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15 February 2019
Durham Resident Sentenced for Conspiracy Targeting North Carolina MedicaidRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge Louise W. Flanagan sentenced TAMARA PERRY MCCAFFITY, 57, of Durham, North Carolina to 46 months imprisonment, followed by 3 years of supervised release. MCCAFFITY was also ordered to forfeit various real estate properties and to pay restitution in the amount of $523,783.00 to North Carolina Medicaid, among other terms of the judgment.
MCCAFFITY was named in a Criminal Information filed on July 17, 2018 which charged her with conspiracy to commit health care fraud. On October 19, 2018, MCCAFFITY pled guilty to the charge.
According to the charging instrument, statements made in open court, and other public information, MCCAFFITY operated two mental health businesses in North Carolina (Dreamworks II and Prominence Consulting & Therapeutic Services) that were used to submit over $900,000 in fraudulent billings to Medicaid over a three-year period. As part of the conspiracy, the billings submitted by MCCAFFITY’s companies claimed reimbursement for mental health services that were never rendered. For example, the Dreamworks II submissions included claims in which the rendering clinician supposedly conducted one-hour counseling sessions for more than 24 clients in a single day. Both Dreamworks II and Prominence Consulting also used stolen Medicaid beneficiary information and/or clinician information. Prominence Consulting, for instance, was a shell company registered to an empty office suite in Raleigh, but it submitted thousands of false claims seeking reimbursement for services purportedly rendered on behalf of Medicaid beneficiaries. In truth, no services were ever provided by Prominence, and the Medicaid beneficiary and clinician information listed on the claims was fraudulently obtained and used in furtherance of the scheme.
Mr. Higdon commented: “The defendant engaged in an elaborate scheme to defraud the taxpayers of this country and we are very pleased with the sentence the court imposed. Prorection of government programs designed to help the most vulnaerable among us is a key priority of this office and of the United States Justice Department.”
“When people defraud the Medicaid program, they’re cheating taxpayers and taking away resources from people who need healthcare,” said Attorney General Josh Stein. “My office will continue to hold people responsible for these fraudulent practices.”
MCCAFFITY’s co-conspirators included Christopher Leon Brown, who was previously convicted and sentenced by the Court to 40 months in prison.
Investigation of this case was conducted by the Federal Burean of Investigation (FBI) and the North Carolina Department of Justice, Medicaid Investigations Division. Assistant United States Attorney Adam F. Hulbig represented the government.
Dominican National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national was sentenced yesterday in federal court in Boston for illegally reentering the United States after being deported.
Pablo Geraldo Baez Soto, 34, was sentenced by U.S. District Court Judge Indira Talwani to 18 months in prison and one year of supervised release. Baez Soto’s sentence is to be served consecutive to an 18 month sentence he is currently serving for a 2018 state conviction for distribution of heroin, cocaine, and fentanyl. Baez Soto will be subject to deportation upon completion of his sentences. In November 2018, Baez Soto pleaded guilty to one count of illegal reentry of a deported alien.
Baez-Soto was initially encountered by immigration officials in 2010, determined to be illegally present in the United States, and was deported to the Dominican Republic. Sometime thereafter, Baez-Soto illegally re-entered the United States and was arrested numerous times between 2014 and 2017.
United States Attorney Andrew E. Lelling and Todd Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
District of Nebraska’s U.S. Attorney’s Office Collects $3,978,627.98 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
United States Attorney Joe Kelly announced today that the District of Nebraska collected $3,978,627.98 in criminal and civil actions in Fiscal Year 2018. Of this amount, $1,836,812.43 was collected in criminal actions and $2,141,815.55 was collected in civil actions.
Additionally, The District of Nebraska worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $39,694.06 in cases pursued jointly by these offices. Of this amount, $8,094.06 was collected in criminal actions and $31,600.00 was collected in civil actions.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
“Our criminal, civil and financial litigation units work tirelessly and are unheralded in their work to ensure civil and criminal debts owed to the United States and criminal debts owed to federal crime victims are collected,” said U.S. Attorney Joe Kelly.
“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 law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
Department of Veterans Affairs Official Sentenced to 11 Years in Prison for $2 Million Bribery Scheme Involving Program for Disabled Military VeteransRead the Press Release
A former U.S. Department of Veterans Affairs (VA) official was sentenced today for demanding and receiving bribes from three for-profit schools in exchange for enrolling disabled military veterans in those schools and facilitating over $2 million in payments from the VA using the veterans’ federal benefits.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office’s Criminal Division and Special Agent in Charge Kim Lampkins of the VA Office of Inspector General (OIG), Mid-Atlantic Field Office made the announcement.
James King, 63, of Baltimore, Maryland, previously pleaded guilty to an Information alleging one count of honest services and money/property wire fraud, one count of bribery of a public official, and one count of falsifying records to obstruct an investigation. King was sentenced by U.S. District Judge John D. Bates of the District of Columbia to serve 132 months in prison to be followed by three years of supervised release, and to pay $155,000 in restitution to the VA. Earlier this week, Judge Bates sentenced three school owners and employees who admitted to bribing King. Albert Poawui, the owner of Atius Technology Institute, was sentenced to serve 70 months in prison and ordered to pay $1.5 million in restitution. Sombo Kanneh, Poawui’s employee, was sentenced to serve 20 months in prison and ordered to pay $113,000 in restitution. Michelle Stevens, the owner of Eelon Training Academy, was sentenced to serve 30 months in prison and ordered to pay $83,000 in restitution.
“James King and his associates exploited an important VA program that provides valuable services to our disabled military veterans,” said Assistant Attorney General Benczkowski. “This prosecution once again demonstrates the Justice Department’s commitment to hold accountable those who seek to defraud government programs for their own personal enrichment.”
“James King blatantly betrayed his responsibility with the VA to provide job and educational counseling to disabled military veterans who turned to him for help,” said U.S. Attorney Liu. “Instead of helping our veterans, he lined his own pockets by taking bribes to send them to three sham schools that brought them only pain and frustration. Today’s sentencing holds him accountable for this breach of trust and this waste of taxpayer money.”
“King tried to use his position to enrich himself at the expense of veterans who have honorably served our country,” said FBI Special Agent in Charge DeSarno. “Today's sentencing makes it clear that such activity by anyone affiliated with the U.S. government will not be tolerated. The FBI will work closely with our partners to continue to aggressively investigate allegations of corruption.”
“We are pleased to see Mr. King, a person who abused his position of trust and the veterans he was supposed to serve, sentenced today,” said VA OIG Special Agent in Charge Lampkins. “This sentence sends a clear message that VA OIG is dedicated to prosecuting those that take advantage of VA programs that are intended to help our veterans and their families.”
According to King’s admissions made in connection with his plea, the Vocational Rehabilitation and Employment (VR&E) provides disabled U.S. military veterans with education and employment-related services. VR&E program counselors advise veterans under their supervision which schools to attend and facilitate payments to those schools for veterans’ tuition and necessary supplies.
From 2015 through 2017, King, using his position as a VR&E program counselor, demanded and received cash bribes from the owners of Atius Technology Institute (Atius), Eelon Training Academy (Eelon), and School A, a school purporting to specialize in physical security classes. King facilitated over $2 million in payments to Atius, over $83,000 to Eelon, and over $340,000 to School A, all in furtherance of King’s separate agreements with the respective school owners to commit bribery and defraud the VA. King agreed with Poawui and Stevens that they would each pay him, in cash, seven percent of the money they received from the VA in exchange for King steering veterans to their schools and facilitating VA payments. King similarly accepted cash payments from the owner of School A, who is identified as Person A in the Information, in exchange for the same official acts.
In order to maximize the profits from their fraud, all three school owners sent King and other VA officials false information about the education being provided to veterans, and King facilitated payments to all three schools knowing this information was false. King also admitted to repeatedly lying to veterans under his supervision in order to convince them to attend Atius, Eelon, or School A. For example, King falsely instructed one veteran that, unless he attended School A, his VR&E program benefits would “lapse.” King insisted that this veteran enroll in School A despite the veteran’s protests that he could not engage in physical security work due to a physical disability, and despite the fact that the veteran had enrolled in the VR&E program to pursue his dream of becoming a baker.
In early 2017, the VA initiated a fact-finding inquiry into Atius based on complaints by students as to the quality of education at the school. In August 2017, after King became aware of the inquiry, he created a falsified site visit report and instructed Poawui to send it to another VA official, all in an effort to obstruct the VA’s inquiry into Atius. In January 2018, King attempted to convince Poawui to lie to the grand jury about the purpose of the bribe payments.
King’s plea is the result of an ongoing investigation by the FBI’s Washington Field Office and the VA Office of Inspector General. Trial Attorney Simon J. Cataldo of the Criminal Division’s Public Integrity Section, former Assistant U.S. Attorney and current Fraud Section Trial Attorney Sonali D. Patel and Assistant U.S. Attorney David Misler of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
Department of Veterans Affairs Official Sentenced to 11 Years in Prison for $2 Million Bribery Scheme Involving Program for Disabled Military VeteransRead the Press Release
WASHINGTON – A former U.S. Department of Veterans Affairs (VA) official was sentenced today to a total of 11 years in prison for demanding and receiving bribes from three for-profit schools in exchange for enrolling disabled military veterans in those schools and facilitating over $2 million in payments from the VA using the veterans’ federal benefits.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney for the District of Columbia Jessie K. Liu, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office’s Criminal Division and Special Agent in Charge Kim Lampkins of the VA Office of Inspector General (OIG), Mid-Atlantic Field Office made the announcement.
James King, 63, of Baltimore, Maryland, previously pleaded guilty to an Information alleging one count of honest services and money/property wire fraud, one count of bribery of a public official, and one count of falsifying records to obstruct an investigation. King was sentenced by U.S. District Judge John D. Bates of the District of Columbia to serve 132 months in prison to be followed by three years of supervised release, and to pay $155,000 in restitution to the VA. Earlier this week, Judge Bates sentenced three school owners and employees who admitted to bribing King. Albert Poawui, the owner of Atius Technology Institute, was sentenced to serve 70 months in prison and ordered to pay $1.5 million in restitution. Sombo Kanneh, Poawui’s employee, was sentenced to serve 20 months in prison and ordered to pay $113,000 in restitution. Michelle Stevens, the owner of Eelon Training Academy, was sentenced to serve 30 months in prison and ordered to pay $83,000 in restitution.
“James King and his associates exploited an important VA program that provides valuable services to our disabled military veterans,” said Assistant Attorney General Benczkowski. “This prosecution once again demonstrates the Justice Department’s commitment to hold accountable those who seek to defraud government programs for their own personal enrichment.”
“James King blatantly betrayed his responsibility with the VA to provide job and educational counseling to disabled military veterans who turned to him for help,” said U.S. Attorney Liu. “Instead of helping our veterans, he lined his own pockets by taking bribes to send them to three sham schools that brought them only pain and frustration. Today’s sentencing holds him accountable for this breach of trust and this waste of taxpayer money.”
“King tried to use his position to enrich himself at the expense of veterans who have honorably served our country,” said FBI Special Agent in Charge DeSarno. “Today's sentencing makes it clear that such activity by anyone affiliated with the U.S. government will not be tolerated. The FBI will work closely with our partners to continue to aggressively investigate allegations of corruption.”
“We are pleased to see Mr. King, a person who abused his position of trust and the veterans he was supposed to serve, sentenced today,” said VA OIG Special Agent in Charge Lampkins. “This sentence sends a clear message that VA OIG is dedicated to prosecuting those that take advantage of VA programs that are intended to help our veterans and their families.”
According to King’s admissions made in connection with his plea, the Vocational Rehabilitation and Employment (VR&E) provides disabled U.S. military veterans with education and employment-related services. VR&E program counselors advise veterans under their supervision which schools to attend and facilitate payments to those schools for veterans’ tuition and necessary supplies.
From 2015 through 2017, King, using his position as a VR&E program counselor, demanded and received cash bribes from the owners of Atius Technology Institute (Atius), Eelon Training Academy (Eelon), and School A, a school purporting to specialize in physical security classes. King facilitated over $2 million in payments to Atius, over $83,000 to Eelon, and over $340,000 to School A, all in furtherance of King’s separate agreements with the respective school owners to commit bribery and defraud the VA. King agreed with Poawui and Stevens that they would each pay him, in cash, seven percent of the money they received from the VA in exchange for King steering veterans to their schools and facilitating VA payments. King similarly accepted cash payments from the owner of School A, who is identified as Person A in the Information, in exchange for the same official acts.
