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19 December 2018
Passaic County Man Sentenced to 27 Months in Prison for Trying to Bring Loaded Gun on Plane at Newark Liberty International AirportRead the Press Release
NEWARK, N.J. – A Totowa, New Jersey, man was sentenced today to 27 months in prison for knowingly possessing a firearm as a previously convicted felon and trying to bring a loaded gun onto a plane, U.S. Attorney Craig Carpenito announced.
Laron L. James, a/k/a/ “Juelz Santana,” 36, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to both counts of an indictment charging him with possession of a firearm by a convicted felon and carrying a weapon on an aircraft. Judge Chesler imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
James admitted that on March 9, 2018, he knowingly possessed a loaded Derringer .38 caliber handgun despite the fact he was prohibited from possessing firearms due to his December 2012 conviction in Bergen County Superior Court for manufacturing and distributing a controlled dangerous substance. James also admitted that on that date, he attempted to bring the loaded gun onto a flight from Newark to San Francisco. The gun was discovered during the X-Ray screening of James’s luggage before he could board the flight.
In addition to the prison term, Judge Chesler sentenced James to one year of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory Ehrie in Newark, and officers of the Port Authority Police Department, under the direction of Superintendent Edward Cetnar, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Desiree Grace Latzer of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
Defense counsel: Brian J. Neary Esq., Hackensack, New Jersey
Palm Beach Sales Representative Sentenced to Prison for Money Laundering Scheme Involving Alcohol and Drug Addiction Treatment Centers and Clinical LaboratoriesRead the Press Release
A top sales representative was sentenced to prison today for his participation in a money laundering conspiracy involving alcohol and drug addiction treatment centers and clinical laboratories.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Jimmy Patronis, Florida Chief Financial Officer; Michael J. Waters, Special Agent in Charge, Amtrak Office of Inspector General (Amtrak OIG); Isabel Colon, Regional Director, U.S. Department of Labor, Employee Benefits Security Administration (DOL-EBSA); Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB); and John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS) made the announcement.
Lanny Fried, 41, of Miami Beach, previously pled guilty to one count of conspiracy to commit money laundering. U.S. District Judge Robin L. Rosenberg sentenced Fried to 57 months in prison, to be followed by 3 years of supervised release. He was also ordered to pay a $81,163.17 fine.
According to court documents, Smart Lab LLC of Palm Beach Gardens was established by Chief Executive Officer H. Hamilton Wayne, a/k/a “Hawkeye,” and Chief Operating Officer Justin Morgan Wayne, to perform confirmatory urinalysis testing. Smart Lab, H. Wayne and J. Wayne established bank accounts to receive proceeds of insurance claims for medically unnecessary urinalysis testing and to pay kickbacks and bribes to individuals and entities that referred urine samples to Smart Lab for testing.
Fried, a top Smart Lab sales representative, had an agreement with Smart Lab to receive commissions of approximately 50% of the insurance reimbursements for the substance abuse treatment facilities he referred to Smart Lab. These payments were classified as commissions when in reality they were kickbacks for the referral of excessive, medically unnecessary, fraudulent and duplicative confirmatory drug testing. Fried served as the sales representative for Smart Lab’s largest account, Reflections Treatment Center in Margate, Florida. Fried used a portion of these commissions to pay Reflections’ owner, Kenneth Chatman, illegal cash kickbacks to induce him to continue referring urine samples to Smart Lab. Using Fried as a “middleman” for the payments to Chatman disguised the true ownership and purpose of the funds. From 2005 through 2017, Smart Lab paid Fried over $600,000. These payments came from proceeds of health care fraud.
Fried also recruited friends and business associates to engage in similar activity. These individuals signed employment agreements with Smart Lab that purported to make them “sales representatives”. These agreements were used to make it appear that monies paid to Fried and others were for services rendered. The employment contracts were created to hide the true purpose and recipient of the payments. Fried and the others involved did not perform any actual services for Smart Lab and they were paid “commissions” from the proceeds of health care fraud. These funds were then disbursed to others, per Fried’s instructions.
H. Hamilton, J. Wayne and Smart Lab previously pled guilty to one count of conspiracy to commit health care fraud. U.S. District Judge Donald M. Middlebrooks sentenced H. Wayne to 63 months in prison, J. Wayne to 46 months in prison, and the corporation to 3 years of probation. The three defendants were jointly and severally ordered to pay $2,897,389.50 in restitution to the victims of their offenses. H. Wayne was separately ordered to pay $954,344 to the TRICARE program for his involvement in fraud at RX to You, along with a $50,000 fine. J. Wayne was separately ordered to pay a $20,000 fine.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI, IRS-CI, Florida Division of Investigative and Forensic Services, Amtrak OIG, DOL-EBSA, NICB and DCIS. These and related cases are being prosecuted by Assistant U.S. Attorneys A. Marie Villafaña and Alexandra Chase.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov at www.usdoj.gov/usao/fls.
Otter Tail Country Violent Felon Charged with Illegal Possession of A FirearmRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging ANTHONY DALE RANDKLEV, 39, with illegally possessing a firearm. RANDKLEV has been previously convicted of multiple violent offenses, including assault, drug, and kidnapping convictions, which prohibit him, under federal law, from owning or possessing a firearm.
According to the indictment, on or about July 22, 2018, the defendant possessed a Remington model 870 12-gauge shotgun. If convicted of the federal charge, RANDKLEV faces a mandatory minimum sentence of 15 years in federal prison.
RANDKLEV is also indicted in Otter Tail County District Court on three counts of first-degree criminal sexual conduct, as well as one count each of kidnapping, first-degree burglary, false imprisonment, felon in possession of a firearm, and fleeing a police officer. He is currently in custody in the Otter Tail County Jail.
This case is the result of an investigation conducted by the ATF, the Otter Tail County Sheriff’s Office, the Minnesota Bureau of Criminal Apprehension, and the Otter Tail County Attorney’s Office. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime.
Assistant U.S. Attorney Joseph H. Thompson is prosecuting the case.
Defendant Information:
Anthony Dale Randklev, 39
Pelican Rapids, Minn.
Charges:
- Felon in Possession of a Firearm, 1 count
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The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Nine Alleged MS-13 Members Charged in Violent Racketeering ConspiracyRead the Press Release
A federal grand jury returned a seventh superseding indictment Monday charging nine men in connection with a conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13.
Charged in the seven-count superseding indictment are Junior Noe Alvarado-Requeno, aka “Insolente,” and “Trankilo,” 22, of Landover, Maryland; Michael Eduardo Contreras, aka “Katra,” and “Insoportable,” 24, of Silver Spring, Maryland; Luis Fernando Orellana-Estrada, aka “Pinguino,” 19, of Hyattsville, Maryland; Kevin Alexander Soriana-Hernandez, aka “Brocha,” 19, of Riverdale, Maryland; Carlos Daniel Cardenas-Banegas, aka “Perrico,” 20, of Riverdale, Maryland; Wilfredo Cardenas-Banegas, aka “Torro,” 25, of Riverdale, Maryland; Luis Arnoldo Flores-Reyes, aka “Maloso,” and “Lobo,” 37, of Arlington, Virginia; Miguel Angel Corea Diaz, aka “Reaper,” 36, of Long Branch, New Jersey, Jairo Arnaldo Jacome, aka “Abuelo,” 36, of Langley Park, Maryland.
Assistant Attorney General Brian A. Benczkowski for the Justice Department’s Criminal Division, U.S. Attorney Robert K. Hur for the District of Maryland, Assistant Director in Charge Nancy McNamara of the FBI Washington Field Office, Special Agent in Charge Gordon B. Johnson of the FBI Baltimore Field Office, Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore Field Office, Acting Special Agent in Charge Scott Hoernke of the U.S. Drug Enforcement Administration (DEA) Washington Field Division, 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 Aisha Braveboy and Montgomery County State’s Attorney John McCarthy made the announcement.
The superseding indictment alleges that from at least prior to in or about 2015 through at least in or about January 2018, the defendants, as members and associates of MS-13, engaged in a racketeering conspiracy that included extortion, drug trafficking, money laundering, robbery, murder, and conspiracy to commit murder. Jacome was a member and associate of the Langley Park Salvatrucha Clique of MS-13. All other defendants were members and associates of the Sailors Clique of MS-13.
Alvarado-Requeno, Contreras, Orellana-Estrada, Soriana-Hernandez, Wilfredo Cardenas-Banegas, Carlos Cardenas-Banegas, and Flores-Reyes were charged in a previous indictment with conspiracy to participate in a racketeering enterprise for their alleged involvement in a variety of violent acts taken by the Sailors Clique of MS-13, including multiple murders. Corea Diaz and Jacome are also charged with RICO conspiracy in the seventh superseding indictment, in which additional murders have been charged. Specifically, the indictment charges that in June 2016, Alvarado-Requeno and Contreras allegedly planned with and directed other members and associates of MS-13 to search for and murder gang rivals known as “chavalas” in and around Hyattsville, Maryland. On June 8, 2016, Alvarado-Requeno and Contreras directed lower-ranking members of MS-13 to murder two individuals who were believed to be members of the 18th Street gang. Pursuant to this plan and as directed by Alvarado-Requeno and Contreras, MS-13 members and associates stabbed the two victims to death in Hyattsville, Maryland.
The indictment further charges that, on Dec. 4, 2016, Alvarado-Requeno, Contreras, Jacome and other members and associates of MS-13 allegedly traveled to Germantown, Maryland with a machete and other weapons with the purpose of murdering an individual as punishment for his infractions against the gang. They stabbed the victim to death, but fled the area leaving the victim’s body near a creek. The next day, Jacome and other members and associates of MS-13 returned to Germantown to bury the body of the victim.
The indictment further charges that, on March 27, 2017, Contreras, Alvarado-Requeno, Flores-Reyes, and Corea-Diaz allegedly arranged for members and associates of the Sailors Clique to travel from Maryland to Lynchburg, Virginia for the purpose of murdering an individual in the Lynchburg area. Flores-Reyes provided the vehicle in which the members and associates drove and called them to provide encouragement to murder the victim. The victim was murdered that same day in Bedford County, Virginia. On March 27 and March 28, 2017, multiple individuals were arrested in connection with the murder. Contreras, Alvarado-Requeno, Flores-Reyes, and Corea-Diaz made phone calls on those dates trying to locate the individuals who had gone to Virginia to commit the murder. Two of the participants in the murder escaped from Bedford County and were hidden in Maryland by members and associates of the Sailors Clique.
In addition to the new charges in the RICO conspiracy, Alvarado-Requeno, Contreras and Jacome are charged in the superseding indictment with murder in aid of racketeering and conspiracy to commit murder in aid of racketeering in connection with the Dec. 4, 2016 murder. Alvarado-Requeno is also charged in the superseding indictment with murder in aid of racketeering and conspiracy to commit murder in aid of racketeering in connection with a Gaithersburg, Maryland murder that took place on June 16, 2016. Jacome is charged with conspiracy to interfere with interstate commerce by extortion. All defendants are in custody.
According to the superseding indictment, MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
FBI Washington and Baltimore Field Offices, HSI Baltimore, DEA Washington Field Office, the Prince George’s County Police Department, the Montgomery County 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.
Nine Alleged MS-13 Members Charged Federally for Their Participation in a Violent Racketeering ConspiracyRead the Press Release
Greenbelt, Maryland –A federal grand jury returned a seventh superseding indictment on December 17, 2018, charging nine men in connection with a conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13. The seventh superseding indictment adds two new defendants charged with racketeering conspiracy related to their membership in MS-13, and adds four murders as overt acts allegedly committed by the defendants charged in this indictment.
