Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
27 February 2019
Two More IDOC Correctional Officers Sentenced for Crimes Stemming from FBI StingRead the Press Release
BOISE - This week, two more former IDOC correctional officers were sentenced for committing drug trafficking crimes as part of a public corruption sting operation, U.S. Attorney Bart M. Davis announced. U.S. District Judge B. Lynn Winmill sentenced Richard McCollough, 37, to 97 months in prison and Timothy Landon, 36, to 41 months in prison. Both will be placed on supervised release for three years after their release from prison.
The case stems from a sting operation initiated by the FBI at IDOC’s request to weed out corruption among IDOC correctional officers. The FBI was able to locate corrupt prison guards by using undercover agents who invited the guards to commit crimes outside of IDOC’s facilities. The defendants believed that the undercover agents they were assisting were large‑scale drug traffickers. The guards provided security and completed other tasks for the undercover agents during staged deliveries of drug loads and drug money. No drugs were in the sole possession of the defendants, and no drugs or other contraband were brought into any IDOC facility as part of these operations.
McCollough pleaded guilty to two counts of possession of a firearm in furtherance of a drug trafficking crime. He joined Landon and co-defendant Erik Thompson, 37, in several operations for the purported drug trafficking organization. This included participating in moving large quantities of drugs and counting large amounts of cash that were delivered to the purported drug trafficking organization.
Landon pleaded guilty to one count of conspiracy to aid and abet drug trafficking. He participated in one major operation with McCollough and Thompson before splitting off to conduct other operations with co-defendant Robert Wallin, 36, who was sentenced to 37 months in prison on February 21, 2019.
Thompson is scheduled to be sentenced on April 7, 2019 before Judge Winmill at the federal courthouse in Boise.
In addition to the FBI, the Boise Police Department, the Meridian Police Department, IDOC’s Special Investigations Unit, and the Ada County Prosecutor’s Office participated in the investigation.
# # #
Two Defendants Charged in Connection with Alleged Multimillion-Dollar Investment Fraud SchemeRead the Press Release
Two individuals were charged in an indictment filed today for their alleged roles in a multimillion-dollar scheme involving purported investments in a start-up financial technology company.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Halsey B. Frank of the District of Maine, Special Agent in Charge Joseph Bonavolonta of the FBI’s Boston Field Office and Special Agent in Charge Kristina O’Connell of the IRS Criminal Investigation (IRS-CI) in Boston made the announcement.
Michael A. Liberty, 58, of Windermere, Florida, and Paul E. Hess, 63, of Braintree, Massachusetts, were each charged in an indictment filed in the District of Maine with one count of conspiracy to commit wire fraud, four counts of wire fraud and one count of securities fraud. In addition, Liberty was charged with one count of conspiracy to commit money laundering and three counts of money laundering.
The indictment alleges that, beginning in 2010, Liberty and Hess solicited investments in Mozido, a privately held financial technology start-up company that offered users an ability to make payments using their mobile phones. Liberty and Hess allegedly raised millions of dollars from investors telling them, among other things, that their money would be used to fund Mozido’s business operations and that Hess was not being paid to raise the money. The indictment alleges that a substantial amount of the money did not go to Mozido, that a portion of the money was diverted to pay Liberty’s personal expenses, and that Hess received commissions and other payments in return for the money he raised from investors.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Portland, Maine Resident Agency and IRS-CI are investigating the case. Trial Attorneys Michelle Pascucci and Matthew Sullivan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Donald Clark of the District of Maine are prosecuting the case.
Individuals who believe they may be a victim in this case should contact the Victim Witness Services Unit of the U.S. Attorney’s Office for the District of Maine at (207) 780-3257 for more information.
Tuskegee Woman Sentenced to Seven Years in Prison for Defrauding Online Shoppers and Firearms ChargesRead the Press Release
Montgomery, Alabama- On February 25, 2019, Tanya Lee English, (a/k/a Tanya Roberts and Tanya Wilson), 44, of Tuskegee, Alabama, was sentenced to 84 months in federal prison for wire fraud, aggravated identity theft, and federal firearms charges, announced U.S. Attorney Louis V. Franklin, Sr., and Postal Inspector in Charge of the Houston Division Adrian Gonzalez. There is no parole in the federal system. In addition to the seven-year prison sentence, English is subject to three years of supervision once released and was ordered to pay $119,550.15 in restitution.
Evidence showed that English ran a wire fraud scheme out of her home from April 2013 to July 2017. As part of that scheme, English posted ads on Craigslist and eBay listing high-end baby strollers such as “Uppababy Vista” and “Bugaboo Donkey” for sale. These strollers retailed for $900 to $1,500 each. English listed pictures of these strollers with a sale price range from $599 to $900, or sometimes she would have the buyers bid on the strollers. After English and a buyer agreed on a price and shipping details, English asked them to send the money through PayPal. After the buyer wired the money to English, they would never hear from her again and never received a stroller.
English would deposit the money she received onto General Purpose Reloadable (GPR) cards issued by various banks. Once the money was deposited on these GPR cards, English would either make ATM cash withdrawals or use the cards to make purchases.
Approximately 200 buyers submitted a payment to English for a stroller. Additionally, 600 more buyers attempted to send a payment to English, but PayPal fraud investigators were able to stop the transactions and reverse payment back to the buyers. PayPal’s actual loss from this scheme was $119,550.51. However, had all the additional transactions gone through, the loss would have been over $277,000.00.
Another part of this scheme was that English used the personal identifying information of real people to create forty-one different PayPal accounts. The accounts were discovered after they were sent to collections due to a negative balance. At that point, the innocent individuals reported they did not have a PayPal account and that their identities had been stolen. Agents confirmed this by linking the Pay Pal accounts to English through her internet IP address, her name, and a shipping address in Tallassee, Alabama.
While executing the arrest warrant for the wire fraud and identity theft charges, agents found a number of firearms and ammunition in the home of English and her husband, Timothy Andre English. Both English and her husband had previous felony convictions and were each charged with being a felon in possession of a firearm. Timothy English was sentenced to 18 months in prison back in July of 2018.
Additionally, evidence at English’s sentencing indicated that while she was on release in the fraud and firearms case, the United State Postal Inspector Service and the Lee County Sheriff’s Office became aware of citizen complaints in Lee County that English was again engaging in fraudulent activities. The new allegations indicate that English was employing a scheme to solicit donations for domestic violence victims, such as baby items, items for women, and gift cards for her own benefit. Testimony indicated that she profited from the collection and re-sale of the donated items, and was allegedly using the gift cards and some of the items for her own personal use.
“Ms. English, like many thieves, prey on their victims using the internet,” stated U.S. Attorney Franklin. “She swindled legitimate buyers out of their hard earned money, and tried to cover her tracks using the stolen identities of innocent people. My office is committed to working with law enforcement to identify these crooks and make them pay for their crimes. Consumers should always be cautious when making online purchases and report any unusual activity immediately. Banks and online payment systems have fraud departments that can limit losses if they are notified in time to take action.”
“When Ms. English received bank cards delivered by the Postal Service and then used those items to commit fraud, that small detail drew the attention of Postal Inspectors,” said Inspector in Charge Adrian Gonzalez, Houston Division. “The U.S. Postal Inspection Service is proud to have worked with our law enforcement partners while protecting the sanctity of the U.S. Mail for public commerce.”
The wire fraud and aggravated identity theft case was investigated by the United States Postal Inspection Service. The felon in possession of a firearms case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Postal Inspection Service, and Alabama Law Enforcement Agency. Both cases were prosecuted by Assistant United States Attorney, Denise O. Simpson.
Three Albany Men Charged in Connection with Armed Bank RobberyRead the Press Release
ALBANY, NEW YORK – Three Albany men were charged today in connection with an armed robbery yesterday of an M&T Bank branch in the Town of North Greenbush, in which a bank employee was shot.
The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Keith M. Corlett, Acting Superintendent of the New York State Police; Chief David Keevern of the Town of North Greenbush Police Department; Chief Eric Hawkins of the Albany Police Department; and Albany County Sheriff Craig D. Apple.
The complaint charges Christopher J. Cohn and Ulysses J. Walls, both age 25, with armed bank robbery. The complaint also charges Quardel E. Valentine, age 28, with conspiracy to commit bank robbery.
The defendants were quickly arrested yesterday following the robbery and appeared today before United States Magistrate Judge Christian F. Hummel, who ordered them detained pending detention hearings scheduled for Friday, March 1.
The charges in the complaint are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The complaint alleges that Cohn and Walls entered an M&T Bank in North Greenbush yesterday morning, each wearing a ski mask and brandishing a gun. In the course of the robbery, Cohn fired multiple shots, including one that grazed an employee of the bank. Valentine drove Cohn and Walls to the bank, waited during the robbery, and helped them flee following the robbery.
The charges filed against Cohn and Walls carry a maximum sentence of 25 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 5 years. The charge filed against Valentine carries a maximum sentence of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI, the New York State Police, the Town of North Greenbush Police Department, the Albany Police Department, and the Albany County Sheriff’s Office, with the assistance of the Rensselaer County District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorneys Wayne A. Myers and Joshua R. Rosenthal.
The Northern District of Indiana’s U.S. Attorney’s Office Collects $6,016,074.83 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
HAMMOND- U.S. Attorney Thomas L. Kirsch II announced today that the Northern District of Indiana collected $6,016,074.83 in criminal and civil actions in Fiscal Year 2018. Of this amount, $2,974,660.68 was collected in criminal actions and $3,041,414.25 was collected in civil actions. Additionally, the Northern District of Indiana forfeited in excess of $1.3 million dollars in civil and criminal forfeitures.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
###
Statement of United States Attorney Mike Stuart Regarding Meeting with Attorney General William BarrRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart issued the following statement after meeting with Attorney General William Barr:
“Today, I had the honor of meeting with Attorney General Barr at his office in Washington to discuss matters of critical importance to the people of West Virginia. He understands West Virginia and our unique challenges. This Attorney General truly appreciates West Virginia and is committed to ending the opiate crisis, supporting law enforcement, and reducing crime for our families and communities. He is very supportive of my efforts in West Virginia to aggressively attack the drug scourge, violent crime, public corruption, health care fraud and other critical priorities. I look forward to working directly with Attorney General Barr and his team to advance the priorities of the Department of Justice and this Administration throughout the great state of West Virginia. I believe it is fair to say that the people of West Virginia have a great friend and champion in Attorney General Barr.”
Follow us on Twitter: SDWVNews and USAttyStuart
###
St. Thomas Resident Indicted for Failing to Register as a Sex OffenderRead the Press Release
St. Thomas, USVI – On February 21, 2019, a federal Grand Jury returned an indictment against Jeffrey Cole, 57, of St. Thomas, charging him with failing to register as a sex offender, United States Attorney Gretchen Shappert announced. Cole appeared in court today before Federal Magistrate Judge Ruth Miller where he entered a plea of not guilty. Cole’s trial date is scheduled for April 15, 2019.
According to the indictment and court records, Cole was convicted for voyeurism in the State of Ohio in 2009. He moved to the State of Georgia where he registered as a sex offender. Cole relocated to the Virgin Islands in 2018, and failed to register.
Under federal law, Cole faces a maximum sentence of 10 years in prison and a maximum $250,000 fine.
United States Attorney Shappert reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
This case is being investigated by the United States Marshal Service. It is being prosecuted by Assistant United States Attorney Everard E. Potter.
South Park Man Charged with Possessing and Distributing Child PornographyRead the Press Release
PITTSBURGH, PA- An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on charges of possession and distribution of materials depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
The two-count Indictment, returned on February 26, named Michael Moran, 60, South Park, PA.
