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Tuesday 27 November 2018
Defendant Sentenced for ATM Skimming FraudRead the Press Release
ATLANTA - Gogut Serban was sentenced to federal prison for access device fraud and aggravated identity theft for stealing bank debit card numbers and personal identification numbers (PINs) of individuals in Georgia by using automated teller machines (ATMs) skimming devices.
“Identity theft is a continuing problem that damages the credit of too many unsuspecting Georgians,” said U.S. Attorney Byung J. “BJay” Pak. “Citizens are encouraged to visually and physically inspect ATMs for any obvious signs of tampering prior to using their debit or credit cards.”
“This investigation and subsequent conviction demonstrates the commitment the Secret Service and our law enforcement partners have in aggressively pursuing those who commit access device fraud and identity theft,” said Kimberly A. Cheatle, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “This sentencing is another great example of the law enforcement community working together to combat crime.”
“The Lawrenceville Police Department is extremely grateful for the assistance provided by our partners in the U.S. Secret Service during this seven-month investigation,” said Lawrenceville Police Chief Tim Wallis. “The continued cooperation of local and federal law enforcement agencies led to a successful conclusion of a complex case spread over several jurisdictions.”
According to U.S. Attorney Pak, the charges and other information presented in court: Serban and his co-conspirators used illegal skimming devices to steal over $80,000 from credit union customers by installing the devices at Associated Credit Union automated teller machines in Atlanta, Lawrenceville, Norcross and other locations in Georgia. When a customer used an ATM with a skimming device installed, the device electronically recorded the customer’s debit card number and a small camera in the device video recorded the ATM keyboard as the customer entered their PIN. Serban and others then encoded new cards with the stolen account information and used the altered cards at ATMs, draining money from over 70 victims’ bank accounts. The other co-conspirators in the scheme were charged in South Carolina.
Gogut Serban, 35, of Romania, was sentenced to two years, two months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $84,760.50. Serban was convicted of access device fraud and aggravated identity theft on August 28, 2018, after he pleaded guilty.
This case was investigated by the U.S. Secret Service and the Lawrenceville Police Department.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
Convictions Upheld for Former Deputy Executive Director of Port Authority and Deputy Chief of Staff for Then-Gov. ChristieRead the Press Release
NEWARK, N.J. – The U.S. Court of Appeals for the Third Circuit today affirmed five of seven convictions each for a former top official of the Port Authority of New York and New Jersey (PA) and a former member of then-Gov. Christopher J. Christie’s senior staff for their roles in a scheme to punish the mayor of Fort Lee, New Jersey, by misusing PA resources to cause traffic problems in the borough, Mark Coyne, Attorney for the United States, announced.
William E. Baroni Jr., 46, and Bridget Anne Kelly, 46 — formerly the deputy executive director of the Port Authority and the deputy chief of staff for legislative and intergovernmental affairs in the Governor’s office, respectively — were each convicted on Nov. 4, 2016, of conspiring to misuse, and actually misusing, property of an organization receiving federal benefits; conspiring to commit, and actually committing, wire fraud; conspiring to injure and oppress certain individuals’ civil rights, and acting under color of law to deprive certain individuals of their civil rights. Baroni was sentenced to 24 months in prison and Kelly was sentenced to 18 months in prison.
In a unanimous, precedential opinion by Senior U.S. Circuit Judge Anthony J. Scirica Sr., the court upheld all but the civil rights counts of conviction and remanded the case to U.S. District Judge Susan D. Wigenton for resentencing.
All of the charges relate to the defendants’ scheme to manufacture traffic problems in Fort Lee by, without public warning, reducing from three to one the number of local access lanes to the upper level of the George Washington Bridge and the toll booths servicing those lanes. This was done to punish Mayor Mark Sokolich for not endorsing then-Gov. Christie’s re-election bid. The evidence at trial showed that Fort Lee suffered hours of gridlock on four successive days during the first week of the school year because of the scheme.
The Court of Appeals found sufficient evidence of wire fraud and wire fraud conspiracy, rejecting the defendants’ argument that Baroni had unilateral authority to control traffic patterns at “the world’s busiest motor vehicle bridge.” The court found that he lacked such authority and that he and Kelly had deprived the PA of property by devoting PA resources to a sham traffic study. The court said the United States “has an especially significant interest in protecting the Port Authority’s . . . operational integrity” against fraud.
The court concluded that the defendants intentionally misapplied PA property and conspired to do so. The court held that the applicable statue covers more than just bribery and theft, and that Baroni’s and Kelly’s “conduct in this case falls squarely within the statute’s purpose.
The court rejected the defendants’ argument that the United States was improperly using federal criminal statutes to police state and local officials in the conduct of their official duties. “Congress has a uniquely significant interest in safeguarding the Port Authority, an interstate agency created by its consent,” the court said. The court confirmed that the defendants’ motive in defrauding the Port Authority was “not a required element of any of the charged offenses.
The court also held, however, that the constitutional right of intrastate travel on public roadways was not sufficiently developed nationwide to warrant prosecution under the federal civil rights statutes. The court therefore reversed and vacated Baroni’s and Kelly’s convictions for criminal civil rights violations.
The government is represented in the appeals by Assistant U.S. Attorney and Special Counsel to the U.S. Attorney Bruce P. Keller of the U.S. Attorney’s Office in Newark. Assistant U.S. Attorneys Lee M. Cortes Jr., David W. Feder and Vikas Khanna represented the United States at trial. The case is being overseen by Attorney for the United States Mark Coyne, Chief of the Appeals Division, because of the recusals of U.S. Attorney Craig Carpenito and First Assistant U.S. Attorney Rachael Honig.
Convicted Felon Pleads Guilty to Possessing 11 Firearms and Dealing Crack Cocaine, Cocaine and HeroinRead the Press Release
NEWS RELEASE SUMMARY – November 27, 2018
SAN DIEGO – Convicted felon Dwight Wayne Jordan, aged 60, pleaded guilty today in federal court before U.S. Magistrate Judge Nita L. Stormes to a two Count Superseding Information charging him with knowingly and intentionally possessing with intent to distribute cocaine base (i.e., crack cocaine), cocaine and heroin along with illegally possessing eleven firearms that admittedly included semi-automatic weapons, shotguns, rifles and .357 Magnum revolvers.
Through his plea agreement, Jordan, a San Diego resident, admitted that, on September 8, 2018, he was the driver and sole occupant of a BMW X3 traveling on I-94 near Market Street in San Diego when a San Diego Police Department (SDPD) officer attempted to conduct a traffic stop. Although Jordan initially yielded, as the officer exited his vehicle, Jordan accelerated and attempted to flee, running two red lights. While attempting to evade the officer, Jordan threw a bag from the window that was subsequently recovered by SDPD. Jordan admitted in his plea agreement that the bag contained approximately two kilograms of cocaine. After the vehicle was stopped and Jordan arrested, officers recovered more than $6,900 in cash that was admittedly the proceeds of narcotics trafficking.
On September 18, 2018, law enforcement also executed follow-up search warrants at two locations associated with Jordan in San Diego. Those searches yielded eleven firearms; $36,499 in cash that was also admittedly the proceeds of narcotics trafficking; and significant quantities of cocaine base, cocaine and heroin. Jordan admitted that he illegally possessed the eleven firearms identified in the plea agreement as well as the drugs, which he intended to further distribute. Due to his prior drug felony conviction, Jordan is prohibited from possessing a firearm or ammunition under federal law. The plea arrangement also includes forfeiture of each of the eleven firearms and associated ammunition; $43,440 in United States currency; and a 2013 Porsche Cayenne in which a portion of the narcotics proceeds were located.
The federal narcotics charge to which Jordan has pleaded guilty carries a mandatory minimum ten year sentence and a maximum life sentence and the firearms-related charge carries a maximum 10 year sentence. Jordan is scheduled to be sentenced on February 15, 2019 before U.S. District Judge Gonzalo P. Curiel in San Diego.
This case is the result of the ongoing efforts of the Organized Crime Drug Enforcement Task Force (OCEDTF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCEDTF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
This matter is being prosecuted by Assistant U. S. Attorney Larry Casper.
DEFENDANTS Criminal Case Number 18-cr-4496
Dwight Wayne Jordan Age: 60 San Diego, California
SUMMARY OF CHARGES TO WHICH GUILTY PLEAS ENTERED
Count 1:
Possession With the Intent to Distribute Cocaine Base, Cocaine and Heroin, 21 U.S.C. 841(a)
Maximum penalty: Life in prison, and a mandatory minimum 10 years; $10,000,000 fine; and at least five years’ supervised release up to life
Count 2:
Felon in Possession of a firearm, 18 U.S.C. 922(g)(1)
Maximum penalty: 10 years custody $250,000 fine and 3 years supervised release
INVESTIGATING AGENCIES
Drug Enforcement Administration
Bureau of Alcohol Tobacco Firearms and Explosives
San Diego Police Department
Columbia Man Pleads Guilty to Illegal Firearm Following Street ShootingRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man who was arrested following a street shootout in a residential neighborhood pleaded guilty in federal court today to illegally possessing a firearm.
Richard Sterling Jones, 25, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to being a drug user in possession of a firearm.
According to today’s plea agreement, Columbia police officers were dispatched to the 4600 block of Rice Road at approximately 10:19 p.m. on June 24, 2018, in response to shots fired. When the officers arrived, they located numerous 9mm and .223-caliber spent shell casings along Rice Road. Officers spoke to numerous residents along Rice Road, who reported their residences and vehicles had been struck by gunfire.
Witnesses told police officers they saw a silver Pontiac Grand Prix, which they believed was involved in the shooting, quickly leave the area. Officers located Jones, who was sitting in a silver Grand Prix, shortly afterward, and he was detained. Officers searched his vehicle and found a bag of marijuana and drug paraphernalia.
Jones admitted that he fired several rounds from his AR-15 style rifle into the air in front of a residence on Rice Road. Jones drove to another residence and hid the firearm under a mattress in one of the bedrooms. Jones also admitted to using and selling marijuana. Officers executed a search warrant at the residence and found a loaded SOTA Arms multi-caliber rifle where Jones had hidden it.
Under federal statutes, Jones is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Aaron M. Jolly. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone.
Colorado Springs Man Sentenced for Wire Fraud and SecuritiesRead the Press Release
DENVER – Daniel Coddington, age 64, of Colorado Springs, Colorado, was sentenced today by U.S. District Court Judge R. Brooke Jackson to serve 120 months (10 years) in federal prison for wire and securities fraud, U.S. Attorney Jason R. Dunn and FBI Denver Division Special Agent in Charge Dean Phillips announced. After serving his prison sentence, Coddington was ordered to spend 3 years on supervised release. He was also ordered to pay $18,021,669.74 in restitution. The defendant appeared at the hearing free on bond, and was ordered to report to a facility designated by the Bureau of Prisons. A co-defendant, Jesse W. Erwin, Jr., was previously sentenced for wire and securities fraud to serve 58 months in federal prison, followed by 3 years on supervised release.
Coddington and Erwin were indicted by a federal grand jury in Denver on October 5, 2015. Erwin pled guilty on April 25, 2017, and was sentenced on October 12, 2018. Coddington was found guilty following a jury trial on July 26, 2018. He was sentenced today, November 27, 2018.
According to court documents and evidence presented during the Coddington trial, from at least early 2010 through late 2011, Coddington held himself out to investors and intermediaries to be the principal and owner of a company called Golden Summit Investors Group Ltd. (“Golden Summit”). He operated Golden Summit from Colorado Springs, Colorado. From at least early 2010 through at least late 2011, he described to investors and intermediaries a program through which investor money would be used to purchase collateralized mortgage obligations or CMOs -- an investment consisting of a pool of mortgages organized by maturity and risk. Coddington told investors that the CMOs had face values exponentially larger than their purchase price and market value. According to the defendant, the CMOs would then be “hypothecated” to obtain loans in the amount of a percentage of the face value of the CMO. The amount of these loans would still be exponentially larger than the purchase price and market value of the CMOs (known as the “CMO Trade Program”).
Coddington told most of the investors that, from the proceeds of the loans, the investors would receive pre-trade distributions and that the remainder of the loan proceeds would be placed into an investment program that would yield high returns. From at least 2010 through late 2011, the defendant described to investors and intermediaries that investors who owned CMOs could transfer their CMOs to Golden Summit for the purpose of participating in the CMO Trade Program. In approximately April 2011, the defendant told an investor, who ultimately invested $9,000,000 dollars with Golden Summit that $60,000,000 of the loan proceeds obtained from “monetizing” the CMOs purchased with the investor’s money would be provided to the investor in the form of two non-recourse loans in the amount of $30,000,000 each (known as the “CMO Loan Program”).
Coddington falsely represented to investors and intermediaries that he had the experience and contacts necessary to successfully conduct and complete the CMO Trade Program and the CMO Loan Program. From at least 2010 through at least mid-2011, Coddington falsely told investors and intermediaries that all of the money provided by investors would be used to purchase CMOs that would be used in the CMO Trade Program and the CMO Loan Program. He also falsely told investors and intermediaries that any fees, commissions, compensation, and payments to Golden Summit and its affiliates would be taken only from the profits of the CMO Trade Program and CMO Loan Program and not from investor money placed into the CMO Trade Program and CMO Loan Program.
