible for overseeing the day-to-day activities of the Co-op, controlling the bank accounts and obtaining loans for the business. Using his position and his control over the Co-op’s bank accounts, HENNESSEY wrote checks to himself and to third parties for, among other things, renovations and improvements to his residence and a cabin, the purchase of real estate, the purchase of all-terrain vehicles, outstanding credit card balances, property taxes, expensive hunting trips, and taxidermy services.
According to the defendant’s guilty plea and documents filed in court, HENNESSEY attempted to disguise the payments by writing descriptions on the carbon copies of the checks falsely indicating that the checks were for the purchase of corn and soybeans or other operating expenses and supplies. HENNESSEY then provided the carbon copies to the Co-op’s bookkeeper, thus ensuring that the Co-op’s accounting records would give the false impression that the funds HENNESSEY had taken had been used for legitimate purposes. In order to make sure that the Co-op had sufficient funds to cover its legitimate expenses and to cover the millions of dollars that HENNESSEY stole, HENNESSEY obtained a line of credit for more than $7 million. In total, HENNESSEY stole approximately $5,338,922.21.
This case is the result of an investigation conducted by the Internal Revenue Service-Criminal Investigation Division, the Grant County Sheriff’s Office, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney John Kokkinen is prosecuting the case.
Defendant Information:
JEROME ROBERT HENNESSEY, 56
Dalton, Minnesota
Convicted:
- Mail Fraud, 1 count
- Income Tax Evasion, 1 count
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Former Federal Employee and Former Director of Defense Contractor Charged in Fraud SchemeRead the Press Release
NEWARK, N.J. – A former civilian employee at Picatinny Arsenal and a former official of a defense contractor with a branch office in Lake Hopatcong, New Jersey, have been charged with conspiracy to commit wire fraud, U.S. Attorney Craig Carpenito announced today.
Robert Dombroski, 63, of Branchville, New Jersey, is charged by complaint with one count of conspiracy to commit wire fraud and four counts of making false statements. Indra Nayee, 51, of Metuchen, New Jersey, is also charged by complaint with one count of conspiracy to commit wire fraud. Both men are scheduled to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to documents filed in this case and statements made in court:
Dombroski worked at Picatinny Arsenal for over 30 years, retiring as a federal employee in 2015. He was then hired as a civilian, serving as a Senior Products Manager for advanced weapons. Prior to retiring, Dombroski held the position of senior associate for advanced weapons and worked on and supervised contract projects with a defense contractor, identified in court papers as “Company A,” which is headquartered in Arlington, Virginia, and has a branch office in Lake Hopatcong, New Jersey. In that capacity, Dombroski had influence over the awarding of government contracts to this company and influenced how the money was allocated.
Nayee was the former Picatinny Arsenal division director of Company A, and had direct oversight and control over how his company executed the government contracts it had with Picatinny Arsenal. He supervised and directly managed all branch employees. Nayee was the primary point of contact at Company A for Picatinny Arsenal employees, including Dombrowski.
From 2010 through 2018, Dombroski and Nayee conspired with other federal employees at Picatinny Arsenal and employees of Company A to seek and accept gifts and other items of value, such as Apple products, luxury handbags, Beats headphones, and tickets to a luxury sky box at professional sporting events, valued at $150,000 to $250,000, in exchange for government contracts and other favorable assistance for Company A at Picatinny Arsenal.
The count of conspiracy to commit wire fraud carries a maximum penalty of 20 years in prison. The false statement charges each carry a maximum penalty of five years in prison.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge L. Scott Moreland, with the ongoing investigation.
The government is represented by Senior Trial Counsel Margaret Ann Mahoney and Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office’s National Security Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Dombrowski: John Reilly Esq.,
Nayee: Mauro Wolf Esq., New YorkFormer Cheerleading Coach Who Committed Sexual Assault on Cruise Ship Found Guilty of Two FeloniesRead the Press Release
LOS ANGELES – A former cheerleading coach has been found guilty of two federal felony charges for sexually assaulting an intoxicated woman on a cruise ship bound from Long Beach to Ensenada, Mexico during the summer of 2015.
Anthony Paul De La Torriente, 30, of Simi Valley, on Wednesday was found guilty by a jury of one count of sexual abuse and one count of abusive sexual contact. In reaching the verdict, the jury found that De La Torriente knew the victim was physically unable to decline participation or she had communicated unwillingness to engage in the sexual act.
United States District Judge Dale S. Fischer has scheduled a June 10 sentencing hearing, where De La Torriente faces a statutory maximum sentence of life in federal prison.
During the one-week trial, prosecutors presented evidence that De La Torriente volunteered to stay alone in the victim’s cabin with the victim, whose severe intoxication from a daytime excursion in Ensenada had worried their colleagues, while the colleagues got food on the cruise ship. Once alone with the victim, De La Torriente sexually assaulted her. When their colleagues returned, they found the victim’s cabin door had been double-locked from the inside. When De La Torriente eventually unlocked the door and allowed their colleagues inside, the victim identified De La Torriente as her assailant.
