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Thursday 29 November 2018
Ada Man Sentenced to 163 Months for Enticement of A MinorRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Floyd Preston Miller III, age 39, of Ada, Oklahoma, was sentenced to 163 months’ imprisonment and 10 years supervised release for Enticement Of A Minor Using The Internet, in violation of Title 18, United States Code, Section 2422(b). Miller was found guilty by a jury on February 21, 2018 following a two day trial.
Evidence presented at trial proved that from November 2015 until February 2016, in the Eastern District of Oklahoma, the defendant used the Internet, a facility and means of interstate commerce, to attempt to persuade, induce, and entice an individual whom he believed was 15 years old, to engage in sexual activity for which a person can be criminally charged under Oklahoma State law. The verdict and sentence was the result of an investigation by the Las Vegas Internet Crimes against Children (ICAC) Task Force, the North Las Vegas Police Department, the Federal Bureau of Investigation, and the United States Attorney’s Office.
United States Attorney Brian J. Kuester said, “Preying upon children, whether in person or via the internet, is not only illegal, it is despicable. Sometimes perpetrators gain an advantage over law enforcement agents because the internet allows there to be distance from victims which span geographic and jurisdictional boundaries. But in this case the ICAC Task Force in Las Vegas, the North Las Vegas Police, the FBI, and the U.S. Attorney’s Office worked together to overcome the challenges that are inherent in Internet Enticement cases to achieve justice for the victim.”
“Parents and guardians, be aware that predators do exist and they can enter your children’s rooms without ever stepping foot in the same state. Stay informed of the latest trends in chat rooms, social media, gaming, and the various phone apps that make it easy for strangers to seek out and communicate with children. Be aware of their phone activity and internet history. Just because a child is “safely” at home no longer means that predators have no access to them. Predators are using the internet, are very savvy with it, and are very much aware of how to lure children.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Edward Snow represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
APC Paper Group Pleads Guilty to Violating Clean Water ActRead the Press Release
SYRACUSE, NEW YORK – APC Paper Group of New York, Inc., which operates a paper mill in Norfolk, New York, pled guilty today in federal court in Syracuse to negligently discharging wastewater into the Raquette River between 2013 and 2015, in violation of the Clean Water Act, and was sentenced to a fine of $125,000, announced United States Attorney Grant C. Jaquith; Tyler Amon, Special Agent in Charge of the U.S. Environmental Protection Agency’s Criminal Investigation Division (EPA-CID) in New York; and Bernard Rivers, Director of Law Enforcement, New York State Department of Environmental Conservation (DEC).
In pleading guilty, APC Paper Group admitted that between January 2013 and September 2015, its paper mill in Norfolk repeatedly violated the daily maximum and monthly average limits of bio-chemical oxygen demand (“BOD”) in its wastewater discharges into the Raquette River. BOD is the amount of dissolved oxygen necessary for microorganisms in the water to break down organic material. BOD levels also provide an index for measuring the effect discharged wastewater will have on a body of fresh water receiving it. In this case, the paper mill’s Clean Water Act permit restricted the amount of BOD the paper mill could discharge through its wastewater on a daily and monthly basis. As part of the guilty plea, APC Paper Group admitted in court today that a former employee, Michael Ward, who previously pled guilty to similar criminal charges in federal court, was aware of the BOD exceedances, failed to report them to his superiors at APC Paper Group, and prepared false and fraudulent monthly reports that were submitted to DEC. APC Paper Group further admitted that it failed to meaningfully supervise Ward and failed to verify the accuracy of the discharge reports the company sent to DEC and that its negligence led to the illegal discharges of wastewater containing excessive amounts of BOD.
United States Attorney Jaquith said, “In pleading guilty today, APC Paper Group accepted responsibility for its paper mill’s negligent discharges of polluted wastewater into the Raquette River, and for its failure to supervise adequately the responsible employee. Securing environmental compliance and appropriate corporate and individual accountability for illegal pollution are the key components of our continuing commitment to work with the U.S. Environmental Protection Agency and the New York State Department of Environmental Conservation to enforce vigorously the laws that protect our air, water, and land for the benefit of all.”
“New Yorkers expect their waterways to be clean and safe from excessive industrial discharges,” said Special Agent in Charge Tyler Amon of EPA’s Criminal Investigation Division. “APC violated their wastewater permit when they discharged above their approved limits, and then falsified their reports to cover up the violation. EPA, along with its state and local partners, is committed to protecting the health and safety of our citizens and our environment.”
“By submitting falsified reports to DEC and negligently allowing contaminated water to be introduced into the environment, the company was risking the health and safety of the Raquette,” said DEC Commissioner Basil Seggos. “I commend the work of DEC’s Bureau of Environmental Conservation Investigations Unit (BECI), as well as the U.S. Environmental Protection Agency and the U.S. Attorney’s Office for their work in bringing this case to justice.”
In a signed plea agreement submitted to the Court prior to sentencing, the parties agreed to a recommended sentence of a fine of $125,000 and to an environmental compliance plan requiring specific actions on the part of APC Paper Group until January 1, 2020. United States Magistrate Judge David E. Peebles, who presided over today’s proceedings, imposed the recommended sentence, including the $125,000 fine.
This case was investigated by the EPA-CID, the New York State DEC, Division of Law Enforcement and Bureau of Environmental Crimes Investigation Unit (BECI), and it was prosecuted by Assistant United States Attorney Michael F. Perry.
A Former Synovus Employee Pleads Guilty to Defrauding Bank, Not Paying Taxes on Illegal IncomeRead the Press Release
COLUMBUS— A former commercial banker for Synovus entered a guilty plea to bank fraud and tax evasion charges in federal court Wednesday, said Charles E. Peeler, the United States Attorney for the Middle District of Georgia. John D. Evans, 47 of Columbus, Georgia, entered the plea before the Honorable Clay D. Land. Mr. Evans pled guilty to four counts of Bank Fraud and four counts of Tax Evasion on Wednesday, November 28, 2018. Evans will be sentenced by Federal District Court Judge Land at a time yet to be determined.
According to the plea agreement, Mr. Evans managed some of the largest clients for Synovus and diverted $1,046,602 in Synovus client funds into a personal account he opened at another bank. The fraud occurred between July 2, 2013 and May 24, 2017 while Mr. Evans worked as a commercial banker for Synovus. Financial records revealed that Evans used these funds to pay for a wide assortment of his personal expenses, including payments on vehicles, credit card bills, vacations, jewelry, and cash withdrawals. In addition, Mr. Evans failed to pay income taxes on the stolen money, amounting to $221,357.
“Fraud of this magnitude violates the public trust, and negatively impacts the financial system and the business community as a whole,” said Charles E. Peeler, U.S. Attorney. “I want to thank the combined investigative work of the FBI, IRS and the Office of Inspector General. I also want to thank Synovus for their total cooperation in this investigation, and helping bring this fraud to light.”
“We appreciate the efforts of the FBI and the U.S. Attorney’s Office for the Middle District of Georgia in bringing this matter to a conclusion, and we are pleased that no customer experienced a loss as result of Mr. Evans’ actions,” said Lee Underwood, Communications Director for Synovus.
“Evan’s plea is the result of the determination and hard work of federal investigators and prosecutors who aggressively pursue allegations of bank fraud,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is determined to pursue any allegations of persons who would choose to take advantage of their trusted positions of employment.”
“Even with substantial controls and banking regulations in place, people will find ways to embezzle from their employers. If you commit fraud, you will get caught and face the consequences," said Thomas J. Holloman, Special Agent in Charge, IRS- Criminal Investigation.
This case was investigated by agents with the Internal Revenue Service, the Federal Bureau of Investigation, and the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau. Assistant United States Attorney Melvin Hyde is prosecuting the case for the United States.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
5 Inmates Among 15 Defendants Indicted for Wire Fraud, Extortion, and Money Laundering Scheme at SCDCRead the Press Release
Columbia, South Carolina -------- United States Attorney Sherri A. Lydon announced today that 15 individuals from South Carolina and North Carolina were charged in federal court with Conspiracy to Commit Wire Fraud, Extortion, and Money Laundering. These individuals are:
- WENDELL WILKINS, age 30, of Ridgeville, South Carolina;
- RAKEEM SPIVEY, age 27, of Bishopville, South Carolina;
- JIMMY DUNBAR, age 37, of Bishopville, South Carolina;
- ANTWINE LAMAR MATTHEWS, age 28, of Bishopville, South Carolina;
- DAVID PAUL DEMPSEY, age 31, of Ridgeville, South Carolina;
- EDGAR JERMAINE HOSEY, age 34, of Aiken, South Carolina;
- JALISA THOMPSON, age 30, of Spartanburg, South Carolina;
- TIFFANY REED, age 34, of Charlotte, North Carolina;
- BRANDON THOMPSON, age 25, of Spartanburg, South Carolina;
- LABEN MCCOY, age 40, of Orangeburg, South Carolina;
- ROSELYN PRATT, age 28, of Longs, South Carolina;
- MITCHLENE PADGETT, age 52, of Batesburg, South Carolina;
- MALCOLM COOPER, age 27, of Rock Hill, South Carolina;
- ANDREIKA MOUZON, age 28, of Kingstree, South Carolina; and
- FLOSSIE BROCKINGTON, age 28, of Florence, South Carolina.
The Indictments allege that from at least 2015 through 2017, Wilkins, Spivey, Dunbar, Matthews, and Dempsey (the “named inmates”) were inmates at the South Carolina Department of Corrections (SCDC) who smuggled smartphones into prison. Using the Internet access on the smartphones, the named inmates and other prisoners at SCDC orchestrated a scheme to defraud members of the United States Military.
As part of the scheme, the named inmates used smartphones to join Internet dating websites and pose as young women seeking romantic relationships. On the dating websites, the named inmates targeted young male service members. After meeting the service members on the dating websites, the named inmates texted nude pictures of young women that they obtained from the Internet, claiming these nude pictures were of the woman that they were impersonating on the dating website. After they texted nude pictures, they asked the military members to text nude pictures and other personal information in return.
As further part of the scheme, after exchanging nude pictures and other personal information, Wilkins, Spivey, Dunbar, Matthews, Dempsey, and other inmates called the military members and claimed to be the young woman’s father. The named inmates told the military members that the “daughter” was a minor and not 18 or 19 years old as listed on the dating website. They then threatened to notify the military authorities and/or law enforcement that the military member was exchanging nude pictures with a minor unless the military member paid money. Often times, the named inmates claimed that the money was needed for counseling and medical bills for the trauma that the “underage daughter” suffered from the sexually explicit text messages. In some instances, other inmates at SCDC who conspired with the named inmates called the military members posing as a police officer and threatened them with arrest unless they paid additional money. The named inmates directed the military members to wire money by means of wire communications in interstate commerce via Western Union, MoneyGram, PayPal, and Walmart to individuals in South Carolina and North Carolina.
As further part of the scheme, Wilkins, Spivey, Dunbar, Matthews, and Dempsey recruited the other ten charged individuals—Jalisa Thompson, Reed, Brandon Thompson, McCoy, Pratt, Padgett, Cooper, Mouzon, Brockington, and Hosey—and others to retrieve the money that was wired by the military members.
After retrieving the wired money, these ten individuals then provided the named inmates with access to the wire funds through various methods at the inmates’ direction, including the use of pre-paid debit cards. In some instances, the individuals provided the named inmates with debit card numbers so they could access the criminal proceeds in prison via smartphones. Other times, the individuals wired the money directly into the inmates’ prison accounts.
The maximum penalty for each count in these Indictments is 20 years in federal prison, a $250,000 fine, and 3 years of court-ordered supervision.
“This case should sound the alarm that these kinds of scams are a significant threat to members of our military and to the citizens of South Carolina,” said U.S. Attorney Lydon. “These indictments are just one step in holding these inmates and the defendants on the outside, who allegedly assisted, accountable. We do not lock criminals up only to have them continue their criminal enterprises from inside prison. It is the unfettered use of contraband cell phones that allows inmates to continue harming the public. We are thankful to our partners in state, local, and federal law enforcement and across the military branches for their hard work in bringing the perpetrators of this scheme to justice.”
This case was investigated by the Naval Criminal Investigative Services, Internal Revenue Service – Criminal Investigations, Department of Defense Criminal Investigative Services, Air Force Office of Special Investigations, U.S. Army Criminal Investigations Command, United States Marshals Service, South Carolina Department of Corrections, and South Carolina Law Enforcement Division. Assistant United States Attorneys Emily Limehouse and Rhett DeHart of the Charleston office are prosecuting the case.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Wednesday 28 November 2018
Woman with Half Pound of Meth in Pants Sentenced to Almost Twelve Years in Prison for Drugs and Firearm PossessionRead the Press Release
Gulfport, Miss. – Aaliyah Williamson, 24, of Bay St. Louis, was sentenced today by U.S. District Judge Sul Ozerden to serve 143 months in federal prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute methamphetamine; and 120 months, followed by 3 years of supervised release, for possession of a stolen firearm, announced U.S. Attorney Mike Hurst and Assistant Special Agent in Charge Derryle Smith with the Drug Enforcement Administration. Judge Ozerden ordered the sentences to run concurrently. Williamson was also ordered to pay a $7,500 fine.
On October 24, 2017, a Mississippi Highway Safety Patrol Trooper observed a 2006 Chevrolet Impala on Interstate 10-East near mile marker 28 following another vehicle too closely. The trooper attempted to conduct a traffic stop on the vehicle, but the vehicle was slow to stop and veered to the right shoulder. The trooper pulled alongside the vehicle, where he observed the female passenger making furtive movements and it appeared she was attempting to conceal items in the front of her pants. The vehicle came to a stop near mile marker 29.
The trooper approached the vehicle and identified the driver as Jonathan Jarvis and the passenger as Aaliyah Williamson. Neither Jarvis nor Williamson possessed a valid Mississippi driver’s license. The trooper could smell the odor of marijuana being emitted from the vehicle. Jarvis and Williamson were asked to exit the vehicle. While exiting the vehicle, Jarvis told the trooper he possessed a weapon in the vehicle. The trooper orderedWilliamson to remove the items from her pants, which was revealed as approximately 247 grams of methamphetamine "ice." A search of the vehicle revealed 29.5 dosage units of Alprazolam, 14 dosage units of Acetaminophen/Oxycodone, approximately 89 grams of marijuana, approximately one ounce of promethazine syrup, digital scales, plastic baggies, two cell phones, and a stolen Smith andWesson pistol. Two and a half grams of methamphetamine was also found in Williamson’s purse.
Williamson pled guilty on May 11, 2018. Jarvis pled guilty on May 5, 2018 to conspiracy to possess with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. On August 21, 2018, he was sentenced by Judge Ozerden to serve 220 months in federal prison.
The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant United States Attorney Shundral H. Cole.
