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25 February 2019
Federal Inmate Sentenced to Eight Years in Prison for Assault Resulting in Serious Bodily InjuryRead the Press Release
HONOLULU – A federal inmate, Taloa Latu, 29, was sentenced today to 8 years of imprisonment for committing an assault resulting in serious bodily injury to another inmate. Following his incarceration, Latu will be on supervised release for 3 years.
U.S. Attorney for the District of Hawaii Kenji M. Price announced that, according to court documents and information presented in court, on September 11, 2016, Latu, a State of Hawaii inmate housed at the Federal Detention Center (“FDC”) in Honolulu, repeatedly punched, kicked, and stomped on another inmate. After the assault, the victim was transported to the Queens Medical Center, where he was treated for serious injuries, including a broken jaw and broken ribs. This case was prosecuted in federal court, as the United States has concurrent jurisdiction for crimes committed at FDC, Honolulu. Latu was convicted of the assault on February 15, 2018, following a two and a half day jury trial.
At sentencing, Chief U.S. District Judge J. Michael Seabright commented that Latu “is a grave danger to others,” based in part on his extensive criminal history, which includes multiple prior assault convictions.
The case was investigated by the Federal Bureau of Investigation, with assistance from the Federal Bureau of Prisons. Assistant U.S. Attorneys Morgan Early and Michael Nammar handled the prosecution.
Federal Court Bars Florida Tax Return Preparers from Preparing Tax ReturnsRead the Press Release
A federal court in Orlando, Florida, entered a permanent injunction against Yves Demesmin, Unik Tax Refund LLC, and YvesDemesmin LLC, barring them from preparing federal tax returns for others and owning or operating a tax preparation business, the Justice Department today announced.
The court had earlier ordered that the defendants disgorge $1,251,456.54, representing the ill-gotten gains that they received for the preparation of tax returns. Both orders were signed by Judge Gregory A. Presnell of the U.S. District Court for the Middle District of Florida.
The government alleged that the defendants prepared tax returns making false or fraudulent claims for the Earned Income Tax Credit and fuel tax credit, and reporting false business-related income and expenses, farming-related income and expenses, and phony job-related expenses.
Previously, on April 30, 2018, the court barred co-defendants Joseph Demesmin, UJM Tax Services LLC, Elie Dorceus, Loyal Experience Dependable Tax Service LLC, LED Financial Service LLC, Mario Cooper, Dia Fleming, and Dia I. Fleming LLC from preparing federal tax returns for others and owning or operating a tax preparation business. The court also ordered that these defendants disgorge a combined total of $1,137,873.59 of ill-gotten gains that they received for the preparation of tax returns.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. 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.
Federal Authorities Arrested St. Thomas Boxer for Producing Child PornographyRead the Press Release
St. Thomas, USVI – John Jackson, 30, appeared today before U.S. Magistrate Judge Ruth Miller for a preliminary and detention hearing after his arrest on Saturday by Homeland Security Investigations for Production of Child Pornography, United States Attorney Gretchen C.F. Shappert announced. At this time Jackson remains in custody pending trial.
According to court records, Jackson allegedly transported a fifteen year old minor from a local high school to his residence. There he sexually assaulted the minor female and used the minor’s cellular phone to create a video of himself engaged in the sexual assault upon the minor.
Information provided in the courtroom indicated that Jackson is the son of prominent Virgin Islander and three times world boxing champion Julien “the Hawk” Jackson. He is also a profession boxer in his own right, having represented the Virgin Islands as both an amateur and professional fighter internationally on the mainland United States.
This case is being investigated by Homeland Security Investigations (HSI) and the Virgin Islands Police Department. It is being prosecuted by Assistant United States Attorney Everard E. Potter.
United States Attorney Shappert reminds the public that an arrest warrant is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Suspected child exploitation or missing children cases may be reported to the National Center for Missing and Exploited Children via its toll-free 24–hour hotline at 202-514-5678, or to U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) at (787) 729-6969.
FBI Watched Courier Deliver 3+ Pounds of MethamphetamineRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., man was sentenced today to 80 months in federal prison for acting as a courier to deliver more than three pounds of methamphetamine, U.S. Attorney Stephen McAllister said.
Demetrius Summerson, 28, Kansas City, Kan., pleaded guilty to one count of distributing methamphetamine. In his plea, he admitted that FBI agents had him under surveillance when he delivered more than 3.6 pounds of methamphetamine to a buyer in Lenexa, Kan. The buyer paid Summerson $10,000.
Summerson was working as a distributor for a drug trafficking organization operating in Johnson and Wyandotte counties that was obtaining methamphetamine from a provider in Michoacan, Mexico.
McAllister commended the FBI, the Kansas City, Kan., Police Department and Assistant U.S. Attorney Sheri Catania for their work on the case.
Ex-Pasadena Police Lieutenant Sentenced to One Year in Federal Prison for Unlicensed Selling of Firearms and Lying on ATF FormRead the Press Release
LOS ANGELES – A former lieutenant in the Pasadena Police Department was sentenced today to one year and one day in federal prison for exploiting his status as a police officer to engage in the unlicensed sale of more than 100 firearms and for making a false statement during the purchase of a firearm.
Vasken Kenneth Gourdikian, 50, of Sierra Madre, was sentenced by United States District Judge Stephen V. Wilson, who also ordered Gourdikian to pay a $10,000 fine.
Judge Wilson said he didn’t find credible Gourdikian’s claims of being “a hobbyist who got out of control.” In imposing the prison sentence, Judge Wilson noted, “This was a way for him to make money.”
In September 2018, Gourdikian pleaded guilty to federal charges of engaging in the business of dealing in firearms without a license and making a false statement during the purchase of a firearm.
Gourdikian engaged in the unlicensed sale of at least 108 firearms between March 2014 and February 2017 and used his official status as a police officer to purchase restricted “off roster” firearms. “Off roster” firearms are firearms that in California are not available for purchase by the general public directly from a licensed federal firearms dealer. While police officers are not prohibited from selling “off roster” firearms to the general public, Gourdikian unlawfully engaged in the business of selling firearms without a license.
In advertisements to sell firearms that he posted to an online firearms marketplace, Gourdikian sought to increase the purchase price and desirability of his firearms by describing them as “off roster,” “BNIB” (brand new in box), and “never fired.” Gourdikian admitted in his plea agreement that 80 of the 108 firearms were “off roster” firearms he sold in third-party transactions to non-law enforcement customers. Had Gourdikian possessed a federal firearms license, he would have been unable to sell nearly 75 percent of the 108 firearms he admitted to selling because California law prohibits federal firearms licensees from selling “off roster” firearms to non-law enforcement buyers, court papers state.
Gourdikian also abused his law enforcement position in other ways to benefit his gun-selling scheme. He admitted to circumventing the usual 10-day waiting period required for firearms purchases by using his position as police officer to bypass this state law. Because California law also exempts law enforcement from a general rule that prohibits the purchase of more than one firearm within a 30-day period, Gourdikian often purchased multiple firearms in a single transaction as a means of restocking his sales inventory. Gourdikian re-sold 79 firearms within six days after he purchased them, according to the government’s sentencing memorandum.
Another one of Gourdikian’s admitted offenses was making a false statement on a “re-certification” form for the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives that he signed in 2014 when he took possession of a handgun. He misrepresented on the form that he was the buyer of a firearm when he actually purchased it for another individual, according to his plea agreement. Gourdikian re-sold the gun to another person on the same day he bought it from a gun dealer, court documents state. The purpose of this form is to ensure community safety by allowing law enforcement to monitor who purchases firearms and to track the sales of guns.
Highlighting the danger of Gourdikian’s conduct, court filings also described how, in 2016, one of the firearms that Gourdikian purchased was recovered by local police at the site of a narcotics investigation.
“Mr. Gourdikian’s side business of selling off-roster firearms violated federal law and endangered the public,” said United States Attorney Nick Hanna. “Police officers are permitted to purchase off-roster weapons for their own use and protection, but the law was not designed to give officers a lucrative second career as unlicensed firearms dealers flooding our communities with weapons not available to the general public.”
“The goal of ATF’s illegal firearms trafficking enforcement efforts is to reduce violent crime by stemming the flow of firearms to prohibited individuals,” said the Bureau of Alcohol, Firearms, Tobacco and Explosives (ATF) Los Angeles Field Division Special Agent in Charge Carlos A. Canino. “ATF’s Crime Gun Intelligence Center routinely looks at crime guns recovered at scenes and multiple purchases by individuals. Through analysis, ATF discovered this individual was engaged in the business of dealing in firearms without a license which is a federal violation.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant United States Attorneys Elisa Fernandez of the Public Corruption and Civil Rights Section and Jennifer Chou of the Violent and Organized Crime Section.
Ex-NASA Contractor Who Hacked into Women’s Accounts and Threatened to Publish Nude Photos Sentenced to Nearly 5 YearsRead the Press Release
LOS ANGELES – A former NASA contractor was sentenced today to 57 months in federal prison for hacking into the email, social media accounts and computers of women he knew and then using the information, including nude photographs of the women, to anonymously threaten and harass them for additional explicit pictures.
Richard Gregory Bauer, 28, who resides in the Mid-Wilshire district of Los Angeles, was sentenced by United States District Judge John F. Walter, who called the crimes “disgusting and harmful.”
Bauer pleaded guilty in October to federal charges of stalking, computer hacking and aggravated identity theft. In a plea agreement filed in this case, Bauer admitted that he spent years obtaining unauthorized access to the online accounts of his victims, who included family, friends, high school and college acquaintances, co-workers and friends of friends.
Bauer’s “crimes represent a long-running course of behavior, not a one-off event, or for that matter a brief spree,” prosecutors wrote in a sentencing memorandum.
Starting in early 2015 and continuing through early 2018, Bauer sent his victims anonymous online messages that threatened to publish their nude photographs on the Internet or to the victims’ family and co-workers if they did not send him additional explicit pictures of themselves. As part of the threats, Bauer included in his emails details that made it clear he knew about his victims’ lives, work and families, according to the sentencing memorandum.
Bauer targeted his victims using two methods. In some cases, he used his true identity and contacted victims on Facebook, posing a series of questions purportedly as part of a “human societies” project he claimed he was working on for a class. Some of the questions included ones frequently used to reset online passwords, including the name of the city where your parents met, the name of your first pet, or the brand and model of your first car. In reality, there was no class and Bauer then used the information he obtained to reset passwords, and to gain access to his victims’ online accounts, primarily cloud-based iPhone backups. From those backups, he gathered his victims’ photographs, videos and documents containing passwords for their other accounts.
Other times, Bauer again used his true identity and convinced his victims to install malware that he claimed was software he had written and needed help testing. Once the malware had been installed on the victims’ computers, Bauer used it to harvest account logins, passwords, photographs and videos from his victims’ compromised computers.
Bauer is a former contractor at NASA’s Neil A. Armstrong Flight Research Center, an aeronautical research center located at Edwards Air Force Base. He is a former resident of the High Desert communities of Lancaster and Palmdale.
This case was investigated by NASA’s Office of Inspector General.
This matter was prosecuted by Assistant United States Attorney Khaldoun Shobaki of the Cyber and Intellectual Property Crimes Section.
Ex-Brinks driver sentenced to 20 years in prison for armored car robberiesRead the Press Release
SAVANNAH, GA: A former Brinks, Inc., driver has been sentenced to 20 years in federal prison for his role in staging a pair of armored-car robberies in 2016.