Charged in the seven-count superseding indictment are Junior Noe Alvarado-Requeno, a/k/a “Insolente,” and “Trankilo,” age 22, of Landover, Maryland; Michael Eduardo Contreras, a/k/a “Katra,” and “Insoportable,” age 24, of Silver Spring, Maryland; Luis Fernando Orellana-Estrada, a/k/a “Pinguino,” age 19, of Hyattsville, Maryland; Kevin Alexander Soriana-Hernandez, a/k/a “Brocha,” age 19, of Riverdale, Maryland; Carlos Daniel Cardenas-Banegas, a/k/a “Perrico,” age 20, of Riverdale, Maryland; Wilfredo Cardenas-Banegas, a/k/a “Torro,” age 25, of Riverdale, Maryland; Luis Arnoldo Flores-Reyes, a/k/a “Maloso,” aka “Lobo,” age 37, of Arlington, Virginia; Miguel Angel Corea Diaz, a/k/a “Reaper,” age 36, of Long Branch, New Jersey; and Jairo Arnaldo Jacome, a/k/a “Abuelo,” age 36, of Langley Park, Maryland.
The superseding indictment 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; Assistant Director in Charge Nancy McNamara of the FBI Washington Field Office; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore Field Office; Acting Special Agent in Charge Scott Hoernke of the U.S. Drug Enforcement Administration (DEA) Washington Field Division; 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 Aisha Braveboy; and Montgomery County State’s Attorney John McCarthy.
The superseding indictment alleges that from prior to 2015 through at least January 2018, the defendants, as members and associates of MS-13, engaged in a racketeering conspiracy that included extortion, drug trafficking, money laundering, murder, conspiracy to commit murder, and robbery. Jacome was a member and associate of the Langley Park Salvatrucha Clique of MS-13. All other defendants were members and associates of the Sailors Clique of MS-13.
Alvarado-Requeno, Contreras, Orellana-Estrada, Soriana-Hernandez, Wilfredo Cardenas-Banegas, Carlos Cardenas-Banegas, and Flores-Reyes were charged in a previous indictment with conspiracy to participate in a racketeering enterprise for their involvement in a variety of violent acts committed by the Sailors Clique of MS-13, including multiple murders.
The new defendants and charges added in the seventh superseding indictment include the following:
First, alleged MS-13 members Corea Diaz and Jacome have been added as defendants, and are now charged with RICO conspiracy in the seventh superseding indictment.
Second, the seventh superseding indictment now references four additional murders as overt acts taken in furtherance of the racketeering conspiracy:
• Specifically, the indictment charges that in June 2016, Alvarado-Requeno and Contreras planned with and directed other members and associates of MS-13 to search for and murder gang rivals known as “chavalas” in and around Hyattsville, Maryland. On June 8, 2016, Alvarado-Requeno and Contreras directed lower-ranking members of MS-13 to murder two individuals who were believed to be members of the rival 18th Street gang. Pursuant to this plan and as directed by Alvarado-Requeno and Contreras, MS-13members and associates stabbed the two victims to death.
• Alvarado-Requeno, Contreras, Jacome also are now charged in the 2016 murder of a victim in Germantown, Maryland. On Dec. 4, 2016, Alvarado-Requeno, Contreras, Jacome and other members and associates of MS-13 traveled to Germantown with a machete and other weapons with the purpose of murdering an individual as punishment for his infractions against the gang. They stabbed the victim to death, but fled the area leaving the victim’s body near a creek. The next day, Jacome and other members and associates of MS-13 returned to Germantown to bury the body of the victim.
• Contreras, Alvarado-Requeno, Flores-Reyes, and Corea-Diaz also are now charged in the 2017 murder of a victim in Lynchburg, Virginia. On March 27, 2017, Contreras, Alvarado-Requeno, Flores-Reyes, and Corea-Diaz arranged for members and associates of the Sailors Clique to travel from Maryland to Lynchburg for the purpose of murdering an individual in the Lynchburg area. Flores-Reyes provided the vehicle in which the members and associates drove and called them to provide encouragement to murder the victim. The victim was murdered that same day in Bedford County, Virginia. On March 27 and March 28, 2017, multiple individuals were arrested in connection with the murder. Contreras, Alvarado-Requeno, Flores-Reyes, and Corea-Diaz made phone calls on those dates trying to locate the individuals who had traveled to Virginia to commit the murder. Two of the participants in the murder escaped from Bedford County and were hidden in Maryland by members and associates of the Sailors Clique.
In addition to the new charges in the RICO conspiracy, Alvarado-Requeno, Contreras, Jacome are charged in the superseding indictment with murder in aid of racketeering and conspiracy to commit murder in aid of racketeering in connection with the Dec. 4, 2016 murder. Alvarado-Requeno is also charged in the superseding indictment with murder in aid of racketeering and conspiracy to commit murder in aid of racketeering in connection with a Gaithersburg, Maryland murder that took place on June 16, 2016. Jacome is charged with conspiracy to interfere with interstate commerce by extortion. All defendants are in custody.
According to the superseding indictment, MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Robert K. Hur and Assistant Attorney General Brian A. Benczkowski thanked the FBI Washington and Baltimore Field Offices, HSI Baltimore, the DEA Washington Field Office, the Prince George’s County Police Department, the Montgomery County Police Department, the Prince George’s State’s Attorney’s Office, the Hyattsville Police Department, and the Montgomery County State’s Attorney’s Office for their work in this investigation. Mr. Hur and Mr. Benczkowski commended Assistant U.S. Attorneys William D. Moomau and Catherine K. Dick and Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section, who are prosecuting this case.
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New York Resident Pleads Guilty to Employment Tax FraudRead the Press Release
A Suffolk County, New York, resident pleaded guilty today to failing to account for and pay over employment taxes to the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, Scott Warner owned and operated a temporary employment agency in Suffolk County, New York, that did business under multiple names, including Around the Clock Staffing Inc., Your Staffing Service Inc., Your Staffing Services Inc., Revlis Consulting Corp., and City Consulting Corp. Warner was responsible for withholding federal income tax, Social Security and Medicare taxes from his employees’ wages, paying the taxes over to the IRS, and filing employment tax returns. Despite this obligation, Warner failed to pay over to the IRS approximately $687,480 withheld from employee wages from Oct. 2012 through Dec. 2016.
Warner faces a maximum sentence of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Mark Kotila and Ann M. Cherry, who are prosecuting this case.
Navy Veteran Charged with Kidnapping Resulting in DeathRead the Press Release
NORFOLK, Va. – A federal grand jury returned an indictment today charging Navy veteran Eric Brian Brown with kidnapping resulting in the death of Ashanti M. Billie, a 19-year-old Virginia Beach college student.
According to allegations in the indictment, Brown, 46, abducted Billie in September 2017 on the Joint Expeditionary Base Little Creek-Fort Story. Brown then transported Billie against her will and across state lines from Virginia to North Carolina. Billie died as a result of the kidnapping.
If convicted of kidnapping resulting in death, Brown faces a maximum penalty of death and a mandatory minimum sentence of life in prison. Brown is also charged with assault resulting in serious bodily injury and theft. If convicted of those two offenses, he faces a maximum penalty of 15 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors and requirements.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Cliff Everton, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office; Larry D. Boone, Chief of Norfolk Police; James A. Cervera, Chief of Virginia Beach Police; and Kerr Putney, Chief of Charlotte-Mecklenburg Police, made the announcement after the indictment was returned. Assistant U.S. Attorneys Kevin M. Comstock, Randy C. Stoker and William B. Jackson are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
N.Y. Man Convicted for Knowingly Passing Counterfeit MoneyRead the Press Release
PROVIDENCE – A Bronx, New York man was convicted in U.S. District Court in Providence today of passing counterfeit money in September 2017 in stores at a Cranston shopping center.
Christopher Modesto, 22, was found guilty by U.S. District Court Chief Judge William E. Smith of passing counterfeit obligations or securities. The verdict was announced immediately following the completion of a bench trial that began earlier in the day.
Modesto’s guilty verdict is announced by United States Attorney Stephen G. Dambruch, Cranston Police Chief Colonel Michael J. Winquist, and Special Agent in Charge of the U.S. Secret Service Stephen Marks.
According to court documents, on September 29, 2017, Modesto and two unidentified accomplices passed a total of $5,000 worth of counterfeit $100 bills to successfully make purchases at a number of retail stores. The government’s evidence showed that Modesto passed counterfeit $100 bills at at least three retail stores, of which two attempts were successful.
Cranston Police were notified by shopping center security that several stores were experiencing incidents of counterfeit cash being passed to cashiers. Based on a description of one of the individuals provided by some store employees, Modesto was located inside a store and was seen attempting to make a purchase using a counterfeit $100 bill. He was immediately arrested by Cranston Police.
It was the third store Modesto is known to have passed counterfeit $100 bills on that day. One other attempt was successful. Another attempt was unsuccessful when a cashier refused to accept the bogus $100 bills.
Modesto is scheduled to be sentenced on March 22, 2019. Uttering counterfeit obligations or securities is punishable by statutory penalties of up to 20 years imprisonment, not more than 3 years supervised release, and a fine of up to $250,000.
Modesto, who had been free on unsecured bond while awaiting trial, was ordered remanded to the custody of the U.S. Marshals Service and detained while awaiting sentencing.
The case is being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and Richard B. Myrus.
The matter was investigated by the Cranston Police Department and the United States Secret Service.
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Moss Point Man Sentenced to over Nine Years in Federal Prison for Crack and Cocaine ConspiracyRead the Press Release
Gulfport, Miss. – Thomas Earl Armstrong, 42, of Moss Point, was sentenced yesterday by U.S. District Judge Louis Guirola, Jr. to 109 months in federal prison, followed by 3 years of supervised release, for conspiracy to possess with intent to distribute cocaine and cocaine base, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation (FBI) in Mississippi. Armstrong was also ordered to pay a $5,000 fine. He pled guilty before Judge Guirola on July 31, 2018.
The FBI Safe Streets Task Force in Pascagoula started investigating Armstrong after learning he was involved with selling narcotics in Jackson County. Among other things, the FBI used a confidential informant to purchase cocaine and crack from Armstrong on at least three separate occasions. During the investigation, agents learned Armstrong was selling narcotics to numerous individuals. It was also learned that Armstrong instructed individuals to come to his house in Moss Point where he would sell them crack or cocaine.
The case was investigated by the FBI Safe Streets Task Force and the South Mississippi Metro Enforcement Team. It was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Moss Point Man Sentenced to Nearly 20 Years in Federal Prison for Cocaine ConspiracyRead the Press Release
Gulfport, Miss. – Keith Lavell Brown, 46, of Moss Point, was sentenced today by U.S. District Judge Louis Guirola, Jr. to 235 months in federal prison, followed by 5 years of supervised release, for conspiring to possess with intent to distribute 5 kilograms or more of cocaine, announced U.S. Attorney Mike Hurst, DEA Assistant Special Agent in Charge Derryle Smith, and FBI Special Agent in Charge Christopher Freeze. Brown was also ordered to pay a $35,000 fine.
During his plea on August 15, 2018, Brown admitted to being involved in a conspiracy to bring cocaine to the Mississippi Gulf Coast starting in 2015 until August 2017. On one occasion, in March 2016, Brown’s cousin was stopped in Louisiana and, upon his arrest, Louisiana State Police located 15 kilograms of cocaine inside his vehicle. During the DEA and FBI’s investigation, they determined that Brown had conspired with his cousins and others to have the cocaine brought from Texas to Mississippi. Brown and another individual with Mexican cartel connections actually followed his cousin’s vehicle prior to it being stopped.
After the stop in Louisiana, another individual was stopped in Mississippi driving an RV. During the stop, the RV was searched and law enforcement located 11 kilograms of cocaine hidden inside. During the investigation into the stop of the RV, DEA and FBI agents learned that the kilograms of cocaine were supposed to be delivered to Brown and others in Moss Point. Further information and evidence also showed that the cocaine located in the RV was not the driver’s first time to deliver cocaine to Brown. The driver had previously had a successful delivery of 13 kilograms of cocaine to Brown.
In total, the Court held Brown accountable for 49 kilograms of cocaine during the period of the conspiracy.
