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Tuesday 20 November 2018
Springfield Man Pleads Guilty to Federal Drug Charge After Shipping Marijuana in Styrofoam Rocks Out of StateRead the Press Release
EUGENE, Ore.—Curran Millican Manzer, 37, of Springfield, Oregon, pleaded guilty today to a single count of possession with intent to the distribute marijuana after repeatedly shipping marijuana out of state.
“Illegal export continues to plague Oregon’s under regulated and insufficiently enforced state laws governing state-licensed marijuana. The extreme overproduction of marijuana in Oregon has prompted many individuals to seek out-of-state distribution opportunities to recoup the costs of both illegal and legal in-state production. Disrupting these interstate distribution channels remains a priority of our office,” said Billy J. Williams, U.S. Attorney for the District of Oregon.
According to court documents, in September 2017, the Springfield Police Department began an investigation after being contacted by United Parcel Service (UPS) regarding several packages Manzer shipped to Oklahoma City, Oklahoma that had a strong marijuana odor. UPS later confirmed that, in October 2017, Manzer sent several additional packages next day air to Oklahoma City also believed to contain marijuana. During the same time period, several packages containing numerous stacks of cash bound in $1,000 increments were sent to Manzer’s home address in Springfield.
In November 2017, Springfield Police obtained a search warrant for all packages sent or received by Manzer via UPS. Shortly thereafter, an officer was conducting surveillance at a UPS store in Springfield when he saw Manzer arrive in a pickup truck with “Curran’s Taxidermy” written on the side. The officer observed Manzer bringing six packages into the store, which he dropped off for next day shipment to Oklahoma. A Springfield Police canine unit responded to the scene and the canine alerted to the packages.
The Springfield Police officer executed a search warrant on the packages and located six large Styrofoam rocks containing 143 pounds of marijuana.
Manzer faces a maximum sentence of 20 years in prison, a $1 million fine and a three-year term of supervised release. He will be sentenced on February 26, 2019 before U.S. District Court Judge Ann Aiken.
As part of the plea agreement, Manzer agrees to forfeit any criminally-derived proceeds and property used to facilitate his crimes identified by the government prior to sentencing.
This case was investigated by the Springfield Police Department and the U.S. Drug Enforcement Administration (DEA). It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
South Florida Doctor Pleads Guilty to Tax Evasion and Disability FraudRead the Press Release
A South Florida doctor residing in Hobe Sound, Florida, pleaded guilty today to tax evasion, wire fraud, and Social Security disability fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.
According to court documents and information provided to the court, Arthur John Kranz was a doctor specializing in psychiatry. Beginning in 2002, Kranz made a claim on his private disability policy that he was unable to work, and began receiving disability payments from his insurance company. In December 2003, Kranz submitted an application to the Social Security Administration (SSA) for disability benefits, which was later approved. Kranz then began receiving SSA disability payments in addition to the private disability insurance payments. Kranz was required to notify his insurance company and the SSA if he returned to work.
From January 2006 to March 2013, Kranz worked as a psychiatrist at a hospital in Pennsylvania and earned over $1.6 million in income. Kranz did not report his employment to either the SSA or his insurance company. Rather, in order to continue collecting disability benefits, Kranz took steps to conceal his income from the insurance company, the SSA, and the Internal Revenue Service (IRS). He directed that his income be paid to nominee individuals and corporations. Kranz also filed false personal tax returns that did not report the income from his work as a psychiatrist.
Kranz also submitted fraudulent documentation to his insurance company that falsely stated that he was not working.
Sentencing is scheduled for February 6, 2019. Kranz faces a maximum sentence of five years in prison for tax evasion, 20 years in prison for wire fraud, and five years in prison for Social Security fraud. Kranz also faces a period of supervised release, restitution of $451,026 to SSA, $341,032 to his insurance company, and an amount to the IRS to be determined by the court, as well as monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation and the SSA Office of Inspector General, who conducted the investigation, and Trial Attorneys Charles M. Edgar, Jr., Michael C. Boteler, and Terri-Lei O’Malley of the Tax Division, who are prosecuting the case with assistance from the U.S. Attorney’s Office for the Southern District of Florida.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
South Bend Man Sentenced to 60 Months in PrisonRead the Press Release
SOUTH BEND – Kevin Pope, 32 years old, of South Bend, IN, was sentenced by U.S. District Court Judge Robert Miller, Jr., after pleading guilty to possessing heroin with the intent to distribute, announced U.S. Attorney Kirsch.
Pope was sentenced to 60 months imprisonment and 4 years supervised release when released from prison.
According to documents in the case, on or about April 5, 2017, Pope was in possession with intent to distribute over 100 grams of heroin.
This case was investigated by the ATF with the assistance of the South Bend Police Department. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
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Sexual predator from Williams County sentenced to nearly two years in prison after traveling to Asia without permission and failing to register as a sex offenderRead the Press Release
A sexual predator from Williams County was sentenced to nearly two years in prison after traveling to Asia without permission and failing to register as a sex offender.
Mark Timothy Schafer, 49, of Bryan, was sentenced to 21 months in federal prison after previously pleading guilty to one count of failing to register as a sex offender and one count of failure to notify of international travel.
“This defendant ignored the law when he failed to register as a sex offender and traveled abroad to teach children,” U.S. Attorney Justin Herdman said. “Our community is safer with this man behind bars.”
Schafer was convicted of gross sexual imposition in 2004 in the Defiance County Court of Common Pleas. He was classified as a Tier III sex offender – meaning he had to register his address every 90 days – because his crime involved a victim under the age of 13, according to court documents.
Schafer registered as a sex offender following his release from state prison. He updated his registration, which changes to employment and address, multiple times in 2017, most recently with the Williams County Sheriff’s Office.
In 2017, Schafer applied for a U.S. passport, but failed to notify the Williams County Sheriff’s Office that he planned to travel abroad. Schafer applied for a Chinese visa and for a job to teach English in Shenyang, China. Schafer arrived in China on Nov. 21, 2017 and taught English to children there.
His employment was terminated in China in January 2018 and he returned to the U.S. via Detroit, according to court documents.
This case was investigated by the U.S. Marshal’s Service, Department of State, Customs and Border Protection and Department of Homeland Security. It was prosecuted by Assistant U.S. Attorneys Alissa K. Sterling and Jody L. King.
Serial Robbers Sentenced to PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN – Shaun Michael Cook, 31, of Lansing, Michigan, was sentenced to 102 months in federal prison for his role in a series of Lansing area robberies, U.S. Attorney Andrew Birge announced today. Cook and his codefendants, Donald Charles Westmoreland and Shackeem Louis Jones, committed a series of armed robberies of various businesses in the Lansing metropolitan area from November 2016 through May 2017. Cook, Jones and Westmoreland each pleaded guilty earlier this year to interference with commerce by robbery and brandishing a firearm. United States District Judge Janet T. Neff, who sentenced Cook, sentenced Westmoreland to 87 months in prison and Jones to 96 months. She ordered Cook to pay $2,139.21 in restitution and Jones and Westmoreland to pay $4,739.21.
"Reducing violent crime rates is a priority for this office as well as the Department of Justice," said U.S. Attorney Andrew Birge. "Repeated violent behavior involving firearms will be met with increased law enforcement attention, swift justice, and severe punishment."
During most of these robberies, two of the men would enter a business, point a gun at the employees and customers, demand money, and order everyone to the ground. During some of the robberies, the men destroyed the businesses’ telephones or stole cell phones from employees in order to prevent calls for help. At sentencing, Judge Neff attributed the following robberies to this group (all occurred in the Lansing area unless otherwise indicated):
• November 16, 2016: Cook and Jones robbed a Subway restaurant on Saginaw Highway;
• December 18, 2016: Cook, Jones, and Westmoreland robbed a Subway restaurant on Larch Street;
• December 24, 2016: Cook and Jones robbed a Subway restaurant on Grand River Avenue;
• December 27, 2016: Cook, Jones, and Westmoreland robbed a Beauty Max beauty supply store on West Saginaw Highway;
• December 27, 2016: Cook, Jones, and Westmoreland robbed a Citgo Gas Station near Wildwood Avenue in the Jackson, Michigan area;
• December 28, 2016: Cook, Jones, and Westmoreland robbed a Subway on East Saginaw Highway;
• December 29, 2016: Jones and Westmoreland robbed a Biggby coffee shop on Elmwood Road;
• January 10, 2017: Jones and Westmoreland robbed a Subway on East Lake Lansing Road;
• January 23, 2018: Jones and Westmoreland robbed a Family Dollar store on South Pennsylvania Avenue;
• March 13, 2017: Jones and Westmoreland robbed an Admiral gas station on West Saginaw Highway;
• March 15, 2017: Jones and Westmoreland robbed a Quality Dairy convenience store on Waverly Road;
• March 27, 2017: Jones and Westmoreland robbed a Little Caesars pizzeria on East Grand River;
• April 27, 2017: Jones robbed a Jimmy John’s restaurant on East Grand River Avenue; and
• May 1, 2017: Jones robbed a Little Caesar’s pizzeria on East Grand River Avenue.
The case was investigated by the Federal Bureau of Investigation, with assistance from the Eaton County Sheriff’s Office, the Lansing Police Department, the Lansing Township Police Department, the Meridian Township Police Department, and the Michigan State Police. Assistant U.S. Attorney Alexis M. Sanford handled the prosecution.
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Schools Maintenance Worker Admits Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – An Cape May County, New Jersey, man today admitted defrauding New Jersey state health benefits programs and other insurers out of more than $4 million by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito announced.
James Wildman, 44, of Marmora, New Jersey, a former maintenance worker for the Ocean County school system, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
From January 2015 through February 2016, Wildman served as a recruiter in the conspiracy and persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, identified in the information as the “Compounding Pharmacy.” The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.
The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications. An entity referred to in the information as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey for the amounts paid.
Wildman and conspirators working under him recruited public employees covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from the Compounding Pharmacy without any evaluation by a medical professional that they were medically necessary. Wildman secured insurance information from the individuals and passed it along to a conspirator, who had a doctor sign prescriptions without examining the individuals. The prescriptions were faxed to the Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.
The pharmacy then paid one of Wildman’s conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to Wildman and other members of the conspiracy. Wildman paid individuals cash to reward them for obtaining prescriptions. Wildman himself received compounded medications he did not need in order to financially benefit a conspirator.
The Pharmacy Benefits Administrator paid the Compounding Pharmacy more than $50 million for compounded medications mailed to individuals in New Jersey, including $4,879,776 for prescriptions submitted by Wildman and his cohorts. Wildman received $657,040 for his role in the scheme.
Wildman faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Feb. 25, 2019. As part of his plea agreement, Wildman must forfeit $657,040 in criminal proceeds and pay restitution of at least $4,879,776.
U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Greg W. Ehrie in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark; and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s guilty plea. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Jacqueline M. Carle of the U.S. Attorney’s Office in Camden.
Defense counsel: Mark E. Roddy Esq., Pleasantville, New Jersey
Schenectady Man Sentenced to 180 Months for Distributing Crack CocaineRead the Press Release
ALBANY, NEW YORK – William L. Hale, a/k/a “Man,” age 44, of Schenectady, New York, was sentenced today to 180 months for distributing crack cocaine.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Senior United States District Judge Gary L. Sharpe also imposed a 15-year term of supervised release, to begin after Hale is released from prison.
As part of his guilty plea, Hale admitted that he distributed more than 28 grams of cocaine base (a/k/a crack cocaine) on November 18, 2016. This is Hale’s fifth drug felony conviction.
