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22 February 2019
Southside Brims Gang Members Plead Guilty to Committing a Violent Act in Aid of RacketeeringRead the Press Release
Baltimore, Maryland – Ali Jackson, age 25, of Baltimore, Maryland, pleaded guilty today to committing a violent act in aid of racketeering, in connection with his membership in the Southside Brims gang. Co-defendant Davon Hamilton, age 20, of Baltimore, pleaded guilty to the same charge on January 31, 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; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore; and Chief John Gavrilis of the Maryland Transit Administration Police.
According to their guilty pleas, Jackson and Hamilton are members of the Southside Brims, a subset of the Bloods, a violent street gang with thousands of members nationwide. In approximately 2005, a member of the Fruit Town Brims, another subset of the Bloods gang that became established on the East Coast, was authorized to form a new Bloods set in Maryland, the Southside Brims. Over time, the Southside Brims expanded in membership to other states, including New Jersey, Virginia, South Carolina, and Pennsylvania.
The Southside Brims follows many of the same practices as the Bloods gang, including identification with the color red, which members wear prominently in clothing, hats, and bandanas as a way to signify membership in the gang; a long-term and violent rivalry with the Crips street gang; and an established hierarchical membership structure, among other things.
Members of the Southside Brims engaged in criminal activity including, attempted murders, murder, assaults, robberies, drug trafficking. Southside Brims members committed acts of violence to maintain membership in the gang, to discipline members within the gang, and to retaliate against rival gang members. Participation in criminal activity by a member, particularly violent acts directed at rival gang members or as directed by gang leadership, increased the respect accorded to that member, resulted in the member maintaining or increasing his position in the gang, and could result in a promotion within the gang. Southside Brims members participated in meetings to conduct gang business, including initiations of new members, discussions of sanctions, collections of membership dues, and discussions of acts of violence and other activities related to the gang.
On March 22, 2018, Jackson and Hamilton were socializing with members of the gang when the group learned that another member of the gang had allegedly been assaulted by members of the rival Crips street gang. Jackson, Hamilton and several gang members went to the area of the assault to assist, ultimately encountering several suspected Crips members in Baltimore. Jackson, Hamilton, and other members of the Southside Brims assaulted one victim, “C.A.,” knocking the victim unconscious. During the assault, one of the members of the gang stabbed C.A. four times with a knife. Members in the gang also forcibly stole property from C.A. Jackson and the other Southside Brims then fled the area. Jackson admitted that he participated in the assault of C.A. to maintain or increase his position in the gang.
Jackson and Hamilton each face a maximum sentence of 20 years in prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for Jackson on April 18, 2019 at 1:00 p.m. and for Hamilton on April 26, 2019 at 11:00 a.m. The defendants remain detained pending sentencing.
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. 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.
United States Attorney Robert K. Hur commended the FBI, HSI Baltimore, and the Maryland Transit Administration Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Matthew DellaBetta and Joan C. Mathias, who are prosecuting the case.
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South Florida Patient Recruiter Convicted for Role in $600,000 Health Care Kickback SchemeRead the Press Release
A federal jury found a South Florida patient recruiter guilty today for her role in a scheme involving approximately $600,000 in Medicare claims for home health care that were procured through the payment of kickbacks.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
After a four-day trial, Yamilet Diaz, 50, of Hialeah, Florida, was convicted of one count of conspiracy to defraud the United States and receive health care kickbacks and four counts of receiving health care kickbacks. Sentencing has been scheduled for May 9 before U.S. District Judge James I. Cohn of the Southern District of Florida, who presided over the trial.
According to evidence presented at trial, from approximately October 2012 to June 2013, Diaz received kickbacks in return for referring Medicare beneficiaries to Good Friends Services Inc. (Good Friends), a now-defunct home health agency located in Hialeah Gardens, Florida, to serve as patients. The evidence established that Diaz and her co-conspirators caused Medicare to make over $600,000 in payments to Good Friends based upon claims for home health services submitted on behalf of the beneficiaries recruited by Diaz. The evidence further established that Diaz personally benefited from the fraud and received at least $306,800.
This case was investigated by the FBI with support from HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case was prosecuted by Trial Attorneys Patrick Mott, John Scanlon and Timothy Loper of the Fraud Section and Assistant U.S. Attorney Leslie Wright of the District of Massachusetts, previously with the Fraud Section.
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. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Shreveport felon found with drugs, firearmRead the Press Release
SHREVEPORT, La. – Bryan Thomas Robinson, 38, of Shreveport, pleaded guilty Wednesday before U.S. District Judge S. Maurice Hicks Jr. to possession of a firearm by a convicted felon and possession of a firearm in furtherance of drug trafficking, U.S. Attorney David C. Joseph announced.
According to the guilty plea, Shreveport Police stopped Robinson’s vehicle on October 28, 2017 on Linwood Avenue. Police searched his vehicle and found a blue bag with approximately 49 grams of marijuana, pills, a digital scale, additional plastic baggies and a Hi Point .45-caliber semi-automatic handgun in a cooler in the trunk of the vehicle. Robinson is also a felon who was convicted on February 25, 2013 of possession with intent to distribute a Schedule II controlled substance and possession with intent to distribute a Schedule I controlled substance, which prohibits him from possessing a firearm under federal law.
Robinson faces up to 10 years in prison for possession of a firearm by a felon and not less than five years in prison for possessing a firearm in furtherance of drug trafficking. He also faces three to five years of supervised release and a $250,000 fine.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Tiffany E. Fields is prosecuting the case.
Savannah residents plead guilty to conspiracy to distribute heroinRead the Press Release
SAVANNAH, GA: Two people are facing substantial prison sentences and fines after pleading guilty to federal heroin trafficking charges.
Gary Johnson, a/k/a “G,” 44, and Jamison Lanier, a/k/a “Monica Lewinsky,” 36, both of Savannah, have each pled guilty to Conspiracy to Possess with Intent to Distribute and Conspiracy to Distribute Heroin in U.S. District Court, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
Each of the defendants face up to 20 years in prison, fines of up to $1 million, and at least three years of supervised release upon completion of their sentences. There is no parole in the federal system.
According to statements made in court and in court filings, Johnson and Lanier were involved in a conspiracy to distribute heroin from at least February through December of 2018. During the investigation, agents observed Lanier and Johnson distribute heroin at multiple parking lots in the Savannah area, including Walmart, Home Depot, Family Dollar, and Memorial Hospital. On Nov. 8, 2018, federal agents executed federal search warrants at three locations associated with Johnson, resulting in the seizure of more than $97,000 cash and more than 170 grams of heroin, with much of it laced with the synthetic opioid Fentanyl.
“Like much of the United States, our communities are seeing a troubling increase in heroin and Fentanyl distribution as a consequence of the nation’s opioid crisis,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “Working with our law enforcement partners, we are determined to find, prosecute, and remove those who would peddle this poison in our neighborhoods.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division stated, “Heroin and synthetic drugs have no boundaries. Once consumed, they destroy their victims like predators ravage their prey. Many thanks to the collaboration of law enforcement agencies and the subsequent prosecution by the U.S. Attorney’s Office, who all made this investigation a success.”
“The U.S. Postal Inspection service remains steadfast in our resolve to ensure that we seek justice to the end against criminals that pose a direct threat to the safety and stability of our communities,” said Antonio J. Gomez, Inspector in Charge of the Miami Division. “This goal is achieved through collaborative investigative efforts with other law enforcement agencies.”
This case was investigated by the Drug Enforcement Administration (DEA) and the United States Postal Inspection Service. The case was prosecuted for the United States by Assistant United States Attorney Joshua Bearden.
San Marcos Man Sentenced to 46 Months in Prison for Stealing the Identities of Charities as Part of a Tax-Fraud SchemeRead the Press Release
Assistant U.S. Attorneys Daniel Zipp (619) 546-8463 and Seth Askins (619) 546-6692
NEWS RELEASE SUMMARY – February 22, 2019
SAN DIEGO – Robert Holcomb, 53, was sentenced in federal court today to 46 months’ custody and ordered to pay a fine of $600,000, for misappropriating the identities of charities and using them to open bank accounts as part of a long-running tax fraud scheme.
Holcomb, who appeared before U.S. District Court Judge William Q. Hayes, was convicted by a federal jury on July 20, 2018 of four counts of making false statements to a financial institution.
According to the evidence presented at trial, Holcomb held himself out as an “asset protection” specialist who had the ability to use charitable trust accounts to reduce the tax liability of clients. Holcomb convinced his clients to forward him the profits from their businesses, which he then cycled through a series of bank accounts—with names that sounded like charities—and then returned the funds, minus a commission, with the assurance that they no longer constituted taxable income. Holcomb’s clients then filed tax returns that substantially underreported their true income, resulting in millions of dollars in lost income to the IRS. Over the course of a decade, Holcomb transferred more than $12 million in otherwise taxable income through his accounts, collecting “commissions” from his clients of more than $1 million dollars.
In 2011, after a number of Holcomb’s bank accounts were frozen, he was forced to open dozens of new accounts to keep the tax-evasion scheme operating. To do so, Holcomb began creating corporate entities whose names matched those of existing charities; misappropriating the taxpayer identification information from those charities; and then using their names and identification numbers to open new bank accounts. These charities included:
- Light of Life LLC, which operated a soup kitchen and rescue mission in Pittsburgh, PA;
- On Eagle’s Wings LLC, which provided missionary outreach in the Northwest Territories of Canada;
- Push the Rock, LLC, a Christian Sports Ministry, in Pennsylvania; and
- Sharing and Caring, LLC, a veteran’s organization that organized an annual boat trip for wounded veterans in Pittsburgh.
Representatives from each organization testified at trial that they did not know Holcomb, never gave him authorization to use their identities, and were unaware that he opened bank accounts in their name. When confronted about his affiliation with the charities, in a recorded call, Holcomb claimed that he had a “fiduciary relationship” and “run[s] everything.” When IRS agents then executed a search warrant on Holcomb’s residence, he admitted to using the charities’ numbers, but claimed that he could “use whatever number” he wanted, because he was “USA posterity.” Holcomb explained that he was “part of the upper caste” that was descended from the original founders of the “Massachusetts Bay Company.” As such, he explained, he was not required to pay taxes and was not subject to the Constitution.
“Holcomb used a series of sham trust arrangements to divert millions of taxpayer dollars into his own pocket,” said U.S. Attorney Robert Brewer. “His offense was particularly egregious because he used the identities of real charities in order to avoid detection and continue collecting commissions on funds that should have gone to the U.S. Treasury. No one is above the law, and merely claiming to be a sovereign citizen will not exempt you from criminal liability.”
“As today’s sentencing shows, individuals who create elaborate schemes that have no purpose other than to defraud the IRS and financial institutions will be prosecuted and suffer a loss of freedom,” said Acting Special Agent in Charge Bryant Jackson of IRS Criminal Investigation. “With filing season in full swing, it is a good time to remember that the IRS will actively pursue fraudsters who cleverly orchestrate these types of avoidance schemes.”
The case was prosecuted by Assistant U.S. Attorneys Daniel Zipp and Seth Askins.
DEFENDANT 16-CR-1408-WQH
Robert Holcomb Age: 53 San Marcos, CA
SUMMARY OF CHARGES
Making False Statements to a Financial Institution (18 U.S.C. 1014)
AGENCIES
Federal Bureau of Investigations
Internal Revenue Service
Bureau of Alcohol, Tobacco, Firearms and Explosives
Russian Hacker Who Used Neverquest Malware to Steal Money from Victims’ Bank Accounts Pleads Guilty in Manhattan Federal CourtRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that STANISLAV VITALIYEVICH LISOV, a/k/a “Black,” a/k/a “Blackf” (“LISOV”), pled guilty today to conspiring to deploy and use a type of malicious software known as NeverQuest to infect the computers of unwitting victims, steal their login information for online banking accounts, and use that information to steal money out of the victims’ accounts. NeverQuest has been responsible for millions of dollars’ worth of attempts by hackers to steal money out of victims’ bank accounts. LISOV pled guilty before United States District Judge Valerie E. Caproni.
U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Stanislav Vitaliyevich Lisov used malware to infect victims’ computers, obtain their login credentials for online banking accounts, and steal money out of their accounts. This type of cybercrime extends across borders, poses a malicious threat to personal privacy, and causes widespread financial harm. For his audacious crime, this Russian hacker now faces justice in an American court.”