Woman Caught Stealing Mail in Englewood Sentenced to PrisonRead the Press Release
DENVER – A woman was sentenced this week for her role in stealing mail from personal mailboxes in the Englewood area, U.S. Attorney Jason R. Dunn and Acting U.S. Postal Inspector in Charge Lesley Allison announced. Krissie Renae Ward, age 20, of Denver, was sentenced by U.S. District Court Judge R. Brooke Jackson to serve 18 months in federal prison, followed by 3 years on supervised release. Co-defendant Tiffany Krystal Mankin, age 34, of Denver, was scheduled to be sentenced today, but removed her ankle monitor and did not show up for sentencing. Judge Jackson issued a bench warrant for her arrest.
The two defendants were indicted by a federal grand jury in Denver on March 20, 2018. Ward pled guilty before Judge Jackson on August 22, 2018 and was sentenced on November 27, 2018. Mankin pled guilty before Judge Jackson on August 23, 2018 and was scheduled to be sentenced on November 28, 2018.
According to the stipulated facts contained in both defendants’ plea agreements, on November 15, 2016, Englewood Police Department officers responded to a report of suspicious activity at a Safeway store located at 201 East Jefferson Avenue, in Englewood. The reporting party called police and stated that two females inside a black Volkswagen were opening excessive amounts of mail. Englewood officers located the vehicle and contacted the occupants, who turned out to be Mankin and Ward. Both were extremely nervous, fidgety, and avoided questions. Both women were taken to the Englewood police station.
During a search of the car, officers found 67 pieces of mail belonging to 31 different people. None of the mail contained actual currency. Law enforcement officers recovered seven checks totaling more than $9,000 from open, rifled mail. Further investigation revealed that Ward and Mankin were looking for mail that contained credit cards and checks. They took the mail out of curbside mailboxes by driving up and reaching out of the car window to grab the mail.
“Stealing mail is not a victimless crime,” said U.S. Attorney Jason R. Dunn. “Our country depends upon the integrity of our postal service, and when a crime such as this occurs, the recipient of the check or credit card as well as the financial institution issuing them suffers.”
“The U.S. Postal Inspection Service would like to thank the diligent witness in this case who reported suspicious activity involving the U.S. Mail,” said Lesley Allison, Acting Inspector-in-Charge of the Denver Division. “Along with the quick response from the Englewood Police Department, the actions of the witness allowed Postal Inspectors to quickly identify these defendants, who were responsible for stealing mail from numerous victims,” Allison said. “As we enter into the busy holiday mailing season, today’s sentence marks a great example of what can happen when the public and law enforcement work together with Postal Inspectors to stop mail theft in our communities,” said Allison.
This case was investigated by the U.S. Postal Inspection Service, with substantial assistance by the Englewood Police Department.
The defendants were prosecuted by Assistant U.S. Attorney Jason St. Julien.
Williamsville Man Re-sentenced on Tax Fraud ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Carlo J. Marinello, Jr., 72, of Williamsville, NY, was re-sentenced upon a jury verdict convicting him of eight counts of failing to file tax returns. A ninth count of conviction, which charged Marinello with obstructing and impeding the due administration of the Internal Revenue Code, was reversed by the United States Supreme Court. The eight counts on which he was sentenced—four of which charged him with failing to file personal income tax returns and four of which charged him with failing to file corporate tax returns—were unaffected by the Supreme Court’s decision. The defendant, who was originally sentenced to serve 36 months in prison, was re-sentenced to time served (21 months in prison) by Senior U.S. District Court Judge William M. Skretny. Marinello was also ordered to pay $351,763.08 in unpaid taxes.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that Marinello was the manager and owner of Express Courier Group/Buffalo Inc. (“Express Courier”), a corporation formed to transport letters and documentation between businesses in New York and businesses in Canada. The business earned hundreds of thousands of dollars in revenues but the defendant failed to file tax returns for the company or personal tax returns for earned income. Specifically, although he was required to do so, Marinello failed to file personal income tax and corporate tax returns for tax years 2005, 2006, 2007 and 2008.
The sentencing is the culmination of an investigation by the Internal Revenue Service, Criminal Investigation, under the direction of Special Agent in Charge James D. Robnett, New York Field Office.
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Whitley County Man Sentenced to 300 Months for Armed Drug TraffickingRead the Press Release
LONDON, Ky. — Edwin Willis, 44, of Corbin, Kentucky, was sentenced to 300 months (25 years) in federal prison, by United States District Judge Robert E. Wier, for conspiring to distribute methamphetamine and possessing a firearm in furtherance of that drug trafficking offense. Willis has three prior felony drug convictions and, as a result, qualified for career offender status and an enhanced sentence under federal law.
Willis pled guilty to the charges against him in March of 2018. Willis is the final defendant to be sentenced in an interstate drug conspiracy led by Marti Payne, through which pound levels of methamphetamine were imported from Georgia to Whitley and Laurel County, Kentucky between April of 2017 and August of 2017. The conspiracy concluded on August 1, 2017, when law enforcement arrested Payne and Willis. Willis’s arrest followed a chase during which firearms were discarded from the vehicle. A subsequent search of that vehicle revealed that Willis was in possession of over 200 grams of methamphetamine. The investigation confirmed Willis, armed with a firearm, had traveled with Payne to Georgia to obtain methamphetamine.
Eleven others who participated in the conspiracy to obtain and distribute methamphetamine have previously pled guilty and were sentenced, including Marti Payne (160 months), Whitney Wright (93 months), Brandon Huff (118 months), Courtney Stacy (120 months), Jamieson Taylor Wayne Minton (92 months), Ethan Powers (93 months), Jamie Peters (124 months), David Russell (68 months), Christopher Jonas (160 months), Kenneth Buchanan (125 months), and Ladonna Ping (65 months). Under federal law, the defendants must serve 85 percent of their prison sentences; and upon their release, they will be under the supervision of the United States Probation Office.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowrey, Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge for the Louisville Field Division; and Richard Sanders, Kentucky State Police Commissioner, jointly made the announcement. The Laurel County Sherriff’s Office and the Williamsburg Police Department also assisted in the investigation. The United States was represented by Assistant United States Attorney Andrew H. Trimble.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated 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.
Warsaw, Indiana Man Sentenced to 91 Months in PrisonRead the Press Release
SOUTH BEND - Blake Robison, age 27, of Warsaw, Indiana, was sentenced before South Bend District Court Judge Robert L. Miller, Jr. for transporting child pornography in interstate commerce, announced U.S. Attorney Kirsch.
Robison was sentenced to 91 months in prison with 5 years of supervised release after his prison term.
According to documents in this case, in 2017, using a home computer, Robison uploaded two videos into his Dropbox account. The videos contained sexually explicit conduct by a minor. Robison also possessed over twenty thousand images of child pornography and over 400 videos. Some of the images depicted bestiality and sadistic images, and still others depicted prepubescent children, or children under the age of twelve. Robison obtained some of the images from the dark web and he used cloud storage to hide his collection of images.
This case was investigated by Homeland Security Investigations with assistance from the Indiana State Police. The case was handled by Assistant U.S. Attorney John Maciejczyk.
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U.S. District Judge Issues Warrant for Arrest of Fugitive in Wire Fraud CaseRead the Press Release
SAN JOSE – U.S. District Judge Edward J. Davila signed a warrant for the arrest of Christian Reimer Stukenbrock (also spelled as Stuckenbrock), the defendant in a 9-count wire fraud case who failed to appear yesterday at what was supposed to be the first day of a jury trial, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett.
On January 14, 2015, a federal grand jury indicted Stukenbrock, 62, a citizen of Germany, with nine counts of wire fraud. According to court documents, the government intended to prove that Stukenbrock misappropriated several million dollars that was supposed to be invested on behalf of a successful Silicon Valley entrepreneur. According to the government, Stukenbrock created a company called Silicon Valley Technology Group (“SVTG”) in 2000 to raise investment capital, but Stukenbrock never operated SVTG as a bona fide corporate entity. Between 2005 and 2011, the defendant allegedly received nearly $23 million from the entrepreneur to invest in several companies. The government intended to demonstrate at trial that only some of the investor’s money was invested as promised and that Stukenbrock diverted millions of dollars to himself. In furtherance of that scheme to defraud, Stukenbrock allegedly made numerous misrepresentations in bank records, business records, and filings made with public entities. Stukenbrock was charged with nine counts of wire fraud, in violation of 18 U.S.C. § 1343. An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The trial in the case was scheduled to begin yesterday morning. On Monday, however, defendant’s counsel forwarded to the government and the court a message from Stukenbrock in which he stated “Please contact the court and tell them that I will not be there tomorrow and cancel the proceedings. I already left the jurisdiction . . . .” Judge Davila read the email into the court record and issued a bench warrant for the defendant’s arrest.
Anyone with information regarding the defendant’s whereabouts should contact the FBI at 415-553-7400.
Two KC Men Sentenced to 19 Years for Armed Robbery ConspiracyRead the Press Release
KANSAS CITY, Mo. – Two Kansas City, Mo., men were sentenced in federal court today for their roles in a conspiracy to commit 10 armed robberies at local businesses.
Jerry D. Patterson, 22, and Michael A. Harris, 20, were each sentenced by U.S. Chief District Judge Greg Kays to 19 years and six months in federal prison without parole.
On March 12, 2018, Patterson and Harris each pleaded guilty to the armed robbery conspiracy and to brandishing a firearm in furtherance of a crime of violence. Each admitted he was involved in a conspiracy to commit 10 armed robberies at area businesses over a four-week period in September and October 2017.
On Oct. 15, 2017, Patterson and Harris stole $3,500 at gunpoint from Walgreens Pharmacy, 1536 E. 23rd St., Independence, Mo. They drove Patterson’s red 2007 Pontiac G6 sedan; after officers discovered the vehicle, Patterson and Harrison abandoned it and fled on foot. Investigators searched the vehicle and found a Glock .40-caliber handgun, an extended .40-caliber magazine, money taken from the robbery, and a number of items used in several of the armed robberies. Agents also found a Kahr Arms .40-caliber handgun (seen in several surveillance videos) in a nearby wooded area.
On Oct. 20, 2017, Patterson reported his car stolen. On Oct. 31, 2017, both Harris and Patterson were arrested at their respective apartments. Evidence from the numerous robberies was recovered from each of their homes.
Patterson and Harris each admitted that they committed a series of armed robberies during the conspiracy. Patterson brandished a Kahr Arms .40-caliber handgun in all of the robberies. Harris brandished a Glock .40-caliber handgun in all of the robberies. In addition to the Walgreens Pharmacy robbery on Oct. 15, 2017, Patterson and Harris admitted they committed nine more armed robberies:
• On Oct. 14, 2017, Patterson and Harris stole $4,275 at gunpoint from Walgreens Pharmacy, 9300 Gregory Blvd., Raytown, Mo.;
• On Oct. 14, 2017, Patterson and Harris stole $3,000 at gunpoint from CVS Pharmacy, 6244 S. Brookside Blvd., Kansas City, Mo.;
• On Oct. 10, 2017, Patterson and Harris robbed Dollar General, 5105 Blue Ridge Blvd., Raytown, Mo., at gunpoint;
• On Oct. 9, 2017, Patterson and Harris stole $3,705 at gunpoint from Walgreens Pharmacy, 2261 S. Sterling Ave., Independence, Mo.;
• On Oct. 8, 2017, Patterson and Harris stole $575 at gunpoint from Domino’s Pizza, 3709 S. Noland Road, Independence, Mo. They also stole $400 from employees.
• On Oct. 2, 2017, Patterson and Harris stole $2,500 from CVS Pharmacy, 5310 Blue Ridge Blvd., Raytown, Mo.;
• On Sept. 26, 2017, Patterson and Harris stole $380 from Family Dollar, 12521 E. 40 Hwy., Independence, Mo.;
• On Sept. 26, 2017, Patterson and Harris stole $150 and some store items at gunpoint from 7 Eleven, 11107 Grandview Rd., Kansas City, Mo.;
• On Sept. 10, 2017, Patterson and Harris stole $3,500 from Walgreens, 1100 E. 63rd. St., Kansas City, Mo.
This case was prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Independence, Mo., Police Department and the Raytown, Mo., Police Department.
Two Iranian Men Indicted for Deploying Ransomware to Extort Hospitals, Municipalities, and Public Institutions, Causing over $30 Million in LossesRead the Press Release
A federal grand jury returned an indictment unsealed today in Newark, New Jersey charging Faramarz Shahi Savandi, 34, and Mohammad Mehdi Shah Mansouri, 27, both of Iran, in a 34-month-long international computer hacking and extortion scheme involving the deployment of sophisticated ransomware, announced Deputy Attorney General Rod J. Rosenstein, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito for the District of New Jersey and Executive Assistant Director Amy S. Hess of the FBI.
The six-count indictment alleges that Savandi and Mansouri, acting from inside Iran, authored malware, known as “SamSam Ransomware,” capable of forcibly encrypting data on the computers of victims. According to the indictment, beginning in December 2015, Savandi and Mansouri would then allegedly access the computers of victim entities without authorization through security vulnerabilities, and install and execute the SamSam Ransomware on the computers, resulting in the encryption of data on the victims’ computers. These more than 200 victims included hospitals, municipalities, and public institutions, according to the indictment, including the City of Atlanta, Georgia; the City of Newark, New Jersey; the Port of San Diego, California; the Colorado Department of Transportation; the University of Calgary in Calgary, Alberta, Canada; and six health care-related entities: Hollywood Presbyterian Medical Center in Los Angeles, California; Kansas Heart Hospital in Wichita, Kansas; Laboratory Corporation of America Holdings, more commonly known as LabCorp, headquartered in Burlington, North Carolina; MedStar Health, headquartered in Columbia, Maryland; Nebraska Orthopedic Hospital now known as OrthoNebraska Hospital, in Omaha, Nebraska and Allscripts Healthcare Solutions Inc., headquartered in Chicago, Illinois.
According to the indictment, Savandi and Mansouri would then extort victim entities by demanding a ransom paid in the virtual currency Bitcoin in exchange for decryption keys for the encrypted data, collecting ransom payments from victim entities that paid the ransom, and exchanging the Bitcoin proceeds into Iranian rial using Iran-based Bitcoin exchangers. The indictment alleges that, as a result of their conduct, Savandi and Mansouri have collected over $6 million USD in ransom payments to date, and caused over $30 million USD in losses to victims.
“The Iranian defendants allegedly used hacking and malware to cause more than $30 million in losses to more than 200 victims,” said Deputy Attorney General Rosenstein. “According to the indictment, the hackers infiltrated computer systems in 10 states and Canada and then demanded payment. The criminal activity harmed state agencies, city governments, hospitals, and countless innocent victims.”
“The allegations in the indictment unsealed today—the first of its kind—outline an Iran-based international computer hacking and extortion scheme that engaged in 21st-century digital blackmail,” said Assistant Attorney General Benczkowski. “These defendants allegedly used ransomware to infect the computer networks of municipalities, hospitals, and other key public institutions, locking out the computer owners, and then demanded millions of dollars in payments from them. As today’s charges demonstrate, the Criminal Division and its law enforcement partners will relentlessly pursue cybercriminals who harm American citizens, businesses, and institutions, regardless of where those criminals may reside.”