The case was investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Morris County, New Jersey, Man Sentenced to One Year in Prison for Conspiring to Commit Strong-Arm ExtortionRead the Press Release
NEWARK, N.J. – A Kenvil, New Jersey, man was sentenced today to 12 months and one day in prison for conspiring with a former Middlesex Borough fire inspector to use threats of violence to extort cash payments from the owner of a real estate development company, U.S. Attorney Craig Carpenito announced.
Joseph P. Martinelli, 65, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with conspiring to commit extortion using threats of force, violence, and fear. Judge Arleo imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
From December 2016 through June 2017, Martinelli conspired with Billy A. Donnerstag, 49, of Hackettstown, New Jersey, then a fire inspector for Middlesex Borough and other New Jersey municipalities, to extort the owner and operator of a real estate development and construction company, referred to in the information as “Individual 1,” using threats of physical harm if Individual 1 did not pay Martinelli and Donnerstag thousands of dollars.
Martinelli and Donnerstag agreed that the pretext for demanding money would be that Individual 1 supposedly didn’t pay enough for a property he bought from Martinelli in 2007. In a series of telephone and in-person conversations with Individual 1, Martinelli and Donnerstag demanded money from Individual 1 by suggesting that Individual 1 would be physically harmed by Donnerstag if Individual 1 refused.
Martinelli and Donnerstag obtained $15,000 in cash from Individual 1 over two separate meetings. The cash had been provided by the FBI. Donnerstag previously pleaded guilty and was sentenced on Oct. 23, 2018, to 34 months in prison.
In addition to the prison term, Judge Arleo sentenced Martinelli to three years of supervised release, one year of which will be home incarceration.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing.The government is represented by Assistant U.S. Attorney Lee M. Cortes Jr., Deputy Chief of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Brian N. DiGiacomo Esq., Madison, New Jersey
Morgan County Sheriff Agrees to Plead Guilty to Failure to File a Tax ReturnRead the Press Release
BIRMINGHAM – Morgan County Sheriff ANA WOODARD FRANKLIN has been charged in a one-count information charging failure to file a tax return announced U.S. Attorney Jay E. Town and IRS-Criminal Investigation Special Agent in Charge Thomas J. Holloman.
A one-count information filed in United States District Court today, charges ANA WOODARD FRANKLIN, 54, of Hartsell, with willfully failing to file a personal income tax return for tax year 2015.
“We expect all of our citizens, to include and especially our public officials to promptly and accurately file their tax returns,” Town said. “The Department of Justice will continue to federally charge those who fail to do so. We appreciate the investigative work of IRS-CID and FBI Birmingham.”
"As we approach the tax filing season, this case should be an example of what happens when you fail to file and pay your taxes,” Holloman said. “Doing so may subject you to significant penalties, fines, and the possibility of jail time.”
The penalty for willfully failing to file a tax return is a maximum of 1 year in prison and a maximum fine of $100,000.
IRS-CID investigated the case along with FBI Birmingham. Assistant U.S. Attorney Robert O. Posey is prosecuting.
Mishawaka Indiana Man SentencedRead the Press Release
SOUTH BEND - Jerome Sells, age 40, of Mishawaka, Indiana, was sentenced before South Bend District Court Judge Robert L. Miller, Jr. for possession of over 500 grams of methamphetamine with intent to distribute and being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Sells was sentenced to 180 months imprisonment followed by 5 years of supervised release.
According to documents in this case, on February 28, 2018, Sells possessed 790 grams of methamphetamine as well as 1.2 kilograms of marijuana, a Taurus handgun and a Jimenez handgun at an auto shop that he operated in Mishawaka, Indiana. He admitted that he intended to distribute the methamphetamine and that he knew it was illegal for him to possess the firearms because he had previously been convicted of a felony. Sells has been convicted of ten misdemeanors and three felonies.
This case is being investigated by ATF with the assistance of the Indiana State Police, Elkhart County Police, St. Joseph County Police, the St. Joseph County Drug Investigations Unit, the South Bend Police, and the Mishawaka Police. The case is being handled by Assistant U.S. Attorney Joel Gabrielse.
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Milwaukee, WI, Man Sentenced for His Role in a Drug Conspiracy Resulting in Death and Serious Bodily InjuryRead the Press Release
FARGO: United States Attorney Christopher C. Myers announces that on December 18, 2018, U.S. District Judge Mark W. Bennett, Northern District of Iowa, sitting by designation, sentenced JOVAN MARQUIS HARRIS, age 28, of Milwaukee, WI, on a charge of Conspiracy to Possess with Intent to Distribute and Distribute a Controlled Substance Resulting in Death and Serious Bodily Injury; three counts of Distribution of a Controlled Substance Resulting in Death or Serious Bodily Injury; and two counts of Distribution of a Controlled Substance. Judge Bennett sentenced Harris to a period of 25 years in federal prison on each of four counts related to distributing heroin resulting in death or serious bodily injury, and 20 years on the final two counts, all of the sentences to be served concurrently. Harris was also ordered to pay $10,715.41 in restitution for funeral expenses, $600 in special assessments, and will serve 5 years of supervised release after his incarceration.
Law enforcement’s investigation into a spike in the heroin overdose deaths of individuals in the Fargo-Moorhead area between September 2015 and April 2016 resulted in the indictment of Harris for the overdose death of one person in Moorhead, MN, on September 1, 2015, and the non-fatal overdoses of two individuals in Fargo, ND, on August 27 and September 1, 2015. Harris also sold heroin on two occasions in March 2016 to a confidential informant in Fargo, ND. The heroin Harris was distributing was brought to the Fargo-Moorhead area from Milwaukee, WI.
Harris was convicted by a Fargo jury on May 14, 2018, following a six-day trial.
U.S. Attorney Myers stated, "As we are painfully aware, many families in our community have been ripped apart by the scourge of opiates. We will continue to aggressively pursue those individuals who seek to profit from the death and destruction of drug trafficking. The sentence in this case sends another strong message that in North Dakota drug traffickers will be held accountable. We must not lose sight of the fact that this is a community-wide problem that needs a community solution - everyone must continue the fight, together. I want to commend the excellent work of this team of prosecutors, support staff, and law enforcement in bringing some measure of justice for the victims in this case.”
This case was investigated by the Drug Enforcement Administration, Moorhead Police Department, Cass County Drug Task Force, Cass County Sheriff’s Office, and North Dakota Bureau of Criminal Investigation, with assistance from Cass County State’s Attorney, North Dakota Crime Lab, Minnesota BCA Crime Lab, and Ramsey County (MN) Medical Examiner.
This case was prosecuted by Assistant U.S. Attorney Brett Shasky and Assistant U.S. Attorney Jake Rodenbiker
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http://www.usdoj.gov/usao/nd/
Michigan Corrugated Manufacturer Agrees to Pay $400,000 to Settle False Claims Act ViolationsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Arvco Container Corporation of Kalamazoo, Michigan has agreed to pay the United States $400,000 to settle False Claims Act allegations in connection with a contract with the Defense Logistics Agency Acquisition Operations (DLA) in New Cumberland, Pennsylvania.
According to United States Attorney David J. Freed, Arvco Container Corporation (Arvco) violated subcontract limitations imposed by federal regulations and the terms of a contract to provide corrugated boxes to the federal government from August 3, 2010 through August 3, 2014. The contract was awarded by the DLA in New Cumberland, Pennsylvania to Fibre Technologies LLC (Fibre) located in Reading, Pennsylvania. The contract was set-aside for eligible HUBZone small businesses in accordance with program requirements administered by the U.S. Small Business Administration. Federal regulations and the terms of the contract limited Fibre’s ability to subcontract the manufacturing of the boxes to no more than 50 percent. Arvco performed 100 percent of the manufacturing requirement. Arvco’s gross profits for the performance of the Contract total $246,682 which will be returned to DLA. Arvco also agreed to pay a civil penalty amount of $153,318.
“I commend the dogged investigative efforts of our partners at SBA/OIG and DCIS in this case,” said U.S. Attorney Freed. “Their outstanding efforts and the excellent legal work by AUSA Timothy Judge have ensured that Arvco’s ill-gotten profits have been returned, and an appropriate penalty has been assessed to deter other contractors from this behavior in the future. The United States Attorney’s office is steadfastly dedicated to protecting the resources entrusted to us by the taxpayers.”
“Limitations on subtracting ensure that otherwise ineligible businesses don’t use small or disadvantaged businesses merely as vehicles to access set-aside contracts,” said Inspector General Hannibal “Mike” Ware. “OIG will aggressively investigate violations of limitations on subcontracting to protect the integrity of SBA’s set-aside contracting programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their leadership and dedication throughout this investigation.”
"Today's settlement agreement is the successful result of a joint investigative effort by the U.S. Attorney's Office, SBA-OIG and the Defense Criminal Investigative Service (DCIS)," stated Special Agent-in-Charge Leigh-Alistair Barzey, DCIS Northeast Field Office. "DCIS will continue to work with its law enforcement partners to ensure the integrity of the Defense procurement process."
SBA’s General Counsel Christopher Pilkerton said, “The settlement in this matter demonstrates the excellent results achieved through the combined efforts of federal agencies to uncover and forcefully respond to procurement fraud. SBA is strongly committed to identifying and aggressively pursuing instances of fraud perpetrated by those participating in SBA’s procurement programs."
This case was investigated by the United States Attorney’s Office for the Middle District of Pennsylvania, the U.S. Small Business Administration Office of Inspector General, and the Defense Criminal Investigative Service. The case was litigated by Assistant United States Attorney Timothy S. Judge.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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McAllen Man Sent to Prison in Health Care Fraud ConspiracyRead the Press Release
McALLEN, Texas – An operator of a durable medical equipment (DME) company was ordered to federal prison following his admission of defrauding Medicaid, announced U.S. Attorney Ryan K. Patrick. George Louis Moreno, 59, of McAllen, pleaded guilty Jan. 24, 2018.
Today, U.S. District Judge Micaela Alvarez handed Moreno a 36-month sentence to be immediately followed by three years of supervised release. Moreno was also ordered to pay approximately $1.5 million in restitution to the Texas Medicaid Program.
Moreno was the owner and operator of MARS DME Inc. located in McAllen. From August 2008 to January 2016, Moreno submitted numerous false and fraudulent claims for incontinence supplies, resulting in approximately $1.5 million loss to Medicaid. Specifically, Moreno submitted claims for incontinence supplies that were not delivered to beneficiaries. In many instances, Moreno billed Medicaid for large quantities of higher-reimbursing incontinence supplies, when in fact the company was delivering smaller quantities of inexpensive supplies to recipients. Moreno also paid cash to some beneficiaries in lieu of delivering supplies.
Moreno was permitted to remain on bond and voluntarily surrender Jan. 2, 2019.
The Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services‐Office of Inspector General, FBI and Texas health and Human Services Commission conducted the investigation. Assistant U.S. Attorney (AUSA) Andrew Swartz and Special AUSA Marian Swanberg are prosecuting the case.
Manhattan U.S. Attorney Announces Bank Secrecy Act Charges Against Kansas Broker DealerRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced criminal charges against Central States Capital Markets, LLC (“CSCM”), consisting of one felony violation of the Bank Secrecy Act (“BSA”), based on CSCM’s willful failure to file a suspicious activity report (“SAR”) regarding the illegal activities of its customer Scott Tucker. Today’s charge represents the first criminal BSA charge ever brought against a United States broker-dealer. The case is assigned to United States District Judge Paul J. Oetken.
Mr. Berman also announced an agreement (the “Agreement”) under which CSCM agreed to accept responsibility for its conduct by stipulating to the accuracy of an extensive Statement of Facts, pay a $400,000 penalty, and continue to enhance its BSA/Anti-Money Laundering (“AML”) compliance program. Assuming CSCM’s continued compliance with the Agreement, the Government has agreed to defer prosecution for a period of two years, after which time the Government will seek to dismiss the charges. The penalty shall be collected through CSCM’s forfeiture to the United States of $400,000 in a civil forfeiture action also filed today.
