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Thursday 20 December 2018
Norwalk Man Admits to Escaping from Waterbury Halfway HouseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that BRANDEN HUERTAS, 37, formerly of Norwalk, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to escaping from custody.
According to court documents and statements made in court, on June 22, 2018, Huertas escaped from custody at the Chase Center in Waterbury. Huertas had been confined to the Chase Center to complete a 60-month prison term for unlawful possession of a firearm.
Judge Arterton scheduled sentencing for March 20, 2019, at which time Huertas faces a maximum term of imprisonment of five years.
This matter has been investigated by the U.S. Marshals Service and is being prosecuted by Assistant U.S. Attorney Lauren Clark.
North Alabama Man Sentenced to More than 10 Years for Online Drug-Trafficking ConspiracyRead the Press Release
BIRMINGHAM - A Madison man who used the internet’s dark markets in an online drug trafficking conspiracy was sentenced on Wednesday, to more than a decade in federal prison, announced U.S. Attorney Jay E. Town, U.S. Postal Inspection Service Inspector in Charge Adrian Gonzalez and DEA Associate Special Agent in Charge Brad Byerley.
U.S. District Judge Madeline Hughes Haikala sentenced JOSEPH WILLIAM DAVIS, 26, to 126 months in prison for distributing, possessing with intent to distribute and conspiring to distribute or to possess with intent to distribute more than 50 grams of methamphetamine, more than 40 grams of fentanyl, 2.81 grams of cocaine, and more than 80,000 units of Alprazolam.
“Federal law enforcement will continue to shine a spotlight on drug dealers operating in the darkest corners of the internet,” Town said. “Federal prison beds await them all.”
“I commend the hard work and countless hours put forth by all of the law enforcement agencies involved,” Gonzalez said. “Together we will continue to be vigilant in identifying and working to prosecute those who illegally utilize the mail while keeping the safety of the American public and our Postal Service employees at the forefront.”
“The successful prosecution of Joseph Davis is a direct result of outstanding partnerships with federal, state, and local law enforcement,” Byerley said. “It should put others who engage in this type of activity on notice: if you sell drugs, whether on the street corner or online on the dark web, you will face federal charges and a lengthy prison sentence. This sentence in federal prison sends a message of our unending resolve to pursue drug traffickers who wreak havoc in our communities.”
Davis, also known on the internet’s dark markets as OlympusXans, or OX, pled guilty in August to conspiracy to traffic drugs, including fentanyl and methamphetamine, and to possessing firearms in furtherance of drug trafficking. Davis used encrypted internet chats to arrange smuggled shipments of illegal drugs, which he arranged to be delivered via U.S. Mail to addresses in Madison County.
U.S. Postal Inspectors, the Drug Enforcement Administration, Huntsville-Madison County STAC, and the Cullman County Sheriff's Department investigated the case, which Assistant U.S. Attorney Jonathan S. Keim prosecuted.
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Nigerian National Pleads Guilty to Role in Phishing Scheme that Victimized Connecticut School EmployeesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that OLUKAYODE IBRAHIM LAWAL, 36, a citizen of Nigeria last residing in Smyrna, Georgia, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to a conspiracy charge stemming from a scheme to obtain the personal identifying information of school employees in Connecticut and elsewhere.
According to court documents and statements made in court, special agents from the FBI’s cybercrime squad in New Haven and the IRS have been investigating “phishing” emails that were sent to various school districts in Connecticut last year.
In March 2017, an employee of the Groton Public Schools received an email that appeared to be sent by another Groton school system employee. The email contained a request to send W-2 tax information for all employees of the school system. The recipient of the email responded by sending copies of the W-2 information for approximately 1,300 Groton Public Schools employees. After the W-2 information was emailed, approximately 100 suspicious Forms 1040 were filed electronically with the IRS in the names of victims of the Groton phishing scheme. The 100 tax returns claimed refunds totaling $491,737. Approximately three of the returns were processed, and $23,543 in fraudulently-obtained funds were electronically deposited into various bank accounts. The other returns were not processed because they were suspected of being fraudulent.
Lawal controlled or used certain email accounts involved in this phishing scheme. A co-conspirator of Lawal sent personal identifying information, including names and Social Security Numbers, of at least 10 employees to an email account that Lawal used. Lawal then sent the victims’ personal identifying information to another co-conspirator.
The investigation further revealed that in February 2017, in a related scheme, Sacred Heart Academy in Hamden was victimized by a phishing e-mail that requested W-2 forms for its employees. Approximately 103 employee W-2 forms were compromised as a result of phishing e-mail. The IRS confirmed that 33 victims had fraudulent tax returns filed electronically with the IRS, claiming refunds in the amount of $314,184. The returns were not processed because they were suspected of being fraudulent.
Lawal pleaded guilty to one count of conspiracy to commit wire fraud, an offense that carry a maximum term of imprisonment of 20 years. Judge Meyer scheduled sentencing for March 14, 2019.
Lawal entered the U.S. on a visitor’s visa on November 24, 2016, and failed to depart on his scheduled departure date of December 1, 2016. He has been detained since his arrest on May 9, 2018.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala.
U.S. Attorney Durham thanked the FBI and IRS in Atlanta, and the U.S. Attorney’s Office for the Northern District of Georgia, for their valuable assistance in this matter.
New York CPA Admits False Tax FilingRead the Press Release
NEWARK, N.J. – A certified public accountant from New York today admitted filing a tax return in his own name that contained materially false information, U.S. Attorney Craig Carpenito announced.
Christopher Miu, 58, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of subscribing to a tax return that he knew substantially understated his gross income.
According to documents filed in this case and statements made in court:
Between 2008 and 2014, Miu failed to file income tax returns own his own behalf. When he ultimately filed returns for those years, Miu substantially under-reported his gross income, leading to a tax loss to the United States of more than $550,000.
The count to which Miu pleaded guilty carries a maximum potential statutory penalty of three years in prison, and a fine of up to $100,000. Miu has also agreed to resolve his tax due and owing with the IRS. Sentencing is scheduled for April 25, 2019.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan R. Tafur, with the investigation leading to today’s guilty plea.
The government is represented by Senior Trial Counsel Andrew Leven of the Healthcare & Government Fraud Unit of the U.S. Attorney’s Office, District of New Jersey.
New Orleans Man Sentenced for Bank Robbery and Interstate Transportation of Stolen PropertyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that RONALD VANTRESS, JR., age 53, of New Orleans, was sentenced on Thursday, December 13, 2018, after pleading guilty to a three-count indictment charging bank robbery, interstate transportation of stolen property, and interstate transportation of a stolen motor vehicle.
Chief United States District Judge Nanette Jolivette Brown sentenced VANTRESS to 77 months of imprisonment, followed by 3 years of supervised release and a $300 special assessment fee.
According to the indictment, on March 21, 2018, VANTRESS robbed the Gulf Coast Bank and Trust, located at 201 North Carrollton Ave., New Orleans, Louisiana. After the robbery, VANTRESS also transported a stolen 2009 Toyota Camry, a stolen license plate, and other stolen property from New Orleans to Texas.
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 Jonathan L. Shih is in charge of the prosecution.
New Orleans Man Charged in Credit Card Fraud ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JEFFERY JOSEPH, age 24, a resident of New Orleans, was charged Friday, December 14, 2018 in a second superseding indictment with conspiracy to commit access device fraud and related offenses. He joins four other defendants already charged in this conspiracy, all of whom are from New Orleans: LAKISHA WILLIAMS, age 37, BRITTANY WHITE, age 32, KEYIRA GABLE, age 32, and TAMIKA STEVENS, age 47.
According to court documents, JOSEPH and the other defendants engaged in a scheme to obtain merchandise and cash from stores through fraud. The defendants obtained stolen credit and debit card information, encoded it onto cards, and then used that information to purchase items at stores. The defendants would then return the items at a different store of the same chain, but they would deceive store workers in order to have the chargeback credited to their own bank accounts. In order to perpetrate the scheme without being detected, JOSEPH and the other defendants took flights to commit the fraud in different states, including Florida, Tennessee, Ohio, Massachusetts, Colorado, Oregon, Washington and others. Records show that JOSEPH received fraudulent chargebacks from a variety of stores, including JCPenney, T.J.Maxx, Ross, Kay Jewelers, Zales, and others. Most recently, JOSEPH used a social security number that was stolen from a minor child to open a Verizon account in Baton Rouge.
If convicted, JOSEPH faces the following penalties. For conspiracy to commit access device fraud, he faces a maximum of five years in prison. For the unauthorized use of access devices and possessing fifteen or more unauthorized access devices, he faces a maximum of ten years in prison. For possession of access device-making equipment, JOSEPH faces a maximum of fifteen years in prison. Finally, JOSEPH is charged with aggravated identity theft, which mandates a two year prison sentence consecutive to any other sentence. JOSEPH may also be fined up to $250,000.00, or twice the gross gain or gross loss caused by this scheme.
U.S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the agencies that contributed to this indictment, which represents a coordinated effort of federal and state law enforcement authorities within the Louisiana Financial Crimes Task Force. The Task Force includes representatives from the U.S. Secret Service, U.S. Postal Inspection Service, Louisiana Attorney General’s Office, Jefferson Parish Sheriff’s Office, New Orleans Police Department, Covington Police Department, Hammond Police Department, Kenner Police Department, Louisiana State Police, Mandeville Police Department, Slidell Police Department, St. Bernard Parish Sheriff’s Office, St. John The Baptist Sheriff’s Office, St. Tammany Parish Sheriff’s Office, Tangipahoa Parish Sheriff’s Office, St. Tammany Parish District Attorney’s Office, Homeland Security Investigations, U.S. State Department, Internal Revenue Service, Social Security Administration-Office of Inspector General, and the Defense Criminal Investigative Service. U.S. Attorney Strasser also thanked the Jefferson Parish District Attorney’s Office for their assistance. Assistant United States Attorney Matthew R. Payne is in charge of the prosecution.
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New Haven Man Charged with Illegally Possessing Gun and AmmunitionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an indictment charging EDWARD LUGO, 37, of New Haven, with one count of possession of a firearm and ammunition by a convicted felon.
The indictment was returned on December 13, 2018. Lugo appeared today before U.S. Magistrate Judge Robert A. Richardson in Hartford and entered a plea of not guilty to the charge.
As alleged in the indictment, on September 19, 2018, Lugo possessed a 9mm Kel-Tec Model P-11 pistol and more than 100 rounds of assorted ammunition.
It is further alleged that Lugo’s criminal history includes felony convictions in Connecticut and New York for firearm, weapon, drug, larceny and possession of stolen property offenses.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
If convicted of the charge, Lugo faces a maximum term of imprisonment of 10 years.
Lugo has been detained since his arrest on September 19.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Statewide Narcotics Task Force, New Haven Police Department, and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case is being prosecuted by Assistant U.S. Attorney Margaret E. Maigret.