“The defendants in this case developed and deployed the SamSam Ransomware in order to hold public and private entities hostage and then extort money from them,” said U.S. Attorney Carpenito. “As the indictment in this case details, they started with a business in Mercer County and then moved on to major public entities, like the City of Newark, and healthcare providers, like the Hollywood Presbyterian Medical Center in Los Angeles and the Kansas Heart Hospital in Wichita—cravenly taking advantage of the fact that these victims depend on their computer networks to serve the public, the sick, and the injured without interruption. The charges announced today show that the U.S. Attorney’s Office for the District of New Jersey will continue to act to disrupt such criminal acts, and identify those who are responsible for them, no matter where in the world they may seek to hide.”
“This indictment demonstrates the FBI’s continuous commitment to unmasking malicious actors behind the world’s most egregious cyberattacks,” said Executive Assistant Director Hess. “By calling out those who threaten American systems, we expose criminals who hide behind their computer and launch attacks that threaten our public safety and national security. The actions highlighted today, which represent a continuing trend of cyber criminal activity emanating from Iran, were particularly threatening, as they targeted public safety institutions, including U.S. hospital systems and governmental entities. The FBI, with the assistance of our private sector and U.S. government partners, are sending a strong message that we will work together to investigate and hold all criminals accountable.”
Savandi and Mansouri are charged with one count of conspiracy to commit wire fraud, one count of conspiracy to commit fraud and related activity in connection with computers, two substantive counts of intentional damage to a protected computer and two substantive counts of transmitting a demand in relation to damaging a protected computer.
According to the indictment, Savandi and Mansouri created the first version of the SamSam Ransomware in December 2015, and created further refined versions in June and October 2017. In addition to employing Iran-based Bitcoin exchangers, the indictment alleges that the defendants also utilized overseas computer infrastructure to commit their attacks. Savandi and Mansouri would also use sophisticated online reconnaissance techniques (such as scanning for computer network vulnerabilities) and conduct online research in order to select and target potential victims, according to the indictment. According to the indictment, the defendants would also disguise their attacks to appear like legitimate network activity.
To carry out their scheme, the indictment alleges that the defendants also employed the use of Tor, a computer network designed to facilitate anonymous communication over the internet. According to the indictment, the defendants maximized the damage caused to victims by launching attacks outside regular business hours, when a victim would find it more difficult to mitigate the attack, and by encrypting backups of the victims’ computers. This was intended to—and often did—cripple the regular business operations of the victims, according to the indictment. The most recent ransomware attack against a victim alleged in the indictment took place on Sept. 25, 2018.
This case was investigated by the FBI’s Newark Field Office. Senior Counsel William A. Hall Jr. of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney and Chief of the Cybercrimes Unit Justin S. Herring of the District of New Jersey are prosecuting the case. The Department thanks its law enforcement colleagues at the National Crime Agency (UK), West Yorkshire Police (UK), Calgary Police Service (Canada), and the Royal Canadian Mounted Police. Significant assistance was provided by the Justice Department’s National Security Division and the Criminal Division’s Office of International Affairs.
Victims are encouraged to contact their local FBI field office and file a complaint online with the Internet Crime Complaint Center (IC3). The IC3 staff reviews complaints, looking for patterns or other indicators of significant criminal activity, and refers investigative packages of complaints to the appropriate law enforcement authorities in a particular city or region. The FBI provides a variety of resources relating to ransomware through the IC3, which can be reached at www.ic3.gov. For more information on ransomware prevention, visit: https://www.ic3.gov/media/2016/160915.aspx
Charges contained in an indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Iranian Men Indicted for Deploying Ransomware to Extort Hospitals, Municipalities, and Public Institutions, Causing More Than $30 Million in LossesRead the Press Release
NEWARK, N.J. – An indictment returned by a federal grand jury was unsealed today in Newark, charging Faramarz Shahi Savandi, 34, and Mohammad Mehdi Shah Mansouri, 27, both of Iran, in a 34-month-long international computer hacking and extortion scheme involving the deployment of sophisticated ransomware, U.S. Attorney Craig Carpenito for the District of New Jersey, Deputy Attorney General Rod J. Rosenstein, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Executive Assistant Director Amy S. Hess of the FBI announced.
The six-count indictment alleges that Savandi and Mansouri, acting from inside Iran, authored malware, known as “SamSam Ransomware,” capable of forcibly encrypting data on the computers of victims. According to the indictment, beginning in December 2015, Savandi and Mansouri would then allegedly access the computers of victim entities without authorization through security vulnerabilities, and install and execute the SamSam Ransomware on the computers, resulting in the encryption of data on the victims’ computers. These more than 200 victims included hospitals, municipalities, and public institutions, according to the indictment, including the City of Atlanta, Georgia; the City of Newark, New Jersey; the Port of San Diego, California; the Colorado Department of Transportation; the University of Calgary in Calgary, Alberta, Canada; and six health care-related entities: Hollywood Presbyterian Medical Center in Los Angeles, California; Kansas Heart Hospital in Wichita, Kansas; Laboratory Corporation of America Holdings, more commonly known as LabCorp, headquartered in Burlington, North Carolina; MedStar Health, headquartered in Columbia, Maryland; Nebraska Orthopedic Hospital now known as OrthoNebraska Hospital, in Omaha, Nebraska and Allscripts Healthcare Solutions Inc., headquartered in Chicago, Illinois.
According to the indictment, Savandi and Mansouri would then extort victim entities by demanding a ransom paid in the virtual currency Bitcoin in exchange for decryption keys for the encrypted data, collecting ransom payments from victim entities that paid the ransom, and exchanging the Bitcoin proceeds into Iranian rial using Iran-based Bitcoin exchangers. The indictment alleges that, as a result of their conduct, Savandi and Mansouri have collected over $6 million USD in ransom payments to date, and caused over $30 million USD in losses to victims.
“The defendants in this case developed and deployed the SamSam Ransomware in order to hold public and private entities hostage and then extort money from them,” U.S. Attorney Carpenito said. “As the indictment in this case details, they started with a business in Mercer County and then moved on to major public entities, like the City of Newark, and healthcare providers, like the Hollywood Presbyterian Medical Center in Los Angeles and the Kansas Heart Hospital in Wichita – cravenly taking advantage of the fact that these victims depend on their computer networks to serve the public, the sick, and the injured without interruption. The charges announced today show that the U.S. Attorney’s Office for the District of New Jersey will continue to act to disrupt such criminal acts, and identify those who are responsible for them, no matter where in the world they may seek to hide.”
“The Iranian defendants allegedly used hacking and malware to cause more than $30 million in losses to more than 200 victims,” Deputy Attorney General Rosenstein said. “According to the indictment, the hackers infiltrated computer systems in 10 states and Canada and then demanded payment. The criminal activity harmed state agencies, city governments, hospitals, and countless innocent victims.”
“The allegations in the indictment unsealed today—the first of its kind—outline an Iran-based international computer hacking and extortion scheme that engaged in 21st-century digital blackmail,” Assistant Attorney General Benczkowski said. “These defendants allegedly used ransomware to infect the computer networks of municipalities, hospitals, and other key public institutions, locking out the computer owners, and then demanded millions of dollars in payments from them. As today’s charges demonstrate, the Criminal Division and its law enforcement partners will relentlessly pursue cybercriminals who harm American citizens, businesses, and institutions, regardless of where those criminals may reside.”
“This indictment demonstrates the FBI’s continuous commitment to unmasking malicious actors behind the world’s most egregious cyberattacks,” said Executive Assistant Director Hess. “By calling out those who threaten American systems, we expose criminals who hide behind their computer and launch attacks that threaten our public safety and national security. The actions highlighted today, which represent a continuing trend of cyber criminal activity emanating from Iran, were particularly threatening, as they targeted public safety institutions, including U.S. hospital systems and governmental entities. The FBI, with the assistance of our private sector and U.S. government partners, are sending a strong message that we will work together to investigate and hold all criminals accountable.”Savandi and Mansouri are charged with one count of conspiracy to commit wire fraud, one count of conspiracy to commit fraud and related activity in connection with computers, two substantive counts of intentional damage to a protected computer and two substantive counts of transmitting a demand in relation to damaging a protected computer.
According to the indictment, Savandi and Mansouri created the first version of the SamSam Ransomware in December 2015, and created further refined versions in June and October 2017. In addition to employing Iran-based Bitcoin exchangers, the indictment alleges that the defendants also utilized overseas computer infrastructure to commit their attacks. Savandi and Mansouri would also use sophisticated online reconnaissance techniques (such as scanning for computer network vulnerabilities) and conduct online research in order to select and target potential victims, according to the indictment. According to the indictment, the defendants would also disguise their attacks to appear like legitimate network activity.
To carry out their scheme, the indictment alleges that the defendants also employed the use of Tor, a computer network designed to facilitate anonymous communication over the internet. According to the indictment, the defendants maximized the damage caused to victims by launching attacks outside regular business hours, when a victim would find it more difficult to mitigate the attack, and by encrypting backups of the victims’ computers. This was intended to—and often did—cripple the regular business operations of the victims, according to the indictment. The most recent ransomware attack against a victim alleged in the indictment took place on Sept. 25, 2018.
This case was investigated by the FBI’s Newark Field Office. Assistant U.S. Attorney and Chief of the Cybercrimes Unit Justin S. Herring of the District of New Jersey and Senior Counsel William A. Hall Jr. of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the case. The Department thanks its law enforcement colleagues at the National Crime Agency (UK), West Yorkshire Police (UK), Calgary Police Service (Canada), and the Royal Canadian Mounted Police. Significant assistance was provided by the Justice Department’s National Security Division and the Criminal Division’s Office of International Affairs.
Victims are encouraged to contact their local FBI field office and file a complaint online with the Internet Crime Complaint Center (IC3). The IC3 staff reviews complaints, looking for patterns or other indicators of significant criminal activity, and refers investigative packages of complaints to the appropriate law enforcement authorities in a particular city or region. The FBI provides a variety of resources relating to ransomware through the IC3, which can be reached at www.ic3.gov. For more information on ransomware prevention, visit: https://www.ic3.gov/media/2016/160915.aspx
Charges contained in an indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.Two Former St. Tammany Parish Sheriff’s Deputies Charged for their Role in Kickback and Bribery Scheme Involving Contract for Privatization of Work Release Program in St. Tammany ParishRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DAVID HANSON, age 61, from Abita Springs, Louisiana, and CLIFFORD “SKIP” KEEN, age 50, from Covington, Louisiana, were charged today in a one-count bill of information with conspiracy to commit honest services wire fraud and soliciting a bribe, in violation of 18 U.S.C. ' 371, for their roles in the privatization of a work release program in Slidell, Louisiana in 2013.
According to court documents, HANSON and KEEN, each of whom worked most recently as Captains with the St. Tammany Parish Sheriff’s Office (STPSO) discussed with the then-Sheriff (“Public Official 1”) about becoming owners of a work release program in Slidell, Louisiana that Public Official 1 had decided to privatize. Because STPSO rules prohibited employees from “participating in a transaction in which he has a personal substantial economic interest of which he may be reasonably expected to know involving the governmental entity,” HANSON and KEEN would have had to resign from STPSO if they wanted to assume ownership and control of the Slidell work release program. HANSON, KEEN, and Public Official 1 discussed ways to allow HANSON and KEEN to maintain their employment and still profit from the Slidell work release program. Ultimately, HANSON, KEEN, and Public Official 1 agreed to make KEEN’s adult son (Person 1) and HANSON’s adult daughter (Person 2) owners of the Slidell work release program.
HANSON, KEEN, and Public Official 1 agreed that they needed to find another individual actually to operate the Slidell work release program because Person 1 and Person 2 lacked sufficient education, training, experience, or funding. They decided on Person 3, to whom HANSON presented a series of conditions, including the following: Person 1 and Person 2 would each own forty-five (45) percent of the Slidell work release program and would each receive forty-five (45) percent of the profits, while Person 3 would own ten (10) percent, receive ten (10) percent of the profits, and receive a salary; and Person 3 would be responsible for the daily operations of the Slidell work release program. Person 3 was also responsible for providing the capital necessary to initiate the program. On about May 1, 2013, Person 1, Person 2, and Person 3 entered into an operating agreement that created St. Tammany Workforce Solutions, LLC, in which Person 1 and Person 2 each had a forty-five percent ownership interest and Person 3 had only a ten percent ownership interest.
On June 4, 2013, Public Official 1 entered into a cooperative endeavor agreement (“privatization agreement”) on behalf of STPSO with St. Tammany Workforce Solutions, LLC to operate the Slidell work release program. Although Person 1 and Person 2 acted effectively as passive members and did not participate substantially in the operation, oversight, or administration of the Slidell work release program, Person 3 was required to pay Person 1 and Person 2 salaries in addition to their ownership disbursements. Person 3 was also directed to pay Person 4, who was Public Official 1’s relative and an employee at STPSO, approximately $30,000 per year for a no-show job at the Slidell work release program.
During the time St. Tammany Workforce Solutions, LLC operated the Slidell work release program, Person 1 and Person 2 received not less than $1,195,000 from St. Tammany Workforce Solutions, LLC in the form of ownership disbursements, salary payments, and occasional lump sum miscellaneous payments. Person 1 received no fewer than 145 payments totaling over $550,000, and Person 2 received no fewer than 131 payments totaling over $600,000. Person 1 and Person 2 converted the majority of the money they received from St. Tammany Workforce Solutions, LLC to cash. At the request of their KEEN and HANSON, Persons 1 and 2 then transferred a significant portion of the funds back to their fathers.
Additionally, HANSON, KEEN, and Public Official 1 understood that Public Official 1 would receive financial compensation from them in exchange for bestowing the right to operate the Slidell work release program on St. Tammany Workforce Solutions, LLC. HANSON and KEEN each gave Public Official 1 a portion of the payments they received from St. Tammany Workforce Solutions LLC, through Person 1 and Person 2, in cash payoffs in amounts greater than $1,000 on a recurring basis in exchange for Public Official 1 bestowing the right to operate the Slidell work release program on St. Tammany Workforce Solutions LLC. HANSON also arranged for Public Official 1’s son to receive a check in the amount of $4,000 because Public Official 1 gave the contract to operate the Slidell work release program to St. Tammany Workforce Solutions, LLC. HANSON, KEEN, Public Official 1, and others attempted to conceal the scheme by, among other things, not including in the privatization agreement the fact that Public Official 1 would receive financial compensation in exchange for bestowing the right to operate the Slidell work release program on St. Tammany Workforce Solutions LLC, communicating by cellular telephone, and providing most of the money to Public Official 1 in the form of cash.
If convicted, HANSON and KEEN each face a maximum term of imprisonment of five years, a fine of up to $250,000.00, three years supervised release after imprisonment, and a mandatory $100 special assessment.
U. S. Attorney Strasser reiterated that a bill of information is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division and thanks the Metropolitan Crime Commission for its assistance. Assistant United States Attorneys Jordan Ginsberg, Supervisor of the Public Corruption Unit, and Elizabeth Privitera, Supervisor of the Violent Crime Unit, are in charge of the prosecution.