In order to maximize the profits from their fraud, all three school owners sent King and other VA officials false information about the education being provided to veterans, and King facilitated payments to all three schools knowing this information was false. King also admitted to repeatedly lying to veterans under his supervision in order to convince them to attend Atius, Eelon, or School A. For example, King falsely instructed one veteran that, unless he attended School A, his VR&E program benefits would “lapse.” King insisted that this veteran enroll in School A despite the veteran’s protests that he could not engage in physical security work due to a physical disability, and despite the fact that the veteran had enrolled in the VR&E program to pursue his dream of becoming a baker.
In early 2017, the VA initiated a fact-finding inquiry into Atius based on complaints by students as to the quality of education at the school. In August 2017, after King became aware of the inquiry, he created a falsified site visit report and instructed Poawui to send it to another VA official, all in an effort to obstruct the VA’s inquiry into Atius. In January 2018, King attempted to convince Poawui to lie to the grand jury about the purpose of the bribe payments.
King’s plea is the result of an ongoing investigation by the FBI’s Washington Field Office and the VA Office of Inspector General. Trial Attorney Simon J. Cataldo of the Criminal Division’s Public Integrity Section, former Assistant U.S. Attorney and current Fraud Section Trial Attorney Sonali D. Patel and Assistant U.S. Attorney David Misler of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
Dallas Tax Return Preparer Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
A tax return preparer operating in Irving, Texas, pleaded guilty today to conspiring to defraud the United States and to aiding and assisting in the preparation of a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Erin Nealy Cox for the Northern District of Texas.
According to documents and information provided to the court, Francisco Ventura owned and operated several tax preparation businesses located in Irving from at least 2012 through at least 2015. During 2014, Ventura ran a tax return preparation business named AJJ Tax and More, along with a second preparation business named Uptown Multi Services, which he co-owned with his co-defendant Mario Melendez.
From November 2013 and continuing through May 2014, Ventura conspired with Melendez and others to prepare fraudulent federal income tax returns, and he personally prepared individual income tax returns for clients that included false education credits and Schedule C expenses. Ventura also taught training classes for new tax return preparers during which he instructed employees how to prepare fraudulent tax returns in order to maximize client refunds. Ventura is responsible for attempting to cause over $8.3 million of tax loss to the United States.
Sentencing for Ventura is scheduled for June 14, 2019. Ventura faces a maximum of five years in prison for the conspiracy charge and three years in prison for the aiding and assisting in the preparation of a false tax return count, as well as a period of supervised release, restitution, and monetary penalties. Melendez pleaded guilty in November 2018 to conspiring to defraud the United States and to aiding and assisting in the preparation of false tax returns, and is awaiting sentencing.
Principal Deputy Assistant Attorney Zuckerman and U.S. Attorney Nealy Cox commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorney Alexander Effendi of the Tax Division and Assistant United States Attorney Melanie Smith, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Convicted Felon Sentenced to 5 Years in Prison Under Project EJECT for Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – John Overby, 49, of Brandon, was sentenced today by Chief U.S. District Judge Daniel P. Jordan III to 60 months in federal prison, followed by 3 years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Christopher Freeze, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi. Overby was also ordered to pay a $1,500.00 fine.
On March 13, 2018, the Rankin County Sheriff’s Department conducted an undercover operation that resulted in deputies purchasing a firearm from Overby. Overby has a previous felony conviction for theft of a motor vehicle.
This case was investigated by the Federal Bureau of Investigation and the Rankin County Sherriff’s Department. It is being prosecuted by Assistant United States Attorney Chris Wansley.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Convicted Felon Sentenced to 151 Months for Possessing 11 Firearms and Dealing Crack Cocaine, Cocaine and HeroinRead the Press Release
NEWS RELEASE SUMMARY – February 15, 2019
SAN DIEGO – Convicted felon Dwight Wayne Jordan, aged 60, a San Diego resident, was sentenced today to 151 months for knowingly and intentionally possessing, with intent to distribute, cocaine base (i.e., crack cocaine), cocaine and heroin along with illegally possessing eleven firearms that included semi-automatic weapons, shotguns, and .357 Magnum revolvers among others.
U.S. District Judge Gonzalo P. Curiel also ordered forfeiture of each of the eleven firearms and ammunition seized; $43,440 in United States currency; and a 2013 Porsche Cayenne in which a portion of Jordan’s narcotics proceeds were located. During sentencing, Judge Curiel explained that Jordan’s narcotics distribution efforts were “deadly, crippling and so destructive . . ..” and that Jordan was responsible for putting “so much poison out to a community that is already underserved.”
Through his plea agreement, Jordan admitted that, on September 8, 2018, he was the driver and sole occupant of a BMW X3 traveling on the I-94 near Market Street in San Diego when a San Diego Police Department (SDPD) Officer attempted to conduct a lawful traffic stop. Although Jordan initially yielded, as the officer exited his vehicle, Jordan accelerated and attempted to flee, running two red lights. While fleeing, Jordan threw a bag from the car window containing approximately two kilograms of cocaine that was recovered by SDPD. After the vehicle was stopped, a search yielded more than $6,900 that Jordan later admitted were the proceeds of narcotics trafficking. The attached photo (Attachment 1), filed with the Government’s sentencing papers, depicts items seized from the vehicle.
On September 18, 2018, law enforcement also executed follow-up search warrants at Jordan’s residence and alleged business -- the “Cuttin up” barbershop -- in San Diego. Those searches yielded eleven firearms; $36,499 in cash, including the cash found in the Porsche Cayenne, all of which resulted from narcotics trafficking; and significant quantities of cocaine base, cocaine and heroin. Jordan admitted that he illegally possessed the eleven firearms as well as the drugs, which he intended to further distribute. Due to a prior drug felony conviction, Jordan was prohibited from possessing a firearm or ammunition under federal law. The attached photo (Attachment 2), also filed with the Government’s sentencing papers, depicts items seized from Jordan’s residence.
“Drugs and guns present a potentially lethal combination that will not be tolerated in America’s Finest City” said U.S. Attorney Robert S. Brewer, Jr. “The U.S. Attorney’s Office is steadfastly committed to protecting our community from the dealers of pernicious drugs that destroy families, wreak havoc on our streets, and provoke fear in our neighborhoods.”
The case was prosecuted by Assistant U.S. Attorney Larry Casper.
The case is the result of the ongoing efforts of the Organized Crime Drug Enforcement Task Force (OCEDTF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCEDTF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANT Criminal Case Number 18-cr-4496
Dwight Wayne Jordan Age: 60 San Diego, California
SUMMARY OF CHARGES
Count 1:
Possession With the Intent to Distribute Cocaine Base, Cocaine and Heroin, 21 U.S.C. 841(a)
Maximum penalties: Life in prison, and a mandatory minimum 10 years; $10,000,000 fine; at least five years’ supervised release up to life; Mandatory Special Assessment of $100; Forfeiture
Count 2:
Felon in Possession of a firearm, 18 U.S.C. 922(g)(1)
Maximum penalties: 10 years custody $250,000 fine and 3 years supervised release; Mandatory Special Assessment of $100; Forfeiture
INVESTIGATING AGENCIES
Drug Enforcement Administration
Bureau of Alcohol Tobacco Firearms and Explosives
San Diego Police Department
Convicted Felon Found Guilty of Federal Firearm ChargeRead the Press Release
WASHINGTON – Manuel D. Reynoso, 36, of Glen Burnie, Md., was found guilty today following a jury trial in the U.S. District Court for the District of Columbia of possessing a firearm with an extended magazine loaded with ammunition; possession of marijuana; and possession of N-Ethypentylone, announced U.S. Attorney Jessie K. Liu.
The verdict followed a trial before the Honorable Chief Judge Beryl A. Howell. Reynoso is to be sentenced on April 5, 2019.
At the time of his arrest last spring by U.S. Secret Service (USSS) officers in Northwest Washington, Reynoso was on release pending sentencing for firearm and possession with intent to distribute marijuana offenses to which he had pled guilty in the Circuit Court for Prince George’s County, Md.
According to the government’s evidence, on May 16, 2018, at approximately 1:19 a.m., Secret Service officers were on routine patrol in the 200 block of 17th Street NW, when they observed a BMW being driven without headlights. The officers conducted a traffic stop of that BMW, which Reynoso was driving with two passengers. An officer approached the driver’s side window and smelled the odor of marijuana. The officer asked if anyone had been smoking in the vehicle, and Reynoso replied no. Reynoso then voluntarily picked up and held in his hand marijuana that was wrapped in a dollar bill, showed it to the officer, and said, “This is all we have.” As officers were asking the passengers to exit the BMW so that it could be searched, Reynoso, without being asked, got out of the BMW. While fumbling with a cellular telephone in his hand, Reynoso began to walk toward the front of his car. He then ran from the police.
An officer conducted a plain view search of the BMW and observed in the front passenger door map pocket a magazine with ammunition for a subcompact pistol. Following a search by Secret Service and U.S. Park Police officers, the defendant was found near the Tidal Basin, stopped, and arrested. During an initial search of Reynoso at the Tidal Basin, a large amount of U.S. currency and other items were recovered from him. While Reynoso was at the Park Police’s District One, additional U.S. currency and 0.069 grams of N-Ethylpentylone, a methamphetamine, were found on his person.
Additionally, during a search of the BMW, an officer technician recovered a Glock 27 .40 caliber semi-automatic pistol with an extended magazine loaded with 20 cartridges from under the driver’s front floor mat; the magazine and ammunition from the front passenger door map pocket; 2.646 grams of marijuana; and a small amount of U.S. currency. A total of $2,890 in U.S. currency was recovered.
In announcing the verdict, U.S. Attorney Liu stated, “My Office’s top priority is the safety of the people who live and work in Washington, D.C., and that means protecting them from the danger posed by illegal firearms. This case shows our commitment to doing just that. This defendant previously had been convicted of a serious crime and had no business possessing a firearm.”
U.S. Attorney Liu commended the work of the U.S. Secret Service officers who were the primary investigative officers, as well as officers and special agents from assisting law enforcement agencies, including the U.S. Park Police, the Metropolitan Police Department (MPD), and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Rommel Pachoca, Catherine O’Neal, and Kim Hall; Supervisory Paralegal Specialist Mary Downing; Legal Assistant Latoya Wade, and Litigation Technology Unit Specialists Jeanie Lattimore-Brown, William Henderson, Leif Hickling, Kimberly Smith and Ron Royal.
Contractor Who Put His Workers at Risk of Asbestos Exposure Sentenced in Federal CourtRead the Press Release
An experienced Algona contractor who purchased and renovated the former Kossuth County Home without thoroughly inspecting for asbestos was sentenced February 13, 2019, to two years of probation.
Steven A. Weaver, age 61, from Algona, Iowa, received sentence after an October 11, 2018 guilty plea to one count of violating clean air work practice standards.
In a plea agreement, Weaver admitted he was an experienced contractor and building inspector who had worked for various Iowa municipalities since the early 2000s. During this time, Weaver performed work for the municipalities that was financed by the United States Department of Housing and Urban Development through the Iowa Finance Authority. Weaver was responsible for conducting initial inspections of residential properties to determine whether it was cost-effective to rehabilitate each home. In conjunction with this work, Weaver gained experience working with lead and asbestos.
In November 2013, Weaver purchased the former Kossuth County Home in the Algona area. Weaver intended to convert the building into apartments to be known as “The Oasis.” Weaver hired workers to renovate the building. None of these workers were licensed to remove asbestos. Prior to beginning the renovation, Weaver failed to thoroughly inspect the building for asbestos to determine whether it was subject to regulation.
In November 2014, the Environmental Protection Agency (“EPA”) searched Weaver’s property and determined piping in the basement contained regulated asbestos. Weaver’s workers had already removed the piping. An EPA agent asked Weaver whether he had notified the Iowa Department of Natural Resources (“IDNR”) before the renovation and, when Weaver indicated he had not, the EPA agent instructed Weaver to report to IDNR. However, Weaver did not notify IDNR. Instead, Weaver continued the renovation operation in late 2014 without properly notifying IDNR.
