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19 March 2019
Jackson County Man Pleads Guilty to Illegal Gun and Drug ChargesRead the Press Release
Gulfport, Miss – Kristopher Michael Williams, 33, of Moss Point, Mississippi, pled guilty yesterday before U.S. District Judge Louis Guirola, Jr. to being a felon in possession of a firearm and possession with intent to distribute a controlled substance, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Williams faces a maximum penalty of 10 years in prison for the firearm charge and 40 years on the drug charge. He further faces fines up to $5 million along with at least 4 years of supervised release. He will be sentenced by Judge Guirola on June 11, 2019, at 10:00 a.m.
On November 17, 2017, Moss Point police officers stopped Williams’ car, where it was discovered that he had marijuana and a .44 caliber pistol. During January and February 2018, the South Mississippi Metro Enforcement Team in Jackson County and the ATF purchased marijuana, methamphetamine, and a gun from Williams during an undercover investigation. Williams sold a total of 54.91 grams of “ice” or actual methamphetamine. Williams was previously convicted in 2009 of armed robbery in Jackson County Circuit Court.
The South Mississippi Metro Enforcement Team and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It is being prosecuted by Assistant United States Attorney Annette Williams.
Hopkins County Woman Indicted for Social Security FraudRead the Press Release
SHERMAN, Texas – A 51-year-old Sulphur Springs, Texas, woman has been indicted for federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Theresa Renee Coburn was named in an indictment returned by a federal grand jury on Mar. 14, 2019, charging her with theft of government property.
According to the indictment, from about December 2005 through October 2015, Coburn is alleged to have provided fictitious documentation to the Social Security Administration Disability Program in order to fraudulently receive benefits totaling $42,378.00 on behalf of a child that did not live with her, and did not receive support from her, during that time.
If convicted, Coburn faces up to 10 years in federal prison. A grand jury indictment is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the Social Security Administration Office of the Inspector General and is being prosecuted by Assistant U.S. Attorney Matt Johnson.
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Honduran Man Charged with Illegal Re-EntryRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that OMAR ELI PEREZ-MURCIA, age 35, a native of Honduras, was charged Thursday, March 18, 2019 in a one-count indictment with illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to the indictment, PEREZ-MURCIA was previously removed from the United States on April 4, 2006. He was later found in the Eastern District of Louisiana on February 22, 2019 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
If convicted, PEREZ-MURCIA faces a maximum term of imprisonment of 2 years, a fine of $250,000, one year of supervised release, and a $100 special assessment fee.
U.S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
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Honduran Man Charged with Illegal Re-EntryRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that ELVIN FRANCISCO ALVAREZ-IZAGIRREZ, age 37, a native of Honduras, was charged Thursday, March 14, 2019 in a one-count indictment with illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to the indictment, ALVAREZ-IZAGIRREZ was previously removed from the United States on June 6, 2013. He was later found in the Eastern District of Louisiana on February 16, 2019 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
If convicted, ALVAREZ-IZAGIRREZ faces a maximum term of imprisonment of 2 years, a fine of $250,000, one year of supervised release, and a $100 special assessment fee.
U.S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
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Harrison County woman admits to role in methamphetamine distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jodi Denkenberger, of Mount Clare, West Virginia, has admitted to her role in a methamphetamine distribution operation, United States Attorney Bill Powell announced.
Denkenberger, age 28, pled guilty to one count of “Distribution of Methamphetamine.” Denkenberger admitted to selling methamphetamine in October 2017 in Harrison County.Denkenberger faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Hardin County Man Indicted for the Production of Child Pornography and Possession of Child PornographyRead the Press Release
Memphis, TN – A Savannah man has been indicted on charges of production of child pornography and possession of child pornography. U.S. Attorney D. Michael Dunavant announced the indictment today.
According to counts one through three of the indictment, in August 2017, Andrew Hilmar Sanchez, 30, coerced three minor females under the age of ten to engage in sexually explicit conduct for the purpose of producing images and/or videos. Count four charges Sanchez with possession of child pornography and alleges that on February 22, 2019, Sanchez possessed a cellular telephone containing visual depictions of prepubescent minors under the age of twelve engaged in sexually explicit conduct. Sanchez also has state charges pending in Hardin County for continuous sexual abuse of a child.
If convicted of counts one through three, Sanchez faces up to 30 years imprisonment. If convicted on count four, he faces up to 10 years imprisonment and a $250,000 fine. The United States also seeks criminal forfeiture of any proceeds related to the crime.
This case was investigated by the FBI, TBI and the Savannah Police Department.
Assistant U.S. Attorney Kasey Weiland is prosecuting this case on behalf of the government.
Anyone who believes they may have information about this case or related activities is asked to contact the Memphis Child Exploitation Task Force at 901-747-4300.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit www.justice.gov/psc.
The charges and allegations contained in the indictment are merely accusations, and defendant is considered innocent unless and until proven guilty.
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Hancock County Man Pleads Guilty to Gun ChargesRead the Press Release
Gulfport, Miss – Charles Keith Mueller, 34, of Hancock County, entered a guilty plea today, before U.S. District Judge Louis Guirola, to possession of a firearm in furtherance of a drug trafficking crime and being a felon in possession of firearms, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On March 30, 2018, Hancock County Deputies pulled over the car Mueller was driving and found marijuana, Alprazolam, cocaine and several baggies of methamphetamine in a book bag with scales and a gun. Mueller has 2008 felony convictions for transfer of a controlled substance and jail escape in Hancock County. When arrested on federal charges for the March 30, 2018, incident, Mueller was found in bed asleep with a loaded gun under the pillow.
Mueller faces a minimum of 5 years to life years in prison for the firearm in furtherance of drug trafficking charge and a consecutive maximum of 10 years for the felon in possession of a firearm charge. He further faces fines up to $250,000 along with not more than 5 years of supervised release. He will be sentenced by Judge Guirola on June 11, 2019, at 10:00 a.m.
The Hancock County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It is being prosecuted by Assistant United States Attorney Annette Williams.
Gulfport Man Sentenced for Stealing Firearm from Pawn ShopRead the Press Release
Gulfport, Miss. – Aseante Romaree Taylor, 21, of Gulfport, was sentenced yesterday by U.S. District Judge Sul Ozerden to 18 months in federal prison, followed by three years of supervised release, for theft of a firearm from a licensed firearms dealer, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Taylor was also ordered to pay a $5,000 fine and restitution to Dad’s Super Pawn in the amount of $669.95
On September 18, 2018, Gulfport Police Department responded to Dad’s Super Pawn regarding the theft of a firearm. Officers obtained surveillance video and were able to see the suspect go behind the counter while clerks were busy with customers, take an AK-47 off the shelf and walk out the door. Once the defendant was outside, video showed him running to a car. ATF agents located the car and determined the identity of the defendant. Taylor was apprehended in the U.S. District Courthouse when he attended a sentencing hearing in support of another defendant. When approached by U.S. Marshals, Taylor gave a false name, but was arrested.
Taylor’s federal sentence will be served consecutively to a state court sentence he will receive on May 6, 2019 for a drive-by shooting on January 7, 2019.
The Gulfport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. The case was prosecuted by Assistant United States Attorney Annette Williams.
Greenville Woman Sentenced to 4 Years in Federal Prison Following Second Counterfeiting ConvictionRead the Press Release
Greenville, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Jessica A. Dishinger, age 24, of Greenville, South Carolina, was sentenced in federal court after pleading guilty to manufacturing counterfeit money. United States District Judge J. Michelle Childs sentenced Dishinger to 48 months in federal prison, followed by three years of court-ordered supervision. This was Dishinger’s second federal counterfeiting conviction.
Evidence presented to the court established that in the summer of 2018, Dishinger passed counterfeit federal reserve notes at various locations throughout the Upstate of South Carolina. Based on a local investigation, Greenville City Police officers developed probable cause and executed a search warrant on Dishinger’s home. Officers located in Dishinger’s bedroom resume paper, a paper cutter, and a deskjet printer—all of which are commonly used to manufacture counterfeit money. In addition, officers found multiple counterfeit federal reserve notes hidden throughout the premises. Dishinger manufactured the counterfeit notes to help fund her consumption of methamphetamine.
The case was investigated by agents with the Greenville City Police Department and the United States Secret Service. Assistant United States Attorney Bill Watkins of the Greenville office prosecuted the case.
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Gang Leader and Co-Conspirators Collectively Sentenced to Nearly 55 Years in Federal PrisonRead the Press Release
Florence, South Carolina --- United States Attorney Sherri A. Lydon announced today that nine defendants, including six current or former members of a criminal street gang, were sentenced in federal court on drug and firearms violations.
During the sentencing hearings, United States District Judge Bruce Howe Hendricks characterized the gang as one of the most dangerous criminal organizations the federal government has prosecuted in the Florence and Myrtle Beach areas in many years.
Assistant United States Attorney Andy Moorman presented evidence to the Court that overwhelmingly established that Barbara Landy, age 27, was the leader of a subset of a national criminal street gang, and she communicated directly with a national gang leader who was incarcerated in the Western part of the United States. As the leader, or four star general, in charge, Landy directed drug shipments, assisted in the trafficking of weapons, and ordered the payment of “homage,” or dues by inferior gang members. For her leadership role in this dangerous and violent gang, the Court sentenced Landy to 210 months in federal prison.
The Court also sentenced Joshua Randall, age 31, to 195 months in federal prison. Evidence demonstrated that Randall was a lieutenant in the gang who reported directly to Landy and sold kilogram quantities of heroin and/or fentanyl to customers in the Myrtle Beach and Florence areas. During the course of the investigation, police arrested Randall on two separate occasions while in possession of guns and drugs.
Lee Tracy Riggins, age 27, was also a member of the gang. The Government presented evidence that Riggins participated in the gang’s drug distribution and firearms trafficking networks and was integral in gathering guns to be transported to and sold in New York, New York, to generate revenue for the gang. For his part, the Court sentenced Riggins to 120 months in federal prison.
The remaining Defendants sentenced were either lower level members of the street gang or non-gang members. Stanley Weaver, Brandon Randall, Jerrick Thomas, Dominique Chatman, Douglas Hart, and Joey Sinclair garnered combined sentences of 130 months, ranging from 35 months in federal prison to time served.
The investigation was conducted by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Horry County Sheriff’s Office, the Horry County Police Department, the Myrtle Beach Police Department, the North Myrtle Beach Police Department, the 15th Circuit Solicitor’s Office Drug Enforcement Unit, and the Georgetown Police Department. Assistant United States Attorneys Andy Moorman, Everett McMillian, and Justin Holloway prosecuted the case.