From at least November of 2010 through at least June of 2011, the defendant diverted substantial amounts of investor money placed into the CMO Trade Program and the CMO Loan Program for his own personal use and for purposes other than for purchasing CMOs. Further, the defendant did not successfully “hypothecate” or “monetize” any CMOs to obtain loans for either the CMO Trade Program or the CMO Loan Program.
From at least October 2010 through April of 2011, Coddington obtained from investors more than $17,000,000 for the CMO Trade Program and the CMO Loan Program. Despite his failure to successfully complete either the CMO Trade Program or the CMO Loan Program, the defendant did not return most of the investors’ money or any CMO purchased with the investors’ money.
From at least early 2010 through late 2011, the defendant also received CMOs from several investors for purposes of participating in the CMO Trade Program. Coddington kept most of the monthly interest that was paid out on those CMOs while the CMOs were in his and Golden Summit’s possession. For purposes of executing the Scheme, the defendant used, and caused to be used, a number of interstate wires, including emails and money transfers.
“Thanks to the hard work of the FBI, and with the cooperation of crime victims, my office was able to prosecute Coddington for devastating people’s lives by stealing their life savings,” said U.S. Attorney Jason R. Dunn. “Coddington has 10 years to contemplate his crime and think of the people he hurt.”
“The FBI is committed to investigating complex white-collar fraud schemes, and we will continue to pursue those who misuse their position of trust to exploit innocent investors.” said FBI Denver Special Agent in Charge Dean Phillips. “Today’s sentence of Daniel Coddington should send a clear message that exploitation of investors for personal gain will be vigorously investigated and prosecuted.”
This case was investigated by the Federal Bureau of Investigation (FBI).
The defendant was prosecuted by Assistant U.S. Attorneys Pegeen Rhyne and Anna Edgar.
Career Robber Sentenced for Robbery of Ice Cream Store in Central West EndRead the Press Release
St. Louis, MO – Rodney Gardner, 52, St. Louis, was sentenced to 84 months in prison for robbing Jeni’s Splendid Ice Creams. He appeared in federal court this morning before U.S. District Judge E. Richard Webber.
According to court documents, on March 6, 2018, Gardner entered the Central West End ice cream shop and posed as a customer before he demanded that employees hand over money from the cash register. Gardner punched one employee multiple times in the face, breaking her nose, grabbed the cash register, and ran from the store. Police officers arrested him after a brief foot chase.
Gardner pled guilty on June 12, 2018 to one felony count of Hobbs Act robbery.
This case was investigated by the St. Louis Metropolitan Police Department. Assistant United States Attorney Jennifer J. Roy is handling the case for the U.S. Attorney's Office.
California Woman Pleads Guilty to Federal Methamphetamine Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Gwendolyn Alcazar, 36, of Pasadena, Calif., pled guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge.
The Drug Enforcement Administration arrested Alcazar on Feb. 8, 2018, on an indictment charging her with possession of methamphetamine with intent to distribute. According to the indictment, Alcazar committed the crime on July 11, 2017, in Bernalillo County, N.M.
During today’s proceedings, Alcazar admitted that she received a one-way train ticket from Los Angeles to Atlanta. She boarded the train with approximately 900.4 grams (1.99 pounds) of methamphetamine concealed in her luggage. Alcazar intended to transport the methamphetamine to Atlanta and expected to receive payment at the end of her trip. However, law enforcement officers confronted her in Albuquerque. Alcazar gave them a false name and tried to abandon her luggage and flee before the officers arrested her.
At sentencing, Alcazar faces a mandatory minimum penalty of ten years and a maximum of life in federal prison. She remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorneys Niki Tapia-Brito and Eva Fontanez.
California Man Sentenced to More Than Five Years in Prison for His Role in Multimillion-Dollar Fraud on Film InvestorsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that STEVEN BROWN was sentenced today to 63 months in prison for defrauding victims of over $12.5 million by participating in a fraudulent scheme to solicit investments in feature-length films and documentaries based on misrepresentations and fraudulent documents. BROWN previously pled guilty before U.S. Magistrate Judge Henry B. Pitman, and was sentenced today by U.S. District Judge Kimba M. Wood.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Steven Brown perpetrated a multimillion-dollar fraud by convincing victims to invest in Hollywood films and documentaries with false promises and fraudulent documents. He continued the scheme even after he was arrested, luring another investor with the same lies. Now Brown has been sentenced for his crimes.”
According to allegations in an Indictment and other documents filed in federal court, as well as statements made in public court proceedings:
From at least 2009 through 2017, STEVEN BROWN participated in a scheme in which BROWN, along with co-conspirators, solicited investments in the marketing and production of feature-length films and documentaries from investors, including by furnishing them with fraudulent documents and by promising guaranteed returns, which never materialized.
In order to solicit these investments, BROWN and others made material misrepresentations about, among other things, their own investments in the films for which they were soliciting money, as well as investments that they claimed to have received from other investors. To support their claims, BROWN and his co-conspirators at times sent the victims falsified financial records that reflected investments in the films that had never actually been made. BROWN and his co-conspirators also told certain victims that their investments would be guaranteed by a fictitious entity, and provided falsified documents in support of these purported guarantees. On one occasion, Brown sent an email to a victim attaching what purported to be a current bank statement for an account held by the fictitious entity, as well as an email from an executive at the fictitious entity guaranteeing the victim’s investment. In fact, neither the account nor the executive actually existed.
BROWN continued to solicit investments in film projects based on misrepresentations even after being arrested on the criminal charges brought in this case. In 2017, BROWN solicited an investment from a victim of the scheme in a film production and distribution company with which BROWN was purportedly involved by promising the victim a 50 percent return on the investment. The victim’s funds were never returned and were, in part, used to pay expenses unrelated to any film projects.
In total, BROWN and his co-conspirators solicited millions of dollars from their victims, allegedly to be used for either marketing or production costs associated with the various films. In reality, however, the money that was received from these investors was primarily used to fund other projects, to pay back previously defrauded investors, and to pay the personal expenses of BROWN and his co-conspirators, including, among other things, the purchase of a condominium for BROWN.
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In addition to the prison sentence, BROWN, 48, of Los Angeles, California, was sentenced to three years of supervised release and ordered to forfeit his ownership interest in a California property and $673,028.93 in criminal proceeds. Judge Wood will impose restitution at a later date.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Katherine Reilly, Noah Solowiejczyk, and Ryan Finkel are in charge of the prosecution.
Bronx Man Sentenced to 20 Years in Prison for Possession and Distribution of Child Pornography and His Attempt to Entice A MinorRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), announced that MARK IRIZARRY was sentenced yesterday in Manhattan federal court to 20 years in prison for attempted enticement of a minor to engage in sexual activity and possession and distribution of child pornography. IRIZARRY pled guilty to these charges on June 15, 2018. United States District Court Judge Valerie E. Caproni imposed yesterday’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Mark Irizarry admitted to the unconscionable crime of attempting to entice a nine-year-old child to have sex with him. He will now serve 20 years in prison, where he will be unable to harm children.”
FBI Assistant Director William F. Sweeney Jr. said: “Child predators like Mark Irizarry are among our society’s most heinous offenders, and the conduct in which he attempted to engage almost defies comprehension. Irizzary’s sentence insures he will be locked away in a place where he will be unable to harm children. The FBI, though our Child Exploitation and Human Trafficking Task Force, will continue to work tirelessly to protect our nation’s children.”
According to the Indictment and other filings in Manhattan federal court:
Between November 2017 and December 2017, IRIZARRY used an online social media application to send undercover law enforcement officers more than 80 unique image and video files known to contain child pornography. The child pornography sent by IRIZARRY included depictions of prepubescent children, including infants and toddlers, engaged in sexual activity with other children or adults. During these conversations with one of the undercover officers, IRIZARRY stated that he wanted to have sex with the undercover officer’s nine-year-old child and that he wanted to film the act on his cellphone. IRIZARRY and the undercover officer planned a meeting time and location to carry out IRIZARRY’s plan; IRIZARRY was arrested on the date and at the location that he said he would meet the undercover law officer. When he was arrested, IRIZARRY possessed several bags of candy and condoms. After his arrest, law enforcement officers recovered approximately 18,000 uniquely named image files and 2,700 uniquely named video files, mostly consistent with child pornography, on remote computing platform accounts that IRIZARRY created.
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In addition to his prison term, IRIZARRY, 28, of the Bronx, New York, was sentenced to 10 years of supervised release and restitution in amount to be determined by the Court at a later date.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation, and thanked the New York City Police Department for their assistance.
This case is being prosecuted by the Office’s General Crimes Unit. Assistant U.S. Attorney Nicholas W. Chiuchiolo is in charge of the prosecution.
Brewer Man Pleads Guilty to Charge of Lying to Federal Firearms DealerRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Floyd Chase, 48, of Brewer, Maine, pled guilty in U.S. District Court to conspiracy to make false statements to a federal firearms licensee.
According to court records, in February 2018, the Brewer Police Department seized a .380 caliber handgun while executing a narcotics trafficking search warrant in Brewer. A trace of the firearm revealed that it had been purchased about ten days earlier at an area firearms dealer. Further investigation revealed that the defendant, and others came up with a plan for one of them to falsely claim that she was buying the gun for herself, when in fact, the actual buyer was another individual. The defendant accompanied the two others to the firearms dealer and then directed the woman to purchase the firearm.
The defendant faces up to five years in prison, a $250,000 fine, and up to three years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Brewer Police Department, with assistance provided by the Penobscot County Sheriff’s Office.
Boston-Area Investment Adviser Sentenced for FraudRead the Press Release
BOSTON – A Boston-area investment adviser was sentenced today in federal court in Boston for using his clients’ funds to make his own investments and to pay personal expenses.
James Polese, 52, of Wenham, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to five years in prison, three years of supervised release, and ordered to pay a fine of $30,000 and restititution in the amount of $462,000. In April 2018, Polese pleaded guilty to one count of conspiracy and investment adviser fraud, eight counts of bank fraud, and one count of aggravated identity theft. In June 2018, co-conspirator Cornelius Peterson, 29, of Newton, was sentenced to 20 months in prison, two years of supervised release and ordered to pay restitution in the amount of $462,000.
From approximately 2014 to June 2017, Polese and Peterson misappropriated approximately half a million dollars from their clients by transferring funds out of their clients’ accounts without their knowledge or consent. Specifically, on Aug. 20, 2014, Polese and Peterson used $100,000 from a client’s account to invest in a wind farm project despite the fact that it was not an investment opportunity authorized by their company. On May 15, 2015, Polese and Peterson used $400,000 from another client’s account to back a letter of credit in support of the wind farm project. On multiple occasions in 2017, Polese transferred funds from a client’s account to pay personal expenses, including college tuition payments and credit card bills. Polese and Peterson were terminated from the company in June 2017.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Securities & Exchange Commission also provided valuable assistance with the investigation. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities and Financial Fraud Unit prosecuted the case.
Bhutan Citizen Pleads Guilty to Receiving Sexually Explicit Images of a Minor Under 12Read the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County, Pennsylvania, has pleaded guilty in federal court to receipt of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Mukesh Khawas, 31, pleaded guilty to one count before United States District Judge Cathy Bissoon. In connection with the guilty plea, the court was advised that from June 14, 2016, to June 15, 2016, Khawas engaged in online chat conversations with a minor female via the social networking/dating application Skout.com, and during the conversation requested and received sexually explicit images, knowing the minor victim had not yet attained 12 years of age. In addition to the guilty plea, Khawas acknowledged his responsibility for the production and possession of material depicting the sexual exploitation of a minor.
Judge Bissoon scheduled sentencing for March 19, 2019. The law provides for a maximum sentence of 20 years’ imprisonment, a fine of $250,000.00, and a term of up to a lifetime of supervised release. 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. Khawas, who is a citizen of Bhutan but a lawful permanent resident of the United States, has also agreed to be deported to Bhutan upon the conclusion of his sentence without the ability to appeal or reenter the United States. Khawas remains detained pending the sentencing hearing.
Assistant United States Attorneys Christy C. Wiegand is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Allegheny County District Attorney’s Office, and the West Virginia State Police conducted the investigation leading to the prosecution of Khawas.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Albuquerque Man Sentenced to Five Years in Prison for Possessing Firearm while Trafficking FentanylRead the Press Release
ALBUQUERQUE – Jeremy Brown, 27, of Albuquerque, N.M., was sentenced today in federal court to 60 months in prison for possessing a firearm while trafficking fentanyl. Brown will be on supervised release for three years after completing his prison sentence.
On July 16, 2018, Brown pled guilty to possessing a firearm in furtherance of a drug trafficking crime. In entering his guilty plea, Brown admitted that on May 1, 2017, he arranged a meeting to sell fentanyl pills to a customer. DEA agents arrested Brown during this meeting and searched his truck, where they found a canister of fentanyl pills and a .45 caliber pistol in the center console. Brown admitted that he intended to sell these pills and possessed the pistol to protect himself while selling drugs.