FBI Assistant Director William F. Sweeney Jr. said: “'In addition to creating and maintaining a botnet infected with NeverQuest malware, Stanislav Lisov, a Russian national, gathered personally identifiable information of NeverQuest victims and discussed illegally trafficking that information. As today's plea should demonstrate, the FBI and our partners will continue to bring these actors to justice, regardless of where they may hide.”
According to the Indictment, Complaint, and other statements made during public court proceedings:
NeverQuest is a type of malicious software, or malware, known as a banking Trojan. It can be introduced to victims’ computers through social media websites, phishing emails, or file transfers. Once surreptitiously installed on a victim’s computer, NeverQuest is able to identify when a victim attempts to log onto an online banking website and transfer the victim’s login credentials – including his or her username and password – back to a computer server used to administer the NeverQuest malware. Once surreptitiously installed, NeverQuest enables its administrators remotely to control a victim’s computer and log into the victim’s online banking or other financial accounts, transfer money to other accounts, change login credentials, write online checks, and purchase goods from online vendors.
Between June 2012 and January 2015, LISOV was responsible for key aspects of the creation and administration of a network of victim computers known as a “botnet” that was infected with NeverQuest. Among other things, LISOV maintained infrastructure for this criminal enterprise, including by renting and paying for computer servers used to manage the botnet that had been compromised by NeverQuest. Those computer servers contained lists of millions of stolen login credentials – including usernames, passwords, and security questions and answers – for victims’ accounts on banking and other financial websites. LISOV had administrative-level access to those computer servers.
LISOV also personally harvested login information from unwitting victims of the NeverQuest malware, including usernames, passwords, and security questions and answers. In addition, LISOV discussed trafficking in stolen login information and personally identifiable information of victims.
On January 13, 2017, LISOV was arrested in Spain pursuant to a provisional arrest warrant. On January 19, 2018, LISOV was extradited from Spain to the United States.
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LISOV, 33, a citizen of Russia, pled guilty to one count of conspiracy to commit computer hacking, which carries a maximum sentence of five years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. LISOV’s sentencing is scheduled for June 27, 2019 at 11:00 a.m. before Judge Caproni.
Mr. Berman praised the outstanding investigative efforts of the FBI. Mr. Berman also thanked the DOJ Office of International Affairs for its assistance in this case.
The matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Michael D. Neff is in charge of the prosecution.
Rosebud Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Travis Bird In Ground, age 20, was indicted on February 13, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 20, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 25, 2018, Bird In Ground did forcibly assault, oppose, impede, intimidate, and interfere with a law enforcement officer who was employed by the Rosebud Sioux Tribe Law Enforcement Services, and that such conduct involved physical contact.
The charge is merely an accusation and Bird In Ground is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Bird In Ground was released on bond pending trial. A trial date has not been set.
Rockford Man Pleads Guilty to Illegally Possessing a Firearm and AmmunitionRead the Press Release
ROCKFORD — A Rockford man pleaded guilty in federal court today before U.S. District Judge Frederick J. Kapala to illegally possessing a firearm and ammunition as a convicted felon.
AUSTIN A. RICHARDSON, 25, admitted that on Sept. 20, 2017, he possessed a Taurus 9mm pistol and approximately 50 rounds of ammunition at a shooting range after having been previously convicted of a felony.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. The government is represented by Assistant U.S. Attorney Talia Bucci.
As stated in the plea agreement, Richardson and another individual took the Taurus 9mm pistol to a firearms retailer and shooting range in Loves Park, and Richardson shot the pistol numerous times at the shooting range. Richardson and the other individual also bought approximately 50 rounds of ammunition from the firearms retailer, with Richardson providing the money for the purchase.
Richardson faces a maximum sentence of ten years’ imprisonment, a term of supervised release of up to three years following imprisonment, and a fine of up to $250,000. The actual sentence will be determined by the United States District Court, guided by the Sentencing Guidelines. Sentencing is scheduled for June 20, 2019, at 2:00 p.m.
Rockford Man Pleads Guilty to Attempted Robbery and Firearm ChargesRead the Press Release
ROCKFORD — A Rockford man pleaded guilty today in federal court before U.S. District Judge Frederick J. Kapala to one count of attempted robbery and one count of using, carrying, and brandishing a firearm during a crime of violence.
DARNELL LEAVY, 28, admitted in a written plea agreement that at approximately 7:00 p.m. on Nov. 5, 2015, he and others attempted to rob the Zake Convenience store, 824 Seventh St. in Rockford. As stated in Leavy's plea agreement, co-defendant RICKEY CLAYBRON, 33, of Rockford, entered the store first with his gun pointed at two clerks who were behind a glass enclosure. Leavy entered second and also began pointing his gun at the clerks, according to Leavy's plea agreement. A third individual then entered the store carrying a bag meant for the proceeds of the robbery, Leavy's plea agreement states. The employees of the store barricaded themselves in the glassed-in area where the registers were located. Leavy's plea agreement further states that Leavy tried to kick the door open, but was unsuccessful. In the meantime, according to Leavy's plea agreement, Claybron came around the front of the glass enclosure and pointed his gun through the small hole in the front that is used to conduct business with customers. Eventually, Leavy and the other robbers gave up on the robbery and walked out of the store, Leavy's plea agreement states.
Leavy's guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The federal investigation was conducted by the FBI-led Rockford Area Violent Gang Task Force, which includes law enforcement officers and agents from the FBI, Rockford Police Department, Loves Park Police Department and Freeport Police Department. The government is represented by Assistant U.S. Attorney Margaret J. Schneider.
For the attempted robbery, Leavy faces a maximum sentence of 20 years’ imprisonment, to be followed by a term of supervised release of up to three years following imprisonment. For the firearm charge, Leavy faces a statutory mandatory minimum sentence of seven years and a maximum sentence of life, to be consecutive to any other sentence imposed, as well as a term of supervised release of up to five years following imprisonment. Both charges also carry a fine of up to $250,000 apiece. The sentence will be determined by the United States District Court, guided by the Sentencing Guidelines. Sentencing for Leavy is set for June 4, 2019, at 11:00 a.m.
Claybron is charged with one count of conspiracy to commit robbery, three counts of robbery, one count of attempted robbery, and four counts of using, carrying, and brandishing a firearm during a crime of violence. Claybron has pleaded not guilty and is in custody while awaiting trial.
Also charged in the case is DEANDRE R. HAYWOOD, also known as “Duke,” 28, of Rockford. Haywood is charged with one count of conspiracy to commit robbery, three counts of robbery, and three counts of using, carrying, and brandishing a firearm during a crime of violence. Haywood has pleaded not guilty and is in custody while awaiting trial.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Repeat Offender with 30 Year Criminal History Sentenced to Prison for Drug Dealing on Kent’s East HillRead the Press Release
A one-time Crips gang member with prior convictions for assault, robbery, and drug dealing was sentenced today in U.S. District Court in Seattle to 70 months in prison for conspiracy to distribute methamphetamine, announced U.S. Attorney Brian T. Moran. ANTHONY COLBERT, 49, of Seattle pleaded guilty in September 2018, following his arrest as part of “Operation East Watch.” The law enforcement initiative, led by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), focused on drug dealing and gang violence in Kent’s East Hill neighborhood. COLBERT was fresh from a federal prison sentence for drug dealing when he was identified as a key drug conspirator at the Highland Green apartments. COLBERT tried to hide behind others as he distributed drugs in the community. At the sentencing hearing Chief U.S. District Judge Ricardo S. Martinez said COLBERT had “an extensive criminal history with very serious offenses – made even worse by the fact that when he committed these crimes he had just gotten off of supervised release.”
“This defendant has already served a total of 25 years in prison for state and federal offenses and now is adding to that unenviable record,” said U.S. Attorney Brian T. Moran. “The East Watch initiative targeted offenders causing crime and violence in an area that saw 29 shootings in 2018. By taking these habitual offenders out of our communities we hope to make our neighborhoods safer for all of us.”
“Mr. Colbert’s willingness in conspiring to distribute this deadly drug placed the community at great risk,” said ATF Seattle Field Special Agent in Charge Darek Pleasants. “His actions show contempt for law and order and this sentence is justified by the danger he poses to society.”
According to records filed in the case, just four months after being terminated from supervised release for a 2014 federal conviction for distributing oxycodone and Percocet, COLBERT came to the attention of law enforcement. COLBERT was identified as the source of supply of methamphetamine for co-defendant Allen Betts III, who distributed the drugs out of his Highland Green apartment complex. Law enforcement observed COLBERT bring the drugs to Betts on multiple occasions, before Betts sold the drugs to an undercover agent and a person working with law enforcement.
COLBERT has criminal history dating back to the 1980’s for drug and gun crimes. In 1991, he was sentenced to 65 months in prison for firing shots in a Seattle neighborhood in a turf dispute with another gang. In 1995, within a year of his release from prison he was sentenced to 12 years in prison for robbery. In 2006, while still on state supervision he illegally possessed a firearm and was sentenced to an additional 70 months in prison. His federal conviction followed with a three-year federal sentence.
All eight defendants in Operation East Watch have pleaded guilty. Two of the eight await sentencing later this year.
- Mario Parra-Cetino, 28 of Kent, Washington was sentenced earlier this month to 66 months in prison for conspiracy to distribute heroin and being a felon in possession of a firearm.
- Anthony Ripley, 46, of Tacoma, was sentenced in November 2018, to ten years in prison for drug and gun possession crimes.
- Eddie Tarik Musa Bell, Jr was sentenced in November to four years in prison for distribution of methamphetamine and being a felon in possession of a firearm.
- Devon Parramore, 50 of Kent, was sentenced last month to 33 months in prison for distribution of methamphetamine.
- Allen Betts III, 40, of Kent, pleaded guilty to conspiracy to distribute methamphetamine and unlawful possession of a firearm and was sentenced last month to four years in prison.
- Neal Stringer, 46, of Kent and Des Moines, pleaded guilty to conspiracy to distribute methamphetamine and being a felon in possession of a firearm. He is scheduled for sentencing in April 2019.
- Kenyon Taylor, 39, of Federal Way, pleaded guilty in December 2018, to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. He is scheduled for sentencing in March 2019.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, DOJ leadership announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The operation was led by the Bureau of Alcohol, Tobacco, Firearms & Explosives’ (ATF) Puget Sound Regional Crime Gun Task Force and the Kent Police Department. The task force contains agents and officers from King County Sheriff’s Office, Washington State Department of Corrections, Washington State Patrol, Drug Enforcement Agency, U.S. Marshals Service, Seattle Police Department, and Valley Narcotics Enforcement Team.
The cases are being prosecuted by Assistant United States Attorney Amy Jaquette and Special Assistant United States Attorney Jessica Manca. Ms. Manca is a Senior Deputy King County Prosecutor specially designated to prosecute gun crimes in federal court.
Registered Sex Offender Charged in “Sextortion” CaseRead the Press Release
United States Attorney Erica H. MacDonald today announced the indictment of DYLAN MATTHEW DELING, a/k/a “Jason Keens,” a/k/a “Dylan Nash,” 19, on child pornography and extortion charges. DELING made his initial appearance yesterday before Magistrate Judge Katherine Menendez, in U.S. District Court in Minneapolis, Minnesota.
“As the cyber threat landscape continues to evolve, sextortion crimes are becoming more prevalent through the use of social media platforms and messaging apps,” said U.S. Attorney Erica MacDonald. “These types of cases cause very real harm and can have a devastating impact, especially on young victims. Teachers, parents, and students alike need to be aware of this issue, know how to defend against online predators, and be vigilant in reporting these crimes.”
According to the allegations in the indictment, on May 14, 2018, DELING, a registered sex offender, persuaded, induced, and coerced a minor victim (Minor A) to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. On July 8, 2018, DELING contacted a second minor victim (Minor B) and threatened to kidnap and injure the victim and her parents if she did not provide DELING with sexually explicit images.
This case is the result of an investigation conducted by the FBI, in coordination with multiple state and local law enforcement agencies inside and outside of Minnesota.
This case is being prosecuted by Assistant U.S. Attorney Miranda E Dugi.