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Former controller of California company sentenced for embezzling $1.27 millionRead the Press Release
GAINESVILLE, Ga. - Jeanette Elizabeth Ford has been sentenced for embezzling over $1.27 million from her now-bankrupt former employer, Classic Party Rentals (CPR). Ford was convicted of wire fraud on May 14, 2018, after she pleaded guilty to a criminal information.
“Ford abused her position of trust and embezzled a startling amount of money from her employer,” said U.S. Attorney Byung J. “BJay” Pak. “Over 15 months, Ford managed to steal and spend over $1.2 million -- on expensive vacations, the renovation and furnishing of a mountain home, and personal items for herself and her family. Now Ford is going to federal prison and has been ordered to pay restitution to the victims.”
“Ford worked in a position of trust for a company that expected her to honor that trust,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Instead she chose to abuse it and her personal greed not only hurt the company, but everyone who worked for them. They will never be made whole but can take some solace in the fact that Ford is paying for her crimes.”
According to U.S. Attorney Pak, the charges and other information presented in court: In 2015 and 2016, Ford was employed as an operations controller in the accounting and finance department at CP OpCo, LLC, d/b/a Classic Party Rentals. Prior to its liquidation and sale in mid-2017, CPR was one of the nation’s largest event rental companies. CPR operated throughout the United States under the names of Classic Tents, Ducky-Bob’s, Panache, Festive Fare, and Capital Party Rentals. Although CPR was headquartered in Inglewood, California, Ford worked remotely from her home in Blue Ridge, Georgia.
As part of her job as a controller at CPR, Ford was responsible for reconciling and recording employees’ corporate credit card transactions within CPR’s accounting records. Ford used her authority and access as an operations controller to circumvent company controls and charge over $1.27 million in unauthorized personal expenses, for herself and her family, to a corporate credit card issued in her name. In her position, she was able to hide her unauthorized charges from her colleagues and supervisors at CPR.
Ford manipulated transaction reports from MasterCard, the corporate credit card company, by deleting the unauthorized transactions from MasterCard spreadsheets and then presenting the manipulated data to conceal the credit card transactions. Ford also recorded fraudulent entries within the accounting system. The corporate credit card company would automatically debit a cash account when CPR’s total credit card transactions reached a certain threshold.
As bank reconciliations were performed at the end of each month, these cash transactions were recorded by crediting cash and debiting the credit card liability. Ford would use her ability and access to post entries within the system and record the fraudulent journal entries. These entries were then used to change the balance of the credit card liability in order to reconcile the credit card file that she manipulated. Ford also circumvented CPR policy by not linking her company credit card to CPR’s expense reporting software.
Jeanette Elizabeth Ford, 46, of Blue Ridge, Georgia, was sentenced by U.S. District Judge Richard W. Story to two years in prison, to be followed by three years of supervised release. Ford has also been ordered to pay $1,274,907.36 in restitution.
Assistant U.S. Attorneys John S. Ghose, Alex Sistla, and Kelly Connors prosecuted the case. The case was investigated by the Federal Bureau of Investigation.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former contract security guard at ATF facility indicted for stealing firearmsRead the Press Release
MARTINSBURG, WEST VIRGINIA – Christopher Lee Yates, a former contract security guard at a U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) facility, was indicted by a federal grand jury on stolen firearms charges, United States Attorney Bill Powell announced.
Yates, age 52, of Martinsburg, West Virginia, is charged with one count of “Sale of Stolen Firearm,” one count of “Possession of Stolen Firearms,” one count of “Possession of Unregistered Firearm,” and one count of “Theft of Government Property.” Yates is accused of possessing and selling stolen firearms in Berkeley County in February 2019. Yates is also accused of stealing firearms, firearms parts, and ammunition valuing more than $1,000 from the ATF’s National Disposal Branch in Martinsburg, West Virginia.Yates faces up to 10 years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jeffrey A. Finucane is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Anyone with information regarding the location of these firearms, firearms parts, ammunition and/or persons who unknowingly purchased one or more of these items should contact ATF at 1-888-ATF-TIPS, email [email protected]; through its website at www.atf.gov/contact/atf-tips; or through the ReportIt ® app, www.reportit.com, available on both Google Play and the Apple App Store.
Former Wichita Lawyer Pleads Guilty to EmbezzlementRead the Press Release
WICHITA, KAN. – A former lawyer in Wichita pleaded guilty Monday to a federal embezzlement charge, U.S. Attorney Stephen McAllister said.
Christopher O’Brien, 69, Wichita, Kan., pleaded guilty to one count of embezzlement from an estate. In his plea, O’Brien admitted he embezzled more than $132,000 from the bankruptcy estate of Roger L. and Maria K. Altis while he was representing the couple.
O’Brien voluntarily surrendered his license to practice law in Kansas. In his plea, he agreed to an order of restitution for more than $728,000, including the Altis case and two others.
Sentencing is set for June 3. He faces a penalty of up to five years. McAllister commended the FBI and Assistant U.S. Attorney David Lind for their work on the case.
Former State Delegate Pleads Guilty to Defrauding United StatesRead the Press Release
NORFOLK, Va. – A former member of the Virginia General Assembly pleaded guilty today to his role in a conspiracy that resulted in the fraudulent award of over $80 million in government contracts.
According to court documents, Ronald A. Villanueva, 48, participated in a nine-year conspiracy involving over $80 million in fraudulently obtained government contracts. More specifically, Villanueva conspired with others to help two Virginia Beach companies secure Small Business Administration contracts that had been set aside for minority-owned businesses. Villanueva began working for one company, SEK Solutions, in or about 2005. When that company’s 8(a) status was set to expire in 2010, Villanueva and his co-conspirators set up a new company, Karda Systems, which on paper was run by Villanueva’s brother-in-law. However, in reality Karda’s contracting business was managed by Villanueva and others associated with SEK.
As part of the conspiracy, Villanueva and others misrepresented whether SEK and Karda were eligible for government contracts under the 8(a) program. In fact, neither company was eligible to participate in the program, yet Villanueva and his co-conspirators made numerous false statements and certifications to the contrary. During part of the conspiracy, Villanueva was a member of the Virginia General Assembly, and in one instance used his House of Delegates letterhead to send a letter to the SBA in support of Karda’s application to participate in the 8(a) program, knowing that it contained false and misleading statements about who actually operated the company. As a result of the fraud, the two companies were awarded over $80 million dollars in government contracts for which they were not eligible, and Villanueva received over $1 million in income from the companies.
Villanueva faces a maximum penalty of five years in prison when sentenced on July 2. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, Carol Fortine Ochoa, Inspector General, General Services Administration (GSA), Glenn A. Fine, Acting Inspector General, Department of Defense (DoD), and Hannibal “Mike” Ware, Inspector General, Small Business Administration, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Assistant U.S. Attorneys Alan M. Salsbury and Daniel T. Young are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-2.
Former Skagit County Deputy Sheriff Sentenced for Embezzling from Law Enforcement OrganizationRead the Press Release
A former long-time Skagit County Sheriff’s Deputy was sentenced today in U.S. District Court in Seattle to 60 days in prison and six months of home confinement with electronic home monitoring in connection with his theft of more than $30,000 from a police dog handlers organization, announced U.S. Attorney Brian T. Moran. BRIAN A. LEHR, 53, of Sedro Wooley, Washington, was the Secretary/Treasurer of the Pacific Northwest Police Detention Dog Association. For at least six years, LEHR stole money from the organization to use for his own expenses, such as restaurant bills, hotel and event expenses, and even his cable TV and cell phone bills. By the time the theft was discovered, LEHR had stolen $33,641. At the sentencing hearing U.S. District Judge John C. Coughenour noted the theft was a “breach of trust.”
According to records filed in the case, LEHR took his leadership position with the Association in 1998. The Association, which was founded by canine law enforcement officers, seeks to promote high-quality training of detection dog teams in the Pacific Northwest. LEHR had complete control over the Association finances, and there was little oversite. In 2013, LEHR prepared a financial report suggesting the Association had nearly $20,000 in its bank account, when in fact he had stolen all but $276.79. LEHR stole the money by simply making payments from the Association accounts to his credit card bills or cable and cell phone bills or by using the Association debit card at stores, restaurants, hotels, and event ticket sites. LEHR also withdrew cash from the accounts for his own expenses.
The thefts harmed the Association in ways beyond the financial cost. The Association has not been able to bring in trainers to work with narcotic detection dogs, and it has been unable to purchase equipment and update its website with information for members. The embezzlement damaged its reputation in the law enforcement community and hurt its efforts to recruit members in law enforcement.
LEHR pleaded guilty to wire fraud in December 2018.
The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney Andrew Friedman.
Former Orleans Parish Sheriff’s Office Employee SentencedRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that CIBONEY PARKER, age 25, of New Orleans, was sentenced Thursday, March 14, 2019 by Chief United States District Judge Nannette Jolivette Brown, to (3) years of probation with (8) months home detention and location monitoring for her role in attempting to introduce controlled substances into the Orleans Justice Center.
According to court documents, PARKER pleaded guilty to one count of violating Title 21, United States Code, Section 843(b), using a telephone in the commission of a conspiracy to distribute controlled substances. Elton Williams, an inmate at the Orleans Justice Center jail, solicited the assistance of his relative, PARKER (a civilian employee of the Orleans Parish Sheriff’s Office), and two friends, Brittany Theophile and Rachelle Kelson, to smuggle drugs into the jail. Theophile and Kelson provided the drugs, including marijuana, heroin, and Tramadol, to PARKER during her work shift. The Orleans Parish Sheriff’s Office Intelligence Division became aware of the plan through audio and visual surveillance and detained PARKER before she could gain access to Williams. All co-defendants have pleaded guilty; only Williams awaits sentencing.
U.S. Attorney Peter Strasser praised the work of the FBI and the Orleans Parish Sheriff’s Office Investigative Service Bureau. Assistant United States Attorney Tracey Knight is in charge of this prosecution.
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Former Credit Union President Pleads Guilty to EmbezzlementRead the Press Release
TOPEKA, KAN. –A former president of a credit union in Topeka pleaded guilty today to a federal charge of embezzlement, U.S. Attorney Stephen McAllister said.
Connie Marie Kent, 52, Topeka, Kan., pleaded guilty to one count of theft from a credit union. In her plea, she admitted the crime occurred while she was an officer and employee of 1st Kansas Credit Union, formerly the Post Office Credit Union. Membership in the credit union is limited to government employees.
Kent agreed to a restitution amount of approximately $39,895.
Sentencing is set for June 25. She faces a penalty of up to 30 years and a fine up to $1 million.