Victor Natson, 28, of Savannah, was sentenced to 240 months in prison by U.S. District Judge Lisa Godbey Wood, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Natson also was ordered to pay restitution of $34,740 and to serve five years of supervised release after completion of his sentence. There is no parole in the federal system.
Natson was convicted in May 2018 along with Savannah resident Joshua Scott, 23, of conspiring to interfere with interstate commerce by robbing armored trucks. In addition, Natson was convicted of aiding and abetting robbery, attempted robbery, and the discharge and brandishing of firearms during crimes of violence, while Scott was convicted of robbery and firearm brandishing charges.
Scott previously was sentenced to 15 years in prison, while a third defendant, Gregory Lamar Plair, 33, who pled guilty in the case, was sentenced to eight years in prison.
According to the evidence presented at trial, during the summer of 2016, Natson recruited Plair, a career criminal and gang member, to rob armored trucks operated by Brinks, Inc. After Natson encouraged Plair to commit the robberies, Plair sought the assistance of his cousin, Scott, who Plair knew had access to stolen firearms. Natson had worked for Brinks as a truck driver for nearly two years and provided Scott and Plair with information about Brinks’ routes, personnel, and procedures. On October 14, 2016, Natson drove the robbers to the intersection of White Bluff Road and Tibet Avenue so they could rob Brinks employees servicing a SunTrust ATM. The trio stole approximately $35,000 and fired one gunshot during the robbery. Natson received a share of the money and drove the getaway car. On January 30, 2017, at Natson’s direction, Scott and Plair attempted to rob a Brinks armored truck parked at a storage facility near Abercorn Street and Truman Parkway. When Scott and Plair accosted the driver, another Brinks employee shot and wounded both would-be robbers. Plair drove himself to St. Joseph’s Hospital for treatment; Scott was transported to Memorial Medical Center by ambulance. Both men were arrested shortly thereafter.
“Natson’s two-decade sentence wraps up the prosecution of an ill-conceived, short-lived and violent crime spree in which, fortunately, only the criminals were injured,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “Three predators are now locked away with a warning to other would-be criminals that no matter what kind of schemes they concoct, law enforcement and prosecutors will work that much harder to put them behind bars.”
“Natson felt his knowledge of the armored car company he worked for would lead him to illicit gains, but instead it opened the doors of a prison cell for a lengthy sentence behind bars,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We are fortunate that no innocent victims were hurt as a result of his selfish desire for wealth.”
The investigation of Natson, Scott, and Plair’s crimes was led by FBI Southeast GA Violent Crimes Task Force, the United States Attorney’s Office for the Southern District of Georgia and the Savannah Police Department, with assistance from the bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Marshals Service, the Georgia Bureau of Investigation, the Georgia Southern University Police Department, the Chatham County Sheriff’s Office, and the Liberty County Sheriff’s Office.
Essex County, New Jersey, Man Admits Social Security FraudRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted defrauding the Social Security Administration (SSA) of more than $200,000, U.S. Attorney Craig Carpenito announced.
Fernando Solaris, 63, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to a superseding information charging him with Social Security disability fraud and theft of government property.
According to documents filed in this case and statements made in court:
After immigrating to the United States in 1970, Solaris applied for, and received, three Social Security numbers (SSNs). He did so by slightly altering the personal information he provided on the application for each new SSN. In March 2002, using one of his SSNs, Solaris began receiving Supplemental Social Security Income and Disability benefits by claiming that he had constant pain in his back and left leg, which precluded him from working. He did not disclose to authorities that he had two additional Social Security numbers.
From 2002 through 2012, Solaris used two other Social Security cards to sporadically maintain employment in New Jersey while continuing to receive supplemental income and disability benefits. Solaris defrauded the SSA of $221,364 in Disability Insurance Benefits (DIB).
The count of Social Security fraud is punishable by a maximum of five years in prison, the count of theft of government property is punishable by a maximum of 10 years in prison; each count is punishable by a fine of $250,000, or twice the gross amount of any pecuniary gain by the defendant or loss to any victims, whichever is greatest. Sentencing is scheduled for June 4, 2019.
U.S. Attorney Carpenito credited special agents of the Social Security Administration Office of the Inspector General, under the direction of Special Agent in Charge John F. Grasso in New York, with the investigation leading to the guilty plea.
The government is represented by Special Assistant U.S. Attorney Perry Farhat of the U.S. Attorney’s Office Public Protection Unit in Newark.
Defense counsel: Kevin Carlucci Esq., Assistant Federal Public Defender, Newark
El Salvadoran National Who Illegally Reentered U.S. is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALFREDO DAGOBERTO HERCULES-SANTOS, 40, a citizen of El Salvador last residing in New Britain, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to approximately six months of imprisonment, time already served, for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, in July 2005, Hercules-Santos was removed from the U.S. to El Salvador. He illegally reentered the U.S., was found in the U.S. in November 2012, and was removed to El Salvador in January 2013. He again illegally reentered the U.S., was found in the U.S. in May 2014, and was removed to El Salvador in June 2014.
Hercules-Santos illegally reentered the U.S. a third time. On April 26, 2018, he was arrested in New Britain for driving under the influence. He posted bond on that case and then failed to appear in court to answer the charges. On August 19, 2018, the Vernon Police Department arrested Hercules-Santos and charged him with driving under the influence after he crashed an SUV he was driving into an unmarked Vernon Police cruiser. Both driving under the influence cases were resolved with guilty pleas.
Hercules-Santos has been detained since August 19, 2018. On December 18, 2018, he pleaded guilty in federal court to one count of reentry of removed alien.
This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, with the assistance of the Vernon Police Department. The case was being by Assistant U.S. Attorney Sarah P. Karwan.
Dynamic Therapy Services, LLC and PhysioHealth, Inc. to Pay $2 Million to Resolve Allegations of Improperly Billing TRICARE for Services Provided by Non-Authorized ProvidersRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that PhysioHealth Inc. and its wholly owned company Dynamic Therapy Services, LLC have agreed to pay $2 million to resolve allegations that it billed TRICARE for unallowable physical therapy services provided by non-authorized providers, including physical therapy assistants at clinics in Delaware, Pennsylvania, and Maryland.
The government launched an investigation after Dynamic Therapy voluntarily disclosed to the United States that between January 12, 2011, and January 23, 2017, Dynamic Therapy had provided professional services to TRICARE beneficiaries using physical therapy assistants, and then billed the services under the supervising physical therapist’s provider number. At the time the services were rendered, TRICARE did not cover physical therapy services rendered by physical therapy assistants, since they were not considered authorized providers under TRICARE rules then in effect.
“Physical therapy providers have a responsibility to ensure that they are complying with billing regulations,” said U.S. Attorney McSwain. “Dynamic Therapy and PhysioHealth discovered non-compliance problems internally. To their credit, they took corrective action to ensure that TRICARE beneficiaries are provided with services from authorized providers, and they came forward to voluntarily disclose to the Government what had occurred. Their proactive approach in this case sets a good example for other providers who might find themselves facing similar issues.”
“Ensuring the integrity of TRICARE, the Defense Department’s health care program, is a top priority for the Defense Criminal Investigative Service (DCIS),” stated Special Agent-in-Charge Leigh-Alistair Barzey, DCIS Northeast Field Office. “DCIS will continue to work with the United States Attorney’s Office and other law enforcement partners to protect TRICARE and the uniformed service members, retirees, and their families who rely upon it.”
Assistant U.S. Attorney Judith Amorosa and Auditor Dawn Wiggins handled the case for the U.S. Attorney’s Office. The matter was investigated by the Defense Criminal Investigative Services. The voluntary disclosure was made to the U.S. Department of Health and Human Services which assisted in the resolution of this matter.
Dominican National Sentenced to 10 Years in Prison for Heroin and Fentanyl TraffickingRead the Press Release
BOSTON – A Dominican national was sentenced in federal court in Boston today to 10 years in prison for trafficking heroin and fentanyl.
Elin Robinson Mejia Romero, 52, a Dominican national formerly residing in Hyde Park, was sentenced by U.S. District Court Judge Allison D. Burroughs to 10 years in prison and will be subject to deportation proceedings upon completion of his sentence. In September 2018, Mejia Romero was convicted by a federal jury of conspiracy to possess heroin and more than 40 grams of fentanyl, two counts of possession with intent to distribute heroin, one count of possession with intent to distribute fentanyl, and one count of possession with intent to distribute more than 40 grams of fentanyl. Romero previously pleaded guilty to a separate federal charge of illegally re-entering the country after being deported.
On five occasions between January 2017 and June 2017, Romero sold a total of over 100 grams of heroin and/or fentanyl to a cooperating witness. Agents recorded each transaction and laboratory results confirmed that the drugs were heroin and fentanyl. An additional 300 grams of fentanyl and other drug distributing paraphernalia were recovered during a search at a location in Hyde Park.
In 2008, Romero was convicted in federal court in Boston of conspiracy to distribute one kilogram or more of heroin and five kilograms or more of cocaine. He was sentenced to 46 months in prison and was deported to the Dominican Republic after completing his sentence.
United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. Assistance was also provided by Customs and Border Protection and the Attleboro Police Department. Assistant U.S. Attorneys Leah B. Foley and Lauren A. Graber of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Dominican National Pleads Guilty to Conspiring to Distribute FentanylRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to his role in a conspiracy to distribute fentanyl.
Sergio Manuel Lara-Suarez, a/k/a Sergio Manuel Lara-Juarez, 42, a Dominican national residing in Lawrence, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl; five counts of distribution of 40 grams or more of fentanyl; and two counts of distribution of fentanyl. U.S. District Court Judge Indira Talwani scheduled sentencing for May 16, 2019. Lara-Suarez was charged by superseding indictment in November 2018.
Between September 2017 and March 2018, Lara-Suarez conspired with others to distribute significant quantities of fentanyl or a mixture containing both fentanyl and heroin to undercover law enforcement officers. During that period, Lara-Suarez met with undercover agents 11 times and sold them over 430 grams of fentanyl. Lara-Suarez has been in state custody since August 2018.
The charge of conspiring to distribute and to possess with intent to distribute 400 grams or more of fentanyl carries a mandatory minimum sentence of 10 years and up to life in prison, a minimum of five years of supervised release, and a fine of up to $10 million. The charge of distribution of 40 grams or more of fentanyl carries a mandatory minimum sentence of five years and no greater than 40 years in prison, at least four years of supervised release, and a fine of up to $5 million. The charge of distribution of fentanyl carries a sentence of no greater than 20 years in prison, at least three years of supervised release, and a fine of up to $1 million. Lara-Suarez will be subject to deportation proceedings. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement. Assistant U.S. Attorney Craig Estes of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case
Decatur Man Faces Multiple Charges of Sexual Exploitation of ChildrenRead the Press Release
URBANA, Ill. – A Decatur, Ill., man, Cornell D.A. Johnson, 22, appeared in federal court in Urbana today for arraignment on charges that he sexually exploited children and possessed child pornography. At today’s hearing, a trial date of April 29, 2019, was set for Johnson.
Johnson, of the 1100 block of East Division St., was previously arrested on Feb. 4, 2019, and charged by criminal complaint. At his initial court appearance, on Feb. 5, U.S. Magistrate Judge Eric I. Long ordered that Johnson remain detained in the custody of the U.S. Marshals Service.
