Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 14 February 2019
Columbia, Tennessee Man Facing Federal Firearms Charges After Shooting at Police OfficersRead the Press Release
NASHVILLE, Tenn. – February 14, 2019 – Jamal J. Gardner, 47, of Columbia, Tennessee, was charged today in a criminal complaint with being a convicted felon in possession of a firearm, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
“As I have said many times, when a law enforcement officer in this district is assaulted, we will bring federal charges whenever possible,” said U.S. Attorney Cochran. “This was an extremely violent encounter and we are grateful that lives were not lost. We will hold this defendant accountable for his actions.”
According to the criminal complaint, a Columbia Police Officer initiated a traffic stop of a vehicle matching the description of a report of a reckless driver. As the officer approached the vehicle, he observed the driver holding a rifle and the driver immediately began firing at the officer. As the officer took cover and returned fire, the driver, later identified as Jamal Gardner, fled into a nearby residence and continued firing at responding officers. Gardner fired approximately 80 rounds, from at least four firearms, before escaping from the house.
On February 8, 2019, Gardner surrendered to police in Detroit, Michigan and is awaiting transfer to the Middle District of Tennessee.
If convicted, Gardner faces a minimum sentence of 15 years and up to life in prison.
This case was investigated by the Columbia Police Department; the 22nd Judicial District Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Thomas J. Jaworski is prosecuting the case.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
# # # # #
Chicopee Man Sentenced for Selling HeroinRead the Press Release
BOSTON - A Chicopee man was sentenced today in federal court in Springfield for distributing heroin.
Steven Brown, 28, was sentenced by U.S. District Court Judge Mark G. Mastroianni to time served (three months) in prison and six years of supervised release. In October 2018, Brown pleaded guilty to one count of distribution and possession with intent to distribute heroin.
"In the midst of an opioid epidemic killing thousands of people a year, we are disappointed that the court gave a convicted, repeat [heroin] trafficker time served instead of the 15 years sought by the government," said U.S. Attorney Andrew E. Lelling.
On June 30, 2016, Brown sold 300 bags of heroin to a cooperating witness. Brown has previously been convicted in state court of drug distribution offenses six times between 2008 and 2013, and he was facing state drug charges at the time of this offense.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Springfield Police Commissioner John Barbieri; and Holyoke Police Chief James M. Neiswanger made the announcement. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office prosecuted the case.
California Man Sentenced on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Loren Glen Warner, 29, of Fresno, CA, who was convicted of production of child pornography, was sentenced to serve 20 years in prison and 15 years supervised release by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that in early January, 2017, the defendant met the 14 year-old victim at her family’s church in Cattaraugus County, NY, and the two began communicating via Facebook and Snapchat. During those communications, Warner, who knew the victim was 14 years-old, began making sexual references and statements, and sent sexually explicit images of himself to the victim. The defendant also asked for and received nude photographs of the victim.
Warner also met a 13 year-old victim at a church in Fresno, California. Over several years, the defendant requested and received child pornography images and videos from that victim as well.
In March 2017, the defendant pleaded guilty to Rape in the Second Degree, and Endangering the Welfare of a Minor in Cattaraugus County Court and was sentenced to seven years in prison.
Today’s sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the New York State Police, under the direction of Major Edward Kennedy; and the Cattaraugus County District Attorney’s Office, under the direction of Lori Rieman.
# # # #
Burnsville Man Pleads Guilty to Violent KidnappingRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of DONTAY LAVARICE REESE, 37, for kidnapping. REESE entered his guilty plea yesterday afternoon before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed in court, in the early morning hours of August 6, 2017, REESE met the victim, T.M., in downtown Minneapolis. REESE offered T.M. a ride home; however, instead of driving her home, he drove in the wrong direction into Wisconsin. The defendant told the victim that he was going to take her “several states away” and use her to make money as a prostitute. The victim attempted to escape multiple times - each time she was captured and violently restrained by REESE. A family witnessed one of the escape attempts and called 911.
After the 911 call, Wisconsin State Patrol found the victim running out of a wooded area, with her wrists bound together, and screaming for help. REESE came out of the same wooded area shortly after, fully naked and attempted to cross the interstate on foot. He was taken into custody.
“The victim endured a terrifying experience, and has shown incredible courage throughout this process. Because of her courage a violent offender is no longer in our community,” said United States Attorney Erica H. MacDonald.
"Thoughts today are with the victim in this case who courageously helped put her assailant in prison for many years,” said Jill Sanborn, Special Agent in Charge of the Minneapolis Division of the FBI. “Thanks to the victim and diligent work of law enforcement from Minnesota and Wisconsin working with the FBI, justice was served and Mr. Reese was held accountable for his actions."
Sentencing has been scheduled for June 4, 2019, at 9:00 am in U.S. District Court in Minneapolis.
This case is the result of an investigation conducted by the FBI, Wisconsin State Patrol, Jackson County (Wisconsin) Sheriff’s Department, Eau Claire County (Wisconsin) Sheriff’s Department, and Minneapolis Police Department.
Assistant U.S Attorneys Angela Munoz-Kaphing and John Docherty are prosecuting the case.
Defendant Information:
DONTAY LAVARICE REESE, 37
Burnsville, Minnesota
Convicted:
- Kidnapping, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Brooklyn Park Tax Preparer Known as “Papa Eric” Charged with Tax FraudRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging ERIC WILLOR, 69, with 15 counts of aiding and assisting in the preparation of a false tax return. WILLOR will make his initial appearance in United States District Court at a later date.
According to the indictment, WILLOR, also known as “Papa Eric,” ran a tax preparation business called Willor’s Tax Preparation and Planning out of his home in Brooklyn Park, Minnesota. WILLOR regularly prepared and filed tax returns using false and fraudulent itemized deductions in order to fraudulently obtain large tax refunds to which his clients were not entitled. Specifically, WILLOR regularly prepared and filed returns falsely claiming that his clients had significant tax-deductible charitable contributions, medical expenses, and educational expenses. In reality, WILLOR knew that these claimed deductions were fraudulent. Between 2012 and 2017, WILLOR prepared and filed approximately 100 fraudulent tax returns that fraudulently claimed a total of approximately $316,000 in tax refunds to which his clients were not entitled.
This case is the result of an investigation conducted by the Internal Revenue Service-Criminal Investigation Division.
This case is being prosecuted by Assistant United States Attorney Joseph H. Thompson.
Defendant Information:
ERIC WILLOR, 69
Brooklyn Park, Minn.
Charges:
- Aiding and assisting in the preparation of a false tax return, 15 counts
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Bronx Man Pleads Guilty to Heroin ChargeRead the Press Release
ALBANY, NEW YORK – Ronny Mota, age 29, of Bronx, New York, pled guilty today to conspiring to distribute more than 100 grams of heroin.
The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge Raymond P. Donovan, U.S. Drug Enforcement Administration (DEA), New York Division.
Mota admitted that on December 5, 2018, he drove from New York City to Albany County, New York, for the purpose of selling approximately 130 grams of heroin to another individual. The DEA arrested Mota and a co-conspirator in a motel parking lot in Colonie before they could meet with the buyer. Agents found the bag of heroin in a coffee cup next to the driver’s seat.
Mota faces at least 5 years and up to 40 years in prison, and at least 4 years of post-imprisonment supervised release, when he is sentenced by United States District Judge Mae A. D’Agostino on June 14, 2019. 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.
This case was investigated by the DEA and its Capital District Drug Enforcement Task Force, which includes investigators from the Schenectady Police Department, Troy Police Department and New York State Police. The Schenectady County Sheriff’s Office also assisted in the investigation. This case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Bookkeeper Pleads Guilty to Failing to Declare More Than $700,000 in Stolen Money on Tax Return. Admits to Stealing over Five Million from New Orleans Law Firm and Real Estate CompanyRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced today that PEGGY NAGELE, age 65 of Thibodeaux, Louisiana pleaded guilty January 24, 2019 to a one count bill of information, charging her with violating Title 26, United States Code, Section 7206, making false statements on an income tax return.
The bill of information, filed in November 2018, charged NAGELE with failing to declare on her 2011 Federal tax form 1040 more than $727,847.80 in funds she had stolen. NAGELE was employed as a bookkeeper with Law Firm A, a New Orleans law firm. In documents filed in open court in connection with her guilty plea. NAGELE admitted to theft of $5,083,601 from Firm “A” and Business “A”, a real estate management company. She admitted to failing to declare $727,847 in illicit income on her 2011 federal income tax return, as charged in the Bill of Information.
NAGELE further admitted to having unfettered access to both entities checkbooks and financial assets. She wrote checks to herself from operating accounts at Firm “A”. She disguised her thefts by making the checks payable to routine vendors, or simply did not record the checks in the check register. The checks were then deposited into either Mortgage Lending Group, a business NAGELE and her family controlled or Nagele Corporation, another business controlled by the defendant.
The maximum penalty NAGELE faces is 3 years incarceration, a $250,000 fine, the cost of the investigation, as well as restitution to the IRS. NAGELE is set for sentencing May 2, 2019.
U.S. Attorney Strasser praised the work of the Internal Revenue Service Criminal Investigation Division for their thorough investigation. The case is being prosecuted by Assistant United States Attorney Carter K.D. Guice Jr.
Bay Area Couple Indicted for Allegedly Stealing Mail Containing Credit Cards and Drivers LicensesRead the Press Release
SAN FRANCISCO – Tyler Goforth and Jesslyn Felix were indicted on charges they engaged in a scheme to steal the mail from a San Francisco condominium, announced United States Attorney David L. Anderson and U.S. Postal Inspection Service Inspector in Charge Rafael Nuñez. The indictment was filed January 15, 2019, and unsealed today.
According to the indictment, from August of 2017 to February of 2018, Goforth and Felix, both 35 and residing in Walnut Creek, entered a 600-condominium apartment complex in San Francisco to steal the residents’ mail. The defendants allegedly used an electronic key fob to enter the complex and then used a tool to unlock and open the door to the residents’ mailboxes. The defendants then activated credit cards, debit cards, and gift cards that they stole from the mailboxes to make purchases for their own benefit.
The indictment describes a number of purchases made with the stolen credit, debit, and gift cards. For example, the indictment alleges that between December 12, 2017 and January 9, 2018, over $800 was used to make purchases at the Sheraton Sonoma County Hotel and another $700 was used to make purchases at CVS pharmacies and Target stores. Further, the indictment alleges on February 15, 2018, the defendants were in possession of more than five authentic drivers licenses that were not issued for their use.
In sum, each defendant is charged with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; five counts of wire fraud, in violation of 1343; six counts of theft of mail, in violation of 18 U.S.C. § 1708; one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A; and one count of possession with intent to use or transfer five or more documents or authentication features, in violation of 18 U.S.C. § 1028(a)(3).
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum sentence of 20 years in prison and $250,000 on each fraud and conspiracy count, 5 years in prison and $250,000 on each mail theft count; 5 years in prison on the false document count, and a mandatory 2 years in prison if convicted of the aggravated identity theft count. In addition, the court also may order an additional term of supervised release, fines or other assessments, and restitution, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Goforth made his initial appearance this morning before U.S. Magistrate Judge Beeler. His next scheduled appearance is scheduled for February 28, 2019, before Magistrate Judge Beeler for a detention hearing. Felix currently is in state custody on unrelated charges; her initial appearance has not yet been scheduled.
Assistant U.S. Attorney Ross Weingarten is prosecuting this case with the assistance of Marina Ponomarchuk. This prosecution is the result of an investigation by the U.S. Postal Inspection Service.
Baton Rouge Doctor and His Medical Billing Supervisor Plead Guilty to Fraudulent Billing SchemeRead the Press Release
A Baton Rouge, Louisiana-based doctor pleaded guilty yesterday and his medical billing supervisor pleaded guilty today for their roles in a scheme to defraud Medicare and other health care insurers.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office, and Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office made the announcement.
John Eastham Clark M.D., 66, of Baton Rouge, pleaded guilty on Feb. 13 to count one of an indictment charging him with conspiracy to commit health care fraud. His sentencing has not been scheduled yet by U.S. District Judge Shelly D. Dick of the Middle District of Louisiana, who accepted his plea. Charlene Anita Severio 56, of Walker, Louisiana, pleaded guilty today to one count of an indictment charging her with conspiracy to commit health care fraud and wire fraud and two counts of the indictment charging health care fraud. Her sentencing has not been scheduled yet by Judge Dick, who accepted her plea.