Brown’s co-defendant, Crystal Campos, 34, also of Albuquerque, pled guilty on Oct. 4, 2018, to charges of conspiracy and distribution of a controlled substance.
This case was investigated by the Albuquerque office of the DEA and prosecuted by Assistant U.S. Attorney Peter J. Eicker as part of the Department of Justice’s commitment, in partnership with other law enforcement agencies, to combat the illegal manufacturing and distribution of methamphetamine, heroin and prescription opioids and to establish new programs to provide services to victims of the opioid crisis.
Alaska Woman Pleads Guilty to Defrauding Anchorage Medical PracticeRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that an Alaska woman pleaded guilty in federal court for devising multiple schemes to defraud an Anchorage medical practice through various means.
Jill Diane Applebury, aka: “Jill Wetzsteon,” 53, d/b/a Applebury Accounting Services, of Anchorage, pleaded guilty today before Chief U.S. District Judge Timothy M. Burgess to four counts of bank fraud, one count of wire fraud, and one count of fraudulent transactions with an access device. The sentencing hearing has been scheduled for March 29, 2019, at 9:00 a.m.
According to court documents, from the mid-1990’s until March 2013, Jill Applebury was an independent contractor who performed bookkeeping services for an Anchorage medical practice, which was owned and operated by an Anchorage physician. From at least 2004 until March 22, 2013, Jill Applebury defrauded the Anchorage medical practice in several ways.
According to admissions made in connection with her guilty plea, one such scheme stems from May 2008 to January 2010, when Jill Applebury used the medical practice’s funds to pay her Federal Income Tax Withholding without authority. Specifically, Jill Applebury executed unauthorized and fraudulent transactions from the medical practice’s business bank account to the IRS, thereby having the medical practice pay her IRS individual income tax account.
Another scheme involved the medical practice’s profit-sharing plan. Employees of the medical practice were eligible to participate in its profit-sharing plan, which was overseen by a third-party administrator. Independent contractors did not qualify for the plan; however, Jill Applebury falsely represented to the third-party administrator that she had become a full-time employee of the medical practice in 2009, making her eligible to participate in the profit-sharing plan beginning in 2010. In all, Jill Applebury fraudulently caused the physician to unknowingly allocate $62,722.90 to her in unauthorized profit-sharing plan contributions for the years 2010 and 2011.
In April and May 2011, Jill Applebury devised a scheme to defraud the medical practice by fraudulently transferring funds from the medical practice’s business bank account to pay for charges on her personal credit card, which she shared with her husband Darin Applebury, including charges for travel and dining. Additionally, between 2004 and March 22, 2013, Jill and Darin Applebury used the medical practice’s business credit card to pay for items for their own personal and/or business benefit. The unauthorized charges included cell phone service for the Appleburys and members of their family, internet service for their residence, business licenses for businesses owned by Jill and Darin Applebury, automobile insurance for their personal vehicles, and other personal items.
The investigation also revealed that in October 2012, Jill Applebury fraudulently used the medical practice’s business credit card to purchase nearly $3,000 of medical products for her husband’s business, Rapid Recovery Medical Service, Inc. The fraudulent credit card purchases were made using the physician’s name and address without the knowledge and permission of the Anchorage physician.
Jill Applebury faces a maximum sentence of up to 30 years in prison, as well as a period of supervised release, restitution, and monetary penalties. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any of the defendant.
The Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD) conducted the investigation leading to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney Retta-Rae Randall.
Alabama Man Pretending to be College Softball Coach Pleads Guilty in South Florida to Producing Child PornographyRead the Press Release
On November 20, 2018, Jason Ford, a former teaching assistant and travel softball coach, pled guilty in South Florida to attempting to produce child pornography.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Miami, Florida Field Office, Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville, Florida Field Office, James E. Jewell, Special Agent in Charge of the FBI Mobile, Alabama Field Office, and Alphonso Norris, Special Agent in Charge of the FBI Columbia, South Carolina Field Office made the announcement.
Ford, 42, of Dothan, Alabama, is scheduled to be sentenced by U.S. District Judge Beth Bloom on February 1, 2019, in Fort Lauderdale, Florida (Case No. 18-cr-60117). He faces a mandatory minimum sentence of 15 years in prison.
According to the court docket, including the agreed upon factual proffer Ford was a teaching assistant and travel softball coach, working out of Dothan, Alabama. However, Ford falsely represented himself to be a University of North Florida and University of South Carolina softball coach, in order to have contact with female high school softball players. Ford engaged in a calculated scheme to gain the trust of minor females who aspired to earn college athletic scholarships. Ford engaged in inappropriate conversations with teen softball players in Florida, Alabama and Tennessee. Ultimately, Ford made contact online with an undercover agent he believed to be a 15-year-old female softball player. Ford was arrested after he sent the teen (who in fact was an undercover agent) currency for a sexually explicit video.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI Miami, Florida; Jacksonville, Florida; Mobile, Alabama; and Columbia, South Carolina Field Offices in this matter. She also thanked the Dothan Police Department for their assistance. The case is being prosecuted by Special Assistant U.S. Attorney M. Catherine Koontz.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Monday 26 November 2018
“Car Hopping” Lands Felon in Federal Prison for over Seven Years for Possessing a Stolen GunRead the Press Release
A convicted felon who went “car hopping” with others in Alburnett, Iowa, and possessed a stolen gun was sentenced today to more than seven years in federal prison.
Sejuan Walker, age 22, from Marion, Iowa, received the prison term after a July 25, 2018, guilty plea to being a felon in possession of a firearm.
Information from the sentencing hearing showed that on January 28, 2018, Walker and two others went “car hopping” in Alburnett, a town in rural Linn County, Iowa. Their “car hopping” involved going from parked car to parked car to see which cars were unlocked. After finding an unlocked car, the three searched the car to find any valuables. One of the three found a handgun in a pickup truck and stole it and a wallet from the truck. Walker later used a debit card from that wallet to make purchases at the Wal-Mart in Anamosa.
Law enforcement officers located Walker at an apartment building in Coralville, Iowa, on February 1, 2018. As officers were approaching him, Walker went into the apartment building and then out a back door. Officers later located the handgun stolen from Alburnett in a clothes dryer located in the common area of the apartment building. At his plea hearing, Walker admitted he possessed that handgun on February 1.
Walker was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Walker was sentenced to 87 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department of Justice announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Walker is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Linn County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-cr-55.
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Worcester Man Pleads Guilty to Fentanyl, Cocaine and Firearm ChargesRead the Press Release
BOSTON – A Worcester man pleaded guilty today in federal court in Worcester to drug and firearm charges.
Cleon Riley, 36, pleaded guilty to one count of being a felon in possession of firearms and ammunition, one count of distributing cocaine, and one count of possessing fentanyl with intent to distribute. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Feb. 26, 2019. Riley has been detained since his arrest in May 2018.
On multiple occasions in 2018, Riley sold cocaine to a confidential source in Worcester. On one occasion in February 2018, Riley sold powder cocaine, crack cocaine, and a .9mm Beretta handgun, which had previously been reported as stolen, to the same source.
Riley was arrested by local police in May 2018. At the time of his arrest, he was in possession of seven bags of fentanyl and 20 bags of cocaine. Law enforcement also located additional quantities of fentanyl and cocaine in a car used by Riley, as well as a large quantity of fentanyl, digital scales, cutting agents, and packaging materials in an apartment that Riley used.
The drug charges carry sentences of no greater than 30 years in prison, at least six years and up to a lifetime of supervised release, and a $2 million fine. The firearm charge provides for a sentence of no greater than 10 years in prison, three years of supervised release and a $250,000 fine. Riley will face enhanced penalties if he is found to be in violation of the Armed Career Criminal Act. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Lawrence J. Panetta, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Valuable assistance was provided by the Worcester County District Attorney’s Office and the Worcester Police Department. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office is prosecuting the case.
Wetzel County man sentenced in connection to a drug distribution operation in Wetzel and Tyler CountiesRead the Press Release
WHEELING, WEST VIRGINIA – Todd Jones, of New Martinsville, West Virginia, was sentenced today to eight months incarceration for his involvement in methamphetamine, cocaine, and heroin distribution that spanned multiple states, United States Attorney Bill Powell announced.
Jones, age 55, pled guilty to “Aiding and Abetting the Distribution of Methamphetamine” in August 2018. Jones admitted to selling methamphetamine in March 2017 in Wetzel County.
Assistant U.S. Attorneys Robert H. McWilliams, Jr., and Shawn M. Adkins prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol; Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
U.S. Attorney Mike Hurst issued the following statement in response to nooses and hate signs found this morning outside the Mississippi State Capitol:Read the Press Release
"With our law enforcement partners, we are actively looking into these acts of hate and intimidation. Let me be perfectly clear - there is absolutely no place in our state for these unacceptable symbols or tactics to intimidate others. If we find evidence beyond a reasonable doubt that a federal crime has occurred, these criminals will be swiftly prosecuted and held accountable. Let us all respond to these despicable acts by voting, working, raising our families, practicing our faith, and pursuing the American dream here in our great state without fear or trepidation and in harmony with our fellow citizens."
U.S. Attorney Liu Announces Initiative to Combat Elder Abuse and Financial ExploitationRead the Press Release
WASHINGTON – The U.S. Attorney’s Office for the District of Columbia is launching an Elder Abuse and Financial Exploitation Initiative to expand its response to criminal and civil violations targeting older adults, U.S. Attorney Jessie K. Liu announced today.
The establishment of this initiative will enable the U.S. Attorney’s Office to further develop and coordinate its prosecution of these cases and enhance its overall support of older victims. The team will consist of experienced prosecutors and victim advocates from across the Office, to include the Superior Court, Criminal, and Civil Divisions as well as the Victim Witness Assistance Unit. The work coordinated through this initiative will reach victims of both local and federal offenses in the District of Columbia and across the country who have been affected by elder abuse, neglect, and financial exploitation. This initiative is part of a larger effort by the Department of Justice to combat elder abuse and financial exploitation.
“We must do everything we can to protect our older citizens from those predators who target them for physical, emotional and financial harm,” said U.S. Attorney Liu. “This initiative sharpens our focus on this important mission. By bringing together all of those in our office who work on these issues in court and in the community, we hope to identify ways that we can better serve our vulnerable older adults and prevent them from becoming victims of crimes and abuse.”
The initiative will coordinate and combine the work that is already being done throughout the Office on behalf of older victims. Many components of the Office work on such matters, and each will designate a representative to support the initiative’s mission to develop uniform strategies and best practices, track data and cases, share resources, enhance support of older victims, and facilitate further outreach with community and agency partners.
Nationally, the 2017 Elder Abuse Prevention and Prosecution Act mandated that each U.S. Attorney designate an Elder Justice Coordinator to serve as legal counsel on matters relating to elder abuse, assist with prosecution of elder abuse cases, conduct public outreach relating to elder abuse, and coordinate data collection. U.S. Attorney Liu has selected Sarah McClellan, a senior prosecutor and the chief of the Office’s Victim Witness Assistance Unit, to serve in that position for the U.S. Attorney’s Office for the District of Columbia.
The U.S. Attorney’s Office works with the Metropolitan Police Department, District of Columbia Office of the Inspector General, the FBI’s Washington Field Office, and other law enforcement partners on investigations of crimes targeting older victims. In launching the initiative, the Office hopes to build on its work successfully prosecuting such cases.
In one recent matter, for example, a former personal banker pled guilty to stealing money from an 88-year-old woman by ordering a debit card for his own use and linking it to her account. He made 17 unauthorized transactions, totaling more than $4,000. In a similar case, another bank manager pled guilty to stealing more than $9,000 from the bank accounts of customers, including senior citizens, by issuing debit cards or changing PIN numbers linked to their bank accounts. In a third case, a woman pled guilty to using a stolen debit card to steal more than $25,000 from the checking and savings account of a 70-year-old man who was in failing health. All three defendants were ordered by the Court to pay full restitution as part of their sentences.
In another case last year, the office’s Sex Offense and Domestic Violence Section prosecuted a woman who carried out a pair of attacks against her 64-year-old ex-boyfriend, including one with a knife and one with sulfuric acid. The defendant pled guilty to charges and was sentenced to 12 years in prison. The victim suffered devastating injuries, including lifelong disfigurement – and spent nearly a month in a hospital burn unit.
The Office’s Civil Division will pursue cases related to nursing home fraud and abuse, including quality of care cases and all forms of billing abuses. The Civil Division will collaborate with D.C. government agencies associated with elder care and oversight and the D.C. Medicaid Fraud Control Unit (MFCU). In addition, the Civil Division plans to work with the Social Security Administration (SSA) to identify elder financial abuse.
