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Wednesday 19 December 2018
Man Indicted for Financial Fraud and Possessing ATM Skimming DeviceRead the Press Release
FORT WAYNE –Dumitru Tirlea, 46, of Nottingham, United Kingdom had a two count indictment returned against him for attempting to defraud a financial institution and possessing access device making equipment, announced U.S. Attorney Kirsch.
According to documents in the case, on or about November 28, through 30, 2018, Tirlea attempted to execute a scheme to defraud a federally insured financial institution. Law enforcement has been investigating several reports of skimming devices being placed on bank ATMS as well as gas station credit card readers at gas pumps. The device captures and stores the credit and debit card numbers of unsuspecting victims. Subsequently the device is removed and the stored information is used to produce fraudulent credit/debit cards for unauthorized transactions.
In this case, a financial institution in Warsaw, Indiana reported finding a device on their ATM on November 28, 2018. Law enforcement conducted surveillance on the affected ATM. On November 30, Tirlea pulled up on the ATM and not having enough time to complete a transaction drove off. Law enforcement followed, conducted a traffic stop and arrested him. Tirlea, was identified based on ATM surveillance video as the individual who placed the device on the ATM on November 28, 2018. On December 3, 2018, Tirlea was arrested and charged via criminal complaint.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case was investigated by the FBI, the Indiana State Police Organized Crime and Corruption Unit and Warsaw Police Department. This case will be prosecuted by Assistant United States Attorney Stacey Speith.
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Madras Man Pleads Guilty to Bank Robbery and Conspiracy to Distribute MethamphetamineRead the Press Release
EUGENE, Ore.—Tyler Wayne Fuller, 29, of Madras, Oregon, pleaded guilty today, in separate criminal cases, to one count each of bank robbery and conspiracy to distribute and possess with intent to distribute methamphetamine.
According to court documents, on August 21, 2017, a man later identified as Fuller walked into the U.S. Bank branch on Southwest C Street in Madras. Fuller approached the victim teller and passed her a note that read “Give me your money and nobody gets hurt.” Fuller then told the teller not to play games. The teller gave Fuller $517 and pressed her alarm button as he exited the bank. Fuller was later arrested without incident during a traffic stop.
In a separate criminal matter, Fuller has admitted to being a member of a drug distribution conspiracy and possessing more than fifty grams of methamphetamine.
Fuller faces a maximum sentence of life in prison with a 10-year mandatory minimum, a $10 million fine and five years of supervised release. He will be sentenced on April 8, 2019 before U.S. District Court Judge Michael J. McShane.
As part of the plea agreement, Fuller has agreed to pay $517 in restitution.
The FBI, the Central Oregon Emergency Response Team, and Madras Police Department investigated this case. It is being prosecuted by Frank R. Papagni, Jr., Assistant U.S. Attorney for the District of Oregon.
MS-13 Member Sentenced for Illegal Possession of Firearm and Illegal ReentryRead the Press Release
BOSTON – A Salvadoran national was sentenced yesterday in federal court in Boston for unlawfully possessing a firearm and illegal reentry the United States after being deported.
Oscar Ramos, 30, a Salvadoran national who previously resided in Maryland, was sentenced by U.S. District Court Judge Indira Talwani to one year and one day in prison and three years of supervised release. Following the completion of his sentence, Ramos will be placed into removal proceedings and deported to El Salvador. In October 2018, Ramos pleaded guilty to being an illegal alien in possession of a firearm and illegal reentry after deportation.
Ramos was previously ordered deported from the United States in 2009. However, sometime after his removal, he reentered the United States, and in December 2013, he was arrested in Chelsea for possessing a loaded Smith and Wesson .38 caliber revolver and a knife. Upon his arrest, Ramos admitted to being a member of MS-13. Ramos was charged in Chelsea District Court with carrying the loaded firearm and released on $1,000 bail. Ramos then failed to appear for a court date in January 2014 and was a fugitive until he was arrested on March 2, 2018, in Baltimore, Md., on the outstanding warrant. Ramos has been detained in federal custody since that arrest.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney John P. Pappas; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Gross; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement today. The U.S. Marshals Service has provided crucial assistance with the case.
Long Island Man Sentenced to 56 Months’ Imprisonment for Defrauding Investors of $62 Million in a Real Estate Ponzi SchemeRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Gershon Barkany was sentenced by United States District Judge Joseph F. Bianco to 56 months’ imprisonment to be followed by three years’ supervised release for orchestrating a Ponzi scheme over four years that caused investors to lose approximately $62 million. Barkany was also ordered to pay restitution in an amount to be determined later and forfeiture of $62 million. Barkany pled guilty to wire fraud on June 26, 2013.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the sentence.
“Today’s sentence is the very real consequence for all the lies, forgeries and fabrications that Barkany used to steal from investors who thought they were putting their money into safe real estate deals,” stated United States Attorney Donoghue. “This Office will vigorously prosecute those who betray their clients’ trust for their own financial self-interest.” Mr. Donoghue expressed his appreciation to the Federal Bureau of Investigation, New York Field Office for its outstanding investigative work during the investigation.
Between December 2009 and March 2013, Barkany induced more than 10 victims to invest approximately $62 million by promising to use their money in “risk-free” deals to purchase, and then immediately re-sell at a profit, commercial real estate properties located in New York City and New Jersey. No such deals existed, and the investors lost their entire investments. Relying on Barkany’s representations, one victim invested $46.5 million as a down payment on an office building in Manhattan, a hotel in Atlantic City and properties in the Bronx and Queens. In fact, those real estate deals did not exist, and the investments were lost.
Shortly after Barkany’s arrest on March 28, 2013, two additional victims contacted the FBI and reported that they had been defrauded by Barkany. Barkany induced those investors to give him approximately $7.5 million by promising to use their money in a “risk-free” deal to purchase, and then immediately re-sell at a profit, an office building in Manhattan. In furtherance of the scheme, Barkany created fraudulent documents, including a purchase agreement purportedly signed by the seller of the office building and an escrow agreement allegedly signed by a third-party escrow agent. Once again, the promised deal did not exist, and the investment was lost.
Barkany diverted some of the funds he received to pay victims whom he had earlier defrauded, and used approximately $7.8 million of investors’ monies for personal expenses and gambling.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Christopher Caffarone and Diane Leonardo are in charge of the prosecution.
The Defendant:
GERSHON BARKANY
Age: 34
Woodmere, New YorkE.D.N.Y. Docket No. 13-CR-362 (JFB)
Local Man Gets 25 Years for Recruiting Individual to Transport MethRead the Press Release
BROWNSVILLE, Texas – A 25-year-old resident of Brownsville has been ordered to prison for 300 months for his role in recruiting a female to carry almost four kilograms of “ice” to Louisiana, announced U.S. Attorney Ryan K. Patrick. Emmanuel Ravell pleaded guilty Oct. 31, 2017.
Today, U.S. District Judge Fernando Rodriguez Jr. imposed the sentence noting the serious nature of the trafficking in methamphetamine as well as the defendant’s prior lengthy criminal history. Ravell was further order to serve five years of supervised release following the sentence. He was also was sentenced to a concurrent 120 months for being a felon in possession of more than three firearms.
In 2016, Ravell was contacted by a local drug trafficking organization to find a drug “mule” to get a load of methamphetamine to Louisiana. Ravell recruited a young female from Brownsville to carry the load on a commercial bus line. Law enforcement intercepted the woman carrying the approximately-four kilograms of methamphetamine on her person. Ravell had strapped the drugs to her. .
Ravell was a convicted felon ineligible to purchase a firearm. However, in 2017, he purchased three firearms, including an AR-15, GGI rifle and .50 caliber Desert Eagle pistol.
Ravell remains in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration, FBI and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the joint investigation. Assistant U.S. Attorneys Karen Betancourt and Angel Castro prosecuted the case.
Little Rock Husband and Wife Sentenced on Multiple Charges Related to Tax FraudRead the Press Release
LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, Kevin Caramucci, Acting Special Agent in Charge of the IRS-Criminal Investigation Dallas Field Office, and Gary Smith, Special Agent in Charge, Southern Field Division, Treasury Inspector General for Tax Administration (TIGTA), announced that Chief United States District Judge Brian S. Miller has sentenced John and Wendy Dunn for their roles in defrauding the IRS.
In Monday’s hearing, Judge Miller sentenced John Dunn, 64, of Little Rock, to 33 months’ imprisonment, followed by three years of supervised release and ordered him to pay $437,053.84 in restitution to the IRS on one felony count of conspiracy to defraud the government. In a hearing today, Judge Miller then sentenced Dunn’s wife, Wendy Dunn, 51, of Little Rock, to five years of probation and ordered her to pay $127,401.18 in restitution after she earlier pleaded guilty to five misdemeanor counts for willful failure to file tax returns.
According to public records, from approximately November 2001 through September 2016, John Dunn conspired with others to defraud the United States for the purpose of obstructing the IRS in the assessment and collection of income taxes. Since at least 2002, John Dunn and Wendy Dunn, operated a quasi-financial consulting business; however, they failed to file business and personal tax returns reporting this income.
During an interview in September 2011, John Dunn lied to federal agents when he said he timely filed his federal income tax returns each and every year and accused the IRS of hiding his returns. John Dunn also falsely told federal agents that neither he nor his wife had been employed for many years, but that a family inheritance allowed them to live in their $500,000 residence.
John Dunn utilized a false social security number on his bank accounts to disguise his ownership and made numerous false and frivolous complaints against IRS employees in order to thwart the IRS’ collection and investigative efforts.
John Dunn filed bankruptcy, and with the assistance of co-defendant Nina Sue Williams, created fake tax returns with small amounts of income that he backdated and provided to the United States Bankruptcy Court to conceal his business activities and true earnings. In addition, John Dunn wrote the word “Gift” in the memo line of client checks he received for services in order to disguise the true nature of the payments. He also attempted to persuade these clients to make false statements to federal investigators to prevent his prosecution.
John and Wendy Dunn both pleaded guilty in June 2018. Nina Sue Williams pleaded guilty in May 2018 to making a false statement to the IRS and willfully failing to file income tax returns. In November 2018, Williams was sentenced to 24 months in prison and ordered to pay $103,201 in restitution to the IRS.
The investigation was conducted by IRS Criminal Investigation and TIGTA.
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This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available on-line at
http://www.justice.gov/edar
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@EDARNEWSLincoln, Arkansas Woman Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that Amber Rae Kirk, age 37, of Lincoln, Arkansas, entered a guilty plea to Drug Conspiracy in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(D), punishable by not less than 10 years and not more than life imprisonment, up to a $10,000,000.00 fine, or both.
The Indictment alleged that on a date unknown to the Grand Jury in 2014, and continuing until on or about January 29, 2018, within the Eastern District of Oklahoma and elsewhere, the defendant, did knowingly and intentionally combine, conspire, confederate and agree, with others known and unknown to the Grand Jury, to commit offenses against the United States in violation of Title 21, United States Code, Section 846, as follows: possession with intent to distribute and distribution of 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A).