“For nearly a decade, John Eastham Clark and Charlene Anita Severio submitted fraudulent claims to Medicare and other health insurers for payments they were not entitled to receive,” said Assistant Attorney General Benczkowski. “These guilty pleas should serve as a warning to unscrupulous doctors and other medical professionals: the Criminal Division’s Medicare Fraud Strike Force and our law enforcement partners will aggressively investigate and prosecute illegal billing practices and other fraudulent schemes that steal taxpayer dollars and increase healthcare program costs for all Americans.”
“In defrauding the Medicare system, Dr. Clark violated a sacred oath taken by physicians but above all he violated the law,” said U.S. Attorney Fremin. “Ms. Severio, an employee of Dr. Clark, submitted fraudulent claims to both Medicare and other health care insurers as part of the scheme. We will continue to hold medical professionals accountable for abusing positions of trust in the community and for harming the financial integrity of our health care system. I want to thank the Department of Justice’s Criminal Division, Fraud Section, the FBI, Health and Human Services - Office of Inspector General and the dedicated attorneys and staff from our office for their outstanding efforts in this case.”
“Today’s guilty pleas clearly illustrate that, along with our law enforcement partners, we will aggressively pursue criminal charges against bad actors in the Medicare program,” said HHS-OIG Special Agent in Charge Porter. “Those intent on robbing patients with legitimate medical needs of access to taxpayer funds earmarked for their health care, will ultimately pay a heavy price.”
“Agents of the Federal Bureau of Investigation remain dedicated to combating health care fraud and to doing our part in reducing the impact that opioids have on our nation,” said FBI Special Agent in Charge Porter. “This was a case that spanned multiple years and has resulted in numerous convictions. It highlights the cooperation between the FBI and the Health and Human Services - Office of the Inspector General.”
Clark was a co-owner and the medical director of Louisiana Spine & Sports LLC, a pain management clinic located in Baton Rouge. According to plea documents, the charge stems from Clark’s role in a scheme to submit fraudulent claims to Medicare and other health care insurers. Specifically, as part of his guilty plea, Clark admitted that from approximately June 2005 through March 2015, he, along with his billing supervisor Severio, and others, conspired to submit fraudulent claims indicating that minor surgical procedures occurred on days subsequent to office visits, when in fact the office visits and procedures took place on the same day. Clark admitted that this practice, commonly referred to as “unbundling,” was done to defraud health care insurers for non-reimbursable office visits. Clark further admitted to falsifying, and directing Severio and others to falsify, records substantiating the fraudulent claims.
Severio was a billing supervisor at Louisiana Spine & Sports, and worked for Clark. According to admissions made as part of her guilty plea, from approximately June 2005 through March 2015, Severio conspired with Clark to submit fraudulent claims to Medicare and other health care insurers. Specifically, Severio admitted that she knowingly and willfully submitted fraudulent claims indicating that minor surgical procedures performed by Clark occurred on days subsequent to office visits, when in fact the office visits and procedures took place on the same day. Severio admitted that this practice was done to defraud health care insurers.
In another case involving Louisiana Spine & Sports, on Nov. 20, 2018, Gray Wesley Barrow M.D., a co-owner of Louisiana Spine & Sports, pleaded guilty to a scheme to receive approximately $336,000 in illegal health care kickback payments. Barrow is scheduled to be sentenced on March 1. In addition, Christopher William Armstrong, a former physician’s assistant at Louisiana Spine & Sports, pleaded guilty on Nov. 27, 2018 for his role in a scheme to unlawfully distribute thousands of oxycodone pills. Armstrong is scheduled to be sentenced on April 16.
The case was investigated by HHS-OIG and the FBI. Assistant Chief Dustin M. Davis and Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elizabeth E. White of the Middle District of Louisiana are prosecuting the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Baton Rouge Doctor and His Medical Billing Supervisor Plead Guilty to Fraudulent Billing SchemeRead the Press Release
WASHINGTON – A Baton Rouge, Louisiana-based doctor pleaded guilty yesterday and his medical billing supervisor pleaded guilty today for their roles in a scheme to defraud Medicare and other health care insurers.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office, and Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office made the announcement.
John Eastham Clark M.D., 66, of Baton Rouge, pleaded guilty on Feb. 13 to count one of an indictment charging him with conspiracy to commit health care fraud. His sentencing has not been scheduled yet by U.S. District Judge Shelly D. Dick of the Middle District of Louisiana, who accepted his plea. Charlene Anita Severio 56, of Walker, Louisiana, pleaded guilty today to one count of an indictment charging her with conspiracy to commit health care fraud and wire fraud and two counts of the indictment charging health care fraud. Her sentencing has not been scheduled yet by Judge Dick, who accepted her plea.
“For nearly a decade, John Eastham Clark and Charlene Anita Severio submitted fraudulent claims to Medicare and other health insurers for payments they were not entitled to receive,” said Assistant Attorney General Benczkowski. “These guilty pleas should serve as a warning to unscrupulous doctors and other medical professionals: the Criminal Division’s Medicare Fraud Strike Force and our law enforcement partners will aggressively investigate and prosecute illegal billing practices and other fraudulent schemes that steal taxpayer dollars and increase healthcare program costs for all Americans.”
“In defrauding the Medicare system, Dr. Clark violated a sacred oath taken by physicians but above all he violated the law,” said U.S. Attorney Fremin. “Ms. Severio, an employee of Dr. Clark, submitted fraudulent claims to both Medicare and other health care insurers as part of the scheme. We will continue to hold medical professionals accountable for abusing positions of trust in the community and for harming the financial integrity of our health care system. I want to thank the Department of Justice’s Criminal Division, Fraud Section, the FBI, Health and Human Services - Office of Inspector General and the dedicated attorneys and staff from our office for their outstanding efforts in this case.”
“Today’s guilty pleas clearly illustrate that, along with our law enforcement partners, we will aggressively pursue criminal charges against bad actors in the Medicare program,” said HHS-OIG Special Agent in Charge Porter. “Those intent on robbing patients with legitimate medical needs of access to taxpayer funds earmarked for their health care, will ultimately pay a heavy price.”
“Agents of the Federal Bureau of Investigation remain dedicated to combating health care fraud and to doing our part in reducing the impact that opioids have on our nation,” said FBI Special Agent in Charge Rommal. “This was a case that spanned multiple years and has resulted in numerous convictions. It highlights the cooperation between the FBI and the Health and Human Services - Office of the Inspector General.”
Clark was a co-owner and the medical director of Louisiana Spine & Sports LLC, a pain management clinic located in Baton Rouge. According to plea documents, the charge stems from Clark’s role in a scheme to submit fraudulent claims to Medicare and other health care insurers. Specifically, as part of his guilty plea, Clark admitted that from approximately June 2005 through March 2015, he, along with his billing supervisor Severio, and others, conspired to submit fraudulent claims indicating that minor surgical procedures occurred on days subsequent to office visits, when in fact the office visits and procedures took place on the same day. Clark admitted that this practice, commonly referred to as “unbundling,” was done to defraud health care insurers for non-reimbursable office visits. Clark further admitted to falsifying, and directing Severio and others to falsify, records substantiating the fraudulent claims.
Severio was a billing supervisor at Louisiana Spine & Sports, and worked for Clark. According to admissions made as part of her guilty plea, from approximately June 2005 through March 2015, Severio conspired with Clark to submit fraudulent claims to Medicare and other health care insurers. Specifically, Severio admitted that she knowingly and willfully submitted fraudulent claims indicating that minor surgical procedures performed by Clark occurred on days subsequent to office visits, when in fact the office visits and procedures took place on the same day. Severio admitted that this practice was done to defraud health care insurers.
In another case involving Louisiana Spine & Sports, on Nov. 20, 2018, Gray Wesley Barrow M.D., a co-owner of Louisiana Spine & Sports, pleaded guilty to a scheme to receive approximately $336,000 in illegal health care kickback payments. Barrow is scheduled to be sentenced on March 1. In addition, Christopher William Armstrong, a former physician’s assistant at Louisiana Spine & Sports, pleaded guilty on Nov. 27, 2018 for his role in a scheme to unlawfully distribute thousands of oxycodone pills. Armstrong is scheduled to be sentenced on April 16.
The case was investigated by HHS-OIG and the FBI. Assistant Chief Dustin M. Davis and Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elizabeth E. White of the Middle District of Louisiana are prosecuting the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Bank Officer Sentenced for FraudRead the Press Release
OXFORD, Miss. – A former bank officer has been sentenced to two years in prison for embezzling funds from Southern Bancorp Bank. Michael J. Erickson, age 42, of Ridgeland, Mississippi, was sentenced by U.S. District Judge Glen H. Davidson on Thursday to serve 24 months imprisonment followed by 3 years of supervised release. In addition, Erickson was ordered to pay $1,462,030.31 in restitution to Southern Bancorp Bank. United States Attorney William C. Lamar, Christopher Freeze, Special Agent in Charge at the Federal Bureau of Investigation, and Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP) made the announcement following the sentencing.
Previously, on October 9, 2018, Erickson pled guilty to a one count Information charging him with Embezzlement by a Bank Officer in violation of Title 18, United States Code, Section 656. The conduct in question occurred while Erickson was employed as an officer at Southern Bancorp Bank in Clarksdale, Mississippi. In August 2010, the United States Treasury Department invested $33,800,000 in the holding company of Southern Bancorp Bank through the Community Development Capital Initiative. As a part of his plea, Erickson admitted to using his position as a bank officer to embezzle bank funds for his own benefit and generate fraudulent loans for the benefit of himself and others.
Following the sentencing in Oxford, Mississippi, U.S. Attorney William C. Lamar remarked, “As evidenced by the sentencing today, we will vigorously prosecute those bank employees who betray the public trust by embezzling or stealing from our financial institutions.”
“Embezzlement at any level weakens our economic stability and undermines our financial institutions as a whole,” said Christopher Freeze, Special Agent in Charge of the FBI in Mississippi. “We will maintain our strong relationship with the United States Attorney’s Office and partner with law enforcement agencies to ensure these types of criminals are fully investigated and prosecuted across Mississippi.”
“Former bank officer Michael Erickson was sentenced to 24 months in federal prison for criminally defrauding Southern Bancorp, after the bank received a nearly $34 million TARP bailout,” said Special Inspector General for the Troubled Asset Relief Program Christy Goldsmith Romero. “Instead of acting in the public trust, Erickson used his position at Southern Bancorp to steal thousands of dollars for his own personal enrichment from a commercial loan he managed. I thank the United States Attorney’s Office for Northern District of Mississippi for bringing justice in this case.”
This case was jointly investigated by the FBI and the Special Inspector General for the Troubled Asset Relief Program (SIGTARP). The case was prosecuted by AUSA Clay Dabbs.
Ballantine man sentenced for two attempted bank burglariesRead the Press Release
BILLINGS—A federal judge on Wednesday sentenced a Ballantine man who admitted trying to break into two banks to two years in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Anthony William Felton, 27, pleaded guilty in October to bank burglary.
U.S. District Judge Susan P. Watters presided. Judge Watters will set a hearing to determine restitution.
Prosecutors said the evidence would show that Felton broke into the Beartooth Bank in Billings on Oct. 24, 2017 and tried to break into the ATM machine using a grinder and other tools. He fled before officers responded to the alarm. Officers found a grinder, pocket knife and an extension cord near the ATM. Security footage captured the attempt but was inconclusive about the identity of the suspect, who appeared to avoid the cameras.
A second bank burglary occurred on Dec. 6, 2017 when Felton broke into the Stockman Bank in Worden by breaking an interior door. Felton used an angle grinder to try to access cash in an ATM. He was unsuccessful but caused about $12,000 in damages.
Law enforcement arrested Felton on Dec. 14, 2017 after he was suspected of multiple robberies in the area. A search of his backpack yielded a bandana, a pry bar and bolt cutter. During search of a vehicle Felton was using, officers found a concrete saw that appeared to be the same saw used in the bank burglaries. Felton admitted to law enforcement he attempted to rob both banks.
Assistant U.S. Attorney Zeno Baucus prosecuted the case, which was investigated by the FBI.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Allentown Man Charged with Aggravated Identity Theft and FraudRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that Jose Anico 69, of Allentown, PA was indicted by a federal grand jury and charged with one count of false statements in connection with an application for a passport, one count of aggravated identity theft, five counts of wire fraud, and four counts of health care fraud.