Defendant Information:
DYLAN MATTHEW DELING, a/k/a “Jason Keens,” a/k/a “Dylan Nash,” 19
Fairmont, Minn.
Charges:
- Production and attempted production of child pornography, 1 count
- Penalties for registered sex offenders, 1 count
- Interstate commination with intent to extort, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Randolph County woman admits to drug distributionRead the Press Release
ELKINS, WEST VIRGINIA – Kelsey Rae Sylvester, of Elkins, West Virginia, has admitted to maintaining a drug house, United States Attorney Bill Powell announced.
Sylvester, age 32, pled guilty to one count of “Maintaining a Drug-Involved Premises.” Sylvester admitted to allowing others to use her home at 461 Wilson Street in Elkins to distribute methamphetamine, heroin, and cocaine. The crime occurred from January to March 2017.Sylvester faces at least five years and up to 20 years incarceration and a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michel John Aloi presided.
Philadelphia Businessman Ordered to Pay $81,217 in Restitution for Failure to Pay Employment TaxesRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced today that Jong Young Choi, 46, of Chalfont, PA, was ordered to pay $81,217.00 in restitution for willful failure to pay employment taxes. He was also sentenced to 5 years' probation for his conduct. Choi, as the president and sole shareholder of JUNS, Inc., doing business as Daisy Dry Cleaners, located in Philadelphia, was responsible for collecting, accounting for, and paying employment taxes due to the Internal Revenue Service from January 1, 2012 through January 31, 2016. He failed to collect and pay approximately $67,931 in employment taxes for his employees.
“By ignoring his employment tax obligations for years, Choi lived by his own set of self-imposed rules, but his criminal conduct eventually caught up with him,” said U.S. Attorney McSwain. “Failure to pay employment taxes is a federal crime – one that my Office takes seriously. We will continue to hold people accountable when they willfully fail to pay taxes owed to the Internal Revenue Service.”
“When Jong Choi made the decision not to collect and turn over all IRS withholding taxes, he also made the decision to cheat his employees and other honest taxpayers,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. "The investigation of employment tax fraud is a priority for the special agents of IRS-CI as our system of taxation depends on everybody paying their fair share. Let today’s sentence serve as a warning to those contemplating similar actions."
The case was investigated by the Internal Revenue Service, Criminal Investigation Division and is being prosecuted by Assistant United States Attorney Terri A. Marinari.
Per Se Rule Applies in Heir Location Prosecution, Judge Grants United States’ MotionRead the Press Release
In an opinion issued yesterday, the United States District Court for the District of Utah granted the United States’ Motion to Reconsider and found the per se rule applies to the horizontal customer agreement alleged in the indictment of heir location service providers Kemp & Associates and its Chief Operating Officer, Daniel J. Mannix.
“The Department is pleased that the Court granted our motion today and we look forward to trying this case to protect consumers who are harmed by the conduct alleged in the indictment,” said Assistant Attorney General Makan Delrahim.
In granting the United States’ Motion, the Court found the “the agreement in the present case is a horizontal customer allocation agreement, and therefore subject to the Per Se approach.”
Heir location firms identify people who may be entitled to an inheritance from the estate of someone who died without a will. The heir location firms then enter into contracts with those people to help secure their inheritances in exchange for a fee.
The indictment alleges that the conspirators agreed to suppress and eliminate competition between them on estates they both pursued. Specifically, the indictment alleges that they agreed that the second company to solicit an heir on an estate would allocate that heir and the business of certain remaining heirs to the first company. In exchange for backing off, the first company would then pay the second company a portion of the contingency fees ultimately collected from the allocated heirs. The conspirators memorialized, monitored, enforced, and profited from this agreement from as early as September 1999 until as late as January 2014.
Pennsylvania Man Sentenced to 147 Months in Prison for Three Robberies, Possessing Firearm in Furtherance of Crime of ViolenceRead the Press Release
CAMDEN, N.J. – A Pennsylvania man was sentenced today to 147 months in prison for committing three armed robberies in Salem, Ocean, and Cumberland counties in November 2017, U.S. Attorney Craig Carpenito announced.
Terrance Robinson, 32, of Havertown, Pennsylvania, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to an information charging him with one count of Hobbs Act robbery, two counts of bank robbery, and one count of possession of a firearm in furtherance of a crime of violence. Judge Simandle imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On Nov. 1, 2017, Robinson and Jeffery Edmonds, 45, of Ridley Park, Pennsylvania, drove together to a convenience store in Upper Pittsgrove Township, New Jersey, stopping along the way to pick up a handgun and remove the license plates from the car that Edmonds was driving. After arriving at the convenience store, Edmonds remained in the getaway car while Robinson entered the store with the handgun and stole some money.
Edmonds and Robinson robbed an Ocean First Bank in Upper Deerfield Township, New Jersey, on Nov. 6, 2017, and a Fulton Savings Bank in Alloway Township, New Jersey, on Nov. 14, 2017. Prior to robbing the banks, Edmonds and Robinson removed the license plates from the getaway car. Robinson stayed in the getaway car while Edmonds entered the banks and robbed them with a handgun.
In addition to the prison term, Judge Simandle sentenced Robinson to five years of supervised release and ordered him to pay restitution of $13,527.
Edmonds previously pleaded guilty for his alleged roles in the robberies, and his sentencing is scheduled for March 1, 2019.
U.S. Attorney Carpenito credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, special agents of the FBI Newark Field Office, under the direction of Special Agent in Charge Gregory W. Ehrie, and officers of the N.J. State Police, under the direction of Superintendent Col. Patrick J. Callahan, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
Participants in $200 Million Workers’ Comp Scheme Sentenced to Prison and More Than $2 Million in Financial PenaltiesRead the Press Release
Assistant U.S. Attorneys Valerie Chu (619) 546-6750, Caroline Han (619) 546-6968 and Fred Sheppard (619) 546-8237
NEWS RELEASE SUMMARY – February 22, 2019
SAN DIEGO – This week in federal court a slew of conspirators involved in a massive Workers’ Compensation kickback scheme were ordered to serve prison sentences and pay millions in financial penalties for their roles in the corrupt payment of millions of dollars to induce doctors and other medical professionals to refer hundreds of injured workers for medical treatments and services.
According to court records, dozens of marketers, doctors, lawyers and medical service providers conspired to bilk the Workers’ Compensation system in California by buying and selling patients -- and their individual “body parts” -- like commodities. Among the defendants sentenced this week was an attorney, a chiropractor, two business owners and several marketers who referred patients for tests (such as MRIs, functional capacity exams and sleep studies), treatments (such as “shockwave,” x-rays, and ultrasound), pain medications, and durable medical equipment (DME) based on the corrupt payments. The conspirators often subjected patients to uncomfortable and sometimes painful procedures, so the conspirators could thereafter bill insurance companies for millions of dollars. As the government argued in its sentencing papers, the conspirators’ corruption of the doctor-patient relationship caused physicians to see price tags on every patient’s body parts. Each of the defendants played a critical role in the corrupt scheme.
The Corrupt Network
Defendant Fermin Iglesias and co-defendant Carlos Arguello operated a patient-capping enterprise, in which they found individuals who would file Workers’ Compensation claims against their employers. Iglesias and Arguello then sold, bartered and exchanged these applicants with others in the Workers’ Compensation industry, including attorneys, primary care physicians, and providers of medical goods and services. Each of these entities had to “pay to play,” and as the patient was referred throughout this corrupt system, money changed hands at each step. Arguello operated several patient-recruitment entities, including one called Centro Legal. Through billboards, flyers, advertisements and business cards, Centro Legal recruited persons to seek workers' compensation benefits from their employers or former employers. When the injured worker called the 1-800 number on the billboard or card, he or she reached a call center, which might be located in another country. From there, Iglesias’ company, Providence Scheduling, took over brokering the patient to maximize the profit that could be extracted from him or her.
Centro Legal referred the newly-acquired patient to complicit Workers' Compensation attorneys, including, in San Diego, attorney Sean O’Keefe, who had one of the largest Workers’ Comp caseloads in the region. To get these new clients, the attorneys in the corrupt network were expected to comply with certain conditions: first, they had to use Arguello’s copying service to fulfil document requests for all of the new client’s medical records; second, they had to agree to designate as their client’s primary treating physician (“PTP”) one of the complicit physicians within the corrupt network. In exchange, the attorneys received compensation. For O'Keefe, the compensation took a variety of forms. One hospital administrator paid the salaries of two employees of O’Keefe’s law firm, as a kickback to O’Keefe for referring spinal surgeries to that hospital. In another variation, the kickback payments were disguised as payments for nonexistent legal services, for which O’Keefe generated phony “legal invoices” to cover up those obviously illegal payments.
The corrupt physician could serve as the patients' primary care physician in the Workers' Comp system. This was a key gatekeeper role, because the PTP was entrusted with the authority to determine what additional goods and services the patient needed. Iglesias required that the chiropractors prescribe a certain minimum quota of goods and services, on average, for each patient. If the chiropractor failed to live up to the quota, Iglesias would cut off the flow of new patients.
Dr. Steven Rigler was one of the chiropractors involved in the corrupt referral network. He had clinics in Calexico, San Diego, and Escondido. To get patients for his San Diego and Escondido clinics, Rigler agreed to meet the referral “quota” set by Iglesias and Arguello. Court records reflect that Iglesias set a “value” for each type of service the physicians could refer, for example, $30 for each MRI, and $150 for Durable Medical Equipment (DME), to meet the quota of $600. To get credit, physicians had to refer their DME orders to Iglesias’ company, Meridian Medical Resources. Many of the MRIs were referred to Advanced Radiology, a diagnostic imaging company owned by Dr. Ronald Grusd. In Calexico, Ruben Martinez ran Rigler’s clinic and managed all of Rigler’s referrals for ancillary services. Alexander K. Martinez performed the same service for Rigler’s other clinics.
If the physicians failed to meet the quota, Iglesias cut off the pipeline of new patients. Iglesias employed Miguel Morales to ensure that physicians met the quota, and to demand lump-sum payoffs from them if they failed to do so. And to avoid such problems, and ensure a smooth referral process, Arguello hired referral managers who worked in chiropractor offices. For a time, Julian Garcia was paid by Arguello to manage Rigler's referrals. Garcia had Rigler's signature stamp, and if Rigler got behind, Garcia would simply increase the number of MRIs referred for each patient. Eventually, Garcia himself got licensed as a DME provider, and he himself paid chiropractors $50 apiece to prescribe “hot/cold packs” for pain relief, which were then billed to insurance companies for nearly $6,000.
Jennifer Louise White represented providers of other types of services, namely, Autonomic Nervous System (“ANS”) studies and sleep studies. She worked with Alex Martinez and with providers of the ANS and sleep studies to pay nearly $200,000 in kickbacks to Rigler to refer patients for these services.
Sentencing Hearings
In sentencing hearings held on February 20 and 21, 2019, U.S. District Judge Cynthia A. Bashant sentenced each defendant to custodial time. For his crimes, Iglesias was sentenced to 60 months in custody, and required to forfeit $1,005,000 in ill-gotten gains. Judge Bashant imposed five years’ probation on Igelsias’ corporations, MedEx and Meridian, and imposed a $500,000 joint and several fine. Miguel Morales was sentenced to 12 months and 1 day in custody, and was required to forfeit $140,000.
Alexander and Ruben Martinez were each sentenced to 33 months in custody and three years of supervised release. Their companies, Line of Sight and Desert Blue Moon, were sentenced to five years’ probation and fines of $45,000 and $20,000 respectively. Jennifer Louise White was sentenced to 24 months in custody, and ordered to pay fine of $25,000.
Onetime Workers’ Compensation applicant attorney Sean E. O’Keefe received a sentenced of 13 months in custody, and was required to forfeit $300,000 in ill-gotten gains. San Diego chiropractor Steven J. Rigler was sentenced to six months in custody, and was ordered to forfeit $150,000. The court substantially reduced both defendants’ sentences because they cooperated with authorities soon after being confronted by agents, and played critical roles in revealing the scope of the corrupt network.
Throughout the sentencing hearings, Judge Bashant expressed dismay that the defendants scammed a system “that’s set up to help people that really need the help.” She further expressed concern that these crimes would undermine public support for social safety-nets, such as the Workers’ Compensation system for injured workers. She expressed particular disappointment that licensed professionals like attorney O’Keefe and Dr. Rigler would engage in the fraud: “You are the most educated. You should know better,” she reproached them.
