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14 March 2019
Participant in Michigan to Western PA Heroin Trafficking Operation Sentenced to 18 Years in Federal PrisonRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 18 years (216 months) in prison, followed by eight years of supervised release, on his conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Norman Blackwell, 43.
According to information presented to the court, from November 2015 to January 2016, Blackwell conspired with others to distribute and to possess with intent to distribute more than 100 grams of heroin.
The indictments from August 2016 were the result of an investigation, which utilized Title III wiretap intercepts and other investigative techniques, established the existence of a several overlapping and interrelated drug distribution networks with tentacles in the Western District of Pennsylvania, Northern District of Ohio, Eastern District of Michigan and the District of the Virgin Islands. The FBI Greater Pittsburgh Safe Streets Task Force’s focus began in early 2015 on a drug trafficking organization operating on Pittsburgh’s North Side and thereafter they were able to track drug suppliers beyond the borders of own district and across the Caribbean Sea.
This case grew out of a federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) investigation that resulted in several federal indictments in August of 2016. The OCDETF task force is headed by the Federal Bureau of Investigation and is comprised of members drawn from the FBI Greater Pittsburgh Safe Street Task Force including the Pittsburg Bureau of Police, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, and the Allegheny County Police Department. Substantial assistance was provided by FBI San Juan, Puerto Rico (St. Thomas Resident Agency, U.S. Virgin Islands) and the United States Postal Inspection Service. Numerous other FBI field offices, including Detroit, Cleveland, New York, and Atlanta, in addition to the Bureau of Alcohol, Tobacco, and Firearms, also assisted with this investigation. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Assistant United States Attorneys Amy L. Johnston is prosecuting this case on behalf of the government.
The Allegheny County District Attorney Narcotics Enforcement Team – Narcotics, Firearms, & Violent Crime Task Force, as well as the Pennsylvania Office of the Attorney General – Bureau of Criminal Investigations, Organized Crime Section – Western Regional Office, contributed extensively in the investigation.
Panama City Marriage Fraud Conspirators Plead Guilty and SentencedRead the Press Release
PANAMA CITY, FLORIDA – Ravi Babu Kolla, 47, an Indian foreign national residing in Panama City, pleaded guilty yesterday to conspiracy to commit marriage and visa fraud and conspiracy to commit money laundering. On Tuesday, his co-defendant Krystal Cloud, 40, of Altha, Florida, was sentenced to 24 months in prison for marriage and visa fraud conspiracy after pleading guilty on December 28, 2018. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the guilty plea and sentence.
Between February 2017 and August 2018, Kolla operated an immigration marriage fraud business in Bay County that recruited U.S. citizens to marry Indian foreign nationals to gain immigration benefits. The majority of the Indian foreign nationals overstayed their Visas or Student Exchange Visitor Program requirements and were unlawfully residing in the United States. The investigation identified over 80 fraudulent marriages that were performed in Alabama as part of Kolla’s scheme.
Cloud is a U.S. citizen who participated with Kolla in the marriage fraud business. After entering a fraudulent marriage in October 2017, she began recruiting U.S. citizens to marry Indian foreign nationals. Cloud directly recruited or participated in the recruitment of 10 or more U.S. citizens from the Panama City area and rural Calhoun and Jackson Counties. She also helped gather personal information so Kolla could create fraudulent immigration forms in order for the Indian foreign nationals to remain in the United States.
Kolla is being detained. The sentencing hearing is scheduled for May 22, 2019, at 11:00 a.m. at the U.S. Courthouse in Tallahassee.
Kolla faces a maximum of 5 years in prison for conspiracy to commit marriage and visa fraud and a maximum of 20 years in prison for money laundering conspiracy.
The case was investigated by United States Immigration and Customs Enforcement Homeland Security Investigations, U.S. Citizenship and Immigration Services, the Bay County Sheriff’s Office, the Panama City Police Department, the Blountstown Police Department, and the Coffee County Sheriff’s Office (Alabama). Assistant United States Attorney Corey J. Smith is prosecuting the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Pair from the Mahoning Valley indicted for sexually exploiting a minorRead the Press Release
A pair from the Mahoning Valley were indicted for sexually exploiting a minor.
Candis Sue Marie Wynn, 32, of Girard, and Daniel Robert Parker, 32, of Youngstown, were charged with sexual exploitation of a minor, receipt and distribution of child pornography and possessing child pornography.
Wynn and Parker coerced a minor victim to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. This took place between November 30, 2018 through January 8, 2019, according to the indictment.
The indictment also charges that between those dates, Wynn and Parker received and distributed visual depictions of real minors engaged in sexually explicit. Wynn possessed in January 2018 a Moto Z cellular phone and another a cellular phone that contained child pornography, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than maximum.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by TFO Brenda Golec, Federal Bureau of Investigation Task Force, Cleveland Office.
An indictment is only a charge. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Owners of Bay Area Sushi Boat Restaurants Plead Guilty to Tax CrimesRead the Press Release
OAKLAND - Man Young Kim and Kyong Ja Kim, aka Angie Kim, pleaded guilty in federal court in Oakland today to conspiracy to defraud the United States, announced United States Attorney David L. Anderson and Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Kareem Carter. The guilty plea was accepted by the Honorable Yvonne Gonzalez Rogers, U.S. District Judge.
According to the plea agreement, Man Kim, 64, and Angie Kim, 58, both of Dublin, Calif., admitted they failed to report on federal income tax returns the cash received from sales at their restaurants, Sushi Boat Oakridge, Sushi Boat Valley Fair, and Sushi Boat Westgate. The Kims admitted they deposited funds from the restaurants’ credit card sales into a corporate bank account but did not deposit most of the cash. Instead, the Kims used the cash to pay employee wages and to purchase other personal non-business-related items, including real property. The Kims acknowledged they maintained detailed spiral notebooks that recorded daily credit card and cash sales. Further, the Kims admitted they used a certified public accountant to prepare their tax returns, but provided the accountant with only the corporate bank account records, not the spiral notebooks that showed cash sales. Man Kim also admitted he did not pay employment taxes on the cash wages he paid to the restaurant employees. The total loss to the government resulting from the Kims’ income tax and employment tax scheme is $1,152,622.66.
A federal grand jury indicted the Kims on June 29, 2017. Both defendants were charged with one count of conspiracy to defraud the United States, in violation of 18 U.S.C. § 371. Man Kim was also charged with three counts of filing a false tax return, in violation of 26 U.S.C. § 7206(1), and nine counts of willful failure to account for and pay employment taxes, in violation of 26 U.S.C. § 7202. Angie Kim was also charged with three counts of aiding and assisting in the preparation of false tax returns, in violation of 26 U.S.C. § 7206(2). The Kims both pleaded guilty to the conspiracy count. If they comply with the plea agreement, the additional charges will be dismissed at sentencing.
The Kims currently are released on bond, pending sentencing. Judge Gonzalez Rogers scheduled their sentencing hearing for July 18, 2019. The maximum statutory penalty for conspiracy in violation of 18 U.S.C. § 371 is 5 years in prison and a fine of $250,000, plus restitution, if appropriate. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Cynthia Stier is prosecuting the case with the assistance of Kathy Tat. The prosecution is the result of an investigation by the IRS-CI.
Oklahoma Man Sentenced for Trafficking More than 20 Pounds of MethRead the Press Release
WICHITA, KAN. – An Oklahoma man was sentenced today to 108 months in federal prison for trafficking more than 20 pounds of methamphetamine, U.S. Attorney Stephen McAllister said.
Guillermo D. Andrade, 23, Oklahoma City, Okla., pleaded guilty to one count of possession with intent to distribute methamphetamine. In his plea, he admitted he drove from California to Kansas accompanying another car that was carrying methamphetamine. When the Kansas Highway Patrol stopped the other car and searched it, troopers found more than 20 pounds of methamphetamine. Andrade admitted he arranged to transport the methamphetamine from California to Oklahoma, where he planned to sell it.
McAllister commended the Kansas Highway Patrol and Assistant U.S. Attorney Mona Furst for their work on the case.
New Orleans Man Pleads Guilty to Bank RobberyRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that yesterday TROYNELL COOKS, age 39, of New Orleans, pled guilty to bank robbery, in violation of Title 18, United States Code, Section 2113(a).
According to court documents, on October 29, 2018, COOKS entered the Hancock Bank located at 2421 St. Claude Avenue, New Orleans, Louisiana, and robbed it of money. After a brief chase, law enforcement officials successfully apprehended COOKS not far from the bank’s location and recovered the stolen money.
The Court set sentencing in this matter for June 19, 2019. COOKS faces a maximum term of imprisonment of twenty (20) years, a maximum $250,000 fine, up to three (3) years supervised release following any term of imprisonment, and a $100 special assessment fee.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Duane A. Evans is prosecuting the case.
Montana Man Enters Pleas of Guilty to Multiple Bank Robberies in the Midwest, Northwest and WestRead the Press Release
United States Attorney Joe Kelly announced that Richard Gathercole, of Montana, entered pleas of guilty in federal court in Lincoln on March 11, 2019, to the charges of bank robbery, brandishing a firearm during a bank robbery, and carjacking. Magistrate Judge Cheryl Zwart set sentencing before Chief Judge John M. Gerrard on June 5, 2019, in Lincoln.
On June 19, 2017, Gathercole fired shots at and ultimately eluded a Kansas Highway Patrolman. Gathercole crashed his vehicle and carjacked a citizen who stopped to offer assistance. Gathercole was arrested in Dawson County, Nebraska in the stolen vehicle. A search of the car Gathercole abandoned in Kansas located an AK-47 rifle and a homemade bomb. GPS from a Garmin in the vehicle placed the device at a bank robbery in Nebraska City in 2014 and another in Iowa in 2015. The AK-47 was observed in the Nebraska robbery as well as bank robberies in North Bend, Washington; Rexburg, Idaho; and Mason City, Iowa along with two other bank robberies and one attempted robbery in California. The AK-47 was traced to a bank robbery in Chino, California in February 2012. During this robbery, a police officer was shot in the femur.
This case was investigated by the Federal Bureau of Investigation.
Minnesota couple sentenced to supervised release for possessing nearly 1,000 pounds of marijuanaRead the Press Release
BILLINGS—A federal judge today sentenced a Minnesota couple to one day of time served in custody and to five years of supervised release after they were arrested in Miles City with nearly 1,000 pounds of marijuana in their recreational vehicle, U.S. Attorney Kurt Alme said.
Steven Thomas Robinson, 59, and his wife, Vicki Lynn Robinson, 60, of Milaca, Minn., each pleaded guilty in November to possession with intent to distribute marijuana.
U.S. District Judge Susan Watters presided.
Steven Robinson faced a guideline range of 37 months to 46 months in prison, while Vicki Robinson faced a guideline range of 30 months to 37 months in prison.
In sentencing the couple, Judge Watters said Steven Robinson had serious health problems and that the couple cooperated with law enforcement.
On Aug. 30, 2017, the Montana Highway Patrol’s Eastern Montana Interdiction Task Force received information from a Minnesota drug task force that an RV was transporting a large quantity of marijuana from California to Minnesota. The Montana Highway Patrol located the RV in a Walmart parking lot in Miles City and began surveilling the vehicle. The RV left the parking lot and stopped at the Gold Dust Casino parking lot. Officers saw two occupants of the RV leave the casino and head to the RV. The officers approached and began talking to the couple, identified as the Robinsons.
When the officers asked for license and registration documents, Vicki Robinson said the registration was in the RV. When she opened the door, officers smelled a strong order of raw marijuana. A police K-9 then alerted to the vehicle.
Steven Robinson agreed to speak with officers and admitted there was about 800 pounds of marijuana in the RV and that he was transporting it. He told officers he had delivered before and was paid $20,000. He also consented to a search of the RV and his cell phone. Officers found about 960 pounds of marijuana.
Assistant U.S. Attorney Tom Godfrey prosecuted the case, which was investigated by the Drug Enforcement Administration.
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Mexican National Pleads Guilty to Transportation of Undocumented IllegalsRead the Press Release
St. Louis, MO – Defendant Rene Flores-Calderon, 35 of Mexico, pleaded guilty to eight counts of transportation of undocumented aliens who had come to, entered and remained in the United States in violation of law and to his illegal reentry into the United States after being previously deported. He appeared in federal court before U.S. District Judge Henry E. Autrey who accepted his guilty plea and set sentencing for May 15, 2019.