The indictment charges the defendant with acquiring the identifying information of a United States Citizen who was a resident of New York City and who died on August 13, 1999. Anico used the victim’s name, date of birth, and Social Security number for various purposes, including applying for and receiving Social Security Administration benefits, Medicare benefits, a Pennsylvania driver’s license, and a United States passport.
From May 2002 through November 2018, Anico received more than $475,000 in government benefits that he was not entitled to receive under his assumed name.
“Aggravated identity theft and fraud are serious crimes,” said U.S. Attorney McSwain. “My Office is committed to making sure that the personal identifying information of our citizens is protected and not stolen or abused. We are also committed to ensuring that no one steals money or services from the federal government.”
Robert Castro, Resident Agent In Charge of the DSS Philadelphia Resident Office said, “Today’s indictment demonstrates how our presence at more than 275 diplomatic missions worldwide positions us well to target passport fraud and other related crimes with a transnational nexus.”
If convicted, Anico faces a maximum penalty 152 years’ imprisonment, three years of supervised release, forfeiture and restitution, a $2,750,000 fine, and a $1,100 special assessment.
The case was investigated by the U.S. Department of State’s Diplomatic Security Service (DSS) Philadelphia Resident Office in partnership with the DSS Regional Security Office in Santo Domingo, the Social Security Administration, the U.S. Department of Health and Human Services, and the U.S. Department of Homeland Security. It is being prosecuted by Assistant United States Attorney Everett Witherell.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Wednesday 13 February 2019
Worcester Woman Pleads Guilty to Role in Two Methamphetamine ConspiraciesRead the Press Release
BOSTON – A Worcester woman pleaded guilty today in federal court in Worcester to methamphetamine charges.
Mindy Doherty, 35, pleaded guilty to two counts of methamphetamine conspiracy. U.S. District Judge Timothy S. Hillman scheduled sentencing for May 20, 2019.
In 2016, Doherty accepted packages of methamphetamine at her Worcester residence and wired money to an individual in California who was involved in the scheme. Doherty also shipped methamphetamine to Brian Zukowski, a co-conspirator who was in Florida, via Federal Express and U.S. Postal Service Priority Mail. Doherty sold methamphetamine to various individuals in Massachusetts and wired a portion of the proceeds to Zukowski or deposited proceeds into Zukowski’s bank account.
As part of a separate conspiracy, Doherty accepted packages of methamphetamine at her Worcester residence on behalf of another co-conspirator, Adam Germano, and subsequently provided a portion of this methamphetamine to Germano. Doherty traveled with Germano to Texas to acquire methamphetamine, and she carried thousands of dollars of cash on the flight. Doherty also wired money to Germano to be used for the acquisition of methamphetamine in Texas and Nevada. Even after Germano was arrested in March 2017, Doherty continued to distribute methamphetamine in and around Worcester.
Germano and Zukowski have pleaded guilty to methamphetamine-related charges. In November 2018, Zukowski was sentenced to 28 months in prison. Germano is scheduled to be sentenced tomorrow.
Doherty faces a mandatory five years and up to life in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney Bill Abely of Lelling’s Criminal Division is prosecuting the case.
Winter Park Man Charged with over $8 Million in FraudRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Bryan L. Brewer (43, Winter Park) with six counts of wire fraud, four counts of bank fraud, and four counts of money laundering. If convicted, Brewer faces a maximum penalty of 20 years in federal prison for each wire fraud count, up to 30 years’ imprisonment for each bank fraud count, and up to 10 years in prison for each money laundering count.
According to the indictment and information presented in court, Brewer engaged in two fraudulent schemes totaling more than $8 million. In one scheme, Brewer solicited an individual to invest in a company that manufactured paddleboards by the name of USBoardco (also known as WatersEdge). As part of the scheme, Brewer sent the victim copies of bank statements, tax returns, and other financial documents that had been falsified to inflate the sales, profits, income, and bank account balance for the company. In reliance upon those and other misrepresentations, the victim invested over $1 million.
The second scheme involved real estate located in Seminole County, wherein an individual loaned over $4 million to assist Brewer in the purchase of the property in 2012. In return, that individual obtained a mortgage on the property. Brewer later requested a bank to lend money to one of his companies, with the understanding that it would be secured by a mortgage on the same property that was already mortgaged. To induce the bank to make the loan, Brewer set up a false email account for the individual, who had loaned the money in 2012, which was then used to send the bank a forged letter falsely promising that the individual would release his mortgage for $3.5 million. Relying upon that letter and other misrepresentations, the bank loaned one of Brewer’s companies more than $7 million.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the FBI and the Internal Revenue Service – Criminal Investigation. It will be prosecuted by Assistant United States Attorney Roger B. Handberg.
Web Page Available to Assist Potential Victims of Fraud Related to the Sale of Purportedly Organic Grain in Cases Involving Randy Constant, Tom Brennan, James Brennan, and Mike PotterRead the Press Release
The United States Attorney’s Office for the Northern District of Iowa has established a link on its website and a dedicated telephone line to provide case updates and other information, including assistance in submitting victim impact statements or claims for restitution, for potential victims in the cases involving defendants Randy Constant, Tom Brennan, James Brennan, and Mike Potter and those who purchased organic grain or other products produced with organic grain that was sold through Jericho Solutions between 2010 and 2017.
Under the Crime Victims Rights Act victims of federal crimes have several rights, including: to be notified of certain Court proceedings; to be reasonably heard by the Court; and to submit claims for restitution. Through the website, potential victims will be provided timely and accurate information about the criminal cases and their rights under the law.
Potential victims can view the Victim Witness Assistance link on the United States Attorney’s website to receive updated case information. The website provides victims with information about their statutory rights and includes links to court documents in the case. The website also contains a link to a victim impact statement, through which persons claiming to have been victims of one of the referenced cases can submit a statement to the Court and/or make a claim for restitution. The website may be found at: http://www.justice.gov/usao-ndia/victim-witness-assistance/information-victims-large-cases.
Washington, D.C. Woman Pleads Guilty to Murder in Furtherance of a Conspiracy to Distribute Synthetic Cannabinoids and other Controlled Substances, and to the Drug Distribution ConspiracyRead the Press Release
Greenbelt, Maryland – Carjandario Danielle Yarborough, age 35, of Washington, D.C, pleaded guilty today to conspiracy to distribute and possess with intent to distribute controlled substances and controlled substance analogues, and to murder in furtherance of the conspiracy. She and federal prosecutors also agreed to recommend to the judge that he impose a sentence of 20 years in prison.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Ashan M. Benedict of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Washington Field Division; Special Agent in Charge Jesse R. Fong of the Drug Enforcement Administration - Washington Field Division; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Chief Peter Newsham of the Metropolitan Police Department; and Prince George’s County State’s Attorney Aisha N. Braveboy.
According to her plea agreement, from at least January 1, 2016 through February 9, 2019, Carjandario Danielle Yarborough conspired with others to distribute synthetic cannabinoids, and other controlled substances and controlled substance analogues. Controlled substance analogues are substances that are chemically manufactured to mimic, and create a “high” similar to other drugs. Yarborough and her co-conspirators obtained synthetic cannabinoids, known by various names, including “Salt,” and sold them in Maryland and other locations, including the District of Columbia and Virginia. Yarborough and her co-conspirators obtained cash from the drug sales and possessed firearms in furtherance of the conspiracy. Yarborough and her co-conspirators routinely rented hotel rooms and vehicles to distribute the synthetic cannabinoids.
On September 29 and September 30, 2016, Yarborough and co-conspirator 1, (“CC-1”) rented hotel rooms in Temple Hills, Maryland, to prepare and distribute synthetic cannabinoids. While at the hotel, Yarborough and CC-1 believed that another co-conspirator, Victim 1, had stolen money from them in connection with the sale of synthetic cannabinoids. When CC-1 confronted Victim 1 about the suspected theft, Yarborough stabbed Victim 1 in the chest with a knife, killing him.
After Victim 1 was killed, CC-1 and another co-conspirator removed synthetic cannabinoids and drug proceeds from the hotel room. After the co-conspirators left the hotel room where Victim 1 had been killed, Yarborough called 911 and falsely reported that she had killed Victim 1 in self-defense.
On January 30, 2018, Yarborough and CC-1 sold synthetic cannabinoids to a law enforcement officer. On February 9, 2018, law enforcement executed a search warrant at the residence where Yarborough and CC-1 lived. Law enforcement recovered synthetic cannabinoids intended for distribution, a 9mm pistol, a 25-caliber pistol, and $1,640.79 in cash, which was generated from the sale of synthetic cannabinoids.
Yarborough and the government have agreed that 20 years in prison is the appropriate disposition of this case and will recommend that sentence to the Court. U.S. District Judge Theodore C. Chuang has scheduled sentencing for June 18, 2019 at 9:30.m.
United States Attorney Robert K. Hur commended the ATF, the DEA, the Prince George’s County Police Department, the Metropolitan Police Department, and the Prince George’s County State’s Attorney’s Office for their work in the investigation and recognized U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore and the Arlington County Police Department for their assistance. Mr. Hur thanked Assistant U.S. Attorneys William D. Moomau and Gregory D. Bernstein, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
# # #
Vineland Boys Street Gang Targeted in Federal Racketeering Indictment that Alleges Violence, Extortion and Narcotics TraffickingRead the Press Release
LOS ANGELES – Law enforcement authorities this morning arrested 25 members and associates of the San Fernando Valley-based Vineland Boys street gang who are charged in five federal grand jury indictments that allege a wide range of criminal activity, including shootings and assaults that targeted rivals, extortion and methamphetamine trafficking.
The five indictments charge a total of 45 defendants. The main indictment alleges that 31 Vineland Boys members and associates participated in a criminal enterprise and conspired to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act. To consolidate control over their “territory” in Sun Valley, North Hollywood and Burbank, the gang shot and brutally assaulted rival gang members, controlled and conducted drug and firearms trafficking activity, and extorted money in the form of “taxes” from drug dealers, and trafficked narcotics, the indictment alleges.
The RICO indictment details numerous violent incidents involving the gang, including an April 2016 incident where a rival gang member was shot on Lankershim Boulevard. The investigation revealed that the gang was heavily armed and often engaged in illegal firearm sales. One non-gang defendant allegedly manufactured “ghost guns” – AR-15-type weapons with no serial numbers, which makes them untraceable – that were sold to the gang to use in crimes because so many members were prohibited from legally purchasing firearms due their prior felony convictions.
The RICO indictment unsealed today detail multiple narcotics transactions, including two that each involve approximately two pounds of methamphetamine.
The other four indictments cumulatively charge 14 other defendants with supplying methamphetamine to the Vineland Boys, with some transactions taking place near an elementary school.
Today’s arrests come 14 years after law enforcement severely disrupted the Vineland Boys with a series of federal indictments that came in the wake of the 2003 murder of Burbank Police Officer Matthew Pavelka and the attempted murder of his partner, Detective Greg Campbell. Those indictments resulted in more than four dozen convictions, and led to two defendants receiving sentences of life without parole in federal prison.
“Our first attack on this street gang dealt a punishing blow to its operations and sent a message that law enforcement would not tolerate their violent acts and drug trafficking,” said United States Attorney Nick Hanna. “Unfortunately, a new generation of gangsters has come of age and tried to revive the organization’s control of drug trafficking through violence. This takedown will provide significant relief to the law-abiding residents of the east San Fernando Valley, and it sends a strong message to the gang that we will continue our efforts to crush their organization until they no longer pose any threat.”
“The tools of the gang trade are intimidation, violent crime and extortion,” said Paul Delacourt, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “By announcing these distinct operations with our law enforcement partners, we hope to show that these tactics – and these gangs – are not tolerated in Los Angeles.”
“The Los Angeles Police Department is extremely grateful for the culmination of a collaborative task force with our federal partners that led to a well-planned, comprehensive and strategic operation,” said LAPD Assistant Chief Robert Arcos. “Today’s arrests focused on individuals who not only committed extremely violent crimes, but who also have been involved in violent attacks against innocent people in our communities. The Los Angeles Police Department stands committed, with our federal partners, to continue to reduce violent crime in Los Angeles, and to interrupt organizations and apprehend those responsible.”
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.
The 25 defendants arrested today are scheduled to make their initial court appearances this afternoon in United States District Court.
In addition to the today’s arrests, 11 defendants were already in custody. Authorities are continuing to search for nine fugitives, four of whom are believed to be currently in Mexico.
The investigation targeting the Vineland Boys was conducted by the Federal Bureau of Investigation, the Los Angeles Police Department and IRS Criminal Investigation.