This week’s sentencing hearings, along with the conviction and sentence of Beverly Hills Radiologist Dr. Ronald Grusd, bring to a successful close the first wave of cases brought by the U.S. Attorney’s Office and its law enforcement partners to combat fraud in the California Workers’ Compensation System.
“It is unfortunate that some individuals see only an opportunity to profit in a system designed to aid injured workers,” said U.S. Attorney Robert S. Brewer, Jr. “What’s more, this crime corrupted the doctor-patient relationship. A doctor’s medical decisions should be based on the best interest of the patient, not the highest bidder.”
“Health care fraud betrays vulnerable patients and steals funds meant to care for injured workers,” said FBI Special Agent in Charge John Brown. “The cases in 'Operation Back Lash' have shown that these medical professionals, doctors, and attorneys who took bribes chose profit over their patients. This massive investigation, with over 30 convictions to date, demonstrates the FBI's commitment to finding those who commit fraud and bringing them to justice.”
Anyone with information about healthcare fraud may call the FBI at 1-800-CALL-FBI, or 1-800-225-5324 or the California Department of Insurance’s toll-free fraud hotline, 800-927-4357.
DEFENDANTS
United States v. Grusd, et al., 15cr2821-BAS Sentence
Ronald Grusd, Los Angeles, CA 10 years, $1.3 million forfeiture, $250,000 fine
California Imaging Network Medical Group 5 years’ Probation, $500,000 fine
Willows Consulting Company 5 years’ Probation, $500,000 fine
Alex Martinez, El Centro, CA 37 months’ custody
Ruben Martinez, Murietta, CA 33 months’ custody
Line of Sight, Inc. 5 years’ Probation, $45,000 fine
Desert Blue Moon, Inc. 5 years’ Probation, $20,000 fine
United States v. Iglesias et al, 16CR0131-BAS
Fermin Iglesias 60 months’ custody, $1,005,000 forfeiture
MedEx Solutions 5 years’ Probation, $500,000 fine
Meridian Medical Resources 5 years’ Probation, $500,000 fine
Miguel Morales 12 months 1 day custody, $140,000 forfeiture
United States v. Garcia, 15CR2820-BAS
Julian K. Garcia, National City, CA 33 months’ custody, $10,000 fine
United States v. White, 16CR2905-BAS
Jennifer Louise White, Glendale, CA 24 months, $25,000 fine
United States v. O’Keefe, 14CR2343-BAS
Sean Enrique O’Keefe 13 months, $300,000 forfeiture
United States v. Rigler, 15CR2773-BAS
Steven J. Rigler 6 months, $150,000 forfeiture
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego County District Attorney’s Office
California Department of Insurance
Northern District of Iowa U.S. Attorney’s Office Collects over $4,000,000 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
U.S. Attorney Peter E. Deegan, Jr. announced today that the Northern District of Iowa collected $4,488,405.85 in criminal and civil actions in Fiscal Year 2018. Of this amount, $1,839,911.31 was collected in criminal actions and $2,648,494.54 was collected in civil actions.
Additionally, the Northern District of Iowa worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $3,865,556.19 in civil cases pursued jointly with these offices.
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.
“This office is committed to holding wrongdoers financially responsible for their actions and their crimes,” Deegan said. “Collecting money from those who commit crimes and profit at the expense of others is a vital part of our mission. We will continue to work diligently to collect money for the federal treasury and return money to victims of crime.”
“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. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
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 to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
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New Orleans Man Sentenced to 105 Months for Felon in Possession of a Firearm ChargeRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that United States District Court Judge, Lance M. Africk, sentenced RODNEY LAVALAIS, age 33, of New Orleans, to 105 months of imprisonment, to be served in the United States Bureau of Prisons. The sentence will run concurrent with January 10, 2019 state court convictions in which LAVALAIS was sentenced to 5 years in the Louisiana Department of Corrections. Following his term of imprisonment, LAVALAIS will be placed on 3 years of supervised release. On March 22, 2018, LAVALAIS pled guilty to possessing a firearm after being convicted of a felony offense.
LAVALAIS’ case has been designated as a Project Safe Neighborhoods (PSN) case. 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.
U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kenner Police Department in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution.
New Mexico Man Sentenced to More Than 21 Years in Federal Prison for Methamphetamine TraffickingRead the Press Release
A New Mexico man was sentenced on February 22, 2019, to federal prison after he was convicted in Sioux City on September 27, 2018, following a two day jury trial.
William Thomas Hill, age 41 from Bloomfield, New Mexico, was convicted of conspiracy to distribute methamphetamine, and possession with intent to distribute methamphetamine.
The evidence at trial showed that Hill was a leader in a conspiracy to distribute ice methamphetamine in the Sioux City area. Hill recruited others to bring methamphetamine from California to sell in the Sioux City area. Hill, and others arranged large quantities of methamphetamine to be delivered to Sioux City on at least three occasions in the fall of 2017. On November 8, 2017, Hill, and co-defendant Kelvin Ross, were in possession 2 pounds of nearly pure methamphetamine from California. Hill was arrested while arranging the transfer of the drugs to a Sioux City man, and Ross was arrested at a local motel later that night. When Ross was arrested, officers of the Tri-State Drug Task Force found two pounds of high purity methamphetamine in the engine compartment of his car.
Hill was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Hill was sentenced to 262 months’ imprisonment. He must also serve a 5 year term of supervised release after the prison term. There is no parole in the federal system.
Hill is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Jack Lammers and Mikala Steenholdt, and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa. The Tri-State Drug Task Force consists of law enforcement personal from the Drug Enforcement Administration; Sioux City, Iowa Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office..
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-4071-LTS.
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Nebraska Man Sentenced for Passing and Uttering a Counterfeit Check of a Political SubdivisionRead the Press Release
United States Attorney Joe Kelly announced that Joseph M. Calhoun, age 34, was sentenced today in federal court in Omaha, Nebraska, for one count of Passing and Uttering a Counterfeit Check of a Political Subdivision. The Honorable Robert F. Rossiter, Jr. sentenced Calhoun to five months’ imprisonment. There is no parole in the federal system. After completing his term of imprisonment, Calhoun will begin a three-year term of supervised release. Calhoun must pay $14,346 in restitution.
On January 11, 2018, co-conspirators printed three counterfeit checks payable to Calhoun. The counterfeit checks falsely indicated that they were from the Housing Authority of the City of North Platte. Calhoun traveled to banks in Lincoln and Omaha and cashed the checks. The three counterfeit checks totaled $14,346. After cashing the checks, Calhoun provided the money to the co-conspirators who had printed the checks. The co-conspirators paid Calhoun for cashing the counterfeit checks. In cashing the counterfeit checks, Calhoun intentionally defrauded the First National Bank and Trust of North Platte Nebraska.
The case was investigated by the Omaha Police Department.
Nashville Man Convicted of Distributing More Than 50 Grams of MethamphetamineRead the Press Release
NASHVILLE, Tenn. – February 22, 2019 – Travis Lamont Suggs, 43, of Nashville, Tennessee, was convicted yesterday, after a three-day trial in U.S. District Court, of distributing more than 50 grams of methamphetamine, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
According to evidence and testimony at trial, in March 2018, Suggs communicated with a cooperating individual (CI) about selling methamphetamine. During the course of several days, Suggs and the CI exchanged several text messages and ultimately agreed on the quantity, price and meeting place for the exchange. On March 21, 2018, Suggs met the CI at the Park-and-Ride lot near Interstate 24, in Clarksville, Tennessee. As the deal was being consummated, agents from the Tennessee Bureau of Investigation; DEA; and detectives from the Clarksville Police Department moved to arrest Suggs, at which time he jumped from his rental car and fled on foot. The officers chased and apprehended Suggs and found approximately $3,100 in his pocket and more than one-half pound of methamphetamine in his car.
Suggs faces a mandatory minimum sentence of 10 years in prison when he is sentenced later this year by U.S. District Court Judge William L. Campbell, Jr.
This case was investigated by the DEA; the Tennessee Bureau of Investigation; and the Clarksville Police Department. Assistant U.S. Attorneys Miller Bushong, Juliet Aldridge and Phillip Wehby prosecuted the case.
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Mission Man Charged with Failure to AppearRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Failure to Appear.
William J. Waukechon, age 19, was indicted on February 13, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 21, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
On June 12, 2018, Waukechon was indicted for multiple offenses, including Using and Carrying a Firearm During and in Relation to Crime of Violence. He made his initial appearance on that Indictment on August 13, 2018, and was subsequently released pending trial. The Indictment alleges that on January 22, 2019, Waukechon failed to appear for a scheduled hearing.
The charge is merely an accusation and Waukechon is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Waukechon was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Miller Man Charged with Being a Drug User in Possession of FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Miller, South Dakota, man has been indicted by a federal grand jury for Prohibited Person in Possession of a Firearm.
Johnathan Taylor, age 26, was indicted on February 13, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 22, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between December 1, 2018, and December 12, 2018, Taylor, an unlawful user of and addicted to marijuana, had multiple firearms in his possession. It is a federal felony for any person to possess a firearm while regularly using, or addicted to, illegal drugs.
The charge is merely an accusation and Taylor is presumed innocent until and unless proven guilty.
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.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Taylor was released on conditions pending trial. A trial date has not been set.
Mequon Accountant Sentenced for Tax SchemeRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that Randy D. Usow (age 63) of Mequon, Wisconsin, was sentenced in federal court for stealing more than $800,000 from the federal government by filing false tax returns in the name of one of his clients and for using the identity of that client to help commit his theft.
U.S. District Judge Pamela Pepper sentenced Usow to 30 months in prison, to be followed by three years of supervised release, and ordered him to pay more than $600,000 in restitution.
Usow, who operated an accounting business in Mequon known as Randy Usow Accounting, Inc., prepared and filed state and federal tax returns for third parties. The charges against Usow are based on his preparing and filing of false tax returns for one of his clients and his wife in which Usow fraudulently claimed refunds the clients were not entitled to and then diverting the fraudulent refunds to himself.
To conceal his activity, Usow provided clients with a different version of the tax returns that reflected the correct refund to which the clients were entitled.
As part of his scheme, Usow opened a bank account in the name of his client without the client’s knowledge or consent. Usow then directed the IRS to send a fraudulent refund to this account. After receiving the refund, Usow transferred a portion of the refund to a second bank account he had opened in the name “US Government, LLC.” Usow then used this account to pay the clients the smaller refund the clients were expecting.
During the period from April 2011 through May 2015, Usow filed at least four false federal income tax returns, fraudulently seeking more than $800,000 in federal income tax refunds and diverted those funds to himself.
This matter was investigated by the Criminal investigation Division of the Internal Revenue and was prosecuted by Assistant United States Attorney Matthew L. Jacobs.
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Man Sentenced to Prison for Causing Opioid Overdose DeathsRead the Press Release
ALEXANDRIA, Va. – A Canadian man living in Leesburg was sentenced today to 21 years in prison for conspiring to distribute heroin and fentanyl that caused two deaths and one non-fatal overdose in 2016.
“Curry’s distribution of heroin and fentanyl in Leesburg carried grave consequences, causing at least three overdoses, including two overdose deaths,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The investigation and prosecution of opioid-related crimes continues to be a top priority for the Eastern District, and we remain steadfast in our pursuit of those who spread this poison in our communities.”
According to court documents, Joseph Riley Curry, 29, obtained heroin and fentanyl from sources of supply that he distributed to customers in Loudoun County. Drugs that Curry distributed killed two people in March 2016, and caused a third individual to experience an overdose that required medical intervention. In August 2017, Curry was arrested on a state felony distribution charge. While in custody, Curry ordered another individual to destroy evidence he thought might be used against him in a possible federal prosecution.
This matter was investigated by the Leesburg Police Department and the Washington Field Office’s Safe Streets/HIDTA Task Force – Northern Virginia which is composed of FBI Agents, and Task Force Officers from the Fairfax County, Loudoun County, Leesburg, Prince William County Police Departments, HSI, ATF, with assistance from the DEA Mid-Atlantic Regional Laboratory. This matter was brought to the attention of the task force by the Leesburg Police Department.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, Michael L. Chapman, Loudoun County Sheriff, and Gregory C. Brown, Leesburg Chief of Police, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney David A. Peters prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-396.