McAllister commended the Topeka Police Department and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Florida Pharmacist Sentenced to 10 Years in Prison for $100 Million Compounding Pharmacy Fraud SchemeRead the Press Release
A Florida pharmacist was sentenced to 120 months in prison today followed by three years supervised release. He was also orderd to pay $3.2 million in restitution and $1.4 million in forfeiture for his role in a massive compounding pharmacy fraud scheme, which impacted private insurance companies, Medicare and TRICARE. Eight other individuals have previously been sentenced in connection with the scheme. Various real properties, cars and a 50-foot boat have been forfeited as part of the sentencings.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Special Agent in Charge John F. Khin of the U.S. Defense Criminal Investigative Service’s (DCIS) Southeast Field Office made the announcement.
Ademola O. Adebayo, 55, of Odessa, Florida, was convicted on Jan. 11 after a four-day trial of one count of conspiracy to commit health care fraud and wire fraud, three counts of health care fraud, and one count of conspiracy to commit money laundering. He was sentenced before U.S. District Judge Federico A. Moreno of the Southern District of Florida, who presided over the trial.
According to evidence presented at trial, from 2012 to 2015, Adebayo and his co-conspirators engaged in a scheme to defraud private insurance companies, Medicare and TRICARE out of $121 million by submitting false and fraudulent claims for compounded drugs, primarily pain and scar creams, and other prescription medications that were not medically necessary, never provided, or both. The evidence established that in his role as the pharmacist at A to Z Pharmacy, a now-defunct pharmacy located in New Port Richey, Florida, Adebayo conspired to submit or cause the submission of claims that often amounted to several thousands of dollars for a single tube of pain or scar cream. In 2014, when insurance companies discovered the fraud at A to Z Pharmacy and terminated their contracts with the pharmacy, Adebayo agreed to become the straw owner of Havana Pharmacy & Discount in Miami, which Adebayo and his co-conspirators used to continue the fraud, the evidence showed.
The evidence further established that Adebayo personally benefited from the fraud and received $1.5 million through the fraud, which he used to purchase luxury vehicles, including a Ferrari, a Lamborghini, a Bentley, a Porsche and two Cadillacs, as well as a house in Land O Lakes, Florida. All of these items were seized by the government.
Eight other defendants have pleaded guilty in this case. Nicholas Borgesano, 46, of New Port Richey, is serving 15 years for his role as the owner of A to Z Pharmacy in the fraud that involved Havana Pharmacy, Medplus/New Life Pharmacy and Metropolitan Pharmacy, all of Miami; and Jaimy Pharmacy and Prestige Pharmacy, both of Hialeah, Florida.
In addition to Borgesano, the following defendants have previously been sentenced for their roles in the scheme:
- Scott P. Piccininni, 50, of Fort Lauderdale, Florida, sentenced to serve 51 months in prison;
- Bradley Sirkin, 56, of Boca Raton, Florida, sentenced to serve 46 months in prison;
- Peter B. Williams, 58, of New Port Richey, sentenced to serve 26 months in prison, to be served consecutively to a 60-month sentence of imprisonment he is serving as a result of his guilty plea to a separate indictment returned in the Southern District of Florida;
- Wayne M. Kreisberg, 41, of Parkland, Florida, placed on probation for a term of five years, to be served consecutively to a sentence of probation he is serving as a result of his guilty plea to a separate indictment returned in the Middle District of Florida;
- Joseph Degregorio, 71, of New Port Richey, sentenced to serve one year and one day in prison;
- Matthew N. Sterner, 48, of New Port Richey, sentenced to serve 36 months in prison; and
- Edwin Patrick Young, 49, of New Port Richey, sentenced to serve 66 months in prison.
This case was investigated by the FBI with support from HHS-OIG and DCIS and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case was prosecuted by Trial Attorneys Timothy P. Loper and Aleza Remis of the Fraud Section.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Financial Broker Pleads Guilty in Manhattan Federal Court to Tax Evasion and Failure to File Tax ReturnsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that RICHARD JOSEPHBERG pled guilty today to one count of tax evasion and three counts of willful failure to file tax returns. In particular, JOSEPHBERG admitted that he deliberately evaded the assessment of hundreds of thousands of dollars in federal income taxes by fraudulently reporting a 2011 commission of approximately $1.5 million as a long-term capital gain, which was taxed at a much lower rate than ordinary income. In addition, he admitted that he willfully failed to timely file any tax returns for the calendar years 2013 through 2015. As part of his plea, JOSEPHBERG agreed to pay at least $1,275,624 in restitution to the IRS and the New York State Department of Taxation and Finance. JOSEPHBERG pled guilty before United States Circuit Judge Richard J. Sullivan.
U.S. Attorney Geoffrey S. Berman said: “As he admitted, Richard Josephberg defrauded the IRS and evaded taxes by disguising more than $1.5 million in income as long-term capital gain. He also admitted he failed to file tax returns for four years. Now Josephberg awaits sentencing for his multifaceted tax dodge.”
According to the Indictment, public filings, and other statements made in open court:
JOSEPHBERG was previously convicted in September 2007, in the U.S. District Court for the Southern District of New York, of 16 counts of tax fraud and one count of health care fraud, which resulted in a sentence of 50 months in prison and three years’ supervised release. While on supervised release for that conviction, he began engaging in the criminal conduct that formed the basis of today’s plea.
Specifically, starting in late 2010, JOSEPHBERG began working for an investor relations firm (“Firm-1”) in Manhattan. Through the individual who operated Firm-1, JOSEPHBERG secured a commission-based arrangement with another investment firm (“Firm-2”), which agreed to pay JOSEPHBERG a commission of approximately 15 percent of any profit generated by Firm-2 on financing deals originated by JOSEPHBERG. For originating one such financing deal, JOSEPHBERG was entitled to commission payments totaling approximately $1.57 million in 2011. After receiving payments totaling approximately $35,725 in his own name, JOSEPHBERG directed Firm-2 to issue the remaining commission payments in the name of a newly formed nominee corporate entity called “Almorli Advisors Inc.” JOSEPHBERG opened a new bank account in the name of Almorli Advisors Inc. (“Almorli Bank Account-1”), and deposited payments totaling approximately $1.53 million into that account.
In March 2012, while preparing to file 2011 federal income tax returns, JOSEPHBERG took steps to evade paying hundreds of thousands of dollars in federal income taxes by disguising and concealing the type of income that JOSEPHBERG had received from Firm-2. On or about March 27, 2012, JOSEPHBERG formed a second entity called “Almorli Advisors NY LLC,” which served as a shell company to insulate JOSEPHBERG from IRS scrutiny. JOSEPHBERG caused his accountant to prepare a false 2011 partnership income tax return, Form 1065, in the name of Almorli Advisors NY LLC (the “2011 Form 1065”), listing JOSEPHBERG as a 99 percent partner and JOSEPHBERG’s son as a one percent partner. To evade a substantial part of the income taxes due and owing for 2011, JOSEPHBERG caused the 2011 Form 1065 falsely to report the commission payments from Firm-2, totaling approximately $1,574,922, as a long-term capital gain, rather than ordinary income. JOSEPHBERG’s purported 99 percent share of this false long-term capital gain flowed through to JOSEPHBERG’s 2011 individual income tax return, Form 1040. JOSEPHBERG’s fraudulent misclassification of this income resulted in a reported tax liability that was hundreds of thousands of dollars lower than the true tax liability because individual long-term capital gains were taxed at a significantly lower rate than ordinary income.
JOSEPHBERG also engaged in a scheme to evade the assessment of federal income taxes for calendar years 2013 through 2016. During those years, JOSEPHBERG received substantial income from performing consulting and other professional services. Despite earning substantial income, JOSEPHBERG failed timely to file any federal income tax returns for the calendar years 2013 through 2016 until after IRS agents informed JOSEPHBERG in May 2017 that he was under investigation. In addition to not timely filing any tax returns, JOSEPHBERG took various affirmative steps to evade the assessment of taxes. Among other things, JOSEPHBERG routed substantial amounts of income through Almorli Bank Account-1 and another bank account in the name of Almorli Advisors Inc., which bank accounts JOSEPHBERG controlled and used to pay for his personal expenses.
JOSEPHBERG’s tax evasion and failure to file tax returns had a dual purpose: by using corporate entities to conceal personal income, JOSEPHBERG was attempting both to evade paying his substantial outstanding tax liabilities from prior years (1997, 1998, and 2005) and to evade assessment of taxes for 2011 and 2013 through 2016, as charged in the Indictment.
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JOSEPHBERG, 72, of Greenwich, Connecticut, pled guilty to one count of tax evasion for the tax year 2011, which carries a maximum sentence of five years in prison, and three counts of willful failure to file tax returns for the tax years 2013 through 2015, each of which carries a maximum sentence of one year in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. As part of his plea, JOSEPHBERG agreed to pay at least $1,275,624 in restitution to the IRS and the New York State Department of Taxation and Finance. JOSEPHBERG is scheduled to be sentenced by Judge Sullivan on July 15, 2019, at 2 p.m.
Mr. Berman praised the outstanding work of the Internal Revenue Service, Criminal Investigation, in this case. Mr. Berman also thanked the New York State Department of Taxation and Finance for its assistance in the prosecution.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Olga I. Zverovich and Andrew D. Beaty are in charge of the prosecution.
Felon in Possession of a Firearm Sentenced to Federal PrisonRead the Press Release
BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced today that District Judge John W. deGravelles sentenced TERRION JACKSON, a 24 year-old resident of Baton Rouge, Louisiana, to 87 months in federal prison following his conviction of possessing a firearm by a convicted felon. The Court further sentenced JACKSON to 3 years of supervised release following his term of imprisonment and ordered that the firearm be forfeited.
On February 5, 2018, a Baton Rouge Police Officer stopped JACKSON, who was driving a vehicle with an expired registration tag. The officer smelled marijuana coming from the vehicle and asked JACKSON and his passenger to step out at which time JACKSON told the officer he had a gun under the driver’s seat. The officer returned to the vehicle and recovered a loaded Canik55, 9mm pistol from underneath the driver’s seat, along with marijuana packaged for sale which JACKSON admitted belonged to him.
JACKSON has three prior felony convictions which prohibit him from possessing a firearm. On May 31, 2016, in the Nineteenth Judicial District Court, JACKSON pled guilty to simple robbery, simple burglary of an inhabited dwelling, and aggravated burglary.
U.S. Attorney Fremin stated, “This is yet another step towards our goal of making our communities safer. Keeping guns out of the hands of violent felons is one of my office’s top priorities. We will continue to aggressively pursue those who illegally possess firearms and use them to endanger the lives of other citizens. I appreciate the great work performed in this case by our prosecutors, the ATF, and the Baton Rouge Police Department.”