Weaver was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Chief Judge Strand indicated the offense was “aggravating” because Weaver had cut corners on his own renovation project and potentially put his workers at risk of asbestos exposure. Weaver was sentenced to two years of probation, fined $10,000, and ordered to pay costs of prosecution in the amount of $1,573.35.
The case was prosecuted by Assistant United States Attorneys Tim Vavricek and Matt Cole and investigated by the Environmental Protection Agency.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-3039-LTS.
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Chinese National Sentenced to Prison for Selling Counterfeit Computer PartsRead the Press Release
A Beijing, China man was sentenced today to 54 months in federal prison for directing the shipment of counterfeit computer-networking equipment into the Southern District of Texas.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick for the Southern District of Texas made the announcement.
Ruiyang Li, 40, was sentenced today to serve 54 months in federal prison by U.S. District Judge Ewing Werlein Jr. The court reserved the determination of restitution to the victims of Li’s trademark counterfeiting—including Cisco Systems Inc., The Hewlett-Packard Company and Intel Corporation—until a later date. Because Li is not a U.S. citizen, he is expected to be deported after serving his prison sentence.
From at least 2007 until in or about June 2017, Li directed the shipment of counterfeit computer-networking equipment into the Southern District of Texas, first when selling to a retailer in Magnolia, Texas, and eventually when selling to law enforcement acting in an undercover capacity. Over this time period, Li sold counterfeit networking products through several business entities, often hiding behind layers of personal and corporate aliases to evade detection by law enforcement. Li also used various means to conceal his unlawful conduct, including by sending and receiving payments using accounts that did not appear connected, at least publicly, to companies trafficking in illicit products. Li and his customers would also agree to mislabel packages, break up shipments into separate components, alter destination addresses and use multiple forwarding companies based in the United States. These methods, in Li’s mind, made shipping counterfeit parts “safer,” which in practice meant delaying or complicating detection by U.S. authorities.
State and local governments rely on complex computer networking technology, including the transceivers and other parts that were trafficked in this case, to manage critical data and operations. This same technology is also prominent in banks, hospitals, air traffic control installations, power plants and other essential infrastructure. Because counterfeit parts are often not subject to stringent manufacturing requirements, they present a significant health and safety risk to communities across the United States.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with significant assistance from U.S. Customs and Border Protection. The case was prosecuted by Senior Trial Attorney Timothy C. Flowers of the Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jay Hileman.
Chinese National Sentenced for Selling Counterfeit Computer PartsRead the Press Release
HOUSTON – A Beijing, China, man was sentenced to federal prison today for directing the shipment of counterfeit computer-networking equipment into the Southern District of Texas.
U.S. Attorney Ryan K. Patrick and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division made the announcement.
U.S. District Judge Ewing Werlein Jr. sentenced Ruiyang Li, 40, to serve 54 months in federal prison. The court reserved the determination of restitution to the victims of Li’s trademark counterfeiting—including Cisco Systems Inc., The Hewlett-Packard Company and Intel Corporation—until a later date. Because Li is not a U.S. citizen, he is expected to face deportation proceedings after serving his prison sentence.
From at least 2007 until in or about June 2017, Li directed the shipment of counterfeit computer-networking equipment into the Southern District of Texas, first when selling to a retailer in Magnolia and eventually when selling to law enforcement acting in an undercover capacity. Over this time period, Li sold counterfeit networking products through several business entities, often hiding behind layers of personal and corporate aliases to evade law enforcement detection. Li also used various means to conceal his unlawful conduct, including by sending and receiving payments using accounts that did not appear connected, at least publicly, to companies trafficking in illicit products. Li and his customers would also agree to mislabel packages, break up shipments into separate components, alter destination addresses and use multiple forwarding companies based in the United States. These methods, in Li’s mind, made shipping counterfeit parts “safer,” which in practice meant delaying or complicating detection by U.S. authorities.
State and local governments rely on complex computer networking technology, including the transceivers and other parts that were trafficked in this case, to manage critical data and operations. This same technology is also prominent in banks, hospitals, air traffic control installations, power plants and other essential infrastructure. Because counterfeit parts are often not subject to stringent manufacturing requirements, they present a significant health and safety risk to communities across the United States.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with significant assistance from Customs and Border Protection. Assistant U.S. Attorney Jay Hileman and Senior Trial Attorney Timothy C. Flowers of the Computer Crime and Intellectual Property Section prosecuted the case.
California Man Pleads Guilty to Sexually Exploiting Minor He Met While Playing “Clash of Clans”Read the Press Release
A Fresno, California man pleaded guilty today to using the internet to coerce and entice a minor into producing child pornography.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Assistant Director in Charge Nancy McNamara of the FBI Washington Field Office and Chief of Police Barry M. Barnard of the Prince William County Police Department made the announcement.
Emilio Morales, 29, pleaded guilty to one count of coercion and enticement of a minor into illegal sexual activity before U.S. District Judge Liam O’Grady of the Eastern District of Virginia. Sentencing is scheduled for May 31.
According to admissions made in connection with his guilty plea, Morales met the 11-year-old victim while playing the online game “Clash of Clans.” In 2017, Morales began grooming the victim over Clash of Clans before proposing that he and the victim communicate privately over the online chatting application Kik Messenger. While communicating over Kik Messenger, Morales coerced and persuaded the victim to produce and send him sexually explicit images and videos. The conduct ceased when, despite Morales’s attempts at manipulation, the minor victim refused to participate in any further sexual activity.
The case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force and the Prince William County Police Department, with substantial assistance from the FBI’s Fresno Resident Agency. It is being prosecuted by Trial Attorney Kyle P. Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Whitney D. Russell of the Eastern District of Virginia.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Browning man sentenced to 16 years for sexually abusing, giving meth to minorRead the Press Release
GREAT FALLS—A Browning man convicted of having sex with and giving methamphetamine to a minor at his home on the Blackfeet Indian Reservation was sentenced on Thursday to 16 years in prison and six years of supervised release, U.S. Attorney Kurt Alme said.
Bruce Dragonfly, 56, pleaded guilty in July to aggravated sexual abuse of a minor and to distribution of a controlled substance to a minor.
U.S. District Judge Bryan M. Morris presided.
An investigation found that in 2015 at Dragonfly’s home, the victim, a minor, and others attended a party in which everyone could use methamphetamine together. The evidence, prosecutors said, showed that Dragonfly supplied at least some of the meth to the partygoers. During the party, Dragonfly requested the victim perform a sex act on him and in exchange, provided her meth.
Dragonfly continued providing the victim meth in exchange for sex, money or other non-sexual favors until mid-2017, both on and off the Blackfeet Reservation. Dragonfly and the victim typically communicated through Facebook and Internet chat services to arrange meetings.
In an interview with FBI agents in April 2018, Dragonfly confirmed he had previously provided the victim with meth in exchange for sex.
Assistant U.S. Attorney Jeffrey Starnes prosecuted the case, which was investigated by the FBI and Blackfeet Law Enforcement Services.
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Baton Rouge Man Indicted for Wire and Tax FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced yesterday that WAYNE TRICHE, age 75, of Baton Rouge, was charged in a 38-count Indictment with wire fraud and tax fraud in violation of Title 18, United States Code, Section 1343 and Title 26, United States Code, Section 7206(1), respectively.
The indictment alleges that TRICHE, a certified public accountant, embezzled over $2,000,000.00 from the New Orleans Firefighters Pension and Relief Fund (“the Fund”). TRICHE was responsible for investing a portion of the Fund’s investments. Rather than return the profits earned to the Fund, TRICHE stole in excess of $2,000,000.00 and used those funds for personal expenses. The tax fraud charges stem from TRICHE’s failure to claim the embezzled funds on his personal income tax returns, resulting in a significant loss to the Internal Revenue Service.
If convicted of the violations, TRICHE faces a maximum term of imprisonment of 20 years, a fine of up to $250,000.00, a period of up to 3 years supervised release, and a mandatory special assessment of $3800.00.
U. S. Attorney Peter G. Strasser reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Peter G. Strasser praised the work of the Federal Bureau of Investigation and the Internal Revenue Service/Criminal Investigations in investigating this matter. Assistant United States Attorney Tracey N. Knight is in charge of the prosecution.
14 February 2019
Worcester Man Sentenced to 15 Years in Prison for Distributing MethamphetamineRead the Press Release
BOSTON – A Worcester man was sentenced today in federal court in Worcester on federal methamphetamine charges.
Adam Germano, 37, was sentenced by U.S. District Court Judge Timothy S. Hillman to 15 years in prison, five years of supervised release, and ordered to pay forfeiture of $73,343. On Oct. 5, 2018, Germano pleaded guilty to conspiring to distribute and to distributing methamphetamine. Germano has been in custody since his arrest in March 2017.
Germano admitted to shipping large quantities of methamphetamine into Massachusetts, New Hampshire, and Florida, and to distributing methamphetamine to dealers and others in Massachusetts and New Hampshire in exchange for cash. In January 2017, Germano arranged for a package to be shipped via U.S. mail from Las Vegas to Worcester. The package was intercepted and found to contain more than two kilograms of approximately 97% pure methamphetamine. In March 2017, during a traffic stop in Concord, N.H., police located methamphetamine and a handgun hidden in the engine of the car that Germano was driving.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Valuable assistance was provided by the Merrimack and Concord (N.H.) Police Departments. Assistant U.S. Attorney Bill Abely of Lelling’s Criminal Division prosecuted the case.
Wilson County Man Sentenced to 12 Years for Methamphetamine Drug ConspiracyRead the Press Release
GREENVILLE – United States Attorney Robert J. Higdon, Jr. announced that in federal court, Senior United States District Judge Malcolm J. Howard sentenced KYLE ROBERT PERRY, 27, of Kenly, North Carolina to 144 months imprisonment, followed by 5 years of supervised release.
The prosecution of PERRY was a part of an Organized Crime and Drug Enforcement Task Force Operation (OCDETF), which has focused on methamphetamine manufacturers and distributors in Wilson and Wayne counties.
PERRY was named in an eight-count Indictment filed on December 6, 2017 charging him with conspiracy to manufacture, distribute, dispense and possess with the intent to distribute methamphetamine and a mixture and substance containing a detectable amount of methamphetamine from 2009 until December 15, 2015; possession of equipment, chemicals, products and materials with the intent to manufacture methamphetaime; and distribute of a quantity of a mixture and substance containing a detectable amount of methamphetamine. On April 9, 2018, PERRY pled guilty to the conspiracy charge.
The investigation showed that PERRY was a part of a drug trafficking organization that manufactured and distributed methamphetamine in Wilson County, North Carolina. PERRY utilized at least five other people to purchase pseudoephedrine on his behalf, which is one of the main ingredients utilized in the manufacturing of methamphetamine. On September 3, 2015, officers conducted a search of PERRY’s home and located several items utilized in the manufacturing of methamphetamine including a hydrochloric generator, a stripped lithium battery, a bottle with tubing and an empty pseudoephedrine package. Due to the hazardous nature of these items, they were removed by the North Carolina State Bureau of Investigation’s Clandestine Unit. PERRY’s manufacturing of methamphetamine created a substantial risk of harm to human life or the environment.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by the North Carolina State Bureau of Investigation, Wilson County Sheriff’s Office, and Wilson Police Department. Assistant United States Attorney Dena King represented the government.
Williamsville Man Sentenced for Stealing from A Union and Insurance CompanyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Timothy McCluskey, 61, of Williamsville, NY, who was convicted of conspiracy to commit mail fraud, was sentenced by Chief U.S. District Judge Frank P. Geraci, Jr. to serve two years’ probation to include six months home detention. Judge Geraci also ordered the defendant to perform 100 hours of community service.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that between November 21, 2014, and January 2015 the defendant conspired with another individual to defraud the International Union of Painters & Allied Trades (IUPAT).
Specifically, in December 2014, McCluskey caused a back-dated application seeking to have his then deceased brother reinstated into the union. In January of 2015, the defendant filed a death benefit claim in his brother’s name with the union, and as a result, IUPAT issued life insurance proceeds to defendant in the amount of $2,500.