The case is being prosecuted by Assistant United States Attorney Jennifer Chou of the Violent and Organized Crime Section.
Versailles Man Convicted of Possessing Sexually Explicit Images of ChildrenRead the Press Release
LEXINGTON, Ky. – A Versailles, Kentucky man was convicted today, by a federal jury sitting in Lexington, of possessing sexually explicit photos of children.
After a brief deliberation following a two-day trial, the jury convicted 54-year-old Scott W. Sulik of one count of knowing possession of sexually explicit images of prepubescent minors.
According to the evidence presented at trial, Sulik was living in Versailles on January 10, 2018, when representatives of law enforcement searched his home for evidence relating to threatening emails that Sulik had sent to a United States Congressman. An examination of the evidence found during that search revealed that Sulik had downloaded and saved sexually explicit photos of children on a laptop and smartphone.
Sulik previously pleaded guilty to one count of cyberstalking, arising from the threats he had emailed to the Congressman. He is currently serving a 48-month term of imprisonment on that charge.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Matthew R. Verderosa, Chief of the United States Capitol Police, jointly announced the verdict. The investigation was conducted by the United States Capitol Police. The United States was represented by Assistant United States Attorney Andrew T. Boone.
Sulik will appear for sentencing on May 24, 2019. He faces a maximum of 20 years in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal statutes before imposing a sentence.
Undocumented Alien Sent to Prison for Illegally Entering the United StatesRead the Press Release
CORPUS CHRISTI, Texas - A 38-year-old Mexican national has been sentenced to federal prison following his conviction of illegal re-entry into the United States after deportation, announced U.S. Attorney Ryan K. Patrick. Isidro Rodriguez-Toscano pleaded guilty Oct. 23, 2018.
“We must have secure borders,” said Patrick. “Foreign nationals previously deported or that have a criminal history are not permitted entry into our country. We have been and will continue to be a leader in prosecuting these types of cases and thank our hard-working law enforcement partners who bring illegal re-entry cases to us for prosecution.
At the hearing today, U.S. District Judge Hilda G. Tagle ordered Rodriguez-Toscano to prison for 46 months in federal prison. The court heard evidence of his convictions for aggravated robbery, felony theft and assault. He was also previously convicted for the same offense - illegal re-entry - in December 2009 and was sentenced to 70 months, later deported and not permitted to return to the United States.
However, in August 2018, A Texas Department of Public Safety (DPS) trooper had conducted a traffic stop for a defective taillight near Riviera. Rodriguez-Toscano was the driver of that vehicle and determined to be illegally present in the country.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection and DPS conducted the investigation. Assistant U.S. Attorney Reid Manning is prosecuting the case.
Two More Opioid Dealers Sentenced for Their Roles in Elmira Drug Trafficking RingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Robert J. Elford, 30, of Oneida, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of a fentanyl analogue, was sentenced to serve 121 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr. In addition, Judge Geraci sentenced Deven Hill, 25, of Elmira, NY, to serve 37 months in prison for his conviction on a charge of conspiracy to possess with intent to distribute, and to distribute, a fentanyl analogue.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that both defendants were part of a large-scale opioid manufacturing and trafficking organization that operated in the Southern Tier of New York between 2015 and May 2017. As members of the organization, Elford and Hill were street-level dealers of blue pills containing furanyl fentanyl in the Elmira area. The blue pills were manufactured by the leaders of the organization – Robert Ian Thatcher and Maximillian Sams – and made to look like legitimate 30 milligram Percocet pills.
Elford and Hill each admitted to selling pills to various customers, including a 25 year-old male who ultimately died of drug overdose from using the pills.
To date, 16 members and associates of the opioid manufacturing and trafficking operation have been convicted of federal narcotics offenses. Four defendants have been sentenced: Thatcher was sentenced to serve 23 years in federal prison; Thatcher’s girlfriend, Amber Bates, who was convicted of money laundering conspiracy, was sentenced to five years probation to include six months of home detention; Edward Barrett was sentenced to 90 months in prison; Dusty Pemberton was sentenced to 70 months in prison; and Isaiah McLaurin, who was convicted of witness tampering after threatening an individual working with the Drug Enforcement Administration on Facebook, was sentenced to serve 57 months in federal prison.
Today’s sentencings are the result of an investigation by the Drug Enforcement Administration, Rochester Resident Office and Scranton PA Resident Office, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the New York State Police, Community Narcotics Enforcement Team Southern Tier, under the direction of Major Mary Clark and Lieutenant Kevin P. Sucher; the Elmira Police Department, under the direction of Chief Joseph Kane; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Pennsylvania State Police, under the direction of Acting Commissioner Lieutenant Colonel Robert Evanchick; the Chemung County Sheriff’s Office, under the direction of Christopher J. Moss; the Iredell, NC County Sheriff’s Office, under the direction of Darren E. Campbell; and Customs and Border Protection Air and Marine Unit, under the direction of Director Brian Manaher. Additional assistance was provided by the Northeast Regional Laboratory.# # # #
Two Individuals Sentenced for Hobbs Act Robbery That Resulted in MurderRead the Press Release
SAN JUAN, Puerto Rico – U.S. District Court Judge Francisco A. Besosa sentenced Jonathan Valentin-Santiago to 34 years in prison and Rubén Miró-Cruz to 24 years and six months in prison for their participation in the Hobbs Act robbery that resulted in the murder of a Police of Puerto Rico officer, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
On September 11, 2017, Jonathan Valentin-Santiago and Rubén Miró-Cruz approached Herol Café, also known as “La Tumba” in Ponce, PR, and announced a robbery to four men sitting outside the establishment. The co-defendants brandished a knife and a gun and they took money and jewelry from the four individuals and from the business while Cristian Serrano-Delgado, the third co-conspirator, waited outside by his car, a BMW.
Later, an adult male, an off duty Police of Puerto Rico officer, who was inside the establishment discharged his firearm at one of the defendants who returned fire and mortally wounded the police officer. After shots were fired, Serrano-Delgado drove his co-defendants away from the scene.
In December of 2018, after an eight-day jury trial, a jury found Cristian Serrano-Delgado guilty of Hobbs Act robbery and murder. His sentencing is scheduled for March 18, 2019. Serrano-Delgado faces a minimum of ten years up to life imprisonment. Valentin-Santiago had plead guilty on November 8, 2018 and Rubén Miró-Cruz had plead guilty on October 16, 2018.
“I hope that these sentencings will help the victim’s family find some closure,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We will continue to work diligently to prosecute violent criminals to the fullest extent of the law. Senseless acts of violence which threaten our communities and innocent victims will not be tolerated.”
Assistant U.S. Attorney Alexander Alum and Special AUSA Omar Barroso were in charge of the prosecution of this case. The FBI and the Puerto Rico Police Department were in charge of the investigation.
# # #
Two Individuals Arrested for Carjacking, Hobbs Act, and Firearms OffensesRead the Press Release
On February 7, a federal grand jury returned an 18-count indictment against two individuals for carjacking, kidnapping, interference with commerce by robbery (Hobbs Act), and possessing and brandishing a firearm in furtherance of a crime of violence, announced United States Attorney Rosa Emilia Rodríguez-Vélez.
The indictment alleges that on January 21, in the District of Puerto Rico, Miguel Ángel Rivera-Rivera and Chris Joanny Goenaga-Ortiz, aiding and abetting each other, possessing and brandishing firearms, took a Ponce taxi, that is a red 2002 Toyota Corolla, from an adult male victim, a taxi driver, by force, violence, and intimidation, with the intent to cause death and serious bodily harm. The defendants kidnapped the victim and held him against his will for hours. On January 25, the same defendants robbed fast food restaurant Little Caesars in Bairoa Shopping Center in Caguas. The defendants were arrested by Puerto Rico Police officers in the carjacked taxi while fleeing from the Little Caesar’s robbery.
Defendant Miguel Ángel Rivera-Rivera is also charged with several robberies while carrying and brandishing a firearm, on the following dates: January 11, Burger King at Las Americas Avenue in Ponce; January 14, Burger King in Villalba; January 15, Chinese fast food restaurant Mr. Wu’s in Juana Diaz; January 16, Burger King in Juana Diaz and KFC-Kentucky Fried Chicken in La Rambla in Ponce; and January 18, Toral Gas Station in Calle Comercio, Ponce. Rivera-Rivera is also facing a charge for being a convicted felon in possession of a firearm.
The case is being prosecuted by Assistant United States Attorney Jenifer Y. Hernández-Vega. The FBI and Puerto Rico Police Department are in charge of the investigation. If convicted, the defendants face up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
# # #
Turkish Man Faces Extradition for Attempted Murder ConvictionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Samet Cekic, 34, of Greece, NY, was arrested pursuant to a fugitive complaint filed by the United States Attorney Office, fulfilling obligations pursuant to an extradition treaty which exists between the United States and Turkey.
Assistant U.S. Attorney Douglas E. Gregory, who is handling the proceedings, stated that, according to information provided by the Government of Turkey, Cekic was previously convicted of Attempted Intentional Killing under Turkish Law. That conviction stemmed from an incident which occurred on September 22, 2006, in the Province of Corum, District of Alaca, Turkey, during which defendant was alleged to have engaged in a fight during which he stabbed an individual multiple times with a knife, causing life-threatening injuries. On July 2, 2008, defendant was sentenced to serve five years and seven months in prison. However, he ultimately failed to appear to serve that sentence. The defendant was located Tuesday by the United States Marshals service as he left his residence in Greece. Pursuant to the Treaty, the Government of Turkey submitted a formal request through diplomatic channels for the extradition of Cekic, so that he may serve the previously imposed sentence.
Cekic’s arrest is the result of the efforts of the U.S. Marshals Service, under the direction of Marshal Charles Salina.
The defendant made an initial appearance before U.S. Magistrate Judge Marian W. Payson and was detained.
Torrington Man Sentenced to Federal Prison for Illegally Manufacturing and Selling Machine GunsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that SEAN DEY, 40, of Torrington, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 24 months of imprisonment, followed by 12 months of home confinement and three years of supervised release, for illegally manufacturing and selling machine guns.
According to court documents and statements made in court, between July 2017 and April 2018, Dey manufactured machine guns, including AK-47-style and AR-style machine guns, suppressors, and other firearms. Dey entered into an agreement with George Jaiman, of Bridgeport, to sell machine guns, suppressors and firearms to third parties for profit. Neither Dey nor Jaiman possessed a valid license to deal firearms.
On March 28, 2018, in Bridgeport, Jaiman possessed an AK-47 style machine gun and an AR-style machine gun bearing a suppressor, neither of which had a serial number.
On April 3, 2018, Dey transferred an AR-style machine gun, which he had manufactured, to another individual for cash.
Dey was arrested on April 11, 2018. On October 25, 2018, he pleaded guilty to one count of conspiracy to engage unlawfully in the business of selling firearms, and one count of unlawful possession and transfer of a machine gun.
On October 26, 2018, Jaiman pleaded guilty to one count of unlawful possession of a machine gun. He awaits sentencing.
Dey, who is released on a $150,000 bond, is required to report to prison on March 29.
Judge Thompson ordered Dey to perform 100 hours of community service when he is released from prison.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Tobacco Wholesaler Sentenced to 3 Years for Defrauding Connecticut of $5.8 Million in TaxesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RISHI MALIK, 46, a citizen of India residing in Fairfield, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to three years of imprisonment, followed by three years of supervised release, for defrauding the State of Connecticut of more than $5.8 million in taxes due on tobacco products imported into the state.
According to court documents and statements made in court, the State of Connecticut imposes tax on tobacco products imported into Connecticut for distribution within Connecticut. Tobacco amounts purchased, and taxes due, are reported on Forms OP-300, which are filed with the Connecticut Department of Revenue Services.
For several years until 2012, Malik and a partner operated Connecticut Discounts LLC, a tobacco wholesale business based in Bridgeport. Through that company, Malik obtained tobacco products from out-of-state suppliers and distributed the products to a network of clients who offered tobacco products for retail sale. While operating Connecticut Discounts, Malik caused OP-300 forms to be filed with the Connecticut Department of Revenue Services, which underreported the amount of tobacco he imported into the state for distribution.
In June 2012, Malik sold Connecticut Discounts to Pavan Vaswani, who continued the tobacco wholesale business under the name KDV Discounts, LLC. From approximately June 2012 to April 2017, Malik frequently assisted Vaswani in importing tobacco products from out-of-state suppliers, including suppliers in Pennsylvania. Malik frequently drove to Pennsylvania to pick up products that he delivered to KDV in Connecticut. He also participated in making orders, and sometimes delivered payments in cash.