According to court documents, on August 2, 2018, a Missouri State Highway Patrolman stopped a maroon Chevrolet Suburban eastbound on Interstate 44, just east of the Franklin County line, in St. Louis County, Missouri. Flores-Calderon was inside the vehicle. The suburban also contained 10 undocumented adult aliens from Mexico, Guatemala, Honduras, and El Salvador and three undocumented unaccompanied minor children. During the stop, Flores-Calderon fled the scene on foot but was apprehended the next day.
Flores-Calderon admitted in court at the time of his guilty pleas that he knew or recklessly disregarded the fact that the passengers were undocumented aliens in the United States in violation of the law and that he transported the passengers within the United States with the intent to further the alien’s unlawful presence.
Interviews were conducted of the passengers in the vehicle. In summary they stated that they had crossed at various points into the United States illegally. Flores-Calderon picked them up in Arizona and drove eastbound. Several of the passengers indicated that they or members of their family had paid smugglers to get them into the country and to their destination. Others indicated they paid or were going to pay Flores-Calderon to transport them to various cities in the United States.
Flores-Calderon had previously been deported from the United States following convictions for illegal entry and reentry into the United States at least six times.
Flores-Calderon faces up to 10 years’ imprisonment, a fine of not more than $250,000, or both per count. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Department of Homeland Security – Immigration and Customs Enforcement with assistance from the Missouri Highway Patrol, the St. Louis County Police Department, the Eureka Police Department and the Pacific Police Department.
Medical Director of Substance Abuse Treatment Facility Sentenced to Prison for Unlawfully Distributing Opioids, Barbiturates, and BenzodiazepinesRead the Press Release
The Medical Director of a substance abuse treatment center in Wellington, Florida, was sentenced to prison today after having previously pled guilty today to unlawfully distributing controlled substances (opioids, barbiturates, and benzodiazepines).
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Jimmy Patronis, Florida Chief Financial Officer; Michael J. Waters, Special Agent in Charge, Amtrak Office of Inspector General (Amtrak-OIG); Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA); and Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), made the announcement.
Kenneth Rivera-Kolb, M.D., 65, of Largo, previously pled guilty to one count of conspiracy to unlawfully dispense and distribute controlled substances (Case No. 18cr80121). Senior U.S. District Court Judge James I. Cohn sentenced Dr. Rivera-Kolb to 30 months in prison, to be followed by 2 years of supervised release.
According to court documents, in 2013, Rivera-Kolb was hired to serve as the Medical Director of Angel’s House LLC (“Angel’s Recovery”), a substance abuse treatment facility located in Wellington, Florida. Angel’s Recovery was owned and operated by Tovah Lynn Jasperson and her father, Alan Martin Bostom (Case No. 17cr80194). In addition to the treatment facility, Angel’s Recovery also operated sober homes that were purportedly in the business of providing safe and drug-free residences for individuals suffering from drug and alcohol addiction.
As the medical director, Dr. Rivera-Kolb was purportedly responsible for evaluating patients and prescribing medically necessary treatment and testing. In February 2015, Rivera-Kolb had his medical license suspended by the State of Florida for a period of four years. Despite the absence of a medical license, the defendant continued to serve as the medical director of Angel’s Recovery, and knowingly prescribed controlled substances at the facility. Jasperson and Bostom were aware of Rivera-Kolb’s license suspension, having hired chauffeurs to transport him to hearings before the Board of Medicine of the State of Florida, but continued to employ him as a treating physician and allowed him to write prescriptions for patients. The defendant continued to serve in this capacity until at least September 2015.
Jasperson previously pled guilty to conspiracy to commit health care fraud and was sentenced to 78 months in prison. Bostom previously pled guilty to knowingly and willfully falsifying, concealing, and covering up by a trick, scheme, and device a material fact in a matter involving health care benefit programs and was sentenced to 30 months in prison.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI, IRS-CI, the Florida Division of Investigative and Forensic Services, Amtrak-OIG, DOL-EBSA, and NICB. This matter was prosecuted by Assistant United States Attorneys A. Marie Villafaña and Alexandra Chase.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov/ or at http://pacer.flsd.uscourts.gov/
Lynn Man Indicted for Money Laundering and Visa FraudRead the Press Release
BOSTON – A Lynn man was arrested and charged in federal court in Boston on Tuesday, March 12, 2019, in connection with money laundering and visa fraud.
Fortune Aikorogie, a/k/a Imuetinyan Aikorogie, a/k/a Fortune Aikoriogie, a/k/a Imuetinyan Aikoriogie, 32, was charged with one count of making a false statement to a bank, five counts of money laundering, and one count of visa and passport fraud. He appeared in federal court in Boston on Tuesday, March 12, 2019, and was detained pending a detention hearing.
According to the indictment, Aikorogie falsely represented himself to be someone else when he opened a checking account at TD Bank in Dracut on Sept. 28, 2016. Between Oct. 5 and Dec. 15, 2016, Aikorogie committed money laundering when two fraud victims in Texas wired a total of $75,500 into the TD Bank account. On Dec. 21, 2016, Aikorogie possessed a Zimbabwean passport and a U.S. visa, both in the same name he used to open the bank account, which he knew to be counterfeit.
The charging statute for making a false statement to a bank provides for a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of $250,000. The charging statute for money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $500,000. The charging statute for visa/passport fraud provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; William B. Gannon, Special Agent in Charge of the U.S. State Department’s Diplomatic Security Service, Boston Field Office; and Lawrence Police Chief Roy P. Vasque made the announcement. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lynn Man Charged with Making False Statement in Naturalization ApplicationRead the Press Release
BOSTON – A Lynn man was charged in federal court in Boston with making a false statement on his naturalization application.
Willian Troncoso de los Santos, 29, was charged with one count of making a false statement relating to naturalization. He was arrested on March 11, 2019, and appeared in federal court in Boston the following day. He will remain in custody pending a detention hearing.
According to the charging document, on Nov. 2, 2017, Troncoso de los Santos falsely stated in an application for naturalization that he had never committed a crime or offense for which he was not arrested; that he had never been arrested, cited or detained by a law enforcement officer for any reason; and that he had never been charged with committing a crime or offense. At the time of the naturalization interview, however, Troncoso de los Santos was charged in Lynn District Court and charged in Chelsea District Court with criminal offenses. Troncoso de los Santos was naturalized in December 2017.
The charging statute for making a false statement relating to naturalization provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; William B. Gannon, Special Agent in Charge of the U.S. State Department’s Diplomatic Security Service, Boston Field Office; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and Denis C. Riordan, District Director, U.S. Citizenship and Immigration Services, District 1, made the announcement. Assistant U.S. Attorney Lindsey Weinstein of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lowell Man Charged with Drug and Firearm OffensesRead the Press Release
BOSTON - A Lowell man was charged today in federal court in Worcester with drug and firearm offenses.
Pablo L. Rivera, 53, was indicted on one count of being a felon in possession of a firearm, one count of possession with intent to distribute heroin, and one count of possession of a firearm in furtherance of a drug trafficking crime. Rivera was charged by complaint in February 2019 and is currently in federal custody.
According to court documents, Rivera was arrested on state charges on Feb. 8, 2019, after a motor vehicle stop in which law enforcement recovered a loaded P-38 Walther 9mm firearm, six rounds of ammunition, drug paraphernalia, and a plastic baggie containing approximately 10 grams of heroin from the vehicle Rivera was driving. Rivera is prohibited from possessing a firearm due to prior convictions punishable by more than one year in prison, including a prior conviction for being a felon in possession of a firearm.
The felon in possession charge provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of $250,000. The possession with intent to distribute charge provides for a sentence of no greater than 20 years in prison, a minimum of three years of supervised release, and a fine of $1 million. The possession of a firearm in furtherance of a drug-trafficking crime charge provides for a mandatory five year sentence to be served consecutive to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Lucy Sun of Lelling’s Worcester Branch Office is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Louisiana Woman Sentenced to Federal Prison in Connection with Disaster Fraud and Identity Theft SchemeRead the Press Release
U.S. Attorney Brandon J. Fremin, who also serves as the Executive Director of the National Center for Disaster Fraud, announced today that U.S. Chief Judge Shelly D. Dick sentenced RENATA FOREMAN, age 39, of Independence, Louisiana, to serve 111 months in federal prison following her convictions on multiple wire fraud and aggravated identity theft counts related to the 2016 flooding in Baton Rouge. The Court further sentenced FOREMAN to 5 years of supervised release following her term of imprisonment.
Following the 2016 flooding, which affected 20 parishes in south Louisiana, FEMA funds were available to people who became unemployed because of the flood. The funds were administered by the Louisiana Workforce Commission in the form of Disaster Unemployment Assistance (“DUA”). In total, FOREMAN submitted approximately 55 fraudulent applications using stolen identities.
At trial, the jury heard testimony and saw evidence that FOREMAN kept logs and notebooks containing personally identifiable information of numerous people which she used in her scheme. The evidence also showed that FOREMAN submitted fraudulent claims from multiple locations in New Orleans and the surrounding area. During the commission of the crime, FOREMAN was residing in a federal halfway house stemming from her 2013 convictions for mail fraud, theft of government funds, and identity theft.
U.S. Attorney Fremin said, “This conviction and sentence serve notice that our office and the National Center for Disaster Fraud take seriously crimes involving disaster relief fraud. Those, like this defendant, whose criminal behavior interferes with tax dollars of hard-working citizens will always be a top priority of this office. I want to thank our prosecutors, the U.S. Department of Labor, Office of Inspector General, the FBI, and the Louisiana Workforce Commission, whose joint efforts brought this defendant to justice.”
Special Agent in Charge Eric J. Rommal, FBI New Orleans stated, "The Federal Bureau of Investigation, with our partners at the Department of Labor Office of Inspector General, remains dedicated to combating fraud in Louisiana. Foreman attempted to exploit the 2016 flood for personal gain utilizing stolen identities. It is our hope that this case serves as a warning that the FBI will vigorously investigate those attempting to defraud others in the wake of disaster."
Members of the public are reminded to apply a critical eye and do their due diligence before trusting anyone purporting to be working on behalf of disaster victims. Members of the public who suspect fraud involving disaster relief efforts, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by live operators 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the National Center for Disaster Fraud at www.justice.gov/disaster-fraud and watch a public service announcement here. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
This matter is being investigated by the U.S. Department of Labor Office of Inspector General and the FBI with substantial assistance provided by the Louisiana Workforce Commission. The case is being prosecuted by Assistant U.S. Attorneys Peter Smyczek and Fred Menner of the Middle District of Louisiana.
Lincoln Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Tara Rae Ellington, 44, of Lincoln, was sentenced today to 21 years and 10 months (262 months) in federal prison for possession with intent to distribute 50 grams or more of actual (pure) methamphetamine. Ellington admitted, as part of her plea agreement, to having previously been convicted of a felony drug-trafficking offense. Following the prison term, Ellington will serve 10 years on supervised release.
On June 23, 2017, Ellington was a passenger in a car which was stopped for a traffic violation. A Lincoln Police Department K-9 indicated the odor of narcotics coming from the car. Ellington was found in possession of three baggies of methamphetamine totaling more than 118 grams. The largest bag was found to contain at least 97 grams of actual (pure) methamphetamine. Officers also found digital scales and numerous small plastic bags.
In 2002, Ellington was sentenced to 10 years in federal prison for conspiracy to distribute methamphetamine. That sentence was later reduced to four and one-half years.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lawrence Man Arrested for Fentanyl PossessionRead the Press Release
BOSTON – A Lawrence man was arrested on March 12, 2019, and charged in federal court in Boston with possession with intent to distribute 400 grams or more of fentanyl.
Yoan Paniagua, 24, was charged with possession with intent to distribute 400 grams or more of fentanyl. He appeared in federal court in Boston on March 12, 2019, and was ordered detained pending a detention and probable cause hearing set for March 19, 2019.
On March 12, 2019, law enforcement stopped Paniagua, who was driving on Route 495 in Andover, and seized approximately 500 grams of fentanyl from his vehicle.
The charge of possession with intent to distribute 400 grams or more of fentanyl carries a minimum mandatory sentence of 10 years and up to life in prison, a minimum of five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; and Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Law Enforcement Officers Join Brewer High School Students for a Day of LearningRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced today that on March 21, 2019, the U.S. Attorney’s Office for the District of Maine the Brewer Police Department, the FBI, and the Bureau of Alcohol, Tobacco, Firearms and Explosives will present the TRUST (Teach mutual Respect and Understanding through SimulaTion) Program to about 40 Brewer High School students at Brewer High School, 79 Parkway South, Brewer.
“The TRUST Program arose out of the belief that young people and law enforcement officers can benefit from spending time together, discussing challenges and perspectives on law enforcement, and better understanding each other,” said U.S. Attorney Frank. “It is modeled on similar programs run by U.S. Attorneys’ Offices that have been successful in Alabama (Bridging the Gap) and Florida (Building Lasting Relationships).”