U.S. Attorney Geoffrey S. Berman stated: “CSCM’s anti-money laundering program was operated with serious gaps in oversight, responsiveness, and diligence. As a result, CSCM failed to investigate and report suspicious transactions relating to a historically significant pay-day lending fraud. With today’s resolution, CSCM has accepted responsibility for its criminal conduct and committed to completing the reform of its anti-money laundering program. Today’s charge makes clear that all actors governed by the Bank Secrecy Act – not only banks – must uphold their obligations to protect our economy from exploitation by fraudsters and thieves.”
According to the documents filed today in Manhattan federal court:
The Tucker Payday Lending Scheme
On October 13, 2017, Scott Tucker and his attorney, Timothy Muir, were convicted after trial in the United States District Court for the Southern District of New York of racketeering, wire fraud and money laundering for their roles in perpetrating a massive payday lending scheme. As the jury found, from in or about the late 1990s through in or about 2013, through various companies that he owned and controlled (the “Tucker Payday Lenders”), Tucker extended short-term, high-interest, unsecured loans, commonly referred to as “payday loans,” to individuals around the country at interest rates as high as 700% or more and in violation of the usury laws of numerous states, including New York. Tucker sought to inoculate himself against applicable usury laws by entering into a series of sham relationships with certain Native American tribes (the “Tribes”) in order to conceal his ownership and control of the Tucker Payday Lenders and gain the protection of tribal sovereign immunity – a legal doctrine that generally prevents states from enforcing their laws against Native American tribes. To effectuate his scheme, Tucker assigned nominal ownership of his payday lending companies to certain corporations created under the laws of the tribes (the “Tribal Companies”).
CSCM’s Willful Failure to File a SAR in Violation of the BSA
CSCM failed to follow its written customer identification procedures and did not act upon red flags prior to opening investment accounts for the Tribal Companies, which were in fact controlled by Tucker. CSCM discussed opening these accounts exclusively with Scott Tucker and his brother Blaine (the “Tuckers”). Although CSCM received account opening documents signed by tribal officials granting only Blaine Tucker authorization over the accounts, CSCM routinely dealt with and took direction from Scott Tucker concerning the management of funds in the Tribal Companies’ accounts based solely on Scott Tucker’s oral assertions that he was a “consultant” to the Tribes. At no point did CSCM obtain written verification of Tucker’s authority over the accounts.
CSCM also disregarded red flags that were known prior to opening the accounts. In March 2012, Tucker explained to the CEO that he was involved in the payday lending business and that he had approached certain Native American tribes to operate the payday lending business in order to take advantage of the tribes’ sovereign immunity. Tucker further explained that the payday lending business had generated large cash reserves and that he was approaching CSCM because the business’s existing bank, a small bank based in Florida (the “Florida Bank”), had asked Tucker to move excess accumulations of cash because of certain regulatory requirements it was unable to meet. Neither the CEO, nor anyone at CSCM, attempted to verify this explanation.
Shortly thereafter, CSCM also became aware of additional red flags concerning the Tuckers and the Tribal Companies. Specifically, CSCM learned that Tucker had been convicted of fraud in 1991 and, separately, found news reports from as early as 2011 alleging that the Tuckers were engaging in a “rent-a-tribe” scheme in which the Tribal Companies were used by the Tuckers to claim ownership and control over the payday lending businesses in order to exploit the Tribal Companies’ ability to assert sovereign immunity as a defense to charges that the payday lending business violated state usury laws. CSCM also became aware of an action brought by the Federal Trade Commission (“FTC”) against the Tuckers and the Tribal Companies, among others, for engaging in unfair business practices, which included allegations that the Tribal Companies were not protected by sovereign immunity. CSCM, including its CEO, did not act upon these red flags because Tucker assured CSCM that the FTC action would soon be resolved and all challenges brought by state regulators had been unsuccessful due to sovereign immunity.
In addition to ignoring these various warning signals, CSCM failed to monitor any transactions using Actimize, the AML tool provided to CSCM for that purpose. Between December 2011 and December 2015, Actimize generated 103 alerts, but CSCM never checked any of the alerts, made any attempt to customize Actimize’s default parameters, or undertook a review to ensure that this tool was sufficient for its specific monitoring needs or was being appropriately utilized. Further, although the Clearing Firm furnished CSCM with the ability to generate a report reflecting, among other things, the identities of third parties transferring funds via wire transactions to CSCM account holders, CSCM never generated such reports.
Numerous suspicious transactions went undetected and unreported by CSCM. For example, between December 21, 2012, and March 13, 2013, 18 wire transfers totaling $40,518,000 were sent from accounts at the Florida Bank in the names of Tribal Companies to Tucker’s personal CSCM account. The transfers were in even dollar amounts, and on several occasions two different Tribal Companies, associated with different tribes, transferred the same dollar amounts, on the same day, to Tucker’s personal CSCM account. CSCM never asked Tucker or the Tribal Companies about any of these transactions.
Despite producing documents in connection with this Office’s criminal investigation and its awareness of the indictment against Tucker, CSCM did not file a SAR until long after Tucker was convicted at trial.
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The Government intends to recommend that the amounts forfeited by CSCM be distributed to victims of Tucker’s scheme, consistent with the applicable Department of Justice regulations, through the ongoing remission process.
Mr. Berman praised the outstanding investigative work of the Special Agents at the United States Attorney’s Office and thanked the Securities and Exchange Commission for its assistance with the investigation.
The prosecution is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorney Andrew C. Adams is in charge of the prosecution.
Man Pleads Guilty to Role in Two Bank RobberiesRead the Press Release
NEWPORT NEWS, Va. – A Newport News man pleaded guilty today to his role in two bank robberies.
“Hudgins is a violent criminal who poses a danger to our communities and those in law enforcement trying to keep us safe,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “His significant criminal history includes grand larceny, hit and run, and now bank robbery. With the assistance of our local, state, and federal law enforcement partners, we are committed to removing violent criminals like Hudgins from our streets.”
According to court documents, Russell Hudgins, 34, and his co-defendant, Roscoe Freeman, 33, conspired to rob two banks in the Tidewater area. On May 16, Hudgins went into Citizens and Farmers Bank in Yorktown wearing a black knit cap, a tattoo sleeve, and a fake brown beard. Hudgins made a verbal demand for money from the teller and stated “You know what time it is. Give me 10s, 20s and large.” The total loss to the bank was $1,786.00.
Two days later, Hudgins entered Old Point National Bank in Isle of Wight County wearing a tattoo sleeve and a beard. Hudgins made a verbal demand for all the money in the teller’s drawer and left the bank with $1,629 and a GPS tracker. In both robberies Freeman acted as a getaway driver. Freeman was apprehended by law enforcement after a vehicle pursuit, while Hudgins ran away from the scene and hid from police until he was caught at his residence later that day.
Hudgins was previously convicted in 2007 of armed carjacking and possession of a firearm in furtherance of a crime of violence, and was on federal supervision at the time of the robberies. Hudgins has also previously been convicted of grand larceny, contempt of court, and hit and run.
Hudgins pleaded guilty to two counts of bank robbery and faces a maximum penalty of 40 years in prison when sentenced on April 15, 2019. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the plea. Assistant U.S. Attorney Megan M. Cowles is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:18-cr-78.
Man Indicted for Financial Fraud and Possessing ATM Skimming DeviceRead the Press Release
FORT WAYNE –Dumitru Tirlea, 46, of Nottingham, United Kingdom had a two count indictment returned against him for attempting to defraud a financial institution and possessing access device making equipment, announced U.S. Attorney Kirsch.
According to documents in the case, on or about November 28, through 30, 2018, Tirlea attempted to execute a scheme to defraud a federally insured financial institution. Law enforcement has been investigating several reports of skimming devices being placed on bank ATMS as well as gas station credit card readers at gas pumps. The device captures and stores the credit and debit card numbers of unsuspecting victims. Subsequently the device is removed and the stored information is used to produce fraudulent credit/debit cards for unauthorized transactions.
In this case, a financial institution in Warsaw, Indiana reported finding a device on their ATM on November 28, 2018. Law enforcement conducted surveillance on the affected ATM. On November 30, Tirlea pulled up on the ATM and not having enough time to complete a transaction drove off. Law enforcement followed, conducted a traffic stop and arrested him. Tirlea, was identified based on ATM surveillance video as the individual who placed the device on the ATM on November 28, 2018. On December 3, 2018, Tirlea was arrested and charged via criminal complaint.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case was investigated by the FBI, the Indiana State Police Organized Crime and Corruption Unit and Warsaw Police Department. This case will be prosecuted by Assistant United States Attorney Stacey Speith.
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Madras Man Pleads Guilty to Bank Robbery and Conspiracy to Distribute MethamphetamineRead the Press Release
EUGENE, Ore.—Tyler Wayne Fuller, 29, of Madras, Oregon, pleaded guilty today, in separate criminal cases, to one count each of bank robbery and conspiracy to distribute and possess with intent to distribute methamphetamine.
According to court documents, on August 21, 2017, a man later identified as Fuller walked into the U.S. Bank branch on Southwest C Street in Madras. Fuller approached the victim teller and passed her a note that read “Give me your money and nobody gets hurt.” Fuller then told the teller not to play games. The teller gave Fuller $517 and pressed her alarm button as he exited the bank. Fuller was later arrested without incident during a traffic stop.
In a separate criminal matter, Fuller has admitted to being a member of a drug distribution conspiracy and possessing more than fifty grams of methamphetamine.
Fuller faces a maximum sentence of life in prison with a 10-year mandatory minimum, a $10 million fine and five years of supervised release. He will be sentenced on April 8, 2019 before U.S. District Court Judge Michael J. McShane.
As part of the plea agreement, Fuller has agreed to pay $517 in restitution.
The FBI, the Central Oregon Emergency Response Team, and Madras Police Department investigated this case. It is being prosecuted by Frank R. Papagni, Jr., Assistant U.S. Attorney for the District of Oregon.
MS-13 Member Sentenced for Illegal Possession of Firearm and Illegal ReentryRead the Press Release
BOSTON – A Salvadoran national was sentenced yesterday in federal court in Boston for unlawfully possessing a firearm and illegal reentry the United States after being deported.
Oscar Ramos, 30, a Salvadoran national who previously resided in Maryland, was sentenced by U.S. District Court Judge Indira Talwani to one year and one day in prison and three years of supervised release. Following the completion of his sentence, Ramos will be placed into removal proceedings and deported to El Salvador. In October 2018, Ramos pleaded guilty to being an illegal alien in possession of a firearm and illegal reentry after deportation.
Ramos was previously ordered deported from the United States in 2009. However, sometime after his removal, he reentered the United States, and in December 2013, he was arrested in Chelsea for possessing a loaded Smith and Wesson .38 caliber revolver and a knife. Upon his arrest, Ramos admitted to being a member of MS-13. Ramos was charged in Chelsea District Court with carrying the loaded firearm and released on $1,000 bail. Ramos then failed to appear for a court date in January 2014 and was a fugitive until he was arrested on March 2, 2018, in Baltimore, Md., on the outstanding warrant. Ramos has been detained in federal custody since that arrest.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney John P. Pappas; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Gross; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement today. The U.S. Marshals Service has provided crucial assistance with the case.
Long Island Man Sentenced to 56 Months’ Imprisonment for Defrauding Investors of $62 Million in a Real Estate Ponzi SchemeRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Gershon Barkany was sentenced by United States District Judge Joseph F. Bianco to 56 months’ imprisonment to be followed by three years’ supervised release for orchestrating a Ponzi scheme over four years that caused investors to lose approximately $62 million. Barkany was also ordered to pay restitution in an amount to be determined later and forfeiture of $62 million. Barkany pled guilty to wire fraud on June 26, 2013.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the sentence.
“Today’s sentence is the very real consequence for all the lies, forgeries and fabrications that Barkany used to steal from investors who thought they were putting their money into safe real estate deals,” stated United States Attorney Donoghue. “This Office will vigorously prosecute those who betray their clients’ trust for their own financial self-interest.” Mr. Donoghue expressed his appreciation to the Federal Bureau of Investigation, New York Field Office for its outstanding investigative work during the investigation.