The charges arose as a result of an investigation by the Drug Enforcement Administration (“DEA”), the Oklahoma Bureau of Narcotics (“OBN”), the National Guard Counterdrug Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bureau of Indian Affairs, the U.S. Marshals Service, the Cherokee Nation Marshal Service, the Oklahoma Highway Patrol, the District 27 District Attorney’s Drug Task Force, the Adair County Sheriff’s Office, the Tulsa County Sheriff’s Office, the Stilwell Police Department, the Broken Arrow Police Department, and the Tulsa Police Department.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Rob Wallace represented the United States.
Lawrence Man Charged with Distributing HeroinRead the Press Release
BOSTON – A Lawrence man was charged today in federal court in Boston with distributing 100 grams or more of heroin.
Orlando Breton Mercado, 43, was indicted by a federal grand jury for distribution of and possession with intent to distribute 100 grams or more of heroin. Mercado was originally arrested and charged by criminal complaint on Nov. 20, 2018, and has been in custody since.
According to the charging documents, in July 2018, federal agents began investigating Mercado for drug trafficking, and on Nov. 20, 2018, they conducted an undercover controlled purchase from Mercado of nearly one kilogram of heroin. Mercado was subsequently arrested.
The charge of distribution of 100 grams or more of heroin carries a minimum mandatory sentence of five years and up to 40 years in prison, at least four years of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistance was provided by the Salem Police Department. Assistant U.S. Attorney Alathea E. Porter of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
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.
Kalkaska, Michigan Woman SentencedRead the Press Release
SOUTH BEND - Michelle Seljan, age 47, of Kalkaska, Michigan, was sentenced before South Bend District Court Judge Jon E. DeGuilio for theft of federal funds and tax evasion, announced U.S. Attorney Kirsch.
Seljan was sentenced to 37 months imprisonment followed by 2 years of supervised release. Seljan was also ordered to pay $633,628 in restitution to HUD and $201,696 in restitution to IRS.
U.S. Attorney Kirsch said, "Seljan stole hundreds of thousands of dollars from the Hammond Housing Authority. Her greed earned her a lengthy prison sentence. My office has zero tolerance for public officials who abuse their positions for personal financial gain. Our law enforcement partners will continue to aggressively investigate, while we will continue to prosecute those who betray the public trust.”
According to documents in this case, from about 2013 to 2015, Seljan worked as a supervisor at the Hammond Housing Authority. She embezzled Housing Authority funds by using their computers to divert $633,628 of Housing Authority funds to bank accounts she had created. During that same time, she attempted to evade federal income taxes by submitting tax returns that failed to report the embezzled income.
This case is being investigated by the Department of Housing and Urban Development, Office of Inspector General and the Internal Revenue Service, Criminal Investigation Division. The case is being handled by Assistant U.S. Attorney Frank Schaffer.
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Justice Department Sues to Shut Down Promoters of Conservation Easement Tax Scheme Operating out of GeorgiaRead the Press Release
The United States filed a complaint seeking an order stopping Nancy Zak, Claud Clark III, EcoVest Capital Inc., Alan N. Solon, Robert M. McCullough, and Ralph R. Teal, Jr., from organizing, promoting, or selling an allegedly abusive conservation easement syndication tax scheme, the Justice Department announced today.
According to the complaint filed in the U.S. District Court for the Northern District of Georgia, the defendants’ scheme revolves around donations of conservation easements and corresponding tax benefits from those donations. Defendants also allegedly rely on grossly overvalued appraisals as part of their scheme.
“The Department of Justice is working with our partners in the Internal Revenue Service to shut down fraudulent conservation easement shelters, which in this case were based on willfully false valuations,” said Richard E. Zuckerman, the Tax Division’s Principal Deputy Assistant Attorney General. “Individuals investing in these schemes with benefits that seem too good to be true should ensure they are paying their proper federal income tax liability.”
“When it comes to aggressive transactions marketed by unscrupulous advisors, we will take every enforcement option available, including civil and criminal penalties,” said Internal Revenue Service Commissioner Charles P. Rettig. “Cheating on your taxes will not be tolerated.”
Under the proper circumstances, the Internal Revenue Code allows a taxpayer to take a charitable donation deduction equivalent to the fair market value of a conservation easement, but only if certain requirements with respect to the donation of an interest in property for conservation purposes are satisfied. This deduction is referred to as the “qualified conservation contribution.”
The defendants allegedly organize, promote, and sell ownership interests in limited liability entities, referred to in the complaint as “conservation easement syndicates.” According to the complaint, at the time defendants organize, promote, and sell ownership interests in a conservation easement syndicate, the syndicate plans to donate a conservation easement on land it owns, and then claim a corresponding tax deduction for the “qualified conservation contribution.”
However, these syndicates lack economic substance and are shams. They only serve as a conduit to transfer overvalued and otherwise improper federal tax deductions to customers, according to the government’s complaint. Additionally, the complaint alleges the conservation easements promoted by the defendants do not meet the requirements for a “qualified conservation contribution” under the Internal Revenue Code.
According to the complaint, defendants knew, or had reason to know, that the statements they made to customers regarding the tax benefits were false or fraudulent. In this regard, the complaint alleges that defendants knew the syndicates that they promoted planned to donate a conservation easement but otherwise did not plan to engage in any ongoing business activity. The complaint also alleges that the only return on investment a customer could anticipate from “investing” in a syndicate was the tax benefit from the planned conservation easement donation, which was many times larger than the purported investment. The complaint further alleges that the defendants made or furnished gross valuation overstatements about the valuation of conservation easements and the corresponding tax deductions, or caused others to do so.
The suit alleges that defendants have organized, promoted, and sold at least 96 conservation easement syndicates resulting in the syndicates reporting over $2.0 billion of tax deductions from overvalued and improper “qualified conservation contributions,” and have passed those tax deductions through to the thousands of customers of defendants’ scheme, resulting in hundreds of millions of dollars of tax harm.
On December 23, 2016, the IRS issued Notice 2017-10, announcing that certain syndicated conservation easement transactions are listed transactions if entered into on or after January 1, 2010. Notice 2017-10 applies to those prospective investors who receive oral or written promotional materials offering the possibility of a charitable donation deduction of at least 2.5 times their investment. A typical transaction covered by Notice 2017-10 involves the advertised investment in a pass-through entity that owns real property or acquires real property for the purpose of encumbering the property with a conservation easement.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Settles Immigration-Related Discrimination Claim Against Chicago Health Care ProviderRead the Press Release
The Justice Department today announced that it has reached a settlement agreement with Sinai Health System Inc. (Sinai) in Chicago, Illinois. Sinai serves the health care needs of the approximately 1.5 million people who reside within its service areas -- Chicago’s west and southwest sides -- and comprises Mount Sinai Hospital Medical Center of Chicago, Holy Cross Hospital, Schwab Rehabilitation Hospital and Care Network, Sinai Children’s Hospital, Sinai Community Institute, Sinai Medical Group, and Sinai Urban Health Institute. The settlement resolves a claim that Sinai violated the anti-discrimination provision of the Immigration and Nationality Act (INA) by discriminating against non-citizen employees when verifying their work authorization.
The Department’s independent investigation concluded that, from at least Jan. 1, 2016, to Sept. 30, 2017, a human resources employee responsible for verifying employees’ work authority routinely required newly hired non-U.S. citizen employees to provide specific documentation issued by the Department of Homeland Security to prove employment eligibility. In contrast, U.S. citizen employees were permitted to present the documentation of their choice to establish their work authorization. Federal law allows individuals, regardless of citizenship status, the right to choose which document to present, from a range of valid documents, to demonstrate their authority to work in the United States. The anti-discrimination provision of the INA prohibits employers from subjecting employees to unnecessary documentary demands based on employees’ citizenship status or national origin.
“Employers are reminded that the employment eligibility verification process is intended to confirm an employee’s work authorization, not their immigration status,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Division commends Sinai for its commitment to complying with the anti-discrimination provision of the INA.”
Under the settlement, Sinai will pay $7,000 in civil penalties to the United States and be subject to departmental monitoring and reporting requirements. The agreement also requires certain employees to attend training on the requirements of the INA’s anti-discrimination provision, and Sinai will make available IER materials containing information about IER and the anti-discrimination provision of the INA at various locations.
The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to retaliation; different documentary requirements based on their citizenship, immigration status or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact IER’s worker hotline for assistance.
Justice Department Alleges Conditions at Hampton Roads Regional Jail Violate the Constitution and Federal LawRead the Press Release
WASHINGTON – The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Virginia today concluded an investigation into conditions at the Hampton Roads Regional Jail in Portsmouth, Virginia. The Justice Department concluded that there is reason to believe that the conditions at the Jail violate the Constitution, specifically rights of prisoners protected by the Eighth and Fourteenth Amendments. The Department concluded that there is reasonable cause to believe that the Jail fails to provide constitutionally adequate medical and mental health care to prisoners, and places prisoners with serious mental illness in restrictive housing for prolonged periods of time under conditions that violate the Constitution. The Department also concluded that the Jail’s restrictive housing practices discriminate against prisoners with mental health disabilities in violation of the Americans with Disabilities Act (ADA).
As required by the Civil Rights of Institutionalized Persons Act (CRIPA) and the ADA, the Department provided the Jail written notice of the supporting facts for these alleged conditions and the minimum remedial measures necessary to address them.
“The Constitution guarantees all prisoners necessary medical care, including mental health care, treatment, and services,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Our investigation found reasonable cause to conclude that the Jail fails to provide constitutionally adequate medical and mental health care and that prisoners experience serious harm as a result. The Justice Department hopes to continue to work with the Jail to resolve the Department’s concerns.”
“Our investigation uncovered evidence of significant violations of inmates’ constitutional rights to adequate medical and mental health care, as well as violations of the Americans with Disabilities Act,” said U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia. “We look forward to working with the Jail to ensure the rights of those incarcerated are not violated.”
The Civil Rights Division and the United States Attorney’s Office for the Eastern District of Virginia initiated the investigation in December 2016 under CRIPA, which authorizes the Department to take action to address a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities. The investigation was also initiated under Title II of the ADA.
This investigation was conducted by attorneys with the Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Virginia. Individuals with relevant information are encouraged to contact the Department via phone at (844) 644-0225 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Justice Department Alleges Conditions at Hampton Roads Regional Jail Violate the Constitution and Federal LawRead the Press Release
The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Virginia today concluded an investigation into conditions at the Hampton Roads Regional Jail in Portsmouth, Virginia. The Justice Department concluded that there is reason to believe that the conditions at the Jail violate the Constitution, specifically rights of prisoners protected by the Eighth and Fourteenth Amendments. The Department concluded that there is reasonable cause to believe that the Jail fails to provide constitutionally adequate medical and mental health care to prisoners, and places prisoners with serious mental illness in restrictive housing for prolonged periods of time under conditions that violate the Constitution. The Department also concluded that the Jail’s restrictive housing practices discriminate against prisoners with mental health disabilities in violation of the Americans with Disabilities Act (ADA).