In addition, between December 2014 and February 2015, defendant engaged in a scheme to defraud the Hartford Insurance Company, by falsely claiming to IUPAT that his deceased brother had worked over 500 hours at his painting company, E&M Star Painting, Inc., between January 2014 and March of 2014, such that his deceased brother would be eligible for a $50,000 life insurance policy.
Today’s sentencing is the result of an investigation by the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Michael C. Mikulka, Special
Agent-in-Charge of the New York Region, the U.S. Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin of the Boston Division, the Employee Benefits Security Administration, under the direction of Carol S. Hamilton, Acting Regional Director, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
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William P. Barr Confirmed as 85th Attorney General of the United StatesRead the Press Release
Official White House Photo by Tia Dufour President Donald J. Trump participates in swearing-in of William P. Barr administered by U.S. Supreme Court Chief Justice John Roberts on February 14, 2019. Attorney General Barr's wife, Christine, holds the Bible.Today, William P. Barr was confirmed by the U.S. Senate to be the 85th Attorney General of the United States. Following the vote, President Donald J. Trump participated in the swearing-in of Mr. Barr during a ceremony in the Oval Office of the White House, where U.S. Supreme Court Chief Justice John Roberts administered the oath of office. Mr. Barr’s wife, his three daughters and their spouses, and his grandchildren attended the ceremony. Mr. Barr joins John Crittenden (1841 and 1850-1853) as one of only two people in U.S. history to serve twice as Attorney General.
Mr. Barr is rejoining the Department of Justice where he previously served as the 77th Attorney General of the United States from 1991 to 1993 under President George H.W. Bush. Mr. Barr also served as the Deputy Attorney General from 1990 to 1991 and as the Assistant Attorney General of the Office of Legal Counsel from 1989 to 1990. While serving at the Department, Mr. Barr helped create programs and strategies to reduce violent crime and was responsible for establishing new enforcement policies in a number of areas including financial institutions, civil rights, and antitrust merger guidelines. Mr. Barr also led the Department’s response to the Savings & Loan crisis; oversaw the investigation of the Pan Am 103 bombing; directed the successful response to the Talladega prison uprising and hostage taking; and coordinated counter-terrorism activities during the First Gulf War.
Most recently, Mr. Barr served as Of Counsel at Kirkland & Ellis. Before his work at Kirkland & Ellis, he served as Executive Vice President and General Counsel for GTE Corporation from 1994 until 2000 and as Executive Vice President and General Counsel of Verizon from 2000 to 2008.
Mr. Barr served as a law clerk under Judge Malcolm Wilkey of the U.S. Court of Appeals for the District of Columbia Circuit, and from 1982 to 1983, served on the White House Domestic Policy Staff under President Ronald Reagan. He received his A.B. in government in 1971 and his M.A. in government and Chinese studies in 1973, both from Columbia University. From 1973 to 1977, Mr. Barr served in the Central Intelligence Agency before receiving his J.D. with highest honors from George Washington University Law School in 1977.
The Department of Justice welcomes back Attorney General Barr and looks forward to his leadership in upholding the rule of law and protecting the rights of all Americans.
Whitinsville Woman Pleads Guilty to Conspiring to Distribute AdderallRead the Press Release
BOSTON – A Whitinsville woman pleaded guilty today in federal court in Worcester to her role in a conspiracy to distribute the amphetamine Adderall.
Meghan Giacomuzzi, 36, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute Adderall and six counts of distributing and dispensing Adderall. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for May 14, 2019. Giacomuzzi was charged by Information in November 2018.
Between October 2016 and February 2018, Giacomuzzi conspired with others to distribute Adderall, an amphetamine, for uses other than a legitimate medical purpose and not in the usual course of medical practice. While working for Leslie Caraceni, M.D., at her medical practice in Whitinsville, Giacomuzzi wrote prescriptions for controlled substances, including Adderall, for patients who had not been examined or diagnosed by Caraceni, using prescription pads provided by Caraceni, and then sold the prescriptions to patients. Giacomuzzi would then deliver cash payments to Caraceni at her residence or leave cash in the medical office for Caraceni to collect, while payments made by debit or credit card were paid to a bank account controlled by Caraceni.
Caraceni was charged in November 2018 and has pleaded not guilty and is awaiting trial.
The charge of conspiracy to distribute, dispense, and possess with intent to distribute Adderall carries a sentence of up to 20 years in prison, at least three years of supervised release, and a fine of up to $1 million. The charge of distributing, dispensing, and possessing with the intent of distributing Adderall also carries a sentence of up to 20 years in prison, at least three years of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement today. Assistant U.S. Attorney Craig Estes of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
West Seneca Man Pleads Guilty to Bilking Victims Out of Thousands of Dollars in Scheme Involving Postage Stamps and Lottery TicketsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jerry Hayes, 71, of West Seneca, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to unlawfully mailing lottery tickets and related matter. The charge carries a maximum penalty of two years in prison and a $250,000 fine.
Assistant U.S. Attorney Jonathan P. Cantil, who is handling the case, stated that between 2006 and November 17, 2017, the defendant participated in a scheme to mislead and defraud others. Hayes sent out circulars and solicitation letters encouraging potential participants (victims) to join a “club” and to mail items of nominal value, namely, cash, U.S. postage stamps, and/or unscratched lottery tickets, to two or more purported other “participants,” whose alleged names and addresses were listed on the circulars and solicitation letters.
The solicitation letters directed the victims, in turn, to provide their names and addresses, allegedly so that the information could be added to the top of the solicitation letters, thereby making the victim an “instant benefactor” of all future mailed letters. The defendant advertised that such participation in the club would result in an exponential number of people sending cash, stamps or lottery tickets back to the victim, hence allowing the victim to “get rich” off an initial minimal investment.
The solicitations letters further indicated that the majority of the current club participants resided in Western New York. However, the addresses listed in the solicitation letters were merely post office boxes rented by the defendant and located in Hamburg, West Falls, East Aurora, Athol Springs, Blasdell, Orchard Park, and West Seneca, New York. All of the participants named on the solicitation letters were aliases used by Hayes, and each of the names were associated with a different post office box rented by the defendant.
Hayes mailed circulars and solicitation letters to individuals throughout the United States with a return address of “THG Funding,” PO Box 872, East Aurora, NY, 14052. Each envelope was addressed by hand, and each contained a notation such as: “Christmas Club;” “Requested Material;” “Stamp Club;” or “Personal Stimulus Plan.” The solicitation letters touted in their narratives that such opportunities were an “endless circle of cash,” “make money all year,” “simple inexpensive program could make you a multi-millionaire,” and “receive monthly benefits of $15,000.00.”
As a result of the scheme, Hayes collected approximately $90,713 in cash and postage stamps.
Today’s plea is the result of an investigation by the U.S. Postal Inspection Service, under the direction of Boston Division Inspector-in-Charge Joseph W. Cronin.
Sentencing is scheduled for May 9, 2019, at 2:00 p.m. before Judge Wolford.
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Waukee Man Sentenced to 130 Months in Prison for Receipt of Child PornographyRead the Press Release
DES MOINES, IA—On January 25, 2019, Jay Robert Sebben, age 41, of Waukee, appeared before United States District Court Judge Rebecca Goodgame Ebinger and was sentenced to 130 months in prison for receipt of child pornography. Sebben pleaded guilty in June 2018 to receipt of child pornography, in violation of Title 18, United States Code, Section 2252A(a)(2).
Sebben admitted in 2017 he received child pornography over the Internet. The child pornography he obtained included visual depictions of children being sexually assaulted. The collection of over 10,000 images and 400 videos included prepubescent children as young as three years of age. Sebben was ordered to pay $27,000 in restitution to the victims depicted in the child pornography. Sebben had been an IT systems administrator for the Iowa Air National Guard prior to being charged in this case.
This investigation was conducted by the Urbandale Police Department, the FBI Child Exploitation Task Force, and the Iowa Division of Criminal Investigation's Internet Crimes Against Children Task Force. The case was prosecuted by the United States Attorney's Office for the Southern District of Iowa.
United States Files False Claims Act Lawsuit in Connection with MOX Fuel Fabrication Facility ContractRead the Press Release
The Department of Justice announced today that the United States has filed suit against CB&I AREVA MOX Services LLC (MOX Services) and Wise Services Inc. under the False Claims Act and the Anti-Kickback Act in connection with a contract between MOX Services and the National Nuclear Security Administration relating to the design and operation of the MOX Fuel Fabrication Facility (MFFF) at the NNSA Savannah River Site in Aiken, South Carolina. MOX Services is a South Carolina Limited Liability Corporation with headquarters in Aiken, South Carolina. Wise Services, which subcontracted with MOX Services, is an Ohio corporation with headquarters in Dayton, Ohio.
Under the MOX Contract, MOX Services agreed to design, build, operate (and ultimately decommission) the MFFF. The MFFF is designed to transform weapons-grade plutonium into mixed oxide fuel rods that may be irradiated in commercial nuclear power plants. In performing the MOX Contract, MOX Services entered into a series of subcontracts with Wise Services between 2008 and 2016. Each of these subcontracts provided for Wise Services to supply labor, materials, equipment, and supervision for unplanned construction activities (e.g. general labor, plumbing, electrical, carpentry) deemed necessary to support MOX Services’ efforts at the MFFF.
The government’s complaint alleges that Wise Services falsely claimed reimbursement under its subcontracts with MOX Services for construction materials that did not exist, and that in turn MOX Services knowingly submitted $6.4 million in claims to NNSA for the fraudulent charges submitted by Wise Services. The complaint further alleges that Wise Services’ Senior Site Representative Phillip Thompson paid kickbacks to MOX Services officials with responsibility for the subcontracts to improperly obtain favorable treatment from MOX Services. On Feb. 27, 2017, Mr. Thompson entered a guilty plea on charges of conspiring to commit theft of government funds.
“Government contractors who line their bank accounts by receiving kickbacks or submitting fraudulent claims undermine the public's trust in government programs and operations,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will continue to vigorously pursue those who misuse taxpayer funds.”
“Through rigorous enforcement of the False Claims Act, the Department of Justice protects taxpayer dollars from waste, fraud, and abuse,” said U.S. Attorney Sherri A. Lydon. “The U.S. Attorney’s Office for the District of South Carolina will continue to hold accountable government contractors who seek to fraudulently achieve profits at the expense of the American taxpayer.”
“The Department of Energy Office of Inspector General remains committed to ensuring the integrity of the Department’s contractors and subcontractors,” said Teri L. Donaldson, Department of Energy Inspector General. “We take allegations of false claims, overbilling, and kickbacks very seriously and will aggressively investigate these matters to protect the Department and the American taxpayers. We appreciate the efforts of the DOJ in pursuing these allegations and will continue our collaboration with the DOJ to investigate those who seek to defraud Department programs.”
This matter was investigated by the Commercial Litigation Branch of the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the District of South Carolina, and the Department of Energy’s Office of Inspector General. The claims asserted in this action are allegations only, and there has been no determination of liability.
The lawsuit is captioned United States v. CB&I AREVA MOX Services, LLC, et al.(D.S.C).
United States Attorney’s Office for the Eastern District of North Carolina Collects over $13 Million in Civil and Criminal Actions in Fiscal Year 2018, and $4.6 Million in Asset Forfeiture ActionsRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announced today that his office collected over $13.5 million in criminal and civil actions in fiscal year 2018. Of this amount, $8,410,643.89 was collected in criminal actions and $5,113,040.40 was collected in civil actions. Additionally, over $4.6 million was collected in asset forfeitures.
The Eastern District of North Carolina also collaborated with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $13,983.13. Of this amount, $5,733.13 was collected in criminal actions and $8,250 was collected in civil actions.
Overall, the Justice Department collected nearly $15 billion in civil and criminal actions in fiscal year ending on September 30, 2018. The $14,839,821,650 in Fiscal Year 2018 collections is nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. 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.
In the past fiscal year, the Eastern District of North Carolina has returned millions of dollars to crime victims. For example, in United States v. Justin Lawrence Daniel, over $2.3 million was recovered for victims of the defendant’s criminal conduct. In in United States v. Mittesh Das, $750,000 was recovered for victim restitution and paid at the time of sentencing.