Man Indicted After Phishing Email Duped Crowley ISD Out of $2 MillionRead the Press Release
A Florida man has been formally indicted for his role in a scheme to steal money from Crowley Independent School District (ISD) in Crowley, Texas, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
A federal grand jury indicted Donald Howard Conkright, 61, on two counts of wire fraud after a phishing email duped the district into sending nearly $2 million to his personal bank account.
According to the indictment, in October 2018, an email was sent to Crowley ISD’s Director of Accounting, falsely claiming to contain updated banking information for a construction company with which Crowley ISD did business. In reality, the information was for Mr. Conkright’s personal bank account.
Relying on the false information provided in the email, Crowley ISD sent two wire payments, totaling $1,995,715.52, to Mr. Conkright’s account. Mr. Conkright used those funds to purchase a luxury vehicle and wrist watches, execute wire transfers, and make cash withdrawals.
“Unfortunately, these sorts of spear-phishing email attacks have become all-too-common – and perpetrators are targeting not just individuals, but corporations and public institutions as well,” said Nealy Cox. “We cannot allow bad actors to divert precious school resources away from educating our children.”
“We urge constant vigilance on email, and pledge to continue to partner with the FBI to identify perpetrators and bring them to justice,” she added.
An indictment is merely an allegation of wrongdoing, not evidence. Mr. Conkright is presumed innocent until proven guilty in a court of law.
The Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Robert Boudreau is prosecuting the case.
Man Charged with Unlawful Possession of Identification DocumentsRead the Press Release
LEXINGTON, Ky. – Mikhy Farrera-Brochez, of Winchester, Kentucky, was charged via criminal complaint today with the unlawful transfer of stolen identification documents and possession with intent to distribute these documents in violation of federal law.
The criminal complaint alleges that Farrera-Borchez illegally possessed and intended to distribute data containing sensitive medical and other identifying information. While living in the Eastern District of Kentucky, Farrera-Brochez sent links to the data from his e-mail account to several news outlets. He also sent e-mails to several government officials in Singapore containing links to the data.
Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation, jointly announce this criminal complaint. The investigation preceding the complaint was conducted by the Federal Bureau of Investigation.
The Defendant’s next court appearance is currently scheduled for Wednesday, February 27, at 11:00am, in Lexington.
The charges and allegations contained in the complaint are merely accusations. The Defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
Madison Man Charged with Armed RobberyRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced today the unsealing of an indictment charging a Madison man with robbing a Madison business at gunpoint. Christian Killian, 33, was charged in an indictment returned yesterday by a grand jury sitting in Madison.
The indictment alleges that Killian robbed the Pizza Hut on South Park Street in Madison on January 29, 2019, and that he displayed a firearm to a Pizza Hut employee during the robbery. The indictment also charges Killian with possessing a firearm during this crime of violence.
Killian was arrested late yesterday afternoon in Madison by Madison Police and the Dane County Sheriff’s Office. He made an initial appearance in U.S. District Court in Madison today, and was detained in custody pending a detention hearing. The date for the detention hearing has not been set.
If convicted, Killian faces a maximum penalty of 20 years in federal prison on the robbery charge, and a mandatory minimum penalty of five years on the firearm charge. Federal law requires that a penalty imposed on the firearm charge be served consecutive to any penalty imposed on the robbery charge.
The charges against Killian are the result of an investigation by the Madison Police Department and Dane County Sheriff’s Office. The prosecution of this case is being handled by Assistant U.S. Attorney Rita M. Rumbelow.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Lewiston Woman Pleads Guilty to Theft of Government Funds from SNAP, MaineCare, and Social SecurityRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Sherry Awadjie, 45, of Lewiston, Maine, pleaded guilty yesterday in U.S. District Court to theft of funds from the Supplemental Nutrition Assistance Program (SNAP), MaineCare, and the Social Security Administration (SSA).
Court documents show that from November 2015 until May 2017, Awadjie received public assistance benefits from SNAP, MaineCare, and the SSA because she claimed to be disabled and not earning any income. In fact, from at least November 2015, Awadjie was gainfully employed and earning income, but failed to inform any of the benefit programs. On periodic reports that she was required to submit to receive the benefits, she failed to disclose her employment or income. She also concealed her employment by arranging with her employer to be paid “under the table” and later, under the name of another person. If she had disclosed her employment and income, she would not have been eligible for the benefits she received, including $3,492 in SNAP benefits, $1,654 in MaineCare benefits, and $15,072 in Social Security benefits.
Awadjie faces up to ten years in prison and a $250,000 fine. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General; the Department of Homeland Security, U.S. Immigration and Customs Enforcement; the SSA, Office of the Inspector General, and the Maine Department of Health and Human Services, Fraud Investigation and Recovery Unit.
Lehigh Valley Technologies, Inc. to Pay $4 Million to Resolve False Claims Act Liability for Scheme to Avoid FDA New Drug Application FeeRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced today that Lehigh Valley Technologies, Inc. (“LVT”) agreed to a $4 million settlement of allegations under the False Claims Act that it designed a scheme to avoid paying fees associated with new drug applications to the United States Food and Drug Administration (“FDA”). LVT is a pharmaceutical company engaged in the development and commercialization of certain human drug products that is located in Allentown, Pennsylvania.
The FDA regulates the approval of new drugs. A company seeking such approval must submit and receive FDA approval of a new drug application (“NDA”) before the drug may be marketed or sold in the United States. The NDA application is the vehicle through which drug sponsors formally propose that the FDA approve a new drug for sale and marketing.
Congress created the Prescription Drug User Fee Act (“PDUFA”) in 1992 that authorizes and requires the FDA to collect a “prescription drug user fee” or “application fee” from companies that submit an NDA. PDUFA gives the FDA a revenue source to fund the new drug approval process.
Under 21 U.S.C. § 379h(d)(1)(C), the FDA will grant a waiver of the fee to a small business applicant submitting its first application. In making that determination, the FDA must consider “any affiliate of the applicant,” including large businesses or businesses that have already received the fee waiver. One significant purpose of the fee waiver is to incentivize and level the playing field for small businesses that submit an NDA. Limiting the waiver to first-time applicants allows a new, small business to enter the industry without the significant costs to entry that the NDA fee would otherwise impose.
Here, LVT had previously received a fee waiver in 2010 for its Oxycodone Hydrochloride NDA. Because it received that fee waiver, LVT was ineligible to receive another such fee waiver. LVT subsequently desired to submit two NDAs relating to potassium chloride for oral solution. Had LVT submitted the NDAs in its own name, the FDA would have required it to pay fees totaling over $2 million.
Knowing that it was ineligible, LVT allegedly developed a scheme with two companies to avoid the fees. Under the terms of the agreements, LVT paid the companies to submit NDAs for potassium chloride for oral solution in their own name. LVT’s payment to the companies was contingent upon the FDA granting waivers from the prescription drug user fee. LVT prepared and controlled all of the submissions that the companies made to the FDA relating to the NDA approval. Neither LVT nor the companies disclosed to the government the agreements despite the government’s request for such information. Not knowing of the agreements, the FDA granted fee waivers and approved both NDAs.
“As alleged, the sole purpose of the arrangement was for those companies to serve as a front and allow LVT to avoid the FDA fees that the FDA otherwise would have required it to pay,” said U.S. Attorney William M. McSwain. “The arrangement was illegal. Like we did today, we will hold companies accountable that scheme to avoid the fees that enable the FDA to carry out its vitally important drug approval process.”
“The FDA laws and accompanying regulations for funding drug approvals are designed, in part, to encourage companies, even small businesses, to create new drugs,” said Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Field Office. “When companies attempt to game the system to avoid paying these critical fees, we will bring them to justice.”
This case was investigated by FDA’s Office of Criminal Investigations. For the U.S. Attorney’s Office, the investigation and settlement were handled by Civil Chief Gregory B. David, Auditor Denis Cooke, and former extern Bianca A. Valcarce.
Leader of Far Rockaway Drug Organization Sentenced to More Than 22 Years’ ImprisonmentRead the Press Release
Earlier today, Jose Rodriguez was sentenced by United States District Judge Eric N. Vitaliano to 272 months’ imprisonment for leading a Far Rockaway-based drug trafficking organization that distributed more than a kilogram of heroin, quantities of crack and powder cocaine and marijuana, and sold more than a dozen firearms, including two assault rifles. Rodriguez pleaded guilty on January 20, 2017 to conspiring to distribute narcotics and using and brandishing a firearm in furtherance of a narcotics distribution conspiracy.
Rodriguez is the fifth defendant to be sentenced in this case and a related case. In November 2017, Jose Perez was sentenced to 84 months’ imprisonment; in February 2018, Grace Jaen was sentenced to 33 months’ imprisonment; in December 2018, Jermaine Stephenson was sentenced to 72 months’ imprisonment; and in January 2019, Johnathan Johnson was sentenced to 87 months’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), John B. Devito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Division (ATF), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Rodriguez’s drug organization endangered the residents of Far Rockaway, not only by distributing highly addictive drugs and guns throughout the community, but also using threats of gun violence to operate the drug business,” stated United States Attorney Donoghue. “This Office, along with our law enforcement partners, will continue to relentlessly investigate and prosecute to the fullest extent of the law those who threaten the safety of our communities.”
“The frustration and fear felt in communities plagued by drug dealers and criminal organizations protecting their turf must be exhausting for people just trying to live their lives,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI’s New York Metro Safe Streets Task Force, along with our law enforcement partners, understands one of the most powerful ways to address the problem is going after the leadership of these groups. We work day in and day out with the goal of making an impact in places where people may not feel much hope.”
“The Rodriguez organization was responsible for distributing significant amounts of illegal narcotics and guns within the community. Members of this organization utilized illegal guns to terrorize the community in order to maintain control over their lucrative drug turf,” stated ATF Special Agent-in-Charge Devito. “This case is yet another example of how the men and woman of ATF work in a collaborative manner with all of our law enforcement partners to disrupt and dismantle violent criminal organizations. I would like to thank the Unites States Attorney’s Office for their work in prosecuting this case.”
“This is another great example of how the NYPD, in close partnership with our law enforcement colleagues, precisely hones in on the worst criminals in New York City and sees their cases through to appropriate and meaningful prison sentences,” stated NYPD Commissioner O’Neill. “Anyone who illegally deals in narcotics or firearms can fully expect the nation’s best investigators to be relentless in our mission to make every neighborhood safer.”
Rodriguez’s drug organization bought distribution quantities of heroin, and packaged it in “sleeves,” each containing 100 individual bags of heroin, and in “bundles,” each containing 10 individual bags of heroin, for resale by mid-level drug dealers to users. In a recorded conversation, Rodriguez admitted earning $10,000 to $20,000 per week selling drugs.
Rodriguez and his co-conspirators sold and used firearms in furtherance of their drug trafficking activities. During the investigation, Rodriguez was intercepted ordering firearms from co-conspirator Jonathan Johnson, who acquired them in North Carolina and delivered them to Rodriguez in Far Rockaway. In another intercepted call, a drug customer complained to Rodriguez that co-conspirator Jose Perez threatened him with a gun. Rodriguez replied, “I know he pulled a gun. . . . He did that because you owed me money. That’s why I told him not to shoot you.”
This case was investigated as part of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of illegal drug and weapons trafficking organizations.
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. Attorneys’ Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being prosecuted by Assistant United States Attorneys Kevin Trowel and Mathew S. Miller.
The Defendants:
Jose Rodriguez (also known as “Lazaro”)
Age: 51
Far Rockaway, New YorkJermaine Stephenson (also known as “Half”)
Age: 36
Far Rockaway, New YorkJose Perez
Age: 53
Far Rockaway, New YorkGrace Jaen
Age: 43
Far Rockaway, New YorkE.D.N.Y. Docket No. 15-576-ENV
JOHNATHAN JOHNSON (also known as “Black Keys”)
Age: 38
Rockingham, North CarolinaE.D.N.Y. Docket No. 17-185-ENV
Las Vegas Woman Sentenced and Ordered to Pay Nearly $14 Million in Restitution Related to Small Business Grant Schemes Targeting the Elderly and Committing Health Care FraudRead the Press Release
LAS VEGAS, Nev. – A Las Vegas woman was sentenced yesterday to 34 months in federal prison and ordered to pay more than $13.9 million in restitution to victims in connection with a series of grant fraud schemes, announced U.S. Attorney District Nicholas A. Trutanich for the District of Nevada. The woman’s fraud schemes targeted small business owners, many of them elderly, and a separate Medicare and insurance fraud scheme.