As required by the Civil Rights of Institutionalized Persons Act (CRIPA) and the ADA, the Department provided the Jail written notice of the supporting facts for these alleged conditions and the minimum remedial measures necessary to address them.
“The Constitution guarantees all prisoners necessary medical care, including mental health care, treatment, and services,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Our investigation found reasonable cause to conclude that the Jail fails to provide constitutionally adequate medical and mental health care and that prisoners experience serious harm as a result. The Justice Department hopes to continue to work with the Jail to resolve the Department’s concerns.”
“Our investigation uncovered evidence of significant violations of inmates’ constitutional rights to adequate medical and mental health care, as well as violations of the Americans with Disabilities Act,” said U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia. “We look forward to working with the Jail to ensure the rights of those incarcerated are not violated.”
The Civil Rights Division and the United States Attorney’s Office for the Eastern District of Virginia initiated the investigation in December 2016 under CRIPA, which authorizes the Department to take action to address a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities. The investigation was also initiated under Title II of the ADA.
This investigation was conducted by attorneys with the Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Virginia. Individuals with relevant information are encouraged to contact the Department via phone at (844) 644-0225 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Jamaican National Convicted of Marijuana Trafficking, Firearms and Money Laundering OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that on December 18, 2018, a federal jury in Hartford found ANDREW DAVIS, 38, a citizen of Jamaica last residing in Hamden, guilty of marijuana trafficking, firearm possession and money laundering offenses.
According to the evidence presented during the trial, in 2013, Homeland Security Investigations (HSI), U.S. Postal Inspection Service and Connecticut State Police began an investigation into individuals who were moving large amounts of marijuana from the Southwestern United States to Connecticut. During the investigation, investigators intercepted four packages, each containing approximately eight kilograms of marijuana, from the U.S. Mail, and made multiple controlled purchases of the drug from a member of the trafficking ring.
Davis was arrested on February 1, 2017, after investigators conducted court-authorized searches of a Hamden apartment that Davis shared with his girlfriend, Shanice Goffe; a storage unit in West Haven that was rented in Goffe’s name, and two Bridgeport apartments that Davis maintained under different aliases.
A search of the Hamden residence revealed more than one pound of marijuana, a loaded 9mm handgun, boxes of .45 caliber ammunition, $62,409 in cash, and numerous false identifications, including a U.S. passport, all of which contained a photo of Davis. A search of the storage unit revealed approximately 33 kilograms of marijuana, ammunition and firearm magazines, additional false identifications, and $350,100 in cash. A search of a Bridgeport apartment rented in the name of “Cordel Freckleton” yielded one firearm, and a search of an apartment rented in the name of “Andrew Carter” revealed more than 60 pounds of marijuana and two firearms, one of which was stolen.
Investigators also seized a 2014 BMW X6, a 2016 Honda Accord, and a 2008 Honda Odyssey, all of which were registered to Goffe and had been purchased with proceeds of the marijuana trafficking enterprise.
The investigation further revealed that Davis, using the name “Steve Williams,” was under investigation in 2008 for marijuana trafficking. In August 2008, Bridgeport Police conducted a search of Davis’s Bridgeport apartment and discovered a fake identification, photos of Davis/Williams, three firearms, extended magazines, ammunition, drug packaging paraphernalia, marijuana packaged for resale, and eight UPS receipts for packages that had not arrived. Bridgeport Police subsequently seized the UPS packages, which contained a total of more than 75 pounds of marijuana. “Williams” was never located.
At the time of Davis’s federal arrest on February 1, 2017, investigators seized more than 40 identification cards with false names, including the names of the addressees of the 2008 Bridgeport packages. When presented to U.S. Marshals and asked his name, Davis said, “Let’s go with Steve Williams.”
The jury found Davis guilty of one count of conspiracy to distribute and to possess with intent to distribute 100 kilograms or more of marijuana, an offense that carries a maximum term of imprisonment of 40 years; one count of possession with intent to distribute 50 kilograms or more of marijuana, an offense that carries a maximum term of imprisonment of 20 years, one count of possession of firearms in furtherance of a drug trafficking crime, an offense that carries a consecutive term of imprisonment of at least five years, and one count of conspiracy to commit money laundering, an offense that carries a maximum term of imprisonment of 20 years.
Davis is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on March 13, 2019.
On November 20, 2017, Goffe pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 50 kilograms or more of marijuana, and one count of conspiracy to commit money laundering. On February 28, 2018, she was sentenced to 30 months of imprisonment.
This matter has been investigated by Homeland Security Investigations (HSI), U.S. Postal Inspection Service and Connecticut State Police, with the assistance of Bridgeport Police Department, U.S Customs and Border Patrol and the U.S. Marshals Service.
This case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Jackson Man Sentenced to over Six Years in Federal Prison under Project EJECT for Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Terrence Omar Gates, 32, of Jackson, was sentenced yesterday by Senior U.S. District Judge William H. Barbour, Jr. to 78 months in prison, to run consecutive to his previously imposed 24 month revocation sentence, followed by three years supervised release, for illegal possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On June 7, 2017, detectives with the Jackson Police Department stopped Terrence Omar Gates for traffic violations at the corner of Mill Street and Mitchell Street. While running Gates’ driver’s license, one of the detectives observed Gates reaching under the front passenger seat. He was ordered to stop reaching and was removed from the vehicle. Detectives searched the vehicle and recovered a stolen Taurus pistol, a glass mason jar containing approximately 30 grams of marijuana, and a black digital weighing scale. Approximately $6,937.00 wrapped in a rubber band was recovered from Gates’ front left pocket.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jackson Police Department. It was prosecuted by Assistant United States Attorney Keesha D. Middleton.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Jackson Man Sentenced to 27 Months in Prison for Commercial Driver’s License FraudRead the Press Release
Jackson, Miss –Benjamin James McGrigg, 42, of Jackson, was sentenced on December 14, 2018, by Chief U.S. District Judge Daniel P. Jordan III to 27 months in prison, followed by three years of supervised release, for commercial driver’s license fraud, announced U.S. Attorney Mike Hurst and Regional Special Agent in Charge Todd Damiani with the U.S. Department of Transportation, Office of Inspector General.
McGrigg was also ordered to pay restitution in the amount of $13,500 to the Pearl River Water Valley Supply District - Reservoir Police Department. He entered a guilty plea before Judge Jordan on August 17, 2018, to making false and fraudulent material representations.
McGrigg previously worked for a company that provided training and certification to individuals seeking commercial driver’s licenses (“CDLs”). His employment only authorized certification to those that were students of the company. However, McGrigg provided paperwork to those whom wanted a CDL that were not students of his employer. He prepared the paperwork representing that the applicant had taken the road skills test, when in fact the applicant had not. This fraudulent paperwork would be given to an individual seeking to obtain a CDL in exchange for payment to McGrigg. Such fraudulent paperwork would be presented by these individuals to the Mississippi Department of Public Safety in order to secure a commercial driver’s license. A review of the commercial drivers’ paperwork in Mississippi showed that some of the applicants could not have achieved the results on the paperwork. Some Commercial Driver’s License holders were interviewed and said they had never taken the test and just paid McGrigg for the paperwork.
"The sentencing in this investigation underscores the U.S. Department of Transportation Office of Inspector General's commitment to ensuring the integrity of the Department's commercial driver’s license program,” stated Todd Damiani, Regional Special Agent-In-Charge at DOT-OIG. “We remain steadfast in our efforts to prevent and detect CDL fraud schemes which endanger the traveling public in the State of Mississippi and throughout the country.”
The case was investigated by the United States Department of Transportation-Office of Inspector General, Mississippi Department of Public Safety, Mississippi Bureau of Investigation and the Federal Motor Carrier Safety Administration. It was prosecuted by Assistant United States Attorney Erin Chalk.
Jackson County Man Pleads Guilty to Illegally Possessing a FirearmRead the Press Release
Gulfport, Miss – Andrew Roy Broughton, 30, of Moss Point, entered a guilty plea today before U.S. District Judge Sul Ozerden to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Broughton was previously convicted of felony possession of a controlled substance in Pearl River County and felony possession of a controlled substance in Jackson County. On February 28, 2018, Broughton sold three firearms, one reported stolen, to an ATF informant. On March 6, 2018, Broughton sold a fourth firearm to the informant.
Broughton will be sentenced by Judge Ozerden on March 19, 2019 at 9:00 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
The Jackson County MET Team and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. The case is being prosecuted by Assistant United States Attorney Annette Williams.
Inmate Sentenced to Four Years in Prison for Threats to Obama, LynchRead the Press Release
TUCSON, Ariz. – Today, Roger Dale Godwin, 40, was sentenced by U.S. District Judge Raner Collins to 48 months in the Bureau of Prisons followed by three years of supervised release. Godwin had previously pleaded guilty to making threats against the President and mailing threatening communications.
On June 1, 2016, while an inmate in the U.S. Penitentiary in Tucson, Ariz., Godwin placed into the outgoing prison mail several letters that were addressed to then-President Barak Obama and then-Attorney General Loretta Lynch. In those letters Godwin threatened to injure or kill Mr. Obama and Ms. Lynch, along with a Bureau of Prisons employee. Godwin must serve his four years consecutive to a 2014 sentence he is separately serving for mailing threats to judges and law enforcement while an inmate in the Wisconsin Department of Corrections.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Micah Schmit, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-17-01620-RCC-1
RELEASE NUMBER: 2018-174_ Godwin
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
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Illegal Alien Who Used Another Person’s Social Security Number Sentenced to PrisonRead the Press Release
A woman who used another person’s Social Security number to get a job was sentenced today to more than two months in federal prison.
Juana Brito-Raymundo, age 20, a citizen of Guatemala illegally present in the United States and residing in Dubuque, Iowa, received the prison term after an October 18, 2018, guilty plea to one count of misuse of a social security number.
In a plea agreement, Brito-Raymundo admitted that on April 15, 2017, she used someone else’s social security number on employment and tax documents when applying for work using an alias name in Dubuque, Iowa. She also used a fraudulent permanent resident card, also known as a “green card,” when she completed the employment forms. The Alien Registration number on the “green card” had been issued to another person. Brito-Raymundo was arrested by the United States Border Patrol in Texas in September 2016 after she illegally entered the United States. Brito-Raymundo was released from immigration custody in November 2016, and was on ICE bond when she committed the offense.
Brito-Raymundo was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Brito-Raymundo was sentenced to 79 days’ imprisonment. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Brito-Raymundo is being held in the United States Marshal’s custody until she can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1040-CJW.
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Illegal Alien Sentenced to Prison for Document FraudRead the Press Release
A Guatemalan woman who used false identification documents to obtain a job was sentenced today to one month in federal prison.