“ATF New Orleans Field Division works every day with our partners to take the most violent offenders off our streets and put them behind bars where they belong,” said Special Agent in Charge Dana Nichols. “ATF will continue working to keep our communities and our citizens safe from those who commit acts of violence.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Baton Rouge Police Department. The case is being prosecuted by Assistant United States Attorney Jessica Thornhill.
FBI Arrest Five Greenville Men on Federal Gun ChargesRead the Press Release
JACKSON, MISS. – Five Greenville, Miss. men were taken into custody by law enforcement on Tuesday after being indicted by a federal grand jury on charges of felon in possession of a weapon, and three of the five are additionally charged with drug trafficking and related weapons charges, announced William C. Lamar, United States Attorney for the Northern District of Mississippi and Christopher Freeze, Special Agent in Charge of the FBI in Mississippi.
On Tuesday, March 19, 2019, law enforcement took the following individuals into custody:
- Ted Bell, age 41, of Greenville.
- Henry Brown, age 39, of Greenville.
- Cornelius K. Harris, age 29, of Greenville.
- George Jefferson, age 34, of Greenville.
- Lonnie Nalls, age 35, of Greenville.
Bell is charged in a four count indictment with two counts of felon in possession of a firearm, one count of possession with intent to distribute – marijuana and one count of possession of a firearm in relation to and in furtherance of drug trafficking. If convicted, Bell faces up to 25 years in federal prison and a fine of up to $1 million.
Brown is charged in a three count indictment with one count of felon in possession of a firearm, one count of possession with intent to distribute – cocaine and one count of possession of a firearm in relation to and in furtherance of drug trafficking. If convicted, Brown faces up to 30 years in federal prison and a fine of up to $2.5 million.
Jefferson is charged in a three count indictment with one count of felon in possession of a firearm, one count of possession with intent to distribute – marijuana and one count of possession of a firearm in relation to and in furtherance of drug trafficking. If convicted, Jefferson faces up to 25 years in federal prison and a fine of up to $1 million.
Harris and Nalls are each charged in a one count indictment with being a felon in possession of a firearm. If convicted, Harris and Nalls each face up to 10 years in federal prison and a fine of up to $250,000.
All five individuals made initial appearances before United States Magistrate Judge Jane M. Virden, United States District Court for the Northern District of Mississippi in Greenville on Tuesday. Magistrate Judge Virden ordered that Bell, Harris, Jefferson and Nalls be held pending Detention Hearings set for Thursday, March 21, 2019.
Agencies assisting with the investigation and arrests were the Greenville Police Department, the District Attorney’s Office for the Fourth Circuit Court and the United States Marshals Service. The case is being prosecuted by Assistant United States Attorney Robert Mims. -
These charges are merely an accusation, and defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Dominican Republic Man Sentenced to over Six Years’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 14, 2019, United States District Court Judge James M. Munley sentenced Willis DeLaRosa-Baez, age 34, to 80 months’ imprisonment and a four-year term of supervised release, for conspiring to distribute heroin and crystal methamphetamine.
According to United States Attorney David J. Freed, DeLaRosa-Baez, his co-defendant, Daniel Silvestre-Ubri, and other individuals conspired to distribute heroin and crystal methamphetamine in Pennsylvania between February 4, 2016 and April 6, 2016. DeLaRosa-Baez admitted to supplying other drug dealers with narcotics, and to trafficking in excess of 2.6 kilograms of crystal methamphetamine and 3 kilograms of heroin, the latter of which is the equivalent of 120,000 potentially fatal doses of heroin.
DeLaRosa-Baez, a citizen of the Dominican Republic, entered the United States illegally and will be deported upon the conclusion of his sentence. He was indicted on May 17, 2016, and has remained in custody since his arrest on June 22, 2016. His co-defendant, Silvestre-Ubri, also has remained in custody since his arrest on March 22, 2018, pleaded guilty, and is awaiting sentencing.
The investigation was conducted by Homeland Security Investigations, the Pennsylvania Office of the Attorney General and the Pennsylvania State Police. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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District Man Sentenced to 47 Months in Prison on Federal Firearms and Narcotics ChargesRead the Press Release
WASHINGTON – Deangelo Jenkins, 33, of Washington, D.C., was sentenced today to 47 months in prison on firearms and narcotics offenses stemming from an investigation in which law enforcement recovered two loaded handguns and cocaine base, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Jenkins pled guilty on Dec. 4, 2018, in the U.S. District Court for the District of Columbia, to two counts of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year and one count of possession of cocaine basis. He was sentenced by the Honorable Timothy J. Kelly. Following his prison term, he will be placed on three years of supervised release.
According to the government's evidence, on Oct. 24, 2017, MPD officers observed Jenkins driving a white Infiniti that had been identified in connection with a homicide investigation. Officers made contact with Jenkins and advised him that the vehicle was being seized in reference to the pending homicide investigation. Jenkins was then asked to exit the vehicle. Jenkins, who was talking on a cellular phone at the time, did not comply. He acted nervous and failed to exit the vehicle despite being ordered to do so by officers on several occasions. An officer then reached through the driver’s side window and attempted to unlock the driver’s side door, but Jenkins re-locked the door before the officer could open it. This happened a number of times before officers could successfully get Jenkins out of the vehicle. Once he was out of the vehicle, MPD officers were able to impound it for investigative purposes.
Jenkins was not arrested at that time. The following day on Oct. 25, 2017, pursuant to a search warrant, MPD officers searched the vehicle. During the search, officers recovered a .45-caliber handgun from the center console of the vehicle. The firearm had one round of ammunition in the chamber and 10 rounds in the magazine.
Following the discovery of the gun and ammunition, an arrest warrant was issued. On Nov. 9, 2017, members of the U.S. Marshals Service observed Jenkins entering an apartment building in the 2900 block of 14th Street NW. Jenkins was arrested inside an apartment. During a search of Jenkins, officers recovered a .357-caliber revolver from his waistband area. The firearm was loaded with six rounds of ammunition in the chamber.
Jenkins was arrested and transported to a hospital after complaints of feeling ill. While at the hospital, an additional search of the defendant was conducted, and officers found a large white rock-like substance located in the right front change pocket of the defendant’s pants. The white substance was tested and determined to be cocaine base.
At the time of his arrest in this case, Jenkins was barred from possessing a firearm due to previous convictions in the District of Columbia and Prince George’s County, Md. for armed robbery, firearms and other offenses.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They expressed appreciation for the assistance provided by the U.S. Marshals Service. They also commended the efforts of those who worked in the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialist Teesha Tobias and former Paralegal Specialist Jeannette Litz.
Finally, they expressed appreciation for the work of Assistant U.S. Attorney Emory V. Cole, who prosecuted the case.
Detroit Man Sentenced to 6 Months in Prison for Stealing More than $280,000 in Government BenefitsRead the Press Release
A Detroit man was sentenced yesterday to six months in prison for stealing more than two-hundred and eighty thousand dollars from the Social Security Administration and the Department of Veteran’s Affairs, U.S. Attorney Matthew Schneider announced.
Schneider was joined in the announcement by Resident Agent in Charge Adam Lowder, Social Security Administration Office of the Inspector General, Office of Investigations, Detroit Office; and Special Agent in Charge Gregg Hirstein, Department Veterans Affairs Office of the Inspector General.
Walter Terrell Sr., 76, was sentenced by U.S. District Judge George Caram Steeh, III in Detroit, Michigan. After the conclusion of his prison term, Terrell must also spend three years on supervised release. The Court further ordered Terrell to pay full restitution to the government.
According to court records, Terrell’s mother passed away in the fall of 1981. She was receiving Social Security retirement insurance benefits at the time and because SSA was unaware of her death, SSA continued to issue monthly Treasury checks in her name. The erroneous payments continued for approximately 37 years—$253,327.00 in total. Terrell then unlawfully converted those benefits by forging his late mother’s name and cashing hundreds of checks. During the same period, Terrell also unlawfully retained $35,649.00 in payments made to his mother by the Department of Veterans Affairs.
In 2014, as part of the Medicare Non-Utilization Project, an SSA initiative designed to fight fraud by contacting elderly beneficiaries who have not used their Medicare in three or more years, SSA made contact with Mr. Terrell, who reported that his mother was “on vacation.” Terrell then arranged for someone to impersonate his mother during a subsequent phone call with the agency, allowing his scheme to continue for another three and a half years. The fraud was finally exposed after a 2018 SSA-OIG audit identified a death certificate for a woman who was ultimately confirmed to be Terrell’s mother.
This case was investigated by special agents from both SSA-OIG and VA-OIG and was prosecuted by Special Assistant U.S. Attorney Ryan A. Particka.
Des Moines Man Sentenced to 120 Months in Prison for Felon in Possession of a FirearmRead the Press Release
Des Moines, Iowa – On March 13, 2019, Ryan Nicholas Haynes, age 28, was sentenced by United States District Court Judge Stephanie M. Rose for Felon in Possession of a Firearm. Haynes was sentenced to 120 months’ imprisonment, to be followed by a three-year term of supervised release.
On November 6, 2018, following a two-day trial, a jury found Ryan Nicholas Haynes, 28, guilty of one count of Felon in Possession of a Firearm.
On July 29, 2017, Haynes was present on a party bus that was stopped for a traffic violation in downtown Des Moines, Iowa. Officers smelled marijuana coming from the bus, so they removed the passengers to investigate further. When Haynes was stepping off the bus, he removed marijuana from his pocket and handed it to one of the officers. A pat-down search of Haynes revealed a firearm in his pants. Before officers could recover the firearm, Haynes ran from them. After a short foot chase, officers apprehended Haynes near 16th Street and Grand Avenue. The firearm was recovered in a flowerbed outside a townhome in the 1600 block of Grand Avenue. This was right next to where Haynes had jumped a fence while running from officers. The firearm was loaded with 14 live rounds of ammunition. It was identified as a Glock, Model 22, .40 caliber handgun.
The case was investigated by the Des Moines Police Department’s Summer Enforcement Team and the Federal Bureau of Investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Daisy Man Pleads Guilty to Ammunition PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that John Douglas Walker III., age 39, of Daisy, Oklahoma, entered a guilty plea to Felon in Possession of Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that on or about February 5, 2019, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, ammunition which had been shipped and transported in interstate and foreign commerce.
The charges arose from an investigation by the United States Marshals Service and the Bureau of Indian Affairs.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Convicted Felon Sent to Prison for Possessing FirearmRead the Press Release
NEWPORT NEWS, Va. – A Hampton man was sentenced today to nearly four years in prison for being a felon in possession of a firearm.
“A convicted felon in possession of a firearm poses a serious risk to the safety of our community,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Slaughter has an extensive criminal record that includes assault and battery on a family member and assault on a law enforcement officer. In this case, he attempted to evade police and possessed a loaded handgun that he threw into a public parking lot. We will continue to prosecute these cases at every opportunity and remove violent felons like Slaughter from our communities.”