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 neighborhoods safer for everyone.
New Britain Man Charged with Possession of a Firearm and Ammunition as a Convicted FelonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Kelly D. Brady, Special Agent in Charge, ATF Boston Field Division, and Hartford Police Chief David Rosado today announced that a federal grand jury in Hartford returned an indictment yesterday charging JOHN ANDERSON, 37, of New Britain, with one count of possession of a firearm and ammunition by a convicted felon.
As alleged in the indictment, on October 11, 2018, Anderson possessed a Ruger, Model EC9S, 9mm pistol with an obliterated serial number, and six rounds of 9mm ammunition. Anderson’s criminal history includes state felony convictions for burglary in the third degree and assault in the second degree.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Anderson has been detained in state custody since his arrest by Hartford Police on October 11.
If convicted of the charge, Anderson faces a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Neenah Man Arrested on Federal Child Pornography ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on December 20, 2018, Alexander P. Bebris (age: 49) of Neenah, Wisconsin, was charged by a criminal complaint with distribution of child pornography, contrary to Title 18, United States Code, Section 2252A(a)(2)(A), and possession of child pornography, contrary to Title 18, United States Code, Section 2252A(a)(5)(B). He faces a mandatory minimum sentence of 5 years and up to 20 years of incarceration in federal prison.
According to the complaint and supporting affidavit, in September of 2018, Facebook notified the National Center for Missing and Exploited Children (NCMEC) that one of its users had sent images of child pornography via its messenger system to another Facebook user account. The Wisconsin Internet Crimes Against Children (ICAC) Taskforce launched an investigation and determined that the images were sent from an IP address in use at Bebris’s residence in Neenah. Investigators sought and obtained a search warrant for that residence.
On December 19, 2018, the search warrant was executed at Bebris’ residence. A preliminary forensic examination of the hard drive on Bebris’ computer revealed images of pornography involving children ranging in age from approximately one to ten years old.
This case was investigated by the Wisconsin Department of Justice’s ICAC Task Force, the Wisconsin Department of Justice, Division of Criminal Investigation, and the Winnebago County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
A criminal complaint is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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For further information contact:
Public Information Officer Dean Puschnig (414) 297-1700
Mount Vernon Man Charged with August 2018 MurderRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Shawn Harris, Commissioner of the Mount Vernon Police Department, announced the unsealing of a federal indictment charging BARRY JOHNSON, 26, with aiding and abetting the murder of David DeGrace, 36, on August 26, 2018, in furtherance of a marijuana distribution conspiracy. JOHNSON was arrested this morning in Mount Vernon and will be presented this afternoon before United States Magistrate Judge Lisa M. Smith.
U.S. Attorney Geoffrey S. Berman said: “Last summer, David DeGrace was shot dead, the victim of senseless drug-related violence. As alleged, Barry Johnson aided and abetted that murder. Thanks to the work of our remarkable law enforcement partners, Johnson now stands charged in federal court for his role in this terrible crime.”
FBI Assistant Director William F. Sweeney Jr. said: “In addition to the scourge of addiction, the drug trade brings violence and fear to our communities. As alleged, Barry Johnson aided and abetted the death of David DeGrace for no other reason than to further that drug trade. The FBI and our partners are committed to eradicating drugs and associated criminal activity from our streets.”
Commissioner Shawn Harris said: “I anticipate the arrest and prosecution of Barry Johnson will bring some closure to the family of David DeGrace. This case is another example of a successful inter-agency investigation that lead to the arrest of a violent offender. I express thanks to U.S. Attorney Geoffrey S. Berman and FBI Assistant Director William F. Sweeney Jr. for their continued support to hold those accountable who engage in violent criminal activity. The men and women of the FBI Westchester County Safe Streets Task Force and the Mount Vernon Police Department are endlessly working together to make Mount Vernon a safer city.”
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According to the allegations in the Indictment[1]:
On or about August 26, 2018, JOHNSON aided and abetted the murder of David DeGrace in Mount Vernon, New York, in furtherance of a marijuana distribution conspiracy.
JOHNSON is charged with one count of aiding and abetting the murder of DeGrace through the use of a firearm during and in relation to a narcotics trafficking offense, in violation of 18 U.S.C. §§ 924(j) and 2. This charge carries a maximum penalty of death or life in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI Westchester County Safe Streets Task Force, which comprises agents and task force officers from the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Probation Office, New York State Police, New York City Police Department, Mount Vernon Police Department, Yonkers Police Department, Greenburgh Police Department, Peekskill Police Department, Westchester County Police Department, and Westchester County District Attorney’s Office. Mr. Berman also thanked the Mount Vernon Police Department for its assistance in this matter.
This case is being handled by the Office’s White Plains Division and Violent and Organized Crime Unit. Assistant United States Attorneys Christopher Brumwell and Celia V. Cohen are in charge of the prosecution.
[1] As the introductory phase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Monongalia County man sentenced for drug and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Isaiah Davis, of Morgantown, West Virginia, was sentenced today to 60 months incarceration for drug and firearms charges, United States Attorney Bill Powell announced.
Davis, age 27, pled guilty to one count of “Possession with Intent to Distribute Cocaine Hydrochloride” and one count of “Use of a Firearm During and in Relation to a Drug Offense” in August 2018. Davis admitted to possessing and distributing cocaine in Monongalia County in October 2017. Davis, who was previously convicted of a felony, also admitted to having a .40 caliber pistol, which used during a drug offense, in January of 2018 in Monongalia County.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Morgantown Police Department investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Mississippi Resident Sentenced for Unlawful Use of Merchant Mariner CredentialsRead the Press Release
NEW ORLEANS, LOUISIANA – JEFFREY M. DESALVO, age 35, a resident of Picayune, Mississippi, was sentenced Thursday, December 13, 2018 after previously pleading guilty to three counts of unlawful use of a merchant mariner license in violation of Title 18, United States Code, Section 2197.
U.S. District Judge Nanette Jolivette Brown sentenced DESALVO to serve 24 months in prison and ordered him to pay a $300 special assessment.
According to court documents, on February 4, 2015, DESALVO entered into a settlement with the U.S. Coast Guard wherein he agreed to surrender his merchant mariner credentials in lieu of having them permanently revoked. In connection with the settlement agreement, DESALVO submitted an affidavit to the U.S. Coast Guard in which he stated that his credentials had been destroyed, when, in truth and fact, his credentials had not been destroyed. In addition to the foregoing, DESALVO illegally used his suspended credentials to obtain work as a boat captain for four different companies that operated on the Mississippi River.
U.S. Attorney Strasser praised the work of the United States Coast Guard in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
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Microcap Company CEO Sentenced to 52 Months in Prison for Securities FraudRead the Press Release
TRENTON, N.J. – The chief executive officer of a publicly traded microcap company was sentenced today to 52 months in prison for orchestrating a multimillion-dollar securities fraud scheme using false reports with the U.S. Securities and Exchange Commission, U.S. Attorney Craig Carpenito announced.
Cary Lee Peterson, 38, of Phoenix, Arizona, was previously found guilty of all three counts of an indictment charging him with two counts of false certification in SEC filings and one count of securities fraud. He was convicted following a two-week trial before U.S. District Judge Anne E. Thompson, who imposed the sentence today in Trenton federal court.
According to documents filed in this case and evidence presented at trial:
Peterson, as CEO of RVPlus Inc., filed numerous false reports with the SEC, including:
- On Aug. 21, 2012, Peterson falsely certified on SEC Form 8-K that RVPlus had entered into a contract worth $1.8 billion with the Ministry of Environment for Katsina State within the Federal Republic of Nigeria to provide unspecified green energy products and services.
- On Nov. 16, 2013, Peterson falsely certified on SEC Form 8-K that RVPlus had entered into a contract worth $90 million with the Commission of the Foreign Affairs to the Senate for the Republic of Haiti.
- On Dec. 21, 2012, Peterson falsely certified on Form 10-Q that RVPlus held $8,653,846 in short-term accounts receivable for services rendered under the Nigeria agreement, despite prior warnings from RVPlus’ auditors that reporting these receivables as revenue was improper.
- On Dec. 27, 2012, Peterson falsely certified on SEC Form 8-K that RVPlus had entered into a contract worth $10.5 million with the Federal Ministry of Planning & Economic Affairs for the Republic of Liberia.
- On March 28, 2013, Peterson falsely certified on SEC Form 10-Q that RVPlus held $17,590,837 in short-term accounts receivable from, among other sources, the Haiti and Liberia agreements.
The SEC suspended trading in RVPlus on July 19, 2013, due to questions concerning the accuracy of RVPlus’ periodic financial filings, including reported accounts receivable, assets, and operations.
Peterson also claimed that ECCO2 Corp., a not-for-profit owned by Peterson was an “affiliate organization” of the U.N. Convention on Climate Change. Peterson claimed that “[t]his status held with the sectors of the United Nations opens many windows of opportunity to over $100 billion in financial aid to fund ECCO2 projects.” ECCO2 was never an affiliate of the U.N. Convention on Climate Change. In fact, the U.N. wrote to Peterson on two separate occasions demanding that ECCO2 stop claiming that it was.
In addition to the prison term, Judge Thompson sentenced Peterson to three years of supervised release and ordered him to pay restitution of $250,167.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked FBI special agents under the direction of Special Agent in Charge John F. Bennett in San Francisco for their assistance with Peterson’s arrest, and the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Regional Director Marc P. Berger and Senior Associate Regional Director Sanjay Wadhwa, for its assistance.
The government is represented by Assistant U.S. Attorney Ari Fontecchio of the U.S. Attorney’s Office Criminal Division and Executive Assistant U.S. Attorney Zach Intrater.
Miami Man Sentenced to Four Years’ Imprisonment for Participation in Apple Pay Fraud SchemeRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Max Johnny Wesley (23, Miami) to four years in federal prison for access device (credit card) fraud, aggravated identity theft, and conspiracy to commit wire fraud. As part of his sentence, the court also entered a money judgment in the amount of $272,842.88, the proceeds of Wesley’s participation in the fraud scheme.
Wesley had pleaded guilty on July 16, 2018.
According to court documents, Wesley and others fraudulently obtained access to at least 477 credit card accounts and linked those accounts to the Apple Pay application on their iPhones. Then, using their iPhones, Wesley and the others were able to make purchases with their victims’ credit card accounts, all without having to present actual credit cards to retailers. The group made more than $1.5 million in fraudulent purchases. Of that total, the court found Wesley responsible for $272,842.88 in losses associated with more than 700 fraudulent transactions.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
Mendon, Michigan Man Sentenced to 13 Months in Prison for Crop Insurance FraudRead the Press Release
GRAND RAPIDS, MICHIGAN - U.S. Attorney Andrew Birge announced today that Douglas Edward Diekman, 55, of Mendon, Michigan, was sentenced to 13 months in federal prison for committing crop insurance fraud. He was also ordered to serve two years of supervised release and pay $488,432.86 in restitution. U.S District Judge Paul Maloney imposed the sentence.