This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including the Schenectady Police Department. This case was prosecuted by Assistant U.S. Attorney Michael Barnett.
Salvadoran National Pleads Guilty to Failure to Register as a Sex OffenderRead the Press Release
BOSTON - A Salvadoran national pleaded guilty today in federal court in Boston to failure to register as a sex offender as required under the Sex Offender Registration and Notification Act (SORNA).
Melvin Velasquez, 34, pleaded guilty to one count of failure to register as a sex offender. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Feb. 28, 2019. Velasquez was charged by complaint in August 2018 and has been in custody since.
In 2007, Velasquez was convicted in New York of one count of rape in the third degree and sentenced to eight months in jail. Velasquez was subsequently required to register as a sex offender in any jurisdiction where he resided or worked. Velasquez, who was determined to be illegally present in the United States, was sentenced on the rape charge, and, upon completion of his sentence in 2008, deported to El Salvador.
Sometime thereafter, Velasquez returned to the United States and assumed a false identity. In May 2018, Velasquez, using his alias, was arrested and charged with various motor vehicle violations. Velasquez’s fingerprints were obtained and found to match the prints in his A-file and from his 2007 New York rape conviction. Law enforcement then queried the Massachusetts Sex Offender Registry Board and determined that Velasquez had not registered, as required by law, in Massachusetts.
The charge of failure to register provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000 fine. Velasquez will be subject to deportation proceedings. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; United States Marshal John Gibbons of the District of Massachusetts; and Todd M. Lyons, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
Rochester Man Pleads Guilty to Smuggling Counterfeit Cialis and Viagra into the United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Samuel McFarland, 55, of Rochester, NY, pleaded guilty to two counts of smuggling goods into the United States before U.S. District Judge David G. Larimer. The charges each carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Sean C. Eldridge, who is handling the case, stated that on April 10, 2017, Customs and Border Protection officers at the John F. Kennedy International Airport intercepted a package coming from Hong Kong that was addressed to the defendant. The package contained 3,012 counterfeit Viagra pills and 190 counterfeit Cialis pills. The pills were determined to be counterfeit.
On January 8, 2018, CBP officers at the Rochester International Airport intercepted a package coming from China that was also addressed to McFarland’s residence. That package contained 100 bottles which included 30 counterfeit Cialis pills in each. The manifest for the package of 3000 counterfeit pills falsely listed the contents as “free trade sample” and claimed the package contained 50 plastic bottles valued at $1.00 each.
On January 25, 2018, Homeland Security Investigations conducted a controlled delivery at the defendant’s residence of the package intercepted on January 8, 2018. McFarland answered the door and signed for the package. Federal agents then approached the house and executed a federal search warrant. During the search, agents recovered the package, as well McFarland’s cellular phone.
The defendant admitted to agents that he ordered both the April 2017 package and the January 2018 package, knowing that they contained counterfeit pills. An analysis of McFarland’s cellular phone revealed several searches for “fake Viagra,” related searches for pictures of real and counterfeit Viagra pills, searches for terms such as “package us customs detainment,” and photos that were cached from websites including “how to get Viagra for $1.”
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy; and the Food and Drug Administration, Office of Criminal Investigations, under the direction of Special Agent-in-Charge Jeffrey Ebersole, New York Field Office.
Sentencing is scheduled for May 23, 2019, at 10:00 a.m. before Judge Larimer.
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Robbery Getaway Driver Sentenced to 4 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANTHONY VITO, 28, formerly of Stoughton, Massachusetts, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 48 months of imprisonment, followed by four years of supervised release, for serving as the getaway driver for an armed bank robbery and two commercial robberies in December 2017.
According to court documents and statements made in court, on December 8, 2017, Vito drove Anthony Provost to the Mobil Gas Station and Dunkin Donuts located at 750 Straits Turnpike in Middlebury. Provost first threatened the cashier at the Mobil station with what appeared to be a firearm, and instructed her to open the cash register and provide her with all of its contents. The cashier complied and provided him with $578. The cashier also complied with Provost’s demand that she give him cigarettes valued at approximately $131. Provost then went to the cashier at the Dunkin Donuts, lifted his shirt to display what appeared to be a firearm and demanded money. During the robbery, when a customer entered the premises, Provost pointed the firearm at her and told her to keep her hands out of her pocketbook. The cashier gave Provost approximately $350. Provost then fled the premises in the vehicle driven by Vito.
Vito then drove Provost to the Thomaston Savings Bank located at 508 South Main Street in Thomaston. At the bank, Provost handed the teller a note stating “Robbery 20’s, 50’s, 100’s, quiet.” Provost also displayed what appeared to be a firearm. After the teller gave him money, Provost told her to get money from the other teller. The teller complied, and Provost left the bank with $1,471. Provost and Vito then fled the scene.
On December 9, 2017, Provost was arrested by Waterbury Police officers in a motel room that was occupied by Vito and another individual. At the scene, officers recovered a silver and beige handled CO-2 powered BB gun, a black ski mask, a gray ski mask, $542 in cash, and multiple packs of cigarettes. Officers also seized a red Ford Explorer that had been used during several of the robberies. Vito was arrested shortly thereafter.
Provost and Vito have been detained since their arrests.
On June 8, 2018, Vito pleaded guilty to one count of aiding and abetting an armed bank robbery.
On April 26, 2018, Provost pleaded guilty to one count of armed bank robbery and admitted that he committed these robberies and several others in Connecticut, Massachusetts and New Hampshire late last year. On July 19, 2018, he was sentenced to 96 months of imprisonment.
This investigation was conducted by the Federal Bureau of Investigation and the Waterbury, Southington, Thomaston, Putnam, Avon, Middlebury, Shrewsbury (Mass.) and Nashua (N.H.) Police Departments. This case was prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
Raleigh Man Sentenced to 48 Months for Firearm OffenseRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, LYCURTIS QUAMAE LEON THOMPSON, 25, of Raleigh, was sentenced by United States District Judge James C. Dever, III for felon in possession of a firearm. Judge Dever sentenced THOMPSON to 48 months’ imprisonment followed by 3 years of supervised release.
THOMPSON was charged in a one-count Indictment on June 6, 2018, and pleaded guilty on August 23, 2018, to felon in possession of a firearm.
On December 28, 2017, officers of the Raleigh Police Department conducted a traffic stop on a vehicle that THOMPSON was driving. After observing THOMPSON making quick movements in the vehicle, officers searched him and found a loaded magazine, a digital scale, and money. Inside the vehicle’s glove box officers found a .45 caliber handgun and a jar containing marijuana and cocaine.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
Raleigh Man Sentenced for Firearm OffenseRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, WOODIE LAMONT HERRING, 47, of Raleigh, was sentenced by United States District Judge James C. Dever, III for felon in possession of a firearm. Judge Dever sentenced HERRING to 120 months imprisonment followed by 3 years of supervised release.
HERRING was charged in a two-count Superseding Indictment on April 19, 2018, and pleaded guilty on July 23, 2018, to felon in possession of a firearm.
On November 20, 2017, officers of the Raleigh Police Department (RPD) conducted a traffic stop on a vehicle that HERRING was driving. A firearm sat on the passenger’s seat. HERRING initially reached for the gun; however, after officers told him to move away from the gun, HERRING complied. HERRING later was released on bond on state charges, and federal charges were then filed against him.
On April 20, 2018, RPD officers again conducted a traffic stop on a vehicle that HERRING was driving. During the stop, officers learned that HERRING had an active federal warrant and attempted to arrest HERRING. HERRING fled. Officers caught up to HERRING, who resisted arrest, fought with officers, and tried to pull a firearm out of his waistband. HERRING ignored repeated commands to stop resisting, and eventually it took numerous officers to arrest HERRING.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and is targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
Raleigh Man Convicted of Federal Drug and Firearms Charges Sentenced to 20 Years in PrisonRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, United States District Judge James C. Dever III sentenced ANDREW HARGETT, JR. 46, to 240 months imprisonment followed by 8 years of supervised release. HARGETT was also fined $10,000.00. HARGETT was convicted by a federal jury on August 22, 2018 of possession with the intent to distribute 500 grams or more of cocaine, possession with the intent to distribute cocaine and crack cocaine, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm.
The evidence presented at trial established that HARGETT regularly traveled to Atlanta, Georgia to obtain kilogram quantities of cocaine and transported the drugs back to Raleigh, North Carolina in rental vehicles for distribution. The investigation resulted in the seizure of over 2 ½ kilograms of cocaine, crack cocaine, $142,000.00, and a firearm that were recovered from his residence, two vehicles, and two storage lockers. This prosecution resulted in helping to choke the supply line of cocaine into the Metropolitan Raleigh area.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The case was investigated by the Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Nash County Sheriff’s Office, Wilson Police Department, Raleigh Police Department, and the Rocky Mount Police Department. Assistant United States Attorney James Kurosad prosecuted the case on behalf of the United States.
Previously Convicted Sex Offender from Albuquerque Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Christopher Raymond Lopez, 53, of Albuquerque, N.M., a previously convicted sex offender, pleaded guilty this morning in federal court to an indictment charging him with possessing child pornography. Lopez entered the guilty plea without the benefit of a plea agreement.
Homeland Security Investigations and the Albuquerque Police Department arrested Lopez on Feb. 22, 2018, on the three-count indictment, which was filed on Feb. 14, 2018, and charged him with possessing visual depictions of minors engaged in sexually explicit conduct on a hard drive, a computer and a thumb drive. According to the indictment, Lopez committed the crimes on June 29, 2016, in Bernalillo County, N.M.
Lopez remains in custody pending a sentencing hearing which has yet to be scheduled. At sentencing, Lopez faces a statutory maximum penalty of 20 years in federal prison. Lopez will also be required to register as a sex offender because of his felony convictions.
This case was investigated by Homeland Security Investigations and the Albuquerque Police Department. The case is being prosecuted by Assistant U.S. Attorney Shaheen P. Torgoley as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, 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 http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Postal Employee Pleads Guilty to Stealing MailRead 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 Thomas Cyphert, 65, of Angola, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to theft of mail matter by a postal employee. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Douglas A. Penrose, who is handling the case, stated that on October 10, 2018, personnel at the Hamburg, NY Post Office observed what appeared to be undelivered mail in the personal vehicle of the defendant, who was employed as a postal carrier at the time. Investigators subsequently recovered 14 tubs of undelivered mail, including First Class mail, standard letter mail, and non-profit/bulk mail from the Cyphert’s vehicle. A subsequent search of the defendant’s home resulted in the recovery of an additional 27 tubs of undelivered mail. In total, investigators recovered over 1,500 pieces of First Class mail.
The plea is the result of an investigation by Special Agents of the United States Postal Service, Office of Inspector General, under the direction of Special Agent-in-Charge Kenneth Cleevely; Town of Evans Police Department Chief Douglas Czora; and Special Agents from Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for March 11, 2019, at 12:30 p.m. before Judge Arcara.
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Portland Man Pleads Guilty to Federal Bribery Charge for Attempting to Bribe ICE Deportation OfficerRead the Press Release
PORTLAND, Ore. – Antonio Oswaldo Burgos, 48, of Portland, pleaded guilty today to one count of bribery of a public official after attempting to bribe a U.S. Immigration and Customs Enforcement (ICE) deportation officer.
“Attempting to bribe a federal law enforcement officer is a serious crime and will be met with equally-serious consequences,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “I commend the ICE officer involved in this case for responding to Burgos’ criminal proposition with the utmost level of professionalism and resolve.”