According to Indictment, from on or about August 16, 2018 through on or about September 2, 2018, Moran distributed visual depictions of minors engaged in sexually explicit conduct, and on October 24, 2018, Moran possessed images and videos depicting the sexual exploitation of minors. A number of the images Moran distributed, as well some of the videos and images he possessed, depicted the sexual exploitation of minors under the age of twelve.
The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Moran remains in custody pending the resolution of state charges.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government. The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Soldier Creek Man Charged with Involuntary Manslaughter and Child AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Soldier Creek, South Dakota, man has been indicted by a federal grand jury for Involuntary Manslaughter and two counts of Child Abuse.
Robert Staples, Jr., age 35, was indicted on February 13, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 26, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on September 14, 2018, Staples unlawfully killed another human being, while operating a motor vehicle, in a grossly negligent manner. The Indictment further alleges Staples abused, exposed, tortured, tormented, and cruelly punished children who had not attained the age of seven years old.
The charges are merely accusations and Staples is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Staples was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Six federal inmates charged with lewdly exposing themselves to prison staffRead the Press Release
Brunswick, GA – Six federal inmates face having more time added to their prison sentences after lewdly exposing themselves to prison staff.
The inmates, serving federal prison sentences at Federal Correctional Institution Jesup in southeast Georgia, are charged with Public Indecency as filed in U.S. District Court in Brunswick, Ga., said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Many of the inmates have prior records of lewdly exposing themselves to staff members.
The charges are classified as misdemeanors, and can extend the inmates’ scheduled release date by up to 12 months, along with a year of supervised release and substantial fines.
Those charged are:
- Lesly Richard, 28, of Los Angeles, serving a sentence for being a felon in possession of firearm, with a scheduled release date of Jan. 12, 2022;
- Doniel Porter, 30, of Brunswick, Ga.; serving a sentence for conspiracy to possess with intent to distribute and conspiracy to distribute a controlled substance, with a scheduled release date of Dec. 24, 2021;
- Henry Watson, 38, of Milton, Fla.; serving a sentence for possession and distribution of more than 38 grams of cocaine and illegal possession of a firearm, with a scheduled release date of Oct. 31, 2028;
- James Thornton, 50, of Rock Island, Ill., serving a sentence for conspiracy to distribute crack cocaine, with a scheduled release date of April 29, 2022;
- Patrick Turner, 34, of Margate, Fla., serving a sentence for possession of a firearm by a convicted felon, with a scheduled release date of Oct., 24, 2028; and,
- Tracy McCants, 35, of Jonesboro, Ga., serving a sentence for conspiracy to possess more than 280 grams of crack cocaine with intent to distribute, with a scheduled release date of July 10, 2023. .
“The staff members at our federal correctional institutions serve honorably and under often difficult conditions as they maintain safe environments for incarcerated felons,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “These prosecutions should send a message to all inmates that this reprehensible behavior will not be tolerated – and will result in more time behind bars.”
“The number of incidents of inmate abuse of female prison staff is unacceptable,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is committed to making sure those numbers decrease dramatically by setting an example with cases like this, that if you choose to act out in perverse ways you will extend your stay in prison.”
Federal inmate abuse of female staff members has increased in recent years, with more than 850 cases of exposure in 2016, more than 1,000 in 2017 and 1,269 in 2018.
This case was investigated by the Federal Bureau of Prisons and the FBI. Assistant United States Attorney Marcela C. Mateo and Special Assistant United States Attorney Katelyn Semales prosecuted the case on behalf of the United States.
Shooter in 2014 Midland Homicide Pleads Guilty to Federal Firearms ChargeRead the Press Release
In Midland today, 39-year-old Odessa, TX, resident Noe Garcia Galan pleaded guilty to a federal firearms charge in connection with the murder of Sean Michael Lamb in 2014, announced U.S. Attorney John F. Bash; FBI Special Agent in Charge Emmerson Buie, Jr., El Paso Division; and, Odessa Police Chief Michael Gerke.
Appearing before U.S. District Judge David Counts, Galan pleaded guilty to one count of murder resulting from the use and discharge of a firearm during a drug trafficking offense.
By pleading guilty, Galan admitted that on May 13, 2014, he fatally shot Lamb. According to court records, Galan and others were responsible for the abduction and death of Lamb because they suspected that Lamb and others had stolen a large amount of “crystal” methamphetamine from co-defendants Liz Hernandez and her brother, Ruben James Hernandez.
“Along with our law-enforcement partners, we seek justice for all victims of crime. I am pleased that we were able to obtain a guilty plea in this case and I look forward to sentencing,” stated U.S. Attorney Bash.
Ruben Hernandez, age 38 of Odessa, remains a fugitive in this case. Liz Hernandez, age 39 of Odessa, is currently serving a 20-year federal prison sentence after pleading guilty to one count of murder during the course of a drug trafficking crime. Her 22-year-old son, Brian Hernandez, is back in federal custody after violating conditions of his supervised release, including failing a drug test. In February 2017, Hernandez completed his 41-month federal prison term after he pleaded guilty to the drug conspiracy charge. Four other Odessan co-defendants—44-year-old Raymond Hernandez Olgin, Jr., 41-year-old Rudolfo Romero Parades, 44-year-old Stacey Louise Castillo and 41-year-old Anthony Ryan Gonzales—are serving life, 27 years, 25 years, and 27 years in federal prison, respectively, for their roles in the scheme. In April 2015, a federal jury convicted those four of one count of conspiracy to possess with intent to distribute a controlled substance, one count of possession of a firearm in relation to a drug trafficking crime, and one count of murder during the course of a drug trafficking crime.
“The Odessa Police Department would like to thank all of the assisting agencies for the time and effort dedicated in bringing charges in this case. This was truly a joint effort and could not have been accomplished without their help,” stated Odessa Police Chief Gerke.
Galan, who remains in federal custody, faces between ten years and life in federal prison. Sentencing is scheduled for 2:00pm on May 29, 2019, in Midland before Judge Counts.
The Odessa Police Department and the FBI, with assistance from Homeland Security Investigations (HSI), Texas Department of Public Safety (DPS), Texas Rangers, and the U.S. Border Patrol, investigated this case. Assistant U.S. Attorney William F. Lewis, Jr., is prosecuting this case on behalf of the Government.
Serial Bank Robber Sentenced to Twenty YearsRead the Press Release
Dandre R. Brown, 30, of Godfrey, Illinois, has been sentenced to 20 years in prison, the United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. Brown, who originally hails from Douglasville, Georgia, had been charged in a six-count federal indictment with five counts of bank robbery and one count of transporting a stolen vehicle across state lines. He pleaded guilty to the charges back in November 2018.
Documents filed in federal district court revealed that over a span of six weeks, Brown committed five bank robberies in Madison County, Illinois
Date
Victim Bank
City
Amount Taken
November 29, 2017
U.S. Bank
Alton
$2,910
December 20, 2017
Reliance Bank
Godfrey
$2,246
December 22, 2017
Regions Bank
East Alton
$13,774
January 2, 2018
U.S. Bank
Wood River
$7,550
January 10, 2018
1st MidAmerica Credit Union
Edwardsville
$8,882
As part of his guilty plea, Brown further admitted robbing a U.S. Bank in Florissant, Missouri, on December 11, 2017. On that occasion, Brown made off with $1,625 and then fled back to Illinois in a stolen car.
Brown’s six bank robberies all followed the same basic modus operandi. Brown would enter the bank alone wearing something covering his head. He would present the teller with a note and then flee with the money to a vehicle parked a block or two away. On four occasions, when demanding money from the bank tellers, Brown told the tellers he knew where they lived, intimating that he might come after them personally if they did anything to thwart his crimes.
Investigators were able to identify Brown because of outstanding police work at the local and federal level. After robbing the U.S. Bank in Alton, Brown dropped the demand note he had presented the teller. The note read, "Give me all the money NO Die Packs I have a weapon." Officers with the Alton Police Department found the note in the grass across the street from the bank and sent it to the FBI crime lab, where four latent fingerprints and one latent palm print were discovered and subsequently matched to Brown. A federal arrest warrant was issued, and the United States Marshals Service tracked Brown to Atlanta, Georgia, where they apprehended him on January 23, 2018.
Before Brown was sentenced, the district court received statements from several of the victim bank tellers, who reported their experiences as "very damaging and traumatizing." One teller was so affected by Brown’s threats that she became uncomfortable in her home and had difficulty sleeping. The experience led another victim to leave her employment at the bank. The woman whose car was stolen told the court that for a week afterward she was too afraid to go home because, along with her car, Brown had stolen her house keys.
Brown’s criminal record includes a 2006 conviction for armed robbery in St. Louis, and he was on parole for theft when he committed the bank robberies. His federal sentence includes a three-year term of supervised release. He was also ordered to pay over $35,000 in restitution.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, as part of a series of actions to address violent crime, the Justice Department announced the reinvigoration of PSN ("PSN 2.0") and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This prosecution is the result of a collaborative investigation by the Federal Bureau of Investigation, Illinois State Police, Madison County State’s Attorney’s Office, and the following police departments: Granite City, Alton, St. Louis County, Godfrey, East Alton, Wood River, and Edwardsville. The case was prosecuted by Assistant United States Attorneys James G. Piper, Jr. and Alexandria M. Burns.
Scheule Boys Gang Member Convicted of RICO Conspiracy Going to Prison for 30 YearsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Aaron Hicks, a/k/a Boog, a/k/a Boogy, 34, of Buffalo, NY, who was convicted of racketeering conspiracy and conspiracy to distribute marijuana, was sentenced to serve 30 years in prison by U.S. District Judge Richard J. Arcara. In addition, Judge Arcara ordered the defendant to forfeit $10,400,000 in proceeds from illegal drug trafficking activity.
Assistant U.S. Attorneys Paul Parisi and Wei Xiang, who handled the prosecution of the case, stated that Hicks was a member of the Schuele Boys Gang which operated in the Schuele Street area of the East Side of Buffalo. The gang is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
As a member, the defendant was the Buffalo-based main point of contact for the gang’s cocaine and marijuana supplier, Julio Contreras of McAllen, Texas. Hicks’s co-defendant, Roderick Arrington, was previously convicted following a jury trial in 2017 of the shooting murder of Quincy Balance, a/k/a Shooter, at the intersection of Northland and Stevens in Buffalo on August 30, 2012. Hicks, Arrington, and other Schuele Boys members believed that Balance was involved in the shooting murder of one of their associates on nearby Carl Street four days earlier. Arrington was sentenced to life in prison for murder in aid of racketeering.
“This defendant is the last, of more than two dozen individuals, to be sentenced in our prosecution of a violent street gang that terrorized the East Side of Buffalo and its citizens for a number of years, “ said U.S. Attorney Kennedy. “Our office is determined to bring the leaders, members, and associates of these street gangs to justice. We realize that these gangs spread something much more ruinous to our communities than large amounts of drugs and countless acts of violence. These gangs spread despair. By taking them on, we hope to restore the community’s faith not only in the rule of law but in the possibility for a more productive and positive future.”
Hicks is one of 28 Schuele Boys Gang members and associates to be charged and convicted in this case and the final defendant to be sentenced.
Today’s sentencing is the result of an investigation by the FBI Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; and the New York State Police, under the direction of Major Edward Kennedy. Additional assistance was provided by the Erie County District Attorney’s Office, the Edinboro University Police Department in Pennsylvania, the West Tennessee Judicial Drug Task Force, the City of McAllen, Texas Police Department, HSI Harlingen, Texas, and the FBI offices in Houston, Texas and Jackson, Mississippi.