Diekman pled guilty to conspiring with Michael Stamp of Stamp Farms to defraud the federal crop insurance program. Diekman admitted that he illegally obtained crop insurance for approximately 1,000 acres of farmland he rented to Stamp Farms. Diekman did not farm the land and had no ownership interest in the crops. Nevertheless, he falsely certified that he had a 100% ownership interest in the crops and falsely certified that he had crop losses. When Stamp Farms declared bankruptcy and was unable to pay rent for the farmland, Diekman kept a crop insurance indemnity payment to which he was not entitled.
U.S. Attorney Birge said, "This office will continue to vigorously prosecute people like Mr. Diekman who defraud taxpayer-funded programs such as the federal crop insurance program."
Manny Muriel, Special Agent in Charge of the Detroit's IRS Criminal Investigation, stated, "IRS Special Agents and our Federal Law Enforcement partners will continue to work tirelessly to bring to justice those who attempt to defraud programs that are backed by taxpayer funds. We will not tolerate those cheating the system in efforts to deepen their own pockets at everyone else's expense."
The case was investigated by the United States Department of Agriculture, Office of Inspector General, with assistance from the Risk Management Agency’s Compliance Investigators, and the Internal Revenue Service-Criminal Investigation Division. Clay Stiffler handled the prosecution.
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Men from Cleveland, Canton and Garfield Heights indicted on firearms chargesRead the Press Release
Three people were indicted in federal court for firearms crimes.
Riccardo D. Harris, 35, of Canton, was charged being a felon in possession of a firearm and ammunition. Harris had a Smith & Wesson .40-caliber pistol and ammunition on Oct. 19, despite a previous conviction for aggravated robbery, according to the indictment.
Damien Loveless, 39, of Cleveland, was charged being a felon in possession of a firearm and ammunition. Loveless had a Romarm/Cugir 7.62 x 39 mm rifle and ammunition, on Nov. 2, despite previous convictions for aggravated arson, attempted aggravated robbery, drug trafficking, assault on a police officer, firearms convictions and other crimes, according to the indictment.
Karl Bates, 21, of Garfield Heights, was charged being a felon in possession of a firearm and ammunition. Bates possessed a loaded Colt .38-caliber revolver on Nov. 14, despite previous convictions for felonious assault, drug trafficking and drug possession, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Canton Police Department. They are being prosecuted by Assistant U.S. Attorneys Aaron P. Howell, Margaret Kane and Kathryn Andrachik.
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.
Massachusetts Man Sentenced to 5 Years in Prison for Paying Minor to Engage in Sexual Activity over SkypeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that WILLIAM GAUVIN, 43, of Andover, Massachusetts, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 60 months of imprisonment, followed by 10 years of supervised release, for paying a minor to engage in sexual activity over Skype.
According to court documents and statements made in court, between approximately October 2016 and March 2017, Gauvin, using the name “Will Wiggins,” solicited a 17-year-old boy in Connecticut to engage in sexually explicit conduct over Skype. In exchange for the minor victim transmitting visual depictions of sexually explicit conduct to Gauvin, Gauvin paid the minor victim more than $3,000 using PayPal. Gauvin also asked the minor victim to persuade his brother, who was 15, to engage in sexually explicit conduct in exchange for money.
Gauvin resided in Worcester, Massachusetts, at the time of the criminal conduct.
The investigation revealed that Gauvin also paid other minor victims to engage in sexually explicit conduct online.
GAUVIN was arrested on a federal criminal complaint on November 1, 2017. On September 25, 2018, he pleaded guilty to one count of receipt of child pornography.
Gauvin, who is released on a $100,000 bond, was ordered to report to prison on February 15, 2019.
This matter was investigated by Homeland Security Investigations (HSI) and the Connecticut State Police, with the assistance of the Worcester Police Department. The case was prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Manchester Man Pleads Guilty to Child Exploitation OffenseRead the Press Release
John H. Durham. United States Attorney for the District of Connecticut, announced that LUQMAN GOTTI, formerly known as Timothy Pennington, 37, of Manchester, waived his right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to a child pornography offense.
According to court documents and statements made in court, in June 2017, Gotti and a 13-year-old boy were communicating through the Kik messaging application. After the boy informed Gotti that he was 14 years old, Gotti asked the boy for pictures and sent the boy a sexually explicit image of himself, intending that the boy send Gotti a sexually explicit picture in return. The boy then sent sexually explicit pictures of himself to Gotti. Later in the conversation, Gotti told the boy “I already went to jail over a 14 year old not trying to go through that again.” Gotti then asked the boy for more sexually explicit pictures. In response, the boy sent GOTTI another sexually explicit photograph and video of himself.
Gotti pleaded guilty to one count of accessing with intent to view child pornography, an offense that carries a maximum term of imprisonment of 10 years. However, based on Gotti’s prior felony conviction in the state of Connecticut for second degree sexual assault of a 14-year-old girl, the government’s position is that Gotti faces enhanced penalties of a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of 20 years.
Gotti’s name in 2000, when he sustained the sexual assault conviction, was Timothy Pennington. Gotti legally changed his name from Timothy Pennington.
Gotti was arrested on a federal criminal complaint on April 25, 2018. He has been in state custody on related charges since November 14, 2017.
A sentencing date has not been scheduled.
This matter is being investigated by the Federal Bureau of Investigation and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorneys Neeraj N. Patel and Pilar Gonzalez
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Manchester Man Pleads Guilty to Conspiracy to Commit Bank FraudRead the Press Release
CONCORD, N.H. - Angel Forteza-Concepcion, 19, of Manchester, pleaded guilty to conspiracy to commit bank fraud, announced United States Attorney Scott W. Murray.
According to court documents and statements made in court, from November 2017 to February 2018, Forteza-Concepcion and Ariel Mendoza, a citizen of the Dominican Republic, knowingly deposited stolen checks and money orders totaling more than $7,100 into accounts at four federally insured banks. They then obtained proceeds from the stolen checks and money orders by using debit cards assigned to the accounts to withdraw cash at ATMs and perform debit card transactions.
On December 13, 2018, Mendoza pleaded guilty to the conspiracy charge and theft of mail. He will be sentenced on March 27, 2019.
Forteza-Concepcion will be sentenced in on March 27, 2019.
“The prompt response of the law enforcement agents who contributed to the investigation of this case prevented the loss of more money and ensured that other people did not become victims of the conspiracy,” said U.S. Attorney Murray. “I hope this prosecution deters others from engaging in this type of serious criminal conduct.”
“The U.S. Postal Inspection Service will continue to conduct investigations, alongside our local law enforcement partners, that seek prosecution of those who compromise the personal information of our customers and the integrity the U.S. Mail,” said the U.S. Postal Inspection Service’s Inspector in Charge, Joseph W. Cronin of the Boston Division. “We will thoroughly investigate cases such as this as these types of crimes can create substantial losses for victims.”
The United States Postal Inspection Service investigated the case, with assistance from the Police Departments in Manchester and Salem, New Hampshire, and Lawrence, Massachusetts. The case is being prosecuted by Assistant United States Attorney Robert M. Kinsella.
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Man Sentenced to Prison for Conspiracy to Distribute HeroinRead the Press Release
HAMMOND- Eleazar Sosa, 35, was sentenced by U.S. District Court Judge Philip P. Simon after pleading guilty to conspiracy to possess with intent to distribute and to distribute one kilogram or more of heroin, announced U.S. Attorney Kirsch.
Sosa was sentenced to 70 months in prison.
According to documents in the case, Sosa was involved in a conspiracy to possess with intent to distribute and to distribute one kilogram or more of heroin along with codefendants Rafael Ramirez, Maria Guzman, and Cesar Izaguirre, each of whom has already been sentenced for their respective roles in this drug conspiracy. Sosa’s role in the conspiracy included picking up and delivering drugs around the country at the behest of Rafael Ramirez. At sentencing, Sosa was held responsible for involvement in the planned distribution of between 3 and 10 kilograms of heroin as relevant conduct for his offense.
This case was investigated by the Drug Enforcement Administration. This case was prosecuted by Northern District of Indiana Assistant United States Attorney Jennifer Chang.
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Man Charged in White Plains Federal Court with Unlawfully Possessing Firearm and Ammunition in Connection with Shots Fired in Downtown New RochelleRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Joseph F. Schaller, Commissioner of the New Rochelle Police Department (“NRPD”), announced today a Complaint charging JEFFREY STOVER, 46, with possessing a firearm and ammunition after having been convicted of a felony. The defendant was arrested today and presented in White Plains federal court before United States Magistrate Judge Lisa Margaret Smith.
U.S. Attorney Geoffrey S. Berman said: “As alleged, the defendant unlawfully possessed and discharged a firearm, endangering the lives of many in our community. Thanks to the FBI, the New Rochelle Police Department, and the New York State Department of Corrections and Community Supervision, the defendant is in custody and facing federal criminal charges.”
FBI Assistant Director William F. Sweeney Jr. said: “For a convicted felon, even possessing a firearm or ammunition is a felony – and as alleged, Stover not only was in possession of a gun, he discharged it on a public street, showing reckless disregard for public safety. As today’s arrest shows, the FBI and our law enforcement partners are committed to ensuring the safety of our communities.”
NRPD Commissioner Joseph F. Schaller said: “This is yet another example of local, State, and federal law enforcement agencies working together to achieve positive results in removing alleged dangerous felons from our streets and enhancing the safety and quality of life in our community.”
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According to the allegations in the Complaint[1]:
On or about December 15, 2018 and December 20, 2018, STOVER, after having been convicted of a felony, possessed ammunition and a firearm, which STOVER discharged on or about December 15, 2018 in downtown New Rochelle. STOVER is charged with two counts of being a felon in possession of ammunition and/or a firearm in violation of 18 U.S.C. § 922(g)(1). These charges carry a maximum penalty of 10 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI Westchester County Safe Streets Task Force, which comprises agents and task force officers from the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Probation Office, New York State Police, New York City Police Department, Mount Vernon Police Department, Yonkers Police Department, Greenburgh Police Department, Peekskill Police Department, New Rochelle Police Department, Westchester County Police Department, and Westchester County District Attorney’s Office. Mr. Berman also thanked the New York State Department of Corrections and Community Supervision for its assistance in this matter.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Jim Ligtenberg is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Machesney Park Man Arrested on Child Pornography ChargeRead the Press Release
ROCKFORD — A Machesney Park resident was arrested Wednesday on a charge of possessing child pornography.