Lorraine Riddiough, aka Lorraine Ann Mader, 70, of Las Vegas, was also sentenced to five years of supervised release by U.S. District Judge Andrew P. Gordon. The sentencing combined four separate cases. Riddiough pleaded guilty last year to four counts of conspiracy to commit mail and wire fraud, two counts of wire fraud, and one count each of health care fraud and theft of government property.
From October 2009 to Spring 2013, Riddiough and others conspired to defraud small business owners by falsely telling the business owners that they qualified for grants, which Riddiough and others promised to secure for the business owners for a fee, usually between $2,500 and $7,000. Riddiough and the others did not provide the promised services or obtain grants for the small business owners. After scamming the initial $2,500 to $7,000 from the victim, Riddiough and the others often told the victims that grants had been approved, but that additional steps and fees were needed to access that grant. More than 25 victims suffered significant financial hardship as a result of the losses from the advance-fee telemarketing scheme. Riddiough herself directly obtained approximately $444,224 from the victims.
Riddiough admitted that after the telemarketing schemes were shut down by law enforcement intervention in 2014, she faked medical conditions, ailments, and injuries related to a minor, low-speed car accident to steal Medicaid benefits and funds from the Government Employees’ Insurance Company (GEICO). She filed a series of false claims related to the traffic accident and made a series of fake medical complaints including her inability to work and drive her car due to her injuries. She received treatment and medication for the non-existent injuries she falsely claimed.
The cases were investigated by the FBI. Assistant U.S. Attorney Dan Cowhig prosecuted the cases.
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Lafayette Man Sentenced to 78 Months in PrisonRead the Press Release
HAMMOND- Richard Seeger, Jr, 55 years old, of Lafayette, Indiana, was sentenced before District Court Senior Judge Joseph S. Van Bokkelen on his plea of guilty to receipt of child pornography, announced U.S. Attorney Kirsch.
Seeger received a sentence of 78 months in prison followed by 20 years of supervised release and ordered to pay $15,000 in restitution.
According to documents filed in this case, Seeger was on probation in Hendricks County, Indiana for holding a mirror under changing stalls at a public pool in order to watch small boys disrobe. He pleaded guilty in May 2016 and received a sentence of probation, which included as part of its terms that he not possess child pornography. In July 2017, law enforcement officials found Seeger in possession of child pornography in multiple formats: print magazines, videotapes, photographs, and digital downloaded images of minors engaged in sex acts. Seeger possessed over 1,000 images of such conduct.
This case was investigated by the FBI and was handled by Assistant United States Attorney Maria N. Lerner.
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Jury Returns Guilty Verdict in Bank Robbery TrialRead the Press Release
ALBANY – The first of two co-defendants charged in the armed robbery of an Albany bank was found guilty following a four day trial, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. A citizen jury found Kamilyah Whitlock, 25, of Albany guilty late Thursday afternoon on all charges, Bank Robbery and Brandishing a Firearm. The trial began Monday, February 18, 2019 and was presided by the Honorable Leslie Gardner, U.S. District Judge. A sentencing date has not been scheduled. The penalties for these crimes are a maximum 25 years in prison for Bank Robbery, and a maximum of life in prison for Brandishing a Firearm.
Ms. Whitlock was masked when she robbed The Renasant Bank at 721 N. Westover Blvd., Albany, GA on November 6, 2017 with more than a dozen customers and employees inside, 1:30 p.m. on a Monday. A co-defendant in this case, Shataz Hampton, 25, of Albany, is charged with one count of Bank Robbery and one count of Brandishing a Firearm. No date has been set for Mr. Hampton’s trial.
“This armed robbery struck fear in the hearts of the people of this community. I want to thank the FBI, Albany Police Department and other state and local law enforcement for their hard work investigating this matter” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “The people of Southwest Georgia want a safe place to raise their families. This conviction sends a message that law enforcement is committed to providing safe neighborhoods to all of our citizens.”
The case was investigated by the Albany Police Department and the FBI. Assistant U.S. Attorney Leah McEwen is prosecuting the case for the Government.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Jury Finds Stamford Man Guilty of Health Care Fraud ChargesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal jury in New Haven has found KWASI GYAMBIBI, 40, of Stamford, guilty of health care fraud offenses.
A trial before U.S. District Judge Jeffrey A. Meyer began on February 11 and the jury returned its verdict this afternoon.
According to court documents, statements made in court and the evidence presented during the trial, Kwasi Gyambibi worked at UConn-Stamford, and his wife, Kakra Gyambibi, was a physician who worked as a hospitalist at Stamford Hospital. Advantage Pharmacy was a compounding pharmacy located in Hattiesburg, Mississippi. As a compounding pharmacy, Advantage created compound prescription drugs specifically tailored for individual patients who had a medical need for a compound drug, by mixing together individual ingredients in the exact strength and dosage prescribed by the health care provider to meet the unique needs of a patient. One tube of a compound drug cream prepared and dispensed by Advantage Pharmacy typically cost health care benefit programs thousands of dollars, and some individual tubes of cream cost more than $11,000 for a one-month supply. Kwasi Gyambibi acted as, and eventually became, a sales representative for Advantage Pharmacy.
On January 9, 2019, a grand jury in New Haven returned a 19-count indictment alleging that, in 2014 and 2015, Kwasi and Kakra Gyambibi engaged in a scheme to defraud the State of Connecticut Pharmacy Benefit Plan, TRICARE and other health care programs by submitting prescriptions for compound pharmacy medications prepared and dispensed by Advantage Pharmacy. Although the prescriptions sent to Advantage Pharmacy contained Kakra Gyambibi’s signature, Kakra Gyambibi did not treat, examine, or even meet with the patients for whom the prescriptions were written. Based on these false and misleading claims, the victim health care programs paid Advantage Pharmacy for the compound prescription drugs. Advantage Pharmacy, in tum, paid commissions of between 15 percent to 35 percent to sales representatives, including Kwasi Gyambibi’s close cousin, whom Kwasi Gyambibi considered his brother.
It is alleged that Kwasi and Kakra Gyambibi also induced the victim health care programs to pay Advantage Pharmacy more than $292,000 for their own compound prescription drugs.
The investigation has revealed that this scheme resulted in more than $1.5 million in losses to the victim health care programs.
The jury found Kwasi Gyambibi guilty of two counts of health care fraud related to fraudulent prescriptions for compound drugs that were submitted to Advantage Pharmacy in March 2015, and found him not guilty of seven counts of health care fraud. The jury could not reach a verdict on the other 10 counts in the indictment.
Judge Meyer scheduled sentencing for May 28, 2019, at which time Kwasi Gyambibi faces a maximum term of imprisonment of 20 years.
On January 18, 2019, Kakra Gyambibi pleaded guilty to one count of conspiracy to commit healthcare fraud. She also awaits sentencing.
This investigation is being conducted by New Haven Division of the FBI. U.S. Attorney Durham thanked the Office of the Attorney General of the State of Connecticut, the U.S. Attorney’s Office for the Southern District of Mississippi, the U.S. Department of Justice’s Fraud Section, and the Jackson, Mississippi Division of the FBI for their assistance with the investigation.
This case is being prosecuted by Assistant U.S. Attorneys David J. Sheldon and Christopher W. Schmeisser.
Jury Finds Stamford Man Guilty of Federal Cocaine Distribution OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that on February 21, a federal jury in Bridgeport found NORMAN PETERS, also known as “Ski,” 38, of Stamford, guilty of cocaine distribution offenses. The trial before U.S. District Judge Victor A. Bolden began on February 19.
This matter stems from an investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, Stamford Police Department, Norwalk Police Department and Connecticut State Police.
According to court documents and statements made in court, between approximately September 2015 and May 2016, Bobby Gutierrez, also known as “B.O.,” and others, including his brother Wilfredo Gutierrez, conspired to distribute at least 10 kilograms of heroin in Fairfield County. Bobby Gutierrez and others also acquired kilogram quantities of cocaine from sources located in Florida and New York and sold the drug locally.
The evidence at trial demonstrated that, on April 1, 2016, Peters was intercepted over a court-authorized wiretap arranging to purchase 14 grams of cocaine from Gutierrez. Peters was then observed meeting with Gutierrez at B & B Deli in Bridgeport, which was owned by the Gutierrez family and served as a hub for drug dealing. Investigators stopped Peters after he drove from Bridgeport to Stamford. A search of his person revealed approximately 14 grams of cocaine.
The jury found Peters guilty of one count of possession with intent to distribute cocaine, an offense that carries a maximum term of imprisonment of 20 years, and one count of use of a telephone to facilitate a drug trafficking felony, an offense that carries a maximum term of imprisonment of four years. A sentencing date is not scheduled.
On November 21, 2016, Bobby Gutierrez pleaded guilty to one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine and one count of conspiracy to possess with intent to distribute 100 grams or more of heroin. On April 24, 2017, he was sentenced to 160 months of imprisonment and was ordered to forfeit $171,462 in cash that was seized during the investigation.
On March 16. 2017, Wilfredo Gutierrez was sentenced to 180 months of imprisonment.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Elena L. Coronado.
Judge Sentences Final Defendant in Air Force Base Fraud Case; Individuals, Businesses Ordered to Pay Back MillionsRead the Press Release
MACON— The defendant in the center of a scheme to award millions of dollars in military contracts in exchange for illegal kickbacks at Robins Air Force Base was sentenced in federal court Wednesday, announced Charles “Charlie” E. Peeler, U.S. Attorney for the Middle District of Georgia. The Honorable Marc Treadwell sentenced Mark Cundiff, 60, of Macon, to 36 months in prison followed by two years supervised release, and was ordered to pay restitution in the amounts of $110,050 to the Internal Revenue Service (IRS) and $270,000 to the U.S. Treasury. Two co-defendants and businesses previously entered guilty pleas and were sentenced in this case. Co-defendant Raymond F. Williams of Canton, OH, was sentenced in Albany federal court on January 8, 2019 by the Honorable Leslie Gardner to 60 months in prison, 3 years supervised release and restitution in the amount of $870,000 to the U.S. Department of Defense on the charge of Conspiracy to Bribe a Public Official. In addition, two businesses owned by Mr. Williams, US Technology Corporation (UST) and US Technology Aerospace Engineering Corporation (USTAE) were ordered by Judge Gardner to pay $1,500,000 in fines plus $870,000 in restitution apiece on Money Laundering Conspiracy charges. Co-defendant John Christopher Reynolds of Macon, was sentenced in August 2018 by Judge Treadwell to 12 months and a day for Aiding and Abetting the Giving of a Gratuity to a Public Official. There is no parole in the federal system.
Mr. Cundiff was a long-term Department of Defense employee at Robins Air Force Base (RAFB), working from 1982 until his retirement in January 2014. He was responsible for technical engineering support to military aircraft maintenance operations, and part of his official duties was to prepare a Performance Work Statement (PWS) when RAFB was soliciting bidders for new contracts. A PWS is a document that describes the requirements necessary for a bidding company to meet the needs of the US Air Force on a particular job, and is in place to ensure fairness in the federal bidding process, where contracts can be worth tens of millions of dollars. Sometime in 2004 or 2005, Mr. Williams requested that Mr. Cundiff provide inside help with winning contracts. In exchange for cash payments, Mr. Cundiff wrote each PWS so that the contract requirements could only be met by Mr. Williams. Starting in 2011, Mr. Reynolds funneled payments to Mr. Cundiff from Mr. Williams, by submitting fake invoices to Mr. Williams’ company, UST. Mr. Reynolds was hired by UST to provide engineering support for $40,000 a month, but no work was involved in this sub-contract beyond a few small items. At the time, Mr. Cundiff was living in a home owned by Mr. Reynolds. Mr. Reynolds would take the monthly invoice payment from UST, subtract the rental money he used to pay down the mortgage on the property he owned, and give the remaining balance to Mr. Cundiff. In all, Mr. Cundiff would receive amounts of between $2,000 and $8,000 dollars in kickbacks monthly from when the scheme began in 2004 or 2005 until November 2013. Mr. Cundiff retired from RAFB in January 2014. During the course of the conspiracy, Mr. Williams directed payments from UST in the amount of $870,000 to pay bribes to Mr. Cundiff and to reward Mr. Reynolds and others for serving as intermediaries in the payment of brides to Mr. Cundiff. Mr. Williams received benefits from Mr. Cundiff’s efforts amounting to at least $14,450,000.