The victim reported the assault to the cruise ship’s medical and security staff. Swabs taken from the victim’s body matched De La Torriente’s DNA while swabs taken from inside and outside of his underwear matched the victim’s DNA.
This case was investigated by the Federal Bureau of Investigation.
This case is being prosecuted by Assistant United States Attorneys Cassie D. Palmer of the Public Corruption and Civil Rights Section and Jeffrey M. Chemerinsky of the Violent and Organized Crime Section.
Florida Compounding Pharmacy and Its Owners to Pay at Least $775,000 to Resolve False Claims Act AllegationsRead the Press Release
The Department of Justice announced today that Vital Life Institute LLC (formerly known as AgeVital Pharmacy LLC), located in Sarasota, Florida, and owners Jenny and William Wilkins have agreed to pay at least $775,000 to resolve claims that they violated the False Claims Act by engaging in an illegal kickback scheme to induce the referral of compounded drug prescriptions for TRICARE and Medicare beneficiaries. AgeVital and the Wilkinses have agreed to pay additional amounts in the event certain contingencies are triggered.
The settlement resolves allegations that AgeVital, at the direction of the Wilkinses, paid kickbacks to a third-party marketing company to solicit prospective patients for compounded drug prescriptions regardless of patient need. The marketing company arranged for prescribers to sign those prescriptions, which were then referred to AgeVital to be filled. The kickbacks to the marketing entity allegedly consisted of a substantial share of the pharmacy’s TRICARE and Medicare reimbursements. The Anti-Kickback Statute prohibits, among other things, the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal health care program. Claims submitted to federal health care programs in violation of the Anti-Kickback Statute can subject the violator to liability under the False Claims Act.
“The Department will continue to hold accountable providers that pay illegal kickbacks to induce patient referrals,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Kickback schemes undermine public trust in our health care system and lead to unnecessary health care costs at taxpayers’ expense.”
“We will not tolerate those who profit at the expense of taxpayers by entering into illegal kickback arrangements,” said U.S. Attorney for the Middle District of Florida Maria Chapa Lopez. “Our office is committed to holding individuals accountable for corporate malfeasance.”
“These prescriptions were ordered to increase profits, not improve the healthcare of patients. Healthcare providers who satiate their greed at the expense of the American taxpayer will not be tolerated,” said Shimon R. Richmond, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (OIG). “This settlement demonstrates the resolve of OIG and our law enforcement partners to root out fraud, waste, and abuse in our healthcare system.”
“I thank the Department of Justice and the U.S. Attorney for their efforts throughout this investigation,” said Vice Admiral Raquel Bono, director of the Defense Health Agency. “American service members, veterans, and their families appreciate that the Department of Justice works diligently to safeguard their health benefit. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies, to investigate all those who participate in fraudulent practices.”
The settlement resolves a lawsuit filed in federal court in Tampa, Florida, by Manfred Knopf, who allegedly received unwanted compounded medications from AgeVital that were billed to Medicare. That lawsuit was filed under the qui tam or whistleblower provisions of the False Claims Act. The Act permits private parties to bring a lawsuit on behalf of the United States for false claims and to share in any recovery. Mr. Knopf will receive at least $139,500 of the settlement.
The United States’ investigation of this matter was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Florida, the Federal Bureau of Investigation, the Defense Criminal Investigative Service, and the U.S. Department of Health and Human Services Office of Inspector General.
The lawsuit is captioned United States ex rel. Knopf v. AgeVital Pharmacy, LLC et al., Case No. 8:15-cv-2591-T-36JSS (M.D. Fla.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Florida Compounding Pharmacy and Its Owners to Pay at Least $775,000 to Resolve False Claims Act AllegationsRead the Press Release
Tampa, FL – The Department of Justice announced today that Vital Life Institute LLC (formerly known as AgeVital Pharmacy LLC), located in Sarasota, Florida, and owners Jenny and William Wilkins have agreed to pay at least $775,000 to resolve claims that they violated the False Claims Act by engaging in an illegal kickback scheme to induce the referral of compounded drug prescriptions for TRICARE and Medicare beneficiaries. AgeVital and the Wilkinses have agreed to pay additional amounts in the event certain contingencies are triggered.
The settlement resolves allegations that AgeVital, at the direction of the Wilkinses, paid kickbacks to a third-party marketing company to solicit prospective patients for compounded drug prescriptions regardless of patient need. The marketing company arranged for prescribers to sign those prescriptions, which were then referred to AgeVital to be filled. The kickbacks to the marketing entity allegedly consisted of a substantial share of the pharmacy’s TRICARE and Medicare reimbursements. The Anti-Kickback Statute prohibits, among other things, the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal health care program. Claims submitted to federal health care programs in violation of the Anti-Kickback Statute can subject the violator to liability under the False Claims Act.
“The Department will continue to hold accountable providers that pay illegal kickbacks to induce patient referrals,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Kickback schemes undermine public trust in our health care system and lead to unnecessary health care costs at taxpayers’ expense.”
“We will not tolerate those who profit at the expense of taxpayers by entering into illegal kickback arrangements,” said U.S. Attorney for the Middle District of Florida Maria Chapa Lopez. “Our office is committed to holding individuals accountable for corporate malfeasance.”