JAMES UMBAUGH, 53, was charged in a federal criminal complaint. According to the complaint, a federal search warrant was executed by federal law enforcement officers on Dec. 18, 2018, at Umbaugh’s residence. The complaint alleges that upon arriving at the residence officers found Umbaugh seated before a computer screen connected to a computer, and that located on the computer were images and videos of child pornography, including prepubescent minors engaged in sexually explicit conduct.
Possessing child pornography carries a minimum mandatory sentence of ten years in prison and up to a maximum of 20 years, and a fine of up to $250,000. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines. Umbaugh appeared yesterday before U.S. Magistrate Judge Iain D. Johnston and is in custody pending a hearing on pre-trial release.
The public is reminded that a complaint is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Lexington Man Sentenced to 84 Months for Trafficking in FentanylRead the Press Release
LEXINGTON, Ky. — Byron White, 38, of Lexington, was sentenced yesterday to 84 months in federal prison, by Chief United States District Judge Karen K. Caldwell, for conspiracy to distribute Fentanyl.
White previously admitted that he conspired with another person to distribute fentanyl in Lexington, between November 1, 2017 and March 18, 2018. White further admitted that he distributed heroin and more than 40 grams of fentanyl, in Lexington, during that time. White has a prior felony conviction for trafficking in cocaine, from Fayette County. White pleaded guilty to the charges in August.
Under federal law, White must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for eight years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge of the FBI; and Richard Sanders, Commissioner of the Kentucky State Police jointly made the announcement.
The investigation was conducted by the FBI and KSP. The United States was represented by Assistant United States Attorney Roger W. West.
Las Vegas Man Convicted of Two Jewelry Store Armed RobberiesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was convicted Wednesday by a federal jury of all criminal charges for his role in planning and participating in the armed robbery of two jewelry stores in the Las Vegas community in January 2017, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Brian Wright, 34, was found guilty of two counts of conspiracy to interference with commerce by robbery, two counts of interference with commerce by robbery, and two counts of brandishing a firearm during and in relation to a crime of violence. United States District Judge Jennifer Dorsey scheduled a sentencing hearing for March 18, 2019. Wright, who represented himself at trial, faces a maximum statutory penalty of 20 years in prison and a fine of $250,000 on each robbery count. He faces a mandatory minimum of seven years in prison and a fine of $250,000 on the first firearm count to run consecutive to all other counts and a mandatory minimum of 25 years in prison on the subsequent firearm count to run consecutive to all other counts.
During the six-day jury trial, prosecutors introduced evidence proving that Wright planned and recruited multiple gunmen and getaway drivers to rob the Jared Gallery of Jewelry, located at 2110 N. Rainbow Blvd., on January 3, 2017, and the MJ Christensen jewelry store, located at 8980 W. Charleston Blvd., on January 13, 2017. During the Jared’s robbery, Wright provided a firearm to co-conspirator Deandre Nakita Brown to use during the robbery. Brown and co-conspirator Aquail Harris entered the Jared pointing their firearms towards employees and customers. One of the store customers was a father with his one and three-year old children in the store. The gunmen disarmed the security guard and stole over $850,000 worth of jewelry and watches. They delivered the stolen merchandise to a separate getaway vehicle driven by co-conspirators Kendareen Hudson and Safiyyah Christopher. Wright utilized police scanner apps to monitor police radio traffic after the robbery and relayed this information to his co-conspirators. However, Las Vegas Metropolitan Police Department officers found the females’ vehicle with the stolen merchandise. They arrested the two females and recovered all of the jewelry.
Ten days later, on January 13, 2017, Wright planned and participated in the robbery of the MJ Christensen jewelry store. Again, Wright recruited others to help him carry out the robbery. He recruited co-conspirator Carl Whitley to procure a getaway car and driver and Brown to serve as a gunman. Wright obtained Whitley’s gun and provided it to Brown to use in the robbery. They stole over $700,000 worth of jewelry and watches. Wright again utilized police scanner apps to monitor police radio traffic after the robbery and relayed this information to his co-conspirators. An off-duty officer outside the jewelry store, however, observed the robber get into a vehicle driven by co-conspirator Randy Jerousek and followed this car to the Suncoast Casino. The vehicle was quickly located parked at the casino with the stolen merchandise in it.
Co-conspirators Harris, Christopher, Hudson, Jerousek, Whitley, and Brown all previously pleaded guilty for their involvement in the armed robberies. Sentencing for Brown is set for February 25, 2019, sentencing for Whitley is set for January 22, 2019, sentencing for Jerousek is set for February 7, 2019, and sentencing for Christopher is set for January 14, 2019.
Wright was convicted earlier this year of Assault on a Federal Officer in violation of Title 18, United States Code, Section 111(a)(1) and (b). A jury found Wright guilty of that offense after hearing evidence that Wright attempted to flee his residence while law enforcement was attempting to execute a search warrant. In his haste to flee, Wright rammed his car into a law enforcement vehicle that a Task Force Officer was standing next two, nearly striking the Officer. Sentencing is set in that case on January 15, 2019. Wright also represented himself during that trial.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Lisa Cartier-Giroux, Alexandra Michael, and Nadia Ahmed are prosecuting the case.
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Lake Charles woman sentenced to 10 years in prison for role in kidnapping Texas man after drug dealRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that Sarah Paxton, 25, of Lake Charles, was sentenced on Monday by U.S. District Judge Donald E. Walter, to 120 months in prison and three years of supervised release for her role in kidnapping a Texas man after a failed drug deal.
According to the guilty plea, Paxton, Justin Fry, 35, and James Coleman, 34, also of Lake Charles, traveled to Liberty, Texas, on April 8, 2018 to buy methamphetamine from a contact. In order to complete the sale, the contact rode with the defendants to Houston to meet a second contact who had the methamphetamine. Instead of selling the drugs, the Houston contact robbed Fry and then sped away. The defendants believed the Liberty contact had knowledge of the fact that the Houston supplier intended to rob Fry and proceeded to tie him up and beat him, while Paxton videoed it on her cell phone. In an attempt to get the victim to pay back the $1,300, Fry and Coleman repeatedly threatened to kill him. After making several phone calls, the victim was unable to get the money.
The victim became confident that Coleman, Fry and Paxton were going to kill him, so he jumped from the moving car, rolling down an embankment. Coleman and Fry retrieved the bloodied victim, beat him more, duct taped his mouth, and locked him in the trunk of the vehicle. The victim was in the trunk for approximately four to five hours as the defendants drove around Houston and then decided to return to Vinton. When they stopped in Vinton, the victim escaped from the trunk and called law enforcement. The defendants’ cell phones were searched and conversations about the drug deal were found on Fry’s cell phone; the videos of the beatings were found on Paxton’s cell phone.
Justin Fry was sentenced to 292 months in prison, and James Coleman was sentenced to 242 months in prison on November 27, 2018 for interstate kidnapping. They were both also sentenced to five years of supervised release.
Homeland Security Investigations and the Calcasieu Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney John Luke Walker prosecuted the case.
KC, St. Louis Area Residents Indicted for $8.5 Million Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – A dozen residents in the Kansas City, Mo., and St. Louis, Mo., areas have been indicted by a federal grand jury for their roles in an $8.5 million drug-trafficking conspiracy that distributed more than 1,000 pounds of methamphetamine over two years.
Trevor Scott Sparks, 29, Gerald L. Ginnings, 38, Gloria May Jones, 29, Vicente Araujo, 22, Leslie Ladon Walker, 31, and Paul J. Kibodeaux, 35, all of Kansas City, Mo.; Markus Michael A. Patterson, 36, of Grandview, Mo.; David Robert Richards II, 31, of Louisburg, Kan.; Christian Douglas Hansen, 39, of St. Louis, Mo.; and Stephanie Thurmond, 28, Leeanna Michelle Schroeder, 25, and Adam Joseph Mainieri, 30, all of Winfield, Mo.; were charged in a four-count superseding indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, Dec. 12, 2018. That indictment was unsealed and made public upon the arrests of several defendants.
The federal indictment alleges that 11 of the defendants (with the exception of Sparks) participated in a conspiracy to distribute methamphetamine from Jan. 1, 2017, to Dec. 12, 2018. According to the indictment, conspirators received $8,508,500 in exchange for the unlawful distribution of more than 1,001 pounds (455 kilograms) of methamphetamine, based on an average street price of $8,500 per pound of methamphetamine.
Sparks is charged with engaging in a continuing criminal enterprise that involved the distribution of methamphetamine. According to the indictment, Sparks was the principal leader of the criminal enterprise and obtained substantial income from the criminal enterprise.
All 12 of the defendants are also charged with participating in a money-laundering conspiracy during that time to use drug sale proceeds to promote the drug-trafficking conspiracy and to conceal the proceeds of that drug-trafficking conspiracy.
Eleven of the defendants (with the exception of Kibodeaux) are charged together with possessing firearms in furtherance of violent crimes and drug-trafficking crimes.
Ginnings, Sparks, Patterson, Jones, Hansen and Mainieri also are charged together in one count of being felons in possession of firearms and ammunition.
The indictment also contains a forfeiture allegation, which would require the defendants to forfeit to the government any property obtained from the proceeds of the drug-trafficking conspiracy, including a money judgment of $8,508,500.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Kansas City, Mo., Police Department, the Jackson County, Mo., Sheriff’s Department, the FBI and the Jackson County Drug Task Force.
Justice Department Seeks to Denaturalize Illinois Man Who Allegedly Concealed Service in Military Unit that Perpetrated Srebrenica MassacreRead the Press Release
The Justice Department today filed a denaturalization lawsuit against Nedjo Milosevic, a native of the former Yugoslavia, who, according to the Department’s complaint, was a member of one of the military units responsible for the Srebrenica massacre—the largest mass atrocity in Europe since the Holocaust. The complaint alleges that Milosevic concealed his military service in order to enter the United States as a refugee, and continued to conceal it throughout his naturalization proceedings. The civil complaint was filed in federal court in the Northern District of Illinois.
“The naturalization process is a shining example of the United States’ generosity to the rest of the world, but it is not available to war criminals,” said Principal Deputy Associate Attorney General Jesse Panuccio. “The United States will use every available law enforcement tool to combat human rights abuses like these, including the civil denaturalization process.”
“Nedjo Milosevic tried to cheat our nation’s immigration system by lying about his military role during the Bosnian War,” said U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Executive Associate Director Derek Benner. “This denaturalization filing demonstrates the U.S. government’s enduring commitment to identify and bring to justice those who are suspected to have taken part in human rights violations in any part of the world. The United States will not serve as a safe haven for those who would commit such atrocities.”