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Turtle Creek Woman Charged with Defrauding Chase Bank and Aggravated Identity TheftRead the Press Release
PITTBURGH , PA - One resident of Turtle Creek, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on charges of bank fraud and aggravated identity theft, United States Attorney Scott W. Brady announced today.
The two-count Indictment, returned on Nov. 27, named Quinyahta Rochelle, 32, as the sole defendant.
According to the Indictment, Rochelle participated in a scheme to defraud Chase Bank by purchasing online credit card account information stolen from Chase customers, using that information to pay for goods and services, and making counterfeit credit cards for others.
The law provides for a maximum total sentence of not more than 32 years in prison, a fine of not more than $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jeffrey R. Bengel is prosecuting this case on behalf of the government.
The United States Department of Homeland Security, United States Postal Inspection Service, and the United States Secret Service conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Indictment- Indictment
Troy Woman Sentenced for Conspiring to Distribute CocaineRead the Press Release
ALBANY, NEW YORK – Katie Bessette, age 30, of Troy, New York, was sentenced today to time served (2 days in jail) for conspiring to distribute cocaine.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
As part of her June 27, 2018 guilty plea, Bessette admitted that on December 3, 2017, she distributed approximately 527 grams of cocaine to a co-conspirator at a shopping center in Albany County.
Senior United States District Judge Gary L. Sharpe also imposed a 3-year term of supervised release.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Rick Belliss.
Three people from Michigan sentenced to prison for using stolen identities to apply for fraudulent bank loansRead the Press Release
Three people from Michigan were sentenced to prison for using stolen identities to apply for fraudulent bank loans.
Brian J. Graham-Love, 24, was sentenced to 51 months in prison after previously pleading guilty to aggravated identity theft and conspiracy to commit bank fraud.
Madison Isaacson, 20, was sentenced to two years in prison after previously pleading guilty to aggravated identity theft.
Kristi Belanger, 20, was sentenced to three months in prison, after previously pleading guilty to conspiracy to commit bank fraud.
The trio used fraudulently obtained personal identification information, which they used to open bank accounts and submit loan applications at various Dollar Bank locations in Ohio and Pennsylvania.
They successfully used the identities of four people to receive loans totaling $52,000, of which they withdrew nearly $41,000, according to court documents.
This case was investigated by the FBI, U.S. Postal Inspection Service and the University Heights Police Department. It was prosecuted by Assistant U.S. Attorneys Robert Kern and Danielle Angeli.
Three Men Charged with Armed Business RobberiesRead the Press Release
KANSAS CITY, Mo. – Three men were charged in federal court yesterday for their roles in a series of armed business robberies in Kansas City, Mo., and Independence, Mo., over the past week.
Vonterrious Humbert, 18, Tremaine Johnson, 19, and Henry Simmons, 18, were charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Tuesday, Nov. 27, 2018, with participating in a conspiracy to commit armed robberies and with using a firearm in relation to a crime of violence. They remain in federal custody pending a detention hearing, which has not yet been scheduled.
Humbert, Johnson and Simmons were arrested on Tuesday, Nov. 27, 2018, following the early-morning armed robbery of a Phillips 66 convenience store and the attempted robbery of a Taco Bell on N.W. Barry Road in Kansas City, Mo. Two juvenile males were also taken into custody but are not identified in court documents and are not charged in the federal complaint.
According to an affidavit filed in support of the criminal complaint, the conspiracy included eight additional business robberies: five armed robberies of 7-Eleven convenience stores in Independence, Mo., and Kansas City, Mo., in the early morning hours of Wednesday, Nov. 21, 2018, and three armed robberies of a Domino’s Pizza, a 7-Eleven convenience store and a Sinclair convenience store in Kansas City, Mo., during the early morning hours of Sunday, Nov. 25, 2018.
A Dodge Durango SUV was identified by witnesses at some of the robberies. On Monday, Nov. 26, 2018, law enforcement observed Humbert, Johnson, Simmons and the two juveniles traveling in a 2003 Dodge Durango to approximately 15 to 20 convenience stores, fast-food restaurants and other businesses that were open late or operated 24 hours a day. According to the affidavit, officers believed they were casing the businesses – making repetitive passes by these businesses in a slow, surveillance-like manner, as if examining the businesses for activity and occupants in advance of initiating a robbery.
At approximately 2:37 a.m. Tuesday, Nov. 27, 2018, the vehicle arrived at the shopping area at N.W. Barry Road and Ambassador Drive in Kansas City, Mo. The vehicle parked at a nearby apartment complex. Four individuals got out of the vehicle, the affidavit says; Humbert and Johnson walked across the street to the Phillips 66 convenience store while Simmons and a juvenile male walked to the Taco Bell.
According to the affidavit, Humbert and Johnson robbed the Phillips 66 store at gunpoint, stealing approximately $400, then ran back across the street toward a wooded area near the apartment complex. Johnson and Humbert were pursued into a strip mall area near the apartment complex. Both were apprehended nearby, the affidavit says, and were found to have discarded the firearms they possessed at the time of the robbery – a Taurus handgun with a laser sight and an SKS-type 7.62x39mm rifle.
As this robbery was occurring, Simmons and the juvenile were allegedly attempting to rob the Taco Bell. They both had firearms when law enforcement officers approached them, the affidavit says, which they attempted to discard at the time of their arrest. Officers retrieved a loaded Taurus 9mm semi-automatic handgun with a laser sight and a loaded Ruger 9mm semi-automatic handgun.
A second juvenile male was identified as the driver and sole occupant of the Dodge Durango SUV at the time of the arrests. Officers searched the vehicle and found a loaded Glock .40-caliber semi-automatic handgun and a jar containing marijuana.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ashleigh A. Ragner. It was investigated by the Kansas City, Mo., Police Department, the Independence, Mo., Police Department and the FBI.
Three Additional Individuals Charged in Manhattan Federal Court with Firearms TraffickingRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Ashan M. Benedict, the Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of a Superseding Indictment, charging three additional individuals, JOWAYNE TOMLISON, SEAN KNOTT, and ELIZABETH MCCASKILL, with trafficking in firearms, including the trafficking of firearms from South Carolina to the New York City area. A fourth defendant, Dayvon Chestnut, was previously arrested and indicted on the same charges. TOMLISON and KNOTT were arrested today and will be presented today at the United States Courthouse in Manhattan. MCCASKILL was arrested this afternoon in the District of South Carolina.
U.S. Attorney Geoffrey S. Berman said: “The defendants conspired to put illegal firearms on the streets of New York, increasing the risk of gun violence. Today, thanks to our partners at the ATF and the NYPD, they face federal charges for their crimes.”
ATF Special Agent-in-Charge Ashan M. Benedict said: “Protecting Americans from gun violence is central to the ATF mission. The defendants are alleged to have been part of a ring responsible for numerous illegal firearms out on our city streets. The ATF/ NYPD Joint Firearms Task Force is committed to disrupting and dismantling trafficking rings and bringing those responsible to justice. I would like to thank the United States Attorney’s Office for prosecuting this case.”
According to the allegations and information in the public record, including the allegations in the Superseding Indictment[1]:
From 2016 to 2018, Chestnut was unlawfully purchasing firearms in South Carolina for resale, and directing others, such as MCCASKILL, to do the same. In April and May 2018, Chestnut traveled to the New York City area on at least four occasions to distribute those firearms. TOMLISON and KNOTT obtained firearms from Chestnut for further resale to other individuals.
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All four defendants – Chestnut, 25, of Bishopville, South Carolina, TOMLISON, 28, of Brooklyn, New York, KNOTT, 52, of Queens, New York, and MCCASKILL, 29, of Bishopville, South Carolina, are charged with conspiracy to traffic in firearms and firearms trafficking, each of which carries a maximum statutory penalty of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the efforts of the ATF and NYPD in this case.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorney Sarah Krissoff in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the description of the Superseding Indictment forth herein constitute only allegations, and every fact described should be treated as an allegation.
Tennessee Man Sentenced to Prison for Filing False Retaliatory Lien and Making a False Tax Refund ClaimRead the Press Release
A Rogersville, Tennessee, resident was sentenced to 30 months in prison today for filing a fraudulent multi-million dollar lien against a government employee and filing a false claim for a tax refund, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, Brian Leo Snow failed to pay his federal tax liabilities for the years 2000 - 2008 and then became the subject of collection activity by the Internal Revenue Service (IRS). After being held in contempt of court for failing to provide documents and records to the IRS, Snow filed false retaliatory liens claiming that various government officials, including an IRS revenue officer, an Assistant United States Attorney, a United States District Court Judge, and the Clerk of Court for the Eastern District of Tennessee, owed him millions of dollars. Each of these government officials had been involved in attempts to collect Snow’s back taxes. Snow also filed three false claims with the IRS claiming over $144 million in tax refunds to which he was not entitled. Snow owes the IRS over $150,000 in taxes for tax years 2000-2008 and 2014-2015.
In addition to the term of imprisonment imposed, Snow was ordered to serve three years of supervised release and pay $154,025 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of the offices of the Treasury Inspector General for Tax Administration and IRS Criminal Investigation, who conducted the investigation, and Tax Division Senior Litigation Counsel Jen E. Ihlo, who prosecuted the case.
Ten people sentenced to prison for installing credit-card skimmers on gas pumps and stealing account information from thousands of peopleRead the Press Release
Ten people were sentenced to prison for their roles in a conspiracy to install credit-card skimmers on gas pumps in at least five states, including several locations in Northeast Ohio, and steal account information from thousands of people.
The sentences are as follows:
Ranset Rodriguez, 41, of Miami: 81 months in federal prison.
Jose Manuel Iglesias, 52, of West New York, New Jersey: 81 months in federal prison.
Yaniris Alfonso, 32, of Miami: 57 months in federal prison.
Edelberto Hernandez, 46, of Kiowa, Colorado: 33 months in federal prison
Yadian Quesada-Hernandez, 32, of Tampa: 30 months in federal prison.
Alejandro Moises, 53, of Miami: 24 months in federal prison.
Luis Enrique Jimenez Gonzales, 28, of Hialeah, Florida: 24 months in federal prison.
Eddy Pimentel-Vila, 46, of Jersey City, New Jersey: 24 months in federal prison.
Yonasky Rosa, 35, of Tampa: 22 months in federal prison.
Lester Enrique Castaneda, 39, of Hialeah, Florida: six months in federal prison and six months of home detention.
Juan Carlos Banos, 59, of Parma, and Carlos Rodriguez Martinez, 43, of Aurora, Colorado, remain at large.
The defendants conspired to install skimmers on point-of-sale terminals inside of gas pumps located in Ohio, Colorado, Maryland, Utah and elsewhere between August 2014 and July 2017. The defendants then re-encoded the stolen credit/debit card account information, including the actual account holders’ names, onto counterfeit credit cards, which were used to fraudulently purchase gift cards, merchandise, goods and services in Ohio and elsewhere, according to court documents.
The defendants traveled from Florida to install the skimmers and worked together to distract gas station employees and/or obstruct their view while the skimmers were covertly installed. Skimmers were discovered on gas pumps in Rocky River, Solon, Stow, Hudson, Fairview Park, Medina, Cleveland, Canton, Cuyahoga Falls, Norton, Austintown and elsewhere, according to court documents.
“This group stole credit card information from thousands of people all over Northeast Ohio just looking to fill up their gas tanks and continue on their way,” U.S. Attorney Justin E. Herdman said. “Instead, these victims had their personal information taken and used to make fraudulent credit cards, which this group in turn used to steal merchandise.”
“This sophisticated, multistate criminal enterprise stole credit card numbers from innocent folks putting gas in their cars,” said FBI Special Agent in Charge Stephen D. Anthony. “These individuals, now in prison, caused financial difficulties for numerous everyday citizens, and for this, they are being held accountable.”
“This investigation is a great example of how all levels of law enforcement worked together to dismantle a criminal organization which targeted unsuspecting victims from around the United States. The multiple arrests and successful prosecution could not have happened if it weren’t for the hard work and dedication from the men and women of the state police, local law enforcement, and FBI,” said Special Agent in Charge Jonathan Schuck, U.S. Secret Service - Cleveland Field Office. “The Secret Service is dedicated to protecting our nation’s financial infrastructure and this an example of one of the success stories.”
Assistant U.S. Attorneys Megan R. Miller and Robert W. Kern are prosecuting the case following an investigation by the Federal Bureau of Investigation, U.S. Secret Service and the Boulder County (Colorado) Sheriff’s Office.
Tennessee Nurse Practitioner Pleads Guilty for Role in $65 Million Tricare FraudRead the Press Release
NEWS RELEASE SUMMARY – November 27, 2018
Candace Michelle Craven, a Tennessee-based nurse practitioner pleaded guilty in federal court today, admitting that she participated in a health care fraud scheme that bilked TRICARE – the health care program that covers United States service members – out of more than $65 million. As part of her guilty plea, Craven admitted to conducting sham “telemedicine” evaluations that resulted in the prescription of exorbitantly expensive compounded medications to patients that she never saw or examined in person.
Craven entered her guilty plea, to conspiracy to commit health care fraud, before U.S. District Judge Janis L. Sammartino, who will sentence Craven at a hearing scheduled for February 8, 2019.
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient requires a particular dosage or application or is allergic to a dye or other ingredient.
According to the guilty plea, a team of individuals worked to recruit and pay Marines, primarily from the San Diego area, and their dependents – all TRICARE beneficiaries – to obtain compounded medications that would be paid for by TRICARE. This information was sent to Choice MD, the Tennessee medical clinic that employed Craven. Craven then conducted phone calls with the TRICARE beneficiaries, and recommended that they be prescribed compounded medications despite never examining the patients in person. These prescriptions were then signed by doctors employed by Choice MD, were not given to the beneficiaries, but sent directly to particular pharmacies controlled by co-conspirators, which filled the prescriptions and billed TRICARE at exorbitant prices.
Josh Morgan, a former Marine from San Diego, pleaded guilty in April to Conspiracy to Commit Health Care Fraud for his role in recruiting TRICARE beneficiaries to fraudulently receive these prescriptions. The doctors who signed the prescriptions, Carl Lindblad and Suzy Vergot, pleaded guilty to the same charges in September.
Between December 2014 and May 9, 2015 – the day that TRICARE stopped reimbursing for compounded medications – doctors working at Choice MD signed 4,442 total prescriptions. Over this time, their co-conspirators billed TRICARE $65,679,512 for these prescriptions.
Craven represents the seventh defendant charged in relation to this fraud scheme. In addition to Morgan, Lindblad, and Vergot, Jimmy and Ashley Collins, the owners of Choice MD, and CFK, Inc., the owner of a co-conspirator pharmacy, were indicted in March 2018 on charges of Conspiracy to Commit Health Care Fraud and Illegal Payments of Remunerations. That case remains pending.
This case is being prosecuted by Assistant United States Attorneys Benjamin J. Katz and Mark W. Pletcher.