“We rely upon our officers to perform their duties with integrity,” said Brad Bench, Special Agent in Charge for HSI Seattle. “Because of the deportation officer’s actions, Burgos is being brought to justice. This case should send a strong message that those who attempt to coerce a public official will be punished.”
According to court documents, on May 24, 2018, Burgos followed an ICE deportation officer in his vehicle from the ICE office in Portland until the officer stopped in a parking lot in Vancouver, Washington. The defendant offered the officer money to deport his wife who he had met in El Salvador and was in the process of divorcing. The officer declined Burgos’ offer and reported the event to the ICE Office of Professional Responsibility (OPR).
On May 31, 2018, the officer made a recorded call to Burgos with the assistance of an OPR investigation team. Burgos offered to the pay the officer $3,000 to remove his wife from the U.S. On June 5, 2018, the officer and OPR team made a second recorded call on which Burgos again offered to pay the officer for his wife’s removal. Burgos and the officer proceeded to discuss logistics for an in-person meeting.
On June 6, 2018, Burgos met the officer in a pre-determined location and offered to pay $4,000 for the removal of his wife and his wife’s minor child from a previous relationship. Burgos was arrested on June 29, 2018.
Burgos faces a maximum sentence of 15 years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on May 6, 2019 before U.S. District Court Judge Michael H. Simon.
This case was jointly investigated by ICE OPR and Homeland Security Investigations. It is being prosecuted by Rachel K. Sowray and Claire M. Fay, Assistant U.S. Attorneys for the District of Oregon.
Orleans Investment Adviser Pleads Guilty to Multi-Million Dollar Fraud and Identity TheftRead the Press Release
BOSTON – An Orleans investment adviser pleaded guilty yesterday in federal court in Boston to defrauding her clients of more than $3 million and using those funds for her own expenses.
Kimberly Kitts, 51, pleaded guilty to an Information charging her with one count of investment adviser fraud, four counts of wire fraud and one count of aggravated identity theft. U.S. District Court Judge Denise J. Casper scheduled sentencing for March 20, 2019.
Beginning in 2011, Kitts engaged in various schemes to misappropriate her clients’ assets in order to pay her personal expenses. In one scheme, she directed client assets to a bank account for Marquis Consulting, an entity she controlled. In another scheme, Kitts used her position as an investment adviser to divert her clients’ funds to her own account and then took the funds for her own personal use. This included cashing her clients’ annuities, transferring funds out of her clients’ brokerage accounts and directing distributions from her clients’ Individual Retirement Accounts. In total, Kitts misappropriated approximately $3,085,939 from her clients.
The charge of investment adviser fraud provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $10,000. The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of aggravated identity theft provides for a mandatory consecutive term of two years in prison, which must be served consecutive to any other sentence imposed by the court. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and 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 provided valuable assistance with the investigation. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities and Financial Fraud Unit is prosecuting the case.
Orient Man Sentenced for Federal Crop Insurance FraudRead the Press Release
DES MOINES, IA – On November 16, 2018, Carl Jeffrey Campbell, age 71, of Orient, Iowa, was sentenced by United States District Court Chief Judge John A. Jarvey to three years of supervised release, with four months of home confinement for making a false statement in connection with federal crop insurance, announced United States Attorney Marc Krickbaum. Campbell was ordered to pay a $5,000 fine, $100 to the Crime Victims’ Fund, and $32,440 to the United States Department of Agriculture (“USDA”) as restitution. Campbell was also ordered to serve 160 hours of community service.
Campbell pleaded guilty to the offense on July 6, 2018. In 2014, Campbell obtained crop insurance for two farms from an insurance company that was insured by the Federal Crop Insurance Corporation. The Federal Reinsured Crop Program is administered by the Risk Management Agency, which is an agency of the United States Department of Agriculture, and the Federal Crop Insurance Corporation, which is a wholly-owned government corporation. The Federal Crop Insurance Corporation reimburses insurance companies for the indemnity payments made to policyholders under the Federal Reinsured Crop Program.
Crop shifting occurs when a farmer underreports production in a field in order to reach the percentage of loss required to receive an indemnity from their crop insurance policy. Campbell “shifted” production from one farm to another by reporting that several
thousand bushels of grain were harvested from one farm when he knew that those bushels were in fact harvested from the other farm. By reporting the bushels of grain from the incorrect farm, or shifting the production, Defendant received insurance indemnities to which he was not entitled. Defendant also “hid” production by not reporting to the USDA or Federal Crop Insurance Corporation several thousand bushels of corn sold in his son’s name. By failing to report the bushels of grain sold in his son’s name, Defendant received insurance indemnities to which he was not entitled.This matter was investigated by the United States Department of Agriculture Office of Inspector General. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Orchard Park Man Sentenced for Assaulting A Woman During an American Airlines FlightRead 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 Michael Hildebrand, 50, of Orchard Park, NY, who was convicted of assault within the special aircraft jurisdiction of the United States, was sentenced to one year probation by U.S. Magistrate Judge Michael J. Roemer.
Assistant U.S. Attorney Jonathan P. Cantil, who handled the case, stated that on December 20, 2017, the defendant was a passenger on a United Airlines flight from Newark, NJ to Buffalo, NY. During the flight, Hildebrand assaulted a woman by grabbing the victim’s groin area without consent.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast.
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Newberry Man Pleads Guilty to Federal Firearm Charge Stemming from Vista ShootingRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Maleik Houseal, 23, of Newberry, South Carolina, pled guilty in federal court to being a felon in possession of a firearm in relation to a September 2017 Columbia shooting.
Evidence presented in court established that at approximately 2:12 am on September 16, 2017, a shooting between a group of individuals from Newberry occurred outside the Empire Supper Club in the Vista entertainment district of Columbia. It was a college football weekend and the Vista area was full of people. All total, eight individuals, including Houseal, were shot.
The investigation showed that when the club closed at 2:00 am, as people spilled out onto the sidewalks, Houseal went to the parking lot and retrieved a firearm from a car. Houseal returned to the sidewalk area outside of the club, where he remained. As another group of individuals from Newberry left the club parking lot, they fired weapons from their cars in Houseal’s direction, striking Houseal and others. Houseal fired back and ran after the cars, firing his weapon. He then discarded his 9mm handgun in a pile of chairs outside the club, where authorities later recovered it.
Houseal and the other individuals in the vehicles were all charged with various state charges stemming from the incident. Those state charges remain pending, and they are considered innocent unless and until proven guilty.
Federal law prohibits Houseal from possessing firearms and ammunition based upon his prior state convictions. Houseal has the following prior convictions: burglary 2nd degree, carrying a firearm in a public building/adjacent area, carrying an unlawful weapon (two separate convictions), burglary 3rd degree, obstruction of justice, and possession with intent to distribute marijuana. At the time of the September 2017 shooting, Houseal was both on state probation and on state bonds for incidents that occurred after his release from the South Carolina Department of Corrections in May 2017.
Houseal faces a maximum sentence of 10 years in federal prison, a fine of $250,000, and 3 years of supervised release. United States District Judge Mary Geiger Lewis of Columbia accepted the guilty plea and will impose sentence after she has received and reviewed a presentence report prepared by the United States Probation Office.
The case was investigated by the Federal Bureau of Investigation (FBI), the Columbia Police Department, and the Richland County Sheriff’s Department and was prosecuted as part of Project CeaseFire, a joint federal, state, and local initiative focused upon aggressively prosecuting firearm cases in an effort to reduce violent crime and make our neighborhoods safer. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), a crime reduction strategy originally launched in 2001 that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Turning the tide of rising violent crime in America is a top priority for the Department of Justice, which has reinstituted PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy. Assistant United States Attorney Stacey D. Haynes of the Columbia office is prosecuting the case.
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Newark Man Sentenced to 7 Years in Prison for Heroin TraffickingRead the Press Release
PITTSBURGH, Pa. – A former New Jersey resident has been sentenced in federal court to a term of imprisonment of seven years, to be followed by five years of supervised release on his conviction on charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence yesterday on Shawn Robinson, 36, formerly of Newark, NJ.
According to information presented to the court, on October 14, 2015, one of Robinson’s co-conspirators made arrangements to sell 100 bricks of heroin for $14,500 to another individual. Robinson’s co-conspirator also agreed to advance an additional 50 bricks of heroin. Robinson and another of his co-conspirators arrived at the Hyatt Place in Robinson Township to deliver the heroin. When they arrived, Robinson was carrying a black plastic shopping bag. Inside of the shopping bag, officers recovered a clear plastic vacuum-sealed bag containing 150 bricks of heroin, weighing 185.92 grams.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Robinson.
New York Man Pleads Guilty to Heroin, Fentanyl and Crack Trafficking ConspiracyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Frankie Dejesus, 28, of Rochester, New York, pled guilty in U.S. District Court to conspiracy to distribute heroin, fentanyl and cocaine base, commonly known as “crack.”
According to court records, between June 2015 and March 2017, Dejesus conspired with others to acquire heroin, fentanyl and crack in Rochester and to distribute it in Central Maine. The defendant was sent to Central Maine to distribute the drugs while residing with several Central Maine residents who were paid in heroin and crack for their participation.
The defendant faces up to 20 years in prison, a $1,000,000 fine, and between three years and life on supervised release.
The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta Police Department. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
New Madrid County Man and Farm Indicted on Illegally Applying Dicamba on CropsRead the Press Release
Cape Girardeau – Bobby David Lowrey, 51, of Parma, MO, and Lowrey & Lowrey Inc. were indicted on November 13, 2018 for illegally applying Dicamba to crops.
According to the indictment, Bobby David Lowrey owned and operated Lowrey Farms. In the calendar year 2016, Lowrey Farms, under the management of Bobby David Lowrey, engaged in the cultivation of cotton and soybean crops on approximately 6,700 acres over numerous fields and plots located in the Eastern District of Missouri. The soybean and cotton crops planted on Lowrey Farms in 2016 were genetically modified to be resistant to the pesticide dicamba. Dicamba is a broadleaf herbicide used to kill unwanted weeds. The dicamba-based pesticide product was not approved for post-planting application to cotton crops and had limitations on its soybean application.
On multiple occasions in 2016, under the direction of Bobby David Lowrey, dicamba-based pesticides were applied at Lowrey Farms post-planting to cotton and to non-mature soybean crops prior to the approved preharvest application interval. Multiple farmers with crops growing in the vicinity of soybean and cotton fields or plots cultivated by Lowrey Farms reported damage to their crops in May and June of 2016 consistent with drift from the use of dicamba-based pesticides applied on Lowrey Farms. In response to numerous reports of crop damage in the vicinity of Lowrey Farms, Missouri Department of Agriculture responded to the area in late June 2016. Investigators with MDA requested to meet with Bobby David Lowrey and asked Lowrey Farms to provide current spray application records for cotton and soybean crops.
On several dates in 2016, Bobby David Lowrey made false statements to investigators and provided fraudulent documentation to investigators certifying that dicamba-based products had only been applied during burndown applications. In truth, Bobby David Lowrey knew he had provided altered documents to investigators to hide the fact that dicamba-based products had been used at Lowrey Farms outside of the application guidelines.
If convicted, Bobby David Lowrey faces up to 20 years’ imprisonment and a fine up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. The Indictment alleges forty-nine instances of misapplication of a pesticide, a false statement and three acts of obstruction of justice.
“Although weed killers like Dicamba have been around for decades, it is critical that applicators follow manufacturer instructions when applying them,” said EPA Special Agent in Charge Jeffrey Martinez. “The misuse of this product has resulted in significant crop damage at neighboring farms. Yesterday’s indictment shows that EPA and its law enforcement partners will do what it takes to ensure the safe and legal use of herbicides.”