According to the complaint, Milosevic, 53, a resident of Harwood Heights, Illinois, was a member of the Military Police Company of the Zvornik Brigade of the Army of the Serb Republic—the military arm of an entity within Bosnia controlled by ethnic Serbs. The Zvornik Brigade, including the Military Police Company, were active during the Srebrenica massacre during which, over the course of several days in July 1995, approximately 8,000 Bosnian Muslim men and boys were systematically killed and more than 30,000 women, children, and elderly were forcibly separated and expelled from the region. The complaint alleges that Milosevic was deployed in the field during the Srebrenica massacre.
Before his military service had come to light, Milosevic requested and received refugee status in the United States. The complaint alleges that Milosevic concealed and affirmatively misrepresented his military service in order to obtain immigration benefits, including naturalization. The complaint also alleges that Milosevic falsely stated that he was living in Serbia, rather than Bosnia, in order to qualify for refugee status.
“The United States is committed to combating human rights abuses,” said U.S. Attorney John R. Lausch, Jr. of the Northern District of Illinois. “We will not allow our country to be a safe haven for anyone who has participated in or helped perpetrate such atrocities in any capacity. Regardless of how long ago, or how far away, it will never be tolerated.”
This civil denaturalization case follows the criminal conviction of a member of the Army of the Serb Republic for making materially false statements on his application for refugee status, which also involved concealment of service in a military unit connected to the Srebrenica massacre, as well as civil denaturalization actions against alleged members of the Army of Bosnia and Herzegovina, convicted in Bosnia of murdering civilians and prisoners of war during the 1990s Balkans conflict, and an alleged member of the Croatian Defense Council, who participated in extrajudicial killings during the same conflict.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Chicago and supported by the ICE Human Rights Violator and War Crimes Center and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS), with consultation and support from ICE’s Office of the Principal Legal Advisor (OPLA) Human Rights Law Section and Chicago Office of Chief Counsel, and the Justice Department’s Human Rights and Special Prosecutions Section. The case is being prosecuted by Counsel for National Security Aaron Petty of OIL-DCS’s National Security and Affirmative Litigation Unit with assistance from the U.S. Attorney’s Office for the Northern District of Illinois.
The claims made in the complaint are allegations only, and there have been no determinations of liability.
Members of the public who have information about foreign nationals or naturalized U.S. citizens suspected of engaging in human rights abuses or war crimes are encouraged to contact U.S. law enforcement through the DHS tip line at 1-866-DHS-2-ICE or to complete its online tip form at www.ice.gov/exec/forms/hsi-tips/tips.asp, or through the Justice Department’s Human Rights and Special Prosecutions Section at [email protected] or 1-800-813-5863. Callers may remain anonymous.
Jury Convicts Lake Worth Resident of Sex Trafficking and ObstructionRead the Press Release
Today, a West Palm Beach federal jury convicted a Lake Worth resident of sex trafficking and obstruction of a sex trafficking investigation.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, David Aronberg, State Attorney for Palm Beach County, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, (FBI), Miami Field Office and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO) made the announcement.
Alston Orlando Leroy Williams, 42, of Lake Worth, Florida, was convicted at trial of two counts of sex trafficking of a minor in violation of Title 18, United States Code, Sections 1591(a)(1) and (b)(2), three counts of sex trafficking by force, fraud or coercion in violation of Title 18, United States Code, Sections 1591(a)(1) and (b)(1), and one count of obstructing a human trafficking investigation, in violation of Title 18, United States Code, Section 1591(d) (Case No. 18-CR-80053). The sentencing hearing, to be held before U.S. District Court Judge Robin L. Rosenberg, will be scheduled at a later date. At sentencing, Williams faces a mandatory minimum sentence of 15 years in prison and a combined statutory maximum sentence of life in prison.
According to evidence and testimony presented at trial, from 2008 through 2017, Williams trafficked multiple women, including two juveniles, for commercial sex throughout Florida. Williams had the women live at his homes and travel to hotels and other locations to meet adult men and engage in sexual acts for money. Williams used force, violence and coercion to traffic the women and kept all of the money earned by the victims. He was arrested on November 29, 2017 on related state charges, before being charged and convicted federally.
U.S. Attorney Fajardo Orshan commended the investigation efforts of the FBI, PBSO, and the Palm Beach County Human Trafficking Task Force in this matter. Mrs. Fajardo Orshan thanked Palm Beach County State Attorney Dave Aronberg for the 15th Judicial Circuit and his staff for their assistance with this investigation. This case is being prosecuted by Assistant U.S. Attorney Gregory Schiller and Special Assistant U.S. Attorney Justin Hoover.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Judge Sentences McKeesport Drug Dealer to 9 Years in Federal PrisonRead the Press Release
PITTSBURGH, PA - A resident of McKeesport, Pennsylvania, has been sentenced in federal court to nine years’ in prison, followed by six years’ supervised release, on his conviction of conspiracy to distribute narcotics, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Cecil Shields, 41, of McKeesport.
According to information presented to the court at the time of the guilty plea hearing, Shields conspired with Elliot Page, Skyler Carter, and 18 other individuals, between March and June of 2017, to distribute fentanyl, heroin, cocaine, and crack cocaine in the Clairton, Pennsylvania area. Shields was held personally responsible for the distribution of more than 160 grams of fentanyl, purchased from his codefendant Elliott Page. At the time of his arrest in June 2017, Shields was in possession of more than $5,000 and 270 "stamp bags" of fentanyl.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Jefferson Man Sentenced to 97 Months in Prison after Previously Pleading Guilty to Receipt of Child PornographyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DONALD TROSCLAIR, age 57, a resident of Jefferson, Louisiana, was sentenced to 97 months in prison and 5 five years of supervised release after his term of imprisonment, by United States District Judge Martin L.C. Feldman after previously pleading guilty to receiving images and videos depicting the sexual exploitation of children, in violation of 18 U.S.C. ' 2252(a)(2). TROSCLAIR was also ordered to pay restitution in the amount of $5,000 and register as a sex offender.
According to court documents, Special Agents with the Federal Bureau of Investigation (“FBI”) determined that TROSCLAIR was accessing a forum located on the internet whose singular purpose was to act as a child pornography bulletin board and website dedicated to the advertisement and distribution of child pornography and the discussion of matters pertinent to the sexual abuse of children, including the safety and security of individuals who seek to sexually exploit children online. Law enforcement officials executed a search warrant at TROSCLAIR’s residence on February 28, 2018, and seized several electronic items including a laptop computer, a desktop computer, an external hard drive, and several discs that were determined to contain images and videos depicting the sexual victimization of children.
The Federal Bureau of Investigation then conducted a forensic review of the seized devices and determined that TROSCLAIR had used the devices to search for, download, and save approximately 11,175 images and 6 videos of child pornography between April 2011 and February 2018. TROSCLAIR stored the images and videos in folders he created on his computers, external hard drive, and loose storage media, to catalogue and organize the files. The materials possessed by TROSCLAIR were of prepubescent children as young as less than three (3)-years-old and depicted the child victims engaging in “sexually explicit conduct,” as defined in 18 U.S.C. § 2256.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and its Violent Crimes Against Children Task Force, including representatives from the Kenner Police Department, Jefferson Parish Sheriff’s Office, and Louisiana State Police. The case was prosecuted by Assistant United States Attorney Jordan Ginsberg.
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Inmate at FCI-Berlin Sentenced to 27 Months for Assaulting Fellow InmateRead the Press Release
CONCORD, N.H. – United States Attorney Scott W. Murray announced today that Shakur Brownstein, an inmate at the Federal Correctional Institution FCI-Berlin, was sentenced to 27 months in prison for assaulting another inmate.
According to court documents and statements made in court, on May 22, 2018, Brownstein was walking behind another inmate in the Blue Corridor of FCI-Berlin when Brownstein ran up and struck the inmate from behind. Brownstein fractured the jaw of the other inmate, who required numerous surgeries and the surgical insertion of a titanium plate to hold his facial bones in place. The attack was captured on videotape.
Brownstein previously pleaded guilty on September 14, 2018.
The staff at FCI-Berlin conducted the investigation of this case. The case was prosecuted by Assistant U.S. Attorney Donald A. Feith.
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Illinois woman sentenced in pain pill conspiracyRead the Press Release
MISSOULA—An Illinois woman who posed as a caregiver and tried to pass fake prescriptions for pain pills in Missoula as part of a conspiracy was sentenced to federal prison on Wednesday, U.S. Attorney Kurt G. Alme said.
The defendant, Shannon Melissa Gross, 42, of Lombard, Il, was sentenced to one year and one day in prison and five years of supervised release. Gross pleaded guilty earlier to conspiracy to possess with intent to distribute Oxycodone.
U.S. District Judge Donald W. Molloy presided.
Missoula Police Department officers arrested Gross in January 2017 while she tried to pass a fraudulent prescription for Oxycodone at a local pharmacy. Gross had successfully filled one prescription for 180 30 mg Oxycodone pills and had tried to fill two other similar prescriptions that same day.
Each prescription was purported to be written by a Dr. Nick Chen, from the Seattle Intergrative (sic) Cancer Center located in Tukwila, Wash. This same doctor and practice has been used in other fraudulent prescriptions passed elsewhere in Montana.
When interviewed by law enforcement officers, Gross said an unknown man approached her in a casino in western Washington and asked if she’d like to make some money. Gross agreed and the man drove her to the rental car center at SeaTac Airport, where a woman was waiting with a rented vehicle. The woman, later identified as codefendant, Meisean Teurn, drove Gross to Missoula.
In Missoula, Teurn provided Gross with the fraudulent prescriptions, medical scrubs, insurance information for the patients whose names were on the fake prescriptions and instructions for how to pretend to be a caregiver filling the prescriptions. Gross followed the instructions and got arrested.
Teurn, 27, of Tukwila, Wash., was sentenced in September to one year and one day in federal prison and three years of supervised release for conviction of conspiracy to possess with intent to distribute Oxycodone.
Assistant U.S. Attorney Thomas Bartleson prosecuted the case, which was investigated by the Drug Enforcement Administration and the Missoula Police Department.
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Illegal alien from Honduras pleads guilty to re-entering the United States five timesRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced today that an illegal alien from Honduras pleaded guilty to illegally re-entering the country for a fifth time.
Selvin Ponce-Hernandez, 27, of Honduras, pleaded guilty before U.S. District Judge S. Maurice Hicks Jr. on one count of illegal re-entry of a removed alien. According to the indictment, Lafayette Parish Sheriff’s deputies arrested Ponce-Hernandez on August 9, 2018 for domestic abuse battery, possession of a stolen firearm and resisting an officer. The defendant’s wife reported the battery and deputies found him hiding in the closet of an abandoned apartment. The defendant was previously removed from the United States four times - November 2008, December 2009, January 2012 and October 2015. He also has two previous criminal convictions. He was convicted in August of 2008 of criminal mischief in Houston Texas, and in October 2009 in the Southern District of Texas for illegal re-entry of a removed alien.