# # # #
SCDC Prisoner and Co-Conspirator Sentenced to Federal Prison for Roles in Dark Web Mail Bomb PlotRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Michael James Young Jr., 32, of Columbia, South Carolina, was sentenced to over 43 years in federal prison for his role in a conspiracy to purchase a mail bomb from prison over the Dark Web. Co-conspirator Tyrell Fears, 23, of Irmo, South Carolina, was sentenced to 10 years in federal prison.
Evidence presented to the court revealed that while incarcerated in the South Carolina Department of Corrections, Young obtained a contraband cellphone smuggled into the Broad River Correctional Institution. Young used that contraband cellphone to run a drug business distributing marijuana he obtained from a California supplier and from the Dark Web. Drugs purchased by Young were shipped to a conspirator’s residence before being picked up by co-defendant Vance Volious for re-distribution.
While this drug conspiracy among Young, Volious, and others was operating, the conspirators also plotted to kill Young’s ex-wife. This was not the first time that Young had tried to kill her; he was serving a 50-year sentence after having been convicted of attempting to kill her and of murdering her father in 2007.
In February 2017, Young accessed the Dark Web from prison on his contraband cellphone and started a dialogue with an undercover FBI agent, whom he believed to be a foreign explosives dealer. Young paid for a mail bomb to be sent to a conspirator’s residence in Irmo and for the re-shipment label addressed to his ex-wife to be sent to Volious’ house in Columbia.
Fears obtained the labels from Volious, armed the mail bomb, and was surveilled by the FBI delivering the inert explosives package to the Post Office in Irmo on June 6, 2017. After a United States Postal Inspector recovered the mail bomb, Young, Volious, and Fears were arrested on federal charges.
Young and Volious were convicted by a federal jury in April 2018 for conspiracy, transport of an explosive with the intent to kill, mailing a non-mailable explosive with the intent to kill, and carrying an explosive during the commission of another felony. United States District Judge J. Michelle Childs sentenced Young to 525 months in federal prison, to be followed by 3 years of court-ordered supervision. Judge Childs sentenced Fears—who pleaded guilty to carrying an explosive during the commission of a felony and conspiracy—to 120 months in federal prison, to be followed by 3 years of court-ordered supervision. Volious will be sentenced at a later date.
The case was investigated by the Federal Bureau of Investigation, Joint Terrorism Task Force, United States Postal Inspection Service, South Carolina Department of Corrections’ Division of Police Services, State Law Enforcement Division, South Carolina Information and Intelligence Center, Richland County Sheriff’s Department, Lexington Country Sheriff’s Department, Irmo Police Department, USC Division of Law Enforcement and Safety, and Columbia Police Department. The case was prosecuted by Assistant United States Attorney Will Lewis of the Columbia office and former Assistant United States Attorney Jay Richardson, with assistance from Dan Goldberg of the Fifth Circuit Solicitor’s Office.
#####
Rochester Man Pleads Guilty to Stealing MailRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Chansen Diaz, 30, of Rochester, NY, pleaded guilty to conspiracy to steal mail before U.S. Magistrate Judge Marian W. Payson. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Diaz was employed by a U.S. Postal Service contractor at the Greater Rochester International Airport. While performing his job, the defendant conspired with two other individuals, co-defendants Cordell James and Michael Harris, to steal gift cards and cash from the mail. The three men then used the stolen items to finance their lifestyles.
Charges remain pending against Cordell James and Michael Harris. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of a joint investigation by the United States Postal Service Office of Inspector General, under the direction of Special Agent-in-Charge Kenneth Cleevely, Eastern Area Field Office, Pittsburgh, PA, and Inspectors with the U.S. Postal Inspection Service, under the direction of Boston Division Inspector-in-Charge Joseph W. Cronin.
Sentencing is scheduled for May 29, 2019, at 2:30 p.m. before U.S. District Judge David G. Larimer.
Philadelphia man admits to role in a methamphetamine distribution operation in Monongalia CountyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Oscar Aaron Watkins, of Philadelphia, Pennsylvania, has admitted to his involvement in a methamphetamine distribution operation, United States Attorney Bill Powell announced.
Watkins, also known as Eric Oscar Watkins, age 58, pled guilty to one count of “Conspiracy to Distribute Controlled Substances.” Watkins admitted to participating in a drug distribution operation in October 2018 in Monongalia County.Watkins faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Morgantown Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Philadelphia Man Convicted of Multiple Offenses at Trial Including Bribery and Aggravated Identity TheftRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Bakary Camara, 32, of Philadelphia, was convicted today by a jury of one count of conspiracy to produce identification documents without lawful authority, one count of bribery of an agent from PennDOT, two counts of misuse of a Social Security number, and one count of aggravated identity theft.
The defendant bribed his co-conspirator Henry Gibbs (a former PennDOT agent) in order to unlawfully obtain Pennsylvania learner’s permits and non-commercial and commercial driver’s licenses for foreign nationals and others. Some of the individuals for whom the defendant assisted in getting a driver’s license did not speak English and could not pass the DMV knowledge tests. The defendant obtained and attempted to obtain licenses for at least one individual who entered the country illegally. In return for the bribes, Gibbs entered false information into the PennDOT system indicating the individuals passed the required tests, even though they had never taken them.
Moreover, the defendant falsified documents (including utility bills, cellular phone bills, tax notices, and insurance documents) to make it appear that some non-Pennsylvania residents lived in Pennsylvania. The defendant gave the individuals the falsified documents to provide to Gibbs, who accepted the falsified documents and uploaded them into the PennDOT system. The defendant unlawfully assisted at least 30 immigrants and foreign nationals in obtaining Pennsylvania learner’s permits and driver’s licenses through Gibbs. The defendant charged these individuals $300 to $7,000 to assist them with obtaining a Pennsylvania driver’s license and provided Gibbs at least $5,000 in bribes.
“This kind of bribery and fraud will never be tolerated,” said U.S. Attorney McSwain. “It is incredibly dangerous to provide driver’s licenses to those who have not even passed a driving test. In his scheme, the defendant committed a fraud on the government and created a true danger to public safety. We are grateful that the jury held him accountable for his crimes.”
“Today’s guilty verdict highlights Homeland Security Investigations Philadelphia continued vigilance against corruption schemes that damage the trust the public places in our state institutions,” said Marlon V. Miller, Special Agent in Charge of HSI Philadelphia. “This case is another excellent example of federal, state and local cooperation to combat fraud in our community.”
The case was investigated by Homeland Security Investigations and the Social Security Administration, with special assistance from the Pennsylvania Department of Transportation. The case is being prosecuted by Assistant United States Attorney Tiwana Wright.
Parma man sentenced to more than two years in prison for making false statements in order to collect $47,000 in Social Security fundsRead the Press Release
A Parma man was sentenced to more than two years in prison for making false statements in order to collect $47,000 in Social Security funds.
David Fievet, 53, was sentenced to 28 months in prison by U.S. District Judge Benita Pearson after previously pleading guilty to conspiracy to defraud the United States, theft of government property, Social Security fraud and obstruction of justice.
His wife, Gerolyn Fievet, 54, was sentenced to five years of probation. She previously pleaded guilty to conspiracy to defraud the United States.
The Fievets conspired to wrongfully receive 88 monthly Supplemental Security Income checks between January 2010 and April 2017, totaling $47,556, for the benefit of the couple’s disabled son. In order to obtain more benefits than they were legally entitled, the Fievets falsely reported David was not living in the family home when, in fact, he was. Fievet was working as a firefighter at the time, according to court documents.
Special Agent Kelly Clark from the Social Security Administration Office of the Inspector General conducted the investigation. Assistant U.S. Attorney Payum Doroodian prosecuted the case.
One of the Most Senior Level Former Coal Company Officials in Ky Charged for Defrauding Regulators About Black-Lung Causing Risks to MinersRead the Press Release
MADISONVILLE, Ky. – United States Attorney Russell M. Coleman announced the charging of an additional former supervisor and safety official from Armstrong Coal, in addition to the 8 previous officials charged by a Federal Grand Jury, for conspiracy to defraud an agency of the United States government by deceit, trickery and dishonest means.
The Indictment charges that the conspirators sought to deceive federal mine safety regulators as to the daily levels of breathable dust at both the Parkway Mine of Muhlenberg County, KY and Kronos Mine of Ohio County, KY. Breathable or “respirable” dust is the primary cause of pneumoconiosis or “Black Lung” in miners. The Federal Grand Jury also charges the nine Armstrong Coal officials with making false statements as to results of tests required to be conducted every 60 days to protect certain “designated occupations,” that is the dustiest and most dangerous job assignments in a coal mine.
In addition to the previous charges announced in July of 2018, a federal Grand Jury has now indicted Glendal “Buddy” Hardison, the former manager of all Armstrong Coal western Kentucky mines. The Grand Jury charges that Hardison allegedly met with co-Defendant Ron Ivy and an unindicted co-conspirator in 2013, and ordered them to do whatever they had to do to “make the pumps come in.”
“West Kentucky miners are about action, not just happy talk,” stated U.S. Attorney Russell Coleman. “As we showed today, the United States will continue to aggressively go up the chain to hold accountable those who made calculated business decisions that placed our miners at grave risk.”
“Miners’ safety and health is our top priority,” said David G. Zatezalo, Assistant Secretary of the U.S. Department of Labor’s Mine Safety and Health Administration (MSHA), which conducted the investigation that led to the charges. “If supervisors and safety officials are breaking the law, we’ll do everything we can to ensure that the laws are enforced and miners receive the protections they deserve.”
The Grand Jury charges that contrary to regulations, Armstrong officials removed dust testing devices early in the miners’ shifts and placed the devices in less dusty or “clean air”; that during a testing period, officials replaced miners who ran the most dust-causing machines with miners who were not wearing the dust testing devices, so that the company would pass the tests; that Armstrong officials fabricated and submitted dust sampling test results on days the mine was shut down or otherwise not in operation; that officials ordered that testing devices be run in “clean air,” before and after shifts, to skew the test results toward passing; that a mine superintendent twice mandated to a safety official to take whatever action necessary to ensure that the company passed dust sampling tests.
Armstrong Coal, now bankrupt, is designated by the Indictment as an unindicted co-conspirator. Those former Armstrong supervisory and safety officials charged include:
- Charley Barber, age 63, of Madisonville, a former Superintendent of Parkway Mine;
- General “Buddy” Hardison, age 69, of Belton, the former manager of all of Armstrong Coal western Kentucky mines;
- Brian Keith Casebier, age 60, of Earlington, a former Safety Director at Parkway Mine;
- Steven Demoss, age 48, of Nortonville, a former Assistant Safety Director at Parkway Mine;
- Billie Hearld, age 42, of Russellville, a former Section Foreman at Parkway Mine;
- Ron Ivy, age 50, of Manitou, a former Safety Director at Kronos Mine;
- John Ellis Scott, age 62, of South Carrollton, a former employee in the Safety Department at Parkway Mine;
- Dwight Fulkerson, age 40, of Drakesboro, a former Section Foreman who performed dust testing at Parkway Mine; and
- Jeremy Hackney, age 46, of White Plains, also a former Section Foremen who performed dust testing at Parkway Mine.
The Kronos Mine remains in operation under different ownership. The Parkway Mine is no longer open.
The case is being prosecuted by Assistant United States Attorneys Randy Ream, Corinne Keel and MSHA’s Jason Grover.