The case was investigated by the U.S. Environmental Protection Agency, Criminal Investigation Division, the Missouri Department of Natural Resources and the Missouri Department of Agricultural. Assistant U.S. Attorney Dianna Collins is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
New Haven Man Sentenced to More Than 9 Years in Federal Prison for Robbery and Gun OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that SHAQUILLE RICHARDSON, 25, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 117 months of imprisonment, followed by five years of supervised release, for robbery and firearm offenses.
According to court documents and statements made in court, on June 30, 2016, at approximately 1:41 a.m., New Haven Police officers were dispatched to Ferry Street after a report that a person had been shot. At the scene, officers found two victims. One victim had been shot in the left elbow and was bleeding heavily, and the other victim was bleeding from the nose.
The investigation, which has included witness interviews, DNA evidence, ballistics evidence and footage from a surveillance video, revealed that Richardson and Thomas Johnson attacked the two victims after they exited a convenience store in an attempt to steal marijuana and money from the victims. Johnson shot one of the victims in his elbow and Richardson struck the other victim in the face with a gun.
Officers apprehended Richardson near the scene of the robbery. When Richardson was found, he was bleeding from a gash to his hand where one of the victims had slashed him with a knife in self-defense. Johnson was arrested on July 28, 2016, during a motor vehicle stop. At the time of his arrest, Johnson possessed the firearm he used during the robbery.
Richardson has been detained since his arrest. On January 31, 2018, he pleaded guilty to one count of Hobbs Act Robbery and one count of carrying a firearm in furtherance of a crime of violence.
Johnson, of New Haven, pleaded guilty to related charges on April 4, 2018. On October 11, 2018, he was sentenced to 156 months of imprisonment.
This matter was investigated by the New Haven Police Department and the Bureau of Alcohol, Firearms, Tobacco and Explosives. The case was prosecuted by Assistant U.S. Attorneys Peter D. Markle and Jocelyn Courtney Kaoutzanis.
Monmouth County, New Jersey, Investment Adviser Sentenced to 102 Months in Prison for Investment Fraud Scheme, Aggravated Identity Theft, and Preparing Phony Tax ReturnsRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 102 months in prison for perpetrating a long-running scheme to defraud investment clients out of millions of dollars, forging an attorney’s signature without authorization in connection with that scheme, and preparing false tax returns for his clients, U.S. Attorney Craig Carpenito announced.
Scott Newsholme, 43, Farmingdale, New Jersey previously pleaded guilty before U.S. District Judge Anne E. Thompson to a three-count information charging him with wire fraud, aggravated identity theft, and preparing fraudulent tax returns. Judge Thompson imposed the sentence today in Trenton federal court.
In September 2017, Newsholme was charged by criminal complaint with mail fraud, wire fraud, and securities fraud, and was released on bail. In October 2017, after law enforcement discovered that Newsholme continued his fraudulent scheme while out on bail, he was charged in an amended criminal complaint with mail fraud, wire fraud, securities fraud, and aggravated identity theft. Newsholme’s bail was revoked and he was detained pending trial.
According to documents filed in this case and statements made in court:
Since 2002, Newsholme owned and operated at least three different financial advisory and tax return preparation businesses. Between 2007 and 2017, Newsholme recommended to multiple clients that they invest their money with him, which he would use on their behalf to invest in various securities and other investments, including bond instruments issued by a private New Jersey country club, a bond investment in a video-game production company, and investments in the production of a movie.
Newsholme also represented to clients for whom he would invest their money in more traditional securities, including mutual funds, annuities, life insurance policies, college education accounts, money market funds, and an escrow account for the purchase of a house. Newsholme directed his investment clients to write checks to him or one of his companies so that he could execute the investments on their behalf.
Rather than invest the money as he represented, Newsome cashed or deposited the checks and used the funds for personal expenses, including multiple vehicles, bedroom furniture, debits at casinos, bank transfers to Newsholme’s personal bank accounts, and ATM withdrawals.
Newsholme concealed his scheme by diverting incoming investment funds to pay other clients who had requested to withdraw funds from their investment portfolios. Newsholme also provided his clients phony account statements, security instruments, and other documentation that falsely represented to the clients the status of their investments.
In October 2017, Newsholme provided a letter to one of his investment clients from whom he had misappropriated approximately $62,000. The letter, which Newsholme represented had been prepared by an attorney, stated that the client’s funds were held safely in an escrow account established by the attorney. However, Newsholme fabricated the letter and forged the attorney’s signature without the attorney’s authorization in order to conceal his misappropriation of the funds.
Newsholme misappropriated more than $3.1 million from his investment clients, resulting in net investment losses of more than $1.8 million.
In addition to the wire fraud and aggravated identity theft charges, Newsholme also admitted preparing fraudulent tax returns on behalf of his clients. The fraudulent returns that Newsholme prepared claimed inflated deductions for unreimbursed employee business expenses, charitable donations, and medical expenses to which his clients were not entitled.
In addition to the prison term, Judge Thompson sentenced Newsholme to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Red Bank Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation. He also thanked the SEC’s New York Regional Office, under the direction of Director Mark P. Berger, and the N.J. Bureau of Securities, under the direction of Bureau Chief Christopher Gerold, and the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher J. Gramiccioni, for their assistance with the case.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Defense counsel: Lisa Van Hoeck Esq., Assistant Federal Public Defender, Trenton
Mitchell Man Charged with Methamphetamine and Firearm OffensesRead the Press Release
United States Attorney Ron Parsons announced that a Mitchell, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, Possession of an Unregistered Firearm, Possession of a Firearm with an Obliterated Serial Number, and Possession of a Firearm by a Prohibited Person.
Eli Erickson, age 31, was indicted on November 14, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 20, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $10,000,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning at a time unknown but no later than January 1, 2016, and continuing through the date the Indictment was filed, Erickson combined, conspired, confederated and agreed with persons to knowingly distribute and possess with the intent to distribute 500 grams of more of methamphetamine. The Indictment also alleges that during this time, Erickson possessed multiple firearms in furtherance of a drug trafficking crime. One of the firearms Erickson possessed was a short-barreled shotgun not registered to him in the National Firearms Registration and Transfer Record, and another had the serial number obliterated.
The charges are merely accusations and Erickson is presumed innocent until and unless proven guilty.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Erickson was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mississippi County Sheriff Pleads Guilty to Fraud and Identity Theft, Agrees to ResignRead the Press Release
St. Louis, MO – Cory Hutcheson, 35, of East Prairie, MO, pled guilty to wire fraud and to illegally possessing and transferring the means of identification of others, in this case mobile telephone numbers, without lawful authority, and in connection with the commission of the state felony crime of Forgery. Sentencing has been set for February 28, 2019.
In his plea, Hutcheson admitted from April of 2014 through March 2017, he devised a scheme to obtain hundreds of individual’s location data. The defendant submitted thousands of Securus LBS requests and obtained the location data of individual phone subscribers without valid legal authorization, and, often, without the consent or even knowledge of the targeted individual. The defendant obtained the location data of mobile telephone users, including law enforcement officers, personal associates and friends, as well as a judge, without required legal process or authorization. He would routinely upload false and fraudulent documents to the Securus LBS platform. The location information request was submitted using wire communications transmitted in interstate.
Hutcheson faces a maximum penalty of 20 years and a fine of $250,000 on the wire fraud charge and not more than 5 years and a fine of $250,000 on the transfer of identification information charge. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. As part of the plea, Hutcheson agreed to resign as Sheriff not later than November 24, 2018.
“Sheriff Hutcheson simply misused an important law enforcement tool for his own purposes and, as a result, invaded the privacy of hundreds without the appropriate legal process,” said U.S. Attorney Jeff Jensen.
This case was investigated by the Federal Bureau of Investigation and the Missouri State Highway Patrol and was prosecuted in cooperation with the Missouri Attorney General’s Office. Assistant United States Attorneys Gwen Carroll and Lindsey McClure-Hartman are handling the case for the U.S. Attorney’s Office.
Minnesota Man Found Alive After Allegedly Faking His Death for Insurance ClaimRead the Press Release
United States Attorney Erica H. MacDonald today announced the arrest and extradition of IGOR VOROTINOV, 54. The defendant made his initial appearance on November 19, 2018, before United States Magistrate Judge Kate Menendez, in U.S. District Court, in Minneapolis, Minnesota. IGOR VOROTINOV was federally indicted on February 19, 2015, on one count of mail fraud. [1] He was arrested on November 14, 2018 in the Republic of Moldova, and extradited to the United States, arriving on United States soil on November 17, 2018.
According to the indictment and documents filed in court, in March 2010, IGOR VOROTINOV obtained a $2 million life insurance policy on his own life from Mutual of Omaha Insurance Company (Mutual of Omaha), and designated his wife, IRINA VOROTINOV, as the primary beneficiary.
According to the indictment and documents filed in court, on October 1, 2011, police in Moldova received a phone call reporting a dead body at the entrance of the Cojusna village in central Moldova. Documents recovered from the body, including a passport, hotel cards, and contact phone numbers, identified the man as IGOR VOROTINOV. IRINA VOROTINOV traveled to Moldova to identify the body. After positively identifying the corpse as IGOR, IRINA obtained a death certificate from Moldovan authorities and had the corpse cremated. Returning to the United States with the death certificate and an urn with ashes claiming to be that of IGOR’s remains, IRINA submitted the death claim to Mutual of Omaha for the $2 million policy. A funeral was held where the urn was placed in a niche at Lakewood Cemetery in Minneapolis.
According to the indictment and documents filed in court, on March 23, 2012, Mutual of Omaha sent a proceeds check in the amount of $2,048,414.09, via United States mail, to IRINA’S home in Maple Grove, Minnesota.
According to documents filed in court, IRINA recruited a third party to open an account at a local branch of U.S. Bank and to deposit the insurance check into the account. She then caused the third party to transfer $1.5 million to another account at U.S. Bank in the name of her son, ALKON VOROTINOV. Between March 29, 2012 and January 2015, more than $1.5 million of the life insurance proceeds were transferred to accounts located in Switzerland and Moldova.
According to documents filed in court, on November 27, 2013, ALKON was stopped by Customs and Border Protection (CBP) in Detroit, Michigan upon returning from a trip to Moldova. A computer seized by CBP agents contained digital photographs of IGOR VOROTINOV taken on April 19, 2013 and on May 12, 2013, in which IGOR is alive.
On May 16, 2016, IRINA VOROTINOV pleaded guilty to one count of mail fraud and one count of engaging in a monetary transaction in criminally derived property. On November 15, 2016, IRINA VOROTINOV was sentenced to 37 months in federal prison, by Judge Patrick J. Schlitz, in U.S. District Court in Minneapolis. She is currently serving her sentence.
ALKON VOROTINOV pleaded guilty on March 24, 2015, to one count of misprision of a felony. On September 27, 2016, ALKON was sentenced to three years of probation and $2,056,554.09 in restitution (to be paid jointly) by Judge Patrick J. Schlitz, in U.S. District Court in Minneapolis.
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The Justice Department’s Office of International Affairs handled the extradition in this matter.
Assistant U.S. Attorney David J. MacLaughlin is prosecuting the case.
Defendant Information:
Igor Vorotinov, 54
No Known Address
Charged:
- Mail Fraud, 1 count
Irina Vorotinov, 51
Plymouth, Minn.
Convicted:
- Mail Fraud, 1 count
- Engaging in a Monetary Transaction in Criminally Derived Property, 1 count
Sentenced:
- Mail Fraud, 37 months (served concurrently)
- Engaging in a Monetary Transaction in Criminally Derived Property, 37 months (served concurrently)
- 2 years each, supervised release (served concurrently)
- $2,056,554 in restitution to be paid jointly
Alkon Vorotinov, 28
Plymouth, Minn.