The five-count indictment, returned by the grand jury on Feb. 20, alleges that on four occasions between December 2018 and January 2019, Johnson exploited seven minors to get them to engage in sexually explicit conduct to produce graphic images and to send the images to him. Johnson is also charged with possessing child pornography when he was arrested.
The affidavit filed on Feb. 5, 2019, in support of the criminal complaint, alleges that Johnson impersonated a teenaged female and communicated with minors in several states using Facebook and Facebook Messenger to get the minors, aged four through 16, to send lewd and graphic images to him. According to the affidavit, Facebook detected that pornographic images of children had been uploaded and generated cybertip reports which were sent to the National Center for Missing and Exploited Children. Using the cybertip information, law enforcement identified children in Alabama, Delaware, and Ohio and identified an email address allegedly used by Johnson, which was used to contact the children.
If convicted, the statutory maximum penalty for each count of sexual exploitation (four counts) is 30 years in prison; for possession of child pornography, the maximum penalty is 10 years in prison. Each of the five counts includes a potential fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson. The charges are the result of an investigation by the Decatur Police Department; the Illinois Attorney General’s Office Internet Crimes Against Children Task Force; and, U.S. Immigration and Customs Enforcement Homeland Security Investigations.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Cowlitz County Man Sentenced to 10 Years in Prison for Illegal Weapons PossessionRead the Press Release
A Longview, Washington, man who was convicted in July 2016 of a triple homicide in Vancouver was sentenced today in U.S. District Court in Tacoma to an additional ten years in federal prison for two federal felonies involving illegal weapons possession, announced U.S. Attorney Brian T. Moran. BRENT LUYSTER, 37, was convicted following a three-day trial in November 2018 of being a felon in possession of firearms and being a felon in possession of ammunition. At the sentencing hearing U.S. District Judge Benjamin H. Settle imposed a ten-year sentence to be served consecutive to LUYSTER’s state sentence. Judge Settle said, “There is a great need to be concerned at protecting the public . . . this case warrants the maximum sentence.” For the state murder convictions, LUYSTER had been ordered to serve a state sentence of life in prison with no chance of parole. The federal sentence of ten years will follow this state sentence.
“The hatred and violence embodied by this defendant is truly abhorrent,” said U.S. Attorney Brian T. Moran. “This sentence is a safety net – to hold him accountable for his federal crimes – but also to ensure that regardless of his state convictions and sentence, Brent Luyster will remain locked up to protect our communities.”
According to the evidence at trial in the case, Cowlitz County Sheriff’s deputies were called to a Longview home in May 2016 after a woman fled to a neighbor’s home saying she had been assaulted and her child was missing. The woman told responding officers that LUYSTER had hit her in the head with a gun. Another neighbor reported hearing gunshots. Ultimately, officers located LUYSTER on a hillside behind the house and convinced him to surrender. He had ammunition in his pockets, and at the location where he had been concealed on the hillside, officers recovered three firearms: a Bushmaster rifle, a Glock .40 caliber handgun, and a Keltec .12 gauge shotgun. Additional ammunition was discovered on the hillside. Inside the house where LUYSTER lived, law enforcement found five additional rifles and a handgun. The investigation revealed that LUYSTER’s live-in girlfriend had purchased the weapons for LUYSTER. LUYSTER was prohibited from possessing firearms due to multiple felony convictions, including convictions for assault, burglary, theft, malicious harassment, and riot with a deadly weapon.
Following the May 16 assault, while state charges were pending in Cowlitz County, LUYSTER shot and killed three people and critically injured a fourth on July 15, 2016, at a home near Woodland, Washington. He was convicted of three counts of aggravated first degree murder in November 2017.
While incarcerated at the Federal Detention Center at Sea-Tac, LUYSTER informed another inmate that he planned to assault a guard or make a violent disturbance at his trial. A search of his cell revealed two weapons LUYSTER had crafted out of parts of his bed–one a homemade knife and the other a weapon that looked like a screwdriver.
LUYSTER has a long and violent criminal history, including racially motivated attacks. In 2001, he beat an African-American man who stepped on his property in search of his dogs. Four years later, he was convicted of Malicious Harassment for shooting an African-American man in the leg. In 2014, he threatened an African-American man in a bar. LUYSTER also has a history of domestic abuse.
The case was investigated by the Cowlitz County Sheriff’s Office, Longview Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the Federal Bureau of Investigation (FBI).
The case is being prosecuted by Assistant United States Attorneys Bruce Miyake and Ye‑Ting Woo.
Connecticut Transportation Company Owner Admits to Filing False Tax ReturnsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, announced that WILLIAM SCALZI, 61, of Durham, waived his right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to a tax offense related to his filing of false tax returns.
According to court documents and statements made in court, Scalzi, the owner of Transportation General, Inc., of West Haven, understated his taxable income by running personal expenses through his company. Scalzi used his company’s credit cards to pay for numerous personal expenses, which were deducted as business expenses on Transportation General’s corporate tax returns. He also did not include these personal expenses as income on his personal tax returns for the 2007 through 2010 tax years.
Scalzi pleaded guilty to one count of subscribing a false tax return, an offense that carries a maximum term of imprisonment of three years. Scalzi also has agreed to make $297,319.31 in restitution to the IRS, which will satisfy his criminal and civil tax liabilities for the 2007 through 2010 tax years. A sentencing date is not scheduled.
This matter is being investigated by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Columbia County Man Charged with Distribution of Heroin and Fentanyl Resulting in DeathRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that James Mark Minichella, age 23, of Catawissa, Pennsylvania, was indicted on February 19, 2019, by a federal grand jury for drug distribution resulting in death. The case was unsealed following the arrest of the defendant.
According to United States Attorney David J. Freed, the indictment alleges that on or about August 11, 2017, Minichella knowingly and intentionally distributed and possessed with intent to distribute heroin and fentanyl causing the death of another person.
The charges stem from a joint investigation involving the Federal Bureau of Investigation (FBI) in Scranton, the Wyoming County District Attorney’s Office, and the Wyoming County Detectives. United States Attorney Michelle Olshefski is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute for drug distribution resulting in death is life imprisonment. The maximum penalty for possession with intent to distribute a controlled substance is 20 years imprisonment and a $1,000,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Colorado Man Sentenced for Methamphetamine DistributionRead the Press Release
United States Attorney Ron Parsons announced that a Westminster, Colorado, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on February 22, 2019, by U.S. District Judge Roberto A. Lange.
Matthew Steele, age 34, was sentenced to 57 months in federal prison, followed by 3 years of supervised release, a fine of $1,000, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Steele was indicted by a federal grand jury on June 12, 2018. He pled guilty on December 10, 2018.
The conviction stemmed from an incident that occurred on February 10, 2017, following a traffic stop, Steele knowingly and intentionally possessed with intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in the District of South Dakota, in and around the Rosebud Sioux Indian Reservation. Steele admitted that between 40 and 50 grams of methamphetamine was in his possession.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Steele was immediately turned over to the custody of the U.S. Marshals Service.
Clay County Man Pleads Guilty to Federal Firearms ChargeRead the Press Release
CHARLESTON, W.VA. – A Clay County man pled guilty to a federal firearms charge, said United States Attorney Mike Stuart. Timothy Fields, 40, of Procious, pled guilty to being a felon in possession of firearms. The investigation was conducted by the Jackson County Probation Office, Clay County Sheriff’s Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“Don’t make the mistake of thinking possession of a firearm is a minor offense if you’re a felon,” said United States Attorney Mike Stuart. “Fields faces up to 10 years in prison. It is entirely simple. If you’re a felon, you’ve lost the right to possess a firearm.”
On October 23, 2017, Fields was found by his probation officer to be in possession of at least thirteen firearms in his residence in Clay County. At the time, Fields was on probation following a felony conviction for grand larceny out of Jackson County, West Virginia. Fields faces up to 10 years in prison when he is sentenced on May 29, 2019.
United States District Judge John T. Copenhaver, Jr., presided over the plea hearing. Assistant United States Attorney Jennifer Rada Herrald is handling the prosecution.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Claremore Man Sentenced to 30 Years in Prison for Sexually Exploiting a ChildRead the Press Release
A 25-year-old Claremore man has been ordered to federal prison following his conviction of one count of sexual exploitation of a child, announced U.S. Attorney Trent Shores. Zachary Newberry pleaded guilty Nov. 20, 2018.
Today, U.S. District Judge John E. Dowdell, sentenced Newberry to 30 years in prison. Newberry will serve 10 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
“Project Safe Childhood prosecutions are in full effect here in northeastern Oklahoma thanks to the partnership between TPD’s Cyber Crimes Unit and federal prosecutors. If you prey on children, we will find you, prosecute you and hold you accountable for your actions against the most vulnerable members of our community,” said U.S. Attorney Trent Shores. “Tulsa’s cyber detectives do excellent work to hunt down and identify child predators lurking about the internet. Our federal prosecutors then bring them to justice in a court of law.”
On July 30, the Tulsa Police Department received Newberry’s phone in an anonymous package, which was accompanied by a note stating the phone contained child pornography. Detectives from the police department’s Cyber Crimes Unit forensically examined the phone and discovered that it had been used to film a single video of child pornography. Other information recovered from the phone led detectives to Newberry, who eventually confessed to filming himself sexually abusing the adolescent victim.
Newberry has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Tulsa Police Department investigated the crime. Assistant U.S. Attorney Christopher J. Nassar prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Choctaw Man Sentenced to 132 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Anton Grguric Jr., age 46, of Choctaw, Oklahoma, was sentenced to 132 months imprisonment and 5 years of supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2. The charges arose from an investigation by the Sallisaw Police Department, the Sequoyah County Sheriff’s Office, and the Drug Enforcement Administration.
The Indictment alleged that on or about February 6, 2017, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “Disrupting supply chains that distribute Methamphetamine and other dangerous drugs for drug trafficking organizations is a priority of the Department of Justice. Most communities have felt the devastating impact that Meth has on individuals and families. We must continue to be diligent in our efforts to bring to justice those that have no regard for the harm they are delivering to the cities and towns across the country.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. First Assistant United States Attorney Christopher Wilson represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
California Felon Sentenced for Illegal Possession of Firearm at Juneau AirportRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Brent Ernst Hansen, 42, of Indio, California, was sentenced in Juneau by Chief U.S. District Judge Timothy M. Burgess to serve 34 months in federal prison, followed by three years of supervised release, for illegally possessing a firearm as a convicted felon.
According to court documents, on Oct. 16, 2017, Hansen was trying to clear airport security at Juneau International Airport, with a backpack that contained a loaded Glock 19, 9mm pistol. TSA recognized a suspicious object as Hansen placed his bag through the X-Ray machine. When confronted by law enforcement, Hansen claimed he forgot about the firearm, and when asked about his legal status to possess a firearm, Hansen indicated that he did not know. A check of the firearm’s serial number revealed that the firearm was reported stolen.
Hansen was subsequently taken into custody, and a records check revealed that he has multiple felony convictions with the State of California for crimes including burglary, possession of a controlled substance, attempted grand theft, and felon in possession of a firearm.
The Juneau Police Department (JPD) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jack Schmidt.
Bulldog Gang Member Sentenced to over 8 Years in Prison in Connection with Fresno ShootingRead the Press Release
FRESNO, Calif. — Alberto Perez, 31, of Fresno, was sentenced today by U.S. District Judge Lawrence J. O’Neill to eight years and four months in prison for being a felon in possession of a firearm and ammunition, U.S. Attorney McGregor W. Scott announced.