“Millions of dollars in federal contracts was directed to one company in exchange for cash bribes—this is not the American way,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “It is a gross injustice for all hard-working, rule-abiding people when a few individuals cheat the system for their benefit. It isn’t fair, and government fraud won’t be tolerated by this Office, especially when it impacts our military.”
This case was investigated by the Federal Bureau of Investigation, Air Force Office of Special Investigations, and Department of Defense/Defense Criminal Investigative Service. Assistant United States Attorney Paul C. McCommon, III prosecuted the case for the United States.
Questions concerning this case can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Johnstown Man Pleads Guilty to Possessing and Distributing Crack CocaineRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa. pleaded guilty in federal court in Johnstown to charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Bobby Washington, Jr., 35, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on March 17, 2018, Washington distributed a quantity of cocaine base, and on April 24, 2018, he possessed with intent to distribute 28 grams or more of cocaine base, commonly known as "crack."
Judge Gibson scheduled sentencing for June 5, 2019, at 10 a.m. The law provides for a maximum sentence of 60 years in prison and a fine of $6,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Washington.
Johnstown Man Admits Possessing HeroinRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Shawn R. Kmecak, 37, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on March 15, 2018, Kmecak possessed with the intent to distribute a quantity of heroin.
Judge Gibson scheduled sentencing for June 13, 2019, at 2 p.m. The law provides for a maximum sentence of 20 years in prison and a fine of $1,000,000 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 of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Kmecak.
Italian National Extradited for Cocaine TraffickingRead the Press Release
BOSTON – An Italian national was extradited and made an initial appearance in federal court in Boston yesterday in connection with various drug charges related to trafficking cocaine on board maritime vessels.
Gabriele Biondo, a/k/a El Italiano, was arraigned on one count of conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine on board a vessel subject to the jurisdiction of the United States, and one count of possession with intent to distribute and distribution of five kilograms or more of cocaine on board a vessel subject to the jurisdiction of the United States. Biondo is an Italian national who was extradited to the United States from Spain.
The conspiracy and distribution charges each provide for a sentence of no greater than life in prison, a life term of supervised release and a $10 million fine. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and John Gibbons, U.S. Marshal for the District of Massachusetts, made the announcement. Valuable assistance was provided by the Colombian National Police, the Spanish Guardia Civil, and the Portuguese Air Force. Assistant U.S. Attorney Linda Ricci, Chief of Lelling’s Narcotics and Money Laundering Unit, is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned this week before U.S. Magistrate judges and indictments handed down by the Grand Jury were unsealed. Indictments are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on February 19 was:
DAVID LOPEZ, 41, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Lopez faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release. Lopez is detained. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, FBI, Eastern Montana High Intensity Drug Trafficking Area and Billings Police Department. Pacer case reference. 18-128.
Appearing on February 21 and pleading not guilty was:
GARY DUANE ERVIN, 50, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Ervin faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Ervin is detained. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Pacer case reference. 19-04.
CARLOS ALBERTO JAQUINET, 61, of Billings, on charges of false statement in application for passport. If convicted of the most serious crime, Jaquinet faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Jaquinet was released. The case was investigated by the U.S. Department of State, Diplomatic Security Service. Pacer case reference. 18-137.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on February 19 was:
JAMES DEBERRY, 24, on charges of failure to register as a sexual offender. If convicted of the most serious crime, Deberry faces a maximum 10 years in prison, a $250,000 fine and five years of supervised release. Deberry is detained. The case was investigated by the U.S. Marshals Service. Pacer case reference. 19-02.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Illegal Alien Sentenced to 19 Years in Federal Prison on Cocaine and Firearm ChargesRead the Press Release
Spokane, Washington – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Marcos Ramirez-Mercado, 46, of Yakima, Washington, and Michoacán, Mexico, was sentenced today after having pleaded guilty on September 6, 2018, to a conspiracy to distribute five kilograms or more of cocaine and the possession of a firearm in furtherance of the conspiracy. Senior United States District Judge William Fremming Nielsen sentenced Ramirez-Mercado to a 19-year term of imprisonment, to be followed by a 10-year term of court supervision following his release from prison. Upon his release from prison Ramirez-Mercado will likely be removed from the United States to his native Mexico and not be permitted to return.
According to information disclosed during the court proceedings, Ramirez-Mercado was the leader and organizer of a years-long, wide-ranging drug conspiracy in which whole kilograms of powder cocaine were secreted in boxes of drywall compound and trafficked from Yakima into Spokane. When law enforcement officers arrested Ramirez-Mercado in his car in June 2017, they found three drywall boxes, each of which contained a kilogram of cocaine, four boxes of .223 ammunition, and almost $2,000 in cash. In a secret room in the basement of his house in Yakima, officers recovered almost $550,000 in cash, eight firearms and ammunition, a kilogram of cocaine, and digital scales.
Prior to Ramirez-Mercado’s arrest, the Federal Bureau of Investigation obtained a number of lawful wiretaps during the course of the investigation, which began in 2014, and resulted in indictments being brought against Ramirez-Mercado and 21 other defendants. The wiretaps revealed that Ramirez-Mercado’s organization was trafficking huge amounts of cocaine into and across Eastern Washington, in quantities as high as a kilogram every few weeks, for years. Senior Judge Nielsen noted that the amount of cocaine for which Ramirez-Mercado was actually responsible will never truly be known, but it was certainly far much more than the three kilograms recovered from his car.
At Ramirez-Mercado’s sentencing hearing, several of his family members addressed the Court, describing him as a good man who made a mistake. Judge Nielsen, however, concluded that his years of trafficking large quantities of narcotics were much more than a mistake, and that his conduct was consistent with the lifestyle of a drug dealer. As Judge Nielsen noted, Ramirez-Mercado caused his customers to become addicted to cocaine and then held them captive to their addiction so he could continue to make a profit.
Joseph H. Harrington said, “The sentence imposed today reflects the seriousness of Ramirez-Mercado’s grave criminal conduct. I commend the FBI, the Spokane Sheriff’s Department, Spokane Police Department, and Washington Department of Corrections, along with the United States Customs and Border Protection and the Yakima Police Department Safe Streets Task Force. The cooperation among federal, state, and local law enforcement officers was remarkable. I salute their diligence and tenacity in pursuing the investigation wherever it led.”
Special Agent in Charge Raymond P. Duda of the FBI’s Seattle Field Office, agreed: “The lengthy sentence for Ramirez-Mercado, the leader of this drug trafficking conspiracy, demonstrates the serious consequences for individuals who compromise the safety and wellbeing of communities in Eastern Washington by engaging in illegal drug activity. Those who seek to enrich themselves at the expense of our communities should expect similar consequences. The FBI is particularly thankful for our local, state, and federal law enforcement partners, who were integral in this investigation.”
This case was part of an Organized Crime Drug Enforcement Task Force (“OCDETF”) investigation. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes. This OCDETF investigation was conducted by the FBI Safe Streets Task Force, which includes law enforcement officers with the Spokane Sheriff’s Department, Spokane Police Department, and Washington Department of Corrections. United States Customs and Border Protection and the Yakima Police Department also provided invaluable assistance throughout the investigation. The case was prosecuted by David Herzog, an Assistant United States Attorneys for the Eastern District of Washington.
Husband and Wife Plead Guilty to Bank Robberies in Northern IllinoisRead the Press Release
ROCKFORD — A husband and wife from Crystal Lake have pleaded guilty in federal court to multiple bank robberies in Northern Illinois.
DANIEL R. PLUSHKIS, 27, pleaded guilty today to three counts of bank robbery, and he admitted as part of a plea agreement that he committed two other bank robberies. His wife, JESSICA E. PLUSHKIS, 29, pleaded guilty on Feb. 11, 2019, to two counts of aiding and abetting a bank robbery.
The guilty pleas were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The Cary, Huntley, Arlington Heights, Streamwood, Algonquin, and Crystal Lake Police Departments assisted in the investigation. The government is represented by Assistant U.S. Attorney Talia Bucci.
As stated in Daniel Plushkis’s written plea agreement, on Dec. 1, 2017, Daniel Plushkis robbed the Chase Bank, 300 Northwest Hwy. in Cary. Daniel Plushkis entered the bank wearing a long fake beard, a hooded black jacket, a camouflage hat, and sunglasses. He handed a teller an envelope with a note on it stating that he had a gun, and he began counting down from 30. The teller put $5,870 from the bank’s cash drawer into the envelope, and Daniel Plushkis fled from the bank with the cash.
Daniel also admitted that he robbed the TCF Bank, 13200 Village Green Dr. in Huntley, on Dec. 10, 2017, and the TCF Bank, 1860 S. Arlington Heights Rd., in Arlington Heights, on Dec. 13, 2017. In those robberies, Daniel Plushkis wore a disguise including a long fake beard and sunglasses, handed the teller an envelope with a note taped to it, and began a countdown. Daniel Plushkis stole $237 during the Dec. 10, 2017, robbery in Huntley, and $2,676 during the Dec. 13, 2017, robbery in Arlington Heights. As part of Daniel Plushkis’s written plea agreement, he also admitted that he robbed the TCF Bank, 217 E. Irving Park Rd. in Streamwood, on Dec. 20, 2017. Daniel Plushkis wore a disguise including a long fake beard, sunglasses, and a hooded black jacket. He handed the teller an envelope with a note taped to it and verbally demanded that the teller give him the money that the teller was in the process of counting. The teller handed over $500, and Daniel Plushkis fled from the bank with the cash.
As part of Jessica Plushkis’s written plea agreement, she admitted that she aided and abetted her husband in committing the Dec. 13, 2017, bank robbery in Arlington Heights. Jessica Plushkis admitted that she purchased a fake beard, black-colored hair spray, and black face paint for Daniel Plushkis a few hours before the Dec. 13, 2017, robbery, knowing that Daniel Plushkis intended to use those items as part of his disguise for the robbery.
As part of both plea agreements, the couple also admitted that Daniel Plushkis robbed the TCF Bank, 103 S. Randall Rd. in Algonquin, on Dec. 23, 2017, and that Jessica aided and abetted him in committing that robbery. After Daniel Plushkis handed the teller a note stating that he had a gun, the teller put $4,350 from the bank drawer into an envelope. Daniel Plushkis fled the premises with the envelope and cash. Daniel Plushkis headed toward the vehicle where his wife was waiting for him, but he was apprehended by a private citizen in the parking lot before making it back to the vehicle. Jessica Plushkis admitted that, after her husband was apprehended, she quickly drove out of the parking lot to avoid being apprehended by law enforcement, but was quickly pulled over by a law enforcement officer as she exited the parking lot. Law enforcement officers at the scene recovered the money Daniel Plushkis stole from the bank.
Each of the counts to which Daniel Plushkis and Jessica Plushkis pleaded guilty carries a maximum sentence of 20 years’ imprisonment, a term of supervised release of up to three years following imprisonment, and a fine of up to $250,000. Each defendant’s sentence will be determined by the United States District Court, guided by the Sentencing Guidelines. U.S. District Judge Frederick J. Kapala set sentencing for Jessica Plushkis on May 28, 2019, at 2:30 p.m., and for Daniel Plushkis on June 25, 2019, at 2:00 p.m.
Guatemalan National Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Guatemalan national pleaded guilty yesterday in federal court in Boston to illegally reentering the United States after deportation.
Octaviano Boche, 36, pleaded guilty to one count of illegal reentry of a previously deported alien. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for May 15, 2019. Boche is currently being detained in state custody on an unrelated matter.
In September 2018, a warrant was issued by the Framingham District Court charging Boche with rape of a child. On Sept. 7, 2018, U.S. Customs and Border Protection located and arrested Boche at the Fort Worth Airport in Texas as he attempted to board a flight to Guatemala. Boche was transported to Massachusetts where he is currently awaiting trial. Between 2004 and 2016, Boche was deported seven times.