Eulalia Francisco-Pedro, age 39, a citizen of Guatemala illegally present in the United States and residing in Cedar Rapids, Iowa, received the prison term after an October 18, 2018, guilty plea to one count of unlawful use of identification documents and one count of misuse of a social security number.
At the guilty plea, Francisco-Pedro admitted she used a fraudulent Social Security card bearing the social security number assigned to someone else, and a fraudulent permanent resident card, also known as a “green card,” when she completed a Form W-4 and other employment paperwork on July 28, 2016, at a business in Cedar Rapids, Iowa. The Alien Registration number on the “green card” was invalid. Francisco-Pedro also used someone else’s social security number when she completed state and federal W-4 forms at the Cedar Rapids business on June 14, 2018.
Francisco-Pedro was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Francisco-Pedro was sentenced to 31 days’ imprisonment. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Francisco-Pedro was ordered to begin her term of supervised release immediately.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-0091-CJW. Follow us on Twitter @USAO_NDIA.
Illegal Alien Sentenced to over 21 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
Gulfport, Miss. – Manuel De Jesus Pulido-Rodas, 33, of Vera Cruz, Mexico, was sentenced Monday by U.S. District Judge Sul Ozerden to 262 months in federal prison, followed by 5 years of supervised release, for conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans.
Pulido-Rodas pled guilty on August 7, 2018, to one count of conspiracy to possess with intent to distribute methamphetamine. On January 30, 2018, Pulido Rodas and three others were stopped in a vehicle in Hancock County traveling from Texas to South Carolina. They were transporting approximately 4 kilograms of 99% pure methamphetamine. Pulido-Rodas’s co-conspirators in the vehicle are awaiting sentencing.
The case was investigated by the Homeland Security Investigations and prosecuted by Assistant U.S. Attorney John Meynardie.
Husband and Wife Convicted of Health Care FraudRead the Press Release
COLUMBUS, Ohio – A jury convicted a Hilliard couple of conspiracy to commit health care fraud and health care fraud yesterday evening following a two-week trial before U.S. District Judge Algenon L. Marbley.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Ohio Attorney General Mike DeWine and Steven W. Schierholt, Executive Director, State of Ohio Board of Pharmacy announced the verdict.
Darrell L. Bryant, 44, and Gifty Kusi, 35, owned and managed Health and Wellness Pharmacy on Blazer Parkway in Dublin. Bryant, Kusi, and Dr. Jornell Rivera also owned and operated Health and Wellness Medical Center, a suboxone clinic, also located in Dublin. Rivera served as the Medical Director for the medical center.
According to court documents and testimony, Bryant, Kusi and their co-conspirators marketed prescription creams in low-income neighborhoods and mailed those creams to Medicaid customers. They also billed for counseling services that weren’t provided, and billed for individual counseling sessions that actually occurred in a group setting.
As part of the conspiracy, Medicaid was billed for compound creams to treat pain, scarring and acne. Health and Wellness Pharmacy billed Medicaid $3 million for the creams.
The pharmacy marketed the compound creams at Clinic 5 (a Suboxone clinic), Sav-a-Lot and through a mobile van unit. Patients with CareSource were targeted and told they were receiving free samples of pain cream. Then they began to receive more cream in the mail without requesting more. These were also billed to CareSource.
Customers at Sav-a-Lot and in low-income neighborhoods were asked to fill out a survey asking about any conditions that they suffered from. Then, they would receive the compound creams in the mail every month, even when customers directed the co-conspirators to stop sending them. Many of these customers never met with a doctor, nor did they know the prescribing physician.
Also as part of the health care fraud scheme, Health and Wellness Medical Center submitted fraudulent claims to Medicaid for psychotherapy services that were never rendered to patients.
Specifically, patients indicated they would sit in a room with a timer. When the timer went off, they were allowed to leave and receive their Suboxone prescription. No counseling services were provided during this time. Some patients reported coloring in coloring books during the time they were in the room.
Co-conspirator Rivera pleaded guilty in May 2018 to making false statements related to health care matters. His sentencing hearing has been scheduled for 9am on January 11.
Another co-conspirator, Dr. Bernard Oppong, 60, of Blacklick, Ohio, was charged in a seven-count indictment on October 30, 2018.
U.S. Attorney Glassman commended the investigation of this case by the Ohio Attorney General’s Office’s Medicaid Fraud Control Unit, State of Ohio Board of Pharmacy, HHS-OIG, FBI and DEA, as well as Assistant United States Attorneys Kenneth F. Affeldt and Maritsa A. Flaherty, who are prosecuting the case.
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Hancock County Man Pleads Guilty to Illegally Possessing a FirearmRead the Press Release
Gulfport, Miss. – William Rex Roderick, Jr., 30, of Hancock County, entered a guilty plea today before U.S. District Judge Sul Ozerden to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Roderick has previous convictions for possession with intent to distribute controlled substances and transfer of controlled substances in Hancock County in 2015 and 2017. Roderick was on supervised release with MDOC at the time of the current federal charge. As a result of a May 14, 2018, MDOC home visit, Roderick was found in possession of ammunition. A subsequent investigation and search of Roderick’s cell phone by the Bureau of Alcohol, Tobacco, Firearms, and Explosives discovered that Roderick was buying and selling firearms to known Simon City Royals gang members. Through the investigation, ATF determined Roderick had at least 6 firearms from December 28, 2017, through May 2018, including a .22 caliber assault rifle with 2 thirty round magazines.
Roderick will be sentenced by Judge Ozerden on March 19, 2019 at 9:30 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. The case is prosecuted by Assistant United States Attorney Annette Williams.
Gulfport Man Pleads Guilty to Stealing Firearm from Pawn ShopRead the Press Release
Gulfport, Miss – Aseante Romaree Taylor, 21, of Gulfport, entered a guilty plea yesterday before U.S. District Judge Sul Ozerden to theft of a firearm from a licensed firearms dealer, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On September 18, 2018, Gulfport Police Department responded to Dad’s Super Pawn regarding the theft of a firearm. Officers obtained the surveillance video and were able to see the suspect go behind the counter while clerks were busy with customers, take an AK-47 off the shelf and walk out the door. Once out the door, the video showed the suspect running to a car. ATF agents located the car and the identity of the thief. Taylor was apprehended in the U.S. District Courthouse when he attended a sentencing hearing in support of another defendant. When approached by U.S. Marshals, Taylor gave a false name, but was arrested.
Taylor will be sentenced by Judge Ozerden on March 18, 2019 at 9:30 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine, along with 3 years of supervised release.
The Gulfport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It is being prosecuted by Assistant United States Attorney Annette Williams.
Guatemalan Man Who Used Another Person’s Name and Social Security Number Sentenced to PrisonRead the Press Release
A Guatemalan man who used a false identification document to obtain a job was sentenced today to nearly three months in federal prison.
Miguel Leon-Quinilla, age 21, a citizen of Guatemala illegally present in the United States and living in Tama, Iowa, received the prison term after an October 30, 2018, guilty plea to two counts of unlawful use of an identification document.
At the guilty plea, Leon-Quinilla admitted he used a fraudulent Social Security card when he completed an employment form at a business in Tama, Iowa, on January 30, 2018, and April 26, 2018. Leon-Quinilla, claiming to be a United States citizen, used the name and social security number of a United States citizen on the employment paperwork. Leon-Quinilla claimed to have paid $2,000 to a U.S. citizen for that person’s Social Security card and a birth certificate which he used to obtain an Iowa ID card on April 19, 2018. At the time of his arrest, Leon-Quinilla also had an Arkansas identification card bearing his picture but in the name of a third individual.
Leon-Quinilla was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Leon-Quinilla was sentenced to 85 days’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Leon-Quinilla is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-0098-CJW.
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Greensburg Doctor Indicted for Illegally Distributing Controlled Substances and Health Care Fraud Now Facing Additional Charges of Witness Tampering and Lying to the FBIRead the Press Release
PITTSBURGH, PA - A family practice physician has been indicted by a federal grand jury in Pittsburgh on charges of unlawfully dispensing controlled substances, health care fraud, tampering with a witness and false statements to the government, United States Attorney Scott W. Brady announced today.
The 56-count superseding indictment, returned on Dec. 18, named Milad Shaker, 49, of Greensburg, Pa., as the sole defendant.
According to the superseding indictment, from 2014 to 2017, Shaker, a licensed physician, unlawfully distributed controlled substances, including Vicodin, Percocet, Tramadol and others, in return for sexual favors provided to him either physically or by electronic communication, such as text messaging. Shaker is also charged with health care fraud for causing fraudulent claims to be submitted to Highmark Health Plan and Aetna. The superseding indictment further alleges that Shaker tampered with a witness and was untruthful to agents of the Federal Bureau of Investigation.
The law provides for a per count sentence of 20 years in prison, a fine of $1,000,000.00, or both, for counts 1-36; five years in prison, a fine of $250,000, or both on counts 37-52; 20 years in prison and fines of $500,000.00 for counts 53-54; 20 years in prison and $250,000 in fines on count 55; and five years in prison and $250,000 fine on count 56. 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 Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the superseding indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. – A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Two Charged with Drug Crimes Involving Heroin & Fentanyl
Arthur J. Jones, 41, Fitchburg, Wisconsin, and Corey D. Douglas, 27, Chicago, Illinois, are charged with conspiring to distribute 40 grams or more of a mixture containing both heroin and fentanyl. The indictment alleges that the conspiracy operated from May 2018 to November 29, 2018.
Jones is also charged with two counts of distributing heroin in October 2018, and with three counts of distributing a mixture of heroin and fentanyl in November 2018. The indictment also charges that on November 29, 2018, Jones possessed 40 grams of more of a mixture containing fentanyl with the intent to distribute. The final count in the indictment charges that on November 29, 2018, Douglas possessed a mixture of heroin and fentanyl with intent to distribute.
If convicted, Jones and Douglas face a mandatory minimum penalty of five years and a maximum of 40 years on the charges alleging 40 grams or more of heroin and fentanyl, and a maximum of 20 years on each of the other charges. The charges against Jones and Douglas are the result of an investigation by the Madison Police Department. The prosecution of this case is being handled by Assistant U.S. Attorney Robert A. Anderson.
Madison Man Charged with Four Robberies
Trevor Christian, 21, Madison, Wisconsin, is charged with robbing a Madison business and three financial institutions during November 2018, including:
- Walgreens, East Washington Avenue, on November 1;
- Associated Bank, Shopko Drive, on November 5;
- Associated Bank, Odana Road, on November 7; and
- Dane County Credit Union, Struck Street, on November 14.
If convicted, Christian faces a maximum penalty of 20 years in federal prison on each count. The charges against him are the result of an investigation by the Madison Police Department. The prosecution of this case is being handled by Assistant U.S. Attorney Rita M. Rumbelow.
Medford Man Charged with Gun & Drug Crimes
Ryan O. Kleinschmidt, 25, Medford, Wisconsin, is charged with being a felon in possession of a firearm and with possessing methamphetamine with intent to distribute. The indictment alleges that on September 18, 2018, he possessed a loaded .22 caliber handgun and methamphetamine.