According to court documents, on June 26, 2017, while riding in a car in the area of Highway 99 and Ventura, Perez fired shots at a car, intending to hit an occupant inside the vehicle. Perez later discussed the shooting in a call with Carlos Montano, who is charged and has pleaded guilty to drug trafficking, firearms, and sex trafficking offenses in a related criminal case. Agents monitoring the intercepted communications were able to further connect Perez to the shooting using various investigative techniques. In September, 2017, investigators obtained a search warrant and found ammunition at Perez’s residence.
The charges are the product of an investigation by the DEA, FBI, HSI, ATF, the Fresno Police Department, the Fresno County Sheriff’s Office, and the Multi-Agency Gang Enforcement Consortium (MAGEC), with assistance from the California Department of Corrections and Rehabilitation. Assistant U.S. Attorneys Kimberly A. Sanchez and Jeffrey Spivak are prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
This case was brought as part of Project Safe Neighborhoods (PSN), 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.
Buffalo Man Pleads Guilty to Selling FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Antonio Broadus, 33, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession with intent to distribute, and distribution of, butyryl fentanyl. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that on February 11, 2018, an individual working for the Drug Enforcement Administration arranged to purchase five grams of fentanyl from the defendant. The following day, the individual met up with Broadus in the parking lot of a retail store on Jefferson Avenue in Buffalo. The two exchanged $420 for the five grams of fentanyl. In addition, the defendant also sold another five grams of fentanyl to a separate individual working with the DEA on January 29, 2018.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Office.
Sentencing is scheduled for June 12, 2019, at 12:30 p.m. before Judge Arcara.
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Buffalo Man Indicted on Cocaine and Crack Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Derrius Cunningham, a/k/a Baby, 41, of Buffalo, NY, with conspiracy to distribute and distribution of cocaine and crack cocaine, and maintaining a drug-involved premises. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorneys Charles J. Volkert, Jr. and Brendan T. Cullinane, who are handling the case, stated that according to the indictment, between 2012 and February 20, 2019, the defendant conspired with others to distribute cocaine and crack cocaine in the Box Avenue and Moselle Street area of Buffalo. The indictment also accuses Cunningham of using the residence at 304 Moselle Street, and two businesses, LaPearlaboo’s Bar and Jeoni’s Wingstop, in furtherance of his drug trafficking activities.
The defendant was arraigned before U.S. Magistrate Judge Michael J. Roemer and was released on conditions.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Lackawanna Police Department, under the direction of Chief James Michel; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; the New York State Police, under the direction of Major Edward Kennedy; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Boise Jury Finds David William Fischer Guilty of Drug TraffickingRead the Press Release
BOISE – U.S. Attorney Bart M. Davis announced today that a federal jury sitting in Boise convicted David William Fischer, 33, of possession of over five grams of methamphetamine with intent to distribute, unlawful possession of firearms, and possession of firearms in furtherance of drug trafficking. The trial began on February 19, 2019, and concluded on Friday evening when the jury returned their verdicts. The case was tried before U.S. District Judge B. Lynn Winmill.
According to court records, on September 26, 2017, the U.S. Marshals Service Greater Idaho Fugitive Task Force (GIFT) and the Ada County Sheriff’s Office Anti-Crime Team in Our Neighborhoods (ACTION) team were executing an arrest warrant for Fischer when officers discovered him in the Red Lion Hotel, in downtown Boise. After a forty-five minute standoff, Fischer was arrested without incident and found in possession of two handguns and approximately forty-two grams of methamphetamine.
Sentencing is set for May 21, 2019, before Judge Winmill at the federal courthouse in Boise. Possession of methamphetamine with intent to distribute is punishable by at least five years, up to 40 years, in prison, a $5,000,000 fine, and four years of supervised release. Unlawful possession of a firearm is punishable by up to ten years imprisonment, a $250,000 fine and up to three years of supervised release. Possession of a firearm in furtherance of a drug trafficking crime is punishable by a minimum of five years in prison, a $250,000 fine and five years of supervised release.
This case was investigated by the U.S. Marshals Service Greater Idaho Fugitive Task Force, the Garden City Police Department, the Ada County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms & Explosives.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Blair County Man Stole $50K in U.S. Railroad Retirement BenefitsRead the Press Release
JOHNSTOWN, Pa. - A resident of Roaring Springs, Pa., pleaded guilty in federal court to a charge of theft of government funds, United States Attorney Scott W. Brady announced today.
Glenn P. Rhykerd, 68, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from Jan. 1, 2015, to May 31, 2016, Rhykerd did receive and convert falsely to his own use a total of $50,985.21 in United States Railroad Retirement Board disability payments made to him to which he was not entitled.
Judge Gibson scheduled sentencing for June 5, 2019, at 1 p.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The United States Railroad Retirement Board, Office of Inspector General, conducted the investigation that led to the prosecution of Rhykerd.
Berkeley County man sentenced for illegal gun possessionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Christopher Wade Rebish, of Martinsburg, West Virginia, was sentenced today to 96 months incarceration for having a machine gun, United States Attorney Bill Powell announced.
Rebish, age 30, pled guilty to one count of “Illegal Possession of Machine Gun” in October 2018. Rebish admitted to having a 5.7X28 mm caliber machine gun in Berkeley County in March 2017.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Berkeley County man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Sean Michael Placko, of Hedgesville, West Virginia, was sentenced today to 60 months for a firearms conspiracy, United States Attorney Bill Powell announced.
Placko, age 43, pled guilty to one count of “Conspiracy” in November 2018. Placko admitted to participating in a conspiracy to purchase and transfer firearms out of state and to a prohibited person. The crime took place from October 2017 to February 2018 in Berkeley County and elsewhere.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S District Judge Gina M. Groh presided.
Barboursville Woman Pleads Guilty to Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – A Barboursville woman pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Elizabeth Powers, 29, entered a guilty plea to an indictment charging her with possession with the intent to distribute 500 grams or more of cocaine. The Kenova Police Department conducted the investigation.
“The highway interdiction efforts of our law enforcement partners keep a significant amount of illicit drugs from ever making it into our communities,” said United States Attorney Mike Stuart. “I applaud the officers who do this dangerous but vital work.”
Powers admitted that on June 14, 2018, she was pulled over on I-64 in Wayne County. Officers found a black bag in her vehicle that contained one kilogram of cocaine. She told officers she intended to sell the cocaine for money.
Powers faces between five and forty years in prison when she is sentenced on June 3, 2019.
The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Bank Teller in Leavenworth Sentenced for EmbezzlementRead the Press Release
KANSAS CITY, KAN. – A former bank teller who paid back the money she embezzled from a Leavenworth savings and loan was sentenced Monday to two years on federal supervised release, U.S. Attorney Stephen McAllister said.
Theresa Williams, 49, Leavenworth, Kan., pleaded guilty to one count of theft by a bank employee. In her plea, she admitted she embezzled $13,000 from Mutual Savings Association in Leavenworth. To cover up the crime, she made false entries in bank reports.
McAllister commended the FBI and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Atwater Man Pleads Guilty to Offenses Related to the Sexual Exploitation of Children Through Social MediaRead the Press Release
FRESNO, Calif. — Nikko Adolfo Perez, 26, of Atwater, pleaded guilty today to the sexual exploitation of children, coercion and enticement of a minor, and receipt and distribution of child pornography, U.S. Attorney McGregor W. Scott announced.
According to a criminal complaint, Perez, using the Instagram screen name captainamerica272018, victimized two boys, ages 8 and 10, in Utah by coercing them to create and send him images of them engaged in sexually explicit conduct. Perez offered to pay the boys with Google Play credits if they engaged in requested sexual acts or poses, and when one of the victims said he would call 911, Perez threatened to disseminate the sexually explicit images of the victims. He also threatened to harm family members of the victims.
Perez admitted in a plea agreement that he also used Skype, Kik, Discord, Snapchat, and LiveMe to communicate with between 50 and 100 minors for the purpose of soliciting sexually explicit images of those minors. He admitted that he persuaded the victims to pose nude or engage in sexually explicit activities, sometimes with other minors. He admitted that he often paid victims to engage in this conduct, and he sent some of the material that he had requested to other people.
Perez is scheduled to be sentenced by Chief U.S. District Judge Lawrence J. O’Neill on May 20, 2019. Perez faces the following possible penalties: a mandatory minimum term of 15 years and a maximum of 30 years in prison for the sexual exploitation count; a mandatory minimum of 10 years to a maximum of life in prison for the coercion and enticement count; and a between 5 and 20 years in prison for the one count of receipt of child pornography. For all counts there is a potential $250,000 fine and a lifetime term of supervised release. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Salt Lake City Police Department and the Federal Bureau of Investigation offices in Salt Lake City, Utah and Fresno. Assistant U.S. Attorney David Gappa is prosecuting 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Alleged MS-13 Gang Member Arrested in PensacolaRead the Press Release
PENSACOLA, FLORIDA – David Ernesto Nolasco Soriano, 31, of El Salvador, made a first appearance and had a detention hearing on Friday, February 22, 2019, in Pensacola in the U.S. District Court for the Northern District of Florida. United States Attorney Lawrence Keefe of the Northern District of Florida made the announcement.
Nolasco Soriano was a fugitive who was located in Pensacola and arrested on February 20 at 3:10 p.m. near the Cordova Mall by the FBI and the Pensacola Police Department. Nolasco Soriano was working in Pensacola and Destin and has a Pensacola mailing address. United States Magistrate Judge Charles J. Kahn Jr. detained Nolasco Soriano and ordered the U.S. Marshals to transport him back to Maryland to await trial. Assistant United States Attorney and Border Security Coordinator James M. Ustynoski handled the detention hearing in the Northern District of Florida.
U.S. Attorney Keefe said: “This case is an example of law enforcement agencies, prosecutors, and Organized Crime Drug Enforcement Task Forces throughout the nation working together to dismantle dangerous gangs. My office is committed to pursuing a safer North Florida, Maryland, and all communities in between.”
Assistant United States Attorney Kenneth S. Clark in the District of Maryland is prosecuting the case. The District of Maryland charged Nolasco Soriano with:
- Conspiracy to participate in a racketeering enterprise;
- Conspiracy to murder, maim, assault with a dangerous weapon, and assault resulting in serious bodily injury in aid of racketeering; and
- Attempted murder, maiming, and assault with a dangerous weapon resulting in serious bodily injury in aid of racketeering.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
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Yuba City Man Sentenced to 20 Years in Prison for Child Pornography OffenseRead the Press Release
SACRAMENTO, Calif. — Chad Carl Jaycox, 28, of Yuba City, was sentenced today to 20 years in prison to be followed by 25 years of supervised release for receiving images of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, Jaycox received the images between April 2011 and September 2013. Jaycox was convicted in 2010 of unlawful sex with a minor, and he was on probation for that offense when federal agents executed a search warrant at his residence in September 2013. Upon the discovery of child pornography, Jaycox was arrested by state law enforcement agents for a violation of his probation.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew G. Morris 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Winnebago Man Sentenced as Habitual OffenderRead the Press Release
James Levering, 46, of Winnebago was sentenced today in federal court in Omaha for domestic assault by a habitual offender. The Honorable Robert F. Rossiter, Jr. sentenced Levering to 25 months’ imprisonment. After his release from prison, Levering will begin a three-year term of supervised release.