DEFENDANTS Case Number 18-cr-4209-JLS
Michelle Candace Craven Age: 52
SUMMARY OF CHARGES
Conspiracy to Commit Health Care Fraud – Title 18, U.S.C § 1349
Maximum penalty: 10 years’ imprisonment and fine of higher of $250,000 or double loss amount
AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
IRS Criminal Investigation Division, Gulfport, MS
Federal Bureau of Investigation - Jackson, MS Field Office
South Bend, Indiana Man Sentenced to 64 Months in PrisonRead the Press Release
SOUTH BEND - Marvin Tobar, age 29, of South Bend, Indiana, was sentenced before South Bend District Court Judge Jon E. DeGuilio for possession of a firearm after having been convicted of a felony offense, announced U.S. Attorney Kirsch.
Tobar was sentenced to 64 months in prison followed by 1 year of supervised release.
According to documents in this case, on the afternoon of April 22, 2018, Tobar stood in the road in a neighborhood in South Bend and fired twenty (20) rounds from a .223 caliber rifle. Another man fired at least one shot from a handgun. At least one vehicle that was parked down the street from the incident was struck by a bullet. Numerous people were at home and present when Tobar fired his rifle. Several witnesses came outside, met police, and talked about the incident. After firing his rifle, Tobar ran inside a nearby house, hid the rifle in a crawlspace and hid the magazine in a closet. When police found the gun, the magazine was empty but the rifle still had one live round in the chamber. Tobar has three prior convictions for misdemeanors and two prior felonies. One of his prior felonies involved Tobar taking a loaded rifle onto school property. In 2011, Tobar was convicted of reckless homicide when he pulled a handgun and began shooting during a confrontation. When others joined him, a man was killed.
This case was investigated by ATF with assistance from the South Bend Police Department. The case was handled by Assistant U.S. Attorney Joel Gabrielse.
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Six MS-13 Members Charged with RICO ConspiracyRead the Press Release
BOSTON – Six members of the violent, transnational organization known as “La Mara Salvatrucha” or “MS-13” were indicted today in federal court in Boston with racketeering.
As alleged in the indictment, as part of the racketeering conspiracy, five of the six defendants participated in the murder of a teenage boy in Lynn, Mass., on or about July 30, 2018.
The indictment charges the following members of the Sykos Locos Salvatrucha clique:
- Erick Lopez Flores, a/k/a “Mayimbu,” 29, of Lynn;
- Henri Salvador Gutierrez, a/k/a “Perverso,” 19, a Salvadoran national previously residing in Somerville;
- Eliseo Vaquerano Canas, a/k/a “Peligroso,” 19, a Salvadoran national previously residing in Chelsea;
- Jonathan Tercero Yanes, a/k/a “Desalmado,” 21, a Salvadoran national previously residing in East Boston;
- Marlos Reyes, a/k/a “Silencio,” 22, a Salvadoran national previously residing in Chelsea; and
- Djavier Duggins, a/k/a “Haze,” 29, of Lynn.
The indictment also mentions an unnamed juvenile, who has been separately charged in a sealed information, as required by federal law.
Duggins was arrested today and will appear in federal court on Nov. 29, 2019, at 3:30 p.m. The five defendants accused of murder are currently detained on state charges or in immigration custody, and will appear in federal court in the days ahead.
As alleged in court documents, on Aug. 2, 2018, law enforcement officers responded to Henry Avenue Playground in Lynn, where a civilian had encountered the dead body of a young boy lying in a wooded area. Based on the condition of the body, it appeared that the victim had been murdered a few days prior to when the body was discovered.
It is alleged that Lopez, Salvador, Vaquerano, Tercero, and Reyes murdered the victim with premeditated malice, and with extreme atrocity and cruelty. The evidence includes a recording of Salvador allegedly describing the murder in graphic detail, including how he, Vaquerano, Tercero, and Yanes stabbed the victim numerous times while Lopez assisted. The recording also described Duggins as being a leader of the clique. The victim was allegedly targeted because the gang believed the victim had been cooperating with law enforcement.
“MS-13 is a ruthless, transnational gang operating in our backyard,” said United States Attorney Andrew E. Lelling. “This group routinely commits senseless acts of violence, including murder, to maintain control and instill fear. Dismantling MS-13 in Massachusetts and elsewhere is a top priority of the Department of Justice. Federal, state, and local law enforcement agencies will continue working together to investigate and hold MS-13 members responsible for these heinous crimes.”
“The murder of 17-year old Herson Rivas is another sobering example of the savagery of MS-13, the ruthlessness of its members, and the utter disregard they have for law and order, our communities, and the opportunities afforded to them while here in the United States. This barbaric behavior cannot and will not be tolerated, and law enforcement at all levels will continue to use all available resources, aggressively exploit all available intelligence, and work as one integrated team with the sole intention of preventing additional murders or future acts of violence,” said Harold H. Shaw, Special Agent in Charge of the FBI Boston Division. “I commend the FBI's North Gang Task Force for their unwavering pursuit of MS-13, the tremendous work conducted by our federal, state and local law enforcement partners regarding this threat, and the proactive efforts undertaken to move and share intelligence, all in an effort to stem the flow of violence. There is no place in society for MS-13---their violence and tactics need to be stopped---and this gang must be dismantled at all levels.”
“Today’s enforcement action demonstrates our continued unrelenting commitment to take the fight to MS-13,” said Peter C. Fitzhugh, Special Agent in Charge, Homeland Security Investigations, Boston. “Working closely with our state, local and federal partners, HSI is determined to dismantle this organization to make our communities in Massachusetts a safer place to live.”
“The brutal violence that is the hallmark of MS-13 is well-documented, and this case was yet another example of the gang’s ruthlessness,” said Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police. “I am extremely proud of the superb work done by the MSP Gang Unit, the State Police Detective Unit for Essex County, and the North Shore Gang Task Force, in conjunction with our federal and local partners, to speak for Herson Rivas and to seek justice for his family by developing the evidence that led to these indictments.”
“These indictments represent an extraordinary collaboration among local, state and federal law enforcement officers who worked tirelessly to identify and apprehend those responsible for the brutal murder of a 17-year old in a city park where children play.” Essex District Attorney Jonathan Blodgett said. “This combined effort should serve as notice to those who engage in gang activity and indiscriminate violence, that we will not rest in our pursuit of justice on behalf of victims and our duty to protect the community from this scourge.”
“I would like to commend the members of the Lynn Police Criminal Investigation Division, the Essex County State Police Detectives Unit, and the FBI for their work on this investigation,” said Lynn Police Chief Michael Mageary. “This was a very sensitive investigation from the beginning and because of the efforts of the investigators those responsible will be brought to justice. Our condolences go out to the Rivas family for their loss.”
According to court documents, MS-13 is a violent street gang whose branches or “cliques” operate throughout the United States, including Massachusetts. MS-13 members are required to commit acts of violence against rival gang members to gain promotions and to maintain membership and discipline within the group. Specifically, MS-13 members are required to attack and murder rival gang members whenever possible, and to attack and murder those suspected of cooperating with law enforcement. MS-13 often recruits younger members from schools and communities with large immigrant populations from Central America.
The charge of RICO conspiracy typically provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $250,000. However, Lopez, Salvador, Vaquerano, Tercero, and Reyes face up to life in prison because their racketeering activity involved murder. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling; FBI Boston SAC Shaw; HSI Boston SAC Fitzhugh; MSP Colonel Gilpin; Essex DA Blodgett; and Lynn Police Chief Mageary made the announcement today. The Boston, Chelsea, and Peabody Police Departments provided assistance with the investigation.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Sioux Falls Man and Woman Charged with Distribution of a Controlled Substance Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man and a Sioux Falls, South Dakota, woman have been indicted by a federal grand jury for Distribution of a Controlled Substance Resulting in Serious Bodily Injury.
Michael Wayne Cooper, age 57, was indicted on November 6, 2018. He appeared before U.S. Magistrate Judge Veronica L. Duffy on November 27, 2018, and pled not guilty to the Indictment.
Darcy Ranee Hoff, age 43, was indicted on November 6, 2018. She appeared before U.S. Magistrate Judge Veronica L. Duffy on November 20, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $1,000,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about August 11, 2018, Cooper and Hoff knowingly and intentionally distributed fentanyl which resulted in serious bodily injury to a victim. Fentanyl is a Schedule II controlled substance.
The charge is merely an accusation and Cooper and Hoff are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Drug Enforcement Administration. Assistant U.S. Attorney John E. Haak is prosecuting the case.
Cooper and Hoff were remanded to the custody of the U.S. Marshals Service pending trial, which has been set for January 29, 2019.
Shippensburg Man Sentenced to 84 Months’ Imprisonment for Drug TraffickingRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Eddie Viera, age 44, of Shippensburg, Pennsylvania, was sentenced on November 27, 2018, by Chief U.S. District Court Judge Christopher C. Conner to 84 months’ imprisonment for drug trafficking.
According to U.S. Attorney David J. Freed, Viera distributed and possessed with intent to distribute heroin. He was arrested by the Pennsylvania State Police on February 15, 2016 near mile marker 77 of Interstate 81 after a high speed pursuit for nearly 20 miles. Along the route of the pursuit, Troopers found over 950 individual packets of heroin which Viera had thrown out the window of his car. Viera was already the subject of an arrest warrant after members of the Franklin County Drug Task Force observed him allegedly distributing heroin and found over 70 individual packets of heroin in his apartment in December 2014.
Chief Judge Conner sentenced above the recommended guidelines in this case stating, among others, that Viera was “spectacularly incorrigible.”
The matter was investigated by the Franklin County Drug Task Force, the Pennsylvania State Police and the Federal Bureau of Investigation. Assistant U.S. Attorney Scott R. Ford prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Sex Offender from Illinois Pleads Guilty to Failing to Register in MississippiRead the Press Release
Gulfport, Miss. – Clynn Partee, 46, of Pascagoula, pled guilty today before U.S. District Judge Louis Guirola, Jr., to the federal crime of failure to register as a sex offender, announced U.S. Attorney Mike Hurst and U.S. Marshal George White.
Partee is scheduled to be sentenced by Judge Guirola on February 21, 2019, in Gulfport. He faces a maximum penalty of 10 years in prison in addition to a $250,000 fine and a minimum of 5 years to life of supervised release.
In 2006, Partee had been convicted in the Circuit Court of Cook County, Illinois, of Predatory Criminal Sexual Assault. This sexual offense was perpetrated against a 12-year old female victim, and Partee was sentenced to eight years with the Illinois Department of Corrections. Partee was deemed a Tier III Sex Offender and has a lifetime registration requirement. After his conviction in Illinois, Partee acknowledged his continuing requirement to register as a sex offender. In or about June 2015, Partee was released from Illinois state custody.
Later in 2015, Partee moved from Illinois to Mississippi. He did not register as required when he departed Illinois, and he did not register within the required time of his arrival in Mississippi. Partee was issued a Mississippi State Identification card in or about September 2015, with an address in Richton, Mississippi, and ultimately relocated to Pascagoula.
In September 2018, Pascagoula Police responded to a disturbance call at a hotel in Pascagoula and encountered Partee. While Partee was not arrested during that encounter, a National Criminal Information Center database check was conducted regarding him. It was brought to the attention of a sex offense investigator with the Jackson County Sheriff’s Office, that Partee was a convicted sex offender, and that he had been listed as a non-compliant sex offender in Illinois. The Jackson County Sheriff’s Office Investigator contacted the U.S. Marshals Service, which conducted further investigation.
The Marshals Service learned that Partee was not listed as a registered sex offender in the State of Mississippi, via the Mississippi Sex Offender Registry. The Marshals Service contacted the Mississippi Department of Public Safety concerning the Defendant’s current sex offender registration status. Mississippi authorities provided the Marshals Service with a letter certifying that Defendant Partee was not listed as a registered sex offender in Mississippi. The State of Mississippi also had not received a notification from the State of Illinois indicating the Defendant’s intent to relocate to Mississippi. It was conclusively determined that Partee had never registered as a sex offender in the State of Mississippi.
The Marshals Service investigation concluded that Partee’s current residence was at a Pascagoula hotel that also routinely houses a wide variety of people including children. Partee was arrested by local law enforcement officials as a non-compliant sex offender in September 2018. Subsequent to his federal indictment, Partee was arrested by the U.S. Marshal’s Service in October 2018.
The case was investigated by the U.S. Marshal’s Service, law enforcement officials in the State of Illinois, the Mississippi Department of Public Safety, the Jackson County, Mississippi, Sheriff’s Office, and the City of Pascagoula Police Department. The case is being prosecuted by Assistant U.S. Attorney Stan Harris.
Rosebud Man Sentenced for Firearm ConvictionRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person, was sentenced on November 26, 2018, by U.S. District Judge Roberto A. Lange.
Antonio Siers, age 22, was sentenced to 14 months in federal prison, followed by 3 years of supervised release, a $1,000 fine, forfeiture of two firearms, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Siers was indicted by a federal grand jury on May 15, 2018. He pled guilty on September 5, 2018.
The conviction stemmed from an incident that occurred on July 12, 2017, where Siers, being an unlawful user of and addicted to a controlled substance, knowingly possessed two firearms. Law enforcement made contact with Siers and a co-defendant during the middle of a drug transaction, where the 2 firearms and 14 grams of methamphetamine were seized.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Siers was immediately turned over to the custody of the U.S. Marshals Service.
Rosebud Man Sentenced for Assault and Voluntary ManslaughterRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury, Aiding and Abetting, and Voluntary Manslaughter was sentenced on November 26, 2018, by U.S. District Judge Roberto A. Lange.
Dallas Burning Breast, age 26, was sentenced to 96 months in federal prison for the Voluntary Manslaughter charge, and 36 months for the Assault charge, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Burning Breast was indicted by a federal grand jury on the Assault charge on February 14, 2018, and on the Voluntary Manslaughter charge by a federal grand jury on March 13, 2018. He pled guilty on September 5, 2018.
The convictions stem from two separate incidents, one that occurred on July 2, 2017, and the other that occurred on March 5, 2018. On July 2, 2017, Burning Breast beat an individual with brass knuckles in his yard, with the intent to do bodily harm, and the assault resulted in serious bodily injury. On March 5, 2018, Burning Breast was arguing with another man at a house in Rosebud. The argument tuned into a physical altercation and Burning Breast picked up a knife and stabbed the man in the upper thigh. The knife penetrated the man’s femoral artery, causing significant blood loss. The victim subsequently died at the Rosebud Indian Health Services Hospital in Rosebud.
These cases were investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted both cases.
Burning Breast was immediately turned over to the custody of the U.S. Marshals Service.