The half-day Program will start at 9:15 a.m. and conclude at approximately 1:00 p.m. It will include: (1) presentations about investigating, prosecuting, and sentencing in criminal cases; (2) student role-playing exercises involving a call for service for a domestic disturbance complaint and a traffic stop; and (3) use of force simulations.
OPEN PRESS (except for the use of force simulations; simulator equipment will be made available to the press at the conclusion of the simulations). Students with media permissions will be identified.
NOTE: All media must RSVP to [email protected], arrive by 9:00 a.m. and possess a government-issued photo I.D. (such as a driver’s license) as well as valid media credentials.
The U.S. Attorney's Office for the District of Maine is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. For more information about the U.S. Attorney’s Office for the District of Maine, visit https://www.justice.gov/usao-me
Latin King Gang Member Pleads Guilty to the 2005 Murder of C.W. Post Student-Basketball StarRead the Press Release
Earlier today, in federal court in Central Islip, Jamie Rivera, a member of the Almighty Latin King and Queen Nation street gang, pleaded guilty to the 2005 murder of C.W. Post student and basketball star, Tafare Berryman. The guilty plea was entered before United States Magistrate Judge Anne Y. Shields.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the guilty plea.
“Nearly fourteen years ago, an innocent young man lost his life to senseless gang violence. Like his family, we do not forget,” stated United States Attorney Donoghue. “This case demonstrates our relentless pursuit of justice for the victims of gang violence and our determination to hold gang members accountable.” Mr. Donoghue expressed his grateful appreciation to the FBI, DEA and NCPD for their outstanding work on the case.
According to court filings and the facts presented at the plea proceeding, on April 2, 2005, Rivera and other Latin King gang members were present at La Mansion bar and nightclub, located on Long Beach Road in North Long Beach. Also present were several C.W. Post students, including Tafare Berryman and some of his friends. At least one altercation occurred in the club between gang members and a Post student, and later continued outside in the parking lot.
Berryman and a friend left the club and while walking to their car, the friend was hit in the head with a bottle, causing a laceration. The two entered a car and drove away. Shortly thereafter, Berryman’s friend pulled the car to the side of the road to tend to the bleeding cut on his head. Rivera then drove up alongside and fatally shot Berryman once, believing that Berryman and his friend had been involved in the prior altercation in the parking lot.
When sentenced, Rivera faces a maximum term of life.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Lara Treinis Gatz and Mark E. Misorek are in charge of the prosecution.
The Defendant:
Jaime Rivera
Age: 32
Freeport, New YorkE.D.N.Y. Docket No. 17-50 (SJF) (SIL)
Klamath County Man Found Guilty of Stealing Missing Mother's Social Security BenefitsRead the Press Release
MEDFORD, Ore.—On Wednesday, March 13, 2019, a federal jury found Theodore Martin Kirk, 64, of Klamath County, Oregon, guilty of stealing more than $30,000 in Social Security benefits dispersed in the name of his elderly mother, Nadine Kirk. Ms. Kirk has been missing since March 2010 and is presumed to be deceased.
"This case began with a single tip from an observant community member and led to the discovery of a multi-year scheme to exploit the Social Security program—a critical tax payer-funded program supporting the nation’s elderly. Tips play an important role in law enforcement and help to reveal crimes that might otherwise go undiscovered," said Billy J. Williams, U.S. Attorney for the District of Oregon.
According to court documents and information shared during trial, in July 2015, a concerned community member contacted the Klamath County Sheriff’s Office regarding the whereabouts of Ms. Kirk as she had not been seen for multiple years. At the time of this call, Ms. Kirk would have been 98 years old. Shortly thereafter, a sheriff deputy visited the residence shared by Ms. Kirk and her son, Theodore, in Bonanza, Oregon. Mr. Kirk claimed his mother had left with friends to travel to California two months prior, but would not permit the deputy to enter his property to confirm his mother was not there.
In an August 2015 interview with a detective, Mr. Kirk again told law enforcement he believed his mother was in California with friends. He added that it had been "quite some time" since his mother had seen a doctor despite having suffered from multiple strokes. Mr. Kirk claimed to be suspicious of his mother’s medications and reported previously removing her from them. Further, he acknowledged that he shared a joint checking account with his mother, into which her monthly Social Security payments were deposited.
Later in August, the Social Security Administration suspended payments to the Kirk’s joint checking account based on Ms. Kirk’s unknown whereabouts. A Social Security investigator reviewed Ms. Kirk’s bank records and found that the last transaction bearing her signature was dated January 2010. From January 2010 until August 2015, over $1,000 in benefits were deposited monthly into the joint checking account and nearly every month, Mr. Kirk would withdraw the entire amount in cash. All of the withdrawals from the account occurred in Oregon, not in California were Ms. Kirk was purported to be.
In August 2017, investigators conducted a search of the Kirk property and recovered a detailed calendar kept by Mr. Kirk. Prior to 2010, the calendar included activities for both Mr. Kirk and his mother. The calendar revealed a series of strokes experienced by Ms. Kirk beginning in 2004 and continuing into the beginning of 2010, where the calendar showed she experienced two strokes in three days. Following the multiple strokes, there were no additional calendar entries for Ms. Kirk’s activities.
Mr. Kirk faces a maximum sentence of ten years in prison. He will be sentenced on Thursday, June 27, 2019 before U.S. District Court Judge Michael J. McShane.
This case was investigated by the Social Security Administration, Office of Inspector General with the assistance of the Klamath County Sheriff’s Office and prosecuted by Adam E. Delph and Gavin W. Bruce, Assistant U.S. Attorneys for the District of Oregon.
Kansas Sex Offender Convicted of Distributing Child PornographyRead the Press Release
BOSTON – A previously convicted sex offender was convicted Tuesday, March 12, 2019, by a federal jury in Boston following a five-day trial.
Christopher Saemisch, 61, was convicted of distributing child pornography to a currently incarcerated federal inmate. U.S. District Court Judge George A. O’Toole Jr. scheduled sentencing for July 9, 2019.
In 1997, Saemisch was convicted in federal court for conspiring to sexually exploit children, aiding and abetting the sexual exploitation of children, conspiring to distribute and receive child pornography, and distributing and receiving child pornography. He was also convicted by a Kansas court in 1999 for aggravated indecent liberties with a child under 14.
In April 2016, agents received information from a federal inmate that Saemisch, who at the time was living in Kansas City, Kansas, admitted to looking at and storing child pornography and wanting to travel to Europe to have sex with children. Saemisch boasted to the inmate about his access to children and his new job babysitting four children.
During the inmate’s communications with Saemisch, they used special coded language to discuss the collection and distribution of child pornography. The inmate confirmed that he and Saemisch used the code word “antiques,” when referring to child pornography and the code word “puppies,” to refer to children.
On May 3, 2016, agents, pretending to be the inmate, began communicating with Saemisch. During the monitored conversations on various messaging apps and web platforms, Saemisch directed the undercover agents to set-up accounts to receive and exchange child pornography. He also sent them child pornography that he had stored on various file storage sites. Saemisch was arrested on May 6, 2016, while attending an event at a nudist campsite.
Due to Saemsich’s prior child exploitation convictions, he faces a mandatory minimum sentence of 15 years and up to 40 years in prison, a minimum of five years and up to a lifetime of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and J. Ray Ormond, Northeast Regional Director of the Federal Bureau of Prisons, made the announcement. Assistance was also provided by the United States Attorney’s Office in the District of Kansas, as well as the Johnson County and Leavenworth County Sheriffs’ Departments in Kansas. The case was prosecuted by Assistant U.S. Attorneys Jordi de Llano, James Herbert and Anne Paruti of Lelling’s Criminal Division.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s CEOS, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Kanawha County Felon Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A Kanawha County felon pled guilty to a federal gun crime, announced United States Attorney Mike Stuart. Mason Laviro Scragg, 24, of Chesapeake, West Virginia, entered his guilty plea to being a felon in possession of a firearm. Stuart commended the investigation conducted by the Kanawha County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“Convicted felon. Stolen gun. Meth,” said United States Attorney Mike Stuart. “It’s offenders like Scragg that are responsible for much of the crime in our communities.”
As established by public court filings and hearings, on August 16, 2018, a man reported to Kanawha County Deputies that his house in Rand, West Virginia, was burglarized. The burglars stole six firearms, three digital cameras, vehicle titles, $1,000 in savings bonds, and various other personal items.
Later that day, a Kanawha County Deputy found some of the stolen items in a backpack outside of an empty, abandoned house on Church Drive. The Deputy spotted another dilapidated, abandoned house nearby, with the doors open. After entering the house and announcing his presence, the Deputy found Scragg lying on a mattress. One of the stolen firearms, a 12 gauge shotgun, was protruding from under the mattress directly beneath Scragg. Deputies also recovered close to five grams of methamphetamine in Scragg’s room.
At the time that he possessed the shotgun, Scragg was a convicted felon whose right to possess a firearm had not been restored. Scragg is facing up to 10 years in prison when he is sentenced on June 19, 2019. United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Drew O. Inman is handling the prosecution.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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KC Man Sentenced to 15 Years for Drug Trafficking That Led to Kidnapping, TortureRead the Press Release
KANSAS CITY, Mo. – Three men have been sentenced in federal court this week for their roles in a drug-trafficking conspiracy that led to the kidnapping and torture of an Independence, Mo., man.
Randal G. Holmes, also known as “Peckerwood” or “Wood,” 54, of Kansas City, Mo., and Michael C. Borrusch, also known as “Birdie,” 43, of Lakewood, Colo., were sentenced today in separate appearances before U.S. District Judge Greg Kays. Holmes was sentenced to 15 years in federal prison without parole. Borrusch was sentenced to 3 years and 10 months in federal prison without parole.
Jeremy R. Bond, 40, of Independence, was sentenced on Wednesday, March 13, 2019, to two years and six months in federal prison without parole.
On July 10, 2018, Holmes pleaded guilty to one count of conspiracy to commit kidnapping, one count of kidnapping, one count of conspiracy to distribute 50 kilograms or more of marijuana and one count of brandishing firearms in furtherance of a drug-trafficking crime. Borrusch and Bond pleaded guilty to their roles in the drug-trafficking conspiracy.
Holmes’s son and co-defendant Gerald L. Holmes, also known as “Jerry” or “Joker,” 27, and co-defendant Richard M. Phoenix, also known as “Snake,” 77, both of Kansas City, Mo., have also pleaded guilty and await sentencing.
During the conspiracy, which lasted from May 1 to Sept. 13, 2016, Bond invested $10,000 into the marijuana operation. In return, he received $1,000 a week as interest and free marijuana until the entire principal investment was repaid in full. This investment allowed Gerald Holmes and a co-conspirator, identified in court documents as “C.H.” (who had made four trips to Colorado with Gerald Holmes), to purchase greater quantities of marijuana per trip. Once it reached the greater Kansas City metropolitan area, the marijuana was then resold by Gerald Holmes and C.H.
Conspirators purchased at least 120 pounds of marijuana from Borrusch, for which they made more than a dozen trips between Colorado and Kansas City. Gerald Holmes paid Borrusch between $1,600 to $2,400 per pound, depending on the type and quality of marijuana available. Randal Holmes received $100 for every pound of marijuana brought back to Kansas City because of his prior connection to Borrusch, who was previously his supplier.
On Sept. 12, 2016, Randal and Gerald Holmes agreed to kidnap C.H. because he stole money that was intended for the purchase of marijuana.
They arrived at the Independence, Mo., residence of the victim’s father, identified as “W.H.,” on Sept. 12, 2016. During their conversation, Gerald Holmes removed a firearm from his waistband and placed it on a table in front of W.H. They told W.H. to call C.H. and tell him he was being held at gunpoint and that C.H. needed to come to the residence right away. When C.H. arrived at the residence, Randal Holmes pointed a firearm at him and told him to get into his vehicle. While in the vehicle, Gerald Holmes struck, punched and choked C.H. as Randal Holmes drove away.
They took C.H. to Randal Holmes’s residence, where they were met by Phoenix. C.H. was taken to the basement, where he was assaulted with fists, a hammer and tin snips/clippers. During the assault, Holmes repeatedly demanded that C.H. disclose where the duffle bag containing the money was located. Randal and Gerald Holmes left to retrieve the duffle bag while Phoenix held C.H. at gunpoint.