The charge of illegal reentry carries a sentence of no greater than two years in prison, one year of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; Judson W. Murdoch II, Director of Field Office Operations, Customs and Border Protection, Houston; and Middlesex County District Attorney Marian T. Ryan made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case
Great Falls woman who distributed meth throughout central Montana sentenced to prisonRead the Press Release
GREAT FALLS—A federal judge on Thursday sentenced Donny Lynn Ferguson, of Great Falls, to 10 years and eight months in prison and five years of supervised release for conviction on distributing large quantities of meth in central Montana and on two Indian reservations, U.S. Attorney Kurt Alme said.
Ferguson, 39, pleaded guilty in September to possession with intent to distribute meth and possession of a firearm in furtherance of a drug trafficking crime.
U.S. District Judge Brian Morris presided.
Prosecutors said evidence would show that since at least November 2016, law enforcement received information that Ferguson was dealing multi-pound quantities of meth throughout the state but that her primary area was Great Falls, Lewistown, Havre and the Rocky Boy’s and Fort Belknap Indian Reservations. Sources also confirmed that Ferguson typically carried firearms for her protection in her drug trade.
In April 2018, law enforcement seized more than 2.8 pounds of meth from a Lewistown home and learned that Ferguson had previously supplied meth to the occupants.
Two months later, agents stopped Ferguson outside of Polson and found her in possession of about two pounds of meth, small amounts of heroin and cocaine, a firearm and ammunition, drug paraphernalia and more than $6,000 cash. Two pounds of meth is the equivalent of about 7,248 doses.
Assistant U.S. Attorney Jessica Betley prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the FBI.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. -- A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments this week. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Three Charged with Robbing Dane County Businesses
In three separate indictments, three individuals are charged with robbing various Dane County businesses in December 2018 and January 2019. The indictments allege that some of the robberies were armed robberies.
Marjory Dingwall, 39, Madison, Wisconsin, is charged with robbing the Stop N’ Go gas station on Monona Drive in Madison on January 6, 2019; with robbing Orange Tree Imports on Monroe Street in Madison on January 7, 2019; and with robbing the Mobil gas station on Lake Road in Windsor, Wisconsin on January 8, 2019. The indictment also charges her with brandishing a firearm during each robbery.
Aaron Stanley, 34, Madison, is charged with robbing the Speedway gas station on Monona Drive in Monona, Wisconsin on December 24, 2018; with robbing the Mobil gas station on Cottage Grove Road in Madison on December 30, 2018; with robbing the Speedway gas station on Lake Road in Windsor on January 6, 2019; and with robbing Papa Murphy’s Pizza on East Broadway in Monona on January 15, 2019. The indictment also charges him with brandishing a firearm during the December 24, 2018 robbery of the Speedway gas station.
Eric Clay, 28, Madison, is charged with robbing a Union Cab in Madison on December 14, 2018; with robbing the BP Stop-N-Go on Tower Drive in Sun Prairie, Wisconsin on December 14, 2018; and with robbing a Green Cab in Madison on December 15, 2018. The indictment also charges him with brandishing a firearm during the December 15 robbery of a Green Cab.
If convicted, the defendants face a maximum penalty of 20 years in federal prison on each robbery count. The charge of brandishing a firearm during a crime of violence carries a mandatory minimum penalty of seven years in federal prison. Federal law requires that any penalty imposed for the charge of brandishing a firearm be served consecutive to any sentence imposed on the robbery charges.
The charges against Dingwall and Stanley are the result of investigations by the Madison Police Department, Monona Police Department, and Dane County Sheriff’s Office. The charges against Clay are the result of an investigation by the Madison and Sun Prairie Police Departments. The prosecutions of Dingwall and Stanley are being handled by Assistant U.S. Attorney Rita M. Rumbelow. The prosecution of Clay is being handled by Special Assistant U.S. Attorney Chadwick Elgersma and Assistant U.S. Attorney Rumbelow.
McFarland Man Charged with Bank Robberies
Jason J. Yapp, 47, McFarland, Wisconsin, is charged with one count of bank robbery and one count of attempted bank robbery. The indictment alleges that he robbed the Associated Bank on West Broadway in Madison on September 17, 2018, and attempted to rob the Associated Bank on Cottage Grove Road in Madison on September 21, 2018.
If convicted, Yapp face 20 years in federal prison on each charge. The charges against him are the result of investigations by the Madison Police Department and Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant U.S. Attorney Corey Stephan.
The indictments against Dingwall, Stanley, Clay, and Yapp have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address violent crime.
Madison Man Charged with Production of Child Pornography and Lying to Federal Agent
Bryan Rogers, 31, Madison, Wisconsin, is charged with persuading a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. The indictment alleges that Rogers did so between December 24, 2018 and January 13, 2019, and that the visual depiction was transported in interstate commerce from Tennessee to Wisconsin. Rogers is also charged with lying to an FBI agent during an interview.
Rogers was previously charged with the production of child pornography offense in a complaint filed in U.S. District Court for the Western District of Wisconsin on February 4, 2019. Federal law requires that felony offenses be charged by an indictment returned by a grand jury within 30 days of the date a criminal complaint is filed.
If convicted, Rogers faces a mandatory minimum penalty of 15 years and a maximum of 30 years in federal prison on the child pornography charge, and five years in prison on the charge of lying to investigators. The charges against him are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation, Federal Bureau of Investigation, Madison Police Department, Dane County Sheriff’s Office, and Monroe County (Tennessee) Sheriff’s Office. The prosecution of this case is being handled by Assistant U.S. Attorney Julie Pfluger.
Minnesota Man Charged with Drug Crime
Pheng Yang, 29, St. Paul, Minnesota, is charged with possessing 500 grams or more of methamphetamine with intent to distribute. The indictment alleges that he possessed the methamphetamine on February 4, 2019.
If convicted, Yang faces a mandatory minimum penalty of 10 years and a maximum of life in federal prison. The charge against him is the result of an investigation by the Drug Enforcement Administration in Wisconsin and Minnesota, the West Central Drug Task Force, Eau Claire Sheriff’s Office, Eau Claire Police Department, Buffalo County Sheriff’s Office, and Wisconsin Department of Justice Division of Criminal Investigation. The prosecution of this case is being handled by Assistant U.S. Attorney Meredith Duchemin.
McFarland Woman Charged with Attempting to Possess Fentanyl
Elizabeth Cirves, 55, McFarland, Wisconsin is charged with two counts of attempting to possess fentanyl with intent to distribute. The indictment alleges that she attempted to possess fentanyl on January 10 and 14, 2019.
If convicted, Cirves faces a maximum penalty of 20 years in federal prison on each count. The charges against her are the result of an investigation by the U.S. Postal Inspection Service. The prosecution of this case is being handled by Assistant U.S. Attorney Aaron Wegner.
Wausau Woman Charged with Making False Statements
Marjean Seehafer, 43, Wausau, Wisconsin is charged with two counts of making false statements for use in determining rights to payment under the Social Security Act. The indictment alleges that on November 20, 2017 and July 27, 2018, she falsely stated that she had not worked for private businesses in 2016 or 2017 while she was receiving Social Security disability benefits.
If convicted, Seehafer faces a maximum penalty of five years in federal prison on each count. The charges against her are the result of an investigation by the Social Security Administration, Office of Inspector General. The prosecution of this case is being handled by Assistant U.S. Attorney Robert Anderson.
Gates Man Pleads Guilty to Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Sean Blackwell, 34, of Gates, NY, pleaded guilty to possession of child pornography before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison, lifetime supervised release, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that Blackwell was discovered actively trading child pornography from an apartment in Gates during an operation conducted by the FBI. Special Agents executed a search warrant at a residence that the defendant occupied during the period in question and seized digital items belonging to Blackwell. A forensic examination determined that the items contained multiple images and videos of child pornography, including images that depicted the sexual abuse of prepubescent minors.
Sentencing is scheduled for May 22, 2019, before Judge Wolford.
The plea is the result of an investigation by the Federal Bureau of Investigation, Rochester Office, under the direction of Special Agent in Charge Gary Loeffert.
Four Additional People Charged in Conspiracy to Distribute over Five Kilograms of CocaineRead the Press Release
NEWARK, N.J. – Four additional people have been charged for their respective roles in a conspiracy to distribute more than five kilograms of cocaine, U.S. Attorney Craig Carpenito announced today.
Victoria Irizarry, 30, of Fort Lee, New Jersey; Marisol Vargas, 34, of Rowland Heights, California; Daniel Estrella, 28, of Lyndhurst, New Jersey; and Cohen Easton, 46, a/k/a “Power,” of Paterson, New Jersey, are charged by complaint with one count of conspiracy to possess with intent to distribute approximately five kilograms or more of suspected cocaine.
Vargas and Irizarry appeared this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court and were released on bail. Easton appeared Feb. 21, 2019, before Judge Mannion and was detained. Estrella remains at large. Previously, Derik Sanchez, 32, of Fort Lee, New Jersey, and James Ferrer, 34, of Belleville, New Jersey were charged in related federal conspiracy complaints.
According to documents filed in this case and statements made in court:
In September and October 2018, Vargas, who allegedly maintained a narcotics stash house in California, brokered the shipment of boxes of cocaine to Sanchez, Irizarry, and others in New Jersey using the U.S. Postal Service. The cocaine, which was intercepted by law enforcement, was to be sold in New Jersey and New York by Sanchez and other members of the conspiracy, including Ferrer, Easton, and Estrella.
Each defendant faces a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine.
U.S. Attorney Craig Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, New Jersey Division, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Ari Fontecchio of the Economic Crimes Unit and Senior Trial Counsel Jamie Hoxie of the OCDETF/Narcotics Unit in Newark.
Fortine woman sentenced to prison for embezzling from Eureka community programsRead the Press Release
MISSOULA—Fortine resident Roseann Robyn Kipp, who admitted stealing from two Eureka community programs, was sentenced today to eight months in prison, three years of supervised release and ordered to pay $48,431 restitution, U.S. Attorney Kurt Alme said.
Kipp, 40, pleaded guilty in November to wire fraud.
U.S. District Judge Donald W. Molloy presided.
Prosecutors said evidence showed that for about two years, Kipp embezzled funds from the Eureka Rural Development Partners (ERDP), which promoted and assisted businesses, and from the Area Chamber of Commerce, which put on an annual event called the “Rendezvous.” Kipp was an administrative assistant who provided bookkeeping services for ERDP. She also was the treasurer for the Chamber of Commerce and collected funds in a PayPal account for the Rendezvous.
Kipp was fired on Nov. 25, 2015 after she admitted to embezzling funds from the ERDP MasterCard account. The amount stolen was about $45,909. Kipp also stole about $2,501 from the Chamber’s PayPal account for the Rendezvous.
In a January 2018 interview with law enforcement, Kipp admitted to embezzling from ERDP.
Assistant U.S. Attorney Ryan Weldon prosecuted the case, which was investigated by the FBI.
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Former Turtle Creek Man Sentenced to Nearly 4 Years in Prison for Possessing Two Firearms while on Parole for Homicide as part of Project Safe NeighborhoodsRead the Press Release
PITTSBURGH, Pa – A former resident of Turtle Creek, PA has been sentenced in federal court to three years and 10 months in prison, to be followed by three years of supervised release, on his convictions on a federal firearms charge, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Hashim Rashad, age 28. Rashad was detained after his initial appearance and will remain detained as he begins to serve his sentence. Rashad was on state parole for manslaughter when he committed the offense he was sentenced for today.
Accordingly to information presented to the court, on October 18, 2017, City of Pittsburgh Police executed a search warrant at a home on Larimer Avenue in Turtle Creek, PA while Hashim Rashad was detained in the house. Police recovered an EZ9 9mm handgun with an obliterated serial number from the couch of the location. Police then recovered a Bryco Arms Jennings J-22, 22LR handgun, inside a purse in the living room of the house. The Bryco Arms Jennings 22 handgun was previously reported stolen. Prior, to possessing these firearms, Rashad was previously convicted of voluntary manslaughter, a crime punishable by more than one year in jail.
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.
Assistant United States Attorney Timothy Lanni is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Agency and the Pittsburgh Bureau of Police – Narcotics and Vice Unit conducted the investigation leading to the sentence in this case.