Rochester Man Sentenced to 16 Years in Federal Prison for A Series of Store/Restaurant RobberiesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Fred Swan, Jr., 30, of Rochester, NY, who was convicted of Hobbs Act Robbery, Attempted Hobbs Act Robbery, and brandishing a firearm during a crime of violence, was sentenced to serve 192 months in prison by Chief U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorney Katelyn M. Hartford, who handled the case, stated that the defendant robbed four establishments at gunpoint between February 11, 2017, and March 24, 2017:
o On February 11, 2017, the defendant robbed the China Star restaurant at 600 West Main Street in Rochester. Swan entered the store and pointed a handgun at a restaurant employee and demanded money. The defendant grabbed approximately $60 cash from the store employee’s hand and fled the restaurant on foot;
o On February 18, 2017, the defendant robbed Alice’s Market convenience store at 1477 South Avenue in Rochester. Swan entered the store, went up to the register, pointed a handgun at the store clerk, and demanded money. The clerk gave the defendant approximately $50 cash from the register. The defendant fled from the store and was driven away from the scene by another individual;
o On February 19, 2017, the defendant robbed the Mobil Quick Mart store at 1810 Mount Hope Avenue in Rochester. Swan entered the store and pointed a handgun at a store employee as he approached the counter and demanded money from the register. The employee refused to give Swan money. The defendant walked around the counter and struck the employee in the head with the handgun, and the two of them fell to the floor fighting. Swan eventually fled the store without getting any money; and
o On March 24, 2017, the defendant robbed the Fast Mart Inc. store at the Valero gas station at 931 South Clinton Avenue in Rochester. Swan entered the store, pointed a handgun at the store clerk, and demanded money. The clerk handed over $280 cash from the register. The defendant then demanded two packs of cigarettes, which the clerk handed to him. Swan fled the store with the cash and cigarettes.
On March 24, 2017, law enforcement officers searched the defendant’s apartment at 229 Meigs Street in Rochester and they recovered the .40 caliber handgun that was used in the Alice’s Market robbery.
Today’s sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, the Rochester Police Department, under the direction of Chief Mark Simmons, and the New York State Police, under the direction of Major Eric Laughton.
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Ringleader of Florida-Based Identity Theft Scheme Sentenced to 78 Months in Federal PrisonRead the Press Release
Last of Ten Defendants Sentenced in Scheme That Involved Installing Card- Skimming Devices in Gas-Pumps, Creating Cloned Credit Cards Using Captured Account Numbers, and Using Cloned Cards to Bulk-Buy Prepaid Cards at Meijer Branches Throughout the Greater Grand Rapids, Kalamazoo and Lansing Areas
GRAND RAPIDS, MICHIGAN — Guillermo Rodriguez, 45, of Miami, Florida, was sentenced to serve 78 months in the Federal Bureau of Prisons for leading a wire-fraud and identity-theft conspiracy that operated between Florida and Michigan for several months during 2015, U.S. Attorney Andrew Birge announced today.
Rodriguez is the last of a total of 10 defendants sentenced in the course of a long-running investigation that was led by the U.S. Attorney’s Office and the Lansing office of the FBI’s Detroit Division, and that resulted in three related cases that were prosecuted in U.S. District Court in Grand Rapids. In addition to Rodriguez, the following defendants, all of whom were residents of the Miami, Florida, area, received lesser prison sentences based on their varying roles in the scheme and whether they cooperated with investigators after their arrests: Yunier Cudello-Albelo, 33, was sentenced to serve 69 months; Yaimari Gonzalez-Santos, 39, was sentenced to serve 12 months; Juan Ledesma, 27, was sentenced to serve 63 months; Elisabe Hernandez-Perez, 46, was sentenced to serve 12 months; Yoel Alfonso, 39, was sentenced to time-served in pretrial detention; Dunieski Gutierrez, 41, was sentenced to serve five months; Jesus Carrazana, 45, was sentenced to serve six months; Isabel Tiedemann, 29, was sentenced to time-served in pretrial detention; and Yimi Garcia-Rodriguez, 29, was sentenced to serve 24 months.
"This is the second gas-pump skimmer scheme my Office has prosecuted over the last few years," stated U.S. Attorney Birge. The first involved a group operating out of Austin, Texas, and resulted in seven convictions and a prison sentence of over 12 years for its leader, Antonio Dejesus Perez-Martinez. "This second investigation and series of prosecutions should send a second strong message to any group that might contemplate coming into West Michigan to carry out this scheme that we are ready, willing, and able to federally prosecute every member of that group. If a criminal is bound and determined to commit gas-pump identity theft, West Michigan is definitely not the place they want to try it."
"The crime of identity theft and the scams associated with it have become more sophisticated and pervasive. These individuals thought they could target victims around the country with impunity," said Timothy R. Slater, Special Agent in Charge of the FBI’s Detroit Division. "The FBI, along with our federal, state and local partners, is dedicated to stopping these perpetrators and educating the public so that citizens do not fall victim to these schemes."
The United States was represented by Assistant U.S. Attorney Hagen W. Frank. The case was investigated primarily by the Federal Bureau of Investigation, with assistance from the Ingham County Sheriff’s Office, the Eaton County Sheriff’s Office, the Grand Rapids Metropolitan Fraud and Identity Theft Team, the Michigan State Police, the Unites States Postal Service, and the Michigan Department of Weights and Measures (which has regulatory responsibility over commercial gas pumps). Employees of Meijer Theft Protection Services also provided valuable assistance.
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Rapid City Man Sentenced for Internet CrimeRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Attempted Transfer of Obscene Material to a Minor was sentenced on November 19, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Christopher James Perry, age 37, was sentenced to 12 months in federal prison, followed by 2 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Perry also may be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Perry was charged on February 21, 2018. The conviction stems from Perry sending an obscene image of himself to someone he believed to be a 15 year-old girl via the internet, in August 2017 at Rapid City.
The case was investigated by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Rapid City Man Sentenced for Escape and Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Escape and Failure to Register as a Sex Offender was sentenced on November 26, 2018, by U.S. District Judge Roberto A. Lange.
Brady Makes Room For Them, age 34, was sentenced to 20 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Makes Room For Them was indicted by a federal grand jury for the Escape charge on April 19, 2016, and on the Failure to Register as a Sex Offender on May 17, 2016. He pled guilty on September 20, 2018.
The convictions stem from the same incident, the Escape charge occurred on April 4, 2016, and the Failure to Register as a Sex Offender violation occurred on April 7, 2016. On April 4, 2016, Makes Room For Them escaped from custody of the Bureau of Prisons at the Community Alternatives of the Black Hills (CABH), where he was lawfully confined upon conviction for a federal felony offense. Makes Room For Them left the CABH and did not return to the facility as required. Makes Room For Them was convicted of Abusive Sexual Contact in September 2005. As a result of this conviction, he is required to register as a sex offender. Makes Room For Them was aware of his obligation to update his sex offender registration and failed to do so. Following his escape from CABH, Makes Room For Them did not update his registration.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Makes Room For Them was immediately turned over to the custody of the U.S. Marshals Service.
Queens Man Pleads Guilty to Stolen Identity Refund FraudRead the Press Release
SYRACUSE, NEW YORK – Miles Bailey, age 53, of Queens, New York, and formerly of Albany, pled guilty today to conspiring to commit theft of public money, theft of public money, and aggravated identity theft. Bailey was set to stand trial beginning today in Syracuse.
The announcement was made by United States Attorney Grant C. Jaquith and James Robnett, Special Agent in Charge of the New York Field Office of Internal Revenue Service (IRS)-Criminal Investigation.
As part of his plea, Bailey admitted that between March 2011 and July 2014, he and others knowingly submitted fraudulent income tax returns to the IRS on behalf of at least 50 individual victims. The returns falsely claimed that these individuals were entitled to income tax refunds from the federal government. The conspirators obtained the resulting fraudulent tax refund checks from the Department of the Treasury by mail. Bailey then deposited the checks into his various bank accounts and spent or distributed the proceeds.
Bailey faces at least 2 years and up 10 years in prison, and up to 3 years of post-imprisonment supervised release, when Senior United States District Judge Frederick J. Scullin Jr. sentences him on May 20, 2019. Bailey will also be required to pay a forfeiture money judgment of approximately $1,963,991, which was the amount of fraudulent proceeds that he deposited into his bank accounts.
Two co-conspirators, Eric Thorne, age 50, of Albany, and James Simmons, age 50, of Rensselaer, previously pled guilty to conspiracy to commit theft of public funds and will be sentenced on May 21, 2019.
This case was investigated by IRS-Criminal Investigation, the Town of Colonie Police Department, the Town of Niskayuna Police Department, the City of Albany Police Department, the New York State Police, and the United States Postal Inspection Service.
This case is being prosecuted by Assistant U.S. Attorney Megan Kistler.
President and CEO of Las Vegas Investment Company Convicted of $1.5 Billion Ponzi SchemeRead the Press Release
The former president and CEO of MRI International Inc. (MRI), a purported investment company and medical collections business located in Las Vegas, Nevada, and Tokyo, Japan, was convicted yesterday for his role in a $1.5 billion Ponzi scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Dayle Elieson of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division made the announcement.
After a five-week jury trial before Chief Judge Gloria Navarro of the U.S. District Court for the District of Nevada, Edwin Fujinaga, 72, of Las Vegas, was found guilty of eight counts of mail fraud, nine counts of wire fraud, and three counts of money laundering in connection with his Ponzi scheme. Sentencing is set for March 8, 2019. The jury returned the guilty verdict in under three hours.
Evidence presented during trial showed that from 2000 until 2013, Fujinaga fraudulently solicited over $1 billion in investments in MRI from over 10,000 Japanese residents, who wired their funds from Japan to bank accounts in Las Vegas under Fujinaga’s control. Fujinaga approved and disseminated marketing materials that promised investors that their funds would only be used for purchasing medical claims and that an escrow agent would ensure that MRI used investor funds for only that purpose. In truth, Fujinaga spent less than two percent of investor funds to purchase medical claims. Instead, Fujinaga used the vast majority of new investors’ funds to pay off old investors. He used the balance of investors’ funds for impermissible business and lavish personal expenses, such as a private jet; a mansion on a Las Vegas golf course; real estate in Beverly Hills, California wine country, and Hawaii; and luxury cars from Bentley, McLaren, and Bugatti. When the Japanese government revoked MRI’s license to market securities in April 2013, MRI owed its investors more than $1.5 billion.
The case was investigated by the FBI. The Criminal Division’s Office of International Affairs, the Securities and Exchange Commission, the Japanese Financial Services Agency, the Ministry of Justice of Japan and the Ministry of Foreign Affairs of Japan provided substantial assistance in this matter. The case is being prosecuted by Assistant Chief Albert Stieglitz, Trial Attorneys William Johnston and Danny Nguyen of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tony Lopez of the District of Nevada.
President and CEO of Las Vegas Investment Company Convicted of $1.5 Billion Ponzi SchemeRead the Press Release
LAS VEGAS, Nev. – The former president and CEO of MRI International Inc. (MRI), a purported investment company and medical collections business located in Las Vegas, Nevada, and Tokyo, Japan, was convicted yesterday for his role in a $1.5 billion Ponzi scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Dayle Elieson of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division made the announcement.
After a five-week jury trial before Chief Judge Gloria Navarro of the U.S. District Court for the District of Nevada, Edwin Fujinaga, 72, of Las Vegas, was found guilty of eight counts of mail fraud, nine counts of wire fraud and three counts of money laundering in connection with his Ponzi scheme. Sentencing is set for March 8, 2019. The jury returned the guilty verdict in under three hours.
Evidence presented during trial showed that from 2000 until 2013, Fujinaga fraudulently solicited over $1 billion in investments in MRI from over 10,000 Japanese residents, who wired their funds from Japan to bank accounts in Las Vegas under Fujinaga’s control. Fujinaga approved and disseminated marketing materials that promised investors that their funds would only be used for purchasing medical claims and that an escrow agent would ensure that MRI used investor funds for only that purpose. In truth, Fujinaga spent less than two percent of investor funds to purchase medical claims. Instead, Fujinaga used the vast majority of new investors’ funds to pay off old investors. He used the balance of investors’ funds for impermissible business and lavish personal expenses, such as a private jet; a mansion on a Las Vegas golf course; real estate in Beverly Hills, California wine country, and Hawaii; and luxury cars from Bentley, McLaren and Bugatti. When the Japanese government revoked MRI’s license to market securities in April 2013, MRI owed its investors more than $1.5 billion.
The case was investigated by the FBI. The Criminal Division’s Office of International Affairs, the Securities and Exchange Commission, the Japanese Financial Services Agency, the Ministry of Justice of Japan and the Ministry of Foreign Affairs of Japan provided substantial assistance in this matter. The case is being prosecuted by Trial Attorneys William Johnston and Danny Nguyen of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tony Lopez of the District of Nevada.
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Pittsburgh Resident Sentenced to 3+ Years in Prison for Fraud SchemeRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to three years and three months in prison, followed by three years supervised release, and was ordered to pay $16,000 in restitution after being convicted on wire fraud and aggravated identity theft charges, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on U-Majesty Williams, 22, of Pittsburgh.
According to information presented to the court, Williams participated in a conspiracy to violate various federal identity theft laws. In summary, conspirators obtained the personal identification information a various individual victims, and members of the conspiracy, including Williams, used that information, along with counterfeit credit cards and counterfeit Ohio driver licenses, to rent vehicles, to apply for credit, and to make purchases, all without the authorization of those victims. Specifically, Williams and a conspirator applied for credit in a victim’s name at a Kay’s Jewelers in Ross Park Mall, using that victim’s name, date of birth, and social security number, along with a counterfeit Ohio driver license in the victim’s name but with Williams’ picture. With the credit, Williams and a conspirator obtained more than $7,000 in jewelry.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Secret Service and the United States Postal Inspection Service, in conjunction with the multiple police departments in Pennsylvania and Ohio, including police departments from Columbus, Ohio, Canfield, Ohio, Bucks County, Ohio, Allegheny County, Pennsylvania, Pittsburgh, Pennsylvania, Ross Township, Pennsylvania, and Wilkins Township, Pennsylvania for the investigation leading to the successful prosecution of Williams.
Physicians pay more than $1.5 million to government for kickback schemeRead the Press Release
WHEELING, WEST VIRGINIA – Four physicians from three states have settled with the United States Government for their roles in a kickback scheme that included West Virginia physicians, United States Attorney Bill Powell announced.
Four physicians each agreed to a settlement with the United States Government after being 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 (“Stark”), and the Anti-Kickback Statute. They are:
• Dr. Thomas Baker, of Tennessee, who paid $484,481.80
• Dr. Carolyn Kochert, of Indiana, who paid $129,682.84
• Dr. Larry L. Zhou, of Kentucky, who paid $277,758.18
• Dr. Julie Y. Chao, of Indiana, who paid $650,000“We will continue to do our part to recover all proceeds of improper claims paid by the United States. Fraud and abuse will never be tolerated in this district, and we will continue to pursue those who have obtained taxpayer dollars by improper means,” said Powell.
Assistant U.S. Attorney Alan McGonigal litigated the cases on behalf of the government. The Federal Bureau of Investigation and the Office of Inspector General – Department of Health and Human Services investigated.