“These prescriptions were ordered to increase profits, not improve the healthcare of patients. Healthcare providers who satiate their greed at the expense of the American taxpayer will not be tolerated,” said Shimon R. Richmond, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (OIG). “This settlement demonstrates the resolve of OIG and our law enforcement partners to root out fraud, waste, and abuse in our healthcare system.”
“I thank the Department of Justice and the U.S. Attorney for their efforts throughout this investigation,” said Vice Admiral Raquel Bono, director of the Defense Health Agency. “American service members, veterans, and their families appreciate that the Department of Justice works diligently to safeguard their health benefit. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies, to investigate all those who participate in fraudulent practices.”
The settlement resolves a lawsuit filed in federal court in Tampa, Florida, by Manfred Knopf, who allegedly received unwanted compounded medications from AgeVital that were billed to Medicare. That lawsuit was filed under the qui tam or whistleblower provisions of the False Claims Act. The Act permits private parties to bring a lawsuit on behalf of the United States for false claims and to share in any recovery. Mr. Knopf will receive at least $139,500 of the settlement.
The United States’ investigation of this matter was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Florida, the Federal Bureau of Investigation, the Defense Criminal Investigative Service, and the U.S. Department of Health and Human Services Office of Inspector General.
The lawsuit is captioned United States ex rel. Knopf v. AgeVital Pharmacy, LLC et al., Case No. 8:15-cv-2591-T-36JSS (M.D. Fla.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Five Men Charged in Syracuse Heroin Trafficking ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Four men from Syracuse and one from New York City (the Bronx) have been charged with operating a heroin distribution ring from which investigators seized over 62,000 individual bags of heroin, totaling in excess of two kilograms, announced United States Attorney Grant C. Jaquith and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division.
The following men are charged in two federal criminal complaints with being members of a conspiracy to possess with intent to distribute and distribution of heroin and fentanyl:
- Gavin Ballog, 29, Syracuse, New York
- Yan Morales, 29, Syracuse, New York
- Brian Morales, 28, Syracuse, New York
- Juan Santa, 27, Syracuse, New York
- Jesus Manuel Lopez Mendez, 34, New York City (the Bronx)
Defendants Ballog, Y. Morales, B. Morales, and Santa were arrested and charged on February 2, 2019. Jesus Manuel Lopez Mendez was in the custody of immigration authorities when he was arrested and charged today. The criminal complaints allege the seizure of over 62,000 individual bags of heroin, totaling in excess of two kilograms, and two handguns, as part of an investigation utilizing court-ordered wiretaps. All five defendants have appeared in federal court in Syracuse and are held without bail. The charges filed against the five men carry mandatory minimum sentences of ten years and maximum sentences of life in prison, a fine of up to $10,000,000.00, and a term of supervised release of at least 5 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the complaints are merely accusations. The defendants are presumed innocent unless and until proven guilty.
This case is being investigated by U.S. Drug Enforcement Administration, the New York State Police, and the City of Auburn (New York) Police Department, and Investigators from the Onondaga County District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Carla B. Freedman.
Financial Advisor Sentenced to 28 Months in Prison for Misappropriating Funds from NFL PlayersRead the Press Release
GREENSBORO, N.C. - A Florida financial advisor who provided financial services to professional athletes was sentenced to prison today for conspiring to commit wire fraud and money laundering, announced Matthew G.T. Martin, U.S. Attorney for the Middle District of North Carolina.
Jason Christopher JERNIGAN, age 44, a resident of Miramar, Florida, was sentenced to 28 months in prison by U.S. District Court Judge N. Carlton Tilley, Jr. of the Middle District of North Carolina.
According to court documents, JERNIGAN, along with his business partner Michael Rowan, operated Capital Management Wealth Advisors, Inc. (“CMG”) and APS Management, LLC (“APS”) in High Point, North Carolina. Through CMG and APS, JERNIGAN and Rowan provided financial and investment services to professional athletes, including players in the National Football League. From 2008 through 2014, JERNIGAN used his access to his clients’ bank accounts to convert and misappropriate approximately $1.48 million.
On March 7, 2018, JERNIGAN pleaded guilty to one count of conspiracy to commit wire fraud and money laundering. JERNIGAN’s business partner, Michael Rowan, was sentenced in April 2017 to 65 months in prison for wire fraud and filing a false 2011 tax return.
In addition to the term of imprisonment imposed, JERNIGAN was order to serve three years of supervised release and to pay restitution in the amount of $1,290,980 to the victims/clients.
U.S. Attorney Martin stated, “Fighting fraud is a priority of our office. I commend the excellent work of the special agents of IRS-Criminal Investigation and US Postal Inspection Service who investigated the case, and Assistant United States Attorney Frank Chut and Trial Attorney Mara Strier of the Tax Division, who prosecuted this case.”
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Federal Jury Convicts Mayor of Portage, Ind., on Corruption Charge for Pocketing a Bribe to Influence City ContractsRead the Press Release
CHICAGO — A federal jury today convicted the mayor of Portage, Ind., on a corruption charge for soliciting and pocketing a bribe in exchange for influencing the awarding of city contracts.