In addition, the Office will continue its extensive community outreach efforts in hopes of increasing awareness to protect seniors. The Office regularly offers two important but distinctly different senior seminars in partnership with other agencies: “Financial Crimes Against Seniors” and “Elder Abuse and Exploitation of the Elderly.” Prosecutors and community outreach specialists present these seminars in senior dwellings and at senior programs throughout the District of Columbia. Participants are provided with resources about where they can find help in the event they become victims of financial scams, exploitation, or abuse.
These efforts are part of the Department of Justice’s Elder Justice Initiative, a multi-faceted nationwide program to combat elder abuse, neglect and financial fraud and scams that target senior citizens. According to the Justice Department, each year, an estimated $3 billion is stolen or defrauded from millions of American seniors. Through “grandparent scams,” fake prizes, romance scams, fraudulent IRS refunds, and even outright extortion, criminals try to exploit some of the most vulnerable Americans and steal their life’s savings.
With approximately 10,000 Americans turning 65 each day, the population of potential targets continues to grow. The U.S. Census Bureau projects that the population of Americans over 65 years of age will increase to 83.7 million in 2050, nearly double the estimated population of 43.1 million as of the most recent census.
More information about the Department of Justice’s elder justice efforts can be found on its Elder Justice Website at https://www.justice.gov/elderjustice
Two Waverly Men Sentenced to Federal Prison for “Dark Web” Counterfeit Carfentanil PillsRead the Press Release
Two men who possessed and sold counterfeit carfentanil pills were sentenced today to a total of more than 11 years in federal prison.
Cameron James Lensmeyer, age 20, and Evan Paul Sage, age 20, both from Waverly, Iowa, received the prison terms after their May 2018 guilty pleas. Lensmeyer pled guilty to possession with intent to distribute carfentanil and marijuana. Sage pled guilty to possession with intent to distribute carfentanil, cocaine, and marijuana, and possession of a firearm in furtherance of a drug trafficking crime.
In a plea agreement, Lensmeyer admitted that he and Sage purchased hundreds of purported prescription pills, including purported oxycodone and alprazolam pills, through a “dark web” marketplace. Evidence at an earlier hearing showed that, during a search of Lensmeyer’s and Sage’s shared Cedar Falls residence in June 2017, investigators seized over 800 blue pills that appeared to be prescription oxycodone pills (depicted below), over $20,000 in cash, over 30 grams of cocaine, over 600 grams of marijuana, and a loaded .32 caliber handgun. Later testing determined that most of the blue pills contained carfentanil, while a smaller amount contained another synthetic fentanyl called cyclopropyl fentanyl. Carfentanil is a powerful narcotic that is 10,000 times more potent than morphine and 100 times more potent than fentanyl. It is not approved for use by humans, but is used as an elephant tranquilizer.
Lensmeyer and Sage were sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Lensmeyer was sentenced to 52 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. Sage was sentenced to 85 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Both men are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was investigated by the Tri-County Drug Enforcement Task Force and was prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2004-LRR.
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Three Armed Bank Robbers Sentenced to at Least Seven Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced bank robbers Donald Marcel Rivers, Jr., age 30; Ashley Nicole Collier, age 31; and Timothy Mclain, age 29; all of Hagerstown, Maryland, to 14 years, 90 months, and 84 months and one day in prison, respectively, each followed by five years, five years, and three years of supervised release, for armed bank robbery and related firearms charges. Collier and Mclain were sentenced today and Rivers was sentenced on November 19, 2018.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office, Chief Paul J. Kifer of the Hagerstown Police Department; and Washington County Sheriff Douglas W. Mullendore.
According to their plea agreements, Rivers and his girlfriend, Collier, planned to rob a bank and enlisted Collier’s brother, Mclain. Specifically, on January 9, 2018, the conspirators robbed a bank located in the 1300 block of Salem Avenue in Hagerstown. The three arrived at the bank in a gray Jeep Cherokee. Rivers and Mclain, both wearing black face masks, entered the bank while Collier remained in the Jeep as the getaway driver. Rivers was armed with a loaded 9mm handgun, which he pointed at bank employees and customers inside the bank. Both men yelled and demanded “hundreds and fifties” from the tellers. Mclain held a duffle bag for the tellers to put the cash in, while Rivers approached several bank employees and a customer and pointed the firearm at them. After the tellers put the cash in Mclain’s duffle bag, the two men ran from the bank and jumped into the back seat of the Jeep while Collier sped away. The robbers stole approximately $6,567 from the bank.
Approximately 20 minutes later, police saw the gray Jeep near the road that runs along the Maryland and Pennsylvania state line. As the police attempted to stop the Jeep, the passenger side door swung open while the Jeep was in motion. As the Jeep came to a stop, Rivers jumped out and fled into a nearby cornfield, while the Jeep sped away. Police caught Rivers, who had $2,860.00 in his pocket.
A short time later, police saw the Jeep again parked in a nearby church parking lot. About 100 yards away, police saw Mclain and Collier walking on the road and arrested both of them. Mclain had $2,660.00 and a black face mask in his pocket. Collier had a 9mm handgun loaded with nine live 9mm rounds of ammunition and $1,070 in her purse. The 9mm handgun was the same handgun used in the bank robbery, and had previously been reported stolen from the owner in West Virginia.
A search warrant was authorized for the gray Jeep, which was registered to Rivers’ mother. Inside the Jeep, police located clothing worn by the robbers during the robbery, a black ski mask worn by Rivers during the robbery, a black duffle bag, and plastic cards belonging to Rivers and Collier, including a shooting range badge with Rivers’ name and photograph printed on the front of the card.
According to witnesses and records from the shooting range, on November 6, 2017, Rivers was in possession of firearms and ammunition at the shooting range. Rivers had a previous felony conviction and was therefore prohibited from possessing firearms or ammunition.
Donald Rivers’ mother, Dianne Rivers, pled guilty to felony obstruction of justice after she destroyed a phone her son used after the robbery. The grand jury had subpoenaed the phone during the robbery investigation. On November 9, 2018, Judge Chasanow sentenced Dianne Rivers to 3 months in prison.
United States Attorney Robert K. Hur praised the FBI – Frederick, the Hagerstown Police Department, and the Washington County’s Sheriff’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christine Duey and Sandra Wilkinson, who prosecuted the case.
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Project Huntington Update: Two Huntington Men Sentenced to Prison for Their Roles in Federal Drug ConspiracyRead the Press Release
HUNTINGTON, W.Va. – Two Huntington men were sentenced to prison for their roles in the Peterson drug trafficking organization (DTO), announced United States Attorney Mike Stuart. The Operation Saigon Sunset investigation was conducted by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West.
“Fentanyl and heroin have caused so many of our citizens to die of overdose,” said United States Attorney Mike Stuart. “To put drug peddlers like Sykes and Graves behind bars is a big win for the people of Huntington.”
Lawrence Sykes, Jr., also known as “Boog,” 26, who was caught selling fentanyl in November 2017, was sentenced to 33 months in prison. Sykes previously pled guilty to an indictment charging him with conspiracy to distribute heroin and fentanyl. Sykes admitted that between August 2017 and April 2018 he conspired with Manget Peterson to sell heroin in the Huntington, West Virginia area. As part of the plea agreement, Sykes admitted to distributing approximately 28 grams of fentanyl to a confidential informant in November 2017.
Charles Graves, also known as “Bo,” 46, who was caught selling heroin in February 2018, was sentenced to 18 months in prison. Graves previously pled guilty to an indictment charging him with conspiracy to distribute heroin. Graves admitted that in January and February 2018 he conspired with Manget Peterson to sell heroin in the Huntington, West Virginia area. As part of the plea agreement, Graves admitted to distributing heroin to a confidential informant in February 2018.
United States District Judge Robert C. Chambers imposed the sentences. Assistant United States Attorney Stephanie S. Taylor handled the prosecutions.
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Polo Man Sentenced to 25 Years in Prison for $4.3 Million Meth, Heroin ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Polo, Mo., man was sentenced in federal court today for his role in a $4.3 million conspiracy to distribute large quantities of methamphetamine and heroin throughout Clay, Ray, Clinton and Buchanan counties.
Joshua K. Bowers, 34, was sentenced by U.S. Chief District Judge Greg Kays to 25 years and 10 months in federal prison without parole. The court also ordered Bowers to forfeit to the government $11,319, which was seized by law enforcement officers, and to pay a money judgment of $525,600, which represents the proceeds received from illegal drug trafficking. Bowers is the final defendant among 26 defendants in this case to be sentenced after pleading guilty.
On June 9, 2017, Bowers pleaded guilty to participating in a conspiracy to distribute methamphetamine, to participating in a conspiracy to distribute heroin, and to possessing a firearm in furtherance of a drug-trafficking crime.
In 2010, the Buchanan County Drug Strike Force and the DEA initiated an investigation into a drug-trafficking organization distributing methamphetamine in northwest Missouri and northeast Kansas. According to court documents, conspirators sold $4,359,600 worth of methamphetamine and heroin from 2010 to 2015. That estimate is based on a conservative street price of $1,200 for an ounce of 50 percent pure methamphetamine and the total conspiracy distribution of at least 100 kilograms of methamphetamine, and a conservative street price of $2,500 per ounce of heroin and an overall conspiracy distribution of approximately three pounds.
Bowers admitted that he was responsible for the distribution of more than five kilograms of methamphetamine and more than one kilogram of heroin. Bowers also admitted that he was in possession of a Springfield Armory .40-caliber semi-automatic handgun, a New England 12-gauge shotgun and various other firearms during the drug-trafficking conspiracy.
Law enforcement officers executed a search warrant at Bowers’s resident on Jan. 13, 2015, and seized approximately one kilogram of methamphetamine, heroin, firearms, drug paraphernalia, drug sale proceeds and a drug ledger.
This case was prosecuted by Assistant U.S. Attorneys Bruce Rhoades, Bradley K. Kavanaugh and Matt Moeder. It was investigated by the Clay County Drug Task Force, the Missouri State Highway Patrol, the Caldwell County, Mo., Sheriff’s Department, the Buchanan County Drug Strike Force and the DEA.
Philadelphia-Area Restauranteur Sentenced to Prison for Tax FraudRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Giuseppe “Pino” DiMeo, 51, of Eagleville, Pennsylvania, was sentenced to 24 months’ imprisonment and ordered to pay $463,738 in restitution to the Internal Revenue Service (“IRS”), for conspiring to defraud the IRS and filing false tax returns. In addition, DiMeo was also sentenced to serve three years of supervised release and ordered to pay a special assessment of $1,100.
DiMeo and his business partners at restaurants defrauded the IRS of income taxes and payroll taxes. From 2008 through 2014, DiMeo took cash from his restaurants and paid many of his employees in cash under the table, then hid his “cash skim” and the cash payroll payments from his accountant and from the IRS in order to evade payment of income and payroll taxes. In total, DiMeo failed to report to the IRS approximately $2,000,000 in gross receipts from his stores.
DiMeo’s cash skim and cash payroll payments occurred at DiMeo’s Pizza of Lafayette Hill, Pennsylvania (closed); Pizzeria DiMeo’s of Philadelphia, Pennsylvania (now sold); Allegro Pizza of Philadelphia, Pennsylvania (closed); and DiMeo’s Pizzaiuoli Napulitani of Wilmington, Delaware.
“For years, DiMeo maintained that his businesses were barely profitable, all the while living a lavish lifestyle bankrolled by the money he owed the IRS,” said U.S. Attorney McSwain. “His actions reveal a deliberate disregard for the law. Today’s sentence sends a powerful message to those who cheat the tax system: you will not get away with it.”
“Not only did Giuseppe DiMeo skirt his income tax obligations, he also failed to withhold and remit, to the IRS, income taxes for his employees,” said IRS Criminal Investigation Special Agent in Chart Guy Ficco. “This sentence should serve as a reminder that IRS Criminal Investigation and the Department of Justice have no tolerance for such criminal behavior.”
The case was investigated by the Internal Revenue Service, Criminal Investigations, and was prosecuted by Assistant United States Attorneys Maria M. Carrillo and Tiwana L. Wright
Ohio Tax Attorney Pleads Guilty to Obstructing the IRSRead the Press Release
WASHINGTON - A Columbus, Ohio, attorney pleaded guilty today to corruptly endeavoring to impede and obstruct the due administration of the Internal Revenue Service, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio.
According to documents and information provided to the court, Marcus “Marc” Dunn has been a licensed attorney in Ohio since the late 1990s. Starting in 2007, Dunn advised and assisted the late Dr. Kevin Lake in various legal matters, primarily related to Dr. Lake’s operation of Columbus Southern Medical Clinic in Columbus, Ohio. Dunn’s specialty during this time was tax law.
In 2009 and 2010, the IRS audited a number of corporate entities controlled by Dr. Lake. When the IRS Revenue Agent conducting the audits requested documents supporting certain tax positions taken by Dr. Lake regarding the clinic’s equipment, Dunn provided the Revenue Agent with “bills of sale” appearing to support the false depreciation deductions that Dr. Lake’s entities had claimed. The IRS determined that these “bills of sale” were false, in that they inflated the value of the clinic’s equipment. At the same time, Dunn supplied these documents to the IRS, he had provided contrary information regarding the true value of the clinic equipment to third parties.