Between January 2013 and April 2017, KDV acquired almost $12 million in tobacco products, primarily cigars and other products, from suppliers in Pennsylvania, and distributed these products to hundreds of customers in Connecticut that stocked tobacco products for retail sale. On the OP-300 forms that Vaswani filed with the Department of Revenue Services on behalf of KDV, the amounts reported were a small fraction of what KDV actually acquired. Through this scheme, Vaswani failed to report approximately $5,821,057 in tax to the State of Connecticut.
In 2014, Malik registered Discount Deals, LLC, with an address in Sciota, Pennsylvania. Malik held out Discount Deals to be a tobacco distribution business. However, the unit he rented was not a space for a legitimate tobacco business and was maintained to create the appearance that Discount Deals was a legitimate Pennsylvania-based tobacco wholesaler. Between 2014 and at least April 2017, to subvert other federal regulations regarding interstate transport of smokeless tobacco, Malik used Discount Deals to purchase more than $1.1 million in smokeless tobacco products from Pennsylvania suppliers. A substantial amount of these smokeless tobacco products were provided to KDV for distribution in Connecticut. Discount Deals made no tax payments to the State of Connecticut between 2014 and 2017, and approximately $400,000 in smokeless tobacco tax was not reported to Connecticut or other states.
Malik and Vaswani were arrested on January 11, 2018.
Judge Hall ordered Malik to pay restitution of $5,821,057.
On October 30, 2018, Malik pleaded guilty to one count of conspiracy to commit wire fraud and to violate the Contraband Cigarette Trafficking Act (“CCTA”), and one count of wire fraud.
On August 21, 2018, Vaswani, of West Haven, pleaded guilty to the same offenses. He awaits sentencing.
Malik, who is released on $1.2 million bond, is required to report to prison on March 13, 2019.
Malik faces immigration proceedings when he completes his prison term.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Connecticut Department of Revenue Services, Criminal Investigations Division. The case is being prosecuted by Assistant U.S. Attorneys Jennifer R. Laraia and Michael S. McGarry.
Tifton Defendant Pleads Guilty on Drug Charge, Hauling Kilos of Meth, Cocaine on I-75Read the Press Release
MACON – A Tifton woman pled guilty Wednesday on a drug charge after she was arrested carrying four kilos of meth and cocaine in her car with the intent to distribute the illegal drugs, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Anna Maria Lopez-Vazquez, 32, of Tifton, GA entered a guilty plea to one count Possession with Intent to Distribute Methamphetamine before the Honorable Marc Treadwell in Macon federal court on February 13, 2019. This charge carries a penalty of ten years up to life in prison, a $10 million fine, and five years supervised release. A sentencing date for Ms. Lopez-Vasquez has not been scheduled.
According to her signed plea agreement, on May 18, 2017, Anna Maria Lopez-Vasquez was driving a Yukon SUV southbound on I-75 in Peach County, Georgia. She was accompanied by a passenger, who was not charged in this crime. A Peach County deputy on patrol in the area spotted the SUV with an obscured license and failing to maintain its lane of traffic, both traffic infractions in Georgia. During the traffic stop, the deputy smelled a strong odor of marijuana. Following a legal search of the vehicle, 2,942 grams of methamphetamine and 999 grams of cocaine were found in three containers, sealed with plastic wrap, hidden inside a sports bag. Ms. Lopez-Vasquez and the passenger were arrested. In a post-arrest interview, Ms. Lopez-Vasquez admitted that the drugs belonged to her. She denied any involvement by the passenger.
“Methamphetamine is one of the most addictive, destructive drugs of our day, and people who profit from its sale will be caught and held accountable in the Middle District of Georgia,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “Getting this volume of illegal drugs off the streets saved countless lives. I am grateful for the good work of our local law enforcement teams who continue to do everything in their power to stop the distribution of meth into our communities.”
The case is being investigated by The Drug Enforcement Agency and the Peach County Sheriff’s Office. Assistant U.S. Attorney Charles Calhoun is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Three Lockport Residents Charged with Distributing Heroin and Fentanyl That Led to the Death of One and Serious Injury to AnotherRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Bruno J. Haney, II, 29, Marissa L. DeCarlo, 26, and James O. White, 27, all of Lockport, NY, were arrested and charged by criminal complaint with conspiracy to possess with intent to distribute, and to distribute, heroin, butyryl fentanyl, and fentanyl that resulted in serious bodily injury and death. The charge carries a mandatory minimum penalty of 20 years in prison and a maximum of life.
Assistant U.S. Attorney Patricia Astorga, who is handling the case, stated that according to the complaint, in the early morning hours of March 25, 2017, officers from the Medina, NY Police Department found an individual identified as W.S. unresponsive and in cardiac arrest. W.S. later died. Officers recovered three small, clear, zip lock baggies containing a powder residue and a hypodermic needle in W.S.'s pant pockets. A subsequent analysis determined the substance contained heroin and fentanyl. The coroner ruled that the cause of death was the combined effects of fentanyl and alcohol.
Text messages retrieved from the cellular telephone of W.S. show that on the evening of March 24, 2017, W.S. ordered a half of a “bun,” which is street slang for half of a bundle of heroin from a contact saved on W.S.'s cellular phone as “James,” which was determined to be defendant James White.
Subsequent to W.S.’s death, law enforcement officers, in June 2017, conducted two controlled buys of half a bundle of heroin from White. During each of those purchases, White left his Caledonia Street residence and went to Haney’s Prospect Street residence. Additionally, in April and June 2017, law enforcement officers conducted three controlled purchases from Haney at his Prospect Street residence that he shared with DeCarlo. On June 16, 2017, members of the Niagara County Drug Task Force and the Drug Enforcement Administration executed a search warrant at Haney and DeCarlo’s residence. Officers recovered a quantity of butyryl fentanyl, $515.00 in U.S. currency, and drug packaging paraphernalia. In June and July of 2018, law enforcement officers made three additional controlled buys of heroin and fentanyl from Haney.
On October 09, 2018, the Lockport Police Department responded to a report of an overdose. Officers located an individual, identified as J.B., who was unresponsive with shallow breathing. Patrol officers administered two doses of Narcan and J.B. began making attempts to breathe. J.B. was transported by ambulance to the hospital for further medical treatment. J.B. later told officers that she overdosed on what she thought and was told was heroin, which she purchased from Haney. DeCarlo was present during that purchase.
On January 14, 2019, Haney was indicted in Niagara County Court for three counts of Criminal Possession of a Controlled Substance 3rd and three counts of Criminal Sale of a Controlled Substance 3rd. He was arrested on January 18, 2019. During a search of a residence on East Avenue in Lockport, officers recovered a quantity of a mixture of heroin and fentanyl, a quantity of fentanyl, a quantity of marijuana, $978 in U.S. currency, and drug packaging paraphernalia.
While in custody in the Niagara County Jail, Haney made several phone calls to DeCarlo directing her to collect money owed to Haney for drug transactions. The two also discussed Haney’s source of supply and how to proceed with their narcotics activity.
On January 24, 2019, the Niagara County Drug Task Force received an online complaint that Haney was out on bail and was again selling narcotics at his residence on East Avenue.
White was arrested on January 22, 2019, by the Orleans County Major Felony Crime Task Force and charged with felony manslaughter in the second degree. While incarcerated at the Orleans County Jail, White made a phone call to an unknown individual, during which he stated, “they are trying to say that back in 2017 I caught a body.” White further stated that he got “him” (W.S.) half a bundle from Bruno.
The complaint is the result of an investigation by the Niagara County Drug Task Force and the Niagara County Sheriff’s Department, under the direction of Sheriff James Voutour; the Niagara County District Attorney’s Office, under the direction of District Attorney Caroline A. Wojtaszek; the Orleans County Major Felony Crime Task Force, under the direction of Sheriff Randy Bower; the Orleans County District Attorney’s Office, under the direction of District Attorney Joseph V. Cardone; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; and the Lockport Police Department, under the direction of Chief Steven Preisch.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Tennessee Man Sentenced to 300 Months for Crossing State Line to Engage in Sex with a MinorRead the Press Release
FRANKFORT, Ky. — Billie Gene Spears, 47, of Jacksboro, Tennessee, was sentenced today to 300 months (25 Years) in federal prison, by United States District Judge Gregory F. Van Tatenhove, for crossing a state line with the intent to engage in a sexual act with a person who was under 12 years of age.
Late last year, Spears admitted that, in October of 2017, he traveled from Tennessee to Franklin County, Kentucky, with the intent to engage in a sexual act with a minor who was less than 12 years old. Spears had posted an internet ad, to which an undercover investigator with the Kentucky Attorney General’s Office responded. During the ensuing communications between the investigator and Spears, Spears unequivocally indicated that he was intending to have sex with the investigator’s fictitious 9 year-old daughter. On October 21, 2017, Spears was met by the investigator and other law enforcement officers, at a pre-arranged location in Franklin County, where he was arrested.
Under federal law, Spears must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for 20 years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Richard F. Ferretti, Special Agent in Charge, United States Secret Service; and Andy Beshear, Kentucky Attorney General, jointly made the announcement.
The investigation was conducted by the U.S. Secret Service and the Cyber Crimes Branch of the Kentucky Office of Attorney General. The United States was represented by Assistant United States Attorney David A. Marye.
Tampa Man Caught in Undercover Sting Sentenced to 15 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung has sentenced Steven Weaver, II (38, Tampa) to 15 years in federal prison for possessing a firearm as a convicted felon. Weaver had pleaded guilty on November 1, 2018.
According to court documents, over the course of several months, Weaver sold undercover agents cocaine, ammunition, and at least 11 firearms. Weaver had reason to believe that the firearms would be trafficked to and resold in other markets, including New York City. Weaver’s criminal history includes cocaine trafficking, aggravated battery with a deadly weapon, and other firearm-related offenses.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Frank Murray.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Tabor City Man Sentenced to 14 Years in Prison for Drug Trafficking & Money Laundering OffensesRead the Press Release
GREENVILLE – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that Senior United States District Judge Malcolm J. Howard sentenced JUSTIN LEE MYERS, 34, of Tabor City, North Carolina, to 168 months in prison, followed by four years of supervised release.
MYERS was charged as part of a 22-count Indictment filed on November 19, 2017 naming 8 defendants. On February 5, 2018, MYERS pled guilty to Conspiracy to Distribute and Possess with Intent to Distribute Cocaine Base (Crack), Heroin, Fentanyl, and Marijuana, and to Conspiracy to Commit Money Laundering.
Beginning in December 2008, Columbus County Sheriff’s Office (CCSO) in Tabor City, North Carolina, responded to calls involving the MYERS Drug Trafficking Organization (DTO) regarding various criminal and drug related activity in an area known as the “Sandpit.” The Sandpit consisted of approximately 25 mobile homes reachable after passing through a manned checkpoint. Investigation determined that the checkpoint was established as a lookout for law enforcement, and to protect the area from rival drug dealers. The checkpoint was normally manned by one to two armed members of the DTO.
Wire intercepts, confidential informants (CIs), and surveillance confirmed that the MYERS DTO primarily operated in Columbus County. From February 2017 to May 2017, CIs were utilized to conduct a series of controlled purchases from members of the DTO. Witness statements and subsequent wire intercepts, which spanned from May 2, 2017, to June 8, 2017, determined that MYERS supplied the heroin, cocaine, crack, and marijuana, in addition to directing his co-conspirators. Furthermore, the wire intercepts revealed that MYERS and others had attempted to launder the proceeds of their drug trafficking.
MYERS purchased a 2014 Corvette from Everett Chevrolet in Hickory, NorthCarolina, for $67,634, a 2014 Porsche from Island Chrysler in Pawley’s Island, South Carolina, for $77,983 and several other vehicles claiming his income as legitimate as the owner/operator of Monte Cutz Barber Shop.
This prosecution is part of an extensive investigation by the United States Attorney’s Office’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
This case was investigated by the Columbus County Sheriff’s Office, the Internal Revenue Service-Criminal Investigation, and the Wilmington Office of the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Bradford Knott.
St. Louis Man Sentenced for Carjacking and Robbing a 7-11 StoreRead the Press Release
St. Louis, MO – Jevantae Phillips, 22, St. Louis, was sentenced to 11 years in prison for carjacking, brandishing a firearm during a federal crime of violence and robbery charges. He appeared in federal court today before U.S. District Judge Ronnie L. White.