Randal Holmes later drove C.H. to a rural residence near Edwards, Mo. As Randal Holmes drove them to the residence, Gerald Holmes continued to strike C.H. with fists and the butt of a firearm. When they arrived at the residence, C.H. was told to call his father and to tell him that he was okay, that he had taken a beating, that he would be home in a couple of days and that he deserved what had happened.
Law enforcement officers were able to trace the telephone call and on Sept. 13, 2016, officers were able to locate C.H. and arrest the conspirators. Officers observed that C.H. had suffered multiple, visible injuries to his face, head, hands and feet. Officers noted that C.H. had trouble walking, that his face was black and blue, as well as swollen with traces of dried blood. Upon receiving medical treatment, it was determined that C.H. had also suffered a fracture in his left hand.
Officers found a Jimenez Arms 9mm pistol in Randal Holmes’s vehicle and a Hi-Point 9mm pistol in the residence where C.H. had been held. Officers also found an FN Herstal .40-caliber pistol, a Remington .270-caliber rifle, an RG .22-caliber revolver, a Ruger .22-caliber rifle, a Mossberg .20-gauge shotgun, 36.4 grams of marijuana and drug paraphernalia in another residence.
This case is being prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh. It was investigated by the Independence, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Benton County, Mo., Sheriff’s Department, the Missouri State Highway Patrol and the FBI.
Jury Returns Guilty Verdict Involving Multi-Kilo Cocaine Distributor with Criminal HistoryRead the Press Release
COLUMBUS – A Columbus man found guilty for attempting to sell 11,995 grams of cocaine to an undercover agent could spend up to life in prison for his crime, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Kenneth James, 51, of Phenix City, AL is guilty of Possession of Cocaine with Intent to Distribute. Due to the large amount of cocaine, more than five kilograms, Mr. James faces a minimum 10 years to a maximum life imprisonment and a $10,000,000 fine. The trial began Monday, March 11, 2019 in a Columbus federal courtroom, presided over by the Honorable Clay D. Land. The jury returned the verdict after an hour and a half of deliberations Wednesday afternoon. Following the verdict, Mr. James was taken into custody and will be sentenced in July. There is no parole in the federal system. Mr. James was convicted in December 1999 on the charge of Possession of Cocaine with Intent to Distribute in the Middle District of Alabama.
An undercover agent working with the Columbus Police Department (CPD) identified Marcus Marshall, 35, of Columbus, GA, a co-defendant in this case, as a large quantity cocaine distributor in September 2017. In a series of recorded calls, Mr. Marshall agreed to meet with the undercover agent to sell 10 kilos of cocaine at $27,500 per kilo. On October 16, 2017, law enforcement documented Mr. James meeting Mr. Marshall at a motel and moving a large box (later discovered to be carrying 11,995 grams of brick form cocaine) from the trunk of his Mercedes Benz to Mr. Marshall’s BMW SUV. Mr. James and Mr. Marshall then drove a short distance to the Welcome Center parking lot on Williams Road in north Columbus to meet the undercover agent. The defendants were arrested during the transaction with the undercover agent. Mr. Marshall has a criminal past, and was convicted in the Middle District of Georgia in July 2004 for Distribution of Cocaine Base and was sentenced to 78 months in prison. For this crime, Mr. Marshall pleaded guilty in December 2018 and was sentenced to ten years in prison for Possession with Intent to Distribute and Possession of a Firearm by a Convicted Felon.
“Good police work stopped these career criminals from distributing a large amount of a deadly drug into the Columbus community,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “Law-abiding citizens do not want dangerous drugs circulating in their communities, and law enforcement across Middle Georgia are successfully joining together to investigate and prosecute these crimes. Thank you to the Columbus Police Department and the DEA for their work in this matter.”
This case was investigated by the Columbus Police Department and the DEA. Assistant U.S. Attorneys Mel Hyde and Chris Williams are prosecuting the case for the Government.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Jury Convicts East Coast Leader of Nationwide Methamphetamine ConspiracyRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a New York man today on charges of conspiracy to distribute methamphetamine.
According to court records and evidence presented at trial, Kendesia Juinize May, 40, was a leader of a sprawling, nationwide methamphetamine distribution network with ties to California, New York, Washington, DC, and the Eastern District of Virginia. The network utilized pirated and fraudulent Federal Express accounts to ship pound quantities of California-sourced methamphetamine throughout the United States.
In late 2017, May negotiated to buy into the conspiracy and assume distribution responsibilities to its Washington, DC area customers, many of whom were themselves distributors of methamphetamine. According to evidence presented at trial, May “took over” methamphetamine distribution in the northern Virginia and Washington, DC area and aspired to become “the biggest drug dealer on the East Coast.”
Multiple witnesses testified that May traveled from his home in New York to the Washington, DC area every week for the purpose of selling methamphetamine. He did so because the Washington, DC area is one of the most lucrative methamphetamine markets in the country.
The government presented evidence showing that the conspiracy sent nearly 400 FedEx packages containing either pound quantities of methamphetamine or thousands of dollars in proceeds of drug sales. On May 25, 2018, officers of the Maryland Transportation Authority Police stopped May while driving his Mercedez Benz vehicle, and a search of the vehicle led to the discovery of more than five pounds of pure methamphetamine, along with FedEx packaging, digital scales, and other drug paraphernalia.
May faces a mandatory minimum of 10 years in prison when sentenced on June 7. 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.
This case was prosecuted as part of Organized Crime Drug Enforcement Task Force (OCDETF) Operation Four Horsemen. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This investigation was led by the DEA Washington Field Office, with significant assistance from the Arlington County Police Department, U.S. Postal Inspector Service, the DEA Baltimore District Office, and the Maryland Transportation Authority Police.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, M. Jay Farr, Arlington County Chief of Police, and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the verdict. Assistant U.S. Attorneys David A. Peters and Katherine E. Rumbaugh 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. 1:19-cr-7.
Joplin Woman Sentenced to 19 Years for Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., woman was sentenced in federal court today for illegally possessing a firearm.
Tracy Arlene Smith, 48, was sentenced by U.S. District Judge M. Douglas Harpool to 19 years and seven months in federal prison without parole.
On Sept. 25, 2018, Smith was found guilty at trial of one count of being a felon and an unlawful user of cocaine and methamphetamine in possession of a firearm and ammunition.
According to evidence introduced during the trial, law enforcement officers executed a search warrant at Smith’s residence located in Joplin, on June 22, 2017. During the execution of the search warrant, members of the Ozark Drug Enforcement Team seized Smith’s purse, which contained a CDM Prod. Inc., .22-caliber pistol, loaded with six rounds of .22 caliber ammunition. Officers also seized drug paraphernalia.
Under federal law, it is illegal for anyone who is an unlawful user of controlled substances, or who has been convicted of a felony, to be in possession of any firearm or ammunition. Smith, who was on parole at the time she committed the offense, has five prior felony convictions for forgery, four prior felony convictions for possession of a controlled substance, and prior felony convictions for sale of a controlled substance (on three separate occasions) and assault.
This case was prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert and Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the Ozark Drug Enforcement Team and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Jamaican Citizen Pleads Guilty to Conspiracy to Commit Mail and Wire FraudRead the Press Release
SYRACUSE, NEW YORK – Sanjay Burton a/k/a Michael Peart, age 34, and a citizen of Jamaica, pled guilty today to conspiring to commit mail and wire fraud, from September 2011 to May 2014.
The announcement was made by United States Attorney Grant C. Jaquith; Inspector in Charge, U.S. Postal Inspection Service (USPIS), Boston Division, Joseph Cronin; and Acting New York State Police Superintendent Keith Corlett.
In pleading guilty, Burton admitted that he conspired with others to place phone calls from Jamaica to individuals located within the United States, and particularly, to senior citizens residing in the United States. During these calls, Burton would advise the victims that they had won large sums of money in a sweepstakes, lottery, or other event. Burton would then advise the victims that they must first pay taxes or fees in order to collect the winnings. Burton made false promises to the victims that once they paid these taxes or fees, the winnings would be delivered to them.
Burton admitted that in August 2012, he contacted a victim located in Oneida County, New York, and advised her that she had won a $250,000 prize, but that to collect the prize, she would need to pay the associated taxes and fees. This particular victim then wired money to a third party in New York City, who in turn, wired a portion of that money along to Burton in Jamaica. Over the course of the next year, Burton admitted that he caused the victim to send, via mail, Federal Express, or Western Union, at least $107,930.00 in United States currency, to him directly, or to receivers acting on his behalf, as “payment” for taxes or fees on the victim’s purported prize winnings. The victim never received her purported winnings, which did not exist.
Burton was charged via indictment in 2014, and was successfully extradited to the United States from Jamaica in late November 2018, with the assistance of the United States Department of Justice, Office of International Affairs.
Burton pled guilty to one count of conspiring to commit mail and wire fraud, and faces up to 20 years in prison, a term of post-release supervision of up to 3 years, and a fine of up to $250,000, when he is sentenced by Senior United States District Judge Norman A. Mordue on July 15, 2019. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the United States Postal Inspection Service, the New York State Police, and the United States Marshals Service, and is being prosecuted by Assistant U.S. Attorney Katherine A. King.
Jackson Man Sentenced to over 17 Years in Prison for Trafficking MethamphetamineRead the Press Release
Hattiesburg, Miss. – Devontee Cole, 41, of Jackson, was sentenced yesterday by U.S. District Judge Keith Starrett to 211 months in federal prison for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Cole sold "ice", or actual methamphetamine, at homes in Mendenhall and Hattiesburg to a confidential informant on three occasions for a total of 584 grams of actual meth. Cole also sold the informant over three pounds of marijuana. At the time of his arrest, Cole was in possession of a gun, marijuana, methamphetamine and cash.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It was prosecuted by Assistant United States Attorney Annette Williams.
International Money Launderer and Cocaine Trafficker Extradited to the United States for Conspiring to Import Cocaine and Laundering Money Through the Black MarketRead the Press Release
Tampa, FL – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Diego Fernando Cardona Lozano (43, Cali, Colombia), a/k/a “El Doctor” and “Pomada,” with conspiracy to commit international money laundering and conspiracy to import at least five kilograms of cocaine into the United States. If convicted on all counts, Cardona Lozano faces a maximum penalty of life in federal prison. The United States has also notified Cardona Lozano that it seeks the forfeiture of proceeds traceable to the charged offenses, approximately $1.4 million.
According to the superseding indictment, Cardona Lozano conspired to import at least five kilograms of cocaine, knowing that the drugs would be imported into the United States. Cardona Lozano is further charged with conspiring to launder the proceeds of the drug trafficking by using the Black Market Peso Exchange, a financial structure used by drug cartels in Colombia to exchange currencies.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Coast Guard Investigative Service, the Naval Criminal Investigative Service, and the U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The Office of International Affairs and the U.S. Marshals Service provided assistance with the extradition process. The case will be prosecuted by Assistant United States Attorney Dan Baeza.
Indian National Admits Conspiring to Smuggle Foreign Nationals into United States via Commercial FlightsRead the Press Release
NEWARK, N.J. – An Indian national today admitted conspiring to smuggle foreign nationals into the United States via commercial airline flights, U.S. Attorney Craig Carpenito announced.
Bhavin Patel, 38, of India, pleaded guilty to before U.S. District Judge John M. Vazquez to a superseding information charging him with conspiracy to smuggle foreign nationals into the United States for private financial gain.
According to documents filed in this case and statements made in court:
Agents for the Department of Homeland Security Investigations (HSI) received information that a smuggling operation run by Patel was attempting to find methods to bring foreign nationals from India into the United States. The investigation revealed that the smuggling organization recruited Indian nationals and others to pay fees in exchange for passage to the United States.
Beginning in October 2013, an undercover law enforcement officer posing as a smuggler began meeting with Patel in Bangkok, Thailand. Patel told the undercover law enforcement officer that he wanted to smuggle Indian nationals into the United States. On three different occasions, Patel or his conspirator transported the Indian nationals to an airport in Thailand, at which point the undercover law enforcement officer would presumably use his contacts to smuggle them into the United States via commercial airline flights. Patel agreed to wire down payments for each individual to be smuggled into the United States and to pay a balance of tens of thousands of dollars for each individual once the foreign nationals arrived in the United States.
Over the ensuing months, Patel arranged for six Indian nationals to be brought to Thailand for smuggling into the United States via Newark Liberty International Airport. Patel was arrested on Dec. 7, 2018, upon his arrival at Newark Liberty.
The conspiracy charge carries a maximum potential sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for July 9, 2019.
U.S. Attorney Carpenito credit special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Thomas S. Kearney of the U.S Attorney’s Office National Security Unit in Newark.