In 2011, Dunn filed petitions in U.S. Tax Court in an effort to challenge the IRS’s determination that some of the audited entities owed additional taxes. In 2014, the case was settled with an agreed amount of $608,583.20 due. On September 9, 2014, Dunn was contacted by an IRS Revenue Officer trying to collect the settlement amount from the Lake entities. Dunn knowingly provided false and purposely misleading information to the Revenue Officer about two of the three Lake entities by telling her that: (1) the entities at issue were closed; (2) he had no idea who the officers of the entities were; (3) the entities had no assets; (4) an IRS Form 433-B, Collection Information Statement for Businesses seeking information relating to property held, would be all “zeros”; and (5) he did not know where the entities banked. At least partially due to Dunn’s statements, the Revenue Officer closed the collection cases because she believed the entities were defunct with no assets.
The parties agree that Dunn is responsible for a tax loss of $507,198.00. The tax loss has since been paid to the IRS using funds seized from Dr. Lake, who pleaded guilty in January 2017 to drug, tax, and fraud charges. Dr. Lake died before sentencing in that case.
Sentencing will be scheduled at a later date before U.S. District Court Judge Michael H. Watson. Dunn faces a maximum sentence of three years in prison, a period of supervised release, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Glassman commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Richard M. Rolwing and Carl F. Brooker of the Tax Division, who are prosecuting the case.
Niagara Falls Man Pleads Guilty to Sex Trafficking Charge Involving 17 Year Old VictimRead 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 Marcellus Overton, 43, of Niagara Falls, NY, pleaded guilty to conspiracy to commit sex trafficking of a minor before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of life in prison and a $250,000 fine.
Assistant U.S. Attorney John D. Fabian, who is handling the case, stated that in December 2012, the defendant met Victim 1 in Olean, NY, through a friend of Victim 1. Overton transported Victim 1, who was 17 years old, and a friend to Niagara Falls. Between late December 2012 and March 2013, the defendant conspired to have advertisements posted online at Backpage.com soliciting prostitution appointments for Victim 1. Overton transported or arranged for the transportation of Victim 1 to prostitution appointments scheduled as a result of the Backpage.com advertisements. The defendant also rented or arranged for the rental of hotel rooms at which Victim 1’s prostitution appointments took place. Overton received a share of Victim 1’s earnings from the prostitution appointments.
The plea is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in- Charge Kevin Kelly, and the New York State Police, under the direction of Major Edward Kennedy.
Sentencing is scheduled for March 20, 2019, at 11:00 a.m. before Judge Skretny.# # # #
New York Woman Pleads Guilty to Providing Material Support to ISISRead the Press Release
Zoobia Shahnaz, 27, of Brentwood, New York, pleaded guilty to providing material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Richard P. Donoghue for the Eastern District of New York, Assistant Director in Charge William F. Sweeney, Jr. for the FBI’s New York Field Office, and Commissioner James P. O’Neill for the NYPD announced the guilty plea. The guilty plea was entered before U.S. District Judge Joanna Seybert.
According to court filings and facts presented at the plea hearing, between March 2017 and the date of her attempted travel to Syria on July 31, 2017, the defendant engaged in a scheme to defraud numerous financial institutions. Specifically, Shahnaz obtained a loan for approximately $22,500 by way of materially false pretenses, representations and promises. She also fraudulently applied for and used over a dozen credit cards, which she used to purchase approximately $62,000 in Bitcoin and other cryptocurrencies online. She then engaged in a pattern of financial activity, culminating in several wire transactions totaling over $150,000 to individuals and shell entities in Pakistan, China and Turkey that were fronts for ISIS.
During the time she was committing bank fraud and laundering money overseas, the defendant was accessing ISIS propaganda online, including violent jihad-related websites and message boards, and social media and messaging pages of known ISIS recruiters, facilitators and financiers. Additionally, the defendant conducted numerous internet searches for information that would facilitate her entry into Syria, but ultimately was intercepted by the Joint Terrorism Task Force (JTTF) at John F. Kennedy International Airport (JFK) in Queens, New York, while attempting to board a flight with a multi-day layover in Istanbul, Turkey – a common point of entry for individuals travelling from Western countries to join ISIS in Syria.
As part of her plea agreement with the government, Shahnaz admitted to defrauding numerous financial institutions and laundering the stolen proceeds out of the country with the intent to support a specified unlawful activity, namely the provision of material support to ISIS, after which she attempted to leave the United States and travel to Syria.
When she is sentenced, Shahnaz faces up to 20 years in prison, as well as restitution, criminal forfeiture and a fine. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. Any sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Mr. Demers and Mr. Donoghue extended their grateful appreciation to the FBI’s JTTF, which comprises a number of federal, state and local agencies from the region.
The government’s case is being handled by Assistant U.S. Attorney Artie McConnell of the Eastern District of New York and Trial Attorney Joseph Attias of the National Security Division’s Counterterrorism Section.
Nevada Cardiologist Pleads Guilty to Unlawful Distribution of Oxycodone and HydrocodoneRead the Press Release
RENO, Nev. – A northern Nevada cardiologist pleaded guilty today to distributing highly addictive prescription drugs Oxycodone and Hydrocodone to patients without a medical purpose, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Dr. Devendra I. Patel, aka Devendrakumar I. Patel, 59, of Elko, who owns and operates Northeastern Nevada Cardiology, was indicted by a grand jury in December 2017. United States District Judge Larry R. Hicks accepted the guilty plea.
The investigation revealed Patel contributed to the opioid epidemic by unlawfully prescribing opioids and other prescription narcotics to patients for financial gain. As part of his plea, Patel admitted that, between September 2015 and February 2016, he prescribed Oxycodone (such as OxyContin) and Hydrocodone (such as Norco) to patients without a legitimate medical purpose and outside the usual course of professional practice. These prescriptions were in direct violation of his duty as a long-term licensed medical doctor. His license was suspended upon his arrest in December 2017. Patel’s prescribing practices allowed him to see a high volume of patients and easily prescribe and sell the opioids, while not addressing any legitimate medical concerns of his patients.
Sentencing is scheduled for March 18, 2019. The statutory maximum penalty is 20 years in prison and a $1,000,000 fine.
The case was investigated by the FBI, DEA, Office of Inspector General of the U.S. Department of Health and Human Services, U.S. Secret Service, the Elko Combined Narcotics Unit, Elko Police Department, Elko County Sheriff’s Office, and the Nevada Department of Public Safety. Assistant U.S. Attorneys Kilby Macfadden and Sue Fahami are prosecuting the case.
According to the CDC, approximately 115 Americans die every day of an opioid-related overdose. In 2016, there were 408 opioid-related deaths in Nevada, according to the Nevada Department of Health and Human Services. In 2016, Nevada’s per capita prescription rate for opioids was 87/100 residents. Nevada ranked as the sixth highest state for the number of milligrams of opioids distributed per adult, according to a DEA study. From 2010 to 2016, opioid-related hospitalizations have increased by 136% in emergency room encounters and 84% in in-patient admissions. During this time-period, 85% of all opioid-related deaths in Nevada were deemed accidents, according to the National Institute on Drug Abuse Study for Nevada.
The Opioid Fraud and Abuse Detection unit is a program that utilizes data to help combat the devastating opioid crisis. The District of Nevada was selected as one of 12 districts nationally to participate in the pilot program. The District of Nevada has assigned an experienced prosecutor that focuses solely on investigating and prosecuting health care fraud related to medical professionals who prescribe opioids, that unlawfully divert of dispense prescription opioids for illegitimate purposes.
For information about the harmful effects of illicit drug use, visit www.JustThinkTwice.com for teens, and www.GetSmartAboutDrugs.com for parents, educators and caregivers. To report suspected opioid-related crimes, the public is encouraged to contact the DEA at www.deadiversion.usdoj.gov/tips_online.htm or the FBI at tips.fbi.gov.
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Neenah Man Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on November 20, 2018, a federal indictment was issued against Jeffrey Melgar (age: 33) of Neenah, Wisconsin.
The indictment alleges that Jeffrey Melgar possessed in excess of 50 grams of actual (also known as “crystal”) methamphetamine with the intent to distribute the controlled substance in violation of Title 21, United States Code, Section 841(a) and (b)(1)(A). If convicted of the charges alleged, Melgar faces a mandatory 10 year prison sentence and up to a life sentence. Melgar will be arraigned on November 27, 2018, in Green Bay federal court.
This case was investigated by the U.S. Postal Inspection Service, the U.S. Drug Enforcement Administration, and the Lake Winnebago Area Metropolitan Enforcement Group. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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For additional information contact:
Public Information Officer Dean Puschnig, 414-297-1700
Modesto Man Sentenced to Prison and Another Pleads Guilty to Burglarizing Fresno Firearms StoreRead the Press Release
FRESNO, Calif. — Johnny Sanchez, 22, of Modesto, was sentenced today by Chief U.S. District Judge Lawrence J. O’Neill to 11 years and eight months in prison for stealing 50 firearms from a Fresno gun store last year, U.S. Attorney McGregor W. Scott announced. Co‑defendant Nathan Creel, 22, also of Modesto, pleaded guilty today to conspiring with Sanchez and three others in connection with the burglary of the firearms store.
According to court documents, on October 20, 2017, Sanchez, Creel, and co-defendants James Britt, David Avina, and Luis Galvan broke into the Fresno firearms store by cutting a chain and lock with bolt cutters and prying open the door. The defendants stole 50 firearms, including numerous foreign and domestic rifles. After the theft, the defendants sold most of the firearms to others.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Kimberly A. Sanchez and Christopher D. Baker are prosecuting the case.
Creel is scheduled to be sentenced by Judge O’Neill on February 11, 2019. Creel faces a maximum statutory penalty of 25 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
James Britt pleaded guilty and is scheduled to be sentenced on March 25, 2019. Charges are pending against David Avina and Luis Galvan. The charges are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Miami Beach Residents Charged with Wire Fraud in Connection with Fraudulent Online Car Sales WebsiteRead the Press Release
Merkourios Alexopoulos, 46, and Sabrina Schnekker, 32, of Miami Beach, were arrested on an indictment charging them with conspiracy to commit wire fraud and wire fraud in connection with a fraudulent online car sales website.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office and Daniel Oates, Chief, Miami Beach Police Department (MBPD) made the announcement.
According to the allegations contained in the indictment, from in or around August 2013, through May 2018, Alexopoulos and Schnekker operated Salvageworldauctions.com as an online retailer purporting to sell salvaged vehicles. Potential buyers would pay a $500 entrance fee to bid on the vehicles purportedly for sale.
Once a bid was accepted, Alexopoulos would allegedly discuss the final terms for the payment and delivery of the vehicles with the individual purchasers and instructed the victims to send the purchase monies via wire transfer or money orders to the various bank accounts controlled by Alexopoulos and Schnekker and maintained at City National Bank, Citi Bank, PNC Bank, Wells Fargo, Regions Bank, BB&T, Suntrust Bank, and Chase Bank, among others. After the victims transferred the purchase monies to the bank accounts controlled by Alexopoulos and Schnekker, the conspirators would use those monies to pay their personal expenses and to further the fraudulent scheme.
The indictment further alleges that Alexopoulos and Schnekker never delivered, nor did the victims receive, the vehicles ordered and paid for by the victim purchasers from Alexopoulos and Schnekker through Salvageworldauctions.com. In total, the investigation has revealed approximately 51 victims, with an approximately loss amount of $1.2 million.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the USSS and MBPD. This case is being prosecuted by Assistant U.S. Attorney Jonathan D. Stratton.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Mexican National Pleads Guilty to 15-Pound Methamphetamine Deal in Kern CountyRead the Press Release
FRESNO, Calif. — Oscar Ivan Salazar-Avalos, 28, a citizen of Mexico, pleaded guilty today to conspiring to distribute and possess with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, Salazar and his co-defendant Jose Manuel Sotelo-Mendoza, 26, of Ceres, delivered 15 pounds of methamphetamine to an undercover officer in Delano after Salazar negotiated with the officer to sell the drug for $3,400 per pound. In pleading guilty, Salazar acknowledged that he and Sotelo had met his source of supply in Castaic in the northern part of Los Angeles County to obtain the 15 pounds of methamphetamine. In addition, Salazar indicated that they intended to make $51,000 on the deal.
Salazar is scheduled for sentencing on February 19, 2019, before U.S. District Judge Dale A. Drozd. Salazar faces a minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison, along with a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Charges are pending against Sotelo. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Central Valley High Intensity Drug Trafficking Area Task Force, consisting of law enforcement officers of Homeland Security Investigations, California Highway Patrol, Bureau of Investigation of the California Department of Justice, Fresno Police Department, and Fresno County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Long Island Woman Pleads Guilty to Providing Material Support to ISISRead the Press Release
Earlier today, in federal court in Central Islip, Zoobia Shahnaz pleaded guilty to providing material support to a foreign terrorist organization, the Islamic State of Iraq and al-Sham (“ISIS”), which has been designated by the U.S. Secretary of State as a foreign terrorist organization. As part of her plea agreement with the government, Shahnaz admitted defrauding numerous financial institutions, and then laundering and transferring the stolen proceeds out of the country with the intent to support a specified unlawful activity, namely the provision of material support to ISIS, after which she attempted to leave the United States and travel to Syria. When sentenced, Shahnaz faces up to 20 years in prison, as well as restitution, criminal forfeiture and a fine. The guilty plea was entered before United States District Judge Joanna Seybert.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John C. Demers, Assistant Attorney General for National Security, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the guilty plea.