According to court documents, on October 17, 2017, officers of the St. Louis Metropolitan Police Department responded to 3880 Meramec, after a report of a robbery/carjacking at that location. The victim was located and she said she had been in her 2002 Pontiac Aztek, traveling east in the 3800 block of Meramec. She stated she stopped at the curb to make a call on her cellular phone. While doing so she heard a knock at her driver’s window. She then looked over and observed a male standing at the driver’s door with a military style weapon brandished at her. She opened the door and attempted to hand over her purse; the suspect refused the purse, and ordered her out of the vehicle.
When she complied, Phillips entered the driver’s seat. She additionally observed the passenger door closing. Ahmaad Ali, the second suspect, entered the passenger side of her vehicle.
The vehicle then fled east on Meramec. The stolen vehicle contained her purse, which held personal items, and her driver’s license. Her vehicle additionally contained a GoGo Sport scooter, which was located in the rear of the vehicle.
On October 18, 2017, Phillisp, along with co-defendants Ahmaad Ali and Travion Lindsey, all armed with firearms entered the 7-11 store located on Christy Avenue in South St. Louis. The three arrived at the 7-11 in the Pontiac Aztek that had been stolen one day earlier at gunpoint by Ali and Phillips. They entered the store brandishing their firearms and wearing masks. One walked around the counter and began stealing lottery tickets and money from the cash register. He was armed with a black long barrel pistol grip firearm. A second male jumped over the counter and began removing the cash register. He was armed with a black handgun, containing an extended magazine. The third male stood guard at the door and eventually walked over the counter and assisted in removing currency. He was armed with a black handgun, which he held in his left hand the entire time. After two minutes inside of the store, the three ran out of the store taking liquor bottles, cigarettes, and candy on their way outside. The males then re-entered the Aztec and fled the area northbound, out of sight.
Co-defendants Ali and Lindsey are scheduled to be sentenced May 8, 2019 and April 10, 2019, respectively.
This case is being investigated by the Federal Bureau of Investigation and assisted by the St. Louis Metropolitan Police Department. Assistant U.S. Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.
St. John Man Sentenced to Six Months for Smuggling Four Illegal Aliens from Tortola to the U.S. Virgin IslandsRead the Press Release
St. Thomas, USVI – Brice Todman, 36, of St. John, was sentenced today in District Court before District Court Judge Curtis V. Gomez on a charge of bringing illegal aliens into the United States, United States Attorney Gretchen C.F. Shappert announced. District Court Judge Curtis V. Gomez sentenced Todman to six months incarceration followed by three years supervised release. Judge Gomez ordered that Todman pay a $100 special assessment, forfeit the $4,000 paid to him by the illegal aliens and the vessel used to bring the illegal aliens into the Virgin Islands.
According, to court documents, on October 21, 2018 at approximately 9:00 p.m., U.S. Customs and Border Protection (CBP) Air and Marine Operations (AMO) apprehended a Virgin Islands-registered vessel in the area of North Haulover Bay, St. John after agents observed that the vessel was operating with no lights. After AMO agents stopped the vessel, they observed five male individuals on board. Todman was identified as the captain and the other four male individuals were from the Dominican Republic, Argentina and Venezuela and did not have permission to be in the United States. Two of the four illegal aliens admitted to agents that they had paid Todman $ 1,000 to transport them from Tortola, BVI to St. John.
The case was investigated by Homeland Security Investigations (HSI) and U.S. Customs and Border Protection Air and Marine Unit (AMO) and prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Sierra Pacific Mortgage Agrees to Pay $3.67 Million to Resolve False Claims Act Allegations Related to the FHA Loan ProgramRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney McGregor W. Scott announced today that Sierra Pacific Mortgage Company Inc. (SPM), a national mortgage lender headquartered in Folsom, has agreed to pay the United States $3,670,000 to resolve allegations that it violated the False Claims Act by falsely certifying compliance with Federal Housing Administration (FHA) mortgage insurance requirements in connection with certain loans.
During the time period covered by the settlement, SPM participated as a direct endorsement lender (DEL) in the U.S. Department of Housing and Urban Development’s FHA insurance program. A DEL has the authority to originate, underwrite, and endorse mortgages for FHA insurance. If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD for the resulting losses. DELs are required to follow program rules designed to ensure they are properly underwriting and certifying mortgages for FHA insurance and to maintain a quality control program that can prevent and correct deficiencies in their underwriting practices.
The United States alleged that between April 2007 and June 2009, SPM knowingly submitted loans for FHA insurance that did not qualify. The United States further alleged that SPM failed to properly respond to internal warning signs that its loans were poorly underwritten and failed to properly implement a quality control program once it was aware of those warning signs.
The False Claims Act allows the government to recover damages and penalties for the presentation of false claims for payment to the United States. By improperly approving loans that did not qualify for FHA insurance, SPM caused the United States to pay insurance claims on those loans when they defaulted.
“When mortgage companies fail to follow lending standards, it harms both taxpayers and borrowers,” said U.S. Attorney Scott. “We will continue to work with HUD/FHA and our law our law enforcement partners to ensure the integrity of the FHA insurance program.”
“The wrongful actions of SPM were not minor mistakes or foot faults. There is no room at FHA for lenders who knowingly violate the trust placed in them as direct endorsement lenders,” HUD General Counsel Paul Compton said.
Assistant Special Agent in Charge Tony Meeks, HUD-Office of Inspector General, added, “When unscrupulous lenders deliberately ignore HUD guidelines, it undermines the housing market and creates distrust between potential home buyers and federal programs designed to assist them. Our office is committed to ensuring the FHA insurance program will not be mismanaged, and we are committed to pursuing all acts of fraud, waste and abuse.”
This settlement was the result of a joint investigation conducted with HUD’s Office of Inspector General. Assistant U.S. Attorney Colleen M. Kennedy handled the case for the United States. The claims settled by this agreement are allegations only and there has been no determination of liability.
Shreveport felon sentenced to 46 months in prison for possessing revolverRead the Press Release
SHREVEPORT, La. – Roderick Charles Scott, 43, of Shreveport, was sentenced Tuesday by U.S. District Judge S. Maurice Hicks Jr. to three years and 10 months in prison followed by three years of supervised release for being a felon in possession of a firearm, announced U.S. Attorney David C. Joseph.
Shreveport police responded to a shooting on June 23, 2017 in the Hollywood area and observed Scott entering a home on Miles Street, according to the guilty plea. When Scott exited the house, he had a Rossi .38 special caliber revolver clenched in his right hand. Police officers confiscated the gun and arrested Scott.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. In 2004, Scott was convicted in the Western District of Louisiana for being a felon in possession of ammunition. Roderick Scott was indicted on June 27, 2018 and pleaded guilty on October 11, 2018.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The ATF and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Aaron J. Crawford is prosecuted the case.
Seven More Defendants Sentenced for Participating in Schemes Related to Defrauding Health Care Benefit Programs, Unlawful Dispensing of Opioids, and Money LaunderingRead the Press Release
Seven defendants, in multiple cases, have been sentenced for their roles in schemes related to defrauding health care benefit programs, unlawful dispensing of opioids, and money laundering.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Jimmy Patronis, Florida Chief Financial Officer; Michael J. Waters, Special Agent in Charge, Amtrak Office of Inspector General (Amtrak-OIG); Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA); and Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), made the announcement.
Dr. Arman Abovyan and Tina Marie Barbuto (Case No. 18cr80122)
Dr. Arman Abovyan, 44, of Boca Raton, was sentenced today to 135 months in prison, to be followed by three years of supervised release, and was ordered to pay $1,058,097.88 in restitution. He was previously convicted at trial of one count of conspiracy to commit health care fraud; one count of conspiracy to possess, distribute, and dispense controlled substances; and seven counts of unlawfully dispensing controlled substances. On January 24, 2019, co-defendant Tina Marie Barbuto, 39, of Boca Raton, was sentenced to 36 months in prison, to be followed by three years of supervised release, and was ordered to pay $3,132,806.13 in restitution. She previously pled guilty to one count of conspiracy to commit health care fraud.
Abovyan, a licensed medical doctor in the State of Florida, was the Medical Director of Journey to Recovery (Journey) in Boca Raton and Reflections Treatment Center (Reflections) in Margate from July 2016 to December 2016. As medical director, Abovyan was responsible for evaluating patients, developing appropriate plans of treatment, and prescribing medically necessary treatment and testing. Barbuto served as the Assistant Clinical Director of Reflections from December 2015 to November 2016, and served as the Clinical Director of Reflections from November 2016 to December 2016. As Clinical Director, Barbuto was responsible for supervising clinical services, including regularly reviewing the work performed by subordinate employees.
The co-defendants established sober homes that were purportedly in the business of providing safe and drug-free residences for individuals suffering from drug and alcohol addiction. To obtain residents for the sober homes, members of the conspiracy provided kickbacks and bribes, in the form of free or reduced rent and other benefits, to individuals with insurance who agreed to reside at the sober homes, attend drug treatment, and submit to regular drug testing that members of the conspiracy could bill to the residents’ insurance plans. Although the sober homes were purportedly drug-free residences, some of the defendants permitted the residents to continue using drugs as long as they attended treatment and submitted to drug testing.
Abovyan and Barbuto’s co-conspirators, who owned, operated and managed sober homes, referred the residents with insurance to become patients at Journey and Reflections, in return for kickbacks and bribes which were often disguised as marketing fees, consulting fees, commissions, and case management fees. Barbuto and co-conspirators caused confirmatory testing to be performed and testing and substance abuse treatment to be billed for patients knowing that the patients had been discharged or had left the treatment centers and were no longer receiving treatment or submitting bodily fluid samples for testing at the treatment centers. Abovyan ordered drug testing for the treatment center patients, regardless of whether such testing was medically necessary or conducted and billed in compliance with the terms of the insurance plans; electronically signed hundreds of lab test results for Reflections' patients falsely certifying that he had reviewed the results and the statements of medical necessity for the lab testing; and provided blank, pre-signed prescriptions to other individuals who were not certified to prescribe controlled substances without those patients being examined.
Abovyan and Barbuto and their co-conspirators prepared and submitted fraudulent insurance claim forms to the insurance plans falsely stating that the testing and treatment had been medically necessary and actually rendered when some of the claimed testing and treatment had not been necessary or performed; failing to disclose that the patients had not been asked to pay their co-payments and deductibles; and failing to disclose that Journey and Reflections had obtained their licenses through false statements and omissions.
Mark Jeffrey Hollander (Case No. 18cr80102) and Bosco Jose Vega (Case No. 18cr80101)
On January 28, 2019, Mark Jeffrey Hollander, 44, of Miami, was sentenced to 21 months in prison, to be followed by two years of supervised release. On February 1, 2019, Bosco Jose Vega, 52, of Miami, was sentenced to 9 months in prison, to be followed by one year of supervised release. Both defendants previously pled guilty to one count of engaging in a monetary transaction of a value greater than $10,000 that was derived from health care fraud.
Smart Lab, LLC was a company that offered bodily fluid testing services, including confirmatory urinalysis testing. Smart Lab’s Chief Executive and Chief Operating Officers established employment agreements where co-conspirators would solicit bodily fluid samples from substance abuse treatment centers that would be submitted to Smart Lab for expensive confirmatory drug testing. In exchange, Smart Lab would kick back a portion of the insurance reimbursements, disguised as payments for sales commissions, to co-conspirators, understanding that a portion of these payments would then be paid, directly or indirectly, to owners, operators, or clinicians at the substance abuse treatment centers that referred the testing of urine samples from insured patients.
To achieve the goal, form standing orders and drug testing protocols were established that provided for duplicative, medically unnecessary, and expensive confirmatory testing regardless of the individual needs of any patients. To further the scheme, co-conspirator treatment center owners required the insured substance abuse treatment center patients to submit to confirmatory drug testing approximately three times per week, which Smart Lab could bill to the insurance plans. Smart Lab elected not to collect mandatory co-payments, deductibles, and other co-insurance from patients that could cause patients to be unable or unwilling to submit to testing. The defendants did not inform the insurance plans that they were not collecting the required co-insurance payments.
Hollander and Vega both signed employment agreements with Smart Lab that purported to make them “sales representatives”. These agreements were used to make it appear that monies paid to them were for services rendered. The employment contracts were created to hide the true purpose and recipient of the payments. Hollander and Vega did not perform any actual services for Smart Lab and they were paid “commissions” from the proceeds of health care fraud.