Illegal Alien Arrested on Child Pornography ChargesRead the Press Release
SYRACUSE, NEW YORK – Anildar Valdimir Roblero-Gomez, age 25, a citizen of Mexico who had been living in Ellisburg, New York, was charged in United States District Court with transportation and possession of child pornography, announced United States Attorney Grant C. Jaquith, New York State Police Acting Superintendent Keith Corlett, and Resident Agent in Charge Jake Healey, Homeland Security Investigations (HSI), Syracuse, New York.
Roblero-Gomez, made his initial appearance in federal court today before United States Magistrate Judge Thérèse Wiley Dancks, who ordered that he be detained pending resolution of the charges. Roblero-Gomez is also being held on an immigration detainer as he is unlawfully present in the United States.
The criminal complaint filed against Roblero-Gomez alleges that in September 2018, he transported child pornography by uploading several images and videos depicting minors engaged in sexually explicit conduct to Facebook. Further, Roblero-Gomez possessed a number of graphic images and videos constituting child pornography on two cellular telephones in his possession at the time of his arrest.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Roblero-Gomez faces a mandatory minimum term of 5 years and a maximum sentence of 20 years in prison, a fine of up to $250,000.00 and a term of supervised release of at least 5 years and up to life, as well as mandatory registration as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the New York State Police and the Department of Homeland Security, Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Sahar L. Amandolare.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Holyoke Man Pleads Guilty to Making a Machine GunRead the Press Release
BOSTON – A Holyoke man pleaded guilty Tuesday, March 12, 2019, in federal court in Springfield in connection with making a machine gun.
Edward V. Laboursoliere, 50, pleaded guilty to one count of knowingly possessing an unregistered firearm, one count of possessing a firearm unidentified by a serial number, and one count of making a firearm, all in violation of the National Firearms Act. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for June 5, 2019.
On April 8, 2018, Laboursoliere’s wife reported to law enforcement that he had been storing hazardous materials in the home. In response to the report, the home was searched, where a short-barrel rifle machine gun was recovered. Laboursoliere admitted to law enforcement that he made the machine gun during the Obama administration.
The charges of receipt and possession of an unregistered firearm, receipt and possession of a firearm unidentifiable by a serial number, and making of a firearm in violation of the National Firearms Act each provide for a maximum sentence of 10 years in prison, three years of supervised release, and a $250,000 fine. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police; and Holyoke Police Chief Manuel Febo made the announcement. Assistant U.S. Attorney Deepika Bains Shukla of Lelling’s Springfield Branch Office is prosecuting the case
Health care executives sentenced to prison for fraudRead the Press Release
ATLANTA - Shailesh (“Shue”) Kothari, the former owner and CEO of Primera Medical Group, Inc., and Timothy McMenamin, Primera’s former Chief Operating Officer have been sentenced for conspiracy to commit healthcare fraud and aggravated identity theft.
“Patients submit to a doctor’s care with the expectation they will be provided the best care possible,” said U.S. Attorney Byung J. “BJay” Pak. “This case unfortunately is an example of greed. The sentences reflect the seriousness of fraudulent health insurance billing, particularly when that billing is coupled with the provider sending false medical reports to patients.”
“Kothari and McMenamin chose to take advantage of patients and the entire health care industry by billing for services that were never provided and falsifying lab reports,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This sentence will serve as a reminder to others that the FBI will not tolerate healthcare providers who engage in schemes that defraud the industry and put innocent patients at risk.”
According to U.S. Attorney Pak, the charges and other information presented in court: Primera Medical Group, Inc., was a health clinic in Atlanta, Georgia, owned by Shailesh Kothari, Chief Executive Officer, and operated by Timothy McMenamin, Chief Operating Officer. Primera claimed to focus its practice on preventative wellness, specifically corporate wellness, concierge care, and allergy testing. Kothari is a Doctor of Chiropractic Medicine who has been licensed to practice in Georgia since January 2009.
Primera hired market research companies across the United States in order to recruit patients to participate in allergy testing. Patients were told that there would be no out-of-pocket expenses and that their insurance would cover the cost of the testing in addition to being paid an amount between $65 to $100 for participating. Patients were tested for allergies regardless of whether they had any symptoms, and without any determination of medical necessity for the testing.During the allergy testing, patients’ blood was drawn, purportedly so that it could be sent to a laboratory for allergy and other testing.
Primera Medical Group billed the patients’ private insurers for multiple procedures, including blood tests. When it billed the private insurers, Primera Medical Group used the National Provider Identifier numbers of multiple doctors, without their knowledge and without those doctors having performed the services that were billed. The doctors also did not order the laboratory tests or the allergy immunotherapy injections billed for virtually every patient.Primera Medical Group also billed for blood tests that were never done. As of July 2016, hundreds of blood tests had not been completed, but were billed for by Primera. When an insurance company requested medical records to support some of the billed services, Kothari asked McMenamin to create false laboratory reports to submit to the insurance company. McMenamin created the false laboratory reports and those false reports were provided to the insurance company to support the fraudulent billing.
Because the laboratory tests were not actually completed for many patients, there were no results to provide patients. When a patient asked for results for laboratory tests that were not completed, McMenamin created false laboratory results for those patients. On multiple occasions, Kothari and McMenamin sent false laboratory reports directly to patients. They did not tell the patients that the results were false. In one specific case, Kothari and McMenamin prepared false lab reports for a five-year-old who was suffering from an unknown reaction.
In total, Primera Medical Group submitted more than 4,500 fraudulent claims using the NPI numbers of unknowing doctors. These claims sought more than $8.5 million in insurance payments.Shailesh (“Shue”) Kothari, 45, of Atlanta, Georgia, and was sentenced to six years, nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,506,181.32. Kothari was convicted on these charges on October 29, 2018, after he pleaded guilty.
Timothy McMenamin, 32, of Atlanta, Georgia, was sentenced to seven years, ten months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,506,181.32. McMenamin was convicted on these charges on November 16, 2018, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation. Assistance was also provided by the Special Investigations Unit for Blue Cross Blue Shield of Georgia.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Fraud Section, prosecuted the case.
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.
Haverhill Nurse Charged with Drug TamperingRead the Press Release
BOSTON – A Haverhill licensed practical nurse was charged on March 12, 2019, in federal court in Boston with drug tampering.
Lauren Perrin, 47, was charged by Information with one count of tampering with a consumer product, specifically the Schedule II controlled substance morphine, which is used for pain relief.
While working as a licensed practical nurse at Maplewood Care and Rehabilitation Center in Amesbury, Perrin tampered with three bottles of morphine sulfate prescribed to a hospice patient. In an attempt to avoid detection, she replaced the extracted medication with another liquid. Perrin’s tampering lowered the potency of the three bottles of morphine sulfate to only 4-29% of the intended potency.
The charging statute provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Andrew Lelling; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; and Commissioner Monica Bharel, MD, MPH, of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorney Elysa Wan of Lelling’s Health Care Fraud Unit is prosecuting the case.
The details contained in the information are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Gambino Crime Family Associate Charged in Murder and Robbery of Brooklyn ManRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Anthony Pandrella, an alleged longtime associate of the Gambino organized crime family, with the Hobbs Act robbery and murder of 78-year-old Vincent Zito. The indictment was returned under seal by a federal grand jury on March 7, 2019. Pandrella was arrested last night and is scheduled to be arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges.
According to the indictment and detention letter, on October 26, 2018, Pandrella met with Zito, a friend of many years, in Zito’s home. While there, he shot Zito in the back of the head at close range, and stole the assets of Zito’s loan business. Pandrella then cleaned up evidence that might link him to the murder. Later that day, Pandrella returned to Zito’s home and met with his family, friends and relatives and tried to learn the status of law enforcement’s investigation. Pandrella was captured on security camera footage coming to and going from Zito’s residence at the time of the robbery and murder. Additionally, Pandrella’s DNA was recovered from the trigger of the murder weapon.
“As charged in the indictment, Pandrella executed a 78-year-old man in his own home so he could steal from him” stated United States Attorney Donoghue. “With today’s arrest, he will now face justice for these brutal crimes.” Mr. Donoghue extended his grateful appreciation to the Brooklyn District Attorney’s Office for its assistance during the investigation.
“An associate of the Gambino crime family allegedly shoots his friend in the back of the head, returns to the home to visit with the family and then thinks he can dispose of the evidence of the crime,” stated FBI Assistant Director-in-Charge Sweeney. “It takes a certain type of evil to murder a friend in their own home, and then console the grieving relatives. The FBI Joint Organized Crime Task Force hasn’t stopped pursuing members and associates of these crime families and bringing them to justice for their disregard of the law and human life.”
“Stamping out organized crime and the violence that is associated with it remains a priority of the NYPD and its partners in law enforcement,” stated NYPD Commissioner O’Neill. “I want to thank our colleagues at the Eastern District, the FBI, the Brooklyn District Attorney’s office, and the investigators involved in the case for bringing this individual to justice and for their unceasing efforts to combat organized crime and violence.”
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Pandrella faces up to life imprisonment and is eligible for the death penalty.
The government’s case is being prosecuted by the Office’s Organized Crime and Gang Section. Assistant United States Attorney M. Kristin Mace is in charge of the prosecution.
The Defendant:
Anthony Pandrella
Age: 59
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-122 (MKB)
Fugitive Loan Broker Extradited from South Korea Pleads Guilty to Federal Bank Fraud Conspiracy to Fraudulently Obtain over $100 Million in SBA-Backed Business LoansRead the Press Release
Baltimore, Maryland – Loren Young Park, age 52, formerly of Falls Church, Virginia, pleaded guilty today to conspiracy to commit bank fraud, in connection with a scheme to fraudulently obtain business loans guaranteed by the Small Business Administration (SBA), with resulting losses of over $100 million. Loren Park was a fugitive for eight years and was extradited from South Korea to face these charges.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Small Business Administration Inspector General Hannibal “Mike” Ware; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; and Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation.
“Our financial system is based on trust,” said U.S. Attorney Robert K. Hur. “Loren Park and his co-conspirators lied during every aspect of the loan process, cheating taxpayers and lenders, causing more than $100 million in losses, and hurting the chances of future small business owners to obtain loans. I am grateful for the patience and diligence of our law enforcement partners to get Loren Park back from South Korea and bring him to justice.”
According to his plea agreement and other court documents, Loren Park and his brother, Joon Park, owned and operated Jade Capital. Jade Capital brokered small business loans, among other services, for clients and on behalf of Loren Park, Joon Park and their family. According to the plea agreement, Loren and Joon Park and others under their direction encouraged prospective borrowers using the services of Jade Capital to apply for business loans through the SBA’s Section 7(a) program, which guaranteed 75% - 90% of qualified loans made by banks and other commercial lending institutions. Under this program, the principals of the small business seeking the loan were required to invest a certain amount of their own money, called an equity injection, before they qualified for a loan. The banks and other lending institutions making the loan bore the risk of payment default only up to the percentage of the loan not guaranteed by the SBA.
Loren Park admitted that from 2003 until October 2011, he and others under his direction, including Nick Park (no relation), Joo Hyuk “John” Lee, Sang Hyun Kim, and In Jung Ham, submitted SBA loan applications and supporting documentation to loan originators and underwriters on behalf of their clients that contained fraudulent documents, including: bank statements for borrowers that were altered to make it look like the borrowers had more cash to inject into the business they were buying than they in fact did; counterfeit cashiers’ checks and fake gift letters that made it look like the borrowers had more assets at their disposal to use as down payments than they did; fabricated resumes that made it look like the borrowers had more experience running the businesses they sought to purchase than they did; fake tax returns that made it look like the borrowers had greater income than they did; phony interim financial statements that made other businesses the borrowers owned look more profitable than they were; and a number of other misrepresentations.
Loren and Joon Park charged a loan brokerage fee to both the financial institutions and the borrowers for assembling and submitting loan application packages that resulted in the issuance of SBA-guaranteed loans. The fees charged to borrowers were hidden from the financial institutions underwriting the loans. The Parks also had undisclosed ownership interests in businesses involved in some of the transactions and received loan proceeds, unbeknownst to the lenders, in a number of transactions. In one instance, the Parks did not have an ownership interest in a company involved in a transaction but persuaded the seller to assign some of the loan proceeds to them and then converted those proceeds to their own personal use.
Loren Park was on a business trip to South Korea when he learned that he had been indicted in this case. Loren Park had intended to return to the United States, but after learning that he had been indicted, he chose not to return and not face the charges pending against him. Subsequently, he also made several public information requests to the FBI, from South Korea, requesting his criminal record in order to determine whether there were still charges pending against him.