On April 22, 2018, on the Winnebago Indian Reservation, Levering struck his wife in the chest with a board. At the time of the assault Levering was the subject of no-contact orders protecting his wife from him. Prior to this assault, Levering had been convicted in South Dakota and Iowa of assaulting a domestic partner.
This case was investigated by the Federal Bureau of Investigation and the Winnebago Police Department.
Washington man sentenced to 10 years in child porn caseRead the Press Release
MISSOULA—A Washington man who admitted attempting to view child pornography on a computer while riding a bus was sentenced today to a mandatory minimum 10 years in prison and a lifetime of supervised release, U.S. Attorney Kurt Alme said.
Eric Franklin Rosser, 67, of Ellensburg, Wash., pleaded guilty in October to accessing with intent to view child pornography.
U.S. District Judge Donald W. Molloy presided. Molloy also fined Rosser $10,000, levied a total of $5,000 in special assessments and ordered Rosser’s computer to be forfeited.
An investigation began on July 22, 2017, when a passenger on a commercial bus heading east on Interstate 90 near Butte noticed that Rosser, who was seated in front of him, was viewing child porn on his laptop computer. When the bus arrived in Billings, the passenger approached Rosser about the video, and Rosser responded, “Leave me alone. I know I have a problem.”
Law enforcement was called to the Billings bus station, and officers questioned Rosser. Rosser admitted he was watching child porn that was being sold online. He also said he had $10,000 cash strapped to each leg and another $50,000 cash in his bags. Officers found the money along with $2,402 that was in Rosser’s wallet. Rosser admitted to emptying his bank account before leaving Washington.
Assistant U.S. Attorney Zeno Baucus prosecuted the case, which was investigated by the Billings Police Department.
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U.S. Seeks to Recover Approximately $38 Million Allegedly Obtained from Corruption Involving Malaysian Sovereign Wealth FundRead the Press Release
The Justice Department announced today the filing of civil forfeiture complaints seeking the forfeiture and recovery of approximately $38 million in assets allegedly associated with an international conspiracy to launder funds misappropriated from 1Malaysia Development Berhad (1MDB), a Malaysian sovereign wealth fund. Combined with civil forfeiture complaints filed in July 2016 seeking more than $1 billion in assets, and civil forfeiture complaints filed in June 2017 seeking approximately $540 million in assets, this case represents the largest action brought under the Department’s Kleptocracy Asset Recovery Initiative. Assets now subject to forfeiture in this case total approximately $1.7 billion.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicola T. Hanna of the Central District of California, Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division and Chief Don Fort of the IRS Criminal Investigation (IRS-CI) made the announcement.
According to the complaints, from 2009 through 2015, more than $4.5 billion in funds belonging to 1MDB were allegedly misappropriated by high-level officials of 1MDB and their associates. 1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment, and its funds were intended to be used for improving the well-being of the Malaysian people.
“The complaints filed today demonstrate the Department of Justice’s steadfast commitment to recovering assets traceable to the alleged multi-billion dollar looting of Malaysia’s sovereign wealth fund,” said Assistant Attorney General Benczkowski. “The Criminal Division and our law enforcement partners are committed to protecting the U.S. financial system and ensuring that the proceeds of overseas corruption and other criminal conduct find no safe haven here.”
“These new lawsuits target assets collected by corrupt officials and their associates through a massive scheme that stole billions of dollars from the people of Malaysia and laundered the proceeds across the world,” said U.S. Attorney Nick Hanna. “Through a series of cases filed over the past three years, we have pursued a wide variety of assets purchased with stolen 1MDB funds, and so far we have successfully forfeited hundreds of millions of dollars. Collectively, these cases send a strong message that the United States cannot be used as a safe haven or a conduit for money pilfered by corrupt officials.”
“Today’s announcement is a testament to the FBI’s relentless effort to investigate kleptocracy and hold corrupt foreign officials accountable,” said FBI Assistant Director Johnson. “At the onset of this investigation, we promised to work with our foreign and domestic partners to identify and return stolen assets to the Malaysian people. This filing demonstrates our unwavering commitment to keep that promise. We want to thank our partners, both domestic and foreign, for their hard work in helping to bring justice for the Malaysian people. The recovery of these assets is another step in that direction.”
“The investigation into the misappropriation of the 1MDB funds represents a model for international cooperation in significant cross-border money laundering matters, and sends a message that criminals cannot evade law enforcement authorities simply by laundering money through multiple jurisdictions and through a web of shell corporations,” said IRS-CI Chief Fort. “We are proud of the investigative work on this case and the work of our fellow law enforcement agencies in this and other complex financial investigations.”
As alleged in the complaints, the members of the conspiracy – which included officials at 1MDB, their relatives and other associates – diverted more than $4.5 billion in 1MDB funds. Using fraudulent documents and representations, the co-conspirators allegedly laundered the funds through a series of complex transactions and shell companies with bank accounts located in the U.S. and abroad. These transactions allegedly served to conceal the origin, source and ownership of the funds, and ultimately passed through U.S. financial institutions to then be used to acquire and invest in assets located in the U.S. and overseas.
As alleged in the earlier complaints, in 2009, 1MDB officials and their associates embezzled approximately $1 billion that was supposed to be invested to exploit energy concessions purportedly owned by a foreign partner. Instead, the funds were allegedly transferred through shell companies and were used to acquire a number of assets, as set forth in the complaints. The complaints also allege that the co-conspirators misappropriated close to $1.4 billion in funds raised through bond offerings in 2012, and more than $1.2 billion following another bond offering in 2013. The complaints also allege that in 2014, the co-conspirators misappropriated approximately $850 million in 1MDB funds under the guise of repurchasing certain options that had been given in connection with a guarantee of the 2012 bonds.
The complaints filed today in the Central District of California identify additional assets traceable to the 2012 and 2013 bond offerings. These assets include luxury real estate in London, proceeds from the sale of luxury real estate in New York City, and converted equity in a facilities management company headquartered in Kentucky.
The FBI’s International Corruption Squads in New York City and Los Angeles and the IRS-CI are investigating the case. Deputy Chief Woo S. Lee and Trial Attorneys Kyle R. Freeny, Jonathan Baum, Barbara Levy and Joshua L. Sohn of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys John Kucera and Michael R. Sew Hoy of the Central District of California are prosecuting the case. The Criminal Division’s Office of International Affairs is providing substantial assistance.
The Department also appreciates the significant assistance provided by the Attorney General’s Chambers of Malaysia, the Royal Malaysian Police, the Malaysian Anti-Corruption Commission, the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General and the Federal Office of Justice of Switzerland, the judicial investigating authority of the Grand Duchy of Luxembourg, and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorney’s Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the U.S. should contact federal law enforcement or send an email to [email protected] (link sends e-mail) or https://tips.fbi.gov/.
A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime. These allegations are not proven until a court awards judgment in favor of the United States.
U.S. Seeks to Recover Approximately $38 Million Allegedly Obtained from Corruption Involving Malaysian Sovereign Wealth FundRead the Press Release
LOS ANGELES – The Justice Department announced today the filing of civil forfeiture complaints seeking the forfeiture and recovery of approximately $38 million in assets allegedly associated with an international conspiracy to launder funds misappropriated from 1Malaysia Development Berhad (1MDB), a Malaysian sovereign wealth fund. Combined with civil forfeiture complaints filed in July 2016 seeking more than $1 billion in assets, and civil forfeiture complaints filed in June 2017 seeking approximately $540 million in assets, this case represents the largest action brought under the Department’s Kleptocracy Asset Recovery Initiative. Assets now subject to forfeiture in this case total approximately $1.7 billion.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicola T. Hanna of the Central District of California, Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division and Chief Don Fort of the IRS Criminal Investigation (IRS-CI) made the announcement.
According to the complaints, from 2009 through 2015, more than $4.5 billion in funds belonging to 1MDB were allegedly misappropriated by high-level officials of 1MDB and their associates. 1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment, and its funds were intended to be used for improving the well-being of the Malaysian people.
“These new lawsuits target assets collected by corrupt officials and their associates through a massive scheme that stole billions of dollars from the people of Malaysia and laundered the proceeds across the world,” said U.S. Attorney Nick Hanna. “Through a series of cases filed over the past three years, we have pursued a wide variety of assets purchased with stolen 1MDB funds, and so far we have successfully forfeited hundreds of millions of dollars. Collectively, these cases send a strong message that the United States cannot be used as a safe haven or a conduit for money pilfered by corrupt officials.”
“The complaints filed today demonstrate the Department of Justice’s steadfast commitment to recovering assets traceable to the alleged multi-billion dollar looting of Malaysia’s sovereign wealth fund,” said Assistant Attorney General Benczkowski.“The Criminal Division and our law enforcement partners are committed to protecting the U.S. financial system and ensuring that the proceeds of overseas corruption and other criminal conduct find no safe haven here.”
“Today’s announcement is a testament to the FBI’s relentless effort to investigate kleptocracy and hold corrupt foreign officials accountable,” said FBI Assistant Director Johnson. “At the onset of this investigation, we promised to work with our foreign and domestic partners to identify and return stolen assets to the Malaysian people.This filing demonstrates our unwavering commitment to keep that promise. We want to thank our partners, both domestic and foreign, for their hard work in helping to bring justice for the Malaysian people. The recovery of these assets is another step in that direction.”
“The investigation into the misappropriation of the 1MDB funds represents a model for international cooperation in significant cross-border money laundering matters, and sends a message that criminals cannot evade law enforcement authorities simply by laundering money through multiple jurisdictions and through a web of shell corporations,” said IRS-CI Chief Fort. “We are proud of the investigative work on this case and the work of our fellow law enforcement agencies in this and other complex financial investigations.”
As alleged in the complaints, the members of the conspiracy – which included officials at 1MDB, their relatives and other associates – diverted more than $4.5 billion in 1MDB funds. Using fraudulent documents and representations, the co-conspirators allegedly laundered the funds through a series of complex transactions and shell companies with bank accounts located in the U.S. and abroad. These transactions allegedly served to conceal the origin, source and ownership of the funds, and ultimately passed through U.S. financial institutions to then be used to acquire and invest in assets located in the U.S. and overseas.
As alleged in the earlier complaints, in 2009, 1MDB officials and their associates embezzled approximately $1 billion that was supposed to be invested to exploit energy concessions purportedly owned by a foreign partner. Instead, the funds were allegedly transferred through shell companies and were used to acquire a number of assets, as set forth in the complaints. The complaints also allege that the co-conspirators misappropriated close to $1.4 billion in funds raised through bond offerings in 2012, and more than $1.2 billion following another bond offering in 2013. The complaints also allege that in 2014, the co-conspirators misappropriated approximately $850 million in 1MDB funds under the guise of repurchasing certain options that had been given in connection with a guarantee of the 2012 bonds.
The complaints filed today in the Central District of California identify additional assets traceable to the 2012 and 2013 bond offerings. These assets include luxury real estate in London, proceeds from the sale of luxury real estate in New York City, and converted equity in a facilities management company headquartered in Kentucky.
The FBI’s International Corruption Squads in New York City and Los Angeles and the IRS-CI are investigating the case. Deputy Chief Woo S. Lee and Trial Attorneys Kyle R. Freeny, Jonathan Baum, Barbara Levy and Joshua L. Sohn of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys John Kucera and Michael R. Sew Hoy of the Central District of California are prosecuting the case. The Criminal Division’s Office of International Affairs is providing substantial assistance.