If convicted, Kleinschmidt faces a maximum penalty of 10 years in federal prison on the felon in possession of a firearm count, and 20 years on the drug count. The charges against him are the result of an investigation by the Lincoln County Sheriff’s Office, Merrill Police Department, and Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant U.S. Attorney Corey C. Stephan.
La Crosse Man Charged with Two Gun Crimes
Emmanuel Hunt, 23, La Crosse, Wisconsin, is charged with two counts of being a felon in possession of a firearm. The indictment alleges that on November 22, 2018, he possessed a loaded 9mm pistol, and that on December 5, 2018, he possessed two loaded 9mm pistols.
If convicted, Hunt faces a maximum penalty of 10 years in federal prison on each count. The charges against him are the result of an investigation by the La Crosse Police Department, La Crosse County Sheriff’s Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of this case is being handled by Assistant U.S. Attorney Rita M. Rumbelow.
Madison Man Charged with Illegally Possessing Firearm & Ammunition
David A. Kelly, 31, Madison, Wisconsin is charged with being a felon in possession of a firearm and ammunition. The indictment alleges that on July 24, 2018, he possessed a .40 caliber pistol and .40 caliber ammunition.
If convicted, Kelly faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Madison Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of this case is being handled by Assistant U.S. Attorney Rita M. Rumbelow.
The charges against Kleinschmidt, Hunt, and Kelly have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Onalaska Man Charged in Farm Loan Fraud Case
Henry Berg, 42, formerly of Onalaska, Wisconsin, and currently of Geneva, Illinois, is charged with one count of making a false statement and one count of converting loan collateral. The indictment alleges that in May 2015, Berg made a false statement to Badgerland Financial ACA, an Agricultural Credit Association, in connection with a $650,000 agricultural loan. At the time Berg owned and operated Animal House Farms, LLC. The indictment alleges that Berg failed to disclose that his business had liabilities from the previous crop year of approximately $200,000.
The second count of the indictment alleges that Berg knowingly converted to his own use property which had been mortgaged to the Farm Service Agency, a successor agency to the Farmers Home Administration. The indictment alleges that Berg collected and then failed to remit any of the proceeds he received through a sublease contract.
If convicted, Berg faces a maximum penalty of 30 years in federal prison on the false statement count and five years on the conversion of collateral count. The charges against him are the result of an investigation by the U.S. Department of Agriculture, Office of Inspector General and the Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant U.S. Attorney Meredith P. Duchemin.
German National Sentenced for International Arms TraffickingRead 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 Karl Kleber, 64, of Lisbon, Portugal, who was convicted of smuggling goods into the United States, in connection with the importation into the United States of Chinese-manufactured, 75 round capacity, AK-47 rifle drum magazines, was sentenced to time served by U.S. District Judge Charles J. Siragusa. The defendant will also forfeit $345,600.
Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated that the defendant worked with co-defendant Gary Hyde to import into the United States over 5,000 Chinese-manufactured, 75 round capacity AK-47 rifle drum magazines from between in or about March of 2008 until October of 2008. Further, Kleber and Hyde negotiated a deal with a Chinese firearms manufacturer to make the magazines, while representing that they were manufactured in Bulgaria. Between January and March of 2008, the defendant offered them for sale to American Tactical Imports, Inc. in Rochester, while knowing that the magazines could not be imported into the United States because they were manufactured in China. The magazines were then sold to American Tactical Imports, Inc.
Gary Hyde was previously convicted and sentenced.
The sentencing is the culmination of an investigation on the part of Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
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Former Tax Return Preparer Sentenced for $1.75 Million Stolen Identity Tax Refund SchemeRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and William Hernandez, Chief, North Miami Beach Police Department (NMBPD), announced that Saul Frederick, 45, of Port-au-Prince, Haiti, was sentenced on December 14, 2018, to 61 months in prison, followed by three years of supervised release, and was ordered to pay $1,757,397 in restitution for his role in a stolen identity tax refund scheme.
Frederick previously pled guilty to one count of conspiracy to file false claims and aggravated identity theft.
According to the court record, including the plea documents, in early 2010, Frederick worked as a tax return preparer with co-conspirators Hugues Jean Noel, Frandy Prophete, and Edy St. Jean at a tax preparation business called H&A Tax Multi-Service, LLC, located in North Miami, Florida. The defendant and his co-conspirators used stolen personal identification information (PII) to prepare and file false federal income tax returns with the Internal Revenue Service (IRS) for tax years 2009 and 2010. Many of the individuals whose information was used died during tax years 2009 and 2010, and the defendants further sought refunds using fabricated employment and income information.
According to court records, Frederick traveled to Haiti in 2012, shortly before the charges were filed against him. He was apprehended in Port-au-Prince, Haiti, on July 17, 2018.
Jean Noel was sentenced on April 17, 2018 to 75 months in prison, followed by 4 years of supervised release, and ordered to pay $1.79 million in restitution. The defendant previously pled guilty to one count of conspiracy to defraud the U.S. government, one count of aggravated identity theft, and one count of failure to appear.
Prophete, 34, of Miami, was sentenced on April 16, 2013 to 61 months in prison, followed by 3 years of supervised release, and ordered to pay $1.85 million in restitution. Prophete previously pled guilty to one count of conspiracy to file false and fraudulent claims and another count of aggravated identity theft.
Edy St. Jean remains a fugitive.
U.S. Attorney Fajardo Orshan commended the investigative efforts of IRS-CI, the USSS, and NMBPD in this matter. She also thanked the U.S. Marshals Service, South Florida Regional Fugitive Task Force for their assistance in locating and apprehending Frederick. The case was prosecuted by Assistant U.S. Attorney Christopher Browne.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov at www.usdoj.gov/usao/fls.
Former Starkey President Sentenced in Massive Fraud Scheme Perpetrated Against Starkey LaboratoriesRead the Press Release
Jerome Ruzicka, 62, was sentenced today in United States District Court in Minneapolis by Chief Judge John R. Tunheim to 84 months of federal prison. Ruzicka and co-defendant W. Jeffery Taylor, 57, were convicted on March 3, 2018, of charges related to stealing more than $15 million from the Eden Prairie-based Starkey Laboratories, Inc. (Starkey) and its principal owner William F. Austin, as well as one of Starkey’s suppliers, Sonion. Chief Judge John R. Tunheim presided over the trial, which lasted nearly eight weeks, in Minneapolis, Minnesota.
Taylor and defendants, Jeffery Longtain, 59, and Scott A. Nelson, 60, will be sentenced on December 20, 2018, by Chief Judge John Tunheim for their roles in the fraud scheme. Longtain pleaded guilty on April 20, 2017, to a criminal information charging him with one count of making and subscribing a false return. Nelson pleaded guilty on December 19, 2017, to a criminal information charging him with one count of conspiracy.
United States Attorney Erica H. MacDonald, announcing the sentencing, said, “The defendant served as the President of Starkey Laboratories and had the confidence and trust of the company’s owner and its employees. Mr. Ruzicka abused that trust when he stole millions of dollars through a brash and complex fraud scheme. The sentence imposed today marks the end to a long and meticulous investigation and trial.”
"It is unfortunate that Ruzicka misused his position of trust over a period of years to steal millions from a company that does so much to give the gift of hearing to so many people in need," said Special Agent in Charge Jill Sanborn of the FBI Minneapolis Division. "Corporate fraud has far-reaching negative effects on so many institutions and individuals and that's why the FBI continues to work tirelessly with our criminal justice partners to detect corporate fraud and hold those responsible to account for their crimes."
“IRS Criminal Investigation, along with the U.S. Attorney’s Office and other law enforcement agencies, will continue to investigate individuals who misuse their position of trust and authority within their corporations. As all financial transactions leave a trail, IRS Criminal Investigation special agents used their accounting skills and expertise to analyze the complex financial transactions made by the defendant. The sentencing of this individual should serve as a deterrent to those who might contemplate similar fraudulent actions,” stated Special Agent in Charge Gabriel Grchan of the IRS Criminal Investigation Chicago Field Office.
"Today's sentence illustrates that regardless of your economic status, financial fraud on any level is still a crime, and criminals will be held accountable for their actions. Postal Inspectors will continue to protect the integrity of the U.S. Postal Service and aggressively investigate those cases where the U.S. Mails are used to defraud individuals and businesses of money and property," said Lesley Allison, (Acting) Postal Inspector in Charge for the Twin Cities Field Office, Denver Division.
As proven at trial, between 2006 and September 2015, Ruzicka and Taylor worked together to embezzle and misappropriate money and business opportunities belonging to Starkey and Sonion, a major supplier of hearing aid components to Starkey. The defendants, using their leadership positions, deployed various tactics to steal from Starkey, including controlling a complicated web of sham companies and dummy entities, surreptitiously awarding themselves restricted stock in Starkey’s retail affiliate, and embezzling money from the company by causing payments to be made by Starkey for the benefit of the defendants and others.
For example, as proven at trial, Ruzicka and Taylor controlled a sham entity, Archer Acoustics. Taylor falsely represented to Sonion this entity was a Starkey affiliate, thereby securing Starkey’s discounted pricing on hearing-aid components for Archer Acoustics. The defendants obtained at least $600,000 in profits, commissions, and rebates by fraudulently leveraging Starkey’s purchasing power for their own benefit.
Another facet of this scheme related to Starkey’s retail affiliate, Northland Hearing Centers. The purpose of Northland was to acquire and operate retail hearing aid establishments. In 2013, after awarding themselves restricted stock in Northland, Ruzicka and Nelson paid themselves and Longtain approximately $15 million in exchange for terminating the restricted stock grants.
As proven at trial, in 2014, Ruzicka additionally embezzled $200,000 from Starkey under the guise of “officer’s insurance.” He used those funds to pay his state and federal personal income taxes. Ruzicka also stole a 2011 Jaguar automobile that Starkey purchased for Ruzicka’s use at a cost of $119,188.77. Starkey paid the fees, insurance premiums, and other costs associated with the automobile. Nevertheless, in July 2015, Ruzicka transferred ownership of the car from Starkey to himself by signing the title as both representative of the seller and also as the buyer. He did not pay Starkey for the vehicle, nor was it reported as a taxable benefit.
When some details of the scheme were discovered in September 2015, Ruzicka was terminated by Starkey.
This case was the result of an investigation conducted by the FBI, Criminal Investigation Division of the IRS, and the United States Postal Inspection Service.
Assistant United States Attorneys Benjamin Langner and Surya Saxena, and former Assistant United States Attorney Lola Velazquez-Aguilu prosecuted the case.
Defendant Information:
JEROME C. RUZICKA, 61
Plymouth, Minn.