On June 20, 2013, co-defendant Joon Park, a/k/a “Joon Pak,” and “Joon Paik,” age 48, of Falls Church Virginia, was sentenced to 14 years in prison, followed by five years of supervised release, and was ordered to pay a money judgment of $91,449,700 and forfeit all the property involved in the offense.
Co-defendant Nick Park, a/k/a Nochol Park, age 51, of McLean, Virginia, was sentenced to 33 months in prison; and co-defendants Joo Hyuk “John” Lee, age 45, of Richmond, Virginia, and Sang Hyun Kim, age 42, of Fairfax, Virginia, were each sentenced to three years in prison, for conspiracy to commit bank fraud. Kim’s wife, In Jung Ham, age 38, also of Fairfax, was sentenced to a year and a day in prison, for her role in the scheme. Lee was ordered to pay restitution of $1,900,325 and Ham was ordered to pay restitution of $216,472.92. Lee, Kim and Ham were also ordered to forfeit the proceeds of the scheme and pay money judgments of $18,764,900, $13,432,000 and $15,725,000, respectively. Co-conspirator Seung E. Oh, a/k/a Sandy Oh, age 50, of Great Falls, Virginia, a settlement attorney who worked with Joon Park, was sentenced to 51 months in prison, and was ordered to pay a money judgment of $11,832,000, pay restitution of $3,593,432, and forfeit all the property involved in the offense.
Loren Park and the government have agreed that, if the Court accepts the plea, Park will be sentenced to nine years in federal prison for the bank fraud conspiracy. U.S. District Judge Catherine C. Blake has scheduled sentencing for May 24, 2019, at 11:00 a.m.
United States Attorney Robert K. Hur thanked the SBA Office of Inspector General, the U.S. Postal Inspection Service, and the FBI for their work in the investigation. Mr. Hur praised Assistant U.S. Attorneys Leo J. Wise and Martin J. Clarke, who are prosecuting the case.
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Fraud felony nets more than 12 years in prisonRead the Press Release
SAVANNAH, Ga: A man who has made a career of committing felony fraud will spend more than 12 years in federal prison for his role in attempting to defraud victims of nearly $2 million.
Uchechi Ohanaka, a/k/a “Mike,” 44, of Houston, Texas, was sentenced to 125 months in prison by U.S. District Court Senior Judge William T. Moore Jr. after pleading guilty to Conspiracy to Commit Bank Fraud, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Judge Moore also sentenced Ohanaka to serve 24 additional months in prison for violating the terms of supervised release from a previous case.
After his release from the total of 149 months in prison, Ohanaka will serve five years of supervised release. There is no parole in the federal system.
According to court documents and information presented in court proceedings, Ohanaka, a naturalized citizen, has engaged in decades of fraud since immigrating to the United States from Nigeria. He has two prior federal felony fraud-related convictions, including one for Conspiracy to Commit Bank Fraud and Aggravated Identity Theft for which he was serving supervised release when the latest fraudulent activities occurred in 2017.
Ohanaka, working with others, gained access to victims’ bank account information and provided false identification to an individual who went into banks to impersonate wealthy customers. The scheme involved creating fictitious companies using the names of victims, setting up bank accounts linked to the victims’ accounts, and then withdrawing money from the unsuspecting victims’ accounts. A call in furtherance of the conspiracy took place in Savannah.
The U.S. Secret Service arrested Ohanaka on Dec. 5, 2017, after he provided fake identification and account information for an individual so that individual could use it to withdraw more than $200,000 from a victim’s bank account. At sentencing, the Court found Ohanaka responsible for more than $1.7 million in fraud.
“To the victims of fraud, there is little difference between a mugging on the street or a theft using keystrokes on a computer,” said Southern District of Georgia U.S. Attorney Bobby L. Christine. “Both cases rob the victim of their money, their dignity and their sense of security – and either type of theft will result, like this one, in the criminal facing real prison time.”
“Technology has forever changed the way we do business, making everyday financial transactions a prime target for fraud,” said Glen Kessler, Savannah Resident Office Agent in Charge of the U.S. Secret Service. “The Secret Service, in conjunction with its many law enforcement partners, continues to successfully combat these crimes by adapting our investigative methodologies and educating the public.”
The case was investigated by the United States Secret Service and the Houston, Texas, Police Department, and is being prosecuted by the United States Attorney’s Office for the Southern District of Georgia.
Franklin Man Sentenced to 66 Months for Fentanyl TraffickingRead the Press Release
CONCORD – Stephen Marando, 58, formerly of Franklin, New Hampshire, was sentenced to 66 months in prison for fentanyl trafficking charges, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on April 13, 2017, Marando and another individual drove from Franklin, New Hampshire, to Lawrence, Massachusetts in order to buy fentanyl. After they obtained the fentanyl and were on their way back to Franklin, the New Hampshire State Police conducted a traffic stop on their vehicle. During the course of the stop, the other individual attempted to discard a package containing 91 grams of fentanyl that they had been picked up in Lawrence.
Marando pleaded guilty to one count of conspiracy to possess with intent to distribute fentanyl and one count of possession of fentanyl with intent to distribute on July 24, 2018.
“Traffickers who transport fentanyl into New Hampshire should understand that they face serious consequences in federal court” said U.S. Attorney Murray. “Prison sentences await those who trade in this deadly drug. In order to protect our citizens, law enforcement will continue to focus its efforts on stopping the flow of fentanyl into the Granite State.”
“This synthetic opioid is 50-100 times more powerful than heroin and we are not going to idly stand by and let more friends, family members and neighbors get addicted, or die of drug overdoses. Together, with our law enforcement partners, the FBI will continue to use every tool at our disposal to tackle the opioid crisis head on, and put individuals like Mr. Marando behind bars. The goal is and always will be to stem the flow of illegal drugs and reduce crime,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
This matter was investigated by the Federal Bureau of Investigation, the New Hampshire State Police, and the Laconia Police Department. Assistant United States Attorney Anna Krasinski is prosecuting the case.
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Former Postal Worker Pleads Guilty to Stealing MailRead the Press Release
BOSTON – A former United States Postal Service mail carrier pleaded guilty on March 12, 2019, in federal court in Worcester to stealing mail that she was responsible for delivering.
Stephanie Lacroix, 37, of Fitchburg, pleaded guilty to theft of mail by an employee of the United States Postal Service. U.S. District Judge Timothy Hillman scheduled sentencing for July 17, 2019.
Between June and August 2018, Lacroix, who worked for the U.S. Postal Service as a mail carrier in Harvard, stole credit cards and gift cards from the mail that she was responsible for delivering. Lacroix used the cards to make purchases at local gas stations and department stores.
The charge of theft of mail by a postal service employee provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss involved, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office; and Harvard Police Chief Edward D. Denmark made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.
Former Police Officer Sentenced for Federal Corruption ChargesRead the Press Release
St. Louis, MO –Marlon Caldwell, 52, of St. Louis, was sentenced to 13 months in prison for accepting bribes in exchange for un-redacted accident reports while a police officer with the City of St. Louis. He appeared in federal court today before U.S. District Judge Stephen Limbaugh, Jr.
According to court documents, between 2007 and 2016, Dr. Mitchell Davis owned and operated Davis Chiropractic Clinic, now known as City Health and Chiropractic. Located on Lindell Blvd in St. Louis, the clinic primarily provided services to accident victims. Galina Davis assisted Dr. Davis in identifying, soliciting, and scheduling potential accident victims.
According to SLMPD policy, the SLMPD will provide un-redacted accident reports only to persons involved in the accidents, the companies insuring them, or the lawyers representing them. Un-redacted accident reports contain detailed information, including addresses, telephone numbers, birthdates, and insurance information of the occupants of the vehicles. Dr. Davis and Galina Davis knew that the SLMPD would not disclose un-redacted police reports to them. To get around this policy, Galina Davis and Dr. Davis recruited, solicited, and paid individual SLMPD police officers to obtain un-redacted accident reports for them.
Using the information from the un-redacted reports, Galina Davis contacted accident victims, identified herself as Gail, Allison, Kelly, Laura, or Shannon, and offered the accident victims free services at Davis Chiropractic. Dr. Davis and Galina Davis focused on identifying accident victims from neighborhoods where there was a large concentration of low-income victims. They believed that low-income individuals would be more receptive to their solicitations and offers of free services.
Caldwell admitted to facilitating this exchange of cash for reports. Caldwell pleaded guilty to conspiracy to accept bribes on December 7, 2018. Co-defendant Mark Taylor admitted to a substantive count of bribery and will be sentenced April 3, 2019.
This case was investigated by the Federal Bureau of Investigation and the United States Department of Health and Human Services, Office of Inspector General. Assistant United States Attorneys Dorothy McMurtry and Reginald Harris are handling the case for the U.S. Attorney’s Office.
Former Owner/Operator of Fall River Glass Company Pleads Guilty to Federal Payroll Tax ChargesRead the Press Release
BOSTON – The former owner of a now closed Fall River-based glass company pleaded guilty in federal court in Boston on March 11, 2019, to charges that he failed to report and pay over to the IRS taxes he had withheld from his company’s employees.
Moses Rapoza, 83, of Lakeville, pleaded guilty to one count of filing a false tax return and 11 counts of failing to pay over to the IRS the taxes he withheld from employee wages. U.S. District Judge Richard G. Stearns scheduled sentencing for June 13, 2019.
Rapoza was described as the former owner and operator of Global Specialty Glass Contractors Inc., a glass installation business previously located in Fall River. For every calendar quarter from 2011 through 2014, Rapoza withheld income taxes and Federal Insurance Contributions Act (FICA) taxes from wages he paid to his employees, but failed to pay those taxes to the IRS on behalf of the employees. In addition, Rapoza filed a false Form 941 tax return with the IRS, knowing that it understated the amount of wages he had paid to employees.
The charge of filing a false tax return provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000. The charge of failure to pay over taxes provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. Assistant U.S. Attorney Victor A. Wild of Lelling’s Security and Financial Fraud Unit is prosecuting the case.
Former HUD Employee Pleads Guilty to Accepting Bribes from Government ContractorRead the Press Release
WASHINGTON – Kevin Jones, 48, a former contract oversight specialist with the U.S. Department of Housing and Urban Development (HUD), pled guilty today to a federal bribery charge stemming from a scheme in which he provided non-public information about pending HUD contracts to a business owner in exchange for tickets to sporting events, travel, and cash.
The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Reginald O. Sessoms, Special Agent in Charge, Special Investigations Division, HUD Office of Inspector General.
Jones, of Laurel, Md., pled guilty in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 15 years in prison and potential financial penalties. Under federal sentencing guidelines, Jones faces a likely range of 30 to 37 months in prison and a fine of up to $100,000. He also has agreed to pay a forfeiture money judgment of $50,302, representing the value of the gifts that he received in the scheme.
The Honorable Randolph D. Moss scheduled sentencing for June 13, 2019.
According to a statement of offense signed as part of the plea, Jones began work at HUD in 1999. His responsibilities included serving as the technical point of contact for certain contracts and reviewing contractor performance. By virtue of his position, he had access to bid, proposal, and source selection information about a number of HUD contracts.
The bribery charge involves Jones’s dealings with Charles Thomas, the sole owner and president of a company in Maryland that provided technology services to agencies of the federal government and educational services to public school children in the Washington, D.C. area.
Between at least 2010 and 2018, according to the statement of offense, Thomas provided Jones with tickets to sporting events, travel, and cash in exchange for Jones providing Thomas and his company with non-public information about pending HUD contracts. In particular, the information and recommendations that Jones provided gave Thomas an unfair competitive advantage in obtaining two contracts a valued at more than $4.5 million. Jones himself approved invoices totaling nearly $3.8 million for work done under one of the two contracts.
According to the statement of offense, from 2010 through 2017, Thomas and his company provided Jones with a variety of gifts and benefits, including more than $17,000 worth of tickets to Washington Redskins games and three Super Bowls; $1,700 in Washington Wizards tickets, more than $3,200 in hotel accommodations; more than $3,600 in travel expenses, more than $13,000 in cash and checks, meals, a camera, and a pair of basketball shoes.
In a related prosecution, another former HUD employee, LaFonda Lewis, pled guilty in January 2019 to providing non-public information to Thomas in exchange for money, tickets to sporting events, and other things of value. As part of her plea, she has agreed to pay a forfeiture money judgment of $23,055, representing the illegal proceeds. Lewis was a former supervisory contract oversight specialist. Lewis, 57, of Lusby, Md., is to be sentenced on March 28, 2019.