According to court documents, on March 16, 2018, Newport News Police Department responded to the Happy Shopper store on Marshall Avenue in reference to two males in possession of firearms. Officers made contact with the two suspects, Carl A. Slaughter, 24, and another male. One officer observed a firearm magazine sticking out of Slaughter’s waistband and asked if Slaughter had a concealed carry permit. Slaughter immediately ran from the store through a parking lot, and officers pursued Slaughter on foot. Officers observed Slaughter throw a firearm during the chase. Slaughter was apprehended and the firearm, a Taurus 9 mm with an extended capacity magazine containing 28 rounds with one round chambered, was recovered.
Slaughter had previously been convicted of assault and battery on a law enforcement officer and was on supervised probation at the time of this offense. His assault and battery on a law enforcement officer conviction resulted from a March 6, 2017 traffic stop in Newport News. Slaughter resisted law enforcement during the interaction, and one officer was hospitalized with a major knee injury and another officer sustained knee and elbow abrasions. Slaughter has also previously been convicted of assault and battery on a family member, violation of a protective order, contributing to the delinquency of a minor, violation of probation, receiving stolen goods, and failure to appear.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by Senior U.S. District Judge Henry Coke Morgan, Jr. Assistant U.S. Attorney Megan M. Cowles prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:18-cr-84.
Chuck Person, Former Division I Men’s Basketball Coach, Pleads Guilty to Bribery in Manhattan Federal CourtRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that CHUCK CONNORS PERSON, a former men’s basketball coach at Auburn University (“Auburn”), pled guilty in Manhattan federal court today to receiving approximately $91,500 in cash bribes from athlete advisers in exchange for using his influence over Auburn basketball players to retain the services of the advisers paying the bribes. PERSON pled guilty before U.S. District Judge Loretta A. Preska.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he has now admitted, Chuck Person abused his position as a coach and mentor to student-athletes in exchange for personal gain. In taking tens of thousands of dollars in cash bribes, Person not only placed personal financial gain above his obligations to his employer and the student-athletes he coached, but he broke the law.”
According to the Complaint, the Indictment, statements made in court and publicly available documents:
Over the course of a year, PERSON, a former men’s basketball coach at Auburn University until shortly after his arrest, agreed to accept cash bribes in return for agreeing to exert his influence over student-athletes on the Division I men’s basketball team he coached to retain the services of the bribe-payers, including once the student-athletes entered the National Basketball Association (“NBA”).
Beginning in 2016, and continuing into September 2017, when PERSON was arrested, PERSON received approximately $91,500 in cash bribes from a financial adviser and business manager, who, unbeknownst to PERSON, was providing information to law enforcement (“CW-1”). In exchange for the cash bribes, PERSON agreed to exert his influence over certain student-athletes PERSON coached at Auburn University to retain the services of CW-1 once those players entered the NBA. The bribe payments are alleged to have been initially arranged by a co-conspirator who had a preexisting relationship with PERSON and operated a clothing store that specialized in making bespoke suits for professional athletes.
Over the course of the scheme, and in exchange for the cash bribes described above, PERSON did, in fact, arrange multiple meetings between CW-1 and Auburn players and/or their family members. In those meetings, PERSON falsely touted CW-1’s qualifications as a financial adviser and business manager without disclosing that PERSON was, in fact, being bribed to recommend CW-1. In one recorded meeting, PERSON stressed to an Auburn University player the importance of keeping their relationship with CW-1 a secret. Person stated, “most important part is that you . . . don’t say nothing to anybody . . . don’t share with your sisters, don’t share with any of the teammates, that’s very important cause this is a violation . . . of rules, but this is how the NBA players get it done, they get early relationships, and they form partnerships.” PERSON later told that player that CW-1 would purchase him a separate cell phone over which they could communicate so as to conceal the nature of the scheme.
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PERSON, 54, of Auburn, Alabama, pled guilty to one count of conspiracy to commit bribery. As a condition of his plea, PERSON agreed to forfeit $91,500. The charge carries a maximum term of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Sentencing is scheduled for July 9th, 2019, before Judge Preska.
Mr. Berman praised the work of the FBI and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Robert L. Boone, Aline R. Flodr, Noah Solowiejczyk, and Eli J. Mark are in charge of the prosecution.
Chinese Citizen Sentenced in Scheme to Sell Mislabeled Dietary SupplementsRead the Press Release
Xu Jia Bao (aka Fred Xu), of Shanghai, China, was sentenced in Dallas yesterday to 18 months’ imprisonment and one year of supervised release in connection with a scheme to sell mislabeled dietary supplements, the Department of Justice announced today.
Xu, 48, is the principal of Shanghai Waseta International Trade Co. Ltd., a Chinese firm that sells raw ingredients for use in dietary supplements. Xu pleaded guilty in August 2018 in the Northern District of Texas to one count of wire fraud. Waseta, the company, also pleaded guilty to wire fraud in September 2018. The company was sentenced in February 2019 to one year of probation and ordered to pay a $500,000 fine.
In pleading guilty, Xu admitted that he agreed with others working at Waseta to sell synthetic stimulant ingredients, including the substance known as DMHA, to a purported dietary supplement manufacturer in the United States. Xu admitted that the purported dietary supplement manufacturer, actually a confidential government informant, told him that Waseta ingredients would not be accurately listed on the labels of the finished dietary supplement. Xu admitted that he knew major American retailers would refuse to carry supplements known to contain certain stimulants, such as DMHA. Xu also admitted that he and Waseta caused a falsely labeled shipment of DMHA to be sent to Texas.
“Consumers are entitled to trust that dietary supplements products accurately identify their ingredients,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “We will vigorously pursue and prosecute those who attempt to circumvent the law by falsely identifying the substances they import into the United States.”
Xu and Waseta both were sentenced by U.S. District Court Judge Sam A. Lindsay of the Northern District of Texas. Xu was arrested in September 2017 while attending a dietary supplement trade show in Las Vegas. Another defendant named in the case, Li Ting Ting (a.k.a. Sunny Lee), the overseas sales manager for Shanghai Waseta, is not believed to be in the United States.
“Consumers deserve to know what’s in the supplements they ingest,” said U.S. Attorney Erin Nealy Cox. “The Northern District of Texas will not stand by as companies mislead consumers.”
“Dietary supplements that contain undeclared synthetic stimulant ingredients pose a risk to the health of U.S. consumers,” said Charles L. Grinstead, Special Agent in Charge, FDA Office of Criminal Investigations’ Kansas City Field Office. “We will continue to investigate and bring to justice those who jeopardize the public health by importing and selling misbranded supplements.”
The case was investigated by FDA’s Office of Criminal Investigations. The case was prosecuted by David Sullivan and Patrick R. Runkle, Trial Attorneys in the Department of Justice’s Consumer Protection Branch, and Kate Rumsey and Douglas Brasher, Assistant United States Attorneys for the Northern District of Texas.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Texas, visit its website at https://www.justice.gov/usao-ndtx.
Chenango County Man Pleads Guilty to Trying to Have Sex with A 13 Year Old GirlRead 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 Jeremy Custer, 36, of Norwich, NY, pleaded guilty to attempted coercion and enticement of a minor before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a mandatory minimum penalty of 1) years in prison and a maximum of life.
Assistant U.S. Attorney Richard A. Resnick, who is handling the prosecution, stated that on September 14, 2018, an undercover New York State Police Investigator (UC) received a private message from “Fastmeet” user “Jeremy” on the UC’s Fastmeet undercover profile. Fastmeet is an application that can be downloaded on to a cellular telephone. The application allows users to communicate with other users and see their GPS location.
The UC’s undercover Fastmeet profile included a profile picture of a female child and listed her name as Jenny, her age as 13-years-old, and her GPS location as Henrietta, NY. The defendant’s profile listed him as 36-years-old and contained multiple pictures of a white male who appeared to be in his 30’s. The male pictured in the profile was later identified as Custer.
Between September 17, 2018, and September 22, 2018, the defendant and the UC exchanged text messages in which Custer attempted to coerce and entice the UC, who he believed was a 13-year-female, to engage in sexual activity. Some of the messages included:
• “What have you done with other guys? I’ve obviously been all the way and am not in any way expecting or wanting you to unless you feel you’re ready for it. There are a lot of other things we can do besides that or leading up to it.”
• “I like to get pictures and maybe videos, but again only if you’re comfortable sending them to me. I will promise I won’t show them to anyone else. Anything you want to send. They can be naked or dressed.”
• “Do you want me to spank and punish you or would you rather have me hug, kiss and admire your beauty?”
• “I would obviously love to be your first, but it certainly doesn't have to be tonight unless you're sure you want to.”
• “I’m getting lube and a couple different forms of contraceptives to minimize the risk of pregs.”On September 22, 2018, the defendant made plans to go to the 13-year-old female child’s residence in Henrietta and pick her up. Custer advised he was on his way and that he had booked a hotel room for them. When the defendant arrived at the UC’s purported residence, he was arrested. In his vehicle, the defendant had contraceptive lubricants, lotions, and a “Plan B” oral contraceptive.
The plea is the result of an investigation by the New York State Police, under the direction of Major Eric Laughton, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for June 24, 2019, at 3:00 p.m. before Judge Geraci.
# # # #California Man Pleads Guilty to Sex Trafficking of Six VictimsRead the Press Release
KANSAS CITY, Mo. – A Sacramento, Calif., man pleaded guilty in federal court today to the sex trafficking of six victims.
Ronald Ean Taylor, 45, pleaded guilty before U.S. District Judge Gary A. Fenner to six counts of the sex trafficking of an adult.
By pleading guilty today, Taylor admitted that he used force, fraud or coercion to cause six victims to engage in prostitution, from which he benefitted financially. Taylor trafficked six separate victims at various times between Nov. 1, 2014, and May 31, 2017.
The investigation began in June 2016, when one of Taylor’s victims was contacted by Kansas City, Mo., police officers. She told officers that Taylor was a pimp who lived in California and sold drugs and prostitutes in the Kansas City area. She said Taylor verbally threatened to harm her, was mean, had anger issues, and was manipulative. He provided her with drugs and used her to meet other women with drug addictions. She told officers that one of Taylor’s victims, identified in court documents as “Victim 6,” used to “work” for Taylor and died in California from a drug overdose while she was with him.
The women had ads posted on Backpage and Taylor used hotels near Blue Ridge Cutoff near the sports stadiums to conduct his business. He would get the women to go to California and show them an extravagant lifestyle. He started them off dancing in strip clubs, then suggested they work as prostitutes. When the women agreed to prostitute, Taylor would fly them back to Kansas City to work. Taylor kept the money earned by the women from prostitution.