Convicted:
- Mail fraud, 4 counts
- Wire fraud, 3 counts
- Tax fraud, 1 count
Sentenced:
- 84 months imprisonment
- 1 year supervised release
- Court will issue a restitution order
Former Police Officer Pleads Guilty to Using Unreasonable ForceRead the Press Release
COLUMBUS, Ohio – A former Franklin Township police officer has pleaded guilty to using excessive force as a law enforcement officer.
Robert Wells, 49, of Pataskala, Ohio, pleaded guilty to one count of deprivation of rights under color of law.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Franklin County Prosecutor Ron O’Brien announced the plea offered today before U.S. Magistrate Judge Norah McCann King.
Wells was charged by indictment in September 2018. According to the charging document, on May 1, 2018, while acting in his then official capacity as a Franklin County Township police officer, Wells kicked an individual in the head while the victim was lying handcuffed on the ground. This deprived the victim of his Constitutional right to be free from the use of unreasonable force by a law enforcement officer and resulted in bodily injury to the victim.
Additionally, Wells then made false and misleading statements in his report relating to the arrest of the victim in order to cover up the excessive force and create a false understanding of the circumstances surrounding the arrest and injury.
U.S. Attorney Glassman commended the investigation of this case by the FBI. The case is being prosecuted by Criminal Chief Kenneth L. Parker and Franklin County Prosecutor Ron O’Brien, who has been designated as a Special Assistant United States Attorney.
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Former Office Manager Sentenced to 60-Months in Prison for His Role in Embezzlement and Bank Fraud SchemeRead the Press Release
TUCSON, Ariz. – On Dec. 18, 2018, Seth Nichols was sentenced by United States District Judge Cindy Jorgensen to 60 months in prison. Nichols had previously pleaded guilty to bank fraud.
Nichols used several accounting schemes to embezzle approximately $3,000,000 from his former employer, Marana Stockyards and Livestock Market. He used some of the stolen money to purchase cattle for Nichols Cattle, Inc., a family owned-and-operated cattle business, ownership interest in a helicopter, a down payment for a home, and gambling excursions to Las Vegas. Nichols used elaborate techniques to hide the stolen money, including photo-shopping bank statements and altering internal accounting systems.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by the U.S. Attorney’s Office, District of Arizona, Tucson.
CASE NUMBER: CR18-00167 -TUC-CKJ
RELEASE NUMBER: 2018-173_Nichols
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Former Miles City postmaster sentenced in meth conspiracyRead the Press Release
BILLINGS—Stephen Michael Miller, the former postmaster of the U.S. Postal Service Office in Miles City, was sentenced to five years of probation and fined $2,500 today in federal court for his role in a conspiracy to distribute methamphetamine that came through the mail, U.S. Attorney Kurt G. Alme said.
Miller, 59, pleaded guilty earlier to conspiracy to possess with intent to distribute meth.
U.S. District Judge Susan P. Watters presided at sentencing.
An investigation found that between 2013 and August 2015 there was a conspiracy to send meth through the mail for distribution in the Miles City area. Several other defendants have been convicted and sentenced in the case. One of the co-conspirators, James Toms, who received his meth through the post office, was sentenced in April 2018 to 96 months in prison and five years of supervised release for conviction on possession with intent to distribute meth.
Miller, who was the postmaster in Miles City, used his position to warn Toms that the police had been monitoring mail sent to his residence. On one occasion, Miller intercepted for Toms a package that contained about four ounces of meth. Miller delivered the package to Toms in exchange for one ounce of the meth. Four ounces of meth is the equivalent of about 904 individual doses.
Assistant U.S. Attorney Colin Rubich prosecuted the case, which was investigated by the Drug Enforcement Administration, FBI, Eastern Montana High Intensity Drug Trafficking Area Task Force and Miles City Police Department.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Former Mcconnellsburg High School Basketball Coach Sentenced to over Seven Years’ Imprisonment for Child ExploitationRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that the Former McConnellsburg High School Basketball Coach, Dane Robert Pollock, age 35, of McConnellsburg, Pennsylvania, was sentenced on December 18, 2018, to 86 months’ imprisonment by U.S. District Court Judge Sylvia H. Rambo for receipt and distribution of child pornography. Following Pollock’s seven-year sentence, Judge Rambo imposed a 10-year period of supervised release and a host of strict conditions Pollock must comply with, including having no unsupervised contact with minors under age 18, engaging in no contact with the victims and registering as a sex offender.
According to United States Attorney David J. Freed, Pollock took sexually explicit, nude photographs and videos of at least one female student who was under the age of 18 years of age in 2016. During the investigation, agents identified other minor victims Pollock had exploited between 2011 and 2016, while Pollock was the basketball coach and athletic director.
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant U.S. Attorney Meredith A. Taylor prosecuted the 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.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Former Investment Bank Employee Pleads Guilty to Insider Trading SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that WOOJAE JUNG, a/k/a “Steve Jung,” pled guilty today to one of count of securities fraud relating to his scheme to buy stock based on material nonpublic information. JUNG’s plea was taken by U.S. Magistrate Judge Debra Freeman and will be transmitted to U.S. District Judge Lewis A. Kaplan for consideration.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Woojae Jung pled guilty today to using favorable material nonpublic information taken from his investment bank employer in order to generate illicit profits, netting nearly $130,000 in illegal gains. Our Office will continue to fight insider trading and ensure that those who cheat in our financial markets are held to account.”
According to the Information, the allegations in the Complaint, and statements made during the proceedings in Manhattan federal court:
JUNG worked at an investment bank (the “Investment Bank”) that provided, among other services, financing and consulting to clients in connection with mergers, acquisitions, and corporate restructurings. The Investment Bank has offices around the world, including in New York, New York, and San Francisco, California. JUNG was a vice president. In his role as a vice president at the Investment Bank, JUNG had access to, among other materials, electronic files maintained on the Investment Fund’s computer server, including files containing material nonpublic information (“MNPI”) relating to various clients.
JUNG used his position at the Investment Bank to obtain MNPI about a number of the Investment Bank’s clients and then, in multiple instances, JUNG used that MNPI to cause profitable securities trades. In an effort to conceal this illicit trading, JUNG caused these illegal trades to be conducted through a brokerage account held in the name of another person. In contravention of his employer’s rules about outside investment accounts, JUNG accessed, used, and traded in that account repeatedly between in or about 2015 and in or about 2017, including on hundreds of occasions when the account was accessed through IP addresses subscribed in JUNG’s name.
Over the course of the scheme JUNG traded in securities of at least 10 companies based on MNPI and made more than approximately $130,000.
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JUNG, 37, of San Francisco, California, pled guilty to one count of securities fraud, which carries a maximum penalty of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding work of the FBI. He also thanked the Securities and Exchange Commission, which previously filed civil charges against JUNG in a separate action.
The prosecution of this case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Andrew Thomas is in charge of the case.
Former Fayette County Horse Farm Manager Sentenced in Fraud SchemeRead the Press Release
Memphis, TN - Zachary M. Baker, 32, was sentenced to serve 33 months in federal prison in connection with theft of over $800,000 from his former employer. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the sentence today.
Baker entered a guilty plea to a one-count information in August. According to the information, Baker was hired to manage Masterson Farms, a horse breeding farm located in Somerville, Tennessee. Beginning in January 2013, Baker began stealing from Masterson Farms by writing checks payable to himself; Zigadoo Moneyclips, a band he managed; and another individual identified as "E.L.M." According to the information, Baker also stole funds by making online payments on his personal credit card accounts with funds transferred from the Masterson Farms bank accounts. Between January 2013, and April 9, 2018, the information alleged that Baker stole over $810,000.
On Wednesday, December 19, 2018, U.S. District Court Judge John T. Fowlkes Jr., sentenced Baker to 33 months in federal prison. In addition, Baker was sentenced to two years supervised release and ordered to pay restitution to Masterson Farms, Capital One and Sedgwick in the total amount of $838,010.58.
U.S. Attorney D. Michael Dunavant said, "Financial fraud can happen anywhere, and can be devastating to local businesses. The defendant used his position of trust and authority to steal proceeds for his own personal benefit and unjust enrichment, and his dishonesty has been exposed. Wherever fraud occurs in the Western District of Tennessee, this office will be prepared to hold offenders accountable."
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Carroll L. André III, prosecuted this case on the government’s behalf.
Former Clinton Woman Sentenced to Prison for Social Security FraudRead the Press Release
DAVENPORT, IA – On December 17, 2018, Shantae Daane Salther, age 40, formerly of Clinton, was sentenced by United States District Court Chief Judge John A. Jarvey to 12 months and one day of imprisonment, after being found guilty of False Statements, announced United States Attorney Marc Krickbaum. Salther was ordered to serve a period of supervised release of three years and a $100 special assessment payable to the Crime Victims’ Fund.
Salther was found guilty by a jury on August 3, 2018. Salther alleged disability as of July 1, 2014, due to several issues including a traumatic brain injury and complications from a motorcycle accident. When applying for disability benefits through the Social Security Administration, Salther alleged functional limitations specifically, that she could not drive and could not go out of the house alone. As a result of her application, Salther was evaluated by a psychologist who stated she was malingering and she had presented false information. In addition, the investigation revealed Salther lied about her functional information. Evidence presented at trial revealed Salther was able drive and go out of the house alone.
This matter was investigated by the Social Security Administration Office of Inspector General and the State of Iowa Department of Inspections and Appeals. This case was prosecuted by the United States Attorney’s Office-Southern District of Iowa.
Former City Commissioner Heads to Prison for Health Insurance Fraud SchemeRead the Press Release
McALLEN, Texas ‐ A former Pharr City Commissioner has been ordered to prison in connection with a scheme to defraud Blue Cross Blue Shield of Texas, announced U.S. Attorney Ryan K. Patrick. Oscar Elizondo, 48, of Pharr, pleaded guilty to conspiracy to commit health care fraud Nov. 29, 2017.
Elizondo was charged with conspiring with the owner of Penitas Family Pharmacy aka Riverside Pharmacy, located in Penitas, to submit more than $1.7 million in fraudulent claims to Blue Cross Blue Shield of Texas (BCBS) for expensive pain patches and scar creams.
Today, U.S. District Judge Randy Crane imposed a 22-month prison sentence to be followed by a three-year term of supervised release. Elizondo was also ordered to pay more than $1.4 million in restitution to BCBS, the amount they paid based on the fraudulent claims.
In handing down the sentence, Judge Crane characterized the scheme as “blatant fraud” and a “complete ruse.” Crane further noted that although the fraudulent claims were submitted to BCBS, the scheme also defrauded local school districts, municipalities and small businesses, who had self-funded health insurance programs through BCBS.
Co-defendant Omar Espericueta, 46, of Palmhurst, pleaded guilty Dec. 1, 2017, and is set for sentencing in May 2019.