The jury in U.S. District Court in Hammond, Ind., convicted JAMES SNYDER, 38, of Portage, Ind., on one count of bribery and one count of obstruction of internal revenue laws. The jury acquitted Mayor Snyder on one other bribery count. U.S. District Judge Joseph S. Van Bokkelen set sentencing for May 14, 2019. The bribery conviction is punishable by up to ten years in prison, while the obstruction count is punishable by up to three years.
The verdict was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Grant Mendenhall, Special Agent-in-Charge of the Indianapolis office of the Federal Bureau of Investigation; and Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago. The Indiana State Police provided valuable assistance. The government was represented at trial by Assistant U.S. Attorneys Philip C. Benson and Jill R. Koster of the U.S. Attorney’s Office for the Northern District of Indiana. The prosecutors were supervised by the U.S. Attorney’s Office for the Northern District of Illinois after recusals by supervisory personnel from the Northern District of Indiana.
Evidence at trial revealed that from 2012 to 2014, Mayor Snyder corruptly solicited and agreed to accept a $13,000 check to influence the awarding of a series of city contracts, including more than $1.1 million in contracts approved by the Portage Board of Works.
The obstruction charge involved a scheme to impede the IRS’s collection of personal taxes owed by Mayor Snyder, and the collection of payroll taxes owed by Mayor Snyder’s mortgage business – Portage, Ind.-based First Financial Trust Mortgage LLC. While the IRS was attempting to collect these tax debts, Mayor Snyder secretly diverted funds from the mortgage business to a sole proprietorship that he created. Mayor Snyder submitted forms to the IRS that failed to disclose, among other things, the existence of the sole proprietorship and its bank account.
Federal Court Sentences California-Based Drug Trafficking Head to 42 Years in PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN – United States Attorney Andrew Birge announced today that Alex Alberto Castro received 42 years in prison for conspiring to distribute heroin and cocaine. A federal jury convicted Castro in October 2018. He was the lead defendant of a 20-defendant drug conspiracy that began in 2013 and continued until all defendants were arrested in 2017. Chief United States District Judge Robert J. Jonker handed down the sentence..
Evidence presented at trial proved Castro to be the lead California-based drug distributor, responsible for sending heroin and cocaine to Grand Rapids, Michigan, Indianapolis, Indiana, and Kansas, through the use of trap-cars, semi-trucks with custom-made concealed compartments, and car trailers. Castro employed multiple drivers and maintained his drug distribution deliveries even while in prison for a federal supervised release violation in 2016.
The conviction was the result of a multi-agency Federal and State investigation into the conspiracy. The investigation began in 2016 and continued through 2017 and involved the wiretap of seven separate telephones used by multiple coconspirators. In total, 24 defendants were convicted as a result of the charges brought in the investigation. During the arrests of the defendants and execution of associated searches, federal and state investigators seized over 30 kilograms of heroin, cocaine and fentanyl, multiple pounds of marijuana, two kilogram presses, over $1,300,000 in drug proceeds, a bullet-proof vest, three handguns and an assault rifle with an extended magazine.
"Heroin, fentanyl and cocaine - trafficked into our state from other regions—have been a scourge to our community. In Kent County alone, the number of overdose deaths from controlled substances increased by over 50% from 2016 to 2017 and we lost 156 of our neighbors to overdoses in 2017,” stated U.S. Attorney Birge. “Our federal and state law enforcement partners will not rest until they have traced these drugs to their source, like Mr. Castro. Stiff penalties like the one the Court issued here are warranted for those who would profit from this poison."
DEA Special Agent in Charge Tim Plancon added, “This investigation is an example of DEA’s continuing effort to target the distribution of dangerous drugs at the highest level in western Michigan. Castro was part of a drug distribution network spanning from Mexico to Michigan and beyond. The men and women of DEA, along with our law enforcement partners and federal prosecutors, will continue our relentless pursuit to identify and investigate those trafficking illicit narcotics and committing related violent acts in our communities."
Manny Muriel, Special Agent in Charge of the Detroit’s IRS Criminal Investigation, stated, “IRS-CI will continue to exploit its forensic capabilities to identify, trace and dismantle the financial networks of those individuals and organizations that bring drugs and crime into our state, exhausting all avenues to deny these criminals of their financial reward. Equally important, IRS-CI will utilize the forfeiture statutes to deprive these individuals and organizations of their ill-gotten gains."
The Drug Enforcement Administration (DEA), Internal Revenue Service (IRS), Federal Bureau of Investigation (FBI), Vice Unit of the Grand Rapids Police Department (GRPD), Kent County Sheriff’s Department (KCSD), Wyoming Police Department, Michigan State Police (MSP), Kent Area Narcotics Enforcement Team (KANET), Metropolitan Enforcement Team (MET), U.S. Secret Service (USSS), Bureau of Alcohol Tobacco and Firearms (ATF), Kalamazoo Valley Enforcement Team (KVET), Albion P.D., Calhoun County Sheriff Department, and South West Enforcement Team (SWET) have all supported the investigation.