John Michael Skeffington, Babette Hayes, and Mona Montanino (Case No. 18cr80018)
On January 25, 2019, John Michael Skeffington, 52, of Boca Raton, was sentenced to 52 months in prison, to be followed by three years of supervised release. He previously pled guilty to one count of participating in a health care fraud conspiracy and one count of obstructing a criminal health care investigation. Co-defendants Babette Hayes, 58, of Sarasota, and Mona Montanino, 56, of Boca Raton, were both sentenced to probation after previously pleading guilty to one count of obstructing a criminal heath care investigation.
According to court documents, Skeffington, Hayes and Montanino established five shell companies, disguised as “laboratory marketing companies,” in order to unlawfully refer medically unnecessary and excessive bodily fluid tests for residents and patients of sober homes and substance abuse treatment facilities to various clinical laboratories and rural hospitals. Hayes and Montanino purported to be the chief executive officers of some of the companies, but it was Skeffington who actually operated and controlled the companies and directed the co-defendants’ actions. In exchange for patient referrals, the laboratories and hospitals would provide a pre-set percentage of insurance payments (“kickbacks”) to the defendants, which they would then share with the sober homes and substance abuse treatment facilities.
The fraud scheme took advantage of higher insurance reimbursement rates for testing conducted by hospitals. In some cases, the hospitals would submit claim forms as if the patients submitted samples in person when, in reality, the patients were hundreds of miles away, were never treated at the hospitals, and were unaware that their insurance plans were billed for the services. During the course of the scheme, Skeffington increased his use of rural hospitals for the fraudulent testing, after insurance companies began to scrutinize claims from clinical laboratories for bodily fluid tests.
The kickback amounts, often disguised as payments for sales commissions to Skeffington’s companies, were based on written and unwritten agreements between Skeffington and the laboratories and hospitals. Upon receiving the payments, Skeffington would directly or indirectly provide kickback payments to the sober homes and substance abuse treatment center owners who were accomplices in the scheme.
Once Skeffington, Montanino and Hayes became aware of the FBI investigation into fraudulent medical claims, they created dozens of fake documents meant to obstruct the investigation and disguise the kickbacks as hourly payments for marketing services. They asked, both those from whom they had received kickbacks and those to whom they provided kickbacks, to sign the documents to further conceal their illegal activities. Signed documents and invoices were back-dated to make it appear as though they had been signed and submitted before the kickback payments were made.
These cases are all the result of the work of the Greater Palm Beach Health Care Fraud Task Force. The Task Force’s ongoing investigation into substance abuse treatment fraud in the Southern District of Florida has resulted in 30 convictions to date. Agencies of the Task Force include the FBI, IRS-CI, the Florida Division of Investigative and Forensic Services, Amtrak OIG, DOL-EBSA, and NICB.
U.S. Attorney Fajardo Orshan commended the investigative efforts of all law enforcement agencies connected with the Task Force, as they continue to combat sober home abuses and health care fraud.
These cases were prosecuted by Assistant U.S. Attorneys A. Marie Villafaña and Alexandra Chase.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov
Sasha Sun Sentenced to 12 Months Imprisonment for Harboring Illegal AliensRead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Sasha Sun, age 48, from Tumon, Guam, was sentenced in the District Court of Guam to 12 months imprisonment for Harboring Illegal Aliens. The Court also ordered Sun to be placed on three years of supervised release following Sun’s release from custody and to pay a mandatory $100.00 special assessment fee. Additionally, the Court ordered the forfeiture of Sun’s San Vitores Village condominium and $74,794.00 in U.S. currency.
Homeland Security Investigations’ undercover operation revealed that Sun, the owner of the Joy Luck Club in Tumon, illegally employed three female aliens from Taiwan. The aliens entered Guam as tourists under the Visa Waiver Program, a program that grants entry of certain aliens into Guam for 45 days. Those entering under the program are prohibited from working while on island. However, Sun employed the female aliens as hostesses, selling $20 drinks to men who patronized the business. Sun paid the aliens $10.00 for every drink they sold.
U.S. Attorney Anderson stated, “Those who recruit and harbor aliens for unlawful employment on Guam will face criminal prosecution and the potential forfeiture of assets related to their crimes. In this case, Sun also used her condominium to house the aliens who were illegally working. In addition, the money found in her condominium was illegal proceeds from the unlawful harboring of those aliens. The U.S. Attorney’s Office is committed to aggressively prosecuting these offenses and eliminating any financial incentive to engage in such conduct.”
The investigation was conducted by the U.S. Department of Homeland Security, Homeland Security Investigations and the Guam Police Department. This case was prosecuted by Rosetta San Nicolas, an Assistant United States Attorney for the District of Guam.
Project Parkersburg Update: Arizona Man Pleads Guilty to Federal Methamphetamine ChargesRead the Press Release
CHARLESTON, W.Va. – An Arizona man who was arrested as part of Project Parkersburg – a major takedown and dismantling of a multi-state drug trafficking organization (DTO) responsible for distributing methamphetamine and heroin -- pled guilty to conspiracy to distribute 500 grams or more of methamphetamine, announced United States Attorney Mike Stuart. Troy Pastorino, 39, entered his guilty plea before United States District Judge Irene C. Berger. Stuart commended the investigative efforts of the FBI, the Parkersburg Police Department, the Dayton Ohio Police Department, and the Parkersburg Narcotics and Violent Crime Task Force. The long-term, joint investigation resulted in at least 29 individuals being charged in federal and state court, the seizure of 150 pounds of methamphetamine and 4 pounds of heroin.
“The people of Parkersburg deserve a city free of drug thugs and dealers. Pastorino is the first federal Project Parkersburg defendant to plead guilty,” said United States Attorney Mike Stuart. “More than two dozen individuals were arrested on federal and state charges in October 2018 during the major takedown, dubbed “Project Parkersburg,” which dismantled a significant, multi-state DTO with connections to sources of supply in Mexico. There is no doubt lives have been saved as a result of our efforts.”
In September 2018, during a long-term investigation of a methamphetamine trafficking organization operating in Parkersburg, the FBI learned that a large shipment of methamphetamine was being shipped from the Phoenix, Arizona area to Parkersburg where it was to be sold in and around Wood County. On September 19, 2018, FBI and drug task force agents intercepted the shipment in Dayton, Ohio during a traffic stop of a Dodge Charger driven by Pastorino. Upon searching the trunk of the vehicle, agents seized approximately 150 pounds of methamphetamine and cocaine. During his plea hearing, Pastorino admitted that his role was to facilitate shipping the methamphetamine from Arizona.
Pastorino was charged with 16 other defendants in a two-count federal indictment in October 2018. He faces 10 years to life in federal prison when he is sentenced on June 12, 2019.
Assistant United States Attorney Joshua C. Hanks is responsible for the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
###Prisoner Convicted of Mailing Threats to Murder a Federal JudgeRead the Press Release
FRESNO, Calif. — After a two-day trial, a federal jury found Cyrus Dennis Braswell, 57, guilty today of three counts of mailing threatening communications, U.S. Attorney McGregor W. Scott announced.
According to court documents, a federal judge in the District of Alaska sentenced Braswell in 1998. Thereafter, while an inmate at Mendota Federal Correctional Institute in Fresno County, Braswell mailed communications to Alaska in which he threated to murder the judge after he got out of prison.
This case is the product of an investigation by the Federal Bureau of Investigation, the U.S. Marshals Service, and the Bureau of Prisons. Assistant U.S. Attorneys Laura D. Withers and Kirk E. Sherriff are prosecuting the case.
Braswell is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on May 6, 2019. Braswell faces a maximum statutory penalty of 10 years in prison and a $250,000 fine on each count. The actual sentence, however, will 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. Braswell currently remains in the custody of the Bureau of Prisons.
Pittsburgh-area Residents Charged in Armed Robbery Spree of Local BanksRead the Press Release
PITTSBURGH – Nicole Wallace, 34, of Carnegie, Pennsylvania, and Edward Hooten, 42, of Pittsburgh, Pennsylvania, have been charged in two separate but related indictments with conspiring to rob three area banks, armed bank robbery, attempted armed bank robbery, and aiding and abetting armed bank robbery, United States Attorney Scott W. Brady announced today.
According to the February 12, 2019 indictments, Wallace and Hooten, conspired to, and aided and abetted, the armed robbery of Huntington Bank in Pittsburgh, PA on October 17, 2018. Wallace is also charged with conspiring to, and aiding and abetting, the attempted armed robbery the First National Bank in Pittsburgh, PA on October 26, 2018, and the armed robbery of First National Bank in Pittsburgh, PA on October 29, 2018.
The law provides for a maximum total sentence of 25 years for each aiding and abetting count, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Nicole Vasquez Schmitt is prosecuting the cases on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictments in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Physical Therapist and Acupuncturist Sentenced in Manhattan Federal Court for Their Roles in Million Dollar Scheme to Defraud Medicare and MedicaidRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that ASHRAF HASAN-HAFEZ and ILYA KOGAN were sentenced yesterday to 45 and 50 months, respectively, in prison for their participation in a scheme to defraud the Medicare and Medicaid programs. HASAN-HAFEZ, the owner of a physical therapy practice in Brooklyn, and KOGAN, the owner of an acupuncture company in Brooklyn, received approximately $1.3 million from Medicare and the New York State Medicaid Program after falsely submitting bills for services that were not provided as billed, or which were rendered by unlicensed and unsupervised individuals. In a separate scheme, KOGAN also obtained nearly $300,000 from no-fault insurance companies based on billing by fraudulently incorporated acupuncture companies. HASAN-HAFEZ and KOGAN were sentenced yesterday by United States District Judge Robert W. Sweet.
According to the Indictment filed in Manhattan federal court, as well as previous court filings and statements made in public court proceedings:
Between at least January 2010 and August 2013, HASAN-HAFEZ was the owner of a physical therapy practice which operated out of a basement on East 18th Street in Brooklyn, New York. HASAN-HAFEZ employed individuals who provided physical therapy services to patients, and was involved in the clinic’s management and billing. KOGAN was the owner of an acupuncture company which operated its practice out of the same location on East 18th Street.
HASAN-HAFEZ and KOGAN committed fraud against Medicare and Medicaid by pressuring employees to add services to the bills that were submitted to these entities so that Medicare and Medicaid were billed for physical therapy services that were never in fact provided; billed for reimbursable physical therapy services even though only unreimbursable acupuncture had been provided; and billed for physical therapy services provided by unlicensed practitioners. When the employees resisted KOGAN’s directions to create such fraudulent billing, HASAN-HAFEZ directed the employees to follow KOGAN’s instructions. HASAN-HAFEZ had leverage over these employees because he sponsored their employment in the United States and they were therefore dependent on him for continued employment—and legal status—in the United States.
In total, Medicare and Medicaid suffered actual losses of $1,297,000 as a result of this fraudulent scheme.
In addition, KOGAN participated in a separate scheme to defraud no-fault insurance companies. No-fault insurance provides benefits to individuals injured in motor vehicle accidents under certain conditions. Between approximately March 2014 and June 2016, KOGAN controlled two acupuncture businesses that had been set up, at his request, under the name of another acupuncturist (“Individual-1”). KOGAN coached Individual-1 how to lie under oath about KOGAN’s involvement in the businesses when Individual-1 was questioned by representatives of a no-fault insurer. KOGAN had previously entered into settlement agreements with two of the largest no-fault insurance providers to resolve certain claims against him. Pursuant to one of the settlement agreements, KOGAN agreed not to submit any future billing—under his name, or under the name of any entity in which he had direct or indirect ownership or control—without giving advance notice to the insurer.
A total of $293,851 was paid to two no-fault insurers for services performed by Individual-1’s companies. Had the insurers known the truth—that the acupuncture clinics were in fact controlled by KOGAN despite being registered in Individual-1’s name—they would not have paid the claims due to the fraudulent incorporation of the companies.
* * *
ASHRAF HASAN-HAFEZ, 47, of Brooklyn, New York, pled guilty to health care fraud and conspiracy to commit health care fraud on March 16, 2018. ILYA KOGAN, 44, of Watchung, New Jersey, pled guilty to health care fraud and conspiracy to commit health care fraud on March 16, 2018, and pled guilty to conspiracy to commit mail fraud on June 25, 2018. In addition to the prison terms, Judge Sweet ordered HASAN-HAFEZ and KOGAN to forfeit $1,297,000 and pay restitution of $1,297,000 to Medicare and Medicaid. KOGAN was also ordered to forfeit $293,851 and pay restitution of $293,851 to victims of the no-fault insurance fraud scheme.