Phoenix Couple Sentenced to Prison for Credit Card FraudRead the Press Release
PHOENIX – This week, Antoinette Suzanne Arangua, 34, of Phoenix, Ariz., was sentenced by U.S. District Judge Diane J. Humetewa to 30 months in prison followed by three years of supervised release. Arangua’s co-defendant, Dewayne Frederick Johnson, 37, of Phoenix, Ariz., was sentenced in September to 46 months in prison followed by three years of supervised release. Arangua and Johnson had previously pleaded guilty to one count of conspiracy to possess 15 or more stolen credit card numbers.
Arangua and Johnson admitted to using stolen credit card numbers to buy gift cards, get cash, and make other purchases throughout the Phoenix area between February 2017 and October 2017. Arangua and Johnson encoded stolen credit card numbers onto other credit cards, tested the stolen numbers at various stores and gas stations, and then used them to make larger purchases. During a search in October 2017, Arangua and Johnson were found with more than 1,700 stolen credit card numbers, more than 100 fabricated credit cards, two credit card embossers, a credit card reader/encoder, and approximately 74 gift cards and prepaid debit cards they had purchased using stolen credit card numbers.
The investigation in this case was conducted by the United States Secret Service. The prosecution was handled by Bridget Minder, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-18-00346-001-PHX-DJH
RELEASE NUMBER: 2018-161_ Arangua etal
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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.
Pearl Man Sentenced to Nearly Two Years in Prison under Project EJECT for Being a Felon in Possession of a FirearmRead the Press Release
Jackson, Miss – Gino Washington, 26, of Pearl, Mississippi, was sentenced Monday by U.S. District Judge Carlton W. Reeves to 20 months in prison, followed by three years of supervised release, for possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. He was also required to forfeit the firearm and pay a $1,000 fine.
On December 6, 2017, the Jackson Police Department made a traffic stop of a vehicle wherein Washington was a passenger. Washington initially gave the officer a false name when a firearm was taken from his waistband during the traffic stop in Jackson. The arresting officer determined he had been given a false name and Washington then admitted to his real identity when confronted about his deception. Washington has a prior felony conviction for house burglary.
This case was investigated by the Jackson Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Pascagoula Drug User Sentenced to 33 Months in Federal Prison for Illegally Possessing a Firearm as an Unlawful User of Controlled SubstancesRead the Press Release
Gulfport, Miss – Cornelius Javon Massey, 20, of Pascagoula, was sentenced today by U.S. District Judge Sul Ozerden to 33 months in prison, followed by 3 years of supervised release, for illegally possessing a firearm as an unlawful user of controlled substances, announced U. S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Massey was in a car with three others pulled over by the Pascagoula Police Department on March 31, 2018. Once stopped and the windows down, the officer noticed a .223 caliber rifle with a large magazine laying in the rear floorboard. The officer noticed a handgun in the glove compartment when the driver reached for proof of insurance. A narcotics dog alerted for the presence of narcotics in the car. A search yielded marijuana and a grinder, the rifle, a Glock pistol with 4 magazines, a Springfield Arms 9mm pistol with a loaded magazine, and 2 ski masks. Massey admitted in an interview that he smoked marijuana regularly. Under Federal law, unlawful users of controlled substances are prohibited from possessing firearms.
The Pascagoula Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It was prosecuted by Assistant United States Attorney Annette Williams.
Parmelee Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Parmelee, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Lionel Eugene Roubideaux, age 55, was indicted on October 16, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 27, 2018, 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 of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Roubideaux was convicted of Aggravated Sexual Abuse in December 1987. As a result of this conviction, he is required to register as a sex offender for his natural life. It is alleged that between March 17, 2018 and August 14, 2018, Roubideaux, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender.
The charge is merely an accusation and Roubideaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Roubideaux was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Ohio Woman Pleads Guilty in Cocaine Distribution ConspiracyRead the Press Release
PITTSBURGH - A resident of Columbus, OH pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Shellie Neighbors, 59, pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that from in and around January 2016, and continuing thereafter to in and around May 2016, Neighbors conspired with others to distribute, and possess with intent to distribute, cocaine, a Schedule II controlled substance.
Judge Conti scheduled sentencing for March 20, 2019 at 2:30 p.m. The law provides for a total sentence of not more than 20 years in prison, a fine not to exceed $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation that led to the prosecution of Shellie Neighbors The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Pennsylvania Office of the Attorney General, Ambridge Police Department, New Brighton Police Department, Beaver Police Department, Aliquippa Police Department, Moon Township Police Department, Wilkinsburg Police Department, West Mifflin Police Department, Allegheny County Police Department, Duquesne Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Opioid Crisis UpdateRead the Press Release
SIOUX FALLS, S.D. – United States Attorney Ron Parsons today announced additional progress made in the past six weeks by law enforcement in the fight against opioids. The epidemic of opioid abuse and addiction is, by now, distressingly familiar. In 2017 alone, over 70,000 people in the United States suffered a fatal overdose and countless others suffered nonfatal overdoses because they were revived by first responders using Narcan. To combat this crisis, the Department of Justice is dedicating tremendous resources to reduce the supply of illicit opioids (primarily heroin and fentanyl).
“Federal, state, local, and tribal task force officers are working these cases hard in every corner of the state,” said U.S. Attorney Parsons. “And we’re not going to let up. We’re going to hammer the traffickers who are dealing these poisons with everything we’ve got.”
The following federal criminal investigations, involving at least 19 defendants, have resulted in indictments, arraignments, guilty pleas, or prison sentences in opioid-related prosecutions by the U.S. Attorney’s Office for the District of South Dakota since the beginning of October 2018.
Indictments
Stuart Siecke, Dean Bourn, and Deon Hillard. On October 10, 2018, Stuart Harlon Siecke (age 27) of Worthing, SD, Dean Joseph Bourn (age 36) of Vermillion, SD, and Deon Lee Hillard (age 30) of Minneapolis, MN, were indicted by a federal grand jury in Sioux Falls for Conspiracy to Distribute a Controlled Substance. The three men are alleged to be part of a fentanyl distribution ring stretching from Minneapolis to Yankton, SD. Hillard’s federal indictment came while he was released on bond after being charged in Minnesota state court for causing a fentanyl overdose death. These charges are merely accusations and Siecke, Bourn, and Hillard are presumed innocent unless and until proven guilty.
Maurice Cathey and Corrod Phillips. On October 10, 2018, a superseding indictment was filed against Maurice Bellafonta Cathey, also known as “Short,” (age 38) of Sioux Falls, SD, and Corrod Leon Phillips (age 27) of Sioux Falls, SD, for Conspiracy to Distribute a Controlled Substance, namely heroin. Cathey also was charged with one count of Distribution of a Controlled Substance Resulting in Death and two counts of Distribution Resulting in Serious Bodily Injury. In addition, Phillips was charged with two counts of Distribution Resulting in Serious Bodily Injury. The defendants are alleged to have been heroin dealers responsible for numerous overdoses in the Sioux Falls area. A jury trial before U.S. District Judge Karen E. Schreier is set to begin on January 29, 2019. These charges are merely accusations and Cathey and Phillips are presumed innocent unless and until proven guilty.
Sarah Bailey, a/k/a/ Sarah Johnson and Justin Johnson. On October 23, 2018, a superseding indictment was filed against Sarah Bailey, also known as Sarah Johnson (age 40) and Justin Johnson (age 37), both of Rapid City, SD, charging them with Conspiracy to Distribute a Controlled Substance, namely heroin. Bailey also was charged with Distribution of a Controlled Substance Resulting in Serious Bodily Injury and Distribution of a Controlled Substance to a Person under Age 21. In addition, Justin Johnson was charged with two counts of Distribution of a Controlled Substance. It is alleged that these defendants were dealing heroin in Rapid City, and that Bailey provided the heroin that caused the overdose of a 15-year-old boy. These charges are merely accusations and Bailey and Johnson are presumed innocent unless and until proven guilty.
Alyssa Tuttle. Alyssa Tuttle (age 28) of Peever, SD, was indicted by a federal grand jury for Obtaining a Controlled Substance by Fraud on September 5, 2018. On November 1, 2018, she was arraigned before U.S. Magistrate Judge William D. Gerdes and pleaded not guilty to the Indictment. It is alleged that on or about February 2, 2018, Tuttle knowingly and intentionally acquired and obtained hydrocodone, a Schedule II controlled substance, by misrepresentation, fraud, forgery, deception, and subterfuge in Watertown, SD. The charge is merely an accusation and Tuttle is presumed innocent unless and until proven guilty.
Darcy Hoff and Michael Cooper. Michael Wayne Cooper (age 57) of Sioux Falls, SD and Darcy Ranee Hoff (age 43) of Sioux Falls, SD, were indicted by a federal grand jury on November 6, 2018, for Distribution of a Controlled Substance Resulting in Serious Bodily Injury. It is alleged that these defendants were dealing fentanyl that resulted in the overdose of a victim in Sioux Falls. Hoff was arraigned on November 20, 2018, before U.S. Magistrate Judge Veronica L. Duffy and pleaded not guilty to the indictment. Hoff was ordered to be detained and remanded to the custody of the U.S. Marshals. Cooper is still at large and actively sought by federal authorities. He was last known to reside in Sioux Falls but has strong ties to the Chicago area, as well as Louisiana. Anyone with information about Cooper’s whereabouts can contact the U.S. Marshal Service at (605) 330-4356 or by email at [email protected].
Guilty Pleas
Andy Ontiveros. On October 16, 2018, Andy Ontiveros (age 39) of South Gate, CA, pleaded guilty in federal court to Possession with Intent to Distribute 400 grams or more of a substance containing fentanyl. On or about May 28, 2018, Ontiveros was inside his parked vehicle on the shoulder of I-29 in Minnehaha County, SD. A Deputy with the Minnehaha County Sheriff’s Office approached and requested assistance from the South Dakota Highway Patrol. Ontiveros gave consent for the officers to search the vehicle. The search uncovered 2,680 grams of heroin and 993 grams of fentanyl hidden inside the vehicle. This is believed to be the largest combined seizure of heroin and powdered fentanyl in South Dakota history. Ontiveros has admitted that he intended to distribute the substances both in South Dakota and elsewhere. Sentencing is scheduled for January 14, 2018 before Judge Schreier. The penalty is a mandatory minimum sentence of 10 years in federal prison and maximum sentence of life, and/or $10 million dollar fine, or both. The term of supervised release is a minimum of 5 years and maximum of life.
Shania Hofer. On October 22, 2018, Shania Rose Hofer (age 21) of Sioux Falls, SD, pleaded guilty to Distribution of a Controlled Substance Resulting in Serious Bodily Injury. On or about April 23, 2018, Hofer knowingly and intentionally distributed a mixture and substance containing heroin to an individual in Sioux Falls. Later that day, the person used the heroin sold by Hofer and was found unconscious. First responders were unable to find the victim’s pulse and observed that he was not breathing. They began to perform CPR and administered two doses of Narcan before he was revived. While at the scene, law enforcement collected a syringe found next to the victim that tested positive for both heroin and fentanyl. But for the use of the heroin provided by Hofer, the victim would not have stopped breathing, which caused a substantial risk of death. Sentencing is scheduled before Judge Schreier on January 4, 2019. Hofer faces a mandatory minimum sentence of 20 years in federal prison up to life, a $1 million fine, or both, and a term of supervised release from three years to life.
Cory Poelstra. On October 31, 2018, Cory Michael Poelstra (age 29) of Yankton, SD, appeared before Judge Schreier and pleaded guilty to a Superseding Information that charged him with Conspiracy to Distribute a Controlled Substance, namely fentanyl. During his involvement in the conspiracy, Poelstra ordered fentanyl from the "Dark Web" and had it shipped to Yankton. He then sold fentanyl to various customers in South Dakota. He also was aware that some of his fentanyl customers were reselling it to others. Sentencing is scheduled before Judge Schreier for January 28, 2019. Poelstra faces a maximum sentence of 20 years in federal prison, a $1 million fine, or both, and a term of supervised release.
Troy Adolfson. On November 14, 2018, Troy Edward Adolfson (age 47), now of Pella, IA, pleaded guilty to Distribution of a Controlled Substance in violation of federal law. Between January 9 and April 17, 2017, Adolfson, then a licensed physician in Aberdeen, SD, illegally distributed oxycodone to others by writing prescriptions for oxycodone pills to a coworker, who would get the prescriptions filled and give Adolfson the pills. Adolfson would give the coworker some of the pills and cash for getting the prescription filled. Adolfson made the same arrangement with two other individuals, and estimates he illegally prescribed 1,400 pills of oxycodone in this manner. Sentencing is scheduled before U.S. District Judge Charles B. Kornmann on May 13, 2019. Adolfson faces a maximum sentence of 20 years in federal prison, a $1 million fine, or both, and a term of supervised release.
Devlin Tommeraasen. On November 16, 2018, Devlin Tommeraasen (age 23) of Harrisburg, SD, pleaded guilty to Conspiracy to Distribute a Controlled Substance. As part of his involvement in the conspiracy, Tommeraasen purchased heroin from co-conspirators and sold it in the Sioux Falls area. He accompanied a co-conspirator on a trip from Sioux Falls to Minneapolis and back to purchase heroin for distribution in the Sioux Falls area. Sentencing is scheduled before Judge Schreier for February 4, 2019. Tommeraasen faces a maximum sentence of 20 years in prison, a $1 million fine, or both, and a term of supervised release.
Federal Prison Sentences
Tyler Woodraska, Trevor Harden, Rodney Rohrbach, Sr., Rodney Rohrbach, Jr. Four South Dakota fentanyl dealers convicted of Conspiracy to Distribute a Controlled Substance have been sentenced by Judge Schreier, the most recent on October 15, 2018. Tyler Wayne Woodraska (age 25) of Oacoma, SD, was sentenced on October 15, 2018, to 63 months in federal prison and three years of supervised release. Trevor Robert Harden (age 20) of Chamberlain, SD, was sentenced on April 30, 2018, to 108 months in federal prison and three years of supervised release. Rodney Scott Rohrbach, Sr., a/k/a “Scott” (age 51) of Chamberlain was sentenced on August 20, 2018, to 84 months in federal prison and three years of supervised release. Rodney Scott Rohrbach, Jr., a/k/a “Bubba” (age 26) of Chamberlain was sentenced on July 30, 2018, to 97 months in federal prison and three years of supervised release. The convictions stem from incidents ending on or about June 19, 2017, when the Defendants knowingly and intentionally conspired with others to acquire fentanyl and cyclopropylfentanyl, both Schedule II controlled substances, using the “Dark Web” and distribute it in South Dakota. Woodraska, Harden, Rohrbach, Sr., and Rohrbach, Jr. were immediately turned over to the custody of the U.S. Marshals Service.
All of these recent developments in the District of South Dakota have occurred as the Drug Enforcement Administration released its 2018 National Drug Threat Assessment, which outlines the threats posed to the United States by domestic and international drug trafficking and the abuse of illicit drugs.