####
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
New York Man Charged with Cryptocurrency SchemeRead the Press Release
The founder and principal operator of My Big Coin Pay Inc. (My Big Coin), a purported cryptocurrency and virtual payment services company headquartered in Las Vegas, Nevada, was charged in an indictment unsealed today for his alleged participation in a scheme to defraud investors by marketing and selling fraudulent virtual currency.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Andrew E. Lelling of the District of Massachusetts, Special Agent in Charge Joseph R. Bonavolonta of the FBI’s Boston Field Office and Inspector in Charge Delany De Leon-Colon of the Criminal Investigations Group of the U.S. Postal Inspection Service’s National Headquarters in Washington, DC made the announcement.
Randall Crater, 48, of East Hampton, New York, was charged in an indictment filed in the District of Massachusetts with four counts of wire fraud and three counts of unlawful monetary transactions. Crater was arrested this morning and will appear today in U.S. District Court in the Middle District of Florida.
The indictment alleges that between 2014 and 2017, Crater and others created the fraudulent virtual currency “My Big Coins” or “Coins” and marketed this fraudulent currency to investors using misrepresentations about its nature and value. Crater and his associates allegedly falsely claimed that Coins were a fully functioning cryptocurrency backed by valuable assets such as gold. Crater and his associates also allegedly told investors that Coins could be readily exchanged for goods, cash or other virtual currencies. As alleged in the indictment, Crater and his associates solicited investors and distributed these misrepresentations through websites and social media affiliated with My Big Coin, as well as by direct communications with investors and prospective investors. In reality, Coins were not backed by gold or any other valuable assets and were not readily transferable, the indictment alleges. Instead, Crater allegedly misappropriated over $6 million in investor funds for personal use, including to purchase artwork, antiques, jewelry and other luxury items.
The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI and the U.S. Postal Inspection Service. The case is being prosecuted by Trial Attorney Caitlin Cottingham of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jordi De Llano Campos of the District of Massachusetts. The Commodity Futures Trading Commission provided assistance with the matter.
The Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.
New York Man Charged with Cryptocurrency Fraud SchemeRead the Press Release
BOSTON – The founder of My Big Coin Pay Inc., a purported cryptocurrency and virtual payment services company headquartered in Las Vegas, Nev., was arrested and charged today for his participation in a scheme to defraud investors by marketing and selling fraudulent virtual currency.
Randall Crater, 48, of East Hampton, N.Y., was charged with four counts of wire fraud and three counts of money laundering. Crater was arrested this morning and will appear today in U.S. District Court in the Middle District of Florida. A date for Crater’s initial appearance in the District of Massachusetts has not yet been scheduled.
According to the indictment, Crater and others created the fraudulent virtual currency, “My Big Coins” or “Coins,” which they marketed to investors between 2014 and 2017 using misrepresentations about the nature and value of Coins. Crater and his associates falsely claimed that Coins was a fully functioning cryptocurrency backed by valuable assets such as gold, oil, and other assets. They also falsely told investors that Coins could readily be exchanged for government-backed paper currency or other virtual currencies. As alleged in the indictment, Crater and his associates promulgated these misrepresentations through social media, the internet, email, and text messages.
In reality, Coins were not backed by gold or other valuable assets and were not readily transferable. Over the course of the scheme, it is alleged that Crater misappropriated over $6 million of investor funds for his own personal gain.
In January 2018, the Commodity Futures Trading Commission (CFTC) announced commodity fraud charges against Crater and My Big Coin Inc. The CFTC also filed civil charges against the Chief Executive Officer of My Big Coin, John Roche, and two of Crater’s associates Mark Gillespie and Michael Kruger.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss. The money laundering charges provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000, or twice the value of the criminally derived property. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Peter R. Rendina, Inspector in Charge of the U.S. Postal Inspection Service’s Washington Field Division, made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities & Financial Fraud Unit, and Trial Attorney Caitlin Cottingham of the Criminal Division’s Fraud Section are prosecuting the case. The CFTC also provided valuable assistance with the matter.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Monongalia County man admits to role in a drug distribution operation in Monongalia CountyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Daniel Payne, of Morgantown, West Virginia, has admitted to his involvement in a heroin, oxycodone, and cocaine distribution operation, United States Attorney Bill Powell announced.
Payne, age 31, pled guilty to one count of “Aiding and Abetting Distribution of Heroin.” Payne admitted to selling heroin in July 2017 in Monongalia County.Payne faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Mississippi Man Pleads Guilty to Health Care Fraud for His Role in $200 Million Compounding Pharmacy SchemeRead the Press Release
Hattiesburg, Miss – Howard Randall Thomley, 60, of Hattiesburg, pled guilty yesterday before U.S. District Judge Keith Starrett to a Criminal Information charging him with health care fraud for his role in a $200 million scheme to defraud health care benefit programs, including TRICARE, announced U.S. Attorney Mike Hurst, Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation, Special Agent in Charge Thomas J. Holloman III of IRS Criminal Investigation’s Atlanta Field Office and Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service’s Southeast Field Office.
Thomley will be sentenced by Judge Starrett on July 2, 2019 and faces a maximum penalty of 10 years in federal prison.
During his guilty plea, Thomley admitted that, from approximately August 2012 through January 2016, he conspired with others to carry out a scheme to defraud TRICARE, which is a federally funded health care benefit program that serves United States military personnel and their families.
Thomley owned and operated a company called Advantage Marketing Professionals, which marketed medications for Advantage Pharmacy, a compounding pharmacy in Hattiesburg. For each prescription submitted by Thomley, Advantage Marketing Professionals and Thomley would receive a percentage of the revenue that Advantage Pharmacy obtained from TRICARE.
Thomley and others associated with Advantage Marketing Professionals recruited beneficiaries of TRICARE and paid them a percentage of the revenue from each prescription – including refills – that they and their families accepted, in order to induce the beneficiaries to accept millions of dollars of expensive compounded medications that were not medically necessary. In order to obtain prescriptions, Thomley and his co-conspirators filled out pre-printed prescription forms with the beneficiaries’ names, and obtained prescriber signatures, knowing that the medical professional prescribing the medication had not examined the recruited beneficiaries. Sometimes, the prescribers had previously signed blank prescription forms, which were later filled in by Thomley or his co-conspirators.
Advantage Pharmacy, upon receiving prescriptions, filled the prescriptions, dispensed compounded medications, and submitted claims to TRICARE, received reimbursement, and disbursed a portion of those payments to Thomley.
TRICARE paid approximately $3.6 million in reimbursements for medications sent to the beneficiaries recruited by Thomley and his co-conspirators.
"This nefarious and complex health care fraud scheme was one of the largest in Mississippi's history, and possibly one of the largest in our nation's history," said Special Agent in Charge Freeze. "Billions of taxpayer dollars are lost to heath care fraud each year, and conspiracies against Tricare strip benefits directly from our military's brave men and women and their families. This guilty plea brings this case one step closer to justice and shows the unwavering commitment, of all of the partnering agencies, to uncover, investigate and prosecute dishonest and unethical physicians, health care providers and any others associated with America's health care system. The collective resources of law enforcement at all levels will continue to expose these types of corruption and will actively seek justice for those who participate in these schemes."
This case was investigated by the Federal Bureau of Investigation, Internal Revenue Service - Criminal Investigation, and the Defense Criminal Investigative Service, among other agencies. It is being prosecuted by DOJ Trial Attorneys Kate Payerle and Jared Hasten of the Criminal Division’s Fraud Section, Assistant U.S. Attorneys Mary Helen Wall of the Southern District of Mississippi and Sean Welsh of the Western District of Virginia, formerly of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), with the support and assistance of Trial Attorney Amanda Wick of MLARS.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than 14 billion.
Mission Woman Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Lee Ann Stenstrom a/k/a LeeAnn Stenstrom, age 35, was indicted on February 13, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on February 26, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on December 26, 2018, Stenstrom did forcibly assault, resist, oppose, impede, intimidate, and interfere with a law enforcement officer who was employed by the Rosebud Sioux Tribe Law Enforcement Services, by using a dangerous weapon.
The charge is merely an accusation and Stenstrom is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Stenstrom was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Middletown Man Sentenced to 46 Months in Prison for Stealing from Law Firm, BrotherRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that STEPHEN T. GIONFRIDDO, 68, of Middletown, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 46 months of imprisonment, followed by three years of supervised release, for embezzling more than $500,000 from his former employer, and stealing nearly $400,000 from his brother to pay back his employer.
According to court documents and statements made in court, Gionfriddo was hired by a Rocky Hill law firm as a paralegal in approximately August 2013. Beginning in approximately December 2013, Gionfriddo caused the firm’s bookkeeper to prepare checks payable to various of Gionfriddo’s creditors by misrepresenting that the funds were needed to pay client expenses. Gionfriddo also intercepted numerous checks payable to the law firm or to the firm’s clients, endorsed the checks over to himself, and then deposited the checks into his personal bank account for his own use.
In July 2017, Gionfriddo forged the signature of one of the firm’s partners on a Notice of Certificate Maturity in order to cancel a certificate of deposit (CD) in the name of one of the firm’s clients, and then mailed the form. When the $112,748.21 distribution check representing the proceeds of the client’s CD was mailed to the firm, Gionfriddo intercepted it, forged the signature of the payee, and converted it to his own use.
Through this scheme, Gionfriddo stole $543,372.21 from the law firm and its clients.
In late September 2017, the principals at the law firm confronted Gionfriddo about the theft of funds, and Gionfriddo promised to repay the firm. On October 3, 2017, Gionfriddo called the Thrift Savings Plan (“TSP”), a defined contribution plan for federal employees, and impersonated his brother, who had worked for the federal government, maintains a TSP account, and suffers from a debilitating medical condition. During the call, Gionfriddo obtained information about how to effect a hardship withdrawal of money from the account and have it sent to a bank account he controlled. Gionfriddo also was advised on that call that TSP would issue a Form 1099 in January as a result of the hardship withdrawal.
On October 4, 2017, Gionfriddo faxed a form requesting a withdrawal of $195,000 from his brother’s TSP account for “medical expenses.” Gionfriddo directed the TSP to deposit the funds into a bank account that he controlled.
In an effort to conceal this scheme from his brother, Gionfriddo contacted the U.S. Postal Service and had his brother’s mail held for the entire month of January 2018.
Gionfriddo also stole from his brother’s bank and investment accounts in the total amount of $201,518.
Judge Meyer ordered Gionfriddo to pay restitution of $446,111.67, most of which is owed to Gionfriddo’s brother.
Gionfriddo was arrested on a criminal complaint on June 12, 2018. On November 20, 2018, he pleaded guilty to one count of mail fraud and one count of wire fraud.
Gionfriddo, who is released on bond, was ordered to report to prison on April 1, 2019.
In 2006, Gionfriddo was convicted of federal wire fraud and mail fraud offenses for embezzling more than $633,000 from clients while acting as their attorney. In October 2006, he was sentenced in Hartford federal court to 30 months of imprisonment. To date, he has paid $44,910.66 in restitution to victims of this previous crime.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Susan L. Wines.
Methamphetamine and Heroin Dealer Sentenced to More Than 17 Years in PrisonRead the Press Release
A Tulsa man has been sentenced to federal prison for 15 separate charges, including distribution of heroin and methamphetamine, announced U.S. Attorney Trent Shores. A jury found Darowe Junior Jones, 39, of Tulsa, guilty on Oct. 24, 2018.
Today, U.S. District Judge Claire V. Eagan sentenced Jones to 211 months in prison followed by five years of supervised release.
“Methamphetamine and heroin have exacted too much damage on Oklahoma families. Darowe Jones is an “alpha criminal” who peddled addiction for profit in our Tulsa community,” said U.S. Attorney Trent Shores. “Through the combined efforts of the TPD, FBI and ATF during Operation Alpha, his drug ring has been dismantled. A 17-year federal prison sentence delivers accountability and consequences to Darowe Jones for his involvement in the illegal drug trade. It should also promote deterrence for anyone thinking about stepping into his shoes.”