Ponce-Hernandez faces up to 10 years in prison, three years of supervised release, a $250,000 fine, and possible deportation. Sentencing has been set for April 3, 2019.
Homeland Security Investigations, the ATF and the Lafayette Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney David J. Ayo is prosecuting the case.
Honduran Man Sentenced for Immigration OffenseRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced thatJOSE ANGEL ESPINOZA-FUENTES, age 42, a native of Honduras, was sentenced yesterday after pleading guilty to a one-count indictment for illegal reentry of a removed alien.
United States District Court Judge Martin L.C. Feldman sentenced ESPINOZA-FUENTES to time served (6 months), a $2,500 fine, followed by one year of supervised release, and a $100 special assessment fee. The defendant will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on July 1, 2018, ESPINOZA-FUENTES was found in the United States after having been previously deported from the United States on July 22, 2011.
U.S. Attorney Strasser praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
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Honduran Citizen Sentenced to Prison for Scheme to Facilitate Employment of Undocumented Aliens in Construction Industry and Evasion of Payroll Taxes and Workers’ Compensation LawsRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Oscar Arnelson Rodriguez-Cruz (41, Orlando) to 27 months in federal prison for conspiracy to commit wire fraud and conspiracy to defraud the IRS of federal payroll taxes. The court also ordered Rodriguez-Cruz to forfeit $626,817, the amount of proceeds obtained as a result of the wire fraud offense, and to pay restitution to the IRS for a tax loss of $3,436,008. Rodriguez-Cruz is a Honduran citizen who is unlawfully present in the United States.
He had previously pleaded guilty to the offenses.
According to court documents, Rodriguez-Cruz engaged in a scheme through which construction contractors engaged the services of individuals who were living and working in the United States illegally. Rodriguez-Cruz formed a shell company that entered into agreements with the contractors to provide construction workers. By obtaining and paying the workers through the shell companies, the contractors disclaimed responsibility for ensuring that the workers were legally authorized to work in the United States, that required state and federal payroll taxes were paid, and that adequate workers’ compensation insurance was provided.
After creating the shell company, Rodriguez-Cruz applied for a workers’ compensation insurance policy that covered a one-year period. In the application, Rodriguez-Cruz represented that the policy would cover five employees and an estimated annual payroll of $121,000. The insurance company issued the policy, charging a premium of $20,473.
To pay the workers, the contractors wrote payroll checks to the shell company. Rodriguez-Cruz then cashed the checks and distributed the cash to crew leaders, who paid the workers in cash. No state or federal payroll taxes, such as for Medicare and Social Security, were deducted from the workers’ pay, in violation of Florida and federal law.
Rodriguez-Cruz kept approximately 4% of the amount of each payroll check as a fee. During the scheme, he cashed payroll checks for hundreds of workers totaling $15,670,438, with his 4% fee totaling $626,817. The annual premium for a workers’ compensation insurance policy covering that payroll amount would have totaled approximately $2,511,060. Had the total payroll been properly reported to the government, the payroll taxes due would have been approximately $3,436,008.
“This case is another example of HSI’s investigative expertise in worksite enforcement and financial crimes,” said HSI Tampa Special Agent in Charge James C. Spero. “HSI continues to identify, disrupt, and eliminate the criminal schemes used to exploit our financial industry and to garner profit from the labor of undocumented aliens.”
“Today’s sentence should send a message to those involved in the business of evading employment taxes,” said Special Agent in Charge Mary Hammond of the IRS Criminal - Investigation, Tampa Field Office. “Let this be a warning to all that law enforcement will not allow construction contractors to gain unfair advantage by breaking the law.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Hillsboro Man Pleads Guilty to Federal Charge After Stealing Labor Union FundsRead the Press Release
PORTLAND, Ore.—John Jason Burgess, 43, of Hillsboro, Oregon, pleaded guilty today to one count of concealing or destroying labor union records.
According to court documents, between 2008 and 2016, Burgess served as the president of Local 304, an independent labor union representing approximately 140 employees of Pacific Stainless Products (PSP), a manufacturer of stainless steel equipment headquartered in St. Helens, Oregon. Local 304 represents its members in negotiating with PSP on employment issues and, under the Labor-Management Reporting and Disclosure Act of 1959 (LMRDA), is required to file an annual financial report with the Secretary of Labor. Members fund the union entirely through biweekly dues of $12.50 withheld from their paychecks.
As president, Burgess was added as a signatory to Local 304’s bank account in 2011 and received a debit card linked to the account. At around the same time, Burgess assumed responsibility for maintaining the union’s financial records as required by LMRDA. Burgess was not authorized to draw any compensation for his duties as an officer of Local 304.
Burgess was fired from PSP in January 2016 and thus became ineligible to continue as a member or officer of Local 304. He surrendered his debit card linked to the union’s bank account, but did not produce or otherwise make available the financial records he had maintained during his time as president. Burgess admitted to abusing his position to convert to personal use more than $32,000 in union funds while failing to keep or disclose receipts relating to his unauthorized expenditures as required under LMRDA.
Burgess faces a maximum sentence of 12 months in prison, a $100,000 fine and a one-year term of supervised release. He will be sentenced on April 10, 2019, before U.S. District Court Judge Anna J. Brown. As part of the plea agreement, Burgess will pay restitution of no less than $10,600 to Local 304, as ordered by the court. Burgess has already repaid $21,580 to the union.
The U.S. Department of Labor, Office of Labor-Management Standards, investigated this case. It is being prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
Heroin Dealer Sentenced to 25 Years in Prison for Overdose Death of 25-Year-Old ManRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that FRANKIE BEQIRAJ was sentenced to 25 years in prison for leading a conspiracy to distribute heroin, cocaine, oxycodone, and alprazolam in the Bronx and Westchester. BEQIRAJ personally distributed heroin that resulted in the death of Robert Vivolo, a 25-year-old man from City Island, New York. BEQIRAJ was convicted after trial on June 11, 2018, before United States District Judge Richard M. Berman, who also imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Frankie Beqiraj ran a crew of employees that distributed heroin throughout the City Island community, often hiring addicts and paying them in cash and drugs. His callousness and greed ultimately led to the overdose death of 25-year-old Robert Vivolo. Now, Beqiraj has been sentenced for his crimes and will spend significant time in prison.”
According to court documents and the evidence at trial:
From July 2016 to January 2017, BEQIRAJ was the principal drug supplier of the small Bronx community of City Island. BEQIRAJ employed workers, who were themselves heroin addicts and were supplied drugs by BEQIRAJ, to deliver narcotics to his customers using prepaid phones supplied by BEQIRAJ. These workers were paid their salaries in money and heroin. Through his organization, BEQIRAJ distributed large quantities of heroin, cocaine, oxycodone, and alprazolam.
On October 21, 2016, BEQIRAJ sold heroin to Robert Vivolo, a recovering heroin addict, on City Island, New York. BEQIRAJ’s heroin caused Vivolo to die from an overdose that night.
The Court also found that, on or about January 9, 2017, one of Beqiraj’s workers distributed heroin to three additional individuals, all of whom overdosed. One of those individuals died as a result of the overdose; the two others survived, having been revived with naloxone.
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In addition to the prison term, BEQIRAJ, 28, of the Bronx, New York, was sentenced to five years of supervised release.
U.S. Attorney Berman praised the outstanding work of the New York City Police Department’s Bronx Narcotics Heroin Overdose Team, the New Rochelle Police Department, and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York.
This matter is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys David W. Denton Jr. and Elizabeth A. Hanft are in charge of the prosecution.
Harrison County man sentenced for drug distribution and firearm chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – James Bailey, of Clarksburg, West Virginia, was sentenced today to 36 months incarceration for drug distribution and firearm charges, United States Attorney Bill Powell announced.
Bailey, age 34, pled guilty to one count of “Distribution of Methamphetamine” and one count of “Use of a Firearm During and in Relation to a Drug Offense” in August 2018. Bailey admitted to selling methamphetamine and being in possession of a firearm during the drug offense in Harrison County in January 2018.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greater Harrison County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.Harrison County man admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Randall Lee Barker, of Mount Clare, West Virginia has admitted to drug distribution and was sentenced to 36 months probation, United States Attorney Bill Powell announced.
Barker, age 56, pled guilty to one count of “Distribution of Para-Fluorofentanyl.” The crime took place in Harrison County on November 13, 2016.
Assistant U.S. Attorney Andrew M. Cogar prosecuted the case on behalf of the government. The United States Postal Service Office of Inspector General, the West Virginia State Police, and the Greater Harrison Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Gary Man Indicted for Disaster Relief FraudRead the Press Release
HAMMOND- Olanrewajua A. Beyioku, 38, of Gary, Indiana, was charged in an indictment with wire fraud, announced U.S. Attorney Kirsch.
U.S. Attorney Kirsch said, “At a time when individuals were going through some of the worst times in their lives, Mr. Beyioku seized the opportunity to enrich himself with hurricane relief funds meant for those who lost homes and businesses. My Office and our law enforcement partners will continue to investigate those who defraud the government for personal gain.”
The Indictment alleges that, in September and October 2017, Beyioku, a.k.a. “Papa Smith Morgan,” working in conjunction with others, known and unknown to the United States Attorney, devised a scheme to defraud the American Red Cross (“Red Cross”) by obtaining reference codes intended for nine different households directly impacted by Hurricane Harvey, and by using those codes to obtain $3,600 in hurricane relief funds.
According to the Indictment, on August 25, 2017, Hurricane Harvey struck the Houston, Texas area causing extensive damage. President Donald J. Trump declared it a federal disaster area that same day, which made federal disaster relief funds available to those affected by the storm.
One type of federal disaster relief was a one-time cash payment of $400 through the Red Cross. The Red Cross established a link on their website where hurricane victims could apply for the cash assistance. Hurricane victims used their email addresses to apply. They entered personally identifiable information, including their address. If the address fell within a designated disaster area, The Red Cross forwarded the application electronically to an entity referred to herein as “Company A.”
Company A vetted the information, and electronically forwarded it to “Company B.” Company B then created an eleven-digit alphanumeric code. The code was then sent to the applicant with instructions to redeem the code at a Wal-Mart Money Center or Customer Service Desk.
In early September 2017, The Red Cross received reports of ineligible people redeeming multiple reference codes at various Wal-Mart stores across the United States. The Red Cross reported this to the National Center for Disaster Fraud (“NCDF”). With assistance from Wal-Mart Global Security Investigators, The Red Cross identified over 3,300 instances of fraudulently obtained reference codes. The loss to The Red Cross is more than 1.3 million dollars.
The United States Attorney’s Office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the United States Secret Service. This case is being prosecuted by Assistant United States Attorney Jill R. Koster.