Thomas, 45, of Lusby, Md., pled guilty in May 2018 to one count of conspiracy to commit bribery and two counts of conspiracy to pay gratuities and violate the Procurement Integrity Act. Thomas is awaiting sentencing. In his guilty plea, Thomas admitted to paying bribes to the two HUD employees as well as to an employee of the District of Columbia Office of the State Superintendent of Education (OSSE) in return for payments on contracts involving that agency.
The former District of Columbia employee, Shauntell Harley, 49, of Washington, D.C., was sentenced in July 2018 to 56 months in prison for accepting bribes in return for clearing the way for payments to be made to Thomas and another businessman.
In announcing the sentence, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Special Agent in Charge Sessoms commended the work of those who investigated the case from the FBI’s Washington Field Office, HUD’s Office of the Inspector General, and the Office of the Inspector General for the District of Columbia.
They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Joshua Fein and former Paralegal Specialist Kristy Penny. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Peter C. Lallas, who is investigating and prosecuting the matter.
Former District Government Employee Pleads Guilty to Scheme Involving over $1.4 Million in Fraudulently Issued BenefitsRead the Press Release
WASHINGTON – A former employee of the District of Columbia Department of Human Services (DHS) pled guilty today to a scheme in which he defrauded the agency of more than $1.4 million by steering inflated food stamp and temporary assistance benefits to people who were not entitled to receive them. In return, he received cash kickbacks and sexual favors
The announcement was made by U.S. Attorney Jessie K. Liu, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office, District of Columbia Inspector General Daniel W. Lucas, and Special Agent in Charge Maureen R. Dixon of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.
The former employee, Demetrius McMillan, 48, of Washington, D.C., pled guilty in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 15 years in prison and potential financial penalties. Under federal sentencing guidelines, McMillan faces a likely range of 108 to 135 months in prison and a fine of up to $300,000. He also has agreed to pay $1,456,985 in restitution, forfeit $74,811 in cash seized in a search of his residence, and pay an additional forfeiture money judgment.
The Honorable Senior Judge Paul L. Friedman scheduled sentencing for June 19, 2019.
McMillan’s scheme targeted and defrauded the Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamps program, and Temporary Assistance for Needy Families (TANF), which consists of cash benefits. Benefits in both programs were provided to clients via electronic benefit cards.
According to plea documents, McMillan was a social service representative at a DHS service center in Southeast Washington. Social service representatives reviewed and processed applications for SNAP and TANF payments, as well as “underpayments.” Underpayments occurred when DHS clients did not receive the SNAP or TANF payments for which they were eligible. These could be caused by errors by DHS or by the clients.
Social service representatives were permitted to authorize up to $2,000 in underpayments at a time without supervisory approval. As part of his work, McMillan also had access to the computer system used by DHS to manage services, including the creation of underpayments.
Between April 25, 2018, and July 25, 2018, McMillan used his access to the computer system to authorize approximately 779 fraudulent SNAP and TANF underpayments for approximately 305 beneficiaries, totaling approximately $1,456,985. According to the plea documents, he authorized these underpayments knowing that the beneficiaries were not entitled to them. In exchange for authorizing these fraudulent underpayments, he solicited more than $380,000 in cash kickbacks from the beneficiaries, and accepted at least $150,000 in cash kickbacks. McMillan also solicited and accepted sexual favors from some of the beneficiaries in exchange for issuing fraudulent underpayments.
In order to avoid detection, McMillan intentionally ensured that each fraudulent underpayment transaction fell below the $2,000 threshold for which supervisory approval was required. The average fraudulent SNAP underpayment he created was approximately $1,757, and the average fraudulent TANF underpayment was $1,986.
McMillan recruited beneficiaries to the scheme by soliciting D.C. DHS clients who were eligible for SNAP and TANF benefits and with whom he had a previous working relationship. He also used third parties to recruit beneficiaries to the scheme, For the most part, the agreement was that in exchange for authorizing fraudulent SNAP and TANF underpayments in a particular beneficiary’s name, McMillan would get approximately $1,000 out of each fraudulent TANF underpayment he authorized for that beneficiary.
All told, 296 of the 305 beneficiaries for whom Defendant McMillan authorized fraudulent underpayments were women. In addition to soliciting and accepting cash kickbacks from these female beneficiaries, McMillan engaged in texting of a sexual nature with at least 50 of them, frequently soliciting sexual favors in exchange for authorizing fraudulent underpayments. In his guilty plea, McMillan admitted that he accepted sexual favors from 10 to 20 female beneficiaries in exchange for authorizing fraudulent underpayments.
This case is being investigated by the FBI’s Washington Field Office, the District of Columbia Office of the Inspector General, and the U.S. Department of Health and Human Services Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Emily A. Miller, with assistance from Paralegal Specialist Aisha Keys.
Five men charged in 71-count indictment with defrauding federal agencies by paying bribes and fraudulently obtaining at least $15 million in government contracts they were not entitled to though disabled-veteran set asides and other programsRead the Press Release
Five men were charged in a 71-count indictment with engaging in conspiracies to defraud several federal agencies by paying bribes and fraudulently obtaining at least $15 million in government contracts they were not entitled to though disabled-veteran set asides and other programs.
Indicted are: James A. Clark, 61, of Chipley, Florida, who owned several businesses, including Enola Contracting Services, Inc.; Eric L. Hogan, 59, of Bonaire, Georgia, who owned P&E Construction, LLC; Kenneth A. Latham, 73, of Albany, Georgia, who was employed by the U.S. Navy as a civilian engineering technician; James K. Alford, 55, of Bowling Green, Kentucky, who owned K&S Constructors, Inc., and Harvey Daniels, Jr., 40, of Marianna, Florida, who owned HDJ Security, Inc.
The charges include conspiracy to commit honest services wire fraud, conspiracy to commit wire fraud, wire fraud, conspiracy to submit false claims, false claims and major fraud.
Construction projects detailed in the indictment include contracts at the Marine Corps Logistics Base in Albany, Georgia, the VA Medical Center in Louisville, Kentucky, and the NASA Plum Brook Station near Sandusky, Ohio.
According to the indictment:
Federal departments and agencies, as directed by Congress, work with the Small Business Administration to award portions of contracts to small businesses, with specific goals for small disadvantaged business, including service-disabled veteran-owned small businesses.
Businesses must register and meet a number of criteria to be classified as small disadvantaged business – also known as the 8(a) program -- such as being at least 51 percent owned and controlled by socially and economically disadvantaged individuals. Businesses must also meet a number of criteria to be classified as a service-disabled veteran-owned small business, such as being at least 51 percent owned by a veteran with a service-connected disability who controls the management and daily operations of the company. Service-disabled veteran-owned small businesses are permitted to enter into joint ventures with other companies but must meet specific requirements to do so.
The defendants and others engaged in several criminal schemes designed to deprive the government of its right to honest services of its employees through bribes and kickbacks, and to submit false claims and defraud the United States by obtaining government contracts set aside for qualified companies to which they were otherwise ineligible to obtain by fraudulently using proxy and pass-through companies.
P&E, through Hogan and Clark, made false statements, misrepresentations and omissions of facts. Hogan on several occasions certified P&E was a service-disabled veteran-owned small business. It also registered as a joint venture with Enola, with Hogan listed as president and Clark as vice president of the joint venture. HDJ Security was enrolled in the 8(a) program. Daniels self-identified as the president of HDJ, the sole owner of the company and to be socially disadvantaged.
In one scheme, Latham accepted a series of bribes and kickbacks from Hogan and Clark -- including cash, meals, a hunting trip, a fence, and an all-terrain vehicle -- in return for Latham using his official position with the Navy to benefit Hogan, Clark and their businesses. These benefits included assistance in finding and securing government contracts, approval of invoices for payments to pass-through companies used by Hogan and Clark to obtain set-aside contracts for which their companies were not otherwise eligible, and concealing Clark and Hogan’s use of pass-through companies to obtain bonding.
Another scheme involved defrauding the VA and the TK by fraudulently representing that P&E and Hogan independently qualified for the service-disabled veteran-owned small business program despite Clark’s involvement in providing bonding for and equity ownership in P&E.
Clark, Hogan, Alford, Daniels and others defrauded the government by using purported service-disabled veteran-owned small businesses and 8(a) businesses as proxies to bid on and obtain set-aside contracts.
Arrow Construction, which was registered in the 8(a) program, was awarded a $2.8 million contract for work at the Marine Corps Logistics Base in Albany, Georgia, in September 2011. Clark and Arrow officials Kent Reynolds and Jennifer Dillard (who both have been previously charged in the Northern District of Ohio) agreed that about 90 percent of the value of the contract was passed through to Clark and Enola, in violation of the 8(a) program.
HDJ was awarded a contract for work at the Marine Corps Logistics Base in Albany, Georgia, in September 2012. HDJ was paid approximately $2.6 million. Clark, Hogan and Daniels agreed to pass through approximately 95 percent of the value of the contract to Clark, Hogan, Enola and P&E, in violation of the terms of the 8(a) program.
The VA in June 2011 awarded a contract to P&E Construction for work at the VA Medical Center in Louisville, Kentucky. The VA paid P&E approximately $4.5 million that the company would not have received if the VA knew P&E was acting as a pass-through for K&S and that it was back-bonded by Clark and Enola.
P&E submitted a winning bid in February 2013 for a contract for construction services at the NASA Plum Brook Station near Sandusky, Ohio. NASA paid P&E approximately $5.6 million that the company would not have received if NASA knew it was acting as a pass-through for K&S and that P&E was back-bonded by Clark and Enola.
“These programs were created to help companies owned by disabled veterans and other struggling small businesses,” U.S. Attorney Justin E. Herdman said. “The defendants in this case took advantage of these programs to fraudulently obtain taxpayer money.”
Michael J. Missal, Inspector General for the U.S. Department of Veterans Affairs, said: “The VA’s Service Disabled Veteran Owned Small Business Program supports qualified veterans who have served and sacrificed for their country. We will continue to work with our law enforcement partners to identify and prosecute individuals who wrongfully and fraudulently exploit these federal contracting opportunities that are meant only for service-disabled veterans.”
“I commend the outstanding investigative efforts of the NASA OIG, NCIS, DCIS, SBA-OIG, VA-OIG, DCAA, and AFOSI Agents, and the work of the USAO for the Northern District of Ohio,” said NASA Inspector General Paul Martin. “Their teamwork uncovered evidence of a criminal scheme that prevented legitimate small businesses from obtaining lucrative contracts that the defendants obtained through fraud.”
"The acceptance of bribes and kickbacks is both a violation of law and the trust the Department of the Navy places in its employees," said NCIS Director Andrew Traver. "NCIS will continue to protect the Department of the Navy from these fraudulent schemes to ensure readiness of the fleet."
"Protecting the U.S. Department of Defense (DoD's) contracting process and ensuring the integrity of DoD employees are top investigative priorities for the Defense Criminal Investigative Service (DCIS)," stated Leigh-Alistair Barzey, Special Agent-in-Charge of the DCIS Northeast Field Office. "Today's indictment of five individuals, including an employee of the U.S. Navy, is the direct result of a joint investigative effort and demonstrates the DCIS' ongoing commitment to work with its law enforcement partners and the U.S. Attorney's Office to identify, investigate and prosecute those who seek to fraudulently profit at the expense of the DoD's procurement system."
"Conspiring to commit fraud is no way to gain or extend access to SBA’s set-aside contracting programs,” said SBA Inspector General Hannibal “Mike” Ware. “OIG is committed to rooting out fraud in SBA’s programs and bringing those responsible to justice. I want to thank the U.S. Attorney’s office and our law enforcement partners for their support and dedication to pursuing justice in this case.”
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by National Aeronautics and Space Administration -- Office of Inspector General, the Defense Criminal Investigative Service, Naval Criminal Investigative Service, Department of Veterans Affairs -- Office of Inspector General, Small Business Administration -- Office of Inspector General, Defense Contract Audit Agency and the Air Force Office of Special Investigations. It is being prosecuted by Assistant U.S. Attorneys Om Kakani and Alejandro A. Abreu.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Five from New York indicted for defrauding elderly victim in OhioRead the Press Release
A federal grand jury returned a nine-count indictment charging Haki Toplica, 24, Luisa Rivera Goris, 22, Kathryn Lissette De La Torre, 24, Haider Islam, 21, and Robert Rosso, 27, all of New York, with conspiracy to commit wire fraud, wire fraud and interstate transportation of stolen property.
The defendants conspired to defraud and take money and property from a 69-year-old victim in Ohio by making false statements regarding fictitious fees and costs associated with purported loans by collecting money from the victim, and obtaining titles to property owned by the victim. This took place between June 2018 through about September 26, 2018, according to the indictment.