“With today’s guilty plea, Shahnaz, a resident of our district, admitted to engaging in a complex scheme using cryptocurrencies designed to put thousands of dollars into the coffers of ISIS, a foreign terrorist organization dedicated to murder and destruction,” stated United States Attorney Donoghue. “Counterterrorism is the highest priority of the Department of Justice and our law enforcement partners, and together we will continue to hold accountable those who abet terrorists seeking to harm the United States and its allies.”
Mr. Demers and Mr. Donoghue expressed their grateful appreciation to the FBI’s Joint Terrorism Task Force (JTTF), which comprises a number of federal, state and local agencies from the region.
“In the interest of empowering and enriching a terrorist organization whose aim is to harm America, Zoobia Shahnaz turned her back on her country and her fellow citizens,” stated FBI Assistant Director-in-Charge Sweeney. “Thanks to the diligent work of the FBI New York Joint Terrorism Task Force, her crimes were uncovered, and she was unable to succeed in her ultimate goal of traveling to Syria to join ISIS. This conviction sends a message to anyone who seeks to manipulate our financial systems to provide support to our adversaries: you too will be discovered, investigated, and brought to justice.”
According to court filings and facts presented at the guilty plea proceeding, between March 2017 and the date of her attempted travel to Syria on July 31, 2017, Shahnaz engaged in a bank fraud scheme to raise money for ISIS. In furtherance of that scheme, she obtained a loan for approximately $22,500 through materially false representations, used more than a dozen fraudulently obtained credit cards to purchase approximately $62,000 in Bitcoin and other cryptocurrencies online and then wired over $150,000 to individuals and shell entities in Pakistan, China and Turkey that were fronts for ISIS.
At the same time, Shahnaz accessed ISIS propaganda at various violent jihad-related websites and message boards, and social media and messaging pages of known ISIS recruiters, facilitators and financiers. She also searched the internet for information to facilitate her travel into Syria, but ultimately was intercepted by the JTTF at John F. Kennedy International Airport.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Artie McConnell of the Eastern District of New York and Trial Attorney Joseph Attias of the National Security Division’s Counterterrorism Section are in charge of the prosecution.
The Defendant:
Zoobia Shahnaz
Age: 27
Brentwood, NYE.D.N.Y. Docket No. 17-CR-690 (JS)
Lexington Therapy Practice Agrees to Pay $200,000 to Resolve Allegations That It Submitted False Claims to Medicare and MedicaidRead the Press Release
COLUMBIA, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Vital Energy Occupational Therapy and Wellness Center, LLC, headquartered in Lexington, South Carolina, has agreed to pay $200,000 to resolve allegations that it knowingly submitted false or fraudulent claims to Medicare and Medicaid for physical and occupational therapy services.
The settlement announced today resolves allegations that Vital Energy violated federal law from November 1, 2013, through April 30, 2016, by submitting bills for individual therapy services when group therapy services were actually provided, and by submitting bills for therapy services using former employees’ names and billing numbers when those former employees did not actually provide the therapy services. Vital Energy denies these allegations.
The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The Act permits private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to share in any recovery. As part of today’s resolution, the whistleblower will receive $36,000.
“The False Claims Act exists to protect taxpayer dollars from waste, fraud, and abuse,” said U.S. Attorney Lydon. “And when health care providers fail to follow the rules, the public bears the cost. It is through settlements like these that we recover those costs and discourage fraudulent and reckless billing.”
The settlement was the result of an investigation by the United States Attorney’s Office, with support from the Department of Health and Human Services and the South Carolina Attorney General’s Office Medicaid Fraud Control Unit. The settlement was handled by Assistant United States Attorney Brook B. Andrews of the Columbia office.
The case is captioned United States ex rel. Ashley C. Baggett, DPT v. Vital Energy Occupational Therapy and Wellness Center, LLC, d/b/a Vital Energy Wellness and Rehab Center, Case No. 3:16-cv-1692-DCC (D.S.C.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Hartford Man Charged with Federal Offenses Stemming from Drug-Related ShootingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Brian C. Turner, Special Agent in Charge of the Federal Bureau of Investigation, and Hartford Police Chief David Rosado, today announced that a federal grand jury in Hartford has returned a four-count indictment charging RANDY PARKMAN, 41, of Hartford, with robbery and firearm offenses.
The indictment was returned on November 6, 2018. Parkman appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and entered a plea of not guilty to the charges. He has been detained since his arrest on October 22, 2018.
As alleged in court documents, on May 22, 2018, Parkman shot and seriously wounded an individual during a robbery at 149 Wethersfield Avenue in Hartford. At the time, the location was being used as a “trap house” by a drug trafficking organization. Parkman was arrested at his residence on October 22, 2018. On that date, a search of the home revealed a Taurus, Model 444, .44 caliber revolver, which had been reported stolen from a motor vehicle in Hartford in August 2018.
It is alleged that Parkman’s criminal history includes numerous felony convictions for larceny, burglary and other offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The indictment charges Parkman with one count of interference with commerce by robbery, an offense that carries a maximum term of imprisonment of 20 years, and one count of possession and discharge of a firearm during and in relation to a crime of violence, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. The indictment also charges Parkman with one count of possession of ammunition by a convicted felon and one count of possession of a firearm by a convicted felon, offenses that carry a maximum term of imprisonment of 10 years on each count.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and Shooting Task Force have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Harrison County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Robert Lee Starkey, Jr., of Clarksburg, West Virginia, was sentenced today to 15 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Starkey, age 24, pled guilty to one count of “Unlawful Possession of a Firearm” in July 2018. Starkey, having been previously convicted of a felony, admitted to having a .22-caliber revolver in March 2018 in Harrison County.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Attorney General’s Office has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Attorney General’s Office announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia Probation Office investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Fulton Sex Offender Pleads Guilty to Transporting 13-year-old Victim to Missouri for SexRead the Press Release
JEFFERSON CITY, Mo. – A prior sex offender in Fulton, Mo., pleaded guilty in federal court today after his mother and grandmother transported a 13-year-old child victim from Alabama to engage in illegal sexual activity with him.
Michael James Collins, 21, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr. Collins, who was a resident at the Community Supervision Center in Fulton, was on probation at the time of the offense for a prior felony conviction for sexual misconduct involving a child.
According to today’s plea agreement, the Callaway County, Mo., Sheriff’s Department received information on Dec. 10, 2017, that a 13-year-old girl from Alabama was missing from her home. A cell phone ping placed the child victim at a residence in Fulton, where she was located and removed.
Collins admitted that he paid his grandmother $400 to go to Alabama to pick up the child victim, whom he met on a dating website in July 2017. Collins’s mother was with his grandmother when the child victim was picked up in Alabama and transported to Missouri. Collins’s grandmother and mother also transported the child victim between the Fulton residence and Collins’s residence at the Community Supervision Center when they were taking Collins back and forth to work.
Collins and the child victim communicated with each other from July to December 2017 via cell phone, Facebook Messenger and other apps, which was a violation of Collins’s probation. Collins accessed the internet using his cell phone as well as his mother’s cell phone.
Collins pleaded guilty today to transporting a minor under the age of 14 across state lines with the intent to engage in illegal sexual activity and to committing the felony offense while he was under the requirement to register as a sex offender.
Under federal statutes, Collins is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Callaway County, Mo., Sheriff’s Department, the Fulton, Mo., Police Department, the FBI, the Callaway County, Mo., Prosecutor’s Office and the Callaway County Children’s Division.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Fort Worth Man Guilty of Possessing Eastern Screech Owl in Eastern District of TexasRead the Press Release
TYLER, Texas – A 46-year-old Ft. Worth man has pleaded guilty to federal wildlife violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Jorge Fernando Mercado pleaded guilty to an Information charging him with unlawful possession of migratory birds today before U.S. Magistrate Judge John D. Love.
According to information presented in court, on Sep. 30, 2017 in Van Zandt County, Texas, Mercado, knowingly possessed, and then sold, a live Eastern Screech-Owl (Megascops asio) to another individual for $200.00. The Eastern Screech-Owl is a “migratory bird” which is protected by federal statute and international conventions. Mercado admitted that he knowingly possessed and sold the owl without a valid permit or authorization.
Under federal statutes, Mercado faces up to six months in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The owl was recovered and rehabilitated by U.S. Fish & Wildlife and has since been released back into the wild.
This case was investigated by Texas Parks and Wildlife and U.S. Fish and Wildlife Service and prosecuted by Assistant U.S. Attorney Jim Noble.
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Former Shelton Resident Who Embezzled $326K from Her Employer Sentenced to 33 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MIRIAM DUBAY, 66, of Purcellville, Virginia, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 33 months of imprisonment, followed by three years of supervised release, for embezzling more than $326,000 from her Connecticut employer.
According to court documents and statements made in court, Dubay, who formerly resided in Shelton, was the bookkeeper for a small, family-owned business in Shelton. Dubay was the only accounting person for the business, and she had access to the company’s bank accounts, check stock, accounting books and records, and petty cash. She also was responsible for depositing business checks and cash payments from customers into the company’s bank account.
From at least as early as April 2010 and continuing through October 2016, Dubay engaged in a scheme to defraud her employer by writing checks on company check stock made out to “cash” and either forging the signature on the checks by hand or by using a fraudulently obtained signature stamp. Dubay either deposited the checks into her personal bank account or cashed the checks at the bank where her employer maintained its business account. Dubay forged 168 separate checks totaling $239,851.68.
As part of this embezzlement scheme, Dubay also stole 103 customer cash payments, totaling $86,279, instead of depositing the cash into the business’s bank account.
Judge Underhill ordered Dubay to make full restitution to her victim employer.
On June 26, 2018, Dubay pleaded guilty to one count of wire fraud.
Dubay, who is released on a $20,000 bond, was ordered to report to prison on January 16, 2019.
This matter was investigated by the Shelton Police Department, the U.S. Secret Service and the Connecticut Financial Crimes Task Force. The case was prosecuted by Assistant U.S. Attorney Susan L. Wines.
Former Reservist Sentenced to More than 11 Years in Prison for Stealing Weapons from Army Reserve Center, Escaping from Prison & Attempted Bank RobberyRead the Press Release
BOSTON – A former Army Reservist was sentenced today in federal court in Worcester for stealing six machine guns and 10 handguns from a U.S. Army Reserve facility, escaping from federal prison, and attempting to rob two banks.
James W. Morales, 37, of Cambridge, was sentenced by U.S. District Court Judge Timothy S. Hillman to 138 months in prison and three years of supervised release. In November 2017, Morales pleaded guilty to one count of being a felon in possession of a firearm; one count of possession of a machine gun; one count of possession of stolen firearms; one count of theft of government property; one count of conspiracy to possess, store, conceal, and sell stolen weapons; one count of escape; and two counts of attempted bank robbery.
On Nov. 14, 2015, Morales broke into a weapons vault at the Lincoln Stoddard United States Army Reserve Center in Worcester and stole six M-4 Carbines and 10 M-11 handguns. Morales was familiar with the layout of the facility, having been stationed there prior to his discharge from the Army Reserve.
Morales gained access to the weapons by breaking a kitchen window located near the room that contained the vault, climbing to the top of the vault, and cutting a hole through its ceiling. The sharp edges of the ceiling caused Morales to cut himself, leaving behind DNA, which was matched to Morales three days after the robbery.
Upon identifying Morales through the DNA database, law enforcement learned that Morales was on bail for child rape charges pending in Middlesex Superior Court. One of the conditions of his release required him to wear an electronic monitoring bracelet, which he wore during the robbery. In addition, surveillance video depicting a dark colored BMW X1 parked at a building adjacent to the U.S. Army facility was recovered. In the video, a man can be seen going to and from the car with duffle bags. Soon after Morales was identified, law enforcement learned that Morales was renting a BMW X1 at the time of the robbery.
After the robbery, Morales rented another vehicle, and GPS data from the vehicle showed that Morales had travelled to New York City, where he was located and arrested on Nov. 18, 2015, in Long Island. Inside his vehicle, four M-4 Carbines and two M-11 handguns were recovered with serial numbers matching those stolen from the Armory.
In a statement admitting his role in the robbery of the Army Reserve facility, Morales explained that he sold five of the handguns to two individuals in Dorchester with the help of Tyrone James and Ashley Bigsbee, who facilitated the transaction. Morales claimed to have given James and Bigsbee several hundred dollars, one of the M-4 Carbines and one of the M-11 handguns as payment for assisting with the sales. In April 2017, James was sentenced to 57 months in prison. In March 2017, Bisgbee was sentenced to 21 months in prison.