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Fresno Residents Indicted for Aiming Laser Beam at CHP AircraftRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Carlos Villa-Lozano, 30, and Paulina Silva Aguilar, 32, both of Fresno, charging them with aiming the beam of a laser pointer at a California Highway Patrol aircraft, U.S. Attorney McGregor W. Scott announced. Villa-Lozano was also charged separately with making false statements to an agent of the Federal Bureau of Investigation.
The indictment alleges that on July 22, 2018, Villa-Lozano and Silva used a dangerously bright green laser pointer to strike a CHP fixed-wing aircraft approximately 12 times. The indictment further alleges that Villa-Lozano materially misrepresented to the FBI agent that the laser device was used for one to two seconds “at most” and hit the aircraft only one time.
This case is the product of an investigation by the FBI and California Highway Patrol. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Villa-Lozano and Silva are scheduled for an arraignment on the indictment on December 21, 2018, in federal court in Fresno. If convicted, Villa-Lozano and Silva face a maximum statutory penalty of five years in prison and a $250,000 fine. If convicted of the false statement offense, Villa-Lozano faces an additional five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Four Sentenced this Week for Conspiring to Distribute HeroinRead the Press Release
COVINGTON, Ky. – Courtney Webster, 34, of Cincinnati; Jonathan Stanley, 34, of Cincinnati; Keith Johnson, 35, of Alexandria, Kentucky; and Michael Boone, 45, of Newport, Kentucky, were sentenced this week, by United States District Judge David L. Bunning, for conspiring to distribute heroin. On Tuesday, Webster was sentenced to 240 months in federal prison and Stanley was sentenced to 51 months. Today, Johnson was sentenced to 90 months in federal prison and Boone was sentenced to 90 months.
Webster was convicted of leading the conspiracy, which included the other defendants and was responsible for distributing over a kilogram of heroin in Northern Kentucky and Cincinnati, from November 2016 through April 2018. Court documents established that Webster distributed heroin himself, and directed others who were selling heroin that he supplied. They also established that, during the course of the investigation, law enforcement agents conducted over 20 controlled buys of heroin from conspiracy members.
All four were indicted in April 2018 and entered guilty pleas. Under federal law, each defendant must serve at least 85 percent of their prison sentence; and following their release, they will be under the supervision of the United States Probation Office for an additional term.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; and Robert Nader, Chief of the Covington Police Department, jointly made the announcement. The investigation was conducted by the FBI and the Covington Police Department. The United States was represented by Assistant United States Attorney Tony Bracke.
Four Defendants Sentenced for Roles in Fraud Scheme Against Starkey LaboratoriesRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencings of W. Jeffery Taylor, 57, Scott A. Nelson, 60, and Jeffery Longtain, 59, for their roles in the fraud scheme perpetrated against Starkey Laboratories, Inc. (Starkey) and its principal owner William F. Austin. Taylor was sentenced to 18 months of prison, Nelson was sentenced to 24 months of prison, and Longtain was sentenced to one year of probation. The defendants were sentenced today in United States District Court by Chief Judge John R. Tunheim. Jerome Ruzicka, 62, was sentenced on December 19, 2018 to 84 months of federal prison, by Chief Judge Tunheim.
“The sentencings today are a testament to the remarkable skill, dedication, and professionalism of our law enforcement partners,” said United States Attorney Erica H. MacDonald. “I am thankful for their unrelenting pursuit of justice during this investigation and trial.”
Taylor was convicted on March 3, 2018, following a nearly 8-week trial presided over by Chief Judge John R. Tunheim. Longtain pleaded guilty on April 20, 2017, to a criminal information charging him with one count of making and subscribing a false return. Nelson pleaded guilty on December 19, 2017, to a criminal information charging him with one count of conspiracy.
This case was the result of an investigation conducted by the FBI, Criminal Investigation Division of the IRS, and the United States Postal Inspection Service.
Assistant United States Attorneys Benjamin Langner and Surya Saxena, and former Assistant United States Attorney Lola Velazquez-Aguilu prosecuted the case.
Defendant Information:
Jerome C. Ruzicka, 61
Plymouth, Minn.
Convicted:
- Mail fraud, 4 counts
- Wire fraud, 3 counts
- Tax fraud, 1 count
Sentenced:- 84 months imprisonment
- 1 year supervised release
- Court will issue a restitution order
W. Jeffery Taylor, 57
Cologne, Minn.
Convicted:
- Mail fraud, 1 count
- Wire fraud, 2 counts
Sentenced:- 18 months imprisonment
- 2 years supervised release
Scott A. Nelson, 60
Prior Lake, Minn.
Convicted:
- Conspiracy to commit mail fraud and wire fraud, 1 count
Sentenced:- 24 months imprisonment
- 1 year supervised release
Jeffrey Lee Longtain, 58
West Linn, Ore.
Convicted:
- Marking and Subscribing a False Return, 1 count
Sentenced:
- One year of probation
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Fort Myers Doctor Agrees to Pay More Than $1.7 Million to Resolve Allegations of FraudRead the Press Release
Fort Myers, FL – United States Attorney Maria Chapa Lopez announces that Dr. Jonathan Daitch, M.D. has agreed to a civil settlement that will pay $1.718 million to the United States to resolve allegations that he violated the False Claims Act by receiving illegal kickbacks associated with the provision of anesthesia services and by causing the submission of medically unnecessary urine tests.
During the relevant period, Dr. Daitch was a practicing interventional pain management specialist and one of two principal owners of Advanced Pain Management Specialists, P.A., which is located in Fort Myers. The other principal owner, Dr. Michael Frey, previously pleaded guilty to two counts of conspiracy to receive healthcare kickbacks and has agreed to a civil settlement with the United States for $2.8 million.
The civil settlement announced today resolves allegations that, from 2013 through 2016, Dr. Daitch caused the submission of false claims to Medicare and Tricare by causing the submission of definitive Urine Drug Testing (“UDT”) in circumstances where such testing was not reasonable or medically necessary. Definitive UDT testing was financially lucrative for Dr. Daitch because the testing was performed at Advanced Pain’s own in-house laboratory and was billed for by the practice.
In addition, the civil settlement resolves kickback allegations associated with anesthesia services provided by Anesthesia Partners of SWFL, LLC. Anesthesia Partners was owned by Dr. Daitch and his partner Dr. Frey and provided anesthesia services exclusively for the procedures performed by the Advanced Pain physicians. Anesthesia Partners contracted with Certified Registered Nurse Anesthetists (“CRNAs”) to provide the anesthesia services. These CRNAs were paid a contracted rate. Anesthesia Partners then billed Medicare and Tricare directly for the anesthesia services they provided. This arrangement resulted in improper remuneration to Dr. Daitch as one of the owners Anesthesia Partners. The United States contends that Dr. Daitch’s ownership interest in Anesthesia Partners, and the remuneration he received through this ownership interest, induced him to refer his patients for anesthesia services to Anesthesia Partners.
On July 9, 2018, the Centers for Medicare & Medicaid Services (“CMS”) suspended all Medicare payments to Anesthesia Partners. As part of this settlement, the United States will retain the funds withheld as a result of the suspension.
“With this settlement, we have successfully held both of the principal owners of Advanced Pain accountable for their abuse of the federal programs,” said United States Attorney Chapa Lopez. “The investigation of this healthcare company, which has resulted in three guilty pleas and more than $4.5 million returned to the taxpayers, is a great example of our commitment to enforce our nation’s health care laws.”
In addition to the civil settlement, Dr. Daitch, Advanced Pain, and Park Center for Procedures (“Park Center”—an ambulatory surgical center also owned by Drs. Daitch and Frey, which provides services to patients of Advanced Pain) have entered into a five-year Corporate Integrity Agreement with the Office of Inspector General of the United States Department of Health and Human Services. The Corporate Integrity Agreement, among other obligations, requires Dr. Daitch, Advanced Pain, and Park Center to hire an independent review organization to monitor both claims and financial arrangements. That information, along with other information, will then be reported annually to OIG.
“OIG will continue to aggressively investigate physicians disregarding their Hippocratic Oath in order to enrich themselves through illegal kickback arrangements and the ordering of unnecessary medical services,” said Shimon R. Richmond, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “To those who would violate the public trust and stick taxpayers with the bill -- be warned. OIG and our partners will call you to account.”
"This settlement demonstrates the effectiveness of investigations by the Defense Criminal Investigative Service and our law enforcement partners to ensure that medical providers do not unjustly enrich themselves by abusing the Department of Defense TRICARE program. DCIS protects the integrity of DoD programs by rooting out fraud, waste, and abuse that diverts and wastes precious American taxpayer dollars intended for our Warfighters,” said Special Agent in Charge John F. Khin, Southeast Field Office.
The investigation was handled by Assistant U.S. Attorney Kyle S. Cohen, with assistance from DCIS and the Department of Health and Human Services Office of Inspector General.
Today’s resolution illustrates the government’s commitment to combating improper practices that implicate the nation’s federally subsidized health care programs, using all statutory and common law remedies available to address such schemes. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Former U.S. Senate Employee Sentenced to Prison Term on False Statements ChargeRead the Press Release
WASHINGTON – James A. Wolfe, 58, of Ellicott City, Maryland, the former Director of Security for the U.S. Senate Select Committee on Intelligence (SSCI), was sentenced today to two months in prison for making a false statement to the FBI during the course of an investigation into the unlawful disclosure of classified national security information.
The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jessie K. Liu for the District of Columbia, and Special Agent in Charge Timothy M. Dunham of the Counterintelligence Division of the FBI’s Washington Field Office.
Wolfe pled guilty on Oct. 15, 2018, in the U.S. District Court for the District of Columbia, to one count of making a false statement. Under the plea agreement, the government moved to dismiss two remaining false statements counts at sentencing. In his proffer, Wolfe admitted to the conduct underlying one of the two dismissed counts.
In addition to the prison time, the Honorable Ketanji Brown Jackson ordered that Wolfe pay a $7,500 fine. She also ordered that he complete four months of supervised release following his incarceration. During that time, he is to perform 20 hours of community service a month.
At the time Wolfe made the false statement to the FBI, he was the Director of Security for the SSCI, a position he held for more than 28 years. As SSCI Director of Security, he was entrusted with receiving, maintaining, and managing classified national security information provided to the SSCI by the Executive Branch of the United States.
According to a statement of offense filed at the time of the plea, the FBI opened an investigation in April 2017 into the unauthorized disclosure of classified national security information that had appeared in a specific article published by a national news organization. In December 2017, during the course of the investigation, Wolfe was interviewed. Wolfe was asked specifically about whether he had been in contact with any reporters and, if so, who those reporters were, and what were the nature and extent of those contacts and the means by which those contacts occurred.