Between December 2009 and March 2013, Barkany induced more than 10 victims to invest approximately $62 million by promising to use their money in “risk-free” deals to purchase, and then immediately re-sell at a profit, commercial real estate properties located in New York City and New Jersey. No such deals existed, and the investors lost their entire investments. Relying on Barkany’s representations, one victim invested $46.5 million as a down payment on an office building in Manhattan, a hotel in Atlantic City and properties in the Bronx and Queens. In fact, those real estate deals did not exist, and the investments were lost.
Shortly after Barkany’s arrest on March 28, 2013, two additional victims contacted the FBI and reported that they had been defrauded by Barkany. Barkany induced those investors to give him approximately $7.5 million by promising to use their money in a “risk-free” deal to purchase, and then immediately re-sell at a profit, an office building in Manhattan. In furtherance of the scheme, Barkany created fraudulent documents, including a purchase agreement purportedly signed by the seller of the office building and an escrow agreement allegedly signed by a third-party escrow agent. Once again, the promised deal did not exist, and the investment was lost.
Barkany diverted some of the funds he received to pay victims whom he had earlier defrauded, and used approximately $7.8 million of investors’ monies for personal expenses and gambling.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Christopher Caffarone and Diane Leonardo are in charge of the prosecution.
The Defendant:
GERSHON BARKANY
Age: 34
Woodmere, New YorkE.D.N.Y. Docket No. 13-CR-362 (JFB)
Local Man Gets 25 Years for Recruiting Individual to Transport MethRead the Press Release
BROWNSVILLE, Texas – A 25-year-old resident of Brownsville has been ordered to prison for 300 months for his role in recruiting a female to carry almost four kilograms of “ice” to Louisiana, announced U.S. Attorney Ryan K. Patrick. Emmanuel Ravell pleaded guilty Oct. 31, 2017.
Today, U.S. District Judge Fernando Rodriguez Jr. imposed the sentence noting the serious nature of the trafficking in methamphetamine as well as the defendant’s prior lengthy criminal history. Ravell was further order to serve five years of supervised release following the sentence. He was also was sentenced to a concurrent 120 months for being a felon in possession of more than three firearms.
In 2016, Ravell was contacted by a local drug trafficking organization to find a drug “mule” to get a load of methamphetamine to Louisiana. Ravell recruited a young female from Brownsville to carry the load on a commercial bus line. Law enforcement intercepted the woman carrying the approximately-four kilograms of methamphetamine on her person. Ravell had strapped the drugs to her. .
Ravell was a convicted felon ineligible to purchase a firearm. However, in 2017, he purchased three firearms, including an AR-15, GGI rifle and .50 caliber Desert Eagle pistol.
Ravell remains in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration, FBI and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the joint investigation. Assistant U.S. Attorneys Karen Betancourt and Angel Castro prosecuted the case.
Little Rock Husband and Wife Sentenced on Multiple Charges Related to Tax FraudRead the Press Release
LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, Kevin Caramucci, Acting Special Agent in Charge of the IRS-Criminal Investigation Dallas Field Office, and Gary Smith, Special Agent in Charge, Southern Field Division, Treasury Inspector General for Tax Administration (TIGTA), announced that Chief United States District Judge Brian S. Miller has sentenced John and Wendy Dunn for their roles in defrauding the IRS.
In Monday’s hearing, Judge Miller sentenced John Dunn, 64, of Little Rock, to 33 months’ imprisonment, followed by three years of supervised release and ordered him to pay $437,053.84 in restitution to the IRS on one felony count of conspiracy to defraud the government. In a hearing today, Judge Miller then sentenced Dunn’s wife, Wendy Dunn, 51, of Little Rock, to five years of probation and ordered her to pay $127,401.18 in restitution after she earlier pleaded guilty to five misdemeanor counts for willful failure to file tax returns.
According to public records, from approximately November 2001 through September 2016, John Dunn conspired with others to defraud the United States for the purpose of obstructing the IRS in the assessment and collection of income taxes. Since at least 2002, John Dunn and Wendy Dunn, operated a quasi-financial consulting business; however, they failed to file business and personal tax returns reporting this income.
During an interview in September 2011, John Dunn lied to federal agents when he said he timely filed his federal income tax returns each and every year and accused the IRS of hiding his returns. John Dunn also falsely told federal agents that neither he nor his wife had been employed for many years, but that a family inheritance allowed them to live in their $500,000 residence.
John Dunn utilized a false social security number on his bank accounts to disguise his ownership and made numerous false and frivolous complaints against IRS employees in order to thwart the IRS’ collection and investigative efforts.
John Dunn filed bankruptcy, and with the assistance of co-defendant Nina Sue Williams, created fake tax returns with small amounts of income that he backdated and provided to the United States Bankruptcy Court to conceal his business activities and true earnings. In addition, John Dunn wrote the word “Gift” in the memo line of client checks he received for services in order to disguise the true nature of the payments. He also attempted to persuade these clients to make false statements to federal investigators to prevent his prosecution.
John and Wendy Dunn both pleaded guilty in June 2018. Nina Sue Williams pleaded guilty in May 2018 to making a false statement to the IRS and willfully failing to file income tax returns. In November 2018, Williams was sentenced to 24 months in prison and ordered to pay $103,201 in restitution to the IRS.
The investigation was conducted by IRS Criminal Investigation and TIGTA.
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This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available on-line at http://www.justice.gov/edar
Twitter: @EDARNEWSLincoln, Arkansas Woman Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that Amber Rae Kirk, age 37, of Lincoln, Arkansas, entered a guilty plea to Drug Conspiracy in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(D), punishable by not less than 10 years and not more than life imprisonment, up to a $10,000,000.00 fine, or both.
The Indictment alleged that on a date unknown to the Grand Jury in 2014, and continuing until on or about January 29, 2018, within the Eastern District of Oklahoma and elsewhere, the defendant, did knowingly and intentionally combine, conspire, confederate and agree, with others known and unknown to the Grand Jury, to commit offenses against the United States in violation of Title 21, United States Code, Section 846, as follows: possession with intent to distribute and distribution of 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A).
The charges arose as a result of an investigation by the Drug Enforcement Administration (“DEA”), the Oklahoma Bureau of Narcotics (“OBN”), the National Guard Counterdrug Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bureau of Indian Affairs, the U.S. Marshals Service, the Cherokee Nation Marshal Service, the Oklahoma Highway Patrol, the District 27 District Attorney’s Drug Task Force, the Adair County Sheriff’s Office, the Tulsa County Sheriff’s Office, the Stilwell Police Department, the Broken Arrow Police Department, and the Tulsa Police Department.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Rob Wallace represented the United States.
Lawrence Man Charged with Distributing HeroinRead the Press Release
BOSTON – A Lawrence man was charged today in federal court in Boston with distributing 100 grams or more of heroin.
Orlando Breton Mercado, 43, was indicted by a federal grand jury for distribution of and possession with intent to distribute 100 grams or more of heroin. Mercado was originally arrested and charged by criminal complaint on Nov. 20, 2018, and has been in custody since.
According to the charging documents, in July 2018, federal agents began investigating Mercado for drug trafficking, and on Nov. 20, 2018, they conducted an undercover controlled purchase from Mercado of nearly one kilogram of heroin. Mercado was subsequently arrested.
The charge of distribution of 100 grams or more of heroin carries a minimum mandatory sentence of five years and up to 40 years in prison, at least four years of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistance was provided by the Salem Police Department. Assistant U.S. Attorney Alathea E. Porter of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
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.
Kalkaska, Michigan Woman SentencedRead the Press Release
SOUTH BEND - Michelle Seljan, age 47, of Kalkaska, Michigan, was sentenced before South Bend District Court Judge Jon E. DeGuilio for theft of federal funds and tax evasion, announced U.S. Attorney Kirsch.
Seljan was sentenced to 37 months imprisonment followed by 2 years of supervised release. Seljan was also ordered to pay $633,628 in restitution to HUD and $201,696 in restitution to IRS.
U.S. Attorney Kirsch said, "Seljan stole hundreds of thousands of dollars from the Hammond Housing Authority. Her greed earned her a lengthy prison sentence. My office has zero tolerance for public officials who abuse their positions for personal financial gain. Our law enforcement partners will continue to aggressively investigate, while we will continue to prosecute those who betray the public trust.”
According to documents in this case, from about 2013 to 2015, Seljan worked as a supervisor at the Hammond Housing Authority. She embezzled Housing Authority funds by using their computers to divert $633,628 of Housing Authority funds to bank accounts she had created. During that same time, she attempted to evade federal income taxes by submitting tax returns that failed to report the embezzled income.
This case is being investigated by the Department of Housing and Urban Development, Office of Inspector General and the Internal Revenue Service, Criminal Investigation Division. The case is being handled by Assistant U.S. Attorney Frank Schaffer.
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Justice Department Sues to Shut Down Promoters of Conservation Easement Tax Scheme Operating out of GeorgiaRead the Press Release
The United States filed a complaint seeking an order stopping Nancy Zak, Claud Clark III, EcoVest Capital Inc., Alan N. Solon, Robert M. McCullough, and Ralph R. Teal, Jr., from organizing, promoting, or selling an allegedly abusive conservation easement syndication tax scheme, the Justice Department announced today.
According to the complaint filed in the U.S. District Court for the Northern District of Georgia, the defendants’ scheme revolves around donations of conservation easements and corresponding tax benefits from those donations. Defendants also allegedly rely on grossly overvalued appraisals as part of their scheme.
“The Department of Justice is working with our partners in the Internal Revenue Service to shut down fraudulent conservation easement shelters, which in this case were based on willfully false valuations,” said Richard E. Zuckerman, the Tax Division’s Principal Deputy Assistant Attorney General. “Individuals investing in these schemes with benefits that seem too good to be true should ensure they are paying their proper federal income tax liability.”
“When it comes to aggressive transactions marketed by unscrupulous advisors, we will take every enforcement option available, including civil and criminal penalties,” said Internal Revenue Service Commissioner Charles P. Rettig. “Cheating on your taxes will not be tolerated.”
Under the proper circumstances, the Internal Revenue Code allows a taxpayer to take a charitable donation deduction equivalent to the fair market value of a conservation easement, but only if certain requirements with respect to the donation of an interest in property for conservation purposes are satisfied. This deduction is referred to as the “qualified conservation contribution.”
The defendants allegedly organize, promote, and sell ownership interests in limited liability entities, referred to in the complaint as “conservation easement syndicates.” According to the complaint, at the time defendants organize, promote, and sell ownership interests in a conservation easement syndicate, the syndicate plans to donate a conservation easement on land it owns, and then claim a corresponding tax deduction for the “qualified conservation contribution.”
However, these syndicates lack economic substance and are shams. They only serve as a conduit to transfer overvalued and otherwise improper federal tax deductions to customers, according to the government’s complaint. Additionally, the complaint alleges the conservation easements promoted by the defendants do not meet the requirements for a “qualified conservation contribution” under the Internal Revenue Code.
According to the complaint, defendants knew, or had reason to know, that the statements they made to customers regarding the tax benefits were false or fraudulent. In this regard, the complaint alleges that defendants knew the syndicates that they promoted planned to donate a conservation easement but otherwise did not plan to engage in any ongoing business activity. The complaint also alleges that the only return on investment a customer could anticipate from “investing” in a syndicate was the tax benefit from the planned conservation easement donation, which was many times larger than the purported investment. The complaint further alleges that the defendants made or furnished gross valuation overstatements about the valuation of conservation easements and the corresponding tax deductions, or caused others to do so.
The suit alleges that defendants have organized, promoted, and sold at least 96 conservation easement syndicates resulting in the syndicates reporting over $2.0 billion of tax deductions from overvalued and improper “qualified conservation contributions,” and have passed those tax deductions through to the thousands of customers of defendants’ scheme, resulting in hundreds of millions of dollars of tax harm.