The image below shows items recovered through the law enforcement operation.
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Federal Court Sentences Business Owner for $20 Million Tax FraudRead the Press Release
HOUSTON - A man who had owned Stat Source, Inc., has been ordered to prison for willfully failed to truthfully account for and pay over employment taxes to the IRS, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge D. Richard Goss of IRS - Criminal Investigation (CI). Jonathan Adam Van Pelt pleaded guilty Nov. 8, 2018.
Today, U.S. District Judge Alfred H. Bennett handed Van Pelt a 30-month sentence to be immediately followed by three years of supervised release. Judge Bennett also ordered Van Pelt to pay restitution to the United States of more than $20 million.
In handing down its sentence, Judge Bennett noted many factors to include Van Pelt’s medical condition as well as the size of the tax loss and the fact that Van Pelt knew he had a degenerative disease prior to commission of his crime.
In the plea agreement filed in the record of the case, Van Pelt admitted the total employment taxes he failed to pay to the IRS for Stat Source Inc., was more than $20 million, the amount owed for 18 employment tax quarters running from the third quarter of 2011 through the fourth quarter of 2015. Van Pelt also admitted he spent the money owed on the unpaid employment taxes on various luxury items, such as luxury automobiles, expensive furniture, leather goods, jewelry, an expensive home, lavish vacations and various entertainment venues.
Judge Bennett allowed Van Pelt to remain on bond pending his voluntary surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS-CI conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
FedEx Packages Intercepted by Law Enforcement Result in Ten-Year Prison SentenceRead the Press Release
United States Attorney Joe Kelly announced that on February 14, 2019, Chief United States District Judge John M. Gerrard sentenced Jose Guzman-Ramirez to a term of imprisonment of 120 months, to be served in the U.S. Bureau of Prisons. Guzman-Ramirez pleaded guilty to Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine, a felony offense.
Investigators with the Drug Enforcement Administration, Omaha Field Division, and the Douglas County Sheriff’s Office intercepted a FedEx delivery of packages containing approximately 10 pounds of methamphetamine. Investigators successfully executed the delivery at a residence in Omaha, where Guzman-Ramirez and another defendant received the packages. Investigators recovered the methamphetamine and more than $11,600 in United States Currency, which is subject to criminal forfeiture. Guzman-Ramirez agreed to an order of removal by U.S. immigration authorities after serving his criminal sentence.
This case was investigated by the Drug Enforcement Administration and the Douglas County Sheriff’s Office.
Ex-Fannie Mae Employee Found Guilty in Multi-Million Dollar Scheme Involving Property Listings and Approval of Below-Market SalesRead the Press Release
SANTA ANA, California – A former employee of Fannie Mae in Irvine has been found guilty of federal fraud charges related to bribes and kickbacks she took from brokers in exchange for Fannie Mae real estate listings and her approval of discounted sales of Fannie Mae-owned properties.
Shirene Hernandez, 46, of Corona, was found guilty on Tuesday of two wire fraud counts that involved the deprivation of honest services. Following the guilty verdicts on Tuesday, a federal jury on Wednesday found that Hernandez must forfeit a piece of property she derived from her criminal conduct.
According to the evidence presented at a five-day trial, Hernandez was a sales representative at the Federal National Mortgage Association (Fannie Mae), a government-sponsored entity under the conservatorship of the Federal Housing Finance Agency (FHFA). As part of its operations, Fannie Mae acquires properties through foreclosures and other methods, and then manages and sells those properties for Fannie Mae’s benefit. Since at least 2012, Fannie Mae’s profits have gone to the United States Treasury Department for the benefit of the U.S. taxpayer.
As a sales representative, a position she held from 2010 until 2015, Hernandez assigned Fannie Mae-owned properties to real estate brokers and approved sales of the properties based on offers the brokers submitted. In violation of Fannie Mae rules and federal law, Hernandez approved sales of Fannie Mae-owned properties at discounted prices to herself and to the brokers who paid her kickbacks. She also received bribes – mostly in cash payments – in return for listings and commissions that brokers earned on real estate sales.
Hernandez also assigned listings to family members who received nearly $2 million in commissions in less than three years. For her part in the scheme, Hernandez received more than $1 million in benefits, including the cash kickbacks and equity in a property she obtained with kickback money.
As part of the scheme, Hernandez purchased a Fannie Mae-owned property in Sonoma that she was responsible for selling, after she rejected higher, market-priced offers in favor of her own below-market price. Hernandez purchased the Sonoma property through intermediaries and affiliates that she controlled, selling it first to a company affiliated with a broker who was bribing her, then directing the broker to transfer the property to her sister-in-law, who paid for the property with a duffel bag filled with $286,450 in cash she received from Hernandez – far below the market price. The Sonoma property was rented out and Hernandez received the rent proceeds. The jury on Wednesday found this property – which now is worth hundreds of thousands of dollars more than the purchase price – should be forfeited to the U.S. government.
United States District Judge Andrew J. Guilford has scheduled a May 13 sentencing hearing for Hernandez, who faces a statutory maximum of 20 years in federal prison on each of the two felony offenses.