Jones was arrested on April 17, 2018, on an outstanding felony arrest warrant as part of Operation Alpha, an initiative targeting Tulsa’s most dangerous criminals. Jones was a high volume drug dealer who sold methamphetamine, black-tar heroin, cocaine, ecstasy, marijuana, and Xanax. He conspired with his partners to receive drugs through the mail at various addresses in Tulsa and Broken Arrow, which he later distributed in the Tulsa area. The evidence further showed that Jones sent tens of thousands of dollars in cash over a two-year period to his out-of-state sources of supply to purchase the narcotics.
After his arrest, Jones continued his drug operations by calling his accomplices from jail and directing them to hide evidence, including drug proceeds.
Jones will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Jones was arrested as part of Operation Alpha, a Project Safe Neighborhoods’ initiative. Operation Alpha utilized crime mapping technology to target areas with high rates of crime and focused on the area surrounding 21st Street and Garnett Road in Tulsa. Phase one operations took place from mid-April through mid-June 2018 and resulted in 174 felony arrests and seizure of 106 firearms.
The Tulsa Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI and United States Marshals Service conducted the investigation. Assistant U.S. Attorneys Thomas E. Duncombe, Dennis A. Fries, and Joel-lyn A. McCormick prosecuted the case.
Meth User and Dealer Sentenced to over a Year in Federal Prison for Illegally Possessing a GunRead the Press Release
An Ely woman who was a daily user of methamphetamine and possessed a gun was sentenced on February 22, 2019, to 16 months in federal prison.
Melissa Kurth, age 38, from Ely, Iowa, received the prison term after a September 19, 2018 guilty plea to one count of being an unlawful user of methamphetamine in possession of a firearm.
Kurth was driving a car in Cedar Rapids on January 26, 2018, when she was stopped by officers from the Cedar Rapids Police Department for a traffic violation. During the stop, officers found a Savage Arms rifle and a BB gun in the trunk of the car. The rifle had previously been reported stolen. Officers also located drug paraphernalia and methamphetamine residue in the vehicle. Kurth admitted she was a daily user of methamphetamine and that she also sold up to an ounce of methamphetamine daily in the Cedar Rapids area.
In sentencing Kurth, the judge noted she had a lengthy criminal history which included over 20 criminal convictions. Kurth has prior convictions for driving offenses, thefts, OWI, and attempted burglary.
Kurth was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Kurth was sentenced to 16 months’ imprisonment, with the final 3 months to be served in a residential facility. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Kurth is being held in the United States Marshal’s custody until she can be transported to federal prison.
This case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the investigated by the Cedar Rapids Safe Streets Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The task force is composed of representatives from the Federal Bureau of Investigation and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-00056. Follow us on Twitter @USAO_NDIA.
Meriden Man Sentenced to More Than 5 Years in Federal Prison for Trafficking CocaineRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOEL CRUZ, 36, of Meriden, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 63 months of imprisonment, followed by five years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, on September 2, 2017, Cruz engaged Milford and Connecticut State Police in a high-speed chase from I-95 in Milford to I-91 in New Haven. During the chase, Cruz threw a package containing approximately one kilogram of cocaine from his vehicle. When he was apprehended in the area of Exit 5 on I-91, he possessed $34,360 in cash.
On August 30, 2018, Cruz pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine.
CRUZ has forfeited the cash seized at the time of his arrest.
CRUZ, who was released on bond, was remanded to the custody of the U.S. Marshals Service at the conclusion of today’s court proceeding.
This matter was investigated by the FBI’s New Haven Safe Streets/Gang Task Force, Connecticut State Police and Milford Police Department. The Task Force includes members from the New Haven Police Department, Milford Police Department, West Haven Police Department and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Nathaniel J. Gentile.
McKeesport Felon Charged with Unlawful Possession of Pistol and AmmunitionRead the Press Release
PITTSBURGH, PA - A resident of McKeesport, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of federal firearms violations, United States Attorney Scott W. Brady announced today.
The one-count Indictment returned on February 26, named Eric Antoin Johnson, 22, as the sole defendant.
According to the Indictment, from on or about January 21 through on or about January 29, 2019, Johnson unlawfully possessed an Intratec model AB10 9 millimeter pistol and 9 millimeter ammunition, after having been convicted of robbery and assault, crimes punishable by more than one year in prison. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from lawfully possessing a firearm or ammunition.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christy Criswell Wiegand is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives along with the Findlay Township Police Department conducted the investigation leading to the Indictment in this case. The case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Man Pleads Guilty to Murdering Postal Worker in Fit of Road RageRead the Press Release
A Los Angeles man today pleaded guilty to murdering a postal worker during a road rage incident in Dallas last February, announced U.S. Attorney Erin Nealy Cox.
Donnie Arlondo Ferrell, 26, admits he shot and killed U.S. Postal Service employee Tony Mosby, who was behind the wheel of a USPS vehicle, on Feb. 19, 2018.
According to plea papers, Mr. Ferrell – one of three passengers inside a Mazda traveling eastbound on I-30 – became incensed at something he perceived Mr. Mosby had done on the freeway. He leaned out of the Mazda and fired four shots at the USPS vehicle.
Mr. Ferrell then watched as the USPS vehicle crashed into a retaining wall on the freeway.
When Mr. Ferrell later learned Mr. Mosby had been killed by a bullet to the head, Mr. Ferrell instructed the Mazda’s other passengers not to discuss the incident with anyone else.
When law enforcement attempted to arrest Mr. Ferrell two days later, he retreated into his residence and refused to surrender for several hours, according to his plea papers.
This morning, Mr. Ferrell pleaded guilty to one count of murder of an employee of an agency of the United States government, and one count of discharging a firearm during a crime of violence. He faces up to life in prison.
“It was devastating to learn of the senseless act of violence that took the life of a federal postal employee while on the job in our district,” said U.S. Attorney Nealy Cox. “I’m gratified we could bring the perpetrator to justice. My heart goes out to Mr. Mosby’s family and friends.”
“The wanton road rage murder of Postal Employee Tony Mosby by Donnie Ferrell was senseless and tragic,” said Damon E. Wood, Acting Inspector in Charge of the U.S. Postal Inspection Service’s Fort Worth Division. “Postal Inspectors will ensure an offense like this is investigated and the perpetrators are prosecuted to the fullest extent of the law. I’d like to thank the U.S. Attorney’s Office, Northern District of Texas, for their assistance and guidance. I would also like to thank the Dallas Police Department and the Federal Bureau of Investigation for their partnership in this investigation.”
A codefendant, Bei-jing Tashawna Walker, accused of accessory after the fact, entered a plea of not guilty last March.
The U.S. Postal Inspection Service conducted the investigation with assistance from the Dallas Police Department and the Federal Bureau of Investigation. U.S. Attorneys P.J. Meitl and John Kull prosecuted the case.
Long Island Man Sentenced to 19 Years’ Imprisonment for Transporting Child PornographyRead the Press Release
Earlier today, in federal court in Central Islip, Brian Newton was sentenced to 19 years’ of imprisonment by United States District Judge Joseph F. Bianco following the defendant’s guilty plea on May 3, 2018 to transportation of child pornography in interstate and foreign commerce. As part of his sentence, Newton must serve five years’ supervised release following his imprisonment, during which time he must remain registered as a sex offender and not have unsupervised contact with minors.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Newton, despite being a registered sex offender, again chose to victimize children by sharing images of their abuse with others online, conduct that is deserving of a substantial prison sentence and underscores a message of deterrence to others,” stated United States Attorney Donoghue. “The protection of innocent children is a priority of utmost importance for this Office and our law enforcement partners. We will continue to work tirelessly to ensure that those who victimize children will be arrested and prosecuted to the full extent of the law.” Mr. Donoghue extended his grateful appreciation to the FBI New York Crimes Against Children Task Force for its investigative work and assistance.
“Child pornography is not an abstract crime. It is a direct byproduct of the sexual abuse of innocent children – in this instance, including infants and toddlers,” stated FBI Assistant Director-in-Charge Sweeney. “And though he was already on probation for a prior child pornography conviction, Newton continued and even escalated his depraved actions, sharing child pornography while sexually soliciting minor children online. Today’s sentence provides a measure of justice for Newton’s victims, and protects those he sought to victimize. The FBI’s Human Trafficking and Child Exploitation Task Force and our partners are committed to investigating and prosecuting anyone who seeks to harm children.”
Newton, who at the time of the charged offense was on probation from a conviction in Suffolk County in 2014 for possession of child pornography, was caught trading child pornography including sadistic depictions of the sexual abuse of infants and toddlers. During the execution of a search warrant at his residence, law enforcement seized Newton’s large collection of child pornography, including hundreds of videos and thousands of images. After his arrest, Newton admitted engaging in conversations with minors over internet chat platforms, as well as sending nude images of himself to minors and soliciting nude images from minors.
This prosecution is part of Project Safe Childhood, a nationwide initiative led by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Lara T. Gatz and Michael R. Maffei are in charge of the prosecution.
The Defendant:
BRIAN JOSEPH NEWTON
Age: 38
East Northport, New YorkE.D.N.Y. Docket No. 17-CR-341 (JFB)
Lockport Man Sentenced to 14 Years in Prison for Selling Fentanyl That Resulted in DeathRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Pablo Lugo III, 23, of Lockport, NY, who was convicted of possession with intent to distribute, and distribution, of fentanyl, was sentenced to serve 168 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorneys Meghan A. Tokash and Joseph M. Tripi, who handled the case, stated that on March 29, 2015, Lockport Police Officers responded to 152 Caledonia Street and found an individual, K.R., deceased. Officers recovered four reddish paper wrappers in the bathroom, one of which was tested at the Niagara County Sheriff’s Office Forensic Laboratory and determined to contain fentanyl. An autopsy determined that K.R. died of acute fentanyl intoxication.
Text messages recovered from K.R.’s cellular phone revealed that on March 28, 2015, K.R. communicated with Lugo between 12:22 p.m. and 12:51 p.m. K.R. died shortly after the text message exchange. The defendant admits that K.R.’s death resulted from the drugs he gave to K.R.
Today’s sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Niagara County Drug Enforcement Task Force, under the direction of Sheriff James Voutour; and the Lockport Police Department, under the direction of Acting Chief Steven Preisch.
Leader of Multi-Million Dollar Narcotics Trafficking Conspiracy Pleads GuiltyRead the Press Release
ALEXANDRIA, Va. – An international narcotics trafficker from the Dominican Republic pleaded guilty yesterday evening to leading and organizing a multi-million dollar conspiracy to purchase 100 kilograms of cocaine.
According to court documents, Luis Rafael Tavarez, aka El Primo, 36, traveled from New York to Northern Virginia on October 23, 2018 with co-conspirators Manny Lizardo and Luis Liriano-Toribio to obtain 100 kilograms of cocaine in exchange for $2.5 million in cash. Law enforcement seized over $1.15 million in cash at the time of the Tavarez’s arrest.
On several occasions in September and October 2018, Tavarez reaffirmed his desire to travel to Virginia to conduct a large drug transaction whereby he would pay $25,000 per kilogram of cocaine. In connection with this multi-million dollar deal, Tavarez sought an additional vehicle, known to narcotics traffickers as a “trap vehicle,” to split large amounts of cocaine into separate cars in order to minimize the risk of potentially losing the entire shipment or load of the drugs in the event that law enforcement stopped one of the vehicles. In furtherance of the conspiracy, Tavarez used multiple telephones, an alias, and encrypted communication platforms because he believed those measures would minimize the risk of law enforcement detection.