On December 23, 2016, the IRS issued Notice 2017-10, announcing that certain syndicated conservation easement transactions are listed transactions if entered into on or after January 1, 2010. Notice 2017-10 applies to those prospective investors who receive oral or written promotional materials offering the possibility of a charitable donation deduction of at least 2.5 times their investment. A typical transaction covered by Notice 2017-10 involves the advertised investment in a pass-through entity that owns real property or acquires real property for the purpose of encumbering the property with a conservation easement.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Settles Immigration-Related Discrimination Claim Against Chicago Health Care ProviderRead the Press Release
The Justice Department today announced that it has reached a settlement agreement with Sinai Health System Inc. (Sinai) in Chicago, Illinois. Sinai serves the health care needs of the approximately 1.5 million people who reside within its service areas -- Chicago’s west and southwest sides -- and comprises Mount Sinai Hospital Medical Center of Chicago, Holy Cross Hospital, Schwab Rehabilitation Hospital and Care Network, Sinai Children’s Hospital, Sinai Community Institute, Sinai Medical Group, and Sinai Urban Health Institute. The settlement resolves a claim that Sinai violated the anti-discrimination provision of the Immigration and Nationality Act (INA) by discriminating against non-citizen employees when verifying their work authorization.
The Department’s independent investigation concluded that, from at least Jan. 1, 2016, to Sept. 30, 2017, a human resources employee responsible for verifying employees’ work authority routinely required newly hired non-U.S. citizen employees to provide specific documentation issued by the Department of Homeland Security to prove employment eligibility. In contrast, U.S. citizen employees were permitted to present the documentation of their choice to establish their work authorization. Federal law allows individuals, regardless of citizenship status, the right to choose which document to present, from a range of valid documents, to demonstrate their authority to work in the United States. The anti-discrimination provision of the INA prohibits employers from subjecting employees to unnecessary documentary demands based on employees’ citizenship status or national origin.
“Employers are reminded that the employment eligibility verification process is intended to confirm an employee’s work authorization, not their immigration status,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Division commends Sinai for its commitment to complying with the anti-discrimination provision of the INA.”
Under the settlement, Sinai will pay $7,000 in civil penalties to the United States and be subject to departmental monitoring and reporting requirements. The agreement also requires certain employees to attend training on the requirements of the INA’s anti-discrimination provision, and Sinai will make available IER materials containing information about IER and the anti-discrimination provision of the INA at various locations.
The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to retaliation; different documentary requirements based on their citizenship, immigration status or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact IER’s worker hotline for assistance.
Justice Department Alleges Conditions at Hampton Roads Regional Jail Violate the Constitution and Federal LawRead the Press Release
WASHINGTON – The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Virginia today concluded an investigation into conditions at the Hampton Roads Regional Jail in Portsmouth, Virginia. The Justice Department concluded that there is reason to believe that the conditions at the Jail violate the Constitution, specifically rights of prisoners protected by the Eighth and Fourteenth Amendments. The Department concluded that there is reasonable cause to believe that the Jail fails to provide constitutionally adequate medical and mental health care to prisoners, and places prisoners with serious mental illness in restrictive housing for prolonged periods of time under conditions that violate the Constitution. The Department also concluded that the Jail’s restrictive housing practices discriminate against prisoners with mental health disabilities in violation of the Americans with Disabilities Act (ADA).
As required by the Civil Rights of Institutionalized Persons Act (CRIPA) and the ADA, the Department provided the Jail written notice of the supporting facts for these alleged conditions and the minimum remedial measures necessary to address them.
“The Constitution guarantees all prisoners necessary medical care, including mental health care, treatment, and services,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Our investigation found reasonable cause to conclude that the Jail fails to provide constitutionally adequate medical and mental health care and that prisoners experience serious harm as a result. The Justice Department hopes to continue to work with the Jail to resolve the Department’s concerns.”
“Our investigation uncovered evidence of significant violations of inmates’ constitutional rights to adequate medical and mental health care, as well as violations of the Americans with Disabilities Act,” said U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia. “We look forward to working with the Jail to ensure the rights of those incarcerated are not violated.”
The Civil Rights Division and the United States Attorney’s Office for the Eastern District of Virginia initiated the investigation in December 2016 under CRIPA, which authorizes the Department to take action to address a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities. The investigation was also initiated under Title II of the ADA.
This investigation was conducted by attorneys with the Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Virginia. Individuals with relevant information are encouraged to contact the Department via phone at (844) 644-0225 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Justice Department Alleges Conditions at Hampton Roads Regional Jail Violate the Constitution and Federal LawRead the Press Release
The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Virginia today concluded an investigation into conditions at the Hampton Roads Regional Jail in Portsmouth, Virginia. The Justice Department concluded that there is reason to believe that the conditions at the Jail violate the Constitution, specifically rights of prisoners protected by the Eighth and Fourteenth Amendments. The Department concluded that there is reasonable cause to believe that the Jail fails to provide constitutionally adequate medical and mental health care to prisoners, and places prisoners with serious mental illness in restrictive housing for prolonged periods of time under conditions that violate the Constitution. The Department also concluded that the Jail’s restrictive housing practices discriminate against prisoners with mental health disabilities in violation of the Americans with Disabilities Act (ADA).
As required by the Civil Rights of Institutionalized Persons Act (CRIPA) and the ADA, the Department provided the Jail written notice of the supporting facts for these alleged conditions and the minimum remedial measures necessary to address them.
“The Constitution guarantees all prisoners necessary medical care, including mental health care, treatment, and services,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Our investigation found reasonable cause to conclude that the Jail fails to provide constitutionally adequate medical and mental health care and that prisoners experience serious harm as a result. The Justice Department hopes to continue to work with the Jail to resolve the Department’s concerns.”
“Our investigation uncovered evidence of significant violations of inmates’ constitutional rights to adequate medical and mental health care, as well as violations of the Americans with Disabilities Act,” said U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia. “We look forward to working with the Jail to ensure the rights of those incarcerated are not violated.”
The Civil Rights Division and the United States Attorney’s Office for the Eastern District of Virginia initiated the investigation in December 2016 under CRIPA, which authorizes the Department to take action to address a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities. The investigation was also initiated under Title II of the ADA.
This investigation was conducted by attorneys with the Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Virginia. Individuals with relevant information are encouraged to contact the Department via phone at (844) 644-0225 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Jamaican National Convicted of Marijuana Trafficking, Firearms and Money Laundering OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that on December 18, 2018, a federal jury in Hartford found ANDREW DAVIS, 38, a citizen of Jamaica last residing in Hamden, guilty of marijuana trafficking, firearm possession and money laundering offenses.
According to the evidence presented during the trial, in 2013, Homeland Security Investigations (HSI), U.S. Postal Inspection Service and Connecticut State Police began an investigation into individuals who were moving large amounts of marijuana from the Southwestern United States to Connecticut. During the investigation, investigators intercepted four packages, each containing approximately eight kilograms of marijuana, from the U.S. Mail, and made multiple controlled purchases of the drug from a member of the trafficking ring.
Davis was arrested on February 1, 2017, after investigators conducted court-authorized searches of a Hamden apartment that Davis shared with his girlfriend, Shanice Goffe; a storage unit in West Haven that was rented in Goffe’s name, and two Bridgeport apartments that Davis maintained under different aliases.
A search of the Hamden residence revealed more than one pound of marijuana, a loaded 9mm handgun, boxes of .45 caliber ammunition, $62,409 in cash, and numerous false identifications, including a U.S. passport, all of which contained a photo of Davis. A search of the storage unit revealed approximately 33 kilograms of marijuana, ammunition and firearm magazines, additional false identifications, and $350,100 in cash. A search of a Bridgeport apartment rented in the name of “Cordel Freckleton” yielded one firearm, and a search of an apartment rented in the name of “Andrew Carter” revealed more than 60 pounds of marijuana and two firearms, one of which was stolen.
Investigators also seized a 2014 BMW X6, a 2016 Honda Accord, and a 2008 Honda Odyssey, all of which were registered to Goffe and had been purchased with proceeds of the marijuana trafficking enterprise.
The investigation further revealed that Davis, using the name “Steve Williams,” was under investigation in 2008 for marijuana trafficking. In August 2008, Bridgeport Police conducted a search of Davis’s Bridgeport apartment and discovered a fake identification, photos of Davis/Williams, three firearms, extended magazines, ammunition, drug packaging paraphernalia, marijuana packaged for resale, and eight UPS receipts for packages that had not arrived. Bridgeport Police subsequently seized the UPS packages, which contained a total of more than 75 pounds of marijuana. “Williams” was never located.
At the time of Davis’s federal arrest on February 1, 2017, investigators seized more than 40 identification cards with false names, including the names of the addressees of the 2008 Bridgeport packages. When presented to U.S. Marshals and asked his name, Davis said, “Let’s go with Steve Williams.”
The jury found Davis guilty of one count of conspiracy to distribute and to possess with intent to distribute 100 kilograms or more of marijuana, an offense that carries a maximum term of imprisonment of 40 years; one count of possession with intent to distribute 50 kilograms or more of marijuana, an offense that carries a maximum term of imprisonment of 20 years, one count of possession of firearms in furtherance of a drug trafficking crime, an offense that carries a consecutive term of imprisonment of at least five years, and one count of conspiracy to commit money laundering, an offense that carries a maximum term of imprisonment of 20 years.
Davis is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on March 13, 2019.
On November 20, 2017, Goffe pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 50 kilograms or more of marijuana, and one count of conspiracy to commit money laundering. On February 28, 2018, she was sentenced to 30 months of imprisonment.
This matter has been investigated by Homeland Security Investigations (HSI), U.S. Postal Inspection Service and Connecticut State Police, with the assistance of Bridgeport Police Department, U.S Customs and Border Patrol and the U.S. Marshals Service.
This case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Jackson Man Sentenced to over Six Years in Federal Prison under Project EJECT for Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Terrence Omar Gates, 32, of Jackson, was sentenced yesterday by Senior U.S. District Judge William H. Barbour, Jr. to 78 months in prison, to run consecutive to his previously imposed 24 month revocation sentence, followed by three years supervised release, for illegal possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On June 7, 2017, detectives with the Jackson Police Department stopped Terrence Omar Gates for traffic violations at the corner of Mill Street and Mitchell Street. While running Gates’ driver’s license, one of the detectives observed Gates reaching under the front passenger seat. He was ordered to stop reaching and was removed from the vehicle. Detectives searched the vehicle and recovered a stolen Taurus pistol, a glass mason jar containing approximately 30 grams of marijuana, and a black digital weighing scale. Approximately $6,937.00 wrapped in a rubber band was recovered from Gates’ front left pocket.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jackson Police Department. It was prosecuted by Assistant United States Attorney Keesha D. Middleton.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Jackson Man Sentenced to 27 Months in Prison for Commercial Driver’s License FraudRead the Press Release
Jackson, Miss –Benjamin James McGrigg, 42, of Jackson, was sentenced on December 14, 2018, by Chief U.S. District Judge Daniel P. Jordan III to 27 months in prison, followed by three years of supervised release, for commercial driver’s license fraud, announced U.S. Attorney Mike Hurst and Regional Special Agent in Charge Todd Damiani with the U.S. Department of Transportation, Office of Inspector General.
McGrigg was also ordered to pay restitution in the amount of $13,500 to the Pearl River Water Valley Supply District - Reservoir Police Department. He entered a guilty plea before Judge Jordan on August 17, 2018, to making false and fraudulent material representations.
McGrigg previously worked for a company that provided training and certification to individuals seeking commercial driver’s licenses (“CDLs”). His employment only authorized certification to those that were students of the company. However, McGrigg provided paperwork to those whom wanted a CDL that were not students of his employer. He prepared the paperwork representing that the applicant had taken the road skills test, when in fact the applicant had not. This fraudulent paperwork would be given to an individual seeking to obtain a CDL in exchange for payment to McGrigg. Such fraudulent paperwork would be presented by these individuals to the Mississippi Department of Public Safety in order to secure a commercial driver’s license. A review of the commercial drivers’ paperwork in Mississippi showed that some of the applicants could not have achieved the results on the paperwork. Some Commercial Driver’s License holders were interviewed and said they had never taken the test and just paid McGrigg for the paperwork.