The case was investigated by the Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG).
The prosecution is being handled by Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section and Assistant United States Attorney Ian V. Yanniello of the General Crimes Section.
Ex-Accounting Manager Charged with Embezzling $36 Million from a Company Client Has Been Extradited from Costa RicaRead the Press Release
LOS ANGELES – A former accounting manager who is facing 10 wire fraud counts for allegedly embezzling more than $36 million from his employer’s client and then using the bulk of the ill-gotten funds to pay off tens of millions of dollars of his credit card debt has been extradited to the United States from Costa Rica.
Paul McDaniel, 42, a.k.a. “Edward Martin Karuku,” who resided in the City of Orange before fleeing to Costa Rica in early 2017, arrived this afternoon in Los Angeles after extradition proceedings in Costa Rica. McDaniel is scheduled to be arraigned Friday afternoon in United States District Court.
From July 2009 until December 2016, McDaniel allegedly embezzled the funds from Hypermedia Systems, Inc., a media technology services firm based in downtown Los Angeles. McDaniel was initially an independent contractor for and then an employee of E-Times Corp., a downtown Los Angeles-based professional services firm providing accounting assistance to Hypermedia Systems. McDaniel was assigned to work at Hypermedia as an accounting manager. As part of his job, he would request payments to be made from a Hypermedia account to pay purported Hypermedia vendors.
According to the indictment filed in September 2017, during the time he was working with Hypermedia McDaniel formed a Nevada corporation with a name similar to one of Hypermedia’s vendors and then opened a bank account – under which he had complete control – in that entity’s name. He then allegedly used his authority as Hypermedia’s accounting manager to approve and direct payments totaling more than $36 million to this bank account. To justify the payments, McDaniel allegedly created false and fictitious invoices on the letterhead of actual Hypermedia vendors, falsely stating that particular goods had been provided to the company. The fraudulent payments were wired to the McDaniel-controlled bank account.
McDaniel used the funds to pay off $23 million in credit card bills and transferred another $8 million to his personal bank accounts, according to the indictment. Investigators believe he spent additionally millions of dollars on miscellaneous expenses.
McDaniel was arrested in Costa Rica in 2017 pursuant to a provisional arrest warrant filed by the United States. He was held in custody during extradition proceedings.
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.
Each of the 10 counts of wire fraud charges in the indictment carries a statutory maximum penalty of 20 years in federal prison.
This case was investigated by the Federal Bureau of Investigation. The United States Attorney’s Office extends its appreciation to the Costa Rican authorities who assisted in apprehending the defendant, and the Department of Justice Office of International Affairs for assisting with the extradition as well as the United States Department of State Diplomatic Security Service and the United States Marshals Service for their assistance in this matter.
This case is being prosecuted by Assistant United States Attorney Poonam G. Kumar of the Major Frauds Section.
Erie Man Charged with Illegally Possessing a Firearm while the Subject of an Active PFARead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania has been indicted by a federal grand jury in Erie on a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count indictment named Jonathan Dominic Mull, 19, as the sole defendant.
According to the indictment presented to the court, on December 4, 2018, Mull possessed a firearm which he was precluded from possessing because of an active protection from abuse order.
This case is being prosecuted as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The United States Marshals Service conducted the investigation leading to the indictment in this case, with assistance from the Bureau of Alcohol, Tobacco, Firearm and Explosives.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Effingham Woman Sentenced to Five Years of Probation for Making False Statements to Obtain Social Security BenefitsRead the Press Release
CONCORD – Valerie Rondeau, 59, of Effingham was sentenced to five years of probation for making false statements to obtain Social Security disability benefits, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Rondeau received Supplemental Security Income (“SSI”) benefits for over 16 years prior to her marriage in May 2013. Rondeau continued to receive these benefits after she wed, but Rondeau did not report her marriage or her shared living arrangement to the Social Security Administration. Instead, Rondeau took active steps to conceal her marriage and living arrangement. For example, Rondeau changed her last name to that of her husband, writing in the petition “we live as a married couple.” But, when Social Security inquired about the name change, Rondeau advised Social Security that she was not married and does not present herself as married. Rondeau continued to conceal her marriage and living arrangement until November 2017, when she admitted to investigators that she did not obtain a marriage license or report her marriage to Social Security because she knew she could lose her disability benefits.
Rondeau’s marriage or shared living arrangement, if properly reported, would have disqualified her from receiving benefits. Applicants for certain disability benefits must have limited income and resources in order to qualify for assistance. The incomes of all members of a household are considered when determining an individual’s eligibility for SSI benefits. As a result of her concealment, Rondeau received over $37,000 in disability benefits that she was not entitled to receive.
Rondeau previously pleaded guilty on November 6, 2019. In addition to probation, the court ordered that Rondeau pay full restitution of $37,879.
“Federal benefit programs are designed to provide assistance to those who truly need financial help,” said U.S. Attorney Murray. “In order to protect the integrity of these programs, we work closely with our law enforcement partners to identify and prosecute those who use fraud to obtain benefits that they are not entitled to receive.”