A second victim told investigators that Taylor was violent and on one occasion hit her over the head with liquor bottle. The second victim stated she felt like she would be hurt if she did not have sex with him. She said Taylor carried a firearm.
A third victim told federal agents that Taylor was physically violent towards her and would take all of the proceeds from the acts of prostitution. She said Taylor choked her to unconsciousness and forcibly raped her.
A fourth victim’s mother contacted law enforcement to report that her daughter was in Hollywood, Calif., with Taylor and was being held against her will. Taylor had brought the fourth victim to California on two occasions so that she could purportedly model. He provided her with illegal narcotics and kept her in a constant state of intoxication to a point where she became dependent. She told investigators that Taylor kept her from contacting her mother and became hostile; he used her drug dependency to motivate her to do things she would not normally do.
A fifth victim told investigators that she and a sixth victim (now deceased due to a drug overdose) were addicted to heroin. Taylor used heroin and a trip to California to entice them to work as prostitutes. He paid for both of their airfares to California and put them up in a motel somewhere in Los Angeles. Taylor continued to supply them with drugs and then flew them both back to Kansas City to work as prostitutes. On one occasion, she said, Taylor slapped her in the face and forcibly raped her. She and another victim told investigators that Taylor also was physically abusive to the sixth victim. A witness stated she saw Taylor throw her against the wall and choke her.
Under the terms of today’s plea agreement, Taylor will be sentenced to 18 years in federal prison without parole and must pay restitution to his victims. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Los Angeles, Calif., Police Department and the Sacramento, Calif., Police Department in conjunction with the Human Trafficking Rescue Project.
California Man Charged in Manhattan Federal Court with Defrauding Thousands of Donors to Scam Political Action CommitteesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that JOHN PIERRE DUPONT, a/k/a “John Gary Rinaldo,” was arrested this morning and charged with wire fraud and aggravated identity theft for his role in a years-long, nationwide scheme to defraud thousands of donors who believed they were donating to political action committees and political campaigns. The defendant is expected to be presented this afternoon in the District Court of Arizona.
U.S. Attorney Geoffrey S. Berman said: “As alleged, John Pierre Dupont operated multiple fake political action committees and falsely claimed to be raising money to support more than a dozen campaigns. Thousands of donors believed their hard-earned money was being used to support the causes described in solicitations, but in reality, the scam PACs had no operations beyond the fundraising itself, and no funds were used to support candidates. My Office will continue to ensure that fraudulent fundraising does not pay – indeed, will result in criminal prosecution – by rooting out scam PACs wherever we find them.”
According to the Complaint[1] unsealed today in Manhattan federal court:
From at least in or about 2015 up to and including the present, JOHN PIERRE DUPONT defrauded thousands of donors who believed they were donating to three political action committees established by DUPONT (the “Scam PACs”),[2] or to campaigns the Scam PACs falsely claimed to support. DUPONT’s scheme resulted in more than $250,000 being donated through websites he controlled and operated, all of which was retained by DUPONT, both to enrich himself personally and to perpetuate the alleged crime.
The websites purported to be raising money in support of Democratic congressional and senate campaigns generally, as well as approximately 10 particular Senate candidates, a candidate for governor, and a candidate for president. None of the money raised went either to those campaigns or to support those candidates whatsoever. Another website operated by DUPONT purported to be raising money “to unite immigrant families” and provide services in connection with certain immigration policies. In particular, the Foundation for Sanity in Politics PAC website claimed that donations would “go to help pay our volunteer attorneys’, doctors’, nurses’ and social workers’ costs and pay for transportation to unite immigrant families.” In fact, that PAC had no volunteers, and dedicated no funds to paying for doctors, social workers, or any other professionals, advocacy, or political operations.
The scheme targeted victims across the country, raising funds on the basis of fraudulent representations that the donations would support the relevant causes, candidates, and campaigns. Instead, virtually all of the money raised was paid to DUPONT or used to perpetuate the fraud through additional fundraising and overhead expenditures. None of the money donated to the Scam PACs was spent on political contributions during the relevant time period, and DUPONT failed to report the donations, as required, in filings with the Federal Election Commission.
Donations collected by DUPONT during the relevant period totaled more than $250,000, none of which went to campaigns or support for any candidate or cause.
* * *
JOHN PIERRE DUPONT, 80, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and aggravated identity theft, which carries a mandatory two years in prison consecutive to any other sentence imposed.
The statutory maximum and mandatory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the Special Agents of the United States Attorney’s Office for the Southern District of New York.
If you think you are a victim of the scheme alleged in this press release, please contact Wendy Olsen, Victim & Witness Services for the U.S. Attorney’s Office for the Southern District of New York, at 866-874-8900.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Alex Rossmiller and Ryan Finkel are in charge of the prosecution.
The charges contained in the Complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint constitutes only allegations, and every fact described herein should be treated as an allegation.
[2] Businessmen for a Businessman President PAC, Foundation for Sanity in Politics PAC, and Democrats for Congress PAC.
Burlington Man Sentenced for Ammunition ChargeRead the Press Release
BOSTON - A Burlington man was sentenced yesterday in federal court in Boston for illegally possessing 30 pieces of ammunition.
Brendan Sheils, 32, was sentenced by Judge Leo T. Sorokin to 46 months in prison and three years of supervised release. In December 2018, Sheils pleaded guilty to one-count of being a felon in possession of ammunition.
On Feb. 22, 2018, police received information that Sheils was in possession of an Uzi bump stock weapon and desired to attack the Burlington Police Department. The following day, police executed a search warrant at Sheils’ residence, where they recovered 30 pieces of ammunition, as well as an AR-15 type rifle, which was determined to be a “ghost gun” – a gun that is made by purchasing component parts and then assembling the pieces together. The rifle was loaded with 28 of the pieces of the seized ammunition.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Woburn Police Chief Robert J. Ferullo Jr.; and Burlington Police Chief Michael Kent made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.
Browning man pleads guilty to strangulationRead the Press Release
GREAT FALLS – A Browning man on Monday admitted to strangling a woman during an argument in a vehicle on the Blackfeet Indian Reservation in September 2018, U.S. Attorney Kurt Alme said.
Elijah Blaine Eagleman, 24, pleaded guilty to strangulation during a hearing before U.S. District Judge Brian M. Morris.
Eagleman faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. He is detained.
Prosecutors said evidence would show that on Sept. 8, 2018, Eagleman hit and strangled the victim near Browning, on the Blackfeet Reservation. The victim lost consciousness after Eagleman choked her with his left forearm and does not recall being hit in the face by Eagleman. The victim said in a statement that the two of them had been arguing.
A law enforcement officer responded after a woman reported to law enforcement that she had stopped at a domestic assault at the intersection of U.S. Highways 2 and 89, at the Y, near Browning. She said a man was on top of a female, who appeared to be trying to wave her down. The officer approached the vehicle and saw that the victim, who was the driver, had fresh bruises on her face and was crying. The officer had the victim get out and walk to the back of the vehicle, where she said Eagleman had hit her but that she was “okay now.” The victim was treated at the Indian Health Service and released the next morning.
In an interview with the case agent, the victim said Eagleman had wrapped his forearm around her neck and pulled her backward into his seat, choking her. The agent observed injuries to the victim’s face and neck as being consistent with a strangulation assault.
Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the Bureau of Indian Affairs and Blackfeet Tribal Police.
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Bank Analyst Stole Account Holder Info then Used it in Counterfeit Check Fraud SchemeRead the Press Release
PITTSBURGH, PA – A resident of Columbus, Ohio pleaded guilty in federal court to charges of conspiracy and aggravated identity theft, United States Attorney Scott W. Brady announced today.
Sarah M. Wiley, 35, pleaded guilty to two counts before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, beginning in and around September, 2014, and continuing until in and around October, 2017, Sarah M. Wiley, as an analyst for JPMorgan Chase Bank, accessed without authorization personal identifiers, including names and Social Security numbers of JPMorgan Chase account holders. She then shared the information with her father, Karl Edward Wiley, who was indicted earlier in 2018 on charges of conspiracy to produce counterfeit identification documents and checks. Some of the counterfeit checks were negotiated at the Rivers Casino in Pittsburgh. Karl Wiley is pending trial.
Judge Fischer scheduled the sentencing for July 25, 2019 at 9:30 a.m. The law provides for a total sentence of seven years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
Homeland Security Investigations (HSI) Harrisburg and the Pennsylvania State Police conducted the investigation that led to the prosecution of Sarah M. Wiley.
Australian Woman Convicted at Trial of Assault and Interference with Crew on Flight That Landed at Los Angeles International AirportRead the Press Release
LOS ANGELES – An Australian woman who assaulted a flight attendant during a United Airlines flight from Melbourne to Los Angeles International Airport earlier this year has been found guilty of federal charges.
Adau Akui Atem Mornyang, 24, of Victoria, Australia, was convicted on Thursday in relation to a January 21 incident in which she appeared to be intoxicated and was verbally and physically abusive to personnel and other passengers during the flight. The jury found Mornyang guilty of a felony charge of interference with a flight crew and a misdemeanor assault count.
According to the evidence presented at trial, several hours into the flight, passengers approached a flight attendant to complain about Mornyang’s disruptive behavior, which included flailing her arms and yelling obscenities and racial slurs. When the flight attendant approached to assess the situation, Mornyang began to shout at the flight attendant and then slapped him across his face. The flight attendant attempted to restrain Mornyang until federal air marshals could assist. The federal air marshals were forced to stay with Mornyang in the rear galley of the plane for the remainder of the flight.
Mornyang is scheduled to be sentenced on June 24 by United States District Judge Cormac J. Carney. As a result of the guilty verdicts returned on March 14, Mornyang faces a statutory maximum sentence of 21 years in federal prison.
This case was investigated by the FBI, which received assistance from the Federal Air Marshals and the Los Angeles Airport Police Department.
The case against Mornyang is being prosecuted Assistant United States Attorneys MiRi Song and Kevin Reidy of the General Crimes Section.
Alma, Arkansas Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Darrell Dewayne Roberts Jr., age 31, of Alma, Arkansas, entered a guilty plea to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years and not more than life imprisonment, a fine up to $10,000,000.00, or both.
The Superseding Indictment alleges that on or about December 31, 2018, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 50 grams of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the Roland Police Department and the Drug Enforcement Administration.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Edward Snow represented the United States.
18 March 2019
Williamson County Woman Charged with Drug OffenseRead the Press Release
Cari L. Madson of Johnston City, Illinois, has been charged in a one-count indictment with conspiracy to distribute 50 grams or more of methamphetamine, United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. The federal indictment alleges that the offense occurred between February 2018 and January 2019, in Williamson and Jefferson Counties.