"The sentencing in this investigation underscores the U.S. Department of Transportation Office of Inspector General's commitment to ensuring the integrity of the Department's commercial driver’s license program,” stated Todd Damiani, Regional Special Agent-In-Charge at DOT-OIG. “We remain steadfast in our efforts to prevent and detect CDL fraud schemes which endanger the traveling public in the State of Mississippi and throughout the country.”
The case was investigated by the United States Department of Transportation-Office of Inspector General, Mississippi Department of Public Safety, Mississippi Bureau of Investigation and the Federal Motor Carrier Safety Administration. It was prosecuted by Assistant United States Attorney Erin Chalk.
Jackson County Man Pleads Guilty to Illegally Possessing a FirearmRead the Press Release
Gulfport, Miss – Andrew Roy Broughton, 30, of Moss Point, entered a guilty plea today before U.S. District Judge Sul Ozerden to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Broughton was previously convicted of felony possession of a controlled substance in Pearl River County and felony possession of a controlled substance in Jackson County. On February 28, 2018, Broughton sold three firearms, one reported stolen, to an ATF informant. On March 6, 2018, Broughton sold a fourth firearm to the informant.
Broughton will be sentenced by Judge Ozerden on March 19, 2019 at 9:00 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
The Jackson County MET Team and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. The case is being prosecuted by Assistant United States Attorney Annette Williams.
Inmate Sentenced to Four Years in Prison for Threats to Obama, LynchRead the Press Release
TUCSON, Ariz. – Today, Roger Dale Godwin, 40, was sentenced by U.S. District Judge Raner Collins to 48 months in the Bureau of Prisons followed by three years of supervised release. Godwin had previously pleaded guilty to making threats against the President and mailing threatening communications.
On June 1, 2016, while an inmate in the U.S. Penitentiary in Tucson, Ariz., Godwin placed into the outgoing prison mail several letters that were addressed to then-President Barak Obama and then-Attorney General Loretta Lynch. In those letters Godwin threatened to injure or kill Mr. Obama and Ms. Lynch, along with a Bureau of Prisons employee. Godwin must serve his four years consecutive to a 2014 sentence he is separately serving for mailing threats to judges and law enforcement while an inmate in the Wisconsin Department of Corrections.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Micah Schmit, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-17-01620-RCC-1
RELEASE NUMBER: 2018-174_ Godwin
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Illegal Alien Who Used Another Person’s Social Security Number Sentenced to PrisonRead the Press Release
A woman who used another person’s Social Security number to get a job was sentenced today to more than two months in federal prison.
Juana Brito-Raymundo, age 20, a citizen of Guatemala illegally present in the United States and residing in Dubuque, Iowa, received the prison term after an October 18, 2018, guilty plea to one count of misuse of a social security number.
In a plea agreement, Brito-Raymundo admitted that on April 15, 2017, she used someone else’s social security number on employment and tax documents when applying for work using an alias name in Dubuque, Iowa. She also used a fraudulent permanent resident card, also known as a “green card,” when she completed the employment forms. The Alien Registration number on the “green card” had been issued to another person. Brito-Raymundo was arrested by the United States Border Patrol in Texas in September 2016 after she illegally entered the United States. Brito-Raymundo was released from immigration custody in November 2016, and was on ICE bond when she committed the offense.
Brito-Raymundo was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Brito-Raymundo was sentenced to 79 days’ imprisonment. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Brito-Raymundo is being held in the United States Marshal’s custody until she 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-1040-CJW.
Follow us on Twitter @USAO_NDIA.
Illegal Alien Sentenced to Prison for Document FraudRead the Press Release
A Guatemalan woman who used false identification documents to obtain a job was sentenced today to one month in federal prison.
Eulalia Francisco-Pedro, age 39, a citizen of Guatemala illegally present in the United States and residing in Cedar Rapids, Iowa, received the prison term after an October 18, 2018, guilty plea to one count of unlawful use of identification documents and one count of misuse of a social security number.
At the guilty plea, Francisco-Pedro admitted she used a fraudulent Social Security card bearing the social security number assigned to someone else, and a fraudulent permanent resident card, also known as a “green card,” when she completed a Form W-4 and other employment paperwork on July 28, 2016, at a business in Cedar Rapids, Iowa. The Alien Registration number on the “green card” was invalid. Francisco-Pedro also used someone else’s social security number when she completed state and federal W-4 forms at the Cedar Rapids business on June 14, 2018.
Francisco-Pedro was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Francisco-Pedro was sentenced to 31 days’ imprisonment. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Francisco-Pedro was ordered to begin her term of supervised release immediately.
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-0091-CJW. Follow us on Twitter @USAO_NDIA.
Illegal Alien Sentenced to over 21 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
Gulfport, Miss. – Manuel De Jesus Pulido-Rodas, 33, of Vera Cruz, Mexico, was sentenced Monday by U.S. District Judge Sul Ozerden to 262 months in federal prison, followed by 5 years of supervised release, for conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans.
Pulido-Rodas pled guilty on August 7, 2018, to one count of conspiracy to possess with intent to distribute methamphetamine. On January 30, 2018, Pulido Rodas and three others were stopped in a vehicle in Hancock County traveling from Texas to South Carolina. They were transporting approximately 4 kilograms of 99% pure methamphetamine. Pulido-Rodas’s co-conspirators in the vehicle are awaiting sentencing.
The case was investigated by the Homeland Security Investigations and prosecuted by Assistant U.S. Attorney John Meynardie.
Husband and Wife Convicted of Health Care FraudRead the Press Release
COLUMBUS, Ohio – A jury convicted a Hilliard couple of conspiracy to commit health care fraud and health care fraud yesterday evening following a two-week trial before U.S. District Judge Algenon L. Marbley.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Ohio Attorney General Mike DeWine and Steven W. Schierholt, Executive Director, State of Ohio Board of Pharmacy announced the verdict.
Darrell L. Bryant, 44, and Gifty Kusi, 35, owned and managed Health and Wellness Pharmacy on Blazer Parkway in Dublin. Bryant, Kusi, and Dr. Jornell Rivera also owned and operated Health and Wellness Medical Center, a suboxone clinic, also located in Dublin. Rivera served as the Medical Director for the medical center.
According to court documents and testimony, Bryant, Kusi and their co-conspirators marketed prescription creams in low-income neighborhoods and mailed those creams to Medicaid customers. They also billed for counseling services that weren’t provided, and billed for individual counseling sessions that actually occurred in a group setting.
As part of the conspiracy, Medicaid was billed for compound creams to treat pain, scarring and acne. Health and Wellness Pharmacy billed Medicaid $3 million for the creams.
The pharmacy marketed the compound creams at Clinic 5 (a Suboxone clinic), Sav-a-Lot and through a mobile van unit. Patients with CareSource were targeted and told they were receiving free samples of pain cream. Then they began to receive more cream in the mail without requesting more. These were also billed to CareSource.
Customers at Sav-a-Lot and in low-income neighborhoods were asked to fill out a survey asking about any conditions that they suffered from. Then, they would receive the compound creams in the mail every month, even when customers directed the co-conspirators to stop sending them. Many of these customers never met with a doctor, nor did they know the prescribing physician.
Also as part of the health care fraud scheme, Health and Wellness Medical Center submitted fraudulent claims to Medicaid for psychotherapy services that were never rendered to patients.
Specifically, patients indicated they would sit in a room with a timer. When the timer went off, they were allowed to leave and receive their Suboxone prescription. No counseling services were provided during this time. Some patients reported coloring in coloring books during the time they were in the room.
Co-conspirator Rivera pleaded guilty in May 2018 to making false statements related to health care matters. His sentencing hearing has been scheduled for 9am on January 11.
Another co-conspirator, Dr. Bernard Oppong, 60, of Blacklick, Ohio, was charged in a seven-count indictment on October 30, 2018.
U.S. Attorney Glassman commended the investigation of this case by the Ohio Attorney General’s Office’s Medicaid Fraud Control Unit, State of Ohio Board of Pharmacy, HHS-OIG, FBI and DEA, as well as Assistant United States Attorneys Kenneth F. Affeldt and Maritsa A. Flaherty, who are prosecuting the case.
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Hancock County Man Pleads Guilty to Illegally Possessing a FirearmRead the Press Release
Gulfport, Miss. – William Rex Roderick, Jr., 30, of Hancock County, entered a guilty plea today before U.S. District Judge Sul Ozerden to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Roderick has previous convictions for possession with intent to distribute controlled substances and transfer of controlled substances in Hancock County in 2015 and 2017. Roderick was on supervised release with MDOC at the time of the current federal charge. As a result of a May 14, 2018, MDOC home visit, Roderick was found in possession of ammunition. A subsequent investigation and search of Roderick’s cell phone by the Bureau of Alcohol, Tobacco, Firearms, and Explosives discovered that Roderick was buying and selling firearms to known Simon City Royals gang members. Through the investigation, ATF determined Roderick had at least 6 firearms from December 28, 2017, through May 2018, including a .22 caliber assault rifle with 2 thirty round magazines.
Roderick will be sentenced by Judge Ozerden on March 19, 2019 at 9:30 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. The case is prosecuted by Assistant United States Attorney Annette Williams.
Gulfport Man Pleads Guilty to Stealing Firearm from Pawn ShopRead the Press Release
Gulfport, Miss – Aseante Romaree Taylor, 21, of Gulfport, entered a guilty plea yesterday before U.S. District Judge Sul Ozerden to theft of a firearm from a licensed firearms dealer, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On September 18, 2018, Gulfport Police Department responded to Dad’s Super Pawn regarding the theft of a firearm. Officers obtained the surveillance video and were able to see the suspect go behind the counter while clerks were busy with customers, take an AK-47 off the shelf and walk out the door. Once out the door, the video showed the suspect running to a car. ATF agents located the car and the identity of the thief. Taylor was apprehended in the U.S. District Courthouse when he attended a sentencing hearing in support of another defendant. When approached by U.S. Marshals, Taylor gave a false name, but was arrested.
Taylor will be sentenced by Judge Ozerden on March 18, 2019 at 9:30 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine, along with 3 years of supervised release.
The Gulfport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It is being prosecuted by Assistant United States Attorney Annette Williams.
Guatemalan Man Who Used Another Person’s Name and Social Security Number Sentenced to PrisonRead the Press Release
A Guatemalan man who used a false identification document to obtain a job was sentenced today to nearly three months in federal prison.
Miguel Leon-Quinilla, age 21, a citizen of Guatemala illegally present in the United States and living in Tama, Iowa, received the prison term after an October 30, 2018, guilty plea to two counts of unlawful use of an identification document.
At the guilty plea, Leon-Quinilla admitted he used a fraudulent Social Security card when he completed an employment form at a business in Tama, Iowa, on January 30, 2018, and April 26, 2018. Leon-Quinilla, claiming to be a United States citizen, used the name and social security number of a United States citizen on the employment paperwork. Leon-Quinilla claimed to have paid $2,000 to a U.S. citizen for that person’s Social Security card and a birth certificate which he used to obtain an Iowa ID card on April 19, 2018. At the time of his arrest, Leon-Quinilla also had an Arkansas identification card bearing his picture but in the name of a third individual.
Leon-Quinilla was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Leon-Quinilla was sentenced to 85 days’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Leon-Quinilla 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-0098-CJW.
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Greensburg Doctor Indicted for Illegally Distributing Controlled Substances and Health Care Fraud Now Facing Additional Charges of Witness Tampering and Lying to the FBIRead the Press Release
PITTSBURGH, PA - A family practice physician has been indicted by a federal grand jury in Pittsburgh on charges of unlawfully dispensing controlled substances, health care fraud, tampering with a witness and false statements to the government, United States Attorney Scott W. Brady announced today.