The District has also recovered significant taxpayer money lost to fraud or other misconduct, collected civil fines imposed for violations of federal law, and collected civil debts owed to various federal agencies. For example, in United States v. Physicians Pharmacy Alliance, $1.7 million was recovered for the Health and Human Services’ Center for Medicare & Medicaid Services and for the North Carolina Medicaid Program. The United States has recovered an initial payment of $750,000 from Rouseco, Inc, toward a $5.8 million judgment in United States v. Rouseco, Inc.
“We will use every available tool to aggressively collect victim restitution and criminal fines, and recover taxpayer dollars that are either lost to fraud or otherwise owed to government agencies,” said Mr. Higdon. “Asset forfeiture also serves important law enforcement interests, and we will continue to aggressively forfeit the proceeds of crime and the assets used to facilitate it. We are proud of the men and women in our office who dedicate themselves each and every day to ensuring justice through their collection efforts. They are to be congratulated for their tremendously successful efforts.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Un hombre de Nueva Orleans es condenado por un delito de odio cometido cuando disparó a tres hombres afroestadounidenses que intentaban huir de la zona tras el Huracán KatrinaRead the Press Release
WASHINGTON, D.C. – Roland J. Bourgeois Jr., de 55 años, vecino de Nueva Orleans, Luisiana, fue condenado a diez años de cárcel, seguidos de tres años de libertad supervisada por cargos que acusan que, tras el Huracán Katrina, él disparó a tres hombres afroestadounidenses jóvenes por motivo de su raza mientras que los hombres intentaban huir de Nueva Orleans. Así anunciaron Eric Dreiband, el Fiscal General Auxiliar de la División de Derechos Civiles; Peter G. Strasser, el Fiscal Federal para el Distrito Oriental de Luisiana; y Eric J. Rommal, el Agente Especial Encargado de la División del Buró Federal de Investigaciones (FBI, por sus siglas en inglés) en Nueva Orleans.
«La condena de hoy proporciona paz a este tiroteo basado en motivos raciales que ocurrió hace más de trece años tras el Huracán Katrina», dijo el Fiscal General Auxiliar Eric Dreiband. «Esta condena transmite un mensaje claro a aquellos que emplean violencia y miedo para intentar dividir nuestra comunidad de que el Departamento de Justicia trabajará sin tregua para enjuiciar a los autores de violencia motivada por el odio».
«Una de las tareas principales del Departamento de Justicia es la defensa de los derechos civiles de nuestros ciudadanos. Esta condena demuestra claramente la tenacidad de los cuerpos del orden público a hacer que los individuos rindan cuentas de sus acciones, a pesar del paso del tiempo», afirmó el Fiscal Federal Strasser. «El Huracán Katrina fue una etapa trágica en la historia de nuestra ciudad. Espero que esta declaración de culpabilidad ofrezca un atisbo de paz a aquellos que fueron directamente impactados por este delito y a esta gran ciudad que sufrió tanto en los días después de este desastre».
Eric Rommal, el Agente Especial Encargado del FBI en Nueva Orleans, declaró: «La justicia es ciega, pero también es paciente. Los actos violentos, cobardes, basados en la raza y sin provocación del Sr. Bourgeois se llevaron a cabo injustamente contra sus víctimas hace más de una década, lo que dejó a las víctimas, sus familias y nuestra comunidad destrozados por el odio. Esperamos que su condena ayudará con el proceso de curación y servirá como recordatorio que nunca se tolerará la violencia motivada por el odio y que el FBI sigue firme en su compromiso a defender la Constitución y los derechos civiles».
Según los documentos presentados en relación con la declaración, poco después de la llegada del Huracán Katrina a Nueva Orleans, Bourgeois y otros hombres blancos, vecinos del barrio de Algiers Point, acordaron utilizar fuerza para alejar a los afroestadounidenses de su barrio. Transportaron árboles caídos para bloquear las calles cerca de sus casas y comenzaron patrullas armadas en el barrio.
El 1 de septiembre del 2005, tres hombres jóvenes afroestadounidenses, D.H, M.A. y C.C., caminaron a Algiers Point en un intento de llegar al desembarque del transbordador, un lugar que las agencias estatales y federales estaban usando como punto de evacuación. Cuando los tres hombres cruzaron la barricada construida por Bourgeois y otros, Bourgeois abrió fuego con una escopeta y lesionó a los tres hombres. Después de que se huyeran, Bourgeois se jactó que había «dado con uno» y prometió «matar a ese [palabra racista] si el hombre llegara a sobrevivir. Bourgeois advirtió a uno de sus vecinos que «se disparará a cualquier cosa que pase por esta calle cuya tez sea más oscura que un saco de papel marrón».
Hubo retrasos en el enjuiciamiento de este caso porque el acusado fue declarado, en repetidas ocasiones, incompetente para ser sometido a juicio tras ser acusado en julio del 2010. La competencia del acusado fue evaluada en seis ocasiones distintas entre el 2010 y el 2018. Tras ser declarado competente en el 2018, Bourgeois se declaró culpable en octubre del 2018.
El FBI llevó a cabo la investigación. El caso fue enjuiciado por el Consejero de Litigios Especiales Jared Fishman y la Abogada de Litigios Mary J. Hahn de la División de Derechos Civiles y el Fiscal Federal Auxiliar para el Distrito Oriental de Luisiana David Howard Sinkman.
Para más información sobre el trabajo del Departamento de Justicia por combatir y prevenir los delitos de odio, vaya a www.justice.gov/hatecrimes: es un único portal con enlaces a recursos del Departamento de Justicia relacionados con delitos de odio para la policía, los medios de comunicación, investigadores, víctimas, grupos de apoyo, y otras organizaciones y personas.
U.S. Attorney’s Office collects almost $3 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
Memphis, TN – U.S. Attorney D. Michael Dunavant announced today that the Western District of Tennessee collected $2,984,442.66 in criminal and civil actions in Fiscal Year 2018. Of this amount, $2,248,992.49 was collected in criminal actions and $735,450.17 was collected in civil actions.
Additionally, the Western District worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $74,578.18 in cases pursued jointly by these offices. Of this amount, $ 27,203.18 was collected in criminal actions and $47,375 was collected in civil actions.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents is nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
"The men and women of the U.S. Attorneys’ offices across the country work diligently day in and day out, to see that 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," said Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
U.S. Attorney D. Michael Dunavant said, "Protection of the United States Treasury and taxpayer resources is a core value and critical mission for this office and the Department of Justice. Equally as important is the priority of collecting restitution for victims of crime in order to punish offenders and provide justice to the victims. I commend the outstanding work of our Criminal Division, Civil Division, and Financial Litigation Unit in effectively pursuing and collecting this amount on behalf of victims of crime and the United States."
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
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U.S. Attorney’s Office Collects Nearly $2 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
WHEELING - U.S. Attorney Bill Powell announced today that the Northern District of West Virginia collected $1,815,859 in criminal and civil actions in Fiscal Year 2018. Of this amount, $654,180 was collected in criminal actions and $1,161,679 was collected in civil actions.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2018. The $14,839,821,650 in collections in FY 2018 represents is nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. 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.
“In addition to our responsibility to protect the public, we have the additional responsibility to recoup, to the extent possible, money improperly taken from victims of criminal or civil wrongdoing, whether the victim is an individual, business, or taxpayer. We take these responsibilities seriously and will continue to do so in coordination with our law enforcement and agency partners,” said Powell.
In 2018, the Northern District of West Virginia recovered $1,091,348 as part of the settlement in the case against several physicians and a kickback scheme. Four doctors agreed to pay back their respective sums after they were accused of participating in a kickback scheme with Southwest Laboratories, Medscan Laboratory, sales representatives affiliated with Southwest and Medscan and others, thereby causing false claims to be submitted to Medicare in violation of the Federal False Claims Act, the Physician Self-Referral law, and the Anti-Kickback Statute. An additional physician paid $650,000 as a part of the case in Fiscal Year 2019.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
U.S. Attorney’s Office Collects $3,916,132 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2018Read the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced today that the U.S. Attorney’s Office for the District of Maine (USAO-ME) collected $3,916,132 in criminal and civil actions in Fiscal Year (FY) 2018. Of this amount, $1,136,220 was collected in criminal actions and $2,779,912 was collected in civil actions.
Additionally, the USAO-ME worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $223,303 in cases pursued jointly by these offices. Of this amount, $6,480 was collected in criminal actions and $216,823 was collected in civil actions.
As a whole, the Justice Department collected nearly $15 billion in civil and criminal actions in the fiscal year ending September 30, 2018. The $14,839,821,650 in collections in FY 2018 is nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. 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 collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the Department of Education.
The USAO-ME, working with partner agencies and divisions, also collected $497,408 in asset forfeiture actions in FY 2018. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney Statement on the Joint Terrorism Task Force (JTTF)Read the Press Release
The decision to withdraw the Portland Police Bureau from the Joint Terrorism Task Force is a mistake that defies logic. It’s disappointing that in spite of the overwhelming evidence presented of JTTF successes in Oregon and across the nation, a majority of the city council chose a politically-expedient broadside against the federal government over the safety and well-being of their constituents. The law enforcement community’s duty and commitment to ensuring public safety and protecting civil rights will not be deterred by the politics of the moment.
-- Billy J. Williams, U.S. Attorney for the District of Oregon
Two Men Charged in Criminal Complaint with RobberyRead the Press Release
HAMMOND- Darren Bell, 19 and Altonio Benson, 27, both of Detroit, Michigan, were charged in a criminal complaint with robbery affecting interstate commerce for the robbery of a jewelry store in Hobart, Indiana, announced U.S. Attorney Kirsch.
The criminal complaint alleges that at approximately 7:05 pm on January 25, 2019, three individuals participated in the robbery of a jewelry store in Hobart, Indiana, while the store was open to customers. At least two individuals smashed display cases with hammers to take jewelry, and the individuals fled the store with approximately $803, 000 in jewelry. Bell and Benson were apprehended a short time later.
U.S. Attorney Kirsch said, “Brazen robberies such as this case commands a swift response from law enforcement. I want to commend all our law enforcement partners for their work in investigating this case. We will continue to aggressively investigate and prosecute these type of crimes in this District.”
The United States Attorney’s Office emphasizes that a criminal complaint is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the Federal Bureau of Investigation’s Gang Response Investigative Team and Hobart Police Department. This case is being prosecuted by Assistant United States Attorney Nicholas J. Padilla.
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Two Men Arrested and Charged for Possession of Dozens of Firearms Including Machine Guns and Silencers Stolen at SHOT Show in Las VegasRead the Press Release
LAS VEGAS, Nev. – Two men made their initial appearances in federal court yesterday on charges related to the possession of 65 firearms, including machine guns, and silencers, stolen at a Las Vegas gun show last month, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Ray Roundtree of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Jamikko Foster, 27, and Eduardo Limon, 28, both of Las Vegas, were each charged with possession of a stolen firearm and possession of an unregistered firearm. Foster is also charged with theft of a firearm from a Federal Firearms Licensee (FFL) and unlawful possession of a machine gun. United States Magistrate Judge Nancy Koppe set a preliminary hearing for both defendants for February 27, 2019.
As alleged in the criminal complaint, from January 20 to 29, 2019, a total of 65 firearms and suppressors, also known as “silencers,” were stolen from the business inventory of three separate FFLs at the 2019 Shooting, Hunting, and Outdoor Trade (SHOT) Show in Las Vegas. The SHOT Show, held annually at a Las Vegas convention center, requires FFLs to either disable or remove the firing pins from all displayed firearms. Based on these circumstances, ATF issued an alert to FFLs to be on the lookout for weapons missing firing pins.
On February 10, a FFL alerted ATF about two men who inquired about purchasing a firing pin for an AR-style firearm. ATF was able to identify Foster and Limon from surveillance footage.
On February 11, law enforcement executed a search warrant at Foster’s apartment where they recovered 56 firearms, machine guns, and silencers. The next day, a search warrant was executed at Limon’s residence and law enforcement recovered an additional 10 firearms and silencers. One of the recovered pistols had a clamp attached to a security cable, which was still attached to the trigger guard.
If convicted, the maximum statutory penalty is 10 years in prison for each count and a $250,000 fine.
The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty in a court of law.
The case was investigated by the ATF San Francisco Field Division’s Las Vegas Field Office and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Phillip N. Smith Jr. is prosecuting the case.