By his guilty plea, he admitted making false statements to the FBI concerning whether he had provided unclassified, but not otherwise publicly-available, information to reporters. Specifically, on Oct. 16, 2017, and again on Oct. 24, 2017, Wolfe provided a particular reporter with non-public information concerning a witness who had been subpoenaed to testify before the SSCI. Wolfe also admitted making false statements to the FBI about his contacts with three additional reporters, including one of the authors of the aforementioned article.
Wolfe was indicted in June 2018. The investigation into this matter was conducted by the FBI’s Washington Field Office. The case was prosecuted by Assistant U.S. Attorneys Jocelyn Ballantine and Tejpal S. Chawla and Special Assistant U.S. Attorney Laura Ingersoll of the District of Columbia, with assistance from the Counterintelligence and Export Control Section, National Security Division of the U.S. Department of Justice.
Former Tax Return Preparer Pleads Guilty to Tax and Bankruptcy FraudRead the Press Release
WASHINGTON - Geoffrey Rotich pleaded guilty to aiding and assisting in the preparation of a false income tax return and making a false bankruptcy declaration, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Stephen R. McAllister of the District of Kansas.
According to documents filed with the court, Rotich owned and operated Inventax, a tax preparation business in Shawnee, Kansas. In March 2013, Rotich willfully aided and assisted in the preparation and filing of an individual’s 2012 individual income tax return that he knew contained false claims for education expenses and other deductions. Rotich also knowingly filed a fraudulent bankruptcy petition, which failed to disclose his interest in Inventax and to completely identify all of his bank accounts.
U.S. District Judge Daniel D. Crabtree scheduled sentencing for March 21, 2019. Rotich faces a maximum sentence of three years in prison for the tax count and a maximum sentence of three years in prison for the bankruptcy fraud count. Rotich also faces a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney McAllister commended special agents of IRS-Criminal Investigation and Homeland Security Investigations, who conducted the investigation, and Trial Attorney Timothy M. Russo of the Tax Division and Assistant U.S. Attorney D. Christopher Oakley of the District of Kansas, who prosecuted this case, and the U.S. Trustee’s Office in Wichita, Kansas for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Former Tax Return Preparer Pleads Guilty to Tax and Bankruptcy FraudRead the Press Release
Geoffrey Rotich pleaded guilty to aiding and assisting in the preparation of a false income tax return and making a false bankruptcy declaration, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Stephen R. McAllister of the District of Kansas.
According to documents filed with the court, Rotich owned and operated Inventax, a tax preparation business in Shawnee, Kansas. In March 2013, Rotich willfully aided and assisted in the preparation and filing of an individual’s 2012 individual income tax return that he knew contained false claims for education expenses and other deductions. Rotich also knowingly filed a fraudulent bankruptcy petition, which failed to disclose his interest in Inventax and to completely identify all of his bank accounts.
U.S. District Judge Daniel D. Crabtree scheduled sentencing for March 21, 2019. Rotich faces a maximum sentence of three years in prison for the tax count and a maximum sentence of three years in prison for the bankruptcy fraud count. Rotich also faces a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney McAllister commended special agents of IRS-Criminal Investigation and Homeland Security Investigations, who conducted the investigation, and Trial Attorney Timothy M. Russo of the Tax Division and Assistant U.S. Attorney D. Christopher Oakley of the District of Kansas, who prosecuted this case, and the U.S. Trustee’s Office in Wichita, Kansas for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Former Tax Lawyer Arrested on Tax Evasion ChargesRead the Press Release
LOS ANGELES – A Long Beach man who once worked as a tax and estate-planning lawyer has been charged by a federal grand jury with two felony counts of tax evasion for setting up shell companies to evade the payment of over $1.4 million he owed to the Internal Revenue Service.
James Roy McDaniel, 65, was arrested on Tuesday and today remains in federal custody without bond. At his arraignment on Tuesday, McDaniel entered a not guilty plea and was ordered to stand trial on February 12.
McDaniel was a licensed California attorney for more than two decades, until he pleaded guilty in late 2004 to one felony count of subscribing to a false income tax return. In 2005, McDaniel was sentenced to three years in federal prison for that crime, and he surrendered his license to practice law in California. In that case, McDaniel’s failure to report income resulted in a tax loss of $677,368 to the federal government, according to court documents. The IRS subsequently assessed McDaniel more than $1.4 million in taxes, interest and penalties for the tax years 1997 through 2001, court papers state.
According to the tax evasion indictment returned by a federal grand jury earlier this month, McDaniel willfully attempted to evade paying his debt to the IRS by creating two shell companies – Davis Bell Consulting LLC and James Roy Consulting LLC – where he directed payments for tax and estate planning work he performed after being released from prison. During a scheme that allegedly ran from May 2008 until December 2012, McDaniel attempted to mislead federal tax authorities and conceal his income by directing other people to sign documents identifying themselves as the sole managing members of the shell companies. As part of the alleged scheme, McDaniel directed them to open bank accounts where he deposited checks for his tax and estate planning work, the indictment states.
McDaniel also allegedly applied for a Taxpayer Identification Number for James Roy Consulting in the name of another person without obtaining that person’s consent.
The indictment also alleges that McDaniel failed to file a federal income tax return for 2012 and failed to pay $45,725 in taxes due for that year.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If he were to be convicted of the two tax evasion charges alleged in the indictment, McDaniel would face a statutory maximum sentence of 10 years in federal prison.
This case is being investigated by IRS Criminal Investigation.
This case is being prosecuted by Assistant United States Attorney Ruth Pinkel of the Public Corruption and Civil Rights Section.
Former Shaw Insider Sentenced to Federal Prison for Insider TradingRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. District Judge John W. deGravelles sentenced KELLY LIU, age 33, of Baton Rouge, Louisiana, to 16 months in federal prison following her convictions for securities fraud (insider trading) and conspiracy to commit securities fraud. The Court also sentenced LIU to pay a fine of $7,500 and to serve 1 year of supervised release following her term of imprisonment.
In May of this year, a jury found LIU and her two co-defendants guilty as charged in connection with an insider trading scheme related to the 2012 acquisition of the Shaw Group (“Shaw”) by Chicago Bridge and Iron Company (“CB&I”). According to evidence presented at trial, in mid-2012, Shaw was considering a potential merger opportunity. At the time, LIU was working in Shaw’s Financial Planning and Analysis Department on Essen Lane. In July 2012, Shaw and CB&I came to an agreement on an offer for CB&I to buy Shaw. This merger between the two companies was publicly announced on July 30, 2012 (“the public announcement”). As a result of the public announcement, Shaw’s stock price rose by around 55 percent.
The evidence at trial established that, prior to the public announcement and through her job at Shaw, LIU obtained inside information that Shaw was going to be acquired by another company. She subsequently passed the inside information to Victory Ho (“Ho”), through another individual, and to her former boyfriend, Salvador J. Russo, III (“Russo”), for their use in trading Shaw stock and options. Documents and testimony presented at trial also showed that, in the months leading up to the public announcement, LIU was assisting a Ho family business with obtaining financing and insurance on a real estate project in Morgan City, Louisiana.
Based on the information provided by LIU, Ho and Russo purchased Shaw stock and options before the public announcement. Through these purchases, Ho reaped almost $300,000, and Russo secured a profit of approximately $4,000 on a $5,000 investment.
On October 24, 2018, co-defendant Victory Ho, age 39, of Morgan City, was sentenced to 32 months in federal prison, ordered to forfeit over $300,000 and to pay a $15,000 fine, following his convictions in the same insider trading scheme.
On October 30, 2018, co-defendant Russo, age 35, of Baton Rouge, was sentenced to 16 months in federal prison following his convictions in the same scheme.
United States Attorney Fremin stated, “This investigation and prosecution of another company insider should serve as a strong deterrent to others in the future. It is crucial that investors in the Middle District of Louisiana and across the country know that federal law enforcement will devote substantial resources to safeguard and protect a level playing field in the financial markets. Once again, I appreciate the team of agents from FBI, Secret Service, and IRS-Criminal Investigation, along with the staff and prosecutors from my office, who devoted countless hours to this investigation and prosecution.”
Passing private information regarding stock transactions in the hopes that it will yield big returns for certain insiders is not savvy investing; it's criminal activity,” stated Thomas J. Holloman, III, IRS - Criminal Investigation Special Agent in Charge. "Today's sentence reinforces our commitment to every American that IRS – Criminal Investigation will work diligently to protect the assurances of market integrity that should be afforded to all investors.
Tara McLeese, Resident Agent in Charge of the Secret Service Baton Rouge office stated “The justice delivered in this case highlights a successful joint investigative effort undertaken by several agencies in the Baton Rouge area. The United States Secret Service will continue our relentless pursuit of those who seek to endanger the financial integrity of the United States for their own benefit and will continue to work in unison with our federal, state and local partners.”
FBI Special Agent-in-Charge Eric J. Rommal stated, “The FBI New Orleans Field Office will continue to work with our federal, state, and local partners to uphold the integrity of the nation’s securities and commodities markets. The selfish, illegal, and unethical behavior of Kelly Liu will not be tolerated. Corporate insiders like Kelly Liu, and her co-conspirators, Ho and Russo, who unjustly enrich themselves using material non-public information, will be held accountable for their actions.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Baton Rouge offices of the FBI, Secret Service, and IRS-Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Chris Dippel and Patricia Jones.
Former Police Officer, Union Official Sentenced in Fraud CaseRead the Press Release
PROVIDENCE – A former union official for the Fraternal Order of Police (FOP), Newport Lodge No. 8, was sentenced in U.S. District Court in Providence today for fraudulently converting more than $31,000 in FOP funds for his own personal use.
Appearing before U.S. District Court Chief Judge William E. Smith on May 24, 2018, former Newport police officer Adam Conheeny, 46 of Portsmouth, admitted that between August 2009 and December 2014, he used an FOP debit card, wrote checks from a union account payable to himself, and withdrew cash from an FOP bank account for his own personal use. In pleading guilty to wire fraud, Conheeny admitted to fraudulently converting approximately $31,413 in FOP funds for his own use.
At sentencing today, U.S. District Court Chief Judge William E. Smith sentenced Conheeny to 3 months incarceration to be followed 2 years supervised release.
Conheeny’s sentence is announced by Michael Mikulka, Special Agent in Charge of the New York Region of the U.S. Department of Labor Office of Inspector General, and Superintendent of the Rhode Island State Police Ann C. Assumpico.
In a related case, Christopher Hayes, 51, of Middletown, a former Newport Police Department Sergeant and a former president of the FOP, Newport Lodge No. 8, pled guilty on May 1, 2017, to wire fraud. He was sentenced on July 21, 2017, to 6 months imprisonment followed by 6 months of home confinement. At the time of his guilty plea he admitted that he converted approximately $71,523 in FOP funds for his personal use.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
The matter was investigated by the United States Department of Labor Office of Inspector General, United States Department of Labor Office of Labor Management Standards, and the Rhode Island State Police Financial Crimes Unit.
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