“Hot off the presses, the new DEA threat assessment underscores the broad scope and severe magnitude of the ongoing opioid crisis in the United States,” said U.S. Attorney Parsons. “It represents the sum of all the data and critical intelligence from our law enforcement partners gathered over the past year. It highlights the need to use every tool at our disposal in our collective mission to defeat this horrific and deadly epidemic.”
Key findings in the report include:
- Controlled prescription drugs remain responsible for the largest number of overdose deaths of any illicit drug class since 2001. These drugs are the second most commonly abused substance. Traffickers are now disguising other opioids as controlled prescription drugs to gain access to this market.
- Heroin-related drug-poisoning deaths almost doubled between 2013 and 2016. This has been exacerbated by the increased adulteration of heroin with fentanyl and other synthetic opioids. Heroin now available in U.S. markets is primarily sourced from Mexico, where opium poppy cultivation and heroin production have both increased significantly in recent years.
- Of all opioids, the abuse of illicit fentanyl and other synthetic opioids has led to the greatest number of deaths in the United States. Fentanyl is increasingly available in the form of counterfeit prescription pills marketed for illicit street sales, and also sold by traffickers on its own, without the presence of other drugs.
The 2018 National Drug Threat Assessment can be accessed here.
The cases listed above are being investigated by the Drug Enforcement Agency (DEA), Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), Unified Narcotics Enforcement Team (UNET), U.S. Postal Service, U.S. Department of Health and Human Services OIG/OI, South Dakota Division of Criminal Investigation (DCI), South Dakota Highway Patrol, Minnehaha County Sheriff’s Office, Sioux Falls Police Department, Yankton Police Department, Minneapolis Police Department, and the Sioux Falls Area Drug Task Force. Assistant U.S. Attorneys John Haak, Jennifer Mammenga, Benjamin Patterson and Tamara Nash are prosecuting the cases.
North Carolina Man Indicted on a Federal ChargeRead the Press Release
Danville, VIRGINIA – A federal grand jury sitting in the Western District of Virginia in Charlottesville has indicted a North Carolina man on a federal charge of violating a protective order. United States Attorney Thomas T. Cullen and Special Agent in Charge Adam S. Lee of the FBI’s Richmond Division made the announcement today.
Carl Ray Kennedy, 51, of Randleman, N.C., was charged today in a federal indictment with one count of traveling in interstate commerce from North Carolina to Virginia with the intent to engage in conduct that would violate a Family Abuse protective order issued in May 2018 by the Pittsylvania County, Virginia Juvenile and Domestic Relations Court.
“As today’s indictment indicates, the Department of Justice will use all available tools to prosecute individuals who travel in interstate commerce in violation of state protective orders,” U.S. Attorney Cullen stated today. “We are grateful for the hard work and diligence of the FBI, the Pittsylvania County Sheriff’s Office, and the Danville Police Department in resolving this dangerous situation and bringing the defendant to justice.”
According to the indictment, on June 3, 2018, Kennedy traveled from North Carolina to Virginia with the intent to engage in conduct that would violate a protective order in place since May 2018. The protective order prohibited all contact and communication (except for limited email contact) between the defendant and victim. Kennedy subsequently engaged in personal and physical contact and communication with the victim and, during the offense, used a dangerous weapon.
The investigation of the case was conducted by the Federal Bureau of Investigation, the Virginia State Police, the Pittsylvania County Sheriff’s Office, the Danville Police Department, the Randolph County, N.C. Sheriff’s Office and the North Carolina State Highway Patrol. Assistant United States Attorney Nancy S. Healey will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Nineteen People Charged in Takedown of Camden Drug Trafficking OrganizationRead the Press Release
10 Arrests Made in Coordinated Takedown by Federal and State Law Enforcement; Eight Defendants At Large, One in Custody on State Charges
CAMDEN, N.J. – Nineteen people were charged today for their roles in a conspiracy to sell significant amounts of illegal drugs in Camden, U.S. Attorney Craig Carpenito announced.
A complaint unsealed today charges the defendants (see chart below) with participating in a drug trafficking conspiracy that involved at least 280 grams of cocaine base, at least one kilogram of heroin, and other quantities of cocaine and fentanyl. The defendants arrested today are scheduled to have their initial appearances this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court. E defendants remain at large.
According to documents filed in this case:
An investigation led by the FBI used surveillance, confidential informants, consensual recordings, multiple controlled drug purchases, record checks, a GPS vehicle tracker, and several court-authorized wiretaps to uncover the operations of a drug trafficking organization that dealt crack cocaine, cocaine, heroin and fentanyl in and around the City of Camden. The organization’s activities were concentrated on the 400-500 blocks of Pine Street, where members distributed drugs to customers who approached on foot and in vehicles. The organization also supplied drugs to customers and other distributors elsewhere.
Members of the organization previously had conducted drug trafficking activities in and around the 1900 block of Filmore Street. After a fatal, drug-related shooting in that area in April 2017, local law enforcement increased their presence in the area and the organization ultimately shifted its activities to Pine Street.
The investigation has revealed that from November 2016 to November 2018, the organization’s members worked together in a multi-layered organizational structure to supply drugs. The main role of Ronnie Lopez – one of the alleged leaders of the organization – was to obtain bulk quantities of illegal drugs for sale to customers. The organization also had distributors and packagers, such as Carlos Perez and Nelson Salcedo, whose main roles were to obtain drugs from Lopez and others and to prepare and package the drugs for distribution downstream. The organization used “runners,” or managers, like Juan Figueroa and Paul Salcedo. These individuals obtained drugs from higher-level distributors and packagers within the organization and then provided those drugs downstream to shift managers like Jose Diaz and Christopher Vazquez. “Runners” also collected drug proceeds from lower-level shift managers and provided that money to higher-level members of the organization, such as Lopez. Shift managers, in turn, supervised the organization’s set workers, including Jose Agron, Elisa Rivera, Jasmin Velez, Dwight Williams, Kaliel Johnson, William Carrillo, Meylin Troncoso, Waldemar Garcia, Naeem Sadler, and Jameel Byng. These set workers sold drugs directly to customers and passed the proceeds up the organizational hierarchy. David Velez and Ramon Velez sold drugs supplied by the organization near their residences.
The drug trafficking organization is also believed to have used violence in the course of its operations. Multiple communications intercepted by wiretaps reflected that members of the organization owned guns and were prepared to use them. Juan Figueroa currently is facing several charges in Camden County Superior Court regarding the Aug. 7, 2018, shooting of two law enforcement officers, who were in an unmarked car and wearing plain clothes after having conducted surveillance earlier in the day on members of the organization. Also, some of the heroin that was purchased from the organization bore the same stamp as drugs found at the sites of drug overdoses in Camden, including two fatal overdoses.
The drug trafficking conspiracy count carries a mandatory penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine.
U.S. Attorney Craig Carpenito credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief William P. Monaghan; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to the charges.
He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the complaints and the charges against Figueroa in state court are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Defendant
Age
Residence
Nelson Salcedo
48
Camden
Ronnie Lopez
40
Pennsauken, New Jersey
Paul Salcedo
28
Camden
Carlos Perez
45
Collingswood, New Jersey
**Juan Figueroa
21
Camden
Jose Diaz
26
Camden
*Christopher Vazquez
28
Camden
*Ramon Velez
43
Camden
*David Velez
30
Camden
*Waldemar Garcia
33
Camden
Naeem Sadler
18
Camden
*Kaliel Johnson
26
Camden
Jasmin Velez
25
Camden
*Elisa Rivera
28
Camden
*Meylin Troncoso
31
Camden
Dwight Williams
27
Mount Holly, New Jersey
William Carrillo
44
Camden
*Jose Agron
25
Camden
Jameel Byng
25
Camden
*denotes at large
**denotes in state custody
New York Woman Who Embezzled $1.1 Million from Darien Auto Dealership Sentenced to 30 Months in PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that VANESSA VENCE-SMALL, 50, of New Windsor, New York, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 30 months of imprisonment, followed by three years of supervised release, for embezzling more than $1.1 million from a Darien auto dealership.
According to court documents and statements made in court, Vence-Small was the controller of Felix F. Callari, Inc., doing business as Continental BMW of Darien, an automobile dealership. From October 2014 to June 2017, Vence-Small made 65 unauthorized electronic fund transfers, totaling $904,659.29, from the dealership’s bank account to her personal American Express account. She also issued and signed 28 checks drawn on the dealership’s bank account, in the total amount of $207,777.78, to pay various third parties, including credit card companies, contractors who performed work at her residence, and a different dealership from which she purchased a car. She also incurred on company accounts an additional $31,452.08 in unauthorized credit card charges and reimbursements.
The investigation revealed Vence-Small’s personal expenses included first-class air travel and vacations to Australia, Hawaii, Mexico and Jamaica; payments to contractors to remodel and landscape her home, and the purchase of a $50,000 Ford Mustang.
Judge Meyer ordered Vence-Small to pay full restitution. She has made approximately $200,000 in restitution payments to date.
On February 22, 2018, Vence-Small pleaded guilty to one count of wire fraud.
Vence-Small, who is released on a $100,000 bond, was ordered to report to prison on February 4, 2019.
This matter was investigated by the U.S. Secret Service, the Darien Police Department and the Connecticut Financial Crimes Task Force. This case was prosecuted by Assistant U.S. Attorney Hal Chen.
New York Man Sentenced to 44 months for Crack Cocaine TraffickingRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Cuwan Merritt, 30, of Brooklyn, New York, was sentenced today by U.S. District Judge D. Brock Hornby to 44 months in prison for crack cocaine trafficking. Merritt was convicted following a two-day jury trial in July 2018.
On May 12, 2017, Merritt and Michael Artis travelled from Boston intending to sell crack in Lewiston. Law enforcement agents intercepted the vehicle in which they were traveling when they reached Auburn. A police dog alerted to the presence of narcotics on both men. Agents seized 57 pre-packaged .5g bags of crack from Artis and later seized crack that Merritt had secreted in his body.
Artis pled guilty to the same charge on June 28, 2018 and awaits sentencing.
The investigation was conducted by the U.S Drug Enforcement Administration in conjunction with the Maine Drug Enforcement Agency, the Auburn and Lewiston Police Departments and the Maine State Police.
New Bedford Fishing Boat Captain Sentenced for Interfering with Coast Guard InspectionRead the Press Release
BOSTON – The former captain of a New Bedford fishing boat owned by Carlos Rafael, a/k/a “The Codfather,” was sentenced today in federal court in Boston for interfering with a U.S Coast Guard (USCG) inspection of a fishing boat off the Massachusetts coast.
Thomas D. Simpson, 57, of South Portland, Maine, was sentenced by U.S. District Court Judge Indira Talwani to two years of probation, with the first four months to be served in home confinement with electronic monitoring, and ordered to pay a $15,000 fine. In August 2018, Simpson pleaded guilty to one count of destruction or removal of property subject to seizure and inspection.
“Mr. Simpson’s conduct was careless and dangerous. When he ordered the ship’s nets cut loose, rather than simply reeled in, the steel cables securing the net swung violently across the boat, endangering not only the Coast Guard boarding team but Simpson’s own crew,” said U.S. Attorney Andrew E. Lelling. “My office is committed to prosecuting those who impede federal inspections, especially when they jeopardize the safety of law enforcement officers and bystanders.”
“As a federal law enforcement agency, the Coast Guard boards fishing vessels to ensure the safety of the crew and protect our nation's natural resources,” said Rear Adm. Andrew Tiongson, Commander of the First Coast Guard District. “When Mr. Simpson intentionally jettisoned his net, he interfered with our ability to do that, and endangered everyone on board, including his own crew.”
“Vessel boardings by law enforcement personnel to determine compliance with fishery regulations help support the continued sustainability of the nation’s fisheries,” said James Landon, Director of NOAA’s Office of Law Enforcement. “When fishermen attempt to destroy evidence to avoid detection of illegal fishing, they not only undermine the enforcement management measures designed to ensure that the fishery remains productive, but they also jeopardize the safety of those who enforce those rules. This investigation is a great example of our marine law enforcement agencies working together to uphold federal marine resource laws and to bring to justice those who believe they are above them.”
Simpson was the captain of the fishing vessel Bulldog, a New Bedford based commercial fishing vessel and one of several fishing vessels owned by Carlos Rafael. On Sept. 25, 2017, Rafael, often referred to as “The Codfather,” was sentenced in federal court in Boston to 46 months in federal prison on a variety of charges related to the operation of his commercial fishing business.
On May 31, 2014, the Bulldog was engaged in commercial fishing off the cost of Massachusetts when the U.S. Coast Guard (USCG) boarded the vessel to perform a routine inspection of the Bulldog and its fishing equipment. At the time of the boarding, the Bulldog’s net was deployed in the water and the crew was actively fishing. The USCG Boarding Officer encountered Simpson in the Bulldog’s wheelhouse and instructed Simpson to haul in the fishing net for inspection. The fishing net is controlled from the wheelhouse by an electric winch, which Simpson activated, but instead of hauling the fishing net onto the vessel, he let out more of the cable which attaches the net to the vessel. When the USCG Boarding Officer realized that Simpson was letting the net out, he instructed Simpson to stop and to haul the net in. Simpson ignored the order and continued to let out cable until the net became detached from the Bulldog and sank.
The USCG and the National Oceanic and Atmospheric Administration (NOAA) hired a salvage company, at a cost of approximately $15,000, to retrieve the net from the ocean floor. An inspection of the net revealed that it had three distinct and separate layers of netting in violation of commercial fishing regulations. When two or more fishing nets are placed on top of each other, the size of the openings are reduced. The reduced size net openings hinder younger, smaller fish from being able to escape the net. The prohibition on double or triple lining fishing nets is intended to maintain the size and viability of the fishing stock and reduce over fishing. The use of illegal nets may result in fines and forfeiture of fishing equipment.
U.S. Attorney Lelling; Rear Adm. Tiongson; James M. Noble, Acting Special Agent in Charge of the U.S Coast Guard Investigative Services Northeast Region; and NOAA Director James Landon made the announcement today. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.
Navajo Man from Shiprock Facing Aggravated Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Wilfred Garcia, 53, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., appeared in federal court today in Albuquerque, N.M., on a criminal complaint charging him with aggravated sexual abuse. Trial has yet to be scheduled.
Agents from the Navajo Nation Division of Public Safety arrested Garcia in Shiprock on November 22, 2018. According to the criminal complaint, Garcia pulled up to the victim while driving his truck. He got out, put his arms around the victim, and held a hard object to her back while telling her, “Don’t move.” Garcia then forcibly placed the victim in his truck and drove to a dirt road where he sexually assaulted her. The victim eventually got away from Garcia, flagged down a motorist for help, and reported the incident to police, who arrested Garcia later that day.
The maximum penalty upon conviction for aggravated sexual abuse charge is life in federal prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Farmington office of the FBI and the Navajo Nation Division of Public Safety. Assistant U.S. Assistant U.S. Attorney Frederick T. Mendenhall, III, is prosecuting the case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's ongoing efforts to increase engagement, coordination and action on public safety in tribal communities.