The Department also appreciates the significant assistance provided by the Attorney General’s Chambers of Malaysia, the Royal Malaysian Police, the Malaysian Anti-Corruption Commission, the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General and the Federal Office of Justice of Switzerland, the judicial investigating authority of the Grand Duchy of Luxembourg, and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorney’s Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the U.S. should contact federal law enforcement or send an email to [email protected] (link sends e-mail) or https://tips.fbi.gov/.
A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime. These allegations are not proven until a court awards judgment in favor of the United States.
U.S. Attorney’s Office collects more than $4.8 million in civil, criminal actions for U.S. taxpayers in Fiscal Year 2018Read the Press Release
SHREVEPORT/LAFAYETTE/MONROE/ALEXANDRIA/LAKE CHARLES, La. – United States Attorney David C. Joseph announced today that the Western District of Louisiana collected $4,849,432 in criminal and civil actions in Fiscal Year 2018. Of this amount, $4,169,901 was collected in criminal actions and 679,530 was collected in civil actions.
Additionally, the Western District of Louisiana worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $83,116,403 in cases pursued jointly by these offices. Of this amount, $3,270 was collected in criminal actions and $83,113,133 was collected in civil actions. The district also handled $87,605 in asset forfeiture actions during FY 2018.
“I want to thank our staff in our civil and criminal divisions for their hard work on these cases and collecting monies owed to the United States and crime victims,” Joseph stated. “We will continue to work on a daily basis to locate and collect any and all money owed to taxpayers and to those whose lives have been impacted by crime.
The civil recoveries in the Western District of Louisiana include $82,319,000 in civil penalties for CITGO Petroleum Corporation’s gross negligence in discharging 2.2 million gallons of oil into U.S. waterways in violation of the Clean Water Act. Additionally, the District received $362,961 in restitution to be paid to the Internal Revenue Service from defendant Gary Scott in June of 2018. Scott was convicted of tax evasion and sentenced in 2013.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents is nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice,” said Director James A. Crowell, IV, Executive Office for U.S. Attorneys. “The money that we are able to recover for victims and this country as a whole is a direct result of their hard work.”
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration, the Department of Education and the U.S. Department of Agriculture.
U.S. Attorney's Office to Sponsor 16th Annual Project Sentry Logo/Meme ContestRead the Press Release
COLUMBIA, South Carolina ---- The United States Attorney's Office is sponsoring its 16th Annual Project Sentry Logo/Meme Contest. The statewide contest welcomes students to illustrate how we can help prevent gun violence in our schools by designing a logo or meme for use on upcoming Project Sentry publications.
The contest is open to all South Carolina grade-school students and entries will be categorized into four grade divisions: K-2, 3-5, 6-8, and 9-12 grades. A winner will be selected from each of the four divisions, and each division winner will receive $50. An overall winning logo or meme will be chosen from the four division winners and will receive an additional $50 for a total of $100.
The winning entries will be selected by “The Insiders,” a select group of students from the South Carolina Department of Juvenile Justice, who travel throughout the state encouraging children and promoting community awareness of the consequences of juvenile crime. The South Carolina Law Enforcement Officers’ Association Foundation will be providing the awards to the winners.
Entries should be consistent with the theme "Preventing Gun Violence in Our Schools." The deadline for submissions is March 29, 2019. If your student is interested in participating, contact your local school as contest information has been sent to all South Carolina schools. Applications and contest rules may also be found on our website https://www.justice.gov/usao-sc/programs/ceasefire/project-sentry/contest-winners/contest-rules.
Project Sentry, which is part of the district's Project Safe Neighborhoods/Project CeaseFire initiative, is a vital step in strengthening our ability to prevent gun crimes among our young people and to ensure a safe learning atmosphere for our children. For more information on the Project Sentry program and to view winning logos from previous years, please visit http://www.justice.gov/usao/sc/programs/logowinners.html.
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Two-Time Felon Sentenced for Illegally Reentering the U.S.Read the Press Release
ALEXANDRIA, Va. – A Salvadoran national was sentenced today to 18 months in prison for illegally reentering the United States.
“Guevara-Paz was twice convicted of felony offenses, and reentered within months after his deportation as an aggravated felon,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This is a serious issue of public safety and national security, and we remain committed to prioritizing criminal immigration enforcement.”
According to court documents, Jaime Amilcar Guevara-Paz, 42, illegally entered the United States and was deported in April 2008 as an aggravated felon after being convicted for kidnapping in the third degree in Texas, as well as another felony charge in California. Guevara-Paz was removed from the United States twice before his reentry spurring the instant prosecution.
Following his second removal in 2009, Guevara-Paz returned yet again under a fictitious name and was found to be in the country illegally in August 2018 following his arrest in Fairfax County on unrelated state charges.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Jeffrey M. Jacoff, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. The case was prosecuted by Special Assistant U.S. Attorneys Heather Call and Evan Clark, as well as Assistant U.S. Attorney Kimberly R. Pedersen.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-356.
Two Louisiana Tax Preparers Charged with Filing False IRS ReturnsRead the Press Release
WASHINGTON – Two St. John the Baptist Parish, Louisiana, residents were arrested today on an indictment charging them with conspiring to defraud the United States and aiding and assisting in the preparation of fraudulent tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana.
As charged in the indictment, Michegel Butler and Brittany Riquel Patterson prepared false tax returns in 2013 for clients of Crown Tax Service in Kenner, Louisiana. Butler is the alleged owner of Crown Tax Service, and Patterson is a return preparer at Crown. As part of the scheme, Butler and Patterson allegedly falsified returns by including fraudulent business income and expenses, dependents, and dependent care expenses. They allegedly sought to substantiate these false items by having clients sign blank declarations of business income and expenses, and false receipts. The indictment charges that some clients also were encouraged to buy or sell the personal identification information of others to facilitate the false reporting of dependents on returns.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Butler and Patterson face a maximum sentence of five years in prison for the conspiracy charge, and three years for each count of aiding and assisting in the preparation of a fraudulent tax return. They also face substantial monetary penalties, supervised release, and restitution.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Strasser commended Assistant United States Attorney Dall Kammer and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting this case. The case was investigated by special agents of IRS-Criminal Investigation.
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Two Louisiana Tax Preparers Charged with Filing False IRS ReturnsRead the Press Release
Two St. John the Baptist Parish, Louisiana, residents were arrested today on an indictment charging them with conspiring to defraud the United States and aiding and assisting in the preparation of fraudulent tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana.
As charged in the indictment, Michegel Butler and Brittany Riquel Patterson prepared false tax returns in 2013 for clients of Crown Tax Service in Kenner, Louisiana. Butler is the alleged owner of Crown Tax Service, and Patterson is a return preparer at Crown. As part of the scheme, Butler and Patterson allegedly falsified returns by including fraudulent business income and expenses, dependents, and dependent care expenses. They allegedly sought to substantiate these false items by having clients sign blank declarations of business income and expenses, and false receipts. The indictment charges that some clients also were encouraged to buy or sell the personal identification information of others to facilitate the false reporting of dependents on returns.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Butler and Patterson face a maximum sentence of five years in prison for the conspiracy charge, and three years for each count of aiding and assisting in the preparation of a fraudulent tax return. They also face substantial monetary penalties, supervised release, and restitution.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Strasser commended Assistant United States Attorney Dall Kammer and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting this case. The case was investigated by special agents of IRS-Criminal Investigation.
Two Delaware Men Plead Guilty to Sex Trafficking a 15-Year-Old GirlRead the Press Release
Baltimore, Maryland – Steven M. Williams, a/k/a “Brother Ray”, a/k/a “Ray,” age 39, formerly of Delaware, pleaded guilty today to sex trafficking of a child by force, fraud, and coercion. Also today, co-defendant Harry E. Rivers, a/k/a “Hakeem” and “Pots,” age 29, also of Delaware, pleaded guilty today to conspiracy to commit sex trafficking of a child, while a third co-defendant, Jessica L. Schaefer, a/k/a “Tutti,” age 24, of Pennsylvania, pleaded guilty to that same charge on January 10, 2019.
The guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Matthew Donnelly of the Elkton Police Department.
“Human traffickers compel victims to work for little or no compensation, often using violence and threats and engaging in illegal activity such as prostitution,” said U.S. Attorney Robert K. Hur. “Through the Maryland Human Trafficking Task Force, local, state and federal law enforcement partners are working with non-profit organizations to help human trafficking victims and prosecute the traffickers. Working to end human trafficking is a priority for the Maryland U.S. Attorney’s Office.”
According to their plea agreements, Schaefer and the victim, Girl 1, engaged in commercial sex acts with men in Delaware. Girl 1 was 15 years old and a resident of Pennsylvania, but lived with her father in Delaware. Schaefer posted ads of herself for commercial sex purposes. Williams responded to one of the ads and determined that Schaefer and Girl 1 would work for him. Williams provided Schaefer and Girl 1 with crack cocaine and they were eventually in debt to Williams. Girl 1 and Schaefer then engaged in commercial sex acts to pay off their debt to Williams. Girl 1 and Schaefer gave any proceeds earned from performing commercial sex acts to Williams. To facilitate the commercial sex acts, Williams rented hotel rooms in his name or the names of men paying for the commercial sex acts, and Rivers provided narcotics to the females and their customers, and helped to arrange “dates” for the females.
In July 2017, Williams drove Girl 1 from Delaware to Elkton, Maryland, separating her from Schaefer. Girl 1 woke up in a motel in Elkton with another sex worker, AH. At Williams’ direction, AH posted an ad featuring a picture of Girl 1 on a website used to advertise and solicit for commercial sex, including the sexual exploitation of minors. While in Maryland, Girl 1 performed commercial sex acts and gave the monies she earned to Williams. Williams physically abused Girl 1 if he thought she was not giving him all the money she earned, and also displayed his firearm.
On July 13, 2017, Girl 1 attempted to leave and hid in AH’s hotel room. Williams, Rivers, and Schaefer traveled from Newark, Delaware to Elkton, to take Girl 1 back to Delaware, to ensure that she did not leave Williams’ employ. Williams and Rivers each had a firearm which they used to threaten AH, demanding that she produce Girl 1. Schaefer had a taser, which she ignited, barged into AH’s room, and took Girl 1 from the room against her will. The defendants drove Girl 1 back to Delaware so that she could continue to engage in commercial sex acts.
On July 14, 2017, AH reported the abduction of Girl 1 to law enforcement. Girl 1 was located and rescued in Newark, Delaware the next day, and the defendants were arrested.
As part of their plea agreements, the defendants will be required to register as sex offenders in the places where they reside, where they are employees, and where they are students, under the Sex Offender Registration and Notification Act (SORNA).
All three defendants face a maximum of life in prison. Chief U.S. District Judge James K. Bredar has scheduled sentencing for Rivers and Williams on April 26, 2019 at 2:00 p.m., and May 31, 2019 at 10:00 a.m., respectively. No date has been set for Schaeffer’s sentencing.
U.S. Attorney Robert Hur commended the FBI, the Elkton Police Department, the Newark (Delaware) Police Department, the Wilmington (Delaware) Police Department, the Cecil County Department of Social Services, the Cecil County State's Attorney's Office, and the Delaware Department of Justice for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Patricia C. McLane and Zachary A. Myers, who are prosecuting the case.