Mr. Berman praised the outstanding investigative efforts of FBI and HHS-OIG.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Noah Solowiejczyk, Catherine Ghosh, and Jessica Greenwood are in charge of the prosecution.
Pensacola Registered Sex Offender Sentenced to 12.5 Years in Prison for Possession of Child PornographyRead the Press Release
PENSACOLA, FLORIDA – Christopher M. Arguelles, 34, of Pensacola, was sentenced to 12.5 years in prison today and a lifetime of supervised release as a federal sex offender. On November 15, 2018, Arguelles pleaded guilty to possession and access with intent to view child pornography. The sentence was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
In February 2018, while a telecommunications provider was assisting Arguelles with his slow running cellular telephone, the provider observed a large amount of pornography on the phone, including a folder titled “underage.” Several days later, Arguelles, a sex offender, was arrested for failure to register a change in his residence, and his cellular telephone was seized. A forensic review of the device revealed images and videos of child pornography both on the phone and on the memory card. Examples of subfolder titles were “Sammy 14 yo,” “15yo Jen,” and “14 year old Erin.” Some of the child pornography involved females under age 12. Arguelles also maintained a cloud storage account with similar illicit materials.
U.S. Attorney Keefe said: “I am proud that prosecutors, law enforcement professionals, and North Floridians are all working together to bring child predators to justice and protect the most innocent members of our communities from exploitation.”
“This case highlights the value of vigilance by members of the community, who come forward and work with law enforcement when they see something wrong,” said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division. “The FBI and our law enforcement partners are dedicated to working together to protect and serve, but we are far more effective when the community also works with us. We appreciate the efforts of everyone involved in the case, and their unwavering commitment to protect our children.”
The case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Escambia County Sheriff’s Office, the State Attorney’s Office – First Judicial Circuit, and the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney David L. Goldberg.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Pensacola Man Sentenced to 15 Years in Federal Prison for a Drug ConspiracyRead the Press Release
PENSACOLA, FLORIDA – Antoine Devon Wilson, 35, of Pensacola, Florida, was sentenced today to serve 15 years in federal prison after pleading guilty on November 29, 2018, to conspiracy to possess with intent to distribute over 5 kilograms of cocaine. The sentence was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
In July 2018, agents with the Drug Enforcement Administration seized 23 kilograms of cocaine that were being delivered to Wilson in Pensacola. Wilson was subsequently arrested. Following Wilson’s arrest, search warrants were obtained authorizing the search of his cellular telephones seized from him. Evidence on one or more of Wilson’s cellular telephones confirmed that Wilson had ordered the 23 kilograms of cocaine and was expecting them to be delivered to a location in Pensacola.
The case resulted from the investigation by the Drug Enforcement Administration, the Florida Department of Law Enforcement, the Escambia County Sheriff’s Office, the Pensacola Police Department, the Santa Rosa County Sheriff’s Office, the Gulf Breeze Police Department, and the Okaloosa County Sheriff’s Office. It was prosecuted by Assistant United States Attorney J. Ryan Love.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Pass Christian Convicted Felon Sentenced for Possessing AmmunitionRead the Press Release
Gulfport, Miss – Cornell Demidridous Smith, 40, of Pass Christian, was sentenced by U.S. District Judge Louis Guirola, Jr., to 30 months in federal prison followed by three years of supervised release for being a felon in possession of ammunition, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Smith was also ordered to pay a $5,000 fine.
On February 3, 2018, Pass Christian Police officers executed a search warrant at the home of Smith as part of a homicide investigation. The officers found Smith at a table with bullets. Smith was previously convicted of manslaughter in Walthall County, Mississippi, and is therefore prohibited from having ammunition.
The Pass Christian Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It was prosecuted by Assistant United States Attorney Annette Williams.
Parkville Man Indicted for False Tax ReturnsRead the Press Release
KANSAS CITY, Mo. – A Parkville, Mo., man has been indicted by a federal grand jury for filing false tax returns.
Patrick Michael Dingle, 48, was charged in a four-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, Feb. 12, 2019. That indictment was unsealed and made public today following Dingle’s arrest and initial court appearance.
The federal indictment alleges that Dingle filed false tax returns for the four calendar years from 2013 to 2016. According to the indictment, Dingle claimed a total of $1,661,198 in business expenses for Mets, LLC, a business he formed, on Schedule C forms filed during those years. Dingle allegedly knew the actual expenses were substantially lower.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Stacey Perkins Rock and Paul S. Becker. It was investigated by IRS-Criminal Investigation.
Owner of New York Investment Fund Pleads Guilty to Committing $22 Million Scheme to Defraud InvestorsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that BRENT BORLAND, the owner and principal of a New York-based investment fund known as Belize Infrastructure Fund I LLC (“Belize Fund”), pled guilty to perpetrating a $22 million investment fraud scheme against dozens of Belize Fund investors. BORLAND pled guilty today before U.S. District Judge Katherine Polk Failla to conspiring to commit, and the commission of, securities fraud and wire fraud.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Brent Borland solicited funds from investors for a project to build a new airport in Belize. In doing so, Borland promised a high rate of return and assured investors that their funds were secured by real property. Not only was he not truthful about the collateral for their investments, Borland used a substantial portion of investors’ funds to support his own lavish lifestyle. Today, Brent Borland admitted to investor fraud to the tune of $22 million, and faces substantial time in federal prison.”
According to the Complaint and Indictment:
From 2014 through March 2018, BORLAND and others solicited and received approximately $21.9 million through Belize Fund from approximately 40 investors based upon representations that BORLAND would use the investors’ money to construct an airport in Belize. BORLAND promised investors high rates of return on their investments, which he represented were temporary “bridge financing.” BORLAND also represented to investors that their investments would be fully secured by real property in Belize that was unencumbered by any liens or obligations.
In fact, however, BORLAND misappropriated millions of dollars of investors’ funds and used those funds for his own personal benefit. BORLAND diverted at least approximately 30 percent of the approximately $21.9 million invested by victims to himself to pay for a variety of personal expenses, including his mortgage payments, credit card bills, luxury automobiles, a beach club membership, and private school tuition for his children. In contrast to BORLAND’s representations that investors would receive high rates of return within a specified time frame, all known investors in the scheme lost money. And while BORLAND represented that the investments would be secured by real property, the property purportedly serving as collateral was improperly pledged to multiple investors and, in some cases, did not even exist.
* * *
BORLAND, 48, pled guilty to one count of conspiracy to commit securities fraud and wire fraud, which carries a maximum potential sentence of five years in prison; one count of securities fraud, which carries a maximum potential sentence of 20 years in prison; and one count of wire fraud, which carries a maximum potential sentence of 20 years in prison. The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge. BORLAND is scheduled to be sentenced before Judge Failla on June 21, 2019.
Mr. Berman praised the investigative work of the U.S. Postal Inspection Service and thanked the Securities and Exchange Commission.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to: http://www.usdoj.gov/usao/nys/victimwitness.html.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Edward A. Imperatore and Negar Tekeei are in charge of the prosecution.
###
Orrum Man Charged for Possession of Firearm by a Felon After Allegedly Firing Shots at OfficersRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that in federal court, before United States Magistrate Judge Robert B. Jones, Jr., GARY LYNN GATLIN, of Orrum, North Carolina, was charged in a federal Criminal Complaint for possession of a firearm by a felon.
The affidavit attached to the Criminal Complaint alleges that GATLIN possessed a firearm as a convicted felon on February 8, 2019. On February 8, 2019, two law enforcement officers were conducting surveillance near Water Tower Road and Gatlin Drive in Orrum, North Carolina. It is alleged that GATLIN confronted the officers about why they were near his property and left the scene. Shortly thereafter, GATLIN returned to the area with a shotgun. GATLIN fired one shot into the air and fired multiple shots in the direction of the officers, which struck their vehicle. The officers then left the scene and GATLIN fled the area. Prior to February 8, 2019, GATLIN had been convicted of Common Law Robbery in Robeson County. GATLIN was taken into custody on February 12, 2019.
The charge and allegations contained in the Criminal Complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
This case was brought using the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Robeson County Sheriff’s Office, and Wake County Sheriff’s Office contributed to the investigation of this case.
Onalaska Man Sentenced to 6 Years for Methamphetamine ConspiracyRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Ryan Koenig, 23, Onalaska, Wisconsin, was sentenced last week by U.S. District Judge William M. Conley to 72 months in federal prison for conspiring to distribute methamphetamine. Koenig pleaded guilty to this charge on November 16, 2018 and was sentenced on February 8.
Koenig conspired with Roberta Draheim and others to distribute large quantities of methamphetamine to the La Crosse area. Draheim’s trafficking operation was responsible for the shipment of over 35 packages of methamphetamine from California to the La Crosse area over a 15-month period. Many of those packages consisted of multiple pounds of methamphetamine.
During sentencing, Judge Conley stated that Koenig became aware that Draheim’s associates had access to cheap, high-quality methamphetamine from California and capitalized on this connection to order large quantities of methamphetamine for distribution in the La Crosse area. This was Koenig’s first federal conviction, second drug distribution conviction, and fifth overall adult criminal conviction.
Koenig and five other individuals were charged for their roles in this methamphetamine distribution conspiracy. Five of the six individuals charged in the indictment have pleaded guilty; Koenig is the third to be sentenced.
The charge against Koenig was the result of an investigation conducted by the Drug Enforcement Administration in Wisconsin and California; Wisconsin Department of Justice Division of Criminal Investigation; U.S. Postal Inspection Service; La Crosse Police Department; Prairie du Chien Police Department; and Dane County Sheriff’s Office. The prosecution of the case has been handled by Assistant U.S. Attorney Diane Schlipper.
Olympian Village Alderman Sentenced for Embezzling from City CoffersRead the Press Release
St. Louis – Gary Atchley, 54, of Perryville, Missouri, was sentenced to 15 months in prison on Wednesday for wire fraud. He was also ordered to pay $187,252.60 in restitution. He appeared in federal court before U.S. District Henry Autrey.
According to court documents, between 2008 and 2016, Atchley, who was serving as a city alderman for Olympian Village, embezzled $187,252.60 in city funds. At no time was Atchley an authorized signatory on the Olympian Village account. He used the account to pay personal expenses, including making checks to cash and writing checks directly to himself. Approximately $58,000 was bought in personal merchandise using pre-authorized debit transactions and the $127,000 of checks he wrote to himself were not authorized by the Olympian Village government.
"Today's sentence is just," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "The harm of public corruption manifests itself not only in financial loss, but also the loss of faith in government and public officials."
“I’m thankful we have a U.S. Attorney that has been aggressive in addressing these types of crimes,” said Jefferson County Sheriff Dave Marshak. “I commend the Detectives and Agent that worked hard to bring this case to a successful resolution. Stealing from this community is unacceptable and I’m glad that he is being held accountable.”
This case was investigated by the Federal Bureau of Investigation and the Jefferson County Sheriff’s Department. Assistant U.S. Attorney Gwen Carroll is handling the case for the U.S. Attorney’s Office.
Northern Nevada Woman Pleads Guilty to Stabbing Elderly Man on Indian ReservationRead the Press Release
RENO, Nev. – A member of the Te-Moak of the Western Shoshone pleaded guilty today to stabbing an elderly man multiple times, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Jean Angela Ortega, aka Angel Jim, 41, pleaded guilty to assault resulting in serious bodily injury. She is an enrolled member of the Te-Moak Tribe of the Western Shoshone. United States District Judge Howard D. McKibben scheduled sentencing for May 29, 2019.
According to court documents, on February 1, 2018, an officer with the Bureau of Indian Affairs responded to a possible stabbing incident at a house within the territorial boundaries of the Elko Indian Colony for the Te-Moak Tribe of Western Shoshone, in Elko, Nevada. Upon arriving at the house, the officer found a 78-year-old man on the floor bleeding from multiple stab wounds. He was transported to the North Eastern Nevada Regional Hospital and later flown by an emergency medical helicopter to Salt Lake City, Utah, for further treatment, including surgery. Ortega admitted that she assaulted and stabbed the victim in the abdomen, arm, and back.
Ortega faces the maximum statutory penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Indian Affairs and FBI. Assistant U.S. Attorney Sue Fahami is prosecuting this case.
###