To report a tip about stolen firearms contact the ATF at 1-888-ATF-TIPS (1-888-283-3473).
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Two East Texas Felons Sentenced to Federal Prison for Supervised Release ViolationsRead the Press Release
TEXARKANA, Texas – Two East Texas convicted felons have been sentenced to federal prison for violating the terms of their supervised release in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Johnny McElwrath, 39, of Jefferson, Texas, was sentenced to 33 months in federal prison on Mar. 16, 2015, to be followed by 3 years of supervised release for transportation of illegal aliens. As a condition of his supervised release, McElwrath was required to report all vehicles owned or operated, or in which he had an interested, to the probation office. However, on Dec. 21, 2018, he was arrested while driving a 2007 Hummer registered in his name, which he had not reported to the probation officer. McElwrath admitted this violation before U.S. Magistrate Judge Caroline M. Craven on Feb. 8, 2019 and was sentenced to 16 months in federal prison as a result.
Meekesha Tarsha Mitchell, 42, of Texarkana, Texas, was sentenced to 21 months in federal prison on Oct. 7, 2015, to be followed by 3 years of supervised release for theft of government property. As a condition of her supervised release, Mitchell was required to participate in a program of testing and treatment for drug abuse, under the guidance and direction of the U.S. Probation Office, until such time as she was released from the program by the probation officer. However, on Jan. 28, 2019, Mitchell was unsuccessfully discharged from her substance abuse treatment program. Mitchell admitted this violation before Judge Craven on Feb. 8, 2019, and was sentenced to 6 months in federal prison as a result.
These cases were investigated by the U.S. Probation Office and prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
Two California Men Charged in Plot to Distribute over 30 Pounds of Crystal Methamphetamine and Five Kilos of Fentanyl into New JerseyRead the Press Release
TRENTON, N.J. – Two men have been arrested in Riverside, California, for their alleged roles in shipping over 30 pounds of crystal methamphetamine and conspiring to send an additional five kilos of fentanyl into New Jersey, U.S. Attorney Craig Carpenito announced today.
Isabel Otanez-Sanchez, 25, and Jesus Zavala-Torres, 33, both of San Jacinto, California, are charged by complaint with one count of conspiracy to possess with intent to distribute 500 grams or more of methamphetamine and 400 grams or more of fentanyl. Torres appeared Feb. 13, 2019, before a federal magistrate judge in Riverside, and Sanchez is scheduled to appear in federal court in Riverside today.
According to the complaint:
In September 2018, law enforcement officers received information that an individual known as “Pancho,” later identified as Sanchez, was shipping large quantities of narcotics from California to New Jersey. On Jan. 28, 2019, Sanchez agreed to send 30 pounds of methamphetamine to a law enforcement confidential source (the “CS”) in Atlantic City, New Jersey. Torres and Sanchez hid 28 packages of methamphetamine inside a salvaged vehicle that was shipped to New Jersey from California via a car carrier service. Agents recovered the methamphetamine from the car’s gas tank.
On Feb. 12, 2019, the CS met with Sanchez and Torres in Riverside to pay for the methamphetamine. At this meeting, Sanchez and Torres also agreed to sell an additional five kilos of fentanyl to the CS, which would be shipped to the CS in New Jersey in the same manner as the methamphetamine. After agreeing to the sale of the fentanyl, Torres left the meeting to retrieve two kilos of fentanyl to show to the CS prior to shipment. As Torres was driving back to the meeting, he was stopped by local law enforcement officers and two kilos of fentanyl were recovered from his automobile.
Both defendants face 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 Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations (HSI), Cherry Hill, under the direction of Special Agent in Charge Brian Michael in Newark, with the investigation leading to the arrests. He also thanked HSI in Riverside; the N.J. State Police; the Hemet, California, Police Department; and the Atlantic City Task Force for their assistance.
The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney's Office Criminal Division in Trenton.
The charge and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Tijuana Trucker Pleads Guilty to Conspiring to Import Six Tons of Marijuana to the United StatesRead the Press Release
NEWS RELEASE SUMMARY – February 14, 2019
SAN DIEGO – Jesus Armando Tiznado-Duran, a Mexican citizen, pleaded guilty today in federal court before U.S. Magistrate Judge Andrew G. Schopler to Count 1 of an Information charging him with knowingly and intentionally conspiring with other persons to import approximately 5705.60 kilograms (12,552.32 pounds) of marijuana.
Through his plea agreement, Tiznado-Duran, a Tijuana, Mexico resident and professional truck driver, admitted that on November 6, 2018 he was dispatched by his employer with an empty trailer to a plastics company in Tijuana to pick up a shipment slated for delivery in the United States. Tiznado-Duran deviated from the route he was supposed to take and stopped at a predetermined location in Mexico, where his trailer was loaded with more than 6 tons of marijuana and approximately 15.54 kilograms (34.19) of heroin. Tiznado-Duran then delivered the trailer to another truck driver who was scheduled to drive the shipment of plastics from Tijuana, Mexico into the United States. When that truck driver drove the trailer into the United States at the Otay Mesa, California Port of Entry and presented an invoice listing the contents of the trailer as “plastic fittings,” Customs and Border Protection officials inspected the trailer and discovered it contained marijuana and heroin.
The federal narcotics charge to which Tiznado-Duran has pleaded guilty carries a mandatory minimum ten year sentence and a maximum life. Tiznado-Duran is scheduled to be sentenced on May 6, 2019 before U.S. District Judge Barry Ted Moskowitz in San Diego.
DEFENDANT Case Number 18cr5231-BTM
Jesus Armando Tiznado-Duran Age: 28 Tijuana, MX
SUMMARY OF CHARGES
Conspiracy to Import a Controlled Substance – Title 21, U.S.C., Sections 952, 960, and 963
Maximum penalty: life imprisonment, and a mandatory minimum 10 years; $10,000,000 fine, and at least five years’ supervised release up to life.
AGENCY
Homeland Security Investigations
Customs and Border Protection
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Three-Time Felon Who Sold a Semi-Automatic Rifle Sentenced to 30 MonthsRead the Press Release
PHOENIX – On Feb. 11, 2019, Ryan Patrick Michell, 39, of Phoenix, Ariz., was sentenced by U.S. District Judge Hon. G. Murray Snow to 30 months’ incarceration, followed by three year supervised release. On Sept. 27, 2018, a federal jury found Michell guilty of two counts of felon in possession of a firearm and ammunition.
In October 2017, the Federal Bureau of Investigation (FBI) began to investigate Michell after an attempted suspicious purchase of potassium cyanide from an online marketplace.
The testimony at trial showed that on Nov. 27, 2017, Michell sold a Norinco SKS 7.62 x 39 rifle, along with four high-capacity round magazines, and one-hundred rounds of 7.62x39 ammunition to a buyer on backpage.com. On Dec. 1, 2017, the FBI served a search warrant on Michell’s Phoenix home and discovered four rounds of .338 Lapua ammunition. Michell was not legally permitted to possess firearms or ammunition due to three prior felony convictions in the State of Arizona.
The investigation was conducted by the Federal Bureau of Investigation, U.S. Postal Service, Tempe Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution was handled by Assistant U.S. Attorney Kristen Brook, District of Arizona, Phoenix.
CASE NUMBER: CR-17-01690-PHX-GMS
RELEASE NUMBER: 2019-014_Michell
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Tax Return Preparer Pleads Guilty to Filing False Claims for Tax RefundsRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that Kimberly Bagneski (age 48) of Waupun, Wisconsin, has entered a guilty plea in federal court to knowingly taking part in a scheme to defraud the United States by submitting false claims for income tax refunds to the IRS.
According to a written plea agreement, from approximately January 2011 through February 2016, assisted by a family member she had recruited, Bagneski prepared and filed false tax returns for third parties. In total, Bagneski assisted in the preparation and filing of at least 20 false federal income tax returns that sought more than $90,000 in fraudulent tax refunds. Bagneski also assisted in the preparation and filing of at least 19 false state income tax returns. All of the returns included a false Schedule C fraudulently reporting business income or losses, and many claimed inflated or completely fabricated deductions (medical expenses, home mortgage interest deductions, and charitable contributions) and tax credits (education tax credit, additional child tax credit, and earned income credit).
To obtain the fraudulent tax refunds, Bagneski instructed the IRS to send the refunds to a bank account she controlled or to split the refund between her account and an account controlled by the family member she recruited.
Bagneski faces up to five years in prison and fines of up to $250,000. She is scheduled to be sentenced on June 13, 2019.
This matter was investigated by the Internal Revenue Service Criminal Investigation. This case is being prosecuted by Assistant United States Attorney Matthew Jacobs.
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For further information contact:
Public Information Officer Kenneth Gales (414) 297-1700
Tank vessel operator convicted and sentenced for oil discharge offense, captain indictedRead the Press Release
LAKE CHARLES, La. – Interorient Marine Services Limited, a vessel operating company, was convicted and sentenced yesterday in the Western District of Louisiana, for maintaining false and incomplete records relating to the discharge of oil from the tank vessel Ridgebury Alexandra Z, announced Assistant Attorney General Jeffrey Bossert Clark of the Environment and Natural Resources Division and United States Attorney David C. Joseph for the Western District of Louisiana.
Interorient Marine Services Limited admitted that oil cargo residues and oily bilge water were illegally dumped from the Ridgebury Alexandra Z directly into the ocean without being properly processed through required pollution prevention equipment. The company also admitted that false entries were made in the vessel’s Oil Record Book to conceal the illegal dumping. Specifically, senior ship officers employed by Interorient Marine Services Limited discharged oily waste into the ocean by flushing the vessel’s pollution prevention equipment sensor with fresh water. This flushing of the sensor tricked the system into detecting a much lower effluent oil content than what was actually being discharged. These senior officers then falsified the vessel’s Oil Record Book, recording that 87,705 gallons of oily wastewater had been discharged properly through the pollution prevention equipment, when in fact they knew that this pollution prevention equipment had been tampered with.
“By illegally dumping oily waste into the ocean, Interorient intentionally violated federal law that protects valuable marine resources and wildlife,” said Assistant Attorney General Clark. “This conviction shows that corporations and individuals that willfully flout our nation’s environmental laws will be held accountable by criminal prosecution.”
“My office is charged with enforcing federal and international laws designed to protect our oceans from pollutants carried by commercial vessels,” U.S. Attorney Joseph stated. “Tankers are required to offload their waste oil at disposal facilities at ports and not into the Gulf of Mexico. This case should serve as a deterrent to other individuals and companies that ignore our laws, pollute our waters, and damage our environment.”
“The Coast Guard takes its responsibilities to protect the marine environment seriously,” said U.S. Coast Guard Commander Daniel H. Cost, CO of Marine Safety Unite Lake Charles. “When potential criminal violations of our nation's pollution laws are identified, we work closely with the Department of Justice to ensure any illegal activities are prosecuted to the fullest extent of law.”
Interorient Marine Services Limited pleaded guilty to a felony violation of the Act to Prevent Pollution from Ships, 33 U.S.C. § 1908(a), for failing to accurately maintain the Ridgebury Alexandra Z’s Oil Record Book. Under the terms of the plea agreement, the company will pay a total fine of $2 million and serve a 4-year term of probation, during which all vessels operated by the company and calling on U.S. ports will be required to implement a robust Environmental Compliance Plan.
The vessel’s captain, Vjaceslavs Birzakovs, was charged in a six-count indictment by a Grand Jury in the Western District of Louisiana on November 29, 2018, for his involvement in this case. The indictment alleges that Birzakovs directed circumvention of the vessel’s pollution prevention equipment, falsified records, obstructed justice, made false statements, and conspired with other crewmembers to falsify the vessel’s Oil Record Book and to obstruct the U.S. Coast Guard’s enforcement of the law in conjunction with the illegal discharges from the Ridgebury Alexandra Z. The charges and allegations contained in Birzakovs’ indictment are merely accusations, and he is presumed innocent unless and until proven guilty.
This case was investigated by the U.S. Coast Guard Marine Safety Unit Lake Charles, and the U.S. Coast Guard Investigative Service. The case is being prosecuted by Trial Attorney Stephen Da Ponte of the Environmental Crimes Section of the Department of Justice, and Assistant U.S. Attorney Daniel J. McCoy of the U.S. Attorney's Office for the Western District of Louisiana.