The U.S. Attorney’s Office for the District of Maryland (USAO-MD) maintains a robust human trafficking program, charging an average of ten trafficking defendants every year since 2009, in addition to dozens of defendants charged with child pornography offenses.
As one of the founding members of the Maryland Human Trafficking Task Force (MHTTF), the U.S. Attorney’s Office leads the Task Force’s outreach and enforcement efforts. MHTTF is a statewide coalition of prosecutors, police, and community organizations that work to identify, rescue and rehabilitate victims of human trafficking while investigating and prosecuting offenders. Learn more about the Task Force’s work at http://www.mdhumantrafficking.org.
Additional information about the USAO’s efforts to end human trafficking follows.
- Human Trafficking Coordinator and Maryland Human Trafficking Task Force (MHTTF)
Since 2007, the USAO-MD has designated an Assistant U.S. Attorney (AUSA) to serve as Human Trafficking Coordinator for the district. This AUSA is the point of contact for law enforcement agencies and state prosecutors for human trafficking cases, and serves as the chair of the MHTTF. In addition, the USAO-MD Law Enforcement Coordinator, who has been involved in MHTTF since its inception, serves as a point of contact for outreach, training, and enforcement efforts through the MHTTF.
Led by the U.S. Attorney’s Office, the Task Force serves to coordinate activities, develop policy, and implement strategic plans to combat human trafficking in Maryland. The MHTTF maintains five active sub-committees: Law Enforcement, Victim Services, Training, Public Outreach and Legislative.
Since its inception in 2007, the MHTTF has sought to raise public awareness and implement best practices in investigations, prosecutions, victim identification, and victim service response. Members have customized practices for the unique circumstances that Maryland faces both as an originating point and as a throughway for human trafficking. Law enforcement, prosecutors, and providers work together on the MHTTF to take a victim-centered approach: freeing the victim from oppression and rehabilitating the victim as a witness in order to bring traffickers to justice.
The USAO-MD Human Trafficking and Law Enforcement Coordinators also regularly consult with federal, state, and local law enforcement agencies regarding their current activities in investigating human trafficking crimes.
In addition, USAO-MD in coordination with the MHTTF offers or arranges a wide variety of training to educate law enforcement about best practices in investigating human trafficking. In 2018, the USAO-MD delivered eight law enforcement trainings to more than 490 officers and participated in or sponsored six public awareness events reaching more than 500 community members. The advanced investigators training, held in April 2018, trained 160 law enforcement professionals; and the human trafficking professionals training, held in October 2018 trained 155 human trafficking professionals, to include members of government and non-government agencies, and service providers.
Prosecution of Human Trafficking Cases
In 2018, USAO-MD charged 15 defendants with trafficking offenses, including the defendants who pleaded guilty today. Other notable indictments include the following: United States v. Rody L. Bowden: On May 16, 2018, Rody L. Bowden, of Prince George’s County, Maryland, was indicted on charges of sex trafficking of a minor, sexual exploitation of a minor, and transportation of child pornography. Bowden was also charged with committing these offenses as a registered sex offender. According to the four-count indictment, beginning in December 2016, Bowden engaged in commercial sex acts with a 14-year-old ninth-grade student and took video of the sexually explicit conduct, later e-mailing a copy of the video to another account that he controlled. Bowden is a registered sex offender, stemming from two convictions for sex offenses in Maryland. If convicted, Bowden faces a mandatory 10 years in prison and a maximum of life in prison, for sex trafficking of a minor; a mandatory 35 years in prison and a maximum of life in prison, for sexual exploitation of a minor; and a mandatory 15 years and a maximum of 40 years in prison, for transportation of child pornography.
United States v. Ryan Russell Parks: On June 7, 2018, Ryan Russell Parks, a/k/a “Dinero,” was indicted on two counts of sex trafficking of a minor and one count of use of interstate facilities to promote an enterprise involving prostitution. According to the indictment, Parks had a 16-year-old female and a 15-year-old female engage in commercial sex acts with customers. The indictment alleges that Parks would routinely receive and attempt to receive the monies that the girls earned through commercial sex acts. Parks faces a mandatory 10 years in prison and up to life in prison for each count of sex trafficking of a minor, and a maximum of five years in prison for use of an interstate facility to promote prostitution.
United States v. Reginald Parker and Robin Tarburton: On December 20, 2018, Reginald Parker and Robin Tarburton were indicted on charges of conspiracy to commit sex trafficking of a minor and sex trafficking of a minor. Parker was also charged with attempted enticement of a minor. According to the indictment, Parker engaged in a sex act with the 15-year-old minor, in exchange for money and drugs provided to Tarburton. Additionally, the indictment alleges that Parker exchanged various sexually explicit electronic mail and text messaging communications with the girl that culminated in Parker and the girl engaging in prostitution and criminal sexual activity. Parker and Tarburton each face a mandatory 10 years in prison and up to life in prison for the conspiracy and for sex trafficking of a minor.
Additionally, USAO-MD secured guilty pleas and/or sentences in the following cases: United States v. Roland Akum: Roland Chick Akum, formerly of Silver Spring, Maryland, pleaded guilty to two counts of sex trafficking of a minor and was sentenced to 12 years in federal prison. According to his plea agreement, between June and August 2017, Akum, a/k/a “Rayne,” transported two minor females, 15 and 17 years old, respectively, to a motel in College Park, Maryland, in order to engage in commercial sex acts, used a website that marketed commercial sex to advertise the girls, and kept a portion of the proceeds that customers paid the girls for commercial sex acts.
United States v. Al Samuel Lawson: On April 20, 2018, Al Samuel Lawson, of Baltimore, Maryland was sentenced to 14 years in federal prison for sex trafficking of a minor related to the trafficking of two minor females, 15 and 16 years old, respectively, for prostitution in Maryland.
United States v. Richard Small: On June 5, 2018, Richard Dane Small, a/k/a “Maserati,” of Hagerstown, was sentenced to 16 years in prison for sex trafficking of a minor. According to his plea agreement, in June 2015, Small transported a 15-year-old girl and a 17-year-old girl from Pennsylvania to Maryland with the intent that each minor victim engage in prostitution, and received money that each minor victim made.
United States v. Chukwuemeka Ekwonna: On January 29, 2019, Chukwuemeka Ekwonna, of Glenn Dale, Maryland, pleaded guilty to two counts of sex trafficking of a minor. Between October 2016 and February 2017, Ekwonna, who at the time was a Metropolitan Police Department (MPD) officer in Washington, D.C., engaged in sexual conduct with two girls, who were 14 and 15 years old, in exchange for money. Ekwonna faces a minimum of 10 and a maximum of 20 years in prison. He also will be required to register as a sex offender. Sentencing is scheduled for May 10, 2019 at 12:00 p.m.
The USAO-MD has many resources deployed in the fight against human trafficking, aimed at investigating and prosecuting human trafficking cases; providing support and services for victims; engaging in outreach to law enforcement, prosecutors, non-governmental organizations, and other partners; and educating the community. We will continue to prioritize the investigation and prosecution of human trafficking cases to end this harmful crime.
- Human Trafficking Coordinator and Maryland Human Trafficking Task Force (MHTTF)
Tulsa Man Convicted for Child Pornography, Enticing Minors and Trying to Hide His CrimesRead the Press Release
TULSA, Okla. – A 28-year-old Tulsa man pleaded guilty Friday in U.S. District Court to distribution of child pornography, enticing a minor and tampering with a witness and evidence, announced U.S. Attorney Trent Shores.
In his plea agreement, Levi William Welker admitted that in February 2016 he shared child pornography using a bit torrent file sharing network. Investigators initially discovered 68 images on a torrent file which was traced to Welker’s IP address. During a search, investigators located more than 6,200 image and video files of child pornography.
Welker also admitted that he later used multiple social media apps and communications devices to manipulate and lure two minor children to engage in sexual activity with him. Welker pretended to be 16 years old and provided the victims with cell phones in order to secretly communicate. When one of the children’s parents became suspicious, they reported Welker to the Tulsa Police Department. After the investigation commenced, police discovered that Welker messaged one of the victim’s social media accounts, asking her to lie to police and destroy evidence. He also destroyed other digital evidence in an effort to thwart the investigation.
“Levi Welker criminally exploited the trusting nature of children to fulfill his perverse sexual gratifications. He groomed and manipulated young victims using nearly a dozen different phone apps to share sexually explicit photographs,” said U.S. Attorney Shores. “Welker attempted to hide his crimes by remotely deleting evidence from his phone. Thanks to the watchful eye of concerned parents and the dedicated work of law enforcement, Welker’s heinous acts were revealed.”
U.S. District Judge Claire V. Eagan accepted Welker’s guilty plea and set sentencing for May 30, 2019. At that time, he faces a stipulated sentencing range of 200 to 240 months imprisonment and a maximum fine of $250,000. Welker remains in custody while awaiting sentencing.
The FBI and Tulsa Police Department investigated these crimes. Assistant U.S. Attorney Christopher J. Nassar is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Three South Florida Residents Arrested on Federal Healthcare Fraud ChargesRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office and Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health & Human Services, Miami Regional Office, Office of Inspector General (HHS-OIG), announced that Jose Antonio Mesa Sixto, 53, of Miami, Llunaisy Acanda, 41, of Miami Gardens, and Ania Hans, 41, of Miami, were arrested on charges relating to healthcare fraud and payment and receipt of healthcare kickbacks.
The Indictment, which was the basis for the defendants’ arrests, alleges that between August 4, 2014, and August 19, 2015, Mesa Sixto was the owner and operator of Nissi Home Health Services, Inc (“Nissi”), in Virginia Gardens, Florida. He is alleged to have paid kickbacks to Acanda and Hans in return for Medicare home health patient referrals to Nissi. Mesa Sixto is also charged with witness tampering. The indictment further alleges that between April 2012, and June 2015, Acanda, Hans, and others falsely certified therapy notes indicating that they provided therapy services to Medicare beneficiaries on behalf of Nissi through their companies, A&A Professional Therapy, St. Judges Staffing Group, Inc, and Krystal Rehabilitation Services Corp.
If convicted, Mesa Sixto faces a maximum statutory sentence of 5 years’ imprisonment for paying kickbacks and 20 years’ imprisonment for witness tampering. Acanda and Hans face a maximum statutory sentence of 5 years’ imprisonment for receiving kickbacks and 20 years’ imprisonment for healthcare fraud.
An indictment is only an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and HHS-OIG in this matter. The case is being prosecuted by Assistant U.S. Attorney Michael Gilfarb.
Texas Man Sentenced to Prison for Bank Fraud After Obtaining over $2 MillionRead the Press Release
LITTLE ROCK—A Texas man was sentenced today for defrauding an Arkansas bank by creating fraudulent invoices. Matthew Beasley, 47, of McKinney, Texas, was sentenced to 36 months in federal prison by U.S. District Judge D.P. Marshall, Jr.
Beasley served as President of a construction company in Conway, Arkansas, known as Cobas, Inc. Cobas maintained a line of credit with Centennial Bank. When Cobas performed construction work for other companies, Cobas would send invoices for the work they had performed. While waiting for those invoices to be paid, which could take up to 60 days, Cobas would submit the invoices to Centennial Bank, which would advance a percentage of the invoice amount to Cobas.