Following his arrest, Morales was detained at the Donald W. Wyatt Detention Facility in Central Falls, R.I. On Dec. 31, 2016, Morales escaped from the prison by climbing a basketball hoop, jumping onto a roof, and going through a barbed wire fence.
On Jan. 5, 2017, Morales was captured on surveillance video entering a branch of Bank of America in Cambridge and attempting to rob the bank by passing the teller a note that read, “I WANT ALL OF THE LARGE DENOMINATIONS W/BAND’S FROM THE 2ND (BOTTOM) TILL NOW BE CALM – BE COOL – NO DYE PACKS.” The teller was able to flee to the back of the bank behind a locked door, and Morales exited the bank without any money.
Later that same day, Morales, again captured on surveillance video, entered a branch of Citizen’s Bank in Somerville and attempted to rob the bank by passing the teller a note that read, “I WANT THE MONEY IN THE TILL NOW!! 100’s 50’s 20’s Be Calm, Be Cool, be Quick.” The teller stated, “I can’t,” and Morales wished the teller a nice day and exited the bank.
After a foot pursuit in Somerville, Morales was apprehended by law enforcement; he admitted to attempting to rob both banks.
United States Attorney Andrew E. Lelling; United States Attorney Stephen G. Dambruch for the District of Rhode Island; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; United States Marshal John Gibbons for the District of Massachusetts; United States Marshal Jaime A. Hainsworth for the District of Rhode Island; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Cambridge Police Commissioner Branville G. Bard; and Somerville Police Chief David Fallon made the announcement today. Assistant U.S. Attorney Mark Grady of Lelling’s Criminal Division prosecuted the case.
Former Kellyville Indian Community Treasurer Pleads Guilty to EmbezzlementRead the Press Release
TULSA, Okla. A Kellyville woman was convicted today in U.S. District Court of embezzling in excess of $1,000 from an Indian tribal organization, announced U.S. Attorney Trent Shores.
Linda Kay Buchanan, 51, pleaded guilty to embezzling money from a Kellyville Indian Community general fund account from December 2014 to February 2018. The Kellyville Indian Community is a community of the Muscogee (Creek) Nation.
Investigators estimate Buchanan embezzled more than $40,000 from the general fund.
“Ms. Buchanan had a fiduciary responsibility in her position of financial oversight of bank accounts. She acted selfishly toward the community she was trusted to serve for more than three years,” said U.S. Attorney Trent Shores. “Embezzlement and financial corruption can be devastating with far reaching losses. It is through a strong collaborative partnership between the Muscogee (Creek) Nation Attorney General’s Office and the FBI that Ms. Buchanan was brought to justice.”
The Kellyville Indian Community discovered Buchanan’s illegal activity after they removed her as treasurer. When board members tried to access monies from the general account that Buchanan was formerly responsible for, they discovered there were insufficient funds. Investigators found that Buchanan had illegally written checks made out to herself and to cash for her own personal use during her time as treasurer.
U.S. District Chief Judge Gregory K. Frizzell scheduled sentencing for Feb. 27. Buchanan was released under conditions until sentencing and potentially faces a maximum penalty of five years in prison, a $250,000 fine, and three years of supervised release.
This case resulted from a joint investigation performed by the Muscogee (Creek) Nation Attorney General’s Office and the FBI and was prosecuted by Assistant U.S. Attorney Shannon Cozzoni.
Former Honduran Congressman and Brother of the Current President of Honduras Charged with Conspiring to Import Cocaine into the United States and Related Firearms OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Raymond Donovan, the Special Agent in Charge of the Special Operations Division of the U.S. Drug Enforcement Administration (“DEA”), announced today that former Honduran congressman Juan Antonio Hernandez Alvarado, a/k/a “Tony Hernandez,” (“HERNANDEZ”) was charged in Manhattan federal court with conspiring to import cocaine into the United States, related weapons offenses involving the use and possession of machineguns and destructive devices, and making false statements to federal agents. HERNANDEZ is the brother of the current president of Honduras, Juan Orlando Hernandez. The case is assigned to U.S. District Judge P. Kevin Castel. HERNANDEZ was arrested on November 23, 2018, in Miami, Florida, and will appear this afternoon in Miami federal court before United States Magistrate Judge Jonathan Goodman.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, former Honduran congressman Tony Hernandez was involved in all stages of the trafficking through Honduras of multi-ton loads of cocaine that were destined for the U.S. Hernandez allegedly arranged machinegun-toting security for cocaine shipments, bribed law enforcement officials for sensitive information to protect drug shipments, and solicited large bribes from major drug traffickers. Thanks to the ongoing work of the DEA, Hernandez is now in custody on U.S. soil and facing justice in the U.S. courts.”
Special Agent in Charge Raymond Donovan said: “Drug trafficking and corruption around the world threatens the rule of law, fuels violence and instability, and harms innocent families and communities. Hernandez and his criminal associates allegedly conspired with some of the world’s most deadly and dangerous transnational criminal networks in Mexico and Colombia to flood American streets with deadly drugs. DEA looks forward to Hernandez facing American justice and answering for his alleged crimes.”
As alleged in the Superseding Indictment unsealed in federal court:[1]
From at least in or about 2004, up to and including in or about 2016, multiple drug-trafficking organizations in Honduras and elsewhere worked together, and with support from certain prominent public and private individuals, including Honduran politicians and law enforcement officials, to receive multi-ton loads of cocaine sent to Honduras from, among other places, Colombia via air and maritime routes, and to transport the drugs westward in Honduras toward the border with Guatemala and eventually to the United States. For protection from official interference, and in order to facilitate the safe passage through Honduras of multi-hundred-kilogram loads of cocaine, drug traffickers paid bribes to public officials, including certain members of the National Congress of Honduras.
HERNANDEZ is a former member of the National Congress of Honduras, the brother of the current president of Honduras, and a large-scale drug trafficker who worked with other drug traffickers in, among other places, Colombia, Honduras, and Mexico, to import cocaine into the United States. From at least in or about 2004, up to and including in or about 2016, HERNANDEZ was involved in processing, receiving, transporting, and distributing multi-ton loads of cocaine that arrived in Honduras via planes, go-fast vessels, and, on at least one occasion, a submarine. HERNANDEZ had access to cocaine laboratories in Honduras and Colombia, at which some of the cocaine was stamped with the symbol “TH,” i.e., “Tony Hernandez.” HERNANDEZ also coordinated and, at times, participated in providing heavily armed security for cocaine shipments transported within Honduras, including by members of the Honduran National Police and drug traffickers armed with, among other weapons, machineguns.
As part of his drug-trafficking activities, HERNANDEZ and his co-conspirators bribed law enforcement officials for sensitive information to protect drug shipments and solicited large bribes from major drug traffickers for HERNANDEZ.
In or about February 2014 in Honduras, HERNANDEZ met with Devis Leonel Rivera Maradiaga, the former leader of a violent Honduran drug-trafficking organization known as the Cachiros, for a meeting arranged by, among others, a former member of the Honduran National Police. During a video- and audio-recorded portion of that meeting, HERNANDEZ agreed to help Rivera Maradiaga by causing Honduran government entities to pay money owed to one or more Cachiros money-laundering front companies in exchange for kickback payments from Rivera Maradiaga. Rivera Maradiaga paid HERNANDEZ approximately $50,000 during the meeting.
* * *
The Superseding Indictment charges HERNANDEZ, 40, with four counts: (1) conspiring to import cocaine into the United States, (2) using and carrying machine guns and destructive devices during, and possessing machine guns and destructive devices in furtherance of, the cocaine-importation conspiracy, (3) conspiring to use and carry machine guns and destructive devices during, and to possess machine guns and destructive devices in furtherance of, the cocaine-importation conspiracy, and (4) making false statements to federal agents. If convicted, HERNANDEZ faces a mandatory minimum sentence of 10 years in prison and a maximum term of life in prison on Count One, a mandatory minimum sentence of 30 years in prison and a maximum term of life in prison on Count Two, a maximum term of life in prison on Count Three, and a maximum term of five years in prison on Count Four. The potential mandatory minimum and maximum sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit, New York Strike Force, and Tegucigalpa Country Office, as well as the U.S. Department of Justice’s Office of International Affairs.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III and Mathew J. Laroche are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely allegations, and the defendant is 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 set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former D.C. Schools Employee and Business Owner Plead Guilty to Federal Charge in Bid-Rigging SchemeRead the Press Release
WASHINGTON – A former employee of the District of Columbia Public Schools and a business owner, her longtime friend, pled guilty today to a federal mail fraud charge stemming from a bid-rigging scheme involving a government contract valued at nearly $300,000.
The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and District of Columbia Inspector General Daniel W. Lucas.
Amber R. Crowder, 39, of Washington, D.C., also known as Amber Hines, and Shauna Marie Brumfield, 40, of Sacramento, Calif., also known as Shauna Snell, each pled guilty in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 20 years in prison and potential financial penalties. The Honorable Senior Judge John D. Bates scheduled Brumfield’s sentencing for Feb. 5, 2019, and Crowder’s sentencing for Feb. 11, 2019.
According to a Statement of Facts agreed to by both defendants as part of their plea, Crowder worked as a program manager in the Office of Special Education (OSE) of the District of Columbia Public Schools (DCPS). In the summer of 2012, Crowder was tasked with identifying and recommending a company to aid in the scheduling of meetings related to individual education plans for special education students. Brumfield and Crowder agreed to work together to obtain the contract.
On Aug. 7, 2012, Brumfield created a company called A Simple Solution to bid on the contract. Brumfield and Crowder were partners in A Simple Solution. Crowder was not identified in any company filings or listed on any communications to DCPS in order to conceal her ownership interest in A Simple Solution. At the time, Brumfield and Crowder were also partners in another company called Education Connection, which provided tutoring services to special education students. Crowder was not identified in any Education Connection company filings or listed on any Education Connection communications to DCPS.
OSE chose A Simple Solution for the administrative assistant contract over several local qualified companies based on written documentation prepared by Crowder and her personal recommendation. In that documentation, Crowder falsely stated that A Simple Solution was an experienced company. Crowder falsely claimed that her contact person for A Simple Solution was “Marie Matthews,” which was an alias used by Brumfield. Crowder did not disclose that she was on the payroll of Education Connection. A Simple Solution bid $298,800 for the contract because Crowder disclosed to Brumfield that the expected budget for the contract was $300,000. Two separate contracts were signed to cover the entire school year. Crowder’s boyfriend signed the first contract as the purported A Simple Solution Chief Financial Officer, while Brumfield’s boyfriend signed the second contract as the purported A Simple Solution branch manager in order to make it appear that A Simple Solution was an established company with multiple employees.
As a result of the fraud, from October 2012 through March 2014, the District of Columbia Public Schools paid approximately $222,000 to A Simple Solution. Brumfield transferred approximately $19,164 of those funds from A Simple Solution’s bank account to Crowder’s personal bank account.
In announcing the pleas, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Inspector General Lucas commended the work of those who investigated the case from the FBI’s Washington Field Office and the District of Columbia Office of the Inspector General. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Diane Lucas, Paralegal Specialists Joshua Fein and Aisha Keys, and former Paralegal Specialists Jessica Mundi and Kristy Penny. Finally, they commended the work of Assistant U.S. Attorneys Anthony Saler and Kondi Kleinman, who investigated and prosecuted the case.
Former California State Assemblyman Indicted for Fraud Scheme Involving BART Coffee ShopsRead the Press Release
OAKLAND – A federal grand jury returned a superseding indictment against defendant Terrence Patrick Goggin with four counts of wire fraud and nine counts of money-laundering, announced United States Attorney Alex G. Tse, Internal Revenue Service Special Agent in Charge Tara Sullivan, and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
Goggin, 76, is a former California State Assemblyman and current California-licensed attorney. According to the superseding indictment unsealed today, Goggin also was the CEO of Metropolitan Coffee & Concessions (MC2) and perpetrated an investment fraud scheme through the company. MC2 owned and operated four Peet’s Coffee & Tea retail centers in Bay Area Rapid Transit (BART) stations and held permits to expand their business to other stations. In 2013, Goggin solicited and obtained money from private equity investors to fund the build-out of two additional retail centers at the Civic Center and Balboa Park BART stations. The indictment alleges that after receiving investor funds, Goggin diverted the money to non-approved business projects in New York City, including a now-closed restaurant called “Preserve 24.” Goggin also used his authority as CEO to direct MC2 employees to transfer the investor money inappropriately. Further, Goggin used investor funds to support his personal spending and transferred thousands of dollars to a girlfriend in Thailand.
Goggin made his initial appearance in federal court in Oakland on November 26, 2018. Goggin is presently out of custody. A bail hearing and appointment of counsel will occur at 9:30 a.m. on December 5, 2018, before the Honorable Kandis Westmore, U.S. Magistrate Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Goggin faces a maximum sentence of 20 years imprisonment, and a fine of $250,000 or twice the gross gain or loss, plus restitution for each violation of 18 U.S.C. § 1343 (wire fraud) and a maximum sentence of 10 years imprisonment, and fine of $250,000 or twice the value of the criminal property involved in the transactions for each violation of 18 U.S.C. § 1957 (money laundering). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Katie Burroughs Medearis is prosecuting the case with the assistance of Jessica Rodriguez Gonzalez. The prosecution is the result of an investigation by the Federal Bureau of Investigation and Internal Revenue Service–Criminal Investigation.