Madson, 37, made her initial appearance in federal court on March 11 and pleaded not guilty to the charges. She was ordered held without bond pending trial, which is currently scheduled for May 13, 2019.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The drug offenses carry a maximum penalty of 5 to 40 years imprisonment, four years of supervised release, and a fine of $5 million.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group. The Herrin Police Department, Marion Police Department, and Johnston City Police Department also assisted in the investigation.
Williamson County Man Charged with Drug OffensesRead the Press Release
Jacob R. Diefenbach of Marion has been charged by indictment with two counts of unlawful delivery of methamphetamine, United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. The federal indictment alleges that the offenses occurred on December 12, 2018, and February 4, 2019, in Williamson County.
Earlier this month, Diefenbach, 30, made his initial appearance in federal court and pleaded not guilty to the charges. He is being held without bond pending a May 13, 2019, jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The drug offenses carry a maximum penalty of 20 years imprisonment, three years of supervised release, and a fine of $1 million.
The ongoing investigation is being conducted by the Marion Police Department. The Williamson County State’s Attorney’s Office assisted in the investigation.
Will County Man Sentenced to More Than 4 Years in Federal Prison for Defrauding His Elderly Mother-In-Law out of More Than $175,000Read the Press Release
CHICAGO — A federal judge has sentenced a Will County man to more than four years in prison for stealing his elderly mother-in-law’s identity to misappropriate more than $175,000 from her.
JOHN V. KNAPP, 66, of Romeoville, pleaded guilty last year to one count of wire fraud and one count of aggravated identity theft. U.S. District Judge Sharon Johnson Coleman on Friday sentenced Knapp to four and a half years in prison and ordered him to pay restitution of $177,538.38.
Knapp admitted in a plea agreement that he misappropriated funds from his mother-in-law in 2014 and 2015. At the time, his mother-in-law was in her mid-90s. At sentencing, the mother-in-law submitted a statement to the Court detailing the impact of Knapp’s conduct, which included stealing money that the mother-in-law’s late husband had earned to take care of her.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The government was represented by Assistant U.S. Attorneys Edward G. Kohler and Rebekah Holman.
Evidence in the case revealed that Knapp on approximately 100 occasions misappropriated funds from his mother-in-law’s investment and bank accounts. Knapp assumed her identity during four phone calls to her investment company to fraudulently authorize $129,500 in withdrawals from her investments. During the calls, Knapp fraudulently provided his mother-in-law’s personal identifying information, which at times included her address, date of birth, telephone number, investment account number, and last four digits of her Social Security number. As soon as the funds were deposited in his mother-in-law’s bank account, Knapp fraudulently caused checks to be made payable to him out of the account.
During one of the fraudulent phone calls, Knapp’s mother-in-law was residing in a hospital. At the time of two other calls, she was residing at a rehabilitation center.
Webster City Man Pleads Guilty to Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine pled guilty March 18, 2019, in federal court in Sioux City.
Jeremy Alan Frye, 35, from Webster City, Iowa, was convicted of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.
At the plea hearing, Frye admitted his involvement in a conspiracy that distributed methamphetamine from July 2017 through August 2018 in Webster City, Iowa. Frye also admitted that on four occasions in 2018 he distributed more than 53 grams of pure meth to law enforcement within a public park zone in undercover drug operations. During a search warrant at Frye’s residence (located within 1000 feet of a protected location, namely Nokomis Park and East Twin Park), law enforcement seized over 37 grams of pure meth. Frye further admitted that he intended to distribute this methamphetamine.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Frye remains in custody of the United States Marshal and will remain in custody pending sentencing. On the conspiracy conviction, Frye faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and at least ten years of supervised release following any imprisonment. On the possession conviction, Frye faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least eight years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Department of Narcotics Enforcement, Webster City Police Department, and the Iowa Division of Criminalistics Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-3035.
Follow us on Twitter @USAO_NDIA.
Virginia man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Chance Allen Good, of Stanley, Virginia, was sentenced today to 37 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Good, age 26, pled guilty to one count of “Possession of a Stolen Firearm” in December 2018. Good admitted to having a stolen .22 caliber rifle in Mineral County in March 2018.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police, and the Potomac Highlands Drug & Violent Crimes Task Force investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Chief U.S. District Judge Gina M. Groh presided.
United States Attorney Minkler celebrates International Women’s MonthRead the Press Release
Indianapolis-In honor of #WomensHistoryMonth, United States Attorney Josh J. Minkler honors the district’s first female AUSA: Sarah Evans Barker, Senior Judge, SDIN, who served the district as an AUSA from 1972-1976, as First Assistant U.S. Attorney from 1976-1977, and as United States Attorney from 1981-1984 before being nominated to the vacant seat on the U.S. District Court, SDIN. Judge Barker is a trailblazer extraordinaire and the ripples of her DOJ legacy and presence positively affect the daily work the office engages in even today. USA Minkler would also like to recognize the district’s most recently hired female AUSA, Amanda Kester, who is currently assigned to the district’s Drug and Violent Crime Unit. AUSA Kester began her tenure with DOJ on 10/15/18. Prior to, she served as a Morgan County Deputy Prosecutor where she specialized in technology prosecutions including crimes against children. USA Minkler is exceptionally proud of the district’s 17 female AUSAs, devoted support staff including female leadership, and two supervisory attorneys, Cynthia Ridgeway, the First Assistant U.S. Attorney, and Shelese Woods, Civil Chief.
The United States Attorney also proudly recognizes the district’s Women’s Leadership Initiative (WLI) Steering Committee: AUSAs Cindy Cho, Kelly Rota, Kate Olivier, Gina Shields, FBI Special Agent Victoria Madtson, and Sarah Dame, Clerk for U.S. District Court Judge Sarah Evans Barker. The WLI meets quarterly at the USAO to discuss issues central to professional development and civic responsibility.
Sarah Evans Barker
Amanda Kester
United States Attorney Mike Stuart Announces Launch of U.S. Attorney's Heroin(e) Education Action Team (HEAT)Read the Press Release
CHARLESTON, W.Va. – In partnership with families who have lost loved ones to drug overdose, United States Attorney Mike Stuart is launching a new program called United States Attorney’s Heroin(e) Education Action Team or USA HEAT. More information about USA HEAT can be found in the attached brochure.
Who: United States Attorney Mike Stuart
Stacie Archer, USA HEAT Team Member
Principal Melissa Lovejoy, Elkview Middle School
Kanawha County Schools Representatives
Kanawha County Sheriff’s Department
What: HEAT Presentation
Where: Elkview Middle School
5090 Elk River Road
Elkview, WV 25071
When: Tuesday, March 19 @ 9:30am for press conference; presentation @ 10:00am
Follow us on Twitter: SDWVNews
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Union County Man Charged with Drug OffensesRead the Press Release
Carl A. Stadelbacher of Cobden, Illinois, has been charged by indictment with one count of conspiracy to manufacture methamphetamine and one count of unlawful possession of pseudoephedrine knowing that it would be used to manufacture methamphetamine, United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. The federal indictment alleges that the offenses occurred between 2016 and February 2019, in Union and Jackson Counties.
Stadelbacher, 52, made his initial appearance in federal court on March 13 and pleaded not guilty to the charges. He was ordered held without bond pending a May 20, 2019 jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The drug offenses carry a maximum penalty of 20 years imprisonment, three years of supervised release, and a fine of $1 million.
The ongoing investigation is being conducted by the Union County Sheriff’s Office. The Jackson County Sheriff’s Office and Union County State’s Attorney’s Office assisted in the investigation.
U.S. Attorney’s Office Continues to Recoup Costs Incurred from Illegal KickbacksRead the Press Release
Two more doctors in northeastern Oklahoma have entered into settlement agreements with the U.S. Attorney’s Office for allegedly accepting illegal kickback payments from OK Compounding, LLC, announced U.S. Attorney Trent Shores. These civil settlements resulted from an investigation into numerous health care providers writing prescriptions for pain creams compounded and sold by OK Compounding in return for payments.
“These greedy medical professionals are a major disappointment. Patients expect doctors to uphold strict ethical standards and place patient care above their own financial motives,” said U.S. Attorney Shores. “My office will use every tool at our disposal to remind corrupt physicians that the health of their patients is not for sale and that government health care programs are not free to plunder.”
In one recent settlement, Dr. Mary Johnson, 44, a podiatrist practicing in Claremore, agreed to pay the government more than $76,000 for allegedly accepting illegal kickback payments from OK Compounding in 2013.
In a separate settlement, Dr. Jeff Halsell, 50, a doctor of osteopathic medicine practicing in Tulsa, agreed to pay the government more than $52,000 for allegedly accepting illegal kickback payments from the pharmacy from January to July of 2013.
The settlement agreements resolve allegations that Johnson and Halsell had illegal financial relationships with OK Compounding, concerning pain creams.
Compounding prescriptions is a practice in which a pharmacist or physician combines, mixes or alters ingredients of a drug or multiple drugs to create a medication that is tailored to the specific needs of a patient. These medications are prescribed when standard Food and Drug Administration (FDA) approved drugs are unsuitable for the patient. They are also more expensive and reimbursed at a far higher rate by federal and private insurance companies.
Compounded drugs are not to be mixed or marketed in bulk. OK Compounding provided physicians with pre-printed prescription pads that listed compounding formula choices. Participating physicians would allegedly check a box with their preferred selection and then fax it directly to the associated pharmacies, rather than writing a prescription tailored to the patient who could then take it to a pharmacy of their choice.
Johnson and Halsell, prescribed these pain creams for their patients, and in so doing, facilitated the sale and distribution of pain creams by OK Compounding. As compensation for their services, the pharmacy paid Johnson and Halsell what was characterized by the parties as medical director fees based upon an hourly rate. However, the payments the doctors received from OK Compounding were, in actuality, “kickbacks” and in violation of the False Claims Act, 31 U.S.C. §3729 et seq, due to the fact that some patients were insured by the Medicare and TRICARE federal health care programs.
Medicare is a federal government health insurance generally reserved for people who qualify due to age or disability. TRICARE is the health care program of the United States Department of Defense Military Health System for military service members and retirees. It is illegal to pay or receive “kickbacks” in conjunction with federal healthcare insurance.
Prohibitions against kickbacks are crucial to ensure that financial motives do not undermine the integrity of the medical judgment of physicians and other health care providers. The civil False Claims Act is an important tool used to protect the integrity of taxpayer-funded health care programs against health care providers.