Tank Vessel Operator Convicted and Sentenced for Oil Discharge Offense, Vessel Captain IndictedRead the Press Release
Interorient Marine Services Limited, a vessel operating company, was convicted and sentenced yesterday in the Western District of Louisiana, for maintaining false and incomplete records relating to the discharge of oil from the tank vessel Ridgebury Alexandra Z, announced Assistant Attorney General Jeffrey Bossert Clark of the Environment and Natural Resources Division and United States Attorney David C. Joseph for the Western District of Louisiana.
Interorient Marine Services Limited admitted that oil cargo residues and oily bilge water were illegally dumped from the Ridgebury Alexandra Z directly into the ocean without being properly processed through required pollution prevention equipment. The company also admitted that false entries were made in the vessel’s Oil Record Book to conceal the illegal dumping. Specifically, senior ship officers employed by Interorient Marine Services Limited discharged oily waste into the ocean by flushing the vessel’s pollution prevention equipment sensor with fresh water. This flushing of the sensor tricked the system into detecting a much lower effluent oil content than what was actually being discharged. These senior officers then falsified the vessel’s Oil Record Book, recording that 87,705 gallons of oily wastewater had been discharged properly through the pollution prevention equipment, when in fact they knew that this pollution prevention equipment had been tampered with.
“By illegally dumping oily waste into the ocean, Interorient intentionally violated federal law that protects valuable marine resources and wildlife,” said Assistant Attorney General Clark. “This conviction shows that corporations and individuals that willfully flout our nation’s environmental laws will be held accountable by criminal prosecution.”
“My office is charged with enforcing federal and international laws designed to protect our oceans from pollutants carried by commercial vessels,” U.S. Attorney Joseph stated. “Tankers are required to offload their waste oil at disposal facilities at ports and not into the Gulf of Mexico. This case should serve as a deterrent to other individuals and companies that ignore our laws, pollute our waters, and damage our environment.”
“The Coast Guard takes its responsibilities to protect the marine environment seriously,” said U.S. Coast Guard Commander Daniel H. Cost, CO of Marine Safety Unite Lake Charles. “When potential criminal violations of our nation's pollution laws are identified, we work closely with the Department of Justice to ensure any illegal activities are prosecuted to the fullest extent of law.”
Interorient Marine Services Limited pleaded guilty to a felony violation of the Act to Prevent Pollution from Ships, 33 U.S.C. § 1908(a), for failing to accurately maintain the Ridgebury Alexandra Z’s Oil Record Book. Under the terms of the plea agreement, the company will pay a total fine of $2 million and serve a 4-year term of probation, during which all vessels operated by the company and calling on U.S. ports will be required to implement a robust Environmental Compliance Plan.
The vessel’s captain, Vjaceslavs Birzakovs, was charged in a six-count indictment by a Grand Jury in the Western District of Louisiana on Nov. 29, 2018, for his involvement in this case. The indictment alleges that Birzakovs directed circumvention of the vessel’s pollution prevention equipment, falsified records, obstructed justice, made false statements, and conspired with other crewmembers to falsify the vessel’s Oil Record Book and to obstruct the U.S. Coast Guard’s enforcement of the law in conjunction with the illegal discharges from the Ridgebury Alexandra Z. The charges and allegations contained in Birzakovs’ indictment are merely accusations, and he is presumed innocent unless and until proven guilty.
This case was investigated by the U.S. Coast Guard Marine Safety Unit Lake Charles, and the U.S. Coast Guard Investigative Service. The case is being prosecuted by Trial Attorney Stephen Da Ponte of the Environmental Crimes Section of the Department of Justice, and Assistant U.S. Attorney Daniel J. McCoy of the U.S. Attorney's Office for the Western District of Louisiana.
St. Louis Metropolitan Police Officer Charged with Federal Civil Rights ViolationRead the Press Release
St. Louis – St. Louis Metropolitan Police Officer Kenneth A. Grooms, II, 38, was charged today with one misdemeanor count of deprivation of rights in violation of Title 18, United States Code, Section 242. According to the charging document, on or about May 5, 2018, Grooms willfully deprived “John Doe” of his constitutional right to be free from unreasonable seizure. This crime carries a maximum possible sentence of one year in prison, a fine of up to $100,000, or both imprisonment and a fine.
The case is being investigated by the Federal Bureau of Investigation. Assistant United States Attorneys Reginald Harris and Jennifer Winfield are handling the case for the United States Attorney’s Office.
Charges set forth in the Information are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
St. Joseph Man Indicted on Child Pornography ChargesRead the Press Release
URBANA, Ill. – An initial trial date in March has been scheduled for a St. Joseph, Ill., man, William M. Bell, 39, who has been arrested and indicted on federal child pornography charges. Bell, a former information technology employee of Monticello, Ill., community unit school district 25, was arrested on Feb. 8, on charges returned by the grand jury on Feb. 5. The indictment had remained sealed pending Bell’s arrest. Following his arrest, Bell was ordered to remain in the custody of the U.S. Marshals Service pending a detention hearing which was held this morning.
At today’s hearing, U.S. District Judge Harold A. Baker ordered Bell to remain detained in law enforcement custody. Trial for Bell is scheduled on March 5, 2019, before U.S. District Judge Sue E. Myerscough, in Springfield.
The indictment alleges that in July and August 2018, Bell used a computer or device to send visual depictions of minors engaged in sexually explicit conduct, and in November 2018, that Bell possessed images of child pornography.
If convicted, the statutory penalty for each count of transportation of child pornography (two counts) is five to 20 years in prison, and a fine of up to $250,000; possession of child pornography carries a penalty of up to 10 years in prison, and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson. The charges are the result of an investigation by the Federal Bureau of Investigation, the Champaign County Sheriff’s office, and the Internet Crimes Against Children Task Force of the Illinois Attorney General’s Office.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Six Members and Associates of Brooklyn “Eight Trey Cowboys” and “Bloods” Street Gangs Arrested for Trafficking Narcotics and FirearmsRead the Press Release
Earlier today, a complaint was unsealed in federal court in Brooklyn charging seven defendants variously with narcotics distribution in the Flatbush neighborhood of Brooklyn and firearms trafficking relating to the sale of an AK-47 rifle. The defendants Rahmel Smith, also known as “Mello,” Michael Martin, also known as “Scooter,” Jamel Aldridge, also known as “Vooks,” Tiffany Lanier and Shakayna Wheeler, who are members and associates of the Eight Trey Cowboys street gang; Shakim Carr, also known as “Sha,” a member of the Bloods street gang, and Shawn Taylor were arrested this morning and will be arraigned this afternoon before United States Magistrate Judge Steven M. Gold.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the charges and arrests
“The dangerous mix of street gangs, drug dealing and illegal firearms poses a direct threat to the safety and quality of life of our residents,” stated United States Attorney Donoghue. “This Office and our partners in the FBI and the NYPD will continue to target and eradicate criminal gangs that contribute to addiction and violence in our communities.”
“The FBI is keenly focused on combating and dismantling local street gangs,” stated FBI Assistant Director-in-Charge Sweeney. “The suspects arrested in this case allegedly spread drugs and crime in our local communities where they believe they have to protect their turf. The FBI New York Metro Safe Streets Task Force works day in and day out to stop these gangs from terrorizing innocent people and spreading deadly illegal drugs.”
According to court documents, since early 2017, Smith, Carr, Martin, Aldridge, Lanier and Wheeler distributed crack, cocaine, heroin and marijuana. Smith, a leader of the Eight Trey Cowboys, directed fellow gang members Martin and Aldridge to sell narcotics on a daily basis, as well as Bloods member Carr, who was one of Smith’s main distributors. Based on wire interceptions, Lanier and Wheeler’s roles in the narcotics trafficking organization included preparing, packaging, delivering and accepting money for the narcotics and storing the narcotics at their residences. Additionally, Taylor is charged with selling Smith a Romarm Cugir rifle, commonly referred to as an AK-47, which was later resold by Smith to a confidential informant.
If convicted of the narcotics charges, Smith faces up to life in prison, Carr, Aldridge, Martin, Wheeler and Lanier face up to 20 years’ imprisonment. If convicted of the firearms charge, Taylor faces up to 10 years’ imprisonment.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.
This case was investigated by the FBI and NYPD 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.
This case was brought as 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 case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Penelope J. Brady, Erin Reid and Temidayo Aganga-Williams are in charge of the prosecution.
The Defendants:
RAHMEL SMITH (also known as “Mello”)
Age: 29
Brooklyn, New YorkSHAKIM CARR (also known as “Sha”)
Age: 37
Brooklyn, New YorkMICHAEL MARTIN (also known as “Scooter”)
Age: 26
Brooklyn, New YorkJAMEL ALDRIDGE (also known as “Vooks”)
Age: 35
Brooklyn, New YorkTIFFANY LANIER
Age: 37
Brooklyn, New YorkSHAKAYNA WHEELER
Age: 25
Brooklyn, New YorkSHAWN TAYLOR
Age: 37
Brooklyn, New YorkE.D.N.Y. Docket No. 19-MJ-137
Sioux Falls Man Charged with Failure to RegisterRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
David George Flute, III, age 29, was indicted on February 13, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 14, 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, 5 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Flute, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction, did fail to register and update his registration as required.
The charge is merely an accusation and Flute is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Flute was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Shreveport man indicted on federal firearms and methamphetamine chargesRead the Press Release
SHREVEPORT, La. – U.S. Attorney David C. Joseph announced that a federal grand jury returned a three-count indictment yesterday afternoon charging Glenn Frierson, 38, of Shreveport, with felon in possession of a firearm, possession with the intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime. Local authorities arrested Frierson on January 15, 2019, in connection with the death of Shreveport Police Officer Chateri Payne.
According to the indictment, Frierson possessed a Smith & Wesson, model SD40, .40-caliber pistol, ammunition and methamphetamine on May 3, 2018. The indictment also alleges that Frierson possessed the Smith & Wesson in furtherance of a drug trafficking crime related to the methamphetamine possession charge. Frierson is a convicted felon and under federal law, it is illegal for him to possess a firearm or ammunition.
If convicted, the defendant faces 10 years in prison for being a felon in possession of a firearm, 20 years in prison for the drug distribution and 20 years in prison for possessing a firearm in furtherance of drug trafficking. He also faces five years of supervised release and a fine of up to $2 million.
The ATF and the Shreveport Police Department investigated the case. Assistant U.S. Attorney Cadesby B. Cooper is prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Selling Two Guns Leads to over Three Years in Federal Prison for Convicted FelonRead the Press Release
A Nashua man with multiple prior felony convictions who sold two firearms in July 2018 was sentenced today to more than three years in federal prison.
Dalton Mathias Prochaska, age 27, from Nashua, Iowa, received the prison term after a November 14, 2018 guilty plea to being a felon in possession of a firearm.
In a plea agreement, Prochaska admitted selling two guns to different people. Within a five-day period in July 2018, Prochaska sold a 9mm pistol and a .45 caliber pistol. Prochaska was previously convicted of three felony offenses, two burglaries and a forgery.
Prochaska was sentenced in Cedar Rapids by United States District Court Judge C. J. Williams. Prochaska was sentenced to 37 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Prochaska 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 Attorney Emily K. Nydle and investigated by Nashua Police Department, the Iowa State Patrol, Chickasaw Sheriff’s Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-Cr-2056.
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Sedalia Man Indicted for Providing Middle School Students with Marijuana Laced with MethamphetamineRead the Press Release
DENVER – John Bruce Fifield, age 47, of Sedalia, Colorado, was indicted by a federal grand jury last week on charges of distributing methamphetamine and marijuana to students at Woodland Park Middle School, U.S. Attorney Jason Dunn and DEA Denver Division Special Agent in Charge William McDermott announced. Fifield made his initial court appearance where he was advised of his rights and the charges pending against him. He was later released on a $25,000 unsecured bond with home detention. His case is now pending.
Fifield was first charged by Criminal Complaint on January 18, 2019. He was indicted on February 7, 2019. The defendant was arraigned and entered a not guilty plea on February 8, 2019.