In August of 2016, Beasley began submitting fraudulent invoices to Centennial Bank in order to receive advance payments. He submitted several fraudulent invoices each month from August through December of 2016, resulting in a total of 17 fraudulent invoices for approximately $2,911,617.
Beasley pleaded guilty to an Information charging him with one count of bank fraud on September 18, 2018. In addition to 36 months in prison, Judge Marshall sentenced Beasley to two years of supervised release following his term of imprisonment. Beasley was also ordered to pay $2,019,773.36 in restitution.
The case was investigated by the United States Postal Inspection Service – Office of Inspector General and Conway Police Department. The case was prosecuted by Assistant United States Attorney Jana Harris.
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/edarTwitter: @EDARNEWS
Texas Doctor and Hospital Owner Convicted in $20 Million Healthcare Fraud SchemeRead the Press Release
HOUSTON – A federal jury has convicted a 50-year-old internal medicine doctor and 47-year-old hospital owner of conspiracy to commit health care fraud, 17 counts of health care fraud and three counts of money laundering, announced U.S. Attorney Ryan K. Patrick and Assistant Attorney General Brian A. Benczkowski of the Department of Justice’s Criminal Division. The jury deliberated for less than four hours following a two-week trial before convicting Dr. Harcharan Narang and Dayakar Moparty.
Narang, a doctor who owned and practiced at North Cypress Clinical Associates, and Dayakar Moparty, who managed and operated Red Oak Hospital, conspired to commit health care fraud. During trial, the jury heard evidence that Narang and Moparty unlawfully enriched themselves by submitting false and fraudulent claims for medical tests that were not medically necessary, not provided or both and then billed at Red Oak Hospital at a higher reimbursement rate.
Additionally, Narang and his co-conspirators falsified home health patient assessment form documents to make the beneficiaries appear sicker on paper to receive higher reimbursement rates from health care benefit programs such as Blue Cross Blue Shield, Cigna and Aetna. Moparty also also instructed his employees to falsely bill the medical services at Red Oak Hospital and other entities associated with Moparty, when in fact, the patients never received services from Red Oak and the other entities.
At trial, patients consistently testified that they had merely but a Groupon for weight loss shots. However, after meeting with Narang, they all received the same battery of medical tests that were not needed or provided. Health care benefit programs paid Red Oak Hospital approximately $3.2 million. Moparty then covertly paid Narang approximately $3 million to various corporate entities Narang owned.
Narang and MoParty’s co-conspirator, Dr. Gurnaib Sidhu, 67, of Houston, had previously pleaded to conspiracy to commit to health care fraud and is awaiting sentencing.
Narang and Moparty face up 10 years in federal prison for each count of health care fraud and up to 20 years for each count of money laundering. Narang and Moparty were permitted to remain on bond with an ankle monitor pending their sentencing hearing, set for June 20, 2019, before U.S. District Judge Sim Lake.
The FBI and Office of Personnel Management – Office of Inspector General conducted the investigation. Assistant U.S. Attorney Tina Ansari and Trial Attorney Drew Pennebaker are prosecuting the case.
Texas Doctor and Hospital Owner Convicted in Multimillion Dollar Health Care Fraud SchemeRead the Press Release
A federal jury found an internal medicine doctor and hospital owner guilty today for their roles in a multimillion health care fraud scheme, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick of the Southern District of Texas.
Following a two-week trial, Harcharan Narang, 50, of Houston, Texas, and Dayakar Moparty, 47, of Houston, Texas,were found guilty of one count of conspiracy to commit health care fraud, 17 counts of health care fraud and three counts of money laundering. Sentencing is set for June 20, before U.S. District Judge Sim Lake of the Southern District of Texas, who presided over the trial.
Narang is a physician who owned and practiced at North Cypress Clinical Associates in Cypress, Texas. Moparty managed and operated Red Oak Hospital (Red Oak) in Houston, Texas. During the trial, evidence was admitted showing that Narang and Moparty unlawfully enriched themselves by submitting false and fraudulent claims for medical tests that were not medically necessary and/or not provided and then billed at Red Oak Hospital at a higher reimbursement rate.
Additionally, Narang and his co-conspirators falsified diagnostic referral forms to make the beneficiaries appear sicker on paper than they actually were, to receive higher reimbursement rates from health care benefit programs such as Blue Cross Blue Shield, Cigna and Aetna, the evidence showed. Moparty also instructed his employees to falsely bill the medical services at Red Oak and other entities associated with Moparty, when in fact the patients never received services at Red Oak and the other entities.
At trial, patients testified that they had merely bought a Groupon for weight loss shots, but after meeting with Narang, they all received the same battery of medical tests that were not needed or provided. According to the trial evidence, health care benefit programs paid Red Oak approximately at least $3.2 million, and Moparty then covertly paid Narang approximately $3 million dollars to various corporate entities owned by Narang.
Narang and Moparty’s co-conspirator, Gurnaib Sidhu, M.D., 67, of Houston, previously pleaded to conspiracy to commit health care fraud and is awaiting sentencing.
The investigation was conducted by the FBI and the U.S. Office of Personnel Management Office of Inspector General. Trial Attorney Drew Pennebaker of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tina Ansari of the Southern District of Texas are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Two Texarkana Men Sentenced to More Than 7 Years in Federal Prison for Drug TraffickingRead the Press Release
Texarkana, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Patrick Taylor, age 32, of Texarkana, Arkansas, and Bruce Witherspoon, age 34, of Washington, Arkansas, were sentenced yesterday. Taylor was sentenced to 100 months in federal prison followed by four years of supervised release. While Witherspoon was sentenced to 92 months in federal prison followed by four years of supervised release, both for one count of Possession of Methamphetamine with Intent to Distribute. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearings in the United States District Court in Texarkana.
According to court records, investigators in Hempstead County coordinated controlled drug purchases from Taylor and Witherspoon between March and July 2017. Investigators recovered 47 grams of methamphetamine from Taylor, and 10 grams of methamphetamine from Witherspoon.
Both Taylor and Witherspoon were indicted by a federal grand jury in June 2018. Taylor entered a guilty plea in August 2018, and Witherspoon entered a guilty plea in October 2018.
These cases were investigated by the South Central Drug Task Force (SCDTF), the Federal Bureau of Investigation (FBI), and the Hempstead County Sheriff’s Department. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
Stock Broker Sentenced to Prison for Insider Trading Scheme Based on Confidential Information Misappropriated from an Investment BankRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced that MICHAEL SIVA, a former stock broker, was sentenced today to eighteen months in prison for his involvement in an insider trading scheme based on material, nonpublic information misappropriated from an investment bank by Daniel Rivas, a former employee at the bank. SIVA pled guilty on October 18, 2018, to one count of conspiracy to commit securities fraud and fraud in connection with a tender offer before U.S. District Judge Alison J. Nathan, who also imposed today’s sentence.
U.S. Attorney Geoffrey Berman said: “Michael Siva corrupted his position as a stock broker to place trades in the accounts of his brokerage clients based on inside information misappropriated from an investment bank. Siva committed insider trading to make himself look like a talented stock selector. The illegal trading by Siva resulted in millions in illicit profits. This Office is committed to identifying and prosecuting inside information-sharing networks that undermine our nation’s securities markets.”
According to the Indictment, other filings in Manhattan federal court, and statements made in court filings and proceedings:
In August 2017, SIVA, Roberto Rodriguez, Rodolfo Sablon, Jhonatan Zoquier, and Jeffrey Rogiers were arrested and charged in a 54-count Indictment for their involvement in three overlapping insider trading schemes, generating more than $5 million in illicit profits, all stemming from information misappropriated by Rivas. Prior to the unsealing of the Indictment last year, Rivas and an additional participant, James Moodhe, pled guilty and both have been cooperating with the Government in this investigation. Since the unsealing of the Indictment, all of the charged defendants have pled guilty.
The Investment Bank and Rivas
From August 2013 through May 2017, Rivas was employed as a technology consultant in the Research and Capital Markets Technology Group of an investment bank (the “Investment Bank”). In this role, Rivas had access to an internal, proprietary system maintained by the Investment Bank (the “Deal Tracking System”) containing material, nonpublic information (“Inside Information”) about potential and unannounced merger and acquisition transactions, including tender offers, involving the Investment Bank. The Investment Bank’s written policies prohibited the unauthorized disclosure of confidential information, which included Inside Information. Rivas had a duty, among other obligations, to maintain the confidentiality of all of the Investment Bank’s confidential information, including the Inside Information.
Overview of Insider Trading Schemes
From August 2014 through April 2017, Rivas violated the duties of confidentiality he owed to the Investment Bank by serially misappropriating material, nonpublic information from the Investment Bank’s Deal Tracking System and passing that information along to friends so that they could utilize it to make profitable trades. On more than 50 occasions between August 2014 and April 2017, Rivas provided Inside Information about contemplated but unannounced merger and acquisition transactions and tender offer transactions involving clients and prospective clients of the Investment Bank to friends who used that information to purchase and sell securities. In total, the insider trading based on Inside Information misappropriated by Rivas resulted in illicit profits of more than $5 million through trading in more than two dozen securities. The Inside Information was passed through three tipping chains.
The Rivas-Moodhe-Siva Tipping Chain
SIVA was a member of the first of three tipping chains outlined in the Indictment. In this tipping chain, Rivas passed inside information to Moodhe, the father of the woman with whom Rivas was living and dating. Moodhe then passed the inside information to SIVA, a broker and financial adviser at a global investment bank headquartered in Manhattan, New York. Moodhe and SIVA had known each other for more than a decade and SIVA also became Moodhe’s broker.
Between 2015 and 2017, Moodhe shared with SIVA the inside information he received from Rivas so that SIVA could execute profitable trades on behalf of his financial advisory clients and himself. By at least early 2016, SIVA understood that the source of the stock tips provided by Moodhe was a corporate insider at an investment bank with whom Moodhe was friends.
In order to keep their scheme from being exposed, including by SIVA’s employer, Moodhe and SIVA developed code phrases to use on the telephone so that Moodhe could surreptitiously provide SIVA with updated inside information. To further hide their scheme, SIVA and Moodhe began going to various diners outside of New York City so that Moodhe could provide stock tips to SIVA in person. During these meetings, Moodhe read from pieces of paper provided to him by Rivas, which contained detailed information about confidential impending deals, including ticker symbols, deal values and expected announcement dates. In order to hide the fact that SIVA was placing trades in his client accounts based on illicit stock tips from Moodhe, SIVA also instructed Moodhe to mark his dirty trades “solicited” in his firm’s online trading platform, so that it would appear that SIVA had directed the trades as opposed to the suggestion coming from Moodhe. On occasion, SIVA also instructed Moodhe to wait to trade on a tip from Rivas until SIVA could first trade in the security on behalf of his financial advisory clients, thereby making it look like SIVA had originated the idea.
In total, between 2015 and 2017 SIVA and Moodhe used Inside Information Rivas provided to trade ahead of the public announcements of more than two dozen transactions, including numerous tender offers, allowing SIVA and Moodhe to generate illicit profits in excess of $3 million. SIVA also earned thousands of dollars in commissions on the illegal trades entered on behalf of his clients.
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In addition to the prison term, SIVA, 57, of Morristown, New Jersey, was sentenced to 2 years of supervised release and ordered to forfeit $35,000.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for their assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Andrea M. Griswold and Samson Enzer are in charge of the prosecution.