During an approximately five-month period starting in late 2015, Elizondo and his co-conspirators recruited marketers to target employees of entities throughout the Rio Grande Valley with BCBS insurance. The marketers solicited employees with meals, drinks and promises of “free” prescription pain patches and scar creams in order to obtain their health insurance information. The co-conspirators then used the insurance information, along with fraudulent prescriptions, to submit hundreds of fraudulent and medically unnecessary claims to BCBS. Prescriptions were written for individuals who never saw a doctor and did not want or need pain patches or scar creams. Other individuals were taken to a doctor, but it was a doctor with whom Elizondo and his co-conspirators had made arrangements to sign fraudulent prescriptions in exchange for cash, fake loans and prescription pain killers.
Employees who were targeted in the scheme were falsely told that the prescription medication was “free,” when in reality Penitas Pharmacy planned to use their health insurance information to bill BCBS for several thousand dollars worth of prescriptions for each employee. In many instances, the defendants billed BCBS for prescriptions that were never delivered to employees, including multiple refills that were never requested.
Elizondo was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI, Mission Police Department, Texas Department of Insurance – Fraud Unit and Texas Health and Human Services Commission conducted the investigation. Assistant U.S. Attorney Andrew Swartz is prosecuting the case.
Former CFO at Long Island Mortgage Lender Sentenced to 18 Months’ Imprisonment for FraudRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Edward Sypher, Jr., formerly the Chief Financial Officer of Long Island mortgage lender Vanguard Funding, LLC (Vanguard), was sentenced by United States District Judge Sandra J. Feuerstein to 18 months’ imprisonment to be followed by three years’ supervised release. The amount of restitution will be determined by the Court at a later date. Sypher was also ordered to pay $22,150.45 in forfeiture. In February 2018, Sypher pleaded guilty to conspiring to commit wire and bank fraud in connection with the diversion of warehouse loans that Vanguard had fraudulently obtained purportedly to fund home mortgages and mortgage refinancing.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Maria T. Vullo, Superintendent, New York State Department of Financial Services (DFS), announced the sentence.
“Edward Sypher, Jr., has been punished for deceiving his banking partners in order to divert millions of dollars to his own benefit and that of other Vanguard executives,” stated United States Attorney Donoghue. “This Office, working hand-in-hand with our law enforcement partners, will continue to vigorously investigate and prosecute business executives who choose to commit fraud as a means of getting ahead at the expense of the businesses and residents of our district.”
“When fraudsters treat investors like their own personal ATMs, using funds invested in good faith to line their own pockets, pay for personal expenses, and repay other fraudulent loans, confidence in the integrity of our financial systems suffers,” stated FBI Assistant-Director-in-Charge Sweeney. “Thanks to the diligent work of the FBI and our partners, Sypher will be held accountable for his crimes.”
“DFS is proud to have worked with the U.S. Attorney’s office and other law enforcement partners to bring this defendant to justice,” said DFS Superintendent Vullo. “We will continue to combat the serious issue of fraud in order to safeguard the industry and protect consumers.”
Vanguard was a 33-branch, mortgage lending institution licensed in California, Connecticut, Florida, Georgia, Maryland, Massachusetts, North Carolina, New Jersey, New York, Pennsylvania and Washington. Between August 2015 and March 2017, Sypher and his co-conspirators at Vanguard engaged in a multi-million dollar fraud scheme by falsely representing that the loan proceeds would fund specific mortgages, or refinance specific mortgages, for Vanguard clients. Instead, Sypher and his co-conspirators diverted the funds to pay personal expenses and compensation, and to pay off loans they had previously obtained through fraudulent loan applications.
On December 10, 2018, Matthew T. Voss, Vanguard’s former Chief Operating Officer, was sentenced to 24 months’ imprisonment for his role in the scheme.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Whitman G.S. Knapp and Elizabeth Losey Macchiaverna are in charge of the prosecution.
The Defendant:
EDWARD SYPHER, JR.
Age: 41
Scarsdale, New YorkE.D.N.Y. Docket No. 18-CR-028 (SJF)
Former Blackwater Employee Found Guilty of Murder in Fatal 2007 Shooting at Nisur Square in IraqRead the Press Release
WASHINGTON - Nicholas Slatten, 35, a former security guard for Blackwater USA, was found guilty today of the federal offense of first-degree murder in the killing of Ahmed Haithem Ahmed Al Rubia’y, one of 14 unarmed civilians who were killed in a shooting by Blackwater guards that took place at Nisur Square in Bagdhad on Sept. 16, 2007.
The jury verdict, in the U.S. District Court for the District of Columbia, was announced by Jessie K. Liu, U.S. Attorney for the District of Columbia, and Matthew J. DeSarno, Special Agent in Charge of the FBI’sWashington Field Office’s Criminal Division.
Slatten remains held pending his sentencing by the Honorable Royce C. Lamberth. No sentencing date was set. The murder charge calls for a mandatory sentence of life in prison.
Slatten, formerly of Sparta, Tenn., initially was found guilty of the murder charge in October 2014, following a trial in the same courtroom. Three other former guards for Blackwater USA also were found guilty in that trial, of voluntary manslaughter, attempted manslaughter, and other charges. Slatten subsequently was sentenced in April 2015 to a mandatory term of life in prison without parole; the co-defendants were each sentenced to 30 years and one day in prison.
The defendants appealed the convictions. In August 2017, the District of Columbia Circuit of the U.S. Court of Appeals reversed Slatten’s conviction. The appeals court also ordered Slatten’s three co-defendants -- Paul Alvin Slough, Evan Shawn Liberty, and Dustin Laurent Heard -- to be re-sentenced for their roles in the crime. Slough, Liberty and Heard remain in custody and their re-sentencing proceedings remain pending before Judge Lamberth.
Slatten initially was retried on the murder charge last summer but a mistrial was declared on Sept. 5, 2018, after that jury was unable to reach a verdict. The current trial began on Nov. 5, 2018, and the jury reached the guilty verdict on its fifth day of deliberations.
During the trial, the government presented testimony from 34 witnesses, including four who came to the United States to testify from Iraq.
According to the government’s evidence, at approximately noon on Sunday, Sept. 16, 2007, several Blackwater security contractors, including Slatten and his former co-defendants, opened fire in and around Nisur Square, a busy traffic circle in the heart of Baghdad.
When they stopped shooting, 14 Iraqi civilians were dead. Those killed included 10 men, two women, and two boys, ages 9 and 11. Another 18 victims were injured. According to the evidence, Slatten was the first to fire, without provocation, killing Ahmed Haithem Ahmed Al Rubia’y, an aspiring doctor, who was driving his mother to an appointment.
Slatten was among 19 Blackwater security contractors assigned to a convoy of four heavily-armed trucks known as a Tactical Support Team, using the call sign “Raven 23.” Shortly before noon, Raven 23 learned that a car bomb had detonated in central Baghdad near a location where a U.S official was being escorted by a Blackwater personal security detail team. Raven 23 team members promptly reported to their convoy vehicles, and the convoy drove to a secured checkpoint between the Green Zone and Red Zone.
Once there, in disregard of an order from Blackwater’s command, the team’s shift leader directed Raven 23 to leave the Green Zone and establish a blockade in Nisur Square, a busy traffic circle that was immediately adjacent to the Green Zone. All told, seven of the 19 members of Raven 23 fired their weapons.
This case was investigated by the FBI’s Washington Field Office. The Iraqi Ministry of Interior and the Iraqi National Police provided cooperation and assistance in the investigation.
The retrial of the case was prosecuted by Assistant U.S. Attorneys T. Patrick Martin, Fernando Campoamor-Sanchez, and Karen Seifert, and Special Assistant U.S. Attorney Alexandra Hughes, all of the U.S. Attorney's Office for the District of Columbia.
Five Men Indicted for Armed Robberies of Kay Jewelers and Firearm ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that a Federal grand jury in Raleigh has returned a five-count indictment charging CHARLES ANTHONY WALKER, JR., age 53, of High Point, North Carolina, CHRISTOPHER WELLINGTON BROWN, age 48, of Chapel Hill, North Carolina, MALIK SHAWN MAYNARD, age 48, of Durham, North Carolina, BYRON JACOBEE SPARKS, age 25, of Greensboro, North Carolina, and JOEY WAYNE CHAMBERS, age 23, of High Point, North Carolina, with various offenses in relation to the armed robberies of Kay Jewelers in Elizabeth City and Garner, North Carolina.
The indictment alleges that the defendants conspired to rob the Kay Jewelers located on Conlon Way in Elizabeth City to take place on July 28, 2018, as well as the Kay Jewelers located on Eagle Wing Way in Garner on October 11, 2018. During the robberies of both Kay Jewelers locations, BROWN and MAYNARD brandished firearms and were aided and abetted by WALKER.
If convicted of these charges, WALKER, BROWN, and MAYNARD, each face a sentence not less than 32 years’ imprisonment and not more than 5 years supervised release, while CHAMBERS and SPARKS face up to 20 years’ imprisonment and not more than 3 years supervised release.
The charges and allegations contained in the Indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
This case is part of the Take Back North Carolina Initiative, a strategy implemented by United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case is being investigated by the Federal Bureau of Investigation (FBI), the Elizabeth City Police Department, the Garner Police Department, and the Greensboro Police Department. Assistant United States Attorneys Robert J. Dodson and Daniel William Smith are prosecuting the case for the government.
Five KC-Area Residents Charged in Drug-Trafficking Conspiracy After Officers Seized 25 Pounds of MethRead the Press Release
KANSAS CITY, Mo. – Five Kansas City, Mo., area residents were charged in federal court today for their roles in a drug-trafficking conspiracy after law enforcement officers seized approximately 25 pounds of methamphetamine during an undercover operation.
Alfredo Soto-Contreras, also known as “Antonio,” 34, Omar Eliseo Barraza-Bueno, also known as “Shell,” 31, Rey Moreno-Chepe, also known as “Chepe,” 24, Daniel Calderon-Vargas, 29, and Nayeli Fuentes-Verdugo, 30, were charged in a two-count complaint filed in the U.S. District Court in Kansas City, Mo. They remain in federal custody pending a detention hearing, which has not yet been scheduled.
The federal criminal complaint charges each of the five defendants with participating in a conspiracy to distribute methamphetamine from May 17 to Dec. 18, 2018.
In addition to the conspiracy, four of the defendants – Barraza-Bueno, Moreno-Chepe, Calderon-Vargas and Fuentes-Verdugo – are charged together in one count of aiding and abetting each other to possess methamphetamine with the intent to distribute. They were arrested on Tuesday, Dec. 17, 2018, when they met with an undercover federal law enforcement agent to deliver approximately 25 pounds (more than 11 kilograms) of methamphetamine.
According to an affidavit filed in support of the federal criminal complaint, the defendants are part of an armed drug-trafficking organization that federal agents have been investigating in the Kansas City, Mo., metropolitan area. During the investigation, an undercover agent has purchased 14 firearms and approximately three kilograms of methamphetamine.
The affidavit cites several transactions in which Soto-Garcia and Barraza-Bueno sold firearms (some of which were stolen) and methamphetamine to the undercover officer.