According to the facts contained in the affidavit in support of the Criminal Complaint, on November 18, 2018, an investigation began after the Teller Sheriff’s Office Narcotics Team (TNT) received information that Fifield was supplying drugs to Woodland Park Middle School students. The marijuana the defendant provided to students was allegedly coated with methamphetamine. On November 15, 2018 it was reported by local police that multiple students had been found with drug paraphernalia that allegedly was provided by Fifield.
“In a case like this involving young children, we will aggressively pursue federal charges and mandatory minimum sentencing every time,” said U.S. Attorney Jason Dunn.
“The nature of this investigation is very disturbing for the youth of our Country. The DEA is committed to protecting our children from cycle of drug abuse,” said DEA Special Agent in Charge William McDermott.
This matter is being investigated jointly by the DEA Colorado Springs Resident Office and the Teller Sheriff’s Office Narcotics Team. The case is being handled by Assistant U.S. Attorney Kelly Winslow.
The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.
Saucier Man Sentenced to over Six Years in Federal Prison for Illegally Possessing FirearmRead the Press Release
Gulfport, Miss. –Tyler Bachtel, 23, of Saucier, was sentenced yesterday by U.S. District Judge Louis Guirola, to 78 months in federal prison followed by three years of supervised release for possession of a firearm by a felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Bachtel was also ordered to pay a $5,000 fine.
On November 18, 2017, the Harrison County Sheriff’s Department arrested Bachtel after he refused to yield to a deputy who initiated a traffic stop. During the deputy’s pursuit of Bachtel’s vehicle, Bachtel threw a shotgun out of the window. Bachtel jumped out of the vehicle while it was still moving, and was arrested while he attempted to flee. Bachtel had been previously convicted of felony possession of a controlled substance in Harrison County Circuit Court.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case with assistance from the Harrison County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Emily Nobile.
San Francisco Man Sentenced to Twelve and A Half Years in Prison for Scheme to Use Internet to Entice A Minor to Engage in Sexual ActivityRead the Press Release
SAN FRANCISCO – Roger Dale Boshers was sentenced today to 150 months in prison for coercing and enticing a minor to engage in sexual activity, announced United States Attorney David L. Anderson and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin. The sentence was handed down by the Honorable William H. Orrick, United States District Judge.
Boshers, 64, of Bethel Island, Calif., pleaded guilty to the charge on November 29, 2018. According to the plea agreement, Boshers admitted that between April 6, 2018, and April 11, 2018, he exchanged messages online with a person he believed was a 14-year-old girl. Boshers sent this person sexually explicit messages and a photograph of his genitals. Ultimately, Boshers arranged to meet the purported 14-year-old girl on April 11, 2018, to engage in sexual activity. When Boshers arrived at the prearranged meeting location, he was stopped by law enforcement officers and placed under arrest. Boshers later discovered that the person he had exchanged messages with was in fact an undercover police officer.
In addition, Boshers acknowledged that on October 19, 2017, he possessed multiple electronic devices, including three laptops and several hard drives, on which he stored images of females he believed to be under the age of eighteen engaged in sexually explicit conduct. Boshers also admitted that as early as August 31, 2017, he used an internet-based messaging application to distribute at least three pictures of children engaged in sexually explicit activity.
On May 31, 2018, a federal grand jury returned a three-count indictment charging Boshers with one count of distribution of child pornography, in violation of 18 U.S.C. § 2252(a)(2) and (b)(1); one count of possession of child pornography, in violation of 18 U.S.C. §§ 2252(a)(4)(B) and (b)(2); and one count of coercion and enticement of a minor to engage in sexual activity, in violation of 18 U.S.C. § 2422(b). Boshers pleaded guilty to the coercion and enticement charge and the other two charges were dismissed. As a condition of his plea agreement, Boshers was ordered to pay restitution to the victims identified in the child pornography counts.
In addition to the prison term, Judge Orrick ordered that Boshers serve a life term of supervised release and to register as a sex offender. Boshers has been in custody since his April 11, 2018, arrest and will begin serving his sentence immediately.
Assistant United States Attorney Sloan Heffron is prosecuting the case with the assistance of Kimberly Richardson. This prosecution is the result of an investigation by Homeland Security Investigations, the San Francisco Police Department, the Contra Costa County District Attorney’s Office, the Contra Costa County Sheriff’s Office, and the Silicon Valley Internet Crimes Against Children Task Force.
Members of the public who have information regarding suspected child predators or suspicious activity should contact HSI through the toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form at https://www.ice.gov/webform/hsi-tip-form. Both are staffed around the clock by investigators. Suspected child sexual exploitation or missing children may also be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.
San Diego Physical Therapy Clinics’ Owners Pay $450,000 to Resolve Fraud AllegationsRead the Press Release
Assistant U.S. Attorney Dylan M. Aste (619) 546-7621
NEWS RELEASE SUMMARY – February 13, 2019
Two San Diego physical therapy clinics and their owners have paid $450,000 to resolve allegations that they fraudulently billed military healthcare provider TRICARE for medical services that were supposedly performed by qualified medical doctors, but were actually provided by unqualified and unauthorized employees.
South Bay Physical Medicine, Inc. and Direct Health Medical Center, Inc. d/b/a San Diego Spine and Rehabilitation were physical therapy clinics. Brett Allan, Sr., Brett Allan, Jr. and Jeff Allan owned the clinics.
TRICARE is the health care program for uniformed service members, retirees, and their families. TRICARE specifically limits billing privileges to enrolled providers for a variety of reasons, including the safety of patients. Some incidental services rendered by non-authorized providers can be billed as “incident to” the services of an enrolled physician, but only under rare circumstances and when the physician provides direct supervision. The United States alleged that the Allans violated the False Claims Act by billing TRICARE for physical therapy services provided solely by unqualified and unauthorized personnel and without the necessary physician supervision.
“The United States Attorney’s Office works hard to safeguard the integrity of the TRICARE program and the safety of our soldiers and their family members,” said U.S. Attorney Robert Brewer. “Health care fraud hurts the entire health care system, from taxpayers down to honest providers and innocent patients. We are committed to using all available remedies, both civil and criminal, to combat health care fraud.”
“The announced resolution is a significant victory because the integrity of the U.S. military's health care program is of utmost importance to our military personnel and their families,” said Bryan D. Denny, Special Agent in Charge of the Defense Criminal Investigative Service, Western Field Office. “DCIS remains committed to working with its law enforcement partners and the U.S. Attorney's Office to combat health care fraud and, more specifically, bring to justice those who seek to defraud the military health care system.”
“When health care providers participate in fraudulent billing schemes in order to increase profits, they steal from the pockets of the taxpayer and jeopardize federal healthcare programs,” said John Brown, FBI Special Agent in Charge. “San Diego is a military town and military personnel represent a large part of our community. It goes without saying that the FBI is committed to working with our partners to aggressively investigate health care providers that defraud the DoD, in order to preserve American taxpayer dollars intended to care for our Warfighters, their family members, and military retirees.”
The Government’s resolution of this matter illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, and abuse can be reported at https://www.tricare.mil/ContactUs/ReportFraudAbuse.
This matter was handled by Assistant U.S. Attorney Dylan M. Aste of the U.S. Attorney’s Office for the Southern District of California, the Federal Bureau of Investigation, the Defense Criminal Investigative Service, and the Defense Health Agency Program Integrity Office.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Restaurant Owner Sentenced to A Year in Prison for Tax Evasion and Employing Illegal AliensRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Sergio Ramses Mucino, 48, of Buffalo, NY, who was convicted of tax evasion and conspiracy to unlawfully employ more than ten aliens during any 12-month period, was sentenced to serve 12 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that the defendant owned and operated multiple restaurants in the Western New York area, including: Don Tequila, located at 73 Allen Street, Buffalo; El Agave located at 3870 Union Road, Cheektowaga, NY; Agave, located at 765 Elmwood Avenue, Buffalo; and La Divina, located at 2896 Delaware Avenue, Kenmore, NY.
For the tax years 2013, 2014, and 2015, Mucino owed substantial federal income tax as a result of income generated at the his restaurants through his employment of illegal aliens. However, the defendant concealed cash payments, failed to collect payroll taxes, paid employees with cash, and placed assets in the names of others, to evade payment of income taxes totaling $1,006,161.
Between March of 2014 and October 16, 2016, Mucino, along with co-defendants Jose Sanchez-Ocampo and Marguin Sanchez, conspired to hire at least 10 illegal aliens to work in the defendant’s restaurants. In furtherance of the conspiracy, Mucino provided money to Sanchez to purchase homes where the alien employees would live, including 149 North End in Kenmore, and 4024 Union Road in Cheektowaga. The defendant also paid rent for nine apartments where the alien employees lived. The two houses and nine apartments were within close proximity to the defendant’s restaurants.
Mucino is forfeiting nearly $40,000 in cash that was seized from his restaurants, a 2009 Porsche Boxster that the defendant purchased with his illegal profits, and another $1,000,000 representing additional profits made from operating the restaurants against the laws of the United States. Previously, Mucino forfeited two houses, which housed some of the illegal workers, as well as another $35,000 in cash by managers of Mucino’s restaurants.
Jose Sanchez-Ocampo and Marguin Sanchez were previously convicted.
“Those employers who evade immigration laws and put their own financial interests above the responsibilities incurred by all citizens of our country do great harm to the fabric of our Nation,” noted U.S. Attorney Kennedy. “While immigration and economic opportunity are part of the warp of our Nation’s fabric, their value exists only when interwoven into the weft of unyielding principles such as fairness and respect for the law. Through this prosecution we seek to reinforce our adherence to those important and enduring principles, as without them, the fabric of our Nation will be frayed into a tattered collection of individual threads of self-interest.”
“Today’s outcome marks the successful culmination of a complex worksite investigation and demonstrates our intent to hold businesses accountable who ignore their employment and tax obligations,” said Kevin Kelly, HSI Buffalo Special Agent-in-Charge. “Employers who knowingly hire unauthorized workers are not only contributing to the magnet that fuels illegal immigration, but these illegal practices also undercut legitimate businesses who play by the rules.”
Today’s sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in- Charge Kevin Kelly, the Internal Revenue Service, Criminal Investigations Division, under the direction of Jonathan D. Larsen, Acting Special Agent-in-Charge, New York Field Office, and the New York State Department of Taxation and Finance, under the direction of Executive Deputy Commissioner Nonie Manion.
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Registered Sex Offender Sentenced to 20 Years in Prison for Attempting to Coerce a MinorRead the Press Release
COLUMBUS, Ohio – John C. Fortner, 44, of Chillicothe, was sentenced in U.S. District Court to 240 months in prison for attempting to coerce a minor while registered as a sex offender.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Franklin County Sheriff Dallas Baldwin, as well as members of both the FBI’s Cyber Crimes Task Force and the Franklin County Sheriff’s Office Internet Crimes Against Children (ICAC) Task Force, announced the sentence handed down today by U.S. District Judge Michael H. Watson.
According to court documents, a task force officer with the FBI Cyber Crimes Task Force was posing undercover online as the mother of minor children. In August 2017, the officer posted a web advertisement stating he was looking to chat with people interested in “taboo fetishes.”
Fortner emailed the officer asking “can we do your daughter or son?”
Fortner asked to be connected to “any other that would let me f***” and began communicating with a second undercover officer, who investigates cyber crime with the Franklin County Sheriff’s Office Internet Crimes Against Children (ICAC) Task Force. He told that officer he heard the persona had a nice daughter who was 13 years old. He asked “you and your daughter play with guys much?” Fortner also asked if the daughter was cute and offered to meet with them.
Fortner and the officer planned to meet in a public place, and, if the meeting went well, to later meet in a hotel for sexual purposes.
On August 21, 2017, Fortner asked the officer to pick him up at a gas station in Chillicothe for their meeting. Fortner was subsequently arrested.
Fortner was convicted in 2015 in Texas for possession of child pornography and in 2016 in Belmont County, Ohio for importuning and attempted unlawful sexual conduct with a minor. As a result, he was a registered sex offender at the time of his new offense.
Fortner pleaded guilty in this current case in May 2018.
U.S. Attorney Glassman commended the cooperative investigation by the FBI Cyber Crimes Task Force and the Franklin County ICAC, as well as Assistant United States Attorneys Heather A. Hill and Noah R. Litton, who are representing the United States in this case.
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