Former Business Partner of U.S. Military Contractor Sentenced to Prison for Bribery Scheme Related to Contracts in Support of Iraq WarRead the Press Release
A former business partner of a U.S. military contractor was sentenced today to 18 months in prison for his role in a years-long scheme to bribe U.S. Army contracting officials stationed at a U.S. military base in Kuwait during the Iraq War.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office’s Criminal Division, Director Frank Robey of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit and Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office made the announcement.
Finbar Charles, 62, a citizen of Saint Lucia most recently residing in Baguio City, Philippines, was sentenced by Chief U.S. District Judge Karon O. Bowdre of the Northern District of Alabama. Chief Judge Bowdre also ordered Charles to forfeit $228,558 in illicit gains. Charles pleaded guilty in July 2018 to one count of bribery of a federal official.
According to admissions made in connection with his guilty plea, Charles was a business partner of a former U.S. military contractor, Terry Hall. As Hall’s business partner, Charles admitted that he facilitated Hall and others in providing millions of dollars in bribes in approximately 2005 to 2007 to various U.S. Army officials in exchange for preferential treatment for Hall’s companies in connection with Department of Defense (DOD) contracts to deliver bottled water and construct security fencing to support U.S. troops stationed in Kuwait and Iraq.
As part of his role in this criminal conspiracy, Charles admitted that he managed bank accounts in Kuwait and the Philippines that he used to receive Department of Defense payments and transfer illegal bribes to various U.S. Army contracting officials, including Majors Eddie Pressley, James Momon, and Chris Murray. All of those individuals, as well as at least 10 other coconspirators, have pleaded guilty or been convicted of crimes relating to this scheme. Charles admitted that he falsified loan and consulting agreements to conceal the true nature of the bribe payments to the Army officers, and that he personally received over $228,000 in illicit gains as a result of his participation.
This case was investigated by the DCIS, the U.S. Army Criminal Investigation Command, the FBI and the Special Inspector General for Iraq Reconstruction. The Criminal Division’s Office of International Affairs provided substantial assistance in this matter. The case was prosecuted by Trial Attorneys Peter N. Halpern and Robert J. Heberle of the Criminal Division’s Public Integrity Section.
District Man Pleads Guilty to Sexually Abusing 12-Year-Old ChildRead the Press Release
WASHINGTON – A 31-year-old man, of Washington, D.C., pled guilty today to sexually abusing his 12-year-old biological daughter, U.S. Attorney Jessie K. Liu announced.
The man, who is not identified here to protect the privacy of the victim, pled guilty in the Superior Court of the District of Columbia to a charge of second-degree child sexual abuse. The plea, which is contingent upon the Court’s approval, calls for an agreed-upon five-year prison term. Following his prison term, the man will be required to register for 10 years as a sex offender and also complete a term of supervised release. The Honorable Danya A. Dayson scheduled sentencing for Feb. 8, 2019.
According to the government’s evidence, on Sept. 15, 2018, the victim was staying with her father at her uncle’s house. The victim was asleep on the bed with her brother. The defendant lay down behind her and sexually assaulted her. The victim “froze” while this was happening and tried to think of words to make it stop. She told the defendant to move, and she got off the bed and grabbed her phone and walked to the bathroom to call her mother. The defendant told her not to call her mother, but she called her and reported the abuse. The victim then called 911.
The defendant was arrested the same day and has been in custody ever since.
In announcing the plea, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department’s Youth and Family Services Division. She also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences, the Children’s Advocacy Center, and Children’s National Medical Center. She acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates Tracey Hawkins, Paralegal Specialist Brenda Williams, and Assistant U.S. Attorney Elana Suttenberg, who investigated and prosecuted the case.
Cuyahoga County Land Bank employee indicted for soliciting and accepting improvements to his property in Cleveland Heights in return for assisting a demolition company get contractsRead the Press Release
A Cuyahoga County Land Bank employee was indicted for soliciting and accepting improvements to his property in Cleveland Heights in return for assisting a demolition company get contracts.
Kenneth Tyson, 48, was indicted on one count of conspiracy to commit bribery and honest services fraud, three counts of honest services wire fraud and one count of bribery.
Tyson worked as property specialist for the Cuyahoga County Land Reutilization Corp., also known as the Cuyahoga County Land Bank. Tyson served as a liaison with East Cleveland on land acquisition, demolition and other projects, according to the indictment.
He vetted prospective demolition contractors seeking to be placed on the Land Bank’s list of qualified contractors and exercised influence over who could compete for Land Bank contracts, according to the indictment.
Residential Commercial Industrial (RCI) Services was a demolition company whose principal place of business was East Cleveland. It was operated by someone identified in the indictment as M.R. A person identified as M.S. served as chief of staff in the city of East Cleveland
Tyson conspired with M.R. and M.S. between 2013 and 2018. Tyson solicited M.R. to provide free contractor and repair services to Tyson’s property at 1210 Castleton Road in Cleveland Heights. In exchange, Tyson assisted and arranged for RCI to be put on the Land Bank’s qualified demolition contractor list and for RCI to be invited to bid on Land Bank demolition jobs, according to the indictment.
In October 2013, M.R. was billed approximately $2,565 for plumbing work done at Tyson’s property. That same month, M.R. paid someone approximately $1,000 to cut down a tree on the property, according to the indictment.
An East Cleveland employee, at the direction of M.S., sent documents and pictures to the Land Bank confirming RCI had previously completed demolition work in East Cleveland. Tyson and others conducted a site visit to RCI on Elderwood Road in East Cleveland, according to the indictment.
RCI was added to the Land Bank’s system as a demolition contractor on Nov. 21, 2013, allowing it to bid on Land Bank contracts. Five days later, the Land Bank invited RCI to bid on jobs at three sets of properties. RCI submitted the lowest bids on those jobs and was awarded the contracts, according to the indictment.
The Land Bank sent RCI three checks between January and March 2014, paying approximately $32,355 for the work, according to the indictment.
Around July 2014, RCI paid approximately $3,200 for concrete work done at Tyson’s property, according to the indictment.
“This defendant used his position to enrich himself with free home repairs when he was supposed to be helping rid our community of blight,” said U.S. Attorney Justin Herdman. “We remain committed to stamping out public corruption in all its forms.”
“The charges disclosed today prove our continuing resolve to root out fraud and corruption in all forms, especially when the programs involved should have been used to help our neediest families,” said HUD-OIG Special Agent in Charge Brad Geary. “It is our continuing core mission to work with our Federal law enforcement partners and the United States Attorney’s Office to protect the integrity of our housing programs and to take strong action against those who seek to personally benefit from taxpayer-funded grants.”
"Competition in federal blight demolition programs is critical to protecting taxpayers, with no room for contract awards involving bribery, as is alleged against this land bank official,” said Special Inspector General for the Troubled Asset Relief Program Christy Goldsmith Romero. “Cuyahoga County Land Bank has taken nearly $60 million from TARP’s Blight Elimination Program to demolish homes and improve local communities. It is critical that these taxpayer funds be used appropriately and for their intended purpose. I thank U.S. Attorney Justin Herdman and his team of prosecutors for standing with SIGTARP in the fight against blight-related crime.”
“Our tax-paying citizens are entitled to decisions based on the best interests of the public, not the best interests of corrupt public officials and bribe-paying contractors,” FBI Special Agent in Charge Stephen D. Anthony said. “The FBI will continue to hold those that violate the public trust accountable in a court of law.”
This case was investigated by the Department of Housing and Urban Development’s Office of Inspector General, The Office of the Special Inspector General for the Troubled Asset Relief Program, the Federal Bureau of Investigation and and the Internal Revenue Service – Criminal Investigations. It is being prosecuted by Assistant U.S. Attorneys Carmen E. Henderson and Chelsea S. Rice.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.Concord Man Pleads Guilty to Drug TraffickingRead the Press Release
CONCORD- Jason Sfara, 44, of Concord, pleaded guilty in federal court to possession of fentanyl, cocaine, and methamphetamine with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, parole officers attempted to conduct a parole inspection of Sfara's apartment in Concord on May 15, 2018, and Sfara fled to the roof of the building. The Concord Police Department responded to provide assistance and arrested Sfara on the roof. Officers ultimately obtained a search warrant for Sfara's apartment and found an array of illegal drugs including 107.8 grams of fentanyl, 32 grams of cocaine, and 20 grams of methamphetamine, along with digital scales and other drug distribution paraphernalia.
Sfara is scheduled to be sentenced on March 4, 2019.
“Fentanyl, cocaine and methamphetamine are lethal substances whose distribution in New Hampshire endangers the general public as well as police officers,” said U.S. Attorney Murray. “Accordingly, we are coordinating our efforts with our law enforcement partners to target dealers and get them off the streets.”
This matter was investigated by the Concord Police Department. The case is being prosecuted by Assistant U.S. Attorney Jarad Hodes.
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Claremore Doctor Guilty of Pill Sharing ConspiraciesRead the Press Release
TULSA, Okla. – A Claremore physician pleaded guilty today in U.S. District Court to leading multiple conspiracies to write fraudulent opioid prescriptions in an effort to support his drug habit.
United States Attorney Trent Shores announced that Dr. Jeremy David Thomas, 42, of Owasso, was convicted of drug conspiracies in five separate federal cases.
Today’s guilty pleas stem from Thomas’ issuance of fraudulent prescriptions for the opioid hydrocodone to multiple co-conspirators who were his patients. His accomplices then filled the prescriptions at area pharmacies and delivered some or all of the hydrocodone tablets to Thomas. As a result of their illegal pill sharing activity, Thomas and his co-conspirators diverted more than 13,740 doses of the drug during a two year period, mainly for the physician’s illegal personal use.
“We need to be more aware today than ever before of the dangers of opioid addiction. The defendant, Dr. Thomas, risked the lives of his patients by performing an estimated 2,500 surgical procedures while under the influence of opioids. Dr. Thomas exploited the special Doctor-patient relationship to feed his addiction. He became a drug dealer hiding behind a medical license,” said U.S. Attorney Trent Shores.
Assistant Special Agent in Charge Richard W. Salter (Oklahoma District) added, “The number of Americans dying each day from opioid overdoses is alarming. There are few, if any, communities that have been spared by this epidemic. The elimination of this drug trafficking organization will absolutely spare lives. While the vast majority of the medical professionals in this country are committed to saving lives, there are a few who are merely drug dealers hiding behind lab coats, and driven by greed. The DEA in Oklahoma, in collaboration with our state, local, and tribal law enforcement partners, will continue to aggressively investigate and prosecute anyone who illegally diverts or traffics opioids in our communities. The success of this case is the direct result of outstanding collaboration among the Rogers County District Attorney’s Office, the Oklahoma Bureau of Narcotics and Dangerous Drugs (OBNDD), the Northern District of Oklahoma U.S. Attorney’s Office, and the DEA Tulsa Resident Office.”
Investigators from the Rogers County District Attorney’s Office played a significant role in investigating the pill sharing conspiracy.
"This case illustrates the far-reaching impact of opioid abuse and its effects across society. I appreciate the work by the United States' Attorney's Office and law enforcement to remove the source of these illegally diverted drugs," said Rogers County District Attorney Matthew J. Ballard.
Also implicated in the drug conspiracies are Jeffrey Lee Koger, 47, of Claremore; Joseph Marcus Jones, 36, of Claremore; Toni Dawn Martin, 49, of Owasso; Shawn Del Martin, 50, of Owasso; and Chad Lee Choat, 46, of Claremore.
U.S. District Judge John E. Dowdell set Thomas’ sentencing for Feb. 28, at 10 a.m. At that time, Thomas faces a maximum penalty of 20 years in prison and a $2 million fine for each count of Drug Conspiracy and Distribution.
Thomas was remanded into the custody of the U.S. Marshals Service.
The Rogers County District Attorney’s Office, the Drug Enforcement Administration, and the Oklahoma Bureau of Narcotics and Dangerous Drugs conducted the investigation. Assistant U.S. Attorney Joel-lyn McCormick prosecuted the case. AUSA McCormick is the Lead Attorney for the Organized Crime Drug Enforcement Task Force Unit for the Northern District of Oklahoma.
This investigation and resulting conviction are part of the Department of Justice and Department of Health and Human Services’ 2018 National Healthcare Fraud and Opioid Takedown initiative, the largest ever healthcare fraud enforcement action. The opioid related enforcement action charged 162 defendants, including 76 doctors, for their roles in illegally prescribing and distributing opioids and other dangerous narcotics.
Painkillers are involved in more than 80% of the prescription drug-related overdose deaths in Oklahoma, and hundreds of Oklahomans die each year due to these overdoses. To find help and resources to fight opioid addiction, visit the following site:
https://findtreatment.samhsa.gov/