Tavarez admitted that Lizardo and Liriano-Toribio traveled to Northern Virginia to assist him in trafficking and/or transporting the large shipment of cocaine back to New York. Tavarez served as the leader and organizer of the operation, and was arrested at a hotel in Vienna in possession of over $1 million dollars in cash. Lizardo and Liriano-Toribio were arrested in a parking garage in Fairfax attempting to take possession of the cocaine.
Tavarez faces a mandatory minimum term of 10 years in prison and a maximum penalty of life in prison when sentenced on May 24. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Colonel Gary T. Settle, Superintendent of Virginia State Police, Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after the plea was accepted by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Raj Parekh is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-426.
Leader of Timeshare Resale Fraud Scam Targeting Elderly Victims Sentenced to Five Years in Prison for $3.37 Million in LossesRead the Press Release
LAS VEGAS, Nev. – The leader of a large-scale timeshare resale scam was sentenced today to 63 months in federal prison for defrauding more than 1,000 victims, many of them elderly, out of more than $3.3 million, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
“Today’s sentence demonstrates law enforcement’s commitment to protecting vulnerable elder populations in Nevada,” said U.S. Attorney Trutanich. “Elder fraud and exploitation can have a crippling effect on victims, and federal prosecutors will pursue financial fraudsters who exploit our most vulnerable for personal and financial gain.”
Daniel Martin Boyar, aka “Wolf,” 64, of Orlando, Florida, previously pleaded guilty to conspiracy to commit mail fraud and wire fraud, two counts of mail fraud, and two counts of wire fraud. In addition to the prison term, U.S. District Judge James C. Mahan sentenced Boyar to three years of supervised release and ordered him to pay $3.37 million in restitution to the victims of the fraud scheme.
Between October 2010 to April 2012, Boyar, the admitted leader of the scheme, and his 20 co-conspirators devised and participated in a telemarketing scam to defraud more than 1,000 timeshare owners out of more than $3.3 million dollars. Using stolen data to identify timeshare owners, the defendants promised to sell the timeshares in return for the owner paying in advance half of the costs associated with the purported sales. There were no buyers and the timeshare sales never occurred. This is a common criminal telemarketing scheme known as “the buyer’s pitch.” Boyar was directly responsible for more than $3.3 million in losses to the victims.
The scam operated out of Orlando, Florida, under numerous business names including Holiday Advertising, First Capital Financial Services Corporation, Professional Concepts LLC, TeleTeton Corporation, Redline Funding LLC, Great West Funding Incorporated, Equity Financial Services LLC, Beneficial Business Solutions, Eastern Enterprises LLC, Vacation Funding Partners LP, Property, People, Travel, and Community Funding Corporation, using fake front companies in various cities across the United States, including Las Vegas, Nevada. Boyar and his co-conspirators would use false identities and lease temporary office spaces around the country. This allowed them to establish front companies using inactive companies which made the scam appear legitimate. Using voice-over-internet phone systems, they spoofed telephone numbers that made it appear that they were calling from the location of the fake front company. Callers in the scheme pretended to be in the distant office, using the internet to track the weather and local news in the location of the fake front company and inviting victims to view the leased building on mapping websites. The conspirators created websites with materially false and misleading information to include customer testimonials, company officers, and press releases.
Twenty of Boyar’s co-conspirators were charged and have pleaded guilty for their involvement in this fraud scheme. Six, in addition to Boyar, have been sentenced. The remainder await sentencing.
The case was investigated by the FBI, the U.S. Postal Inspection Service, and the Florida Department of Agriculture and Consumer Services. Assistant U.S. Attorney Dan Cowhig prosecuted the case.
Consumers should use caution when previously unknown telemarketers offer unsolicited services. It is relatively easy for scam artists to create the appearance of legitimacy for a fraudulent business front by manipulating information available through the Internet. Fraudsters frequently are able to buy or steal information related to their intended victims that the victim believed was confidential, helping the fraudster trick the victim into believing the fraudster is part of a legitimate business.
Elder fraud complaints may be filed with the Federal Trade Commission at www.ftccomplaintassistant.gov or at 1-877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime at www.ovc.gov. Additional elder justice resources, training, and outreach materials can be found at the Elder Justice Website at www.elderjustice.gov.
###
Kentwood Man Pleads Guilty to Interstate Threat to U.S. SenatorRead the Press Release
GRAND RAPIDS, MICHIGAN — United States Attorney Andrew Birge announced today that Rick Lynn Simmons, 52, of Kentwood, Michigan pleaded guilty before a U.S. Magistrate Judge to one count of making an interstate telephone call to the Camden, New Jersey office of U.S. Senator Cory Booker and leaving a voicemail message with a threat to injure Senator Booker, in violation of 18 U.S.C. § 875(c). Simmons faces a maximum of 5 years’ imprisonment, 3 years’ supervised released, and a $250,000 fine. A sentencing hearing is scheduled for June 5, 2019, before U.S. District Judge Janet T. Neff.
Simmons admitted at the plea hearing that he placed a call in the evening of October 26, 2018 from his Kent County, Michigan home to Senator Booker’s office and left a vulgarity-filled voicemail message that threatened to "put a nine millimeter" into the Senator’s face.
"No individual, whether a public official or a member of the public, deserves to field threatening messages designed to dehumanize, intimidate and terrorize," U.S. Attorney Birge said.
"The FBI works closely with the U.S. Capitol Police to investigate threats to harm or kill public officials wherever those threats originate," said FBI Detroit Field Office Special Agent in Charge Timothy R. Slater. "In this case, the targeted individual was a Senator, but we remain committed to safeguarding the rights of all individuals."
The case was jointly investigated by the U.S. Capitol Police, Kentwood Police Department, and the FBI - Grand Rapids Violent Crime Task Force – which includes the Grand Rapids Police Department, the Michigan Department of Corrections, and the FBI. Assistant U.S. Attorney Clay M. West is prosecuting the case.
END
Jury convicts former Jefferson Parish justice of the peace of financial fraudRead the Press Release
SHREVEPORT, NEW ORLEANS, LAFAYETTE, La. – United States Attorney David C. Joseph announced today that a former Justice of the Peace for the Second Justice Court of Jefferson Parish was convicted by a federal jury in New Orleans for using his position to illegally obtain wage garnishments and loans. The jury returned its guilty verdict after deliberating for approximately three hours, ending a trial that began Tuesday, February 19, 2019.
Patrick Hale Dejean, 40, was found guilty this afternoon, of 13 counts of mail fraud and three counts of making false statements to a bank.
“Public corruption by our elected officials will not be tolerated in Louisiana,” said Joseph. “In this case, the Justice of the Peace targeted some of the most vulnerable members of our society and stole their hard earned wages, defrauded banks, and abused the trust placed in him by the public. This verdict should serve as a warning to other Louisiana public officials who may intend to use elected office to line their own pockets.”
Evidence presented at trial proved that from May 2009 through August 2016, Dejean diverted money from a Second Justice Court bank account for his personal use and made false statements to a bank to improperly borrow money on behalf of the court, which he later spent on himself.
During the trial, jurors heard evidence that Dejean systematically abused the Second Justice Court’s garnishment procedures to defraud creditors and debtors with business before the court. As a Justice of the Peace, Dejean judged small claims civil cases for creditors seeking payment from customers who were behind in their payments. If a judgment was obtained by the creditor, Dejean issued garnishment judgments instructing employers of the debtors to send wage garnishments to the Second Justice Court.
Evidence presented at trial proved that Dejean improperly used this process to enrich himself by failing to forward the proper amounts of the wage garnishments collected to the creditors and instead spent the money on himself, primarily to gamble at local casinos. In order to facilitate his scheme, Dejean would continue to garnish the wages on unsuspecting debtors after they had already paid the amount owed under the judgment.
The jury also found that Dejean lied on bank applications in 2012 and 2013 to influence First Bank and Trust to lend more than $50,000 to the Second Justice Court. Dejean applied for bank loans on behalf of the court despite knowing that the court was prohibited by Louisiana law from borrowing money. Rather than using the loan proceeds for expenses related to the court, Dejean gambled with the money and otherwise used it for personal expenses.
Dejean faces up to 20 years in prison for each mail and wire fraud count and up to 30 years in prison for each count related to making a false statement to a bank. United States District Judge Mary Ann Vial Lemmon set Patrick Dejean’s sentencing for May 23, 2019.
The U.S. Attorney’s Office for the Western District of Louisiana is prosecuting the case because the U.S. Attorney’s Office for the Eastern District of Louisiana is recused from the case.
The FBI, Louisiana Legislative Auditor, New Orleans Metropolitan Crime Commission, and Jefferson Parish Sheriff’s Office conducted the investigation. U.S. Attorney David C. Joseph and Assistant U.S. Attorneys John Luke Walker and David J. Ayo prosecuted the case.
Illegal Alien Pleads Guilty After Arrest on Drug, Assault and Firearm ChargesRead the Press Release
RICHMOND, Va. – A Mexican citizen pleaded guilty today to illegally reentering the United States after removal and committing further crimes that resulted in his arrest on drug, assault and firearm charges.
According to court documents, Mexican citizen Linaldo Martinez Hernandez, 30, first illegally entered the United States on the Texas border. In 2008, he was apprehended by immigration authorities in North Carolina and removed at taxpayer expense from the United States to Mexico. Thereafter, on an unknown date, Martinez Hernandez illegally reentered the United States a second time. On January 14, ICE learned Martinez Hernandez had been arrested in Richmond for drug, assault, and firearm charges.
Hernandez pleaded guilty to illegal reentry and faces a maximum penalty of two years in prison when sentenced on May 16. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Jeffrey M. Jacoff, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after U.S. Magistrate Judge David J. Novak accepted the plea. Assistant U.S. Attorney S. David Schiller is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-22.
Hartford Man Sentenced to 37 Months in Federal Prison for Gun and Drug OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MANUEL ASHLEY, also known as “Fresh,” 27, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 37 months of imprisonment, followed by three years of supervised release, for firearm and drug offenses.
According to court documents and statements made in court, on May 31 and June 1, 2017, Ashley sold approximately 90 bags containing a mixture of heroin and fentanyl to another individual.
Hartford Police arrested Ashley on June 6, 2017, after he sold a stolen .380 caliber pistol to another individual. On that date, a search of Ashley’s Babcock Street residence revealed 44 bags containing a mixture of heroin and fentanyl.
Ashley has been detained since his arrest. On November 26, 2018, he pleaded guilty to one count of possession with intent to distribute heroin and fentanyl, and one count of possession of a firearm by a convicted felon.
Ashley’s criminal history includes multiple state felony convictions.
This investigation was conducted by the Hartford Police Department’s Vice and Narcotics Division and the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
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.
Harlem man sentenced for domestic abuseRead the Press Release
GREAT FALLS—Harlem resident Tristen Jace Gone, who admitted hitting his domestic partner, was sentenced today to three years in federal prison and two years of supervised release, U.S. Attorney Kurt Alme said.
Gone, 19, pleaded guilty in November to domestic abuse by a habitual offender.
U.S. District Judge Brian M. Morris presided.
Prosecutors said evidence showed that Gone punched the victim in the face and arm and threw her down after she received a court subpoena on July 9, 2018 in Newtown on the Fort Belknap Indian Reservation. Gone has two prior domestic convictions from Fort Belknap Tribal Court.
Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the Fort Belknap Tribal Police and FBI.
XXX
Fugitive Sought in Violent Crime SpreeRead the Press Release
CORPUS CHRISTI, Texas – A federal grand jury in Corpus Christi has returned an indictment against two local men for multiple felonies, including carjacking and weapons charges, announced U.S. Attorney Ryan K. Patrick.