“By prosecuting offenders like Rondeau, we deliver a strong message that this type of fraud won’t be tolerated,” said Adam D. Schneider, Acting Special Agent-in-Charge of the Social Security OIG’s Boston Field Division. “Today’s sentencing should serve as a warning to those who choose to selfishly defraud the Social Security Administration. These cases are vigorously pursued, and we will continue to work jointly with the U.S. Attorney, and other law enforcement partners to identify and prosecute fraud perpetrators in the future. I strongly encourage the public to report suspected instances of Social Security fraud to the SSA OIG’s Fraud Hotline at 1-800-269-0271 or http://oig.ssa.gov/report.”
“Today’s sentencing demonstrates the U.S. Postal Inspection Service’s commitment to combat fraud,” said U.S. Postal Inspection Service’s Inspector in Charge Joseph W. Cronin of the Boston Division. “By working with our federal law enforcement partners, we will continue to investigate and take action against those who take part in this type of behavior.”
This matter was investigated by the Social Security Administration Office of the Inspector General and the United States Postal Inspection Service. The case was prosecuted by Special Assistant U.S. Attorney Matthew T. Hunter.
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Eastern District of Kentucky U.S. Attorney’s Office Collects over 29 Million Dollars in Criminal and Civil Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
LEXINGTON, Ky. - U.S. Attorney Robert M. Duncan, Jr. announced today that the Eastern District of Kentucky collected $29,313,458.05 in criminal and civil actions in Fiscal Year 2018. Of this amount, $23,868,990.17 was collected in criminal actions and $5,444,467.88 was collected in civil actions.
Additionally, Eastern District of Kentucky worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,059,343.76 in cases pursued jointly by these offices in civil actions.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents is nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
“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,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
“The Eastern District of Kentucky’s dedicated personnel, in collaboration with partners from other Department of Justice components, worked diligently to protect our citizens and to safeguard taxpayer resources,” stated United States Attorney Robert M. Duncan, Jr. “I commend their efforts in these important endeavors. As a result of their hard work, a significant amount of taxpayer dollars were recovered in last Fiscal Year.”
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.
Dubuque Woman Sentenced for Illegally Possessing Multiple GunsRead the Press Release
A woman who possessed guns while using drugs was sentenced on February 13, 2019, to three years’ probation.
Marliesha Scott, age 39, from Dubuque, Iowa, received the sentence after a July 9, 2019, guilty plea to drug user in possession of firearms. Scott possessed three guns while using cocaine and marijuana. The guns were recovered during a Department of Human Services investigation related to her minor children.
Scott was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Scott was sentenced to three years’ probation.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco and Firearms.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1014.
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Drug User in Possession of a Gun Sentenced to Federal PrisonRead the Press Release
A Waterloo marijuana user who possessed a gun and high-capacity magazine was sentenced yesterday to more than two years in federal prison.
Antonio Rodriquez Ross, age 24, from Waterloo, Iowa, received the prison term after an August 24, 2018 guilty plea to being a drug user in possession of a firearm.
In a plea agreement, Ross admitted he possessed a gun while he was an unlawful user of marijuana. He further admitted that at the time he possessed the gun, law enforcement was investigating him for his involvement in drug trafficking and use crimes. Ross was also in possession of a high-capacity magazine capable of holding 30 rounds of ammunition.
Ross was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Ross was sentenced to 32 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). 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.
Ross is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by Waterloo Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-Cr-2018.
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Douglas Man Sentenced to 60 Years in Prison for Production and DistributionRead the Press Release
TUCSON, Ariz. – Yesterday, Josue Eduardo Cota, 33, of Douglas, Ariz., was sentenced by U.S. District Judge Rosemary Marquez to serve 720 months in prison. Cota’s term of imprisonment will be followed by lifetime supervised release, with stringent sex offender conditions, including the condition that he register as a sex offender, if he is released from prison.
In February of 2017, Homeland Security Investigations discovered videos showing sexual abuse of pre-pubescent children while reviewing evidence from a child exploitation case in Canada. Agents tracked the distribution of the videos to a person in Douglas, Ariz., and determined that Cota, a former corrections officer in Douglas, had been producing sexually explicit videos of multiple children and distributing them online. On Nov. 30, 2017, Cota pleaded guilty to eight counts of production of child pornography. Cota’s sentence, was aggravated by the facts that he sexually abused very young children and had engaged in a pattern of sexual exploitation of minors, which he shared with others through distribution of the videos.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices 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.
The investigation in this case was conducted by Homeland Security Investigations, Douglas Office. The prosecution was handled by Carin C. Duryee, District of Arizona, Tucson.
CASE NUMBER: CR-17-0685-TUC-RM
RELEASE NUMBER: 2019-013_Cota
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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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Cushing Man Sentenced to Four Years for Seaman’s ManslaughterRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Christopher A. Hutchinson, 30, of Cushing, Maine was sentenced in U.S. District Court by Judge D. Brock Hornby to four years in prison and three years of supervised release for Seaman’s Manslaughter for causing the death of two crewmen who were then 26 and 15 years old. Hutchinson pleaded guilty on September 25, 2018.