Barraza-Bueno allegedly met with the undercover officer on Oct. 3, 2018, and discussed the purchase of large quantities of methamphetamine. Barraza-Bueno told the undercover officer that he purchases 80 pounds of methamphetamine every month or 20 pounds every week. During the discussion, the affidavit says, Barraza-Bueno agreed to sell the undercover officer 100 pounds of methamphetamine for $270,000. On Dec. 10, 2018, Barraza-Bueno told the undercover officer that he had 40 pounds of methamphetamine and could obtain an additional quantity to conduct the delivery on Dec. 18, 2018. When they met the undercover officer for the transaction on that day, Barraza-Bueno, Moreno-Chepe, Calderon-Vargas and Fuentes-Verdugo were arrested by federal agents.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration.
Five Defendants Indicted for $770,000 Drug-Trafficking ConspiracyRead the Press Release
KANSAS CITY, Mo. – Five defendants, including four from the Kansas City, Mo., metropolitan area, have been indicted for their roles in a $770,000 drug-trafficking conspiracy.
David Brian Greiner, also known as “Abel,” 54, Stephanie Marie Marquez, 46, and Howard Tyrone Neely, 36, all of Kansas City, Mo., Cathy Lynn Clark-Walskie, 43, of Kansas City, Kan.; and Tyree Laron West, also known as “Mad Max,” “Dirty,” “Chipper,” and “Hitman,” 40, of Houston, Texas; were charged in a five-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, Dec. 12, 2018. That indictment was unsealed and made public yesterday upon the arrests of Greiner and Marquez.
The federal indictment alleges that Greiner, Marquez, Neely, Clark-Walskie and West participated in a conspiracy to distribute heroin, PCP, methamphetamine and crack cocaine from Jan. 1, 2016, to Dec. 12, 2018. According to the indictment, they obtained approximately $770,000 in exchange for the unlawful distribution of more than 45 kilograms of methamphetamine at $6,000 a pound, 24 gallons of PCP at $300 an ounce, 25 ounces of heroin at $1,200 an ounce and 11 ounces of crack cocaine at $100 a gram.
Greiner, Marquez, Neely and West are also charged together in one count of possessing and using firearms in furtherance of violent crimes and drug-trafficking crimes. They allegedly were in possession of a loaded Berretta .40-caliber semi-automatic handgun, a CZ 75 .40-caliber semi-automatic pistol with magazine and ammunition, a Glock .40-caliber semi-automatic pistol with magazine and ammunition, a Heritage .22-caliber revolver and ammunition, and a Remington sawed-off shotgun.
Greiner, Neely and West are also charged together in one count of being felons in possession of firearms and ammunition.
The federal indictment alleges that Greiner, Marquez, Neely, Clark-Walskie and West participated in a money-laundering conspiracy to use drug sale proceeds to promote the drug-trafficking conspiracy and to conceal drug sale proceeds of that drug trafficking conspiracy.
The indictment also contains a forfeiture allegation, which would require all five co-defendants to forfeit to the government any property derived from the proceeds of the alleged offenses, including a money judgment of $770,000.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Federal Jury Convicts Defendant of Witness Tampering by Threat of DeathRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury has found William Raymond Beach (40, Tampa) guilty of tampering with a federal witness by threat of death. Beach faces a maximum penalty of 20 years in federal prison. His sentencing hearing is scheduled for March 1, 2019.
Beach was indicted on June 21, 2018.
According to testimony and evidence presented at trial, Beach tampered with a key witness in a federal investigation and prosecution involving a fentanyl overdose death. After Beach was told that the witness had met with “a federal attorney” and was a witness in the case, Beach informed the witness that, if the witness continued to assist the United States, he would shoot and kill the witness. In other conversations, Beach described a desire to shoot a law enforcement officer and then flee to another state, and to commit other acts of violence, including violence directed at the witness.
This case was investigated by the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Thomas N. Palermo.
Federal Inmate Hit with More Time for Prison AssaultRead the Press Release
Federal inmate Michael Griesinger, 24, has been sentenced to serve 46 additional months in prison for assaulting and seriously injuring another inmate, United States Attorney Steven D. Weinhoeft announced today. The assault occurred in November 2017, when both Griesinger and the victim, identified only as J.B. in court records, were incarcerated at the Federal Correctional Institution in Greenville, Illinois. Griesinger pleaded guilty to the charge earlier this year.
During the proceedings, the district court heard evidence that Griesinger became upset because J.B. was watching TV on a particular television. Griesinger struck J.B. with his fists, and other inmates rushed in, resulting in a multiple inmate brawl. Correctional officers were able to break up the fight by spraying a mace-like substance. J.B. emerged with a broken jaw. No other inmate suffered any serious injuries.
Griesinger was serving time for knowingly possessing a firearm with an obliterated serial number. His 46-month sentence was ordered to run consecutively to the sentence he is currently serving on that charge. Griesinger is now projected for release in early 2021.
The case was investigated by the Bureau of Prisons’ Special Investigations Section. The case was prosecuted by Assistant United States Attorney Angela Scott.
Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Sherri A. Lydon announced today that a Federal Grand Jury in Florence, South Carolina, returned Indictments against the following:
Horry and Dillon County Men Indicted for Illegal Reentry into the United States After Deportation. Luis Fernando Roldan-Quiroz of Horry County, South Carolina, and Wilfredo Alcantara-Garcia of Dillon County, South Carolina, were each charged in a single-count indictment with illegal reentry into the United States after deportation. The maximum penalty Roldan-Quiroz and Alcantara-Garcia could receive is ten years in federal prison. These cases were investigated by Immigration and Customs Enforcement – Enforcement and Removal Operations and are assigned to Assistant United States Attorney A. Bradley Parham of the Florence Office for prosecution.
Florence Woman Indicted for Embezzling Money from the Social Security Administration, Using a Computer to Commit Fraud, and Aggravated Identity Theft. Kianna Parrott of Florence, South Carolina, was charged in a 4-count indictment with embezzling money from the Social Security Administration, using a computer to commit fraud, and aggravated identity theft. The maximum penalty Parrott could receive is 10 years in federal prison. The case was investigated by the Social Security Administration – Office of Inspector General and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence Office for prosecution.
Horry County Man Indicted for Being a Felon in Possession of a Firearm. Tony Dewayne Rollins of Horry County, South Carolina, was charged in a single-count indictment with illegal possession of a firearm by a person convicted of a felony. The maximum penalty Rollins could receive is 10 years in federal prison. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and is assigned to Assistant United States Attorney Justin W. Holloway of the Florence Office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Farmington Man Sentenced for Sex Trafficking and Child PornographyRead the Press Release
Nakia Phillips, 39, of Farmington, Missouri, was sentenced today to 22 years in prison for sex trafficking crimes. He appeared in federal court this morning before U.S. District Court Judge Ronnie White.
According to court documents, Phillips admitted he forced the girl into prostitution in St. Louis in 2016. He also forced her to perform sex acts on him and filmed them with his cellphone. Farmington police were called when the teen reported the rapes to the staff of a hospital.
Phillips has prior convictions for statutory rape and sodomy in St. Louis County and a 2012 federal conviction for failing to register as a sex offender. He violated his probation in both cases.
Phillips pled guilty in September to three counts of possession of child pornography.
“I commend the victim in this case, who appeared in Court today and showed incredible bravery and dignity as she offered an impact statement during the sentencing hearing. It is impossible to understand what she was put through as a child, by this Defendant,” said U.S. Attorney Jeff Jensen.
The case was investigated by the Federal Bureau of Investigation and the Farmington Police Department. AUSA Colleen Lang handled the case for the United States Attorney’s Office.
False Liens Yield 30-Month SentenceRead the Press Release
PHOENIX – On Dec. 17, 2018, David John Dziedzic, 55, of Scottsdale, Ariz., was sentenced by U.S. District Judge David G. Campbell to 30 months’ imprisonment for his lead role in criminal activity related to the short sale of distressed mortgages, some of which were federally-insured. Dziedzic had previously pleaded guilty to one count of communication of unregistered securities, and a separate count involving the failure to notify the Treasury Department of his collection of more than $10,000 in cash from a real estate customer.
Dziedzic operated the “Housing Angels” program through his company, Real Core Realty, LLC. He aggressively marketed a program designed to help homeowners stay in their homes following a short sale, through an undisclosed sale-leaseback program with “angel” investors. Through this program, he typically received commissions from both the buyer and the seller in a short sale transaction. Dziedzic also recorded false secondary liens on more than 100 short sale properties to induce banks holding primary mortgages to pay off the false secondary mortgages, resulting in more than $100,000 in illegal profits as a result of the scheme.
As part of the sentence, Dziedzic must give up his real estate license. He paid $107,280 in restitution for the actual loss caused when 40 banks paid out on the false liens, and he was also ordered to pay a money judgment of $142,000 over time, in order to disgorge additional profits. As part of the plea agreement, Dziedzic, a Canadian national who naturalized as a U.S. citizen during the investigation, agreed to cooperate in his denaturalization, because he had failed to disclose the existence of the investigation to U.S. Citizenship and Immigration Services during the naturalization process.
Dziedzic’s wife, Heather Hamilton Dziedzic, 43, pleaded guilty to a related misdemeanor charge, and was also sentenced for her role in the offense. She will also surrender her real estate license. She received a two-year term of probation and a deferred disposition on a felony securities charge, which may be dismissed upon successful completion of the probationary term.
The investigation in this case was conducted by Internal Revenue Service – Criminal Investigation; the Department of Housing and Urban Development, Office of Inspector General; the Federal Housing Finance Agency, Office of Inspector General; and the Federal Bureau of Investigation. The prosecution was handled by Gary M. Restaino and Monica B. Klapper, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-18-1080-PHX-DGC
RELEASE NUMBER: 2017-171_Dziedzic
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Ellwood City Man Pleads Guilty to Distributing CocaineRead the Press Release
PITTSBURGH - A resident of Ellwood City, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Dylan Main, 22, of Ellwood City, Pennsylvania, pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that on May 31, 2018, Main distributed and possessed with intent to distribute less than 50 grams of cocaine, a Schedule II controlled substance.
Judge Schwab scheduled sentencing for May 29, 2019 at 9:30 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine not to exceed $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation that led to the prosecution of Dylan Main. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lawrence County Drug Task Force, Pennsylvania Office of Attorney General, Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. 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.
Ellwood City Man Pleads Guilty in Cocaine Trafficking ConspiracyRead the Press Release
PITTSBURGH - A resident of Ellwood City, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Anthony Washington, Jr., 26, pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that from in and around 2017, and continuing thereafter to in and around May 2018, Washington conspired with others to distribute and possess with intent to distribute less than 50 grams of cocaine, a Schedule II controlled substance.
Judge Schwab scheduled sentencing for May 30, 2019 at 11 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine not to exceed $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation that led to the prosecution of Anthony Washington. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lawrence County Drug Task Force, Pennsylvania Office of Attorney General, Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. 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.