For example, Toplica told the victim around June 2018 that in order to obtain a $475,000 loan to pay off his creditors, the victims would have to pay fees associated with the loan via wire. The loan fees were fictitious, according to the indictment.
A month later, Toplica told the victim the victim would have to pay a $100,000 fee to obtain a $3 million loan. There was no loan, according to the indictment.
In August 2018, the victim signed over approximately 55 vehicles and equipment to Toplica to secure a $10 million loan that did not exist, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique
to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation was conducted by Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
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Federal jury finds Chalmette resident guilty of using Monroe property to illegally receive disaster fundsRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced today that Chad Lightfoot, 47, of Chalmette, Louisiana, was convicted by a federal jury for using an address at a Monroe house that he did not live in to receive disaster payments. The jury returned the guilty verdict after deliberating for approximately one hour. United States District Judge Terry A. Doughty presided over the trial that began Monday, March 11, 2019 and ended today.
Evidence presented at trial showed that Lightfoot owned an abandoned, unoccupied property in Monroe, but lived in Chalmette. After a federal disaster was declared on March 13, 2016 following severe storms and flooding in Northeast Louisiana, Lightfoot applied for disaster grant assistance with the Federal Emergency Management Agency (FEMA) for damage to the property he owned on South Fourth Street in Monroe. Lightfoot listed his primary residence as Monroe on his FEMA application, and prior to the property’s inspection by FEMA on March 30, 2016, Lightfoot obtained a Louisiana Identification Card to appear as though he lived there. He also submitted a fraudulent cable bill to FEMA to establish proof of occupancy. As a result of his fraudulent claims, FEMA sent Lightfoot $23,684 on April 4, 2016 for repairs. Lightfoot also submitted two appeals to FEMA, which included $115,669 and $122,500 in repair estimates.
Lightfoot faces up to 30 years in prison, five years supervised release, and a $250,000 fine per count, and restitution. The court set sentencing for July 3, 2019.
The Department of Homeland Security, Office of Inspector General, conducted the investigation. Assistant U.S. Attorneys Tennille M. Gilreath and Allison D. Bushnell are prosecuting the case.
Federal Grand Jury Returns Superseding Indictment against Five Amalia, New Mexico Compound DefendantsRead the Press Release
A federal grand jury sitting in Albuquerque, New Mexico returned a superseding indictment on March 13 charging Jany Leveille, 36, Siraj Ibn Wahhaj, 40, Hujrah Wahhaj, 38, Subhanah Wahhaj, 36, and Lucas Morton, 41, with federal offenses related to terrorism, kidnapping and firearms violations. The announcement was made by Assistant Attorney General John C. Demers for the National Security Division, U.S. Attorney John C. Anderson for the District of New Mexico, Assistant Director Michael McGarrity of the FBI’s Counterterrorism Division and Special Agent in Charge James Langenberg of the FBI’s Albuquerque Field Office.
These defendants were previously charged by indictment on Sept. 11, 2018, with a conspiracy relating to the possession of firearms and ammunition by an alien illegally and unlawfully in the United States. The original indictment also charged Leveille with possessing firearms and ammunition as an alien illegally and unlawfully in the United States.
The superseding indictment charges all of the defendants with participating in a conspiracy from October 2017 to August 2018 to provide material support and resources, including currency, training, weapons, and personnel, knowing and intending that they were to be used in preparation for and in carrying out attacks to kill officers and employees of the United States, in violation of 18 U.S.C. § 2339A.
“The indictment alleges that the defendants conspired to provide material support in preparation for violent attacks against federal law enforcement officers and members of the military,” said Assistant Attorney General Demers. “Advancing beliefs through terror and violence has no place in America, and the National Security Division continues to make protecting against terrorism its top priority.”
“The superseding indictment alleges a conspiracy to stage deadly attacks on American soil,” said U.S. Attorney John C. Anderson. “These allegations remind us of the dangers of terrorism that continue to confront our nation, and the allegation concerning the death of a young child only underscores the importance of prompt and effective intervention by law enforcement. I commend the FBI, DHS, ATF, Taos County Sheriff’s Office, and the Eighth Judicial District Attorney’s Office for their ongoing diligence and outstanding work in identifying and disabling imminent threats of targeted violence. ”
“The defendants in this case allegedly were preparing for deadly attacks and their targets included law enforcement and military personnel, the very people who are committed to protecting all of us,” said Assistant Director McGarrity. “We will continue to work with our law enforcement partners to uncover and put a stop to acts of terrorism.”
“During this lengthy and complex investigation, the safety of the community as well as that of the children at the Amalia compound has been our priority,” said Special Agent in Charge Langenberg. “Cases such as these sometimes take a while, but the FBI will never give up until justice is done.”
As alleged in the superseding indictment, these defendants conspired to provide material support in preparation for violent attacks against officers and employees of the United States. According to the superseding indictment, Siraj Ibn Wahhaj and Hujrah Wahhaj gathered firearms and ammunition, and all of the defendants transported people, firearms, and ammunition across state lines and constructed a training compound where they stored firearms and ammunition. The superseding indictment further alleges that Siraj Ibn Wahhaj and Morton constructed and maintained a firing range at the compound where they engaged in firearms and tactical training for other compound occupants, and that Leveille and Morton attempted to recruit others to their cause.
The superseding indictment also charges Leveille, Siraj Ibn Wahhaj, and Morton with conspiring to attack and kill officers and employees of the United States, in violation of 18 U.S.C. § 1117. It was a part and an object of the conspiracy that the defendants would kill officers and employees of the United States, specifically, Federal Bureau of Investigation employees, government officials, and military personnel.
The superseding indictment also charges Leveille, Hujrah Wahhaj, Subhanah Wahhaj, and Morton with kidnapping and conspiracy to commit kidnapping. According to the superseding indictment, they kidnapped a child under the age of eighteen in Georgia and transported the child to New Mexico, where they concealed and held the child, resulting in the child’s death.
The superseding indictment also includes the charges from the original indictment. All of the defendants are currently in custody awaiting trial.
Indictments are only accusations. Defendants are presumed innocent unless proven guilty in a court of law.
The Albuquerque Division of the Federal Bureau of Investigation investigated this case, with the assistance of the U.S. Department of Homeland Security, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Taos County Sheriff’s Office, and the Eighth Judicial District Attorney’s Office. The prosecution of the case is being handled by Assistant U.S. Attorneys George C. Kraehe and Kimberly A. Brawley and Trial Attorneys Troy A. Edwards, Jr. and David Cora of the National Security Division’s Counterterrorism Section.
Fake Nurse Pleads Guilty to Health Care Fraud, Social Security Fraud and Aggravated Identity FraudRead the Press Release
St. Louis, MO – Benjamin David Danneman, 37, of Eureka, pled guilty on March 13, 2019 to federal charges of healthcare fraud, social security fraud and aggravated identity fraud. He appeared in federal court before U.S. District Judge Ronnie White who accepted his guilty plea and set sentencing for June 12, 2019.
According to court documents, Danneman was not a nurse, but used the name and nursing license number of an actual licensed registered nurse to obtain work in the St. Louis area at Alexian Brothers Sherbrooke Village, the Rehabilitation Institute of St. Louis, and Des Peres Healthcare. Danneman was hired by Des Peres as the assistant director of nursing at the Quarters of Des Peres at an annual salary of $68,000. At these health care facilities, he was responsible for the day to day care of patients needing skilled nursing care. Further, according to court documents, during 2017 and 2018 in at least six states, Danneman used the names, Social Security account numbers, nursing license numbers, and other personal identifying information of several persons to rent apartments and to obtain a driver’s license, loans, credit cards, and insurance.
“Ensuring that our beneficiaries are provided quality care by appropriately licensed providers is a top priority of our office,” said Steven Hanson, Special Agent in Charge of the Kansas City Region of the United States Department of Health and Human Services, Office of Inspector General. “Individuals who steal the identity of licensed providers and then seek to provide services to Medicare beneficiaries will be aggressively investigated by our office.”
Healthcare fraud charge carries a penalty up to 10 years’ imprisonment and a fine of more than $250,000; social security fraud charge carries a penalty up to 5 years’ imprisonment and a fine of $250,000; and aggravated identity theft charge carries a mandatory two year period of incarceration and a fine of $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the U.S. Department of Health and Human Services – Office of the Inspector General and the U.S. Secret Service. Assistant U.S. Dorothy McMurtry is handling the case for the U.S. Attorney’s Office.
Eight Reading Residents Indicted on 21 Counts of Drug Distribution, Firearms OffensesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that eight individuals from Reading were indicted yesterday by a federal grand jury on 21 counts of drug distribution and firearms offenses. The individuals are:
- Jesus Feliciano-Trinidad, a/k/a “Chewy,” a/k/a “Che,” 29;
- Sharon Melendez-Ortiz, a/k/a “La Rubia,” 39;
- Fitzgerald Daliot-Rios, 29;
- Yomar Velazquez-Figueroa, a/k/a “Negrito,” 21;
- Dewayne Quinones, a/k/a “Hombre,” 25;
- Gisela Mendez, 42;
- Mariela Alvarado, a/k/a “Onyx,” 38; and
- Owen Malave-Medina, 22.
The charges stem from a months’ long investigation by the U.S. Attorney’s Office, the Berks County District Attorney’s Office, the Berks County Detectives, the Reading Police Department, and the FBI into the receipt, processing, and distribution of a wide variety of drugs including methamphetamine, heroin, fentanyl, cocaine, and crack cocaine. According to the indictment, the defendants used a number of buildings, residences, firearms, and acts of violence to further their drug dealing efforts in and around the Reading area. The indictment further alleges that various defendants turned to proposed violence, conspiring to shoot certain individuals and commit a kidnapping in February 2018.
If convicted, defendants Feliciano-Trinidad, Melendez-Ortiz, Velazquez-Figueroa, Daliot-Rios, Alvarado, and Malave-Medina face up to life imprisonment. If convicted, defendants Quinones and Mendez face up to 40 years imprisonment.
“These are serious federal charges with serious federal penalties,” said U.S. Attorney McSwain. “My Office is committed to working with the Berks County District Attorney’s Office and all of our federal, state, and local law enforcement partners to keep the Reading community safe.”
“If convicted of the alleged crimes, this drug trafficking organization would be one of the most violent organizations that we have ever dealt with in Berks County,” said Berks County District Attorney John. T. Adams.
“Violent drug gangs have such a corrosive effect on society,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Their crimes affect people’s peace of mind and quality of life. The FBI is committed to supporting our local law enforcement partners as we all work toward safer communities. We’re determined to make a difference, one corner, one block, one neighborhood at a time.”
The case was investigated by the Berks County District Attorney’s Office, the Berks County Detectives, the Reading Police Department, and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Jonathan B. Ortiz and Kelly A. Lewis Fallenstein, and Special Assistant United States Attorney Rosalynda Michetti.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Dominican National Pleads Guilty to Distributing Fentanyl and HeroinRead the Press Release
BOSTON – A Dominican national residing in Lawrence pleaded guilty today in federal court in Boston to distributing a mixture of fentanyl and heroin.
Jorge Aguasvivas, 39, pleaded guilty to one count of distribution of 40 grams or more of fentanyl and 100 grams or more of heroin. U.S. District Court Judge Indira Talwani scheduled sentencing for June 19, 2019.
On Aug. 2, 2018, during a joint federal and state law enforcement operation in Lawrence, Aguasvivas delivered 139 grams of a substance containing a mixture of fentanyl and heroin to an undercover agent.
Based on Aguasvivas’s prior criminal history, he is subject to enhanced penalties. The charge of distribution of 40 grams or more of fentanyl and 100 grams or more of heroin carries a mandatory minimum penalty of 10 years and up to life in prison, a minimum of eight years of supervised release, and a fine of up to $8 million. Aguasvivas will be subject to deportation upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Massachusetts Attorney General Maura Healey; and Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Dominican National Arrested for Fraudulent Applications for Passport and MassHealth BenefitsRead the Press Release
BOSTON – A Dominican national was arrested on March 12, 2019, and charged in federal court in Boston in connection with fraudulent statements on a passport application and an application for MassHealth benefits.
Hidel Romero Sanchez, 42, a Dominican national residing in Dorchester, was charged with making a false statement on a passport application and a false statement on an application for MassHealth benefits. He appeared in federal court in Boston on March 12, 2019, and was ordered detained pending a detention hearing scheduled for March 18, 2019.
The charge of false application for a passport provides for a sentence of no greater than 10 years in prison and the charge of making a false statement in a health care matter provides for a sentence of no greater than five years in prison. Each charge provides for up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Bill Abely of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.