According to court records, on November 1, 2014, after smoking marijuana and drinking alcohol, Hutchinson took his lobster boat, the No Limits, out into a predicted storm with two crewmen aboard. After he had ingested oxycodone, the boat capsized. The two crewmen were not wearing personal floatation devices or survival suits. The No Limits’ Emergency Position Indicating Radio Beacon alerted at about 1:20 p.m. The Coast Guard rescued Hutchinson at about 4 p.m. At the time, he was wearing shorts and a t-shirt. The Coast Guard located the bow of the No Limits at about 5 p.m., with no signs of life. The bodies of the two crewmen have never been found and are presumed dead.
In pronouncing sentence, Judge Hornby said: “The case was a heartbreaking tragedy. Two young men lost their lives. One of those leaves a young son who is now fatherless. Many parents are grieving.”
“This case is a terrible tragedy,” said U.S. Attorney Frank. “In the cases of the victim’s families, there is nothing worse for parents than the death of their child. The defendant was the captain of the boat and was responsible for the safety of his crew. Rather than live up to his responsibility, he engaged in risky, reckless behavior that cost the lives of two young men. While nothing can replace those young men, hopefully, this case will send a clear message that captains will be held accountable for such losses.”
The investigation was conducted by the U.S. Coast Guard.
Convicted Felon Who Used a Shotgun to Steal Money Outside a Casino Sentenced to Eight Years in Federal PrisonRead the Press Release
A man who illegally possessed a shotgun that he used to steal money was sentenced on February 13, 2019, to eight years in federal prison.
Harold Amos, age 40, from Coos Bay, Oregon, received the prison term after an August 9, 2018 guilty plea to being a prohibited person in possession of a firearm and ammunition.
In March 2018, Amos was at the Meskwaki Bingo Casino Hotel in Tama, Iowa. Video cameras captured him becoming very angry while in a discussion with other individuals. Amos left the casino and went to his car. One of the other individuals also went outside. Amos then got a shotgun from the car and pointed it at the other individual. While armed with the shotgun, Amos stole cash from this individual. Police later located Amos driving this same car and recovered the shotgun in the truck. The shotgun was loaded.
Amos had previously been convicted of a misdemeanor crime of domestic violence and a felony for manufacturing methamphetamine.
Amos was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Amos was sentenced to 96 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). 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.
Amos is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Meskwaki Nation Police Department and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-0025.
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Convicted Felon Who Kept a Rifle Next to Drugs He Planned to Sell Sentenced to over Two Years in PrisonRead the Press Release
A Lisbon man who kept a rifle next to methamphetamine and marijuana he planned to sell was sentenced today to more than two years in federal prison.
Kevin Seeman, age 51, from Lisbon, Iowa, received the prison term after a November 8, 2018 guilty plea to being a felon in possession of a firearm. Seeman possessed a rifle, which he stored in an outbuilding near marijuana and methamphetamine that he planned to sell. Evidence at sentencing also showed that, just two weeks prior to the sentencing hearing, officers conducted a traffic stop of Seeman’s vehicle in Cedar Rapids, smelled marijuana coming from the vehicle, and found marijuana and methamphetamine on one of the passengers.
Seeman was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Seeman was sentenced to 27 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). 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.
Seeman was released on the bond previously set and is to surrender to the United States Marshall’s Service on February 28, 2019.
The case was prosecuted by Assistant United States Attorney Jacob Schunk and investigated by the Lisbon Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-cr-00101-CJW.
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Convicted Felon Found Guilty of Illegally Possessing Two Firearms in DuPage CountyRead the Press Release
CHICAGO — A convicted felon has been found guilty of illegally possessing an assault rifle and a loaded handgun in DuPage County.
CAMERON BATTISTE, 36, possessed the guns in April 2017 at an apartment complex in Willowbrook. At the time of his arrest on April 7, 2017, the handgun was loaded with six live rounds. Battiste had previously been convicted of a felony and was not legally allowed to possess a firearm.
A federal jury in Chicago on Wednesday convicted Battiste on one count of illegal possession of a firearm by a felon. The conviction is punishable by up to ten years in prison. U.S. District Judge Matthew F. Kennelly set sentencing for May 9, 2019, at 1:30 p.m.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. Substantial assistance was provided by the Cook County Sheriff’s Police Department and the Bolingbrook Police Department. The government is represented by Assistant U.S. Attorneys Ankur Srivastava, William Dunne and Saurish Appleby-Bhattacharjee.
Evidence at the three-day trial revealed that the two firearms had been stolen from a cargo train that passed through Chicago on Sept. 18, 2016. Another convicted felon, co-defendant IESHA STANCIEL, 39, of Willowbrook, was arrested at the same time as Battiste for illegally possessing the same two firearms. Stanciel pleaded guilty prior to trial and was sentenced last month to six years in federal prison.
During Stanciel’s sentencing hearing, the government presented evidence that Stanciel threatened an individual who was cooperating with law enforcement. In November 2016, Stanciel posted intimidating messages on the cooperating individual’s Facebook page. One of the posts contained several emojis of a handgun and referred to the individual as a “snitch.”