Convicted:
- Misprision of a Felony, 1 count
Sentenced:
- 2 years of probation
- $2,056,554 in restitution to be paid jointly
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
[1] The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Mineral County residents indicted on drug distribution and firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Phillip Arnold Bennett and Erica Lucinda Taylor, both of Piedmont, West Virginia, were indicted today by a federal grand jury on drug distribution and firearms charges, United States Attorney Bill Powell announced.
Bennett, age 30, is charged with one count of “Conspiracy to Distribute Heroin, Fentanyl, and Methamphetamine,” one count of “Unlawful Possession of a Firearm,” one count of “Distribution of Methamphetamine,” three counts of “Distribution of Heroin,” one count of “Aiding and Abetting Possession with Intent to Distribute Fentanyl,” two counts of “Aiding and Abetting Possession with Intent to Distribute Heroin,” one count of “Aiding and Abetting Distribution of Heroin,” one count of “Aiding and Abetting Distribution of Fentanyl,” one count of “Possession with Intent to Distribute Fentanyl,” and one count of “Possession with Intent to Distribute Heroin.” Bennett is accused of distributing heroin, fentanyl, and methamphetamine in Mineral County and elsewhere from September 2017 to August 2018. He is also accused of illegally possessing a .380 caliber pistol.
Taylor, age 30, is charged with one count of “Conspiracy to Distribute Heroin, Fentanyl, and Methamphetamine,” one count of “Aiding and Abetting Possession with Intent to Distribute Fentanyl,” two counts of “Aiding and Abetting Possession with Intent to Distribute Heroin,” two counts of “Distribution of Heroin,” one count of “Aiding and Abetting Distribution of Fentanyl,” and one count of “Possession with Intent to Distribute Heroin.”
Bennett faces up to 20 years incarceration and a fine of up to $1,000,000 for each drug count and up to 10 years incarceration and a fine of up to $250,000 for the firearms count. Taylor faces up to up to 20 years incarceration and a fine of up to $1,000,000 for each drug count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
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 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 Lara K. Omps-Botteicher is prosecuting the cases on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Middletown Man Pleads Guilty to Stealing from Law Firm and Family MemberRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that STEPHEN T. GIONFRIDDO, 68, of Middletown, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to fraud charges stemming from a scheme in which he embezzled more than $500,000 from his former employer, and then stole nearly $400,000 from his brother to pay back his employer.
According to court documents and statements made in court, Gionfriddo was hired by a Rocky Hill law firm as a paralegal in approximately August 2013. Beginning in approximately December 2013, Gionfriddo caused the firm’s bookkeeper to prepare checks payable to various of Gionfriddo’s creditors by misrepresenting that the funds were needed to pay client expenses. Gionfriddo also intercepted numerous checks payable to the law firm or to the firm’s clients, endorsed the checks over to himself, and then deposited the checks into his personal bank account for his own use.
In July 2017, Gionfriddo forged the signature of one of the firm’s partners on a Notice of Certificate Maturity in order to cancel a certificate of deposit (CD) in the name of one of the firm’s clients, and then mailed the form. When the $112,748.21 distribution check representing the proceeds of the client’s CD was mailed to the firm, Gionfriddo intercepted it, forged the signature of the payee, and converted it to his own use.
Through this scheme, Gionfriddo stole $543,372.21 from the law firm and its clients.
In late September 2017, the principals at the law firm confronted Gionfriddo about the theft of funds, and Gionfriddo promised to repay the firm. On October 3, 2017, Gionfriddo called the Thrift Savings Plan (“TSP”), a defined contribution plan for federal employees, and impersonated his brother, who had worked for the federal government and maintains a TSP account. During the call, Gionfriddo obtained information about how to effect a hardship withdrawal of money from the account and have it sent to a bank account he controlled. Gionfriddo also was advised on that call that TSP would issue a Form 1099 in January as a result of the hardship withdrawal.
On October 4, 2017, Gionfriddo faxed a form requesting a withdrawal of $195,000 from his brother’s TSP account for “medical expenses.” Gionfriddo directed the TSP to deposit the funds into a bank account that he controlled.
In an effort to conceal this scheme from his brother, Gionfriddo contacted the U.S. Postal Service and had his brother’s mail held for the entire month of January.
Gionfriddo also stole from his brother’s bank and investment accounts in the total amount of $201,518.
Gionfriddo was arrested on a criminal complaint on June 12, 2018.
Gionfriddo pleaded guilty to one count of mail fraud and one count of wire fraud. Judge Meyer scheduled sentencing for February 12, 2019, at which time Gionfriddo faces a maximum term of imprisonment of 20 years on each count.
Gionfriddo was convicted of federal wire fraud and mail fraud offenses in 2006 for embezzling more than $633,000 from clients while acting as their attorney.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Susan L. Wines.
Mexican National Sentenced for Conspiracy to Manufacture and Possess with Intent to Distribute MarijuanaRead the Press Release
DENVER – Margarito Yepez-Sanchez, age 25, a Mexican national who is in the United States illegally, was sentenced last week by U.S. District Court Judge R. Brooke Jackson to serve 36 months in federal prison, followed by three years of supervised release for conspiracy to manufacture and possess with intent to distribute 100 or more marijuana plants, U.S. Attorney Jason R. Dunn, U.S. Forest Service Special Agent in Charge Kent Delbon, and Homeland Security Investigations Special Agent in Charge Steven W. Cagen announced. The defendant appeared at the sentencing in custody and was remanded at the hearing’s conclusion.
Yepez-Sanchez was first charged by criminal complaint on September 21, 2017. He was indicted by a federal grand jury on October 11, 2017. His guilty plea to conspiracy to manufacture and possess with intent to distribute marijuana was accepted by Judge Jackson on August 10, 2018. Yepez-Sanchez was sentenced on November 15, 2018.
According to the stipulated facts contained in the plea agreement, in August 2017, federal agents discovered an illegal marijuana grow in the San Isabel National Forest. On September 20, 2017, agents and officers from multiple agencies executed a federal search warrant on the marijuana grow site. The grow consisted of approximately 13,800 marijuana plants and at least 120 pounds of processed marijuana. About twelve acres of federal lands were affected.
At the site law enforcement discovered two sleeping areas constructed of cut pine timber as well as two kitchen areas, additional sleeping areas, multiple marijuana-drying areas, and a man-made reservoir. Among other items, law enforcement found bottles of insecticide, rodenticide, and fertilizer. After law enforcement announced their presence the defendant fled uphill wearing socks but no shoes. A foot chase ensued resulting in the defendant being caught after law enforcement deployed a Taser. The defendant led the agents and officers to his sleeping area in the marijuana grow location.
This case was investigated by the U.S. Forest Service and Homeland Security Investigations. The following additional agencies assisted with the execution of the search and arrest warrants: U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations, the Custer County Sheriff’s Office, and the Colorado National Guard.
The defendant was prosecuted by Assistant U.S. Attorney Emily May.
Mexican National Pleads Guilty to Reentering the U.S. after Being DeportedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that JOSE LUIS MERINO HERNANDEZ, also known as “Jose Mendez,” 50, pleaded guilty yesterday in Hartford federal court to one count of reentry of removed alien. Merino Hernandez is a citizen of Mexico last residing in Waterbury.
According to court documents and statements made in court, in January 2005, Merino Hernandez was removed from the U.S. to Mexico after he sustained convictions in New York. He illegally reentered the U.S. and was encountered by ICE while he was incarcerated in New York in November 2010. He was removed to Mexico in January 2011.
U.S. Customs and Border Patrol agents encountered Merino Hernandez in Tucson, Arizona, three times in May and June 2011. After the third encounter, Merino Hernandez was charged in the District of Arizona with illegal reentry. He was convicted of the offense, sentenced to 120 days of imprisonment, and removed to Mexico in October 2011.
On June 9, 2018, Merino Hernandez was arrested in Waterbury and charged with four counts of risk of injury of a minor, one count of interfering/resisting arrest, one count of breach of peace and one count of assault 3rd degree. He has been detained since his arrest. On September 10, 2018, he pleaded guilty in state court to one count of reckless endangerment in the first degree.
Merino Hernandez is scheduled to be sentenced in Hartford federal court on February 11, 2019, at which time he faces a maximum term of imprisonment of two years.
This matter has been investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE), with the assistance of the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Mexican Man Sentenced to Prison for Illegally Reentering the United StatesRead the Press Release
A Mexican man who illegally returned to the United States after being deported was sentenced today to four months in federal prison.
Pedro Macias-Torres, age 38, a citizen of Mexico illegally present in the United States and residing in Postville, Iowa, received the prison term after an August 21, 2018, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Macias-Torres admitted he had previously been deported from the United States in April 2002 and illegally reentered the United States without the permission of the United States government. Macias-Torres was found by immigration agents at the Fayette County, Iowa, jail in July 2018 after Macias-Torres was arrested for traffic violations. Macias-Torres has prior convictions for operating while intoxicated in Des Moines County, Iowa in 2002, and Allamakee County, Iowa in 2007.
Macias-Torres was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Macias-Torres was sentenced to 121 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Macias-Torres is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2037-CJW. Follow us on Twitter @USAO_NDIA.
Mercer County, New Jersey, Man Sentenced to Four Years in Prison for Armed Robbery Spree of Electronics Stores in New Jersey and PennsylvaniaRead the Press Release
CAMDEN, N.J. – A Trenton, New Jersey, man was sentenced today to 48 months in prison for robbing Metro PCS stores in Willingboro, New Jersey, Lumberton, New Jersey, and Levittown, Pennsylvania, in September and October 2016, U.S. Attorney Craig Carpenito announced.
Zeldrick Nance, 31, of Trenton, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of conspiracy to commit Hobbs Act robberies. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On Sept. 29, 2016, Nance, Rodney Day, 27, of Trenton, and Lisa Anderson, 35, of Griffithville, Arkansas, drove to the Willingboro Metro PCS Store. Day brandished what appeared to be a firearm while Nance duct taped the store occupants and placed them into a store bathroom. Meanwhile, Anderson stole cellular telephones and money from the cash registers. During the robbery, Day demanded the keys to a car owned by one of the victims. Day, Nance, and Anderson fled with the stolen cellular telephones and money in that stolen car.
On Oct. 7, 2016, Day, Nance, and Anderson drove to the Lumberton Metro PCS Store. Day brandished what appeared to be a firearm while Nance duct taped a store occupant, put that victim in a storage room, and took the victim’s wallet and keys. Meanwhile, Anderson stole cellular telephones and money from the cash registers.
On Oct. 12, 2016, Day, Nance, and Anderson drove to the Levittown Metro PCS Store. Day once again brandished what appeared to be a firearm while Nance duct taped the victims inside the store and put them in a store bathroom. Anderson subsequently entered the store and stole cellular telephones and money from the cash registers.
In addition to the prison term, Judge Rodriguez sentenced Nance to three years of supervised release and ordered him to pay restitution of $26,307.
Day previously pleaded guilty and was sentenced Nov. 1, 2018, to 100 months in prison. Anderson has previously pleaded guilty to her role in the robberies and is currently scheduled for sentencing on Dec. 6, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing. He also thanked the Willingboro, Lumberton, and Levittown police departments, as well as the Burlington and Mercer County Prosecutor’s Offices for their assistance in this case.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.Defense counsel: Peter A. Levin Esq., Philadelphia
Men from Mansfield and Curtice indicted for child pornography crimesRead the Press Release
Two Ohio men were indicted on charges related to child pornography crimes.