The 56-count superseding indictment, returned on Dec. 18, named Milad Shaker, 49, of Greensburg, Pa., as the sole defendant.
According to the superseding indictment, from 2014 to 2017, Shaker, a licensed physician, unlawfully distributed controlled substances, including Vicodin, Percocet, Tramadol and others, in return for sexual favors provided to him either physically or by electronic communication, such as text messaging. Shaker is also charged with health care fraud for causing fraudulent claims to be submitted to Highmark Health Plan and Aetna. The superseding indictment further alleges that Shaker tampered with a witness and was untruthful to agents of the Federal Bureau of Investigation.
The law provides for a per count sentence of 20 years in prison, a fine of $1,000,000.00, or both, for counts 1-36; five years in prison, a fine of $250,000, or both on counts 37-52; 20 years in prison and fines of $500,000.00 for counts 53-54; 20 years in prison and $250,000 in fines on count 55; and five years in prison and $250,000 fine on count 56. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the superseding indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. – A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Two Charged with Drug Crimes Involving Heroin & Fentanyl
Arthur J. Jones, 41, Fitchburg, Wisconsin, and Corey D. Douglas, 27, Chicago, Illinois, are charged with conspiring to distribute 40 grams or more of a mixture containing both heroin and fentanyl. The indictment alleges that the conspiracy operated from May 2018 to November 29, 2018.
Jones is also charged with two counts of distributing heroin in October 2018, and with three counts of distributing a mixture of heroin and fentanyl in November 2018. The indictment also charges that on November 29, 2018, Jones possessed 40 grams of more of a mixture containing fentanyl with the intent to distribute. The final count in the indictment charges that on November 29, 2018, Douglas possessed a mixture of heroin and fentanyl with intent to distribute.
If convicted, Jones and Douglas face a mandatory minimum penalty of five years and a maximum of 40 years on the charges alleging 40 grams or more of heroin and fentanyl, and a maximum of 20 years on each of the other charges. The charges against Jones and Douglas are the result of an investigation by the Madison Police Department. The prosecution of this case is being handled by Assistant U.S. Attorney Robert A. Anderson.
Madison Man Charged with Four Robberies
Trevor Christian, 21, Madison, Wisconsin, is charged with robbing a Madison business and three financial institutions during November 2018, including:
- Walgreens, East Washington Avenue, on November 1;
- Associated Bank, Shopko Drive, on November 5;
- Associated Bank, Odana Road, on November 7; and
- Dane County Credit Union, Struck Street, on November 14.
If convicted, Christian faces a maximum penalty of 20 years in federal prison on each count. The charges against him are the result of an investigation by the Madison Police Department. The prosecution of this case is being handled by Assistant U.S. Attorney Rita M. Rumbelow.
Medford Man Charged with Gun & Drug Crimes
Ryan O. Kleinschmidt, 25, Medford, Wisconsin, is charged with being a felon in possession of a firearm and with possessing methamphetamine with intent to distribute. The indictment alleges that on September 18, 2018, he possessed a loaded .22 caliber handgun and methamphetamine.
If convicted, Kleinschmidt faces a maximum penalty of 10 years in federal prison on the felon in possession of a firearm count, and 20 years on the drug count. The charges against him are the result of an investigation by the Lincoln County Sheriff’s Office, Merrill Police Department, and Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant U.S. Attorney Corey C. Stephan.
La Crosse Man Charged with Two Gun Crimes
Emmanuel Hunt, 23, La Crosse, Wisconsin, is charged with two counts of being a felon in possession of a firearm. The indictment alleges that on November 22, 2018, he possessed a loaded 9mm pistol, and that on December 5, 2018, he possessed two loaded 9mm pistols.
If convicted, Hunt faces a maximum penalty of 10 years in federal prison on each count. The charges against him are the result of an investigation by the La Crosse Police Department, La Crosse County Sheriff’s Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of this case is being handled by Assistant U.S. Attorney Rita M. Rumbelow.
Madison Man Charged with Illegally Possessing Firearm & Ammunition
David A. Kelly, 31, Madison, Wisconsin is charged with being a felon in possession of a firearm and ammunition. The indictment alleges that on July 24, 2018, he possessed a .40 caliber pistol and .40 caliber ammunition.
If convicted, Kelly faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Madison Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of this case is being handled by Assistant U.S. Attorney Rita M. Rumbelow.
The charges against Kleinschmidt, Hunt, and Kelly have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Onalaska Man Charged in Farm Loan Fraud Case
Henry Berg, 42, formerly of Onalaska, Wisconsin, and currently of Geneva, Illinois, is charged with one count of making a false statement and one count of converting loan collateral. The indictment alleges that in May 2015, Berg made a false statement to Badgerland Financial ACA, an Agricultural Credit Association, in connection with a $650,000 agricultural loan. At the time Berg owned and operated Animal House Farms, LLC. The indictment alleges that Berg failed to disclose that his business had liabilities from the previous crop year of approximately $200,000.
The second count of the indictment alleges that Berg knowingly converted to his own use property which had been mortgaged to the Farm Service Agency, a successor agency to the Farmers Home Administration. The indictment alleges that Berg collected and then failed to remit any of the proceeds he received through a sublease contract.
If convicted, Berg faces a maximum penalty of 30 years in federal prison on the false statement count and five years on the conversion of collateral count. The charges against him are the result of an investigation by the U.S. Department of Agriculture, Office of Inspector General and the Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant U.S. Attorney Meredith P. Duchemin.
German National Sentenced for International Arms TraffickingRead 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 Karl Kleber, 64, of Lisbon, Portugal, who was convicted of smuggling goods into the United States, in connection with the importation into the United States of Chinese-manufactured, 75 round capacity, AK-47 rifle drum magazines, was sentenced to time served by U.S. District Judge Charles J. Siragusa. The defendant will also forfeit $345,600.
Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated that the defendant worked with co-defendant Gary Hyde to import into the United States over 5,000 Chinese-manufactured, 75 round capacity AK-47 rifle drum magazines from between in or about March of 2008 until October of 2008. Further, Kleber and Hyde negotiated a deal with a Chinese firearms manufacturer to make the magazines, while representing that they were manufactured in Bulgaria. Between January and March of 2008, the defendant offered them for sale to American Tactical Imports, Inc. in Rochester, while knowing that the magazines could not be imported into the United States because they were manufactured in China. The magazines were then sold to American Tactical Imports, Inc.
Gary Hyde was previously convicted and sentenced.
The sentencing is the culmination of an investigation on the part of Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
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Former Tax Return Preparer Sentenced for $1.75 Million Stolen Identity Tax Refund SchemeRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and William Hernandez, Chief, North Miami Beach Police Department (NMBPD), announced that Saul Frederick, 45, of Port-au-Prince, Haiti, was sentenced on December 14, 2018, to 61 months in prison, followed by three years of supervised release, and was ordered to pay $1,757,397 in restitution for his role in a stolen identity tax refund scheme.
Frederick previously pled guilty to one count of conspiracy to file false claims and aggravated identity theft.
According to the court record, including the plea documents, in early 2010, Frederick worked as a tax return preparer with co-conspirators Hugues Jean Noel, Frandy Prophete, and Edy St. Jean at a tax preparation business called H&A Tax Multi-Service, LLC, located in North Miami, Florida. The defendant and his co-conspirators used stolen personal identification information (PII) to prepare and file false federal income tax returns with the Internal Revenue Service (IRS) for tax years 2009 and 2010. Many of the individuals whose information was used died during tax years 2009 and 2010, and the defendants further sought refunds using fabricated employment and income information.
According to court records, Frederick traveled to Haiti in 2012, shortly before the charges were filed against him. He was apprehended in Port-au-Prince, Haiti, on July 17, 2018.
Jean Noel was sentenced on April 17, 2018 to 75 months in prison, followed by 4 years of supervised release, and ordered to pay $1.79 million in restitution. The defendant previously pled guilty to one count of conspiracy to defraud the U.S. government, one count of aggravated identity theft, and one count of failure to appear.
Prophete, 34, of Miami, was sentenced on April 16, 2013 to 61 months in prison, followed by 3 years of supervised release, and ordered to pay $1.85 million in restitution. Prophete previously pled guilty to one count of conspiracy to file false and fraudulent claims and another count of aggravated identity theft.
Edy St. Jean remains a fugitive.
U.S. Attorney Fajardo Orshan commended the investigative efforts of IRS-CI, the USSS, and NMBPD in this matter. She also thanked the U.S. Marshals Service, South Florida Regional Fugitive Task Force for their assistance in locating and apprehending Frederick. The case was prosecuted by Assistant U.S. Attorney Christopher Browne.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov at www.usdoj.gov/usao/fls.
Former Starkey President Sentenced in Massive Fraud Scheme Perpetrated Against Starkey LaboratoriesRead the Press Release
Jerome Ruzicka, 62, was sentenced today in United States District Court in Minneapolis by Chief Judge John R. Tunheim to 84 months of federal prison. Ruzicka and co-defendant W. Jeffery Taylor, 57, were convicted on March 3, 2018, of charges related to stealing more than $15 million from the Eden Prairie-based Starkey Laboratories, Inc. (Starkey) and its principal owner William F. Austin, as well as one of Starkey’s suppliers, Sonion. Chief Judge John R. Tunheim presided over the trial, which lasted nearly eight weeks, in Minneapolis, Minnesota.
Taylor and defendants, Jeffery Longtain, 59, and Scott A. Nelson, 60, will be sentenced on December 20, 2018, by Chief Judge John Tunheim for their roles in the fraud scheme. Longtain pleaded guilty on April 20, 2017, to a criminal information charging him with one count of making and subscribing a false return. Nelson pleaded guilty on December 19, 2017, to a criminal information charging him with one count of conspiracy.
United States Attorney Erica H. MacDonald, announcing the sentencing, said, “The defendant served as the President of Starkey Laboratories and had the confidence and trust of the company’s owner and its employees. Mr. Ruzicka abused that trust when he stole millions of dollars through a brash and complex fraud scheme. The sentence imposed today marks the end to a long and meticulous investigation and trial.”
"It is unfortunate that Ruzicka misused his position of trust over a period of years to steal millions from a company that does so much to give the gift of hearing to so many people in need," said Special Agent in Charge Jill Sanborn of the FBI Minneapolis Division. "Corporate fraud has far-reaching negative effects on so many institutions and individuals and that's why the FBI continues to work tirelessly with our criminal justice partners to detect corporate fraud and hold those responsible to account for their crimes."
“IRS Criminal Investigation, along with the U.S. Attorney’s Office and other law enforcement agencies, will continue to investigate individuals who misuse their position of trust and authority within their corporations. As all financial transactions leave a trail, IRS Criminal Investigation special agents used their accounting skills and expertise to analyze the complex financial transactions made by the defendant. The sentencing of this individual should serve as a deterrent to those who might contemplate similar fraudulent actions,” stated Special Agent in Charge Gabriel Grchan of the IRS Criminal Investigation Chicago Field Office.
"Today's sentence illustrates that regardless of your economic status, financial fraud on any level is still a crime, and criminals will be held accountable for their actions. Postal Inspectors will continue to protect the integrity of the U.S. Postal Service and aggressively investigate those cases where the U.S. Mails are used to defraud individuals and businesses of money and property," said Lesley Allison, (Acting) Postal Inspector in Charge for the Twin Cities Field Office, Denver Division.
As proven at trial, between 2006 and September 2015, Ruzicka and Taylor worked together to embezzle and misappropriate money and business opportunities belonging to Starkey and Sonion, a major supplier of hearing aid components to Starkey. The defendants, using their leadership positions, deployed various tactics to steal from Starkey, including controlling a complicated web of sham companies and dummy entities, surreptitiously awarding themselves restricted stock in Starkey’s retail affiliate, and embezzling money from the company by causing payments to be made by Starkey for the benefit of the defendants and others.
For example, as proven at trial, Ruzicka and Taylor controlled a sham entity, Archer Acoustics. Taylor