The six-count indictment was returned today against Carlos Moreno, 25, and Leonard Reyna, 24, both of Corpus Christi. They are charged with robbery, carjacking, brandishing a firearm during a crime of violence, discharging a firearm during a crime of violence each for being previously convicted felons in possession of firearms.
Reyna was already in custody on the charges and is expected to make his initial appearance before a U.S. magistrate judge in the near future. Moreno is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the U.S. Marshals service at 1-800-336-0102.
According to the allegations, on Aug. 26, 2018, the Corpus Christi Police Department (CCPD) responded to an aggravated robbery at the Corpus Christi Trade Center located in the 2800 block of South Padre Island Drive. Upon arrival, officers discovered that a group of males had allegedly approached a local jewelry store displaying handguns and demanded several items of jewelry. The men then fled on foot out the back alley of the location, according to the criminal complaint, originally filed on the case. At the scene, officers allegedly recovered several rounds of 9mm and .45 caliber ammunition and a set of keys belonging to a nearby vehicle.
Court documents further allege that as officers continued to investigate, CCPD received another call, this time involving a shooting at the Stripes convenience store located in the 6000 block of Ayers. When officers responded to that location, they found a victim laying inside the store, according to the charges. He claimed he had been parked in his vehicle when two males approached and pointed a gun at him, demanding the keys to his truck. He refused. The charges allege that one of the men then fired, striking the victim in the left arm and stomach. The two males then allegedly fled the location.
Court records indicate that witnesses at the scene provided a physical description of the males that matched the suspects at the earlier Trade Center robbery.
If convicted of carjacking, both men face up to 25 years in federal prison, while the robbery carries up to 20 years of imprisonment. For being felons in possession of firearms, they could also receive a 10-year-maximum term of imprisonment. For brandishing and discharging a weapon during a crime of violence, the punishment is seven and 10 years minimum, respectively, which must be served consecutively to any other prison term imposed. In addition, each charge carries a possible fine of up to $250,000
CCPD and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Former Washington State Bank CEO Pleads Guilty to Multi-Year Tax Fraud of More than $865,000Read the Press Release
The former Chief Executive Officer of a Pacific Northwest community bank pleaded guilty today in U.S. District Court in Wisconsin to filing a false tax return, announced U.S. Attorney Brian T. Moran. VICTOR KARPIAK, 64, now of La Crosse, Wisconsin, admits that between 2010 and 2016 he failed to report more than $2.3 million in income on his taxes. KARPIAK previously served as President and CEO of First Savings Bank Northwest based in Renton, Washington. He retired in 2013 and moved from the Seattle area. KARPIAK was charged in the Western District Washington, but chose to have the case resolved near his new home in Wisconsin. Sentencing by U.S. District Judge William M. Conley is scheduled for May 17, 2019.
According to the facts admitted as part of his plea, between 2010 and 2016, KARPIAK served as a trustee and consultant for a woman who was the beneficiary of a family and a marital trust. Over those years KARPIAK paid himself fees of $3,265,072 but on his taxes KARPIAK reported less than a third of that income ($943,322). The tax loss on more than $2,321,750 in income is $867,540. In the plea agreement KARPIAK agreed to pay $867,540 to the IRS as well as any interest or civil penalties the IRS imposes in the case. The interest alone in this case could total more than $143,647.
Filing a false tax return is punishable by up to three years in prison and a $250,000 fine or twice the gross tax gain or loss. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and is being prosecuted by Assistant United States Attorneys Steven Masada of the Western District of Washington and Elizabeth Altman of the Western District of Wisconsin.
Former Operator of Illegal Booter Services Pleads Guilty to Conspiracy to Commit Computer Damage and AbuseRead the Press Release
An Orland Park, Illinois man pleaded guilty today to one count of conspiracy to cause damage to internet-connected computers for his role in owning, administering, and supporting illegal booter services that launched millions of illegal DDoS attacks against victim computer systems in the United States and elsewhere. The illegal services included ExoStress.in, (“ExoStresser”), QuezStresser.com, Betabooter.com (“Betabooter”), Databooter.com, Instabooter.com, Polystress.com, and Zstress.net.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Robert J. Higdon Jr. for the Eastern District of North Carolina, made the announcement.
According to the criminal information, Sergiy P. Usatyuk, 20, combined with a co-conspirator to develop, control and operate a number of booter services and booter-related websites from around August 2015 through November 2017 that launched millions of DDoS attacks that disrupted the internet connections of targeted victim computers, rendered targeted websites slow or inaccessible, and interrupted normal business operations. For instance, as of Sept. 12, 2017, ExoStresser advertised on its website (exostress.in) that its booter service alone had launched 1,367,610 DDoS attacks, and caused targeted victim computer systems to suffer 109,186.4 hours of network downtime.
“Booters” or “Stressers” are a class of publicly-available, web-based services that allow cybercriminals to launch distributed denial-of-service, or DDoS, attacks that overwhelm a target computer system with unrequested traffic and, in turn, “boot” or “drop” the victim from the internet for a relatively small fee or no fee at all. To launch a DDoS attack using a booter, a cybercriminal often needs only a web browser and online payment tool to subscribe to a provider, provide instructions for attacking a victim computer system, and deliver payment.
The DDoS attacks launched by the booters also harmed computer systems that were not directly targeted. For example, according to the criminal information, in November 2016, a Betabooter subscriber launched a series of DDoS attacks against a school district in the Pittsburgh, Pennsylvania area that not only disrupted the school district’s computer systems, but affected the computer systems of 17 organizations that shared the same computer infrastructure, including other school districts, the county government, the county’s career and technology centers, and a Catholic Diocese in the area.
During the period of the conspiracy, Usatyuk and a co-conspirator gained in excess of $550,000 from charging subscriber fees to paying customers of their booter services and selling advertising space to other booter operators.
“For over two years, Sergiy Usatyuk conspired to launch millions of DDoS attacks that paralyzed the computer systems of U.S. organizations for more than 100,000 hours,” said Assistant Attorney General Benczkowski. “The Criminal Division and our law enforcement partners will remain vigilant in protecting the American public by prosecuting the cybercriminals responsible for these sophisticated and harmful schemes.”
“DDoS-for-hire services pose a malicious threat to the citizens of our district, as well as districts across the country, by impeding critical access to the internet and jeopardizing safety and security in the process,” said U.S. Attorney Higdon. “The operation and use of these services to disrupt the operations of our businesses and other institutions cannot be tolerated. Anyone who weaponizes web traffic in this manner will be vigorously pursued and prosecuted by my office.”
Over the past five years, booter and stresser services have grown as an increasingly prevalent class of DDoS attack tools. Booter-based DDoS attack tools offer a low barrier to entry for users looking to engage in cybercrime.
For additional information on booter and stresser services and the harm that they cause, please visit: https://www.ic3.gov/media/2017/171017-2.aspx.
If you believe you are a victim of this offense, please visit https://www.justice.gov/usao-ednc/united-states-v-sergiy-usatyuk or email [email protected].
The investigation was conducted by special agents of the FBI Charlotte Field Office, Raleigh Resident Agency. Additional assistance was provide by FBI’s Chicago and Miami Field Offices, as well as the Defense Criminal Investigative Service.
The case is being prosecuted by Trial Attorney Aarash Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Adam Hulbig of the Eastern District of North Carolina.
Former Operator of Illegal Booter Services Pleads Guilty to Conspiracy to Commit Computer Damage and AbuseRead the Press Release
WASHINGTON – An Orland Park, Illinois man pleaded guilty today to one count of conspiracy to cause damage to internet-connected computers for his role in owning, administering, and supporting illegal booter services that launched millions of illegal DDoS attacks against victim computer systems in the United States and elsewhere. The illegal services included ExoStress.in, (“ExoStresser”), QuezStresser.com, Betabooter.com (“Betabooter”), Databooter.com, Instabooter.com, Polystress.com, and Zstress.net.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Robert J. Higdon Jr. for the Eastern District of North Carolina, made the announcement.
According to the criminal information, Sergiy P. Usatyuk, 20, combined with a co-conspirator to develop, control and operate a number of booter services and booter-related websites from around August 2015 through November 2017 that launched millions of DDoS attacks that disrupted the internet connections of targeted victim computers, rendered targeted websites slow or inaccessible, and interrupted normal business operations. For instance, as of Sept. 12, 2017, ExoStresser advertised on its website (exostress.in) that its booter service alone had launched 1,367,610 DDoS attacks, and caused targeted victim computer systems to suffer 109,186.4 hours of network downtime.
“Booters” or “Stressers” are a class of publicly-available, web-based services that allow cybercriminals to launch distributed denial-of-service, or DDoS, attacks that overwhelm a target computer system with unrequested traffic and, in turn, “boot” or “drop” the victim from the internet for a relatively small fee or no fee at all. To launch a DDoS attack using a booter, a cybercriminal often needs only a web browser and online payment tool to subscribe to a provider, provide instructions for attacking a victim computer system, and deliver payment.
The DDoS attacks launched by the booters also harmed computer systems that were not directly targeted. For example, according to the criminal information, in November 2016, a Betabooter subscriber launched a series of DDoS attacks against a school district in the Pittsburgh, Pennsylvania area that not only disrupted the school district’s computer systems, but affected the computer systems of 17 organizations that shared the same computer infrastructure, including other school districts, the county government, the county’s career and technology centers, and a Catholic Diocese in the area.
During the period of the conspiracy, Usatyuk and a co-conspirator gained in excess of $550,000 from charging subscriber fees to paying customers of their booter services and selling advertising space to other booter operators.
“For over two years, Sergiy Usatyuk conspired to launch millions of DDoS attacks that paralyzed the computer systems of U.S. organizations for more than 100,000 hours,” said Assistant Attorney General Benczkowski. “The Criminal Division and our law enforcement partners will remain vigilant in protecting the American public by prosecuting the cybercriminals responsible for these sophisticated and harmful schemes.”
“DDoS-for-hire services pose a malicious threat to the citizens of our district, as well as districts across the country, by impeding critical access to the internet and jeopardizing safety and security in the process,” said U.S. Attorney Higdon. “The operation and use of these services to disrupt the operations of our businesses and other institutions cannot be tolerated. Anyone who weaponizes web traffic in this manner will be vigorously pursued and prosecuted by my office.”
Over the past five years, booter and stresser services have grown as an increasingly prevalent class of DDoS attack tools. Booter-based DDoS attack tools offer a low barrier to entry for users looking to engage in cybercrime.
For additional information on booter and stresser services and the harm that they cause, please visit: https://www.ic3.gov/media/2017/171017-2.aspx.
The investigation was conducted by special agents of the FBI Charlotte Field Office, Raleigh Resident Agency. Additional assistance was provide by FBI’s Chicago and Miami Field Offices, as well as the Defense Criminal Investigative Service.
The case is being prosecuted by Trial Attorney Aarash Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Adam Hulbig of the Eastern District of North Carolina.
Former District Government Employee Pleads Guilty to Carrying Out Embezzlement SchemeRead the Press Release
WASHINGTON – A former policy analyst for the District of Columbia Department of Human Services (DHS) pled guilty today to a federal charge stemming from a scheme in which he collected more than $400,000 in fraudulent benefits meant for needy District residents.
Gary T. Holliday, 49, of Fort Washington, Md., pled guilty in the U.S. District Court for the District of Columbia to a charge of wire fraud.
The announcement was made by U.S. Attorney Jessie K. Liu, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office, District of Columbia Inspector General Daniel W. Lucas, and Special Agent in Charge Maureen R. Dixon of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.