Terry Gutshall, 41, of Mansfield, was charged with receiving and distributing visual depictions of minors engaged in sexually explicit conduct and possessing child pornography.
John R. Garrett, III, 39, of Curtice, was charged with receiving and distributing visual depictions of minors engaged in sexually explicit conduct.
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.
Both cases were investigated by the Federal Bureau of Investigation. The Gutshall case is being prosecuted by Assistant U.S. Attorney Danielle Angeli while the Garrett case is being prosecuted by Assistant U.S. Attorney Tracey Tangeman Ballard.
An indictment is only a charge and 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.
Massachusetts Man Arrested for Obstructing Investigation into Mishandling of National Defense InformationRead the Press Release
BOSTON – A Sharon, Mass., man was arrested today and charged with trying to obstruct an investigation involving time-card fraud and the potential mishandling of classified information.
Ahmedelhadi Yassin Serageldin, 65, an Egyptian-born nationalized U.S. citizen, was arrested this morning and charged with one count of misleading conduct with intent to hinder, delay, or prevent communications to a law enforcement officer relating to the commission or possible commission of a federal offense. Serageldin was detained following an initial appearance this afternoon in federal court in Boston. A detention hearing is scheduled for Nov. 21, 2018 at 1:00 p.m.
The indictment alleges that Serageldin was a systems engineer at Raytheon Company in Massachusetts from August 1997 until he was terminated in May 2017. Serageldin had a secret-level security clearance in order to complete his assignments on several defense contracts for the U.S. government involving military radar technology.
According to court documents, in 2017, Raytheon investigated Serageldin for time-card fraud, as he was suspected of taking off every Friday from January to the end of March 2017, yet claiming on his time card that he worked on those dates. By doing so, Serageldin caused Raytheon to overcharge the federal government on the contracts he was assigned to.
The time-card fraud investigation allegedly led Raytheon to uncover evidence that Serageldin had downloaded a substantial number of files from Raytheon’s computer network and had connected removable electronic storage devices to the network in violation of Raytheon’s security policy. During the company’s internal investigation, the indictment alleges that Serageldin engaged in misleading conduct to hinder, delay, or prevent Raytheon employees from communicating with law enforcement about his time-card fraud and his potential mishandling and retention of classified information and national defense information. The indictment alleges that Serageldin did this by:
- Claiming that he was working on company business at home and that he was authorized to do so;
- Misrepresenting why and when he had downloaded files from Raytheon’s network;
- Falsely denying that he possessed an external hard drive or thumb drive and then later, making fraudulent and misleading statements about how he had used an external hard drive (a Western Digital external hard drive);
- Falsely denying that he possessed any Raytheon records or classified documents at his residence;
- Delaying the production of his Western Digital external hard drive and a personal laptop computer to Raytheon investigators, which both contained information pertaining to his work at Raytheon on U.S. military programs;
- Accessing the files on, and changing the content of, his Maxell thumb drive despite having been instructed not to do so; and
- Delaying delivery of his personal laptop computer to Raytheon so he could conduct research on how to wipe his personal laptop clean.
The charge of misleading conduct with intent to hinder, delay, and prevent the communication to a law enforcement officer relating to the commission and possible commission of a federal offense provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gain or loss, whichever is greatest, restitution, and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Leo Lamont, Special Agent in Charge of the Naval Criminal Investigative Service, Northeast Field Office, made the announcement today. Assistance with the investigation was provided by Defense Criminal Investigative Service, Air Force Office of Special Investigations, and Internal Revenue Service’s Criminal Investigations in Boston. Raytheon Company has cooperated with the investigation, which was launched after they notified federal authorities about the suspicious conduct. Assistant U.S. Attorney Scott L. Garland, Deputy Chief of Lelling’s National Security Unit, is prosecuting this case with assistance of Trial Attorney Scott Claffee of the Justice Department’s Counterintelligence and Export Control Section of the National Security Division.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Man Subject to Victim Protection Order to Serve Two Years in Prison for Unlawful Possession of FirearmRead the Press Release
OKLAHOMA CITY – IVAN MACHADO-SALDIVAR, 34, of Oklahoma City, has been sentenced to 24 months in federal prison for possessing a firearm while subject to a victim protection order, announced Robert J. Troester of the U.S. Attorney’s Office.
According to an affidavit in support of a complaint filed on April 4, 2018, Del City police officers responded to a domestic dispute on March 22, 2018. The victim alleged Machado-Saldivar, her "boyfriend/common law husband," had kicked in her front door and assaulted her with a firearm. According to the affidavit, she later explained he had told her he would hurt both of them if she called the police. Near the victim’s residence, officers arrested Machado-Saldivar in a silver Lexus. A pat-down revealed he was wearing an empty plastic firearm holster on his right hip. An inventory search of the car yielded a 9mm pistol and fifteen rounds of ammunition.
The affidavit explains that officers determined Machado-Saldivar was subject to an Oklahoma County victim protection order entered on January 29, 2018. Although he had no felony convictions, the victim protection order made his possession of a firearm a felony under federal law.
Machado-Saldivar has been in the custody of the U.S. Marshals Service since April. On May 15, 2018, a federal grand jury indicted him for being in unlawful possession of a firearm while subject to a victim protection order. He pleaded guilty on July 2, 2018.
At his sentencing hearing yesterday, United States District Judge Charles Goodwin sentenced Machado-Saldivar to 24 months in prison, the top of the advisory range under the U.S. Sentencing Guidelines. The court also ordered him to serve one year of supervised release after imprisonment.
This sentence is the result of an investigation by the Del City Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Prosecuted by Assistant U.S. Attorney Jessica Cárdenas, the case is part of Project Safe Neighborhoods, a Department of Justice program to reduce violent crime. In October 2017, the Department announced the reinvigoration of Project Safe Neighborhoods and directed U.S. Attorney’s Offices to develop crime-reduction strategies that incorporate lessons federal law enforcement has learned since the program’s launch in 2001.
Reference is made to public filings for further information.
MS-13 Member Sentenced to More Than Seven Years in Prison for Racketeering Related ChargesRead the Press Release
A resident of Hyattsville, Maryland was sentenced to serve 90 months in prison followed by three years of supervised release for his participation in the racketeering enterprise known as La Mara Salvatrucha, or MS-13.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert K. Hur for the District of Maryland, Acting Special Agent in Charge Scott Hoernke of the U.S. Drug Enforcement Administration (DEA) Washington Field Division, Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore Field Office, Chief J. Thomas Manger of the Montgomery County Police Department, Chief Henry P. Stawinski III of the Prince George’s County Police Department, Interim Chief Amal Awad of the Hyattsville Police Department, Prince George’s County State’s Attorney Angela D. Alsobrooks and Montgomery County State’s Attorney John McCarthy made the announcement.
Jeffrey Rodriguez, aka Jefry Francisco Portillo Corvera, or “Hyper,” 22, had previously pleaded guilty before the Honorable Judge Paula Xinis in the District of Maryland to conspiracy to participate in a racketeering enterprise.
According to the plea agreement, MS-13 is a gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County, Prince George’s County, and Frederick County, and throughout the United States. Branches or “cliques” of MS-13 often work together cooperatively to engage in criminal activity and to assist one another in avoiding detection by law enforcement. MS-13 members and associates are required to commit acts of violence within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
Pursuant to his plea agreement, Rodriguez admitted that from sometime before in or about August 2016, he was a member and associate of the Sailors clique of MS-13. Rodriguez admitted that on Aug. 9, 2016, he and other MS-13 members and associates planned and conspired to rob two individuals of a pound of marijuana, the sale of which would be used to benefit the Sailors clique.
Specifically, Rodriguez admitted that on Aug. 9, 2016, Rodriguez and a MS-13 co-conspirator entered a vehicle occupied by the two victims under the guise that they were going to purchase a pound of marijuana from the victims. Rodriguez and his co-conspirator were armed with a firearm and a knife. Upon attempting to rob the victims, and displaying the firearm, Rodriguez and his co-conspirator became engaged in a violent struggle with the victims. During the struggle, the victims sustained serious bodily injuries including gunshot and stab wounds. In addition, both Rodriguez and his co-conspirator sustained gunshot wounds. After being shot, Rodriguez and his co-conspirator ran from the victims’ vehicle, got into another vehicle in which another MS-13 member was waiting and drove to a local hospital, where Rodriguez was admitted for treatment.
Eight of Rodriguez’s co-defendants remain charged in the sixth superseding indictment with various racketeering violations, drug trafficking conspiracy, and extortion conspiracy. The trial of the eight remaining defendants is scheduled to commence on March 12, 2019.
An indictment is merely an allegation. Those defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
HSI Baltimore, FBI Washington Field Office, DEA Washington Field Office, the Prince George’s County Police Department, the Montgomery County Police Department, the Hyattsville Police Department, the Prince George’s State’s Attorney’s Office, the Hyattsville Police Department, and the Montgomery County State’s Attorney’s Office investigated this case. Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau, Catherine K. Dick, and Daniel C. Gardner of the District of Maryland are prosecuting this case.
MS-13 Member Sentenced to 90 Months in Prison for Racketeeting Related ChargesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Jeffrey Rodriguez, aka Jefry Francisco Portillo Corvera, or “Hyper,” 22, a citizen of El Salvador illegally residing in Hyattsville, Maryland, today to 90 months in prison, followed by 3 years of supervised release, for his participation in the racketeering enterprise known as La Mara Salvatrucha, or MS-13.
The sentencing was announced by United States Attorney for the District of Maryland Robert K. Hur, Assistant Attorney General Brian A. Benczkowski for the Justice Department’s Criminal Division, Acting Special Agent in Charge Scott Hoernke of the U.S. Drug Enforcement Administration (DEA) Washington Field Division, Acting Special Agent in Charge Cardell T. Morant of the U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore Field Office, Chief J. Thomas Manger of the Montgomery County Police Department, Chief Henry P. Stawinski III of the Prince George’s County Police Department, Interim Chief Amal Awad of the Hyattsville Police Department, Prince George’s County State’s Attorney Angela D. Alsobrooks, and Montgomery County State’s Attorney John McCarthy.
According to the plea agreement, MS-13 is a gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County, Prince George’s County, and Frederick County, and throughout the United States. Branches or “cliques” of MS-13 often work together cooperatively to engage in criminal activity and to assist one another in avoiding detection by law enforcement. MS-13 members and associates are required to commit acts of violence within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
As detailed in his plea agreement, Rodriguez admitted that from about August 2016, he was a member and associate of the Sailors clique of MS-13. Rodriguez admitted that on August 9, 2016, he and other MS-13 members and associates planned and conspired to rob two individuals of a pound of marijuana, the sale of which would be used to benefit the Sailors clique.
Specifically, Rodriguez admitted that on August 9, 2016, Rodriguez and an MS-13 co-conspirator entered a vehicle occupied by the two victims under the guise that they were going to purchase a pound of marijuana from the victims. Rodriguez and his co-conspirator were armed with a firearm and a knife. Upon attempting to rob the victims, and displaying the firearm, Rodriguez and his co-conspirator became engaged in a violent struggle with the victims, who sustained serious injuries, including gunshot and stab wounds. Rodriguez and his co-conspirator also sustained gunshot wounds. After being shot, Rodriguez and his co-conspirator ran from the victims’ vehicle, got into another vehicle in which another MS-13 member was waiting and drove to a local hospital, where Rodriguez was admitted for treatment.