This matter was handled by Assistant U.S. Attorney Marianne Hardcastle with the Affirmative Civil Enforcement unit and is the product of the collaborative investigative efforts of the Defense Criminal Investigative Service, Department of Labor–Office of Inspector General (OIG), IRS–Criminal Investigation, U.S. Postal Service–OIG, FBI, Department of Veterans Affairs–OIG and the Department of Health and Human Services–OIG.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
U.S. Attorney Reaches Settlement with Developer, Builder, and Architect of Mount Kisco Condominium to Increase Accessibility for People with DisabilitiesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that the United States has settled its federal Fair Housing Act (“FHA”) lawsuit against BEDFORD DEVELOPMENT LLC, CARNEGIE CONSTRUCTION CORP., JOBCO INC., ROBERT PASCUCCI, and WARSHAUER MELLUSI WARSHAUER ARCHITECTS, P.C. (collectively, “Defendants”). The settlement requires Defendants to pay up to $195,000 for retrofits at the Sutton Manor condominium in Mount Kisco, New York, in order to make the individual units and the common areas of the building more accessible to individuals with disabilities, and to pay $330,000 to compensate aggrieved persons and to reimburse attorneys’ fees. The resolution of this lawsuit was approved today by U.S. District Judge Kenneth M. Karas.
U.S. Attorney Geoffrey S. Berman said: “For almost 30 years, the Fair Housing Act has required newly built residential buildings to be accessible to people with disabilities, but some housing providers continue to disregard that requirement. The flouting of the accessibility requirements was particularly egregious here, where the condominium was specifically advertised to older New Yorkers. This Office will continue to use all legal tools available to enforce the Fair Housing Act and ensure that persons with disabilities have full access to residential buildings in this district.”
The Fair Housing Act’s accessible design and construction provisions require new multifamily housing complexes constructed after 1991 to have basic features accessible to persons with disabilities. According to the allegations in the complaint, Sutton Manor was designed and constructed by Defendants with numerous inaccessible features, including insufficiently wide door openings, lobby doors requiring excessive force to operate, excessively high thresholds at the entrances to the patios or balconies, insufficiently wide doors leading to patios or balconies in individual units, excessively high thresholds at the entrance to showers, and insufficiently clear floor space in the hallways and kitchens for maneuvering by persons who use wheelchairs.
Among the aggrieved persons who will be compensated through this settlement are Michael and Linda Tracey, Mark and Gloria Koller, and Ina Grober (“Intervenor-Plaintiffs”), who each purchased and moved into units at Sutton Manor in 2007, in part because certain of the Defendants advertised Sutton Manor as being accessible to persons with disabilities. The Intervenor-Plaintiffs initiated this action by filing an administrative complaint with the U.S. Department of Housing and Urban Development (“HUD”) and then, after HUD determined that there was reasonable cause to believe that the Fair Housing Act had been violated, electing to have HUD’s determination resolved in federal court. In these circumstances, the Fair Housing Act authorizes the Department of Justice to commence an action in the United States District Court on behalf of the complainants and assert other claims as warranted.
Other aggrieved persons may be entitled to monetary compensation from the fund created through today’s settlement. Aggrieved persons may include those who:
- Were discouraged from living at Sutton Manor because of the lack of accessible features;
- Have been hurt in any way by the lack of accessible features at Sutton Manor;
- Paid to have an apartment at Sutton Manor made more accessible to persons with disabilities; or
- Otherwise were discriminated against on the basis of disability at Sutton Manor as a result of the inaccessible design and construction of the properties.
Any individual who may be entitled to compensation can file a claim by contacting the Civil Rights Complaint Line at (212) 637-0840, using the Civil Rights Complaint Form available on the United States Attorney’s Office’s website http://www.justice.gov/usao/nys/civilrights.html, emailing us at [email protected], or by sending a written claim to:
U.S. Attorney’s Office, Southern District of New York
86 Chambers Street, 3rd Floor
New York, New York 10007
Attention: Chief, Civil Rights Unit
Since 2010, the Office has filed nearly 30 lawsuits to enforce the FHA to combat racial, gender, and disability discrimination in housing, including in the areas of design and construction, sexual harassment, and fair lending.
Mr. Berman thanked HUD for its efforts in the investigation.
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorney Christine S. Poscablo is in charge of the case.
U.S. Attorney Jason R. Dunn Delivers Remarks at Islamic Center of Boulder in Wake of New Zealand MassacreRead the Press Release
DENVER – U.S. Attorney Jason Dunn and senior staff attended a vigil yesterday for victims of the mass shooting in New Zealand. Please find U.S. Attorney Dunn’s remarks below.
Text of U.S. Attorney Jason Dunn’s remarks
Good Afternoon. My name is Jason Dunn, and I am the United States Attorney for the District of Colorado. In that position, I am the chief law enforcement officer for the United States here in Colorado.
I started this job 6 months ago. I was sworn in on a Friday morning. The next morning, a young man opened fire in a synagogue in Pittsburgh, killing 11. My counterpart in Pittsburgh is now prosecuting that person for 11 murders and other federal crimes.
That night, my first full day on the job, I attended an interfaith vigil here in Denver at the Temple Emanuel synagogue. Not being Jewish nor ever having been to such an event, I didn’t know what to expect.
What I saw was an amazing display of compassion, love, and most of all, community. Many religions were represented - including the Islamic faith - and I had the opportunity to meet several leaders of your community.
As I started my job in earnest that next Monday, I quickly learned how engaged my office was with various religious groups throughout Colorado. We not only regularly meet with various religious groups to discuss how our office can protect the public while ensuring civil rights, but we have taken the affirmative step to develop a training program to help houses of worship better protect themselves from events like those in Pittsburgh, and now New Zealand.
I also quickly learned that there are more than 180 men and women in my office who work for the cause of Justice every day. On behalf of each of them I bring you this important message: we stand with this community.
Our houses of worship are protected places. They are protected because this is where we are most vulnerable. And it is here where we exercise one of our most fundamental rights.
The time, place, and manner of attacks in New Zealand were calculated to inflict the most damage possible. Ripping 50 lives from this earth at a time when they were most vulnerable — savaging the sanctity of prayer.
This calculated attack was designed to instill terror and fear not just in New Zealand, but around the world.
That’s why it’s so important to come together as a community.
Fear diminishes freedom. Our country prides itself on freedoms — freedom of speech, of religion, freedom of the right to assemble. This is part of what makes our country such a wonderful place to live. These rights belong to all of us, and we must not let fear take them away.
I want each of you to know that my office and I will enforce the laws to ensure that everyone here is safe — and feels safe — in their house of worship.
After this week’s attack in New Zealand, the prime minister identified two things the world must do in response. The first: show our support for the community directly impacted by this tragedy. And that’s what we are doing here this afternoon.
Prime Minister Ardern has noted that New Zealand is a land that welcomes diversity. She says there are more than 200 ethnicities in New Zealand. 160 languages spoken. Diversity unites the country and compassion is a shared value.
The Muslim community that was attacked had chosen Christchurch as their home. Many were refugees. And they came to New Zealand because that is where they felt safe to come and practice their faith, and to be part of a community.
What other country does this sound like? America is also a land of tremendous diversity. Instead of 160 languages, more than 350 languages are spoken in American homes.
Our country embraces diversity and understands that diversity, when combined with the rule of law, makes us stronger. Together, they define our national fabric.
This makes it is easy for us to do the second thing Prime Minister Ardern did in response to these attack: to clearly condemn and reject the ideology that motivated the savagery in New Zealand.
Prime Minister Ardern says there is no place for that ideology in New Zealand. And indeed, there is no place for that ideology in the World, in the U.S., or in Colorado.
I close with this — please know we stand with you.
We grieve with you.
And, most importantly, know that our office will enforce the laws that protect this and all other houses of worship.
U.S. Air Force Member Charged with Producing and Receiving Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an eight-count indictment Thursday against Bryce Carter Studebaker, 22, currently stationed at Beal Air Force Base, charging him with four counts of producing and attempting to produce child pornography and four counts of receiving child pornography, U.S. Attorney McGregor W. Scott announced. Studebaker was arrested this morning.
According to court documents, Studebaker produced and received sexually explicit images of a minor on four occasions between December 31, 2017, and March 30, 2018.
This case is the product of an investigation by the U.S. Air Force Office of Special Investigations. Assistant U.S. Attorney André M. Espinosa is prosecuting the case.
If convicted, Studebaker faces a maximum statutory penalty of 30 years in prison for each count of producing and attempting to produce child pornography, a maximum statutory penalty of 20 years in prison for each count of receiving child pornography, and a $250,000 fine on all counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Two New Jersey Men Arraigned in Reverse Mortgage SchemeRead the Press Release
TRENTON, N.J. – A Passaic County, New Jersey, man and a Bergen County, New Jersey, man have been arraigned for their respective roles in a reverse mortgage scheme that took advantage of several elderly homeowners, U.S. Attorney Craig Carpenito announced today.
Rafael Peralta, 46, of Clifton, New Jersey, and Philip Puccio Jr., 40, of Mahwah, New Jersey, were indicted Feb. 8, 2019, by a federal grand jury on one count of conspiracy to commit bank fraud and six counts of bank fraud. They were arraigned March 15, 2019, before U.S. District Judge Anne E. Thompson in Trenton federal court.
According to documents filed in this case and statements made in court:
From November 2007 through December 2010, Peralta and Puccio, home repair contractors, allegedly conspired to fraudulently obtain Home Equity Conversion Mortgage (HECM) – also known as reverse mortgage – proceeds by submitting inflated and fraudulent documentation to various victim banks to influence their decision to approve and fund HECMs. Peralta and Puccio recruited a conspirator to prepare inflated real estate appraisals that falsely increased the value of the properties securing the HECMs, thereby influencing each lender’s decision to provide loans in amounts greater than what would otherwise be available.
Peralta and Puccio also caused the submission of false and fraudulent loan documents that actively concealed the disbursement of loan proceeds to Peralta, Puccio, and entities they owned and controlled. The diverted loan proceeds were deposited into bank accounts controlled by Peralta and Puccio and used for their personal benefit and to further the conspiracy.
The conspiracy to commit bank fraud and bank fraud charges carry a maximum potential penalty of 30 years in prison, a fine of $1 million, or twice the gross pecuniary gain by the defendants or twice the gross pecuniary loss to others, whichever is greater.
U.S. Attorney Carpenito credited special agents of the Federal Housing Finance Agency, Office of the Inspector General, under the direction of Acting Special Agent in Charge Robert Manchak; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie; and special agents of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading the charges.
The government is represented by Special Assistant U.S. Attorneys Kevin Di Gregory and Charlie Divine of the U.S. Attorney’s Office Criminal Division in Newark and the Federal Housing Finance Agency, Office of the Inspector General.
Defense counsel: Peralta: TBD
Puccio: Kevin Roe Esq., Hackensack, New Jersey