Holliday is to be sentenced on June 6, 2019 by the Honorable Rudolph Contreras. The charge carries a statutory maximum of 20 years in prison. Under federal sentencing guidelines, Holliday faces an estimated range of 33 months to 41 months in prison. He also has agreed to pay $404,831 in restitution and a forfeiture money judgment of at least $400,000.
According to plea documents, Holliday embezzled money intended to provide temporary support and assistance to low-income families and individuals. Specifically, he targeted the Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamps program, and Temporary Assistance for Needy Families (TANF), which consists of cash benefits. Benefits in both programs were provided to clients via electronic benefit cards.
Holliday’s job responsibilities at DHS included representing the agency at “fair hearings” that involved disputes between DHS and its clients about eligibility and benefits. In cases where the agency lost the hearing, Holliday was responsible for creating a memorandum summarizing the conclusions of the hearing and directing another employee at DHS to calculate and pay whatever “underpayments” the client was owed. Holliday created and submitted a fraudulent memorandum, dated June 19, 2017, in which he falsely claimed that as a result of a purported fair hearing, a client of DHS needed to be processed for SNAP and TANF underpayments.
In fact, the named client had not applied for benefits (the client’s alleged application had been forged by Holliday) and there had never been a fair hearing regarding the client’s eligibility for benefits. As a result of the Holliday’s actions, another employee created an active underpayment account for the client in the DHS computer system. Then, between June 2017 and November 2018, Holliday used his access to the DHS computer system to create over 400 fraudulent underpayments for the client, totaling in excess of $400,000. He accessed the fraudulent proceeds by using the client’s benefit card.
This case is being investigated by the FBI’s Washington Field Office, the District of Columbia Office of the Inspector General, and the U.S. Department of Health and Human Services Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Emily A. Miller, with assistance from Paralegal Specialist Aisha Keys
Former Des Moines Resident Sentenced to 40 Years in Prison for Child Pornography OffensesRead the Press Release
DES MOINES, Iowa—On February 25, 2019, Joel Thomas Augard, 50, formerly of Des Moines, appeared before United States District Court Chief Judge John A. Jarvey and was sentenced to forty years in prison for two counts of production of child pornography and one count of possession of child pornography. Augard pleaded guilty to the offenses on October 22, 2018. Following completion of his prison term, Augard will be required to register as a sex offender and will be on supervised release for twenty years.
In April 2018, a victim reported to the Des Moines Police Department that the victim had been sexually abused on multiple occasions by Augard in Des Moines approximately 10 years earlier, when the victim was a child and Augard video recorded some of the sexual abuse. Law enforcement from several different agencies worked together to investigate these crimes. On May 1, 2018, investigators executed a search warrant at a residence in Cherokee, Iowa, where Augard was residing at that time. Police located several items of electronic media that contained child pornography. These items included videos made by Augard that depicted his sexual abuse of the victim approximately ten years earlier in Des Moines.
In announcing the sentence, United States Attorney Krickbaum stated, “All victims of sexual abuse should know they can report their abuse to law enforcement, even if many years have passed. We will take your report seriously, and we will fight for justice on your behalf.”
This case was investigated by the Iowa Division of Criminal Investigation’s Internet Crimes Against Children Task Force, Des Moines Police Department, Polk County Attorney’s Office and FBI Child Exploitation Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.Florida Man Pleads Guilty to Sweepstakes Scheme Targeting Elderly Missouri ResidentRead the Press Release
St. Louis, MO – Fernando Reyes, 38, a resident of Florida, pled guilty today to federal charges of conspiracy to commit mail fraud and mail fraud. He appeared in federal court this morning before U.S. District Judge Catherine Perry who accepted his guilty plea and set sentencing for June 7, 2019.
According to court documents, beginning in April 2016, a Missouri resident over the age of 80 began receiving telephone calls from unknown individuals that he had won large sums of money through a sweepstakes. In order to secure his winnings, the Missouri resident was advised to mail various amounts of money to an individual in New Hampshire and Reyes in Florida. The callers identified Reyes was identified as a federal attorney. That representation was false as Reyes was not, and had never been, affiliated with the United States Department of Justice or any other federal agency or department.
Reyes received four checks totaling $53,000, and deposited them into his personal financial accounts. After the deposits, Reyes electronically transmitted a portion of the funds to an individual in Costa Rica, and kept the remaining funds for his personal use.
Reyes also admitted engaging in similar conduct with a resident of the Northern District of Alabama, and received $45,000 from that elderly individual.
Reyes faces up to 20 years’ imprisonment, a fine of more than $250,000 or both per count. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Postal Inspection Service. Assistant U.S. Attorney Tracy Berry is handling the case for the U.S. Attorney’s Office as part of the United States Department of Justice on-going effort to combat elder fraud nationwide. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
Florida Home Health Services Company Owner and Co-Conspirator Sentenced to Prison for Role in $8.6 Million Health Care Fraud SchemeRead the Press Release
A home health services company owner and a co-conspirator, both Miami, Florida residents, were sentenced to prison today for their roles in a $8.6 million health care fraud scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Miami Air and Marine Branch Director Martin G. Wade of the U.S. Customs and Border Protection (CBP) Air and Marine Operations made the announcement.
Alexander Ros Lazo (Ros Lazo), 54, the owner of T.L.C. Health Services of Miami, was sentenced to serve 87 months in prison. Misleady Ibarra, 46, who performed home health therapy services without a license, was sentenced to serve 24 months in prison. The defendants were sentenced by U.S. Circuit Judge Adalberto Jordan sitting in the Southern District of Florida. Judge Jordan also ordered Ros Lazo to pay $8,603,859 in restitution and to forfeit the same amount, and Ibarra to pay restitution in an amount to be determined. Ibarra and Ros Lazo pleaded guilty in December 2018 to one count of conspiracy to commit health care fraud. Both defendants were charged in an indictment returned on June 21, 2018.
As part of his guilty plea, Ros Lazo admitted that he paid kickbacks and bribes to his co-conspirators in exchange for home health services prescriptions and the referral of Medicare beneficiaries to T.L.C. Health Services. He further admitted that he and Ibarra agreed with their co-conspirators to commit health care fraud by billing Medicare for physical therapy services performed by Ibarra on behalf of licensed therapists despite knowing that she was not licensed to render those services to the Medicare beneficiaries. Ros Lazo admitted that as a result of the fraudulent claims, Medicare paid $8.6 million in benefits that it otherwise would not have.
As part of her guilty plea, Ibarra admitted to conspiring with Ros Lazo to commit health care fraud by rendering home health therapy services to Medicare beneficiaries when Ibarra was not licensed to provide these services.
The case was investigated by the FBI, HHS-OIG and CBP Air and Marine Operations. Trial Attorneys Alexander Kramer and Sara Clingan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Yisel Valdes of the Southern District of Florida prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Federal Jury Convicts Two Violent Gunmen of Possessing Firearms After Previous Felony ConvictionsRead the Press Release
BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced today the convictions of TIMMY SCOTT a/k/a “TIMOTHY SCOTT,” a 24-year-old resident of Baton Rouge, Louisiana, and KADEEM BURDEN, a 23-year-old resident of Baton Rouge, Louisiana. SCOTT and BURDEN were indicted by a federal grand jury on November 29, 2017 and charged with felon in possession of firearms.
After a two day trial before visiting U.S. District Judge Lance M. Africk, the jury unanimously convicted SCOTT and BURDEN. As the evidence at trial demonstrated, on October 2, 2017, SCOTT and BURDEN initiated a shooting on Iroquois Street that was witnessed by a Baton Rouge City Police officer, who pursued SCOTT and BURDEN into a residential area. A K-9 team assisted and found two firearms discarded under a house, a 7.62 caliber Century Arms semi-automatic AK rifle style pistol, and a 9mm Smith and Wesson pistol. Also recovered were two Halloween style masks and two cellular phones. Forensic testing by Louisiana State Police Crime lab and a Pittsburg, PA., private laboratory positively matched SCOTT to DNA recovered from one of the masks and matched BURDEN’s DNA to the trigger and grip of the AK rifle style pistol. The Louisiana State Police Crime lab was also able to match the fired 9mm cartridges recovered from the shooting location to the recovered pistol. The BATF and FBI executed search warrants on the phones and linked them to SCOTT.
As a result of their convictions, SCOTT and BURDEN now face a maximum sentence of ten years in federal prison, significant fines, restitution, and supervised release.
U.S. Attorney Fremin stated, “I want to commend the brave and swift action of the Officers of the Baton Rouge City Police Department who were faced with two active shooters - one armed with a high-powered military style firearm. To pursue two armed gunmen into a residential area and apprehend them quickly, without any injuries, is a testament to their courage and dedication to protecting innocent civilians who were in harm’s way. I want to express my gratitude to all of the dedicated law enforcement personnel, including our prosecution team, who worked long hours to prepare and present this case to the jury. The streets of Baton Rouge are much safer with these two defendants behind bars. Our office will not rest as we continue to bring cases against the most violent offenders in our community.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Baton Rouge City Police, the Federal Bureau of Investigation and the Louisiana State Police Crime Lab. The case is being prosecuted by Assistant United States Attorneys Lyman Thornton III and Fred Menner.
Federal Jury Convicts Key West-Based Drug Trafficker Who Conspired with Members of the Pagans Motorcycle Gang to Distribute MethamphetamineRead the Press Release
Orlando, Florida – A federal jury yesterday found Keith Kirchoff (41, Key West) guilty of conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. Kirchoff faces a maximum penalty of life in federal prison. A sentencing date has not yet been set. Kirchoff is the nineteenth person to be found guilty as a result of a joint FBI and DEA investigation into drug-trafficking organizations that supplied outlaw motorcycle clubs with distribution amounts of methamphetamine in the Middle District of Florida.
Kirchoff was indicted on August 9, 2018.
According to testimony presented at trial, in March 2018, Kirchoff conspired with members of the Pagans motorcycle club to deliver ounce quantities of methamphetamine to Pagans members located in Daytona Beach and Key West, Florida. On March 21, 2018, members of the Florida Highway Patrol pulled over a vehicle being driven by Kirchoff and found nearly ten ounces of methamphetamine and a loaded firearm.
This case was investigated by the FBI, the DEA, the Florida Highway Patrol, the Volusia Bureau of Investigation, the Volusia County Sheriff’s Office, and the Daytona Beach Police Department. It is being prosecuted by Assistant United States Attorney Sean P. Shecter.
Federal Grand Jury Indicts Defendant on Bankruptcy Fraud ChargesRead the Press Release
MACON – An Albany man was indicted on bankruptcy fraud charges this month by a federal grand jury, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Timothy Wayne Giles, 39, of Albany, GA was indicted on one count of False Bankruptcy Declaration for allegedly making false statements in a bankruptcy petition and one count of False Statements Under Oath in Bankruptcy for allegedly making false statements under oath at a 341 Creditors meeting. An indictment is only an allegation of criminal conduct. All defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt. If convicted, Mr. Giles faces a maximum sentence of five years in prison, a $250,000 fine, or both, on each count.
“Citizens need to be aware that any fraud or falsehood in connection with bankruptcy undermines the integrity of the system,” said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. “Bankruptcy provides important and necessary protections for those who honestly seek it in times of need. The abuse of that shelter endangers its reliability and does a disservice to creditors, debtors, and the general public. My office will continue to work aggressively with the United States Trustee and our law enforcement partners to protect the fair and legal operation of this financial safety net.”
The case is being investigated by Federal Bureau of Investigation and the United States Trustee’s Office and is being prosecuted by Assistant U.S. Attorney Robert D. McCullers. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.