United States Attorney Robert K. Hur and Assistant Attorney General Brian Benczkowski praised HSI Baltimore, FBI Washington Field Office, DEA Washington Field Office, the Prince George’s County Police Department, the Montgomery County Police Department, the Hyattsville Police Department, the Prince George’s State’s Attorney’s Office, and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Hur and Mr. Benczkowski thanked Assistant U.S. Attorneys William D. Moomau, Catherine K. Dick, and Daniel C. Gardner, and Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section, who are prosecuting this case.
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MS-13 Gang Member Sentenced to 90 Months in Federal Prison for Gang-Related CrimesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Jeffrey Rodriguez, a/k/a Jefry Francisco Portillo Corvera, or “Hyper,” age 22, a citizen of El Salvador residing in Hyattsville, Maryland, today to 90 months in prison, followed by 3 years of supervised release, for his participation in the racketeering enterprise known as La Mara Salvatrucha, or MS-13. Rodriguez is expected to be deported following completion of his federal prison sentence.
The sentencing was announced by United States Attorney for the District of Maryland Robert K. Hur, Assistant Attorney General Brian A. Benczkowski for the Justice Department’s Criminal Division, Acting Special Agent in Charge Scott Hoernke of the U.S. Drug Enforcement Administration (DEA) Washington Field Division, Acting Special Agent in Charge Cardell T. Morant of the U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore Field Office, Chief J. Thomas Manger of the Montgomery County Police Department, Chief Henry P. Stawinski III of the Prince George’s County Police Department, Interim Chief Amal Awad of the City of Hyattsville Police Department, Prince George’s County State’s Attorney Angela D. Alsobrooks, and Montgomery County State’s Attorney John McCarthy.
According to the plea agreement, MS-13 is a gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County, Prince George’s County, and Frederick County, and throughout the United States. Branches or “cliques” of MS-13 often work together cooperatively to engage in criminal activity and to assist one another in avoiding detection by law enforcement. MS-13 members and associates are required to commit acts of violence within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
As detailed in his plea agreement, Rodriguez admitted that from about August 2016, he was a member and associate of the Sailors clique of MS-13. Rodriguez admitted that on August 9, 2016, he and other MS-13 members and associates planned and conspired to rob two individuals of a pound of marijuana, the sale of which would be used to benefit the Sailors clique.
Specifically, Rodriguez admitted that on August 9, 2016, Rodriguez and an MS-13 co-conspirator entered a vehicle occupied by the two victims under the guise that they were going to purchase a pound of marijuana from the victims. Rodriguez and his co-conspirator were armed with a firearm and a knife. Upon attempting to rob the victims, and displaying the firearm, Rodriguez and his co-conspirator became engaged in a violent struggle with the victims, who sustained serious injuries, including gunshot and stab wounds. Rodriguez and his co-conspirator also sustained gunshot wounds. After being shot, Rodriguez and his co-conspirator ran from the victims’ vehicle, got into another vehicle in which another MS-13 member was waiting and drove to a local hospital, where Rodriguez was admitted for treatment.
United States Attorney Robert K. Hur and Assistant Attorney General Brian Benczkowski praised HSI Baltimore, FBI Washington Field Office, DEA Washington Field Office, the Prince George’s County Police Department, the Montgomery County Police Department, the City of Hyattsville Police Department, the Prince George’s State’s Attorney’s Office, and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Hur and Mr. Benczkowski thanked Assistant U.S. Attorneys William D. Moomau, Catherine K. Dick, and Daniel C. Gardner, and Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section, who are prosecuting this case.
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Louisiana Doctor Pleads Guilty to Conspiring to Receive Health Care Kickback PaymentsRead the Press Release
A Baton Rouge, Louisiana-based doctor pleaded guilty today for his role in a scheme to receive approximately $336,000 in illegal health care kickback payments.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office and Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office made the announcement.
Gray Wesley Barrow, M.D., 58, of Baton Rouge, pleaded guilty to an information charging him with one count of conspiracy to pay and receive health care kickbacks. He is scheduled to be sentenced on March 1, 2019 by U.S. District Judge Brian A. Jackson of the Middle District of Louisiana, who accepted his plea today.
Barrow was a co-owner of Louisiana Spine & Sports LLC, a pain management clinic located in Baton Rouge. According to admissions made as part of his guilty plea, Barrow agreed to send urine specimens collected from his patients to a drug testing laboratory in return for a percentage of the reimbursements paid to the laboratory by health care benefit programs, including Medicare. As part of his plea, Barrow admitted that from approximately April 2014 through July 2016, he sent specimens collected from his patients to the drug testing laboratory and received approximately $336,000 in disbursements from the laboratory associated with testing for Medicare beneficiaries.
HHS-OIG and FBI investigated the case. Assistant Chief Dustin M. Davis and Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elizabeth E. White of the Middle District of Louisiana are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Lincoln County Man Sentenced to Prison for Federal Drug and Gun ChargesRead the Press Release
HUNTINGTON, W.Va. – A Lincoln County man caught with fentanyl, methamphetamine, and a firearm in January 2018 was sentenced yesterday to 78 months in federal prison, announced United States Attorney Mike Stuart. Chad Anthony Wilson, 27, of West Hamlin, previously pled guilty to possession with intent to distribute methamphetamine and fentanyl and possession of a firearm in furtherance of a drug crime. Stuart commended the investigative efforts of the Hurricane Police Department and the Drug Enforcement Administration.
“Fentanyl. Meth. Firearm. Dangerous and deadly,” said United States Attorney Mike Stuart. “If you are a drug dealer like Wilson, look over your shoulder, our law enforcement partners will find you. And if you are carrying a firearm during your drug crimes, expect significant prison time.”
Wilson admitted that late at night on January 8, 2018, he was sitting in his Chevy Impala, which was parked across all the dividers in the parking lot of American Inn in Hurricane. A Hurricane police officer approached the car, introduced himself, and saw a bag containing a crystal substance consistent with methamphetamine in the center console of the vehicle. When the officer asked if there were any weapons in the car, Wilson told the officer that he had a gun in the passenger seat, though he refused to hand over the weapon. A backup officer arrived shortly after and secured the gun, later identified as a Taurus, Millennium PT111, 9mm pistol.
Once the weapon was secure, officers asked Wilson if there were any more weapons or narcotics in the vehicle. Wilson told the officer about the bag in the center console. During a search of the vehicle, officers recovered that bag of suspected methamphetamine, as well as another bag containing 18.57 grams of a substance that was analyzed by a Drug Enforcement Administration laboratory and confirmed to be fentanyl.
Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers.
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Lakeville Man Sentenced to 88 Months in Prison for Precious Metals Investment SchemeRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of DAVID THOMAS ROUGIER, 46, to 88 months in prison for one count of wire fraud. ROUGIER, who pleaded guilty on July 18, 2018, was sentenced on November 19, 2018, before Chief Judge John R. Tunheim, in U.S. District Court in Minneapolis, Minnesota.
"The defendant callously preyed on several victims who were at or nearing retirement age – a population that not only lives on a tight budget, but is also trusting of those who claim to help them live out their golden years with security. David Rougier abused that trust and we are satisfied that today's sentence ensures that he will not only pay for his crimes, but will not be able to harm again," said FBI Special Agent in Charge Jill Sanborn. "The men and women of the FBI will continue doggedly go after those who lie, cheat and swindle their way into stealing the hard earned savings of our senior citizens."
According to the defendant’s guilty plea and documents filed in court, between November 2010 and June 2017, more than a dozen individuals paid ROUGIER approximately $835,000 based upon his promises that he was using their money to buy gold and silver and, in some cases, that their investments were protected through guaranteed buyback contracts. ROUGIER promised his victim-investors that precious metals would be a safe investment and that the value would increase every year. Instead of purchasing the gold and silver, ROUGIER spent hundreds of thousands of dollars of victims’ money on shopping trips, entertainment, travel, strip clubs and other personal expenses.
According to the defendant’s guilty plea and documents filed in court, ROUGIER also collected yearly fees for “storage” and “management” from his victim-investors, purportedly to store and manage the gold and silver he claimed to have purchased on their behalf. Additionally, between 2013 and 2014, ROUGIER began telling his victim-investors that he had found a company, which he identified as “TAUG Limited” (“TAUG”) that would guarantee to purchase their gold and silver for a set price on a designated future date, making their investment virtually risk free. ROUGIER presented some of his victim-investors with a purported contract between them and TAUG, under which they were charged between $1,000 and $2,000 in order to avail themselves of this guaranteed future purchase price. These funds were paid directly to ROUGIER, who spent them on personal expenditures.
This case is the result of an investigation conducted by the FBI and the Minnesota Commerce Fraud Bureau.
Assistant United States Attorney Amber M. Brennan prosecuted the case.
Defendant information:
DAVID THOMAS ROUGIER, 46
Lakeville, Minn.
Convicted:
- Wire Fraud, 1 count
Sentenced:
- 88 months in prison
- 3 years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Justice Department Files Statement of Interest in First Amendment CaseRead the Press Release
The Justice Department today filed a Statement of Interest in U.S. District Court in South Carolina supporting a church’s claim that the Town of Edisto Beach violated its rights under the First Amendment when the town barred it from renting space at the Town’s Civic Center.
"The Constitution protects the right of individuals and groups to exercise their religion without discrimination because of their religion,” said Acting Attorney General Matthew Whitaker. “The First Amendment requires that religious individuals and groups have the same opportunity to rent public facilities as other members of the community. The Department of Justice is committed to protecting the First Amendment rights of Americans, including fostering the religious expression of members of all faiths.”
The case, Redeemer Fellowship of Edisto Island v. Town of Edisto Beach, involves a small Christian congregation that sought to rent space for Sunday worship in the Civic Center, which is available for rental by community groups to hold events and activities. The town responded by enacting a policy barring worship services at the Civic Center, citing separation of church and state concerns. The town claimed that it wanted to avoid appearing as though they endorsed a religious group. As a result, the church filed a First Amendment lawsuit to allow it to rent space at the facility.
The Constitution requires that churches be allowed to rent facilities on an equal basis with other community groups. The Supreme Court held in the landmark case of Widmar v. Vincent (1981), that a university could not “discriminate against student groups and speakers based on their desire to use a generally open forum to engage in religious worship and discussion.” The United States’ Statement of Interest argues that allowing equal access to all groups, including the church, is required by the First Amendment. Allowing equal access, the United States argues, ensures the government neutrality toward religious expression that the Constitution requires.
Johnson County Man Sentenced, Banned from BankingRead the Press Release
KANSAS CITY, KAN. – A former banker who lives in Johnson County was sentenced today to 3 years probation and banned from working as a banker, U.S. Attorney Stephen McAllister said.
Michael W. Yancey, 59, Olathe, Kan., pleaded guilty to one count of conspiracy to make false statements on a loan application. In his plea, he admitted the crime took place while he was working as a senior vice president and commercial lender at Farmers Bank & Trust, N.A., in Overland Park. Farmers Bank is headquartered in Great Bend, Kan.
Yancey conspired with another person to obtain and maintain a business loan of $850,000 from Farmers Bank for two companies by falsely representing the terms of a real estate purchase in Basehor, Kan. He falsely represented to the bank that the property’s purchase price was $1.1 million when in fact it was $850,000. The false information made it appear the loan conformed to a maximum 75 percent loan-to-value ratio when in truth the loan was approximately 97 percent of the purchase price. He also falsely stated that the loan involved a seller carryback of $150,000 and a borrower equity injection of $125,000.
McAllister commended SIG-TARP (Office of Inspector General for the Troubled Asset Relief Program), the FBI, the U.S. Department of Labor - Office of the Inspector General, the U.S. Department of Labor - Employee Benefits Security Administration and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Jefferson County man indicted for bank robberyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Timothy Byers, Jr., of Charles Town, West Virginia, was indicted today by a federal grand jury for bank robbery, United States Attorney Bill Powell announced.
Byers, age 48, is charged with one count of “Bank Robbery.” Byers is accused of robbing the Bank of Charles Town in Charles Town, West Virginia, on May 19, 2018. Byers allegedly got away with $7,048.
Byers faces up to 20 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting the case on behalf of the government. The Federal Bureau of Investigation investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Jamestown Woman Pleads Guilty for Her Role in Methamphetamine ConspiracyRead 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 Searcy E. Fields pleaded guilty before U.S. District Judge Lawrence J. Vilardo to conspiracy to possess with intent to distribute, and to distribute, five grams or more of methamphetamine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorneys Patricia Astorga and Emmanuel Ulubiyo, who are handling the case, stated that the defendant pleaded guilty for her role in a Jamestown methamphetamine conspiracy. On May 22, 2018, Fields sold 15 grams of methamphetamine to an individual working with law enforcement. In a recorded conversation, the individual asked the defendant for half an ounce of methamphetamine. Fields responded that she had “a little H” (heroin) but did not have “that much ice.” The defendant then called and got the methamphetamine from co-defendant Destiny Hare and Andrew Bennett.
Fields was indicted along with 14 other defendants including: Destiny Hare; Zackiel Fields, Jr.; Ernest Cauley, Jr., a/k/a L.A., a/k/a Ernie; Jamell Trapp, a/k/a K.S.; Ramael Fields; Stephanie L. Harrison; Marcus Martin Bowman; Danny W. Michael, Ill; Alexis V. Hall; Destiny J. Hare; Andrew C. Bennett; Jacob A. Motherwell; Michael A. Davis; and Stacie N. Yancer. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty. Fields is the first defendant to be convicted.
During the execution of search warrants throughout the investigation, law enforcement officers recovered 10 firearms and multiple rounds of ammunition, over 20 cellular telephones, drug paraphernalia, and U.S. currency.
In a related case, a detention hearing was held this morning for Bobby Hunt, Jr. and Amy Dean. Although not charged in the drug case, Hunt and Dean were charged with conspiracy to retaliate against witnesses, witness retaliation, and taking action harmful to a witness, after they threatened someone they believed to be a cooperating with the government in its case against the Jamestown methamphetamine conspiracy. U.S. Magistrate Judge H. Kenneth Schroeder ordered the defendants detained.
In seeking to have Hunt and Dean detained, the Government presented a series of threatening social media posts and voicemail messages, and information regarding the assault of a woman the defendants believed to be cooperating with law enforcement in the investigation. As a result of that assault, the woman suffered a miscarriage.
Today’s plea and the charges against Hunt and Dean are the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the Jamestown Police Department, under the direction of Chief Harry Snellings.
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Jacksonville Man Sentenced to More Than Eight Years for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Craig Harry Lipinski (50, Jacksonville) to eight years and one month in federal prison for knowingly receiving images and videos depicting the sexual abuse of children from the internet. Lipinski was also sentenced to serve a seven-year term of supervised release and ordered to register as a sex offender.
Lipinski had pleaded guilty on June 5, 2018.
According to court documents and testimony, agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted an undercover child exploitation investigation and determined that a host computer connected to Lipinski’s residence was using a file-sharing program to share videos of child pornography over the internet. On January 30, 2018, law enforcement executed a federal search warrant at Lipinski’s Jacksonville residence and made contact with him. At that time, agents observed that a computer at the residence was actively downloading files using the same program. Some of the files contained the terms “teen” and “young” in their titles.
During an interview with law enforcement, Lipinski stated that he had downloaded movies from the file-sharing program, and that he “probably downloaded some miscellaneous, some inappropriate stuff.” A forensic examination of Lipinski’s computer media revealed that it contained at least 206 videos and 8,755 images depicting children being sexually abused. At sentencing, Lipinski admitted that he viewed child pornography because of “sexual curiosity” and for his own “sexual gratification.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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 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."
Jury Convicts San Diego Executive and Broker of $50 Million Real Estate FraudRead the Press Release
NEWS RELEASE SUMMARY – November 20, 2018
SAN DIEGO – Following a two-week trial, a jury returned guilty verdicts on all counts against finance executive Peter Cash Doye and notary public and real estate broker Raquel Reid for their roles in a massive real estate fraud scheme that generated nearly $50 million in fraudulently-obtained loan proceeds.
The evidence presented at trial demonstrated that Doye and Reid defrauded lenders into making enormous loans against four multi-million dollar mansions in La Jolla and Del Mar, then used forged documents to make it appear that the loans had been paid off so they could obtain additional loans from new lenders who believed the mansions were owned “free and clear.”
Doye, a senior executive at the real estate investment firms Conix, Inc. and Variant Commercial Real Estate (“VCRE”), negotiated the financing from unsuspecting lenders and investors based on a host of lies about the collateral used to secure the loans. To pull of the scam, Doye, Reid, and their co-conspirators created forged real estate lien “releases” and recorded fraudulent records at the San Diego County Recorder’s Office, complicating the chain of title for these homes. Reid notarized the forged documents, helping to make the fraudulent paperwork appear authentic.
Doye’s business partner Courtland Gettel and Arizona attorney Jeffrey Greenberg previously pleaded guilty to participating in the scheme, and are serving sentences of 135 and 81 months, respectively. Gettel and Greenberg were also ordered to pay more than $43 million in restitution to victims, and to forfeit the proceeds of the crime. Gettel was the owner of Conix and VCRE, which refurbished single-family homes, purchased distressed debt, and purchased and refurbished commercial real estate projects.
During trial, the government proved that Gettel, Greenberg, and Doye acquired the high-end homes in La Jolla and Del Mar by claiming they would be used as luxury rentals and investment properties—although in fact, Gettel and Doye lived in the properties along with their families. When they needed money to fund other business deals, Gettel and Doye began negotiating with new lenders, pretending that the first loans never existed or had already been paid off. Greenberg admitted that he used his expertise as a lawyer to generate and record fraudulent records, making it appear that prior loans were paid off and helping to close the fraudulent deals.
In late 2014, the lenders began to uncover the fraud and learn that their secured interests in the properties were worthless. In response to questions from these lenders, Doye, Reid and Gettel denied knowing anything about the fraudulent loans, and created yet more fraudulent documents to cover their tracks. For example, Reid destroyed her notary book and cut up her notary stamp, and then falsely reported to the California Secretary of State that her book had been lost.
“These defendants attempted to use their significant real estate experience to pull off an egregious fraud that created serious consequences for lenders and title owners,” said U.S. Attorney Adam Braverman. “As this case demonstrates, federal prosecutors are fully committed to protecting the integrity of our lending system by holding such criminals accountable.”
“The FBI will pursue each criminal participant in these sophisticated, multi-million dollar fraud schemes until final justice is served.” said FBI Special Agent in Charge John Brown. “Today, Peter Doye and Raquel Reid join co-conspirators Courtland Gettel and Jeffrey Greenberg as convicted felons for their roles in this massive loan fraud scheme.”
United States District Judge William Q. Hayes remanded both Doye and Reid into custody following the guilty verdicts, and set their sentencing hearings for March 4, 2019, at 9:00 am.
This case is being prosecuted by Assistant United States Attorneys Emily Allen and Andrew Young.
DEFENDANTS
Peter Cash Doye Age: 41 San Diego, CA
Raquel Reid Age: 38 San Diego, CA
CHARGES
Count One (both defendants): Wire and Mail Fraud Conspiracy, in violation of 18 U.S.C. § 1349
Maximum Penalties: 20 years’ imprisonment, $250,000 fine, or twice the gross gain or loss caused by the offense, $100 special assessment, restitution, forfeiture
Counts Two through Six (Doye only; both defendants as to Count Three): Wire Fraud, in violation of 18 U.S.C. § 1343
Maximum Penalties as to each count: 20 years’ imprisonment, $250,000 fine, or twice the gross gain or loss caused by the offense, $100 special assessment, restitution, forfeiture
Counts Seven through Nine (Doye only as to Count Seven, both defendants as to Counts Eight and Nine): Mail Fraud, in violation of 18 U.S.C. § 1341
Maximum Penalties as to each count: 20 years’ imprisonment, $250,000 fine, or twice the gross gain or loss caused by the offense, $100 special assessment, restitution, forfeiture
Counts Ten and Eleven (both defendants): Aggravated Identity Theft, in violation of 18 U.S.C. § 1028A
Maximum Penalties: mandatory 2 years’ imprisonment, consecutive to any other term of imprisonment, $250,000 fine, $100 special assessment, restitution.
Count Twelve (Reid only): False Statements to Federal Agents, in violation of 18 U.S.C. § 1001
Maximum Penalties: 5 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.
DEFENDANTS PREVIOUSLY CHARGED
Jeffrey Greenberg, 16CR1076-WQH and 1077-WQH Age: 67 Tucson, AZ
Courtland Gettel, 16CR1099-WQH Age: 43 Coronado, CA
AGENCY
Federal Bureau of Investigation
Intercept Corp., Payment Processor for Illegal Payday Loans is Ordered to Forfeit Nearly $6 MillionRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that Intercept Corporation, d/b/a “Intercept EFT” (“Intercept”), was placed on two years’ probation and ordered to forfeit $5,928,893 in criminal proceeds after pleading guilty to one count of operating an illegal money transmitting business. Intercept was also fined an additional $500,000 to be paid to the Court. The conviction stems from Intercept’s processing of illegal short-term, high-interest consumer loans commonly known as “payday loans.”
Intercept is a North Dakota-based company that processes electronic funds transfers for its clients through the Automated Clearing House (“ACH”) system. The ACH system is an electronic payments network that processes financial transactions without using paper checks.
During Intercept’s guilty plea hearing, Intercept’s president, Bryan Smith, admitted that from May 2008 through August 2013, Intercept knowingly helped certain clients collect unlawful payday loans. Smith later testified at the racketeering and fraud trials of former client Charles M. Hallinan and Hallinan’s attorney, Wheeler K. Neff. Smith told the jury that Intercept helped Hallinan’s payday lending companies collect more than $490 million from borrowers living across the United States. The jury eventually convicted Hallinan and Neff of all charges.
United States District Judge Eduardo C. Robreno sentenced Hallinan to 14 years’ imprisonment and Neff to 8 years’ imprisonment. Another former Intercept client, Scott Tucker, was convicted of similar crimes in New York and sentenced to 200 months’ imprisonment.
Intercept’s role within the illegal payday lending networks was essential. Without Intercept’s use of the ACH system, the payday lenders would not have been able to collect nearly as much money from their usurious loans. Most of the loans involved in the scheme had annual interest rates exceeding 780 percent.
“Charles Hallinan, the so-called ‘Godfather of Payday Lending,’ made millions by preying on vulnerable victims, and Hallinan’s financial success was due, in large part, to Intercept’s willing participation in the scheme,” said U.S. Attorney McSwain. “The substantial forfeiture order the Court entered today sends a powerful message to companies who profit from doing business with criminals like Hallinan and Neff: my Office will use every law enforcement tool we have to hold you accountable under federal law.”
“Today's sentencing is a direct result of the excellent partnership we have with our law enforcement partners and the U.S. Attorney’s office,” said IRS-Criminal Investigation Special Agent in Charge Guy Ficco. “We will continue to be relentless in our mission to dismantle these types of illicit schemes and bring the criminals who run them to justice.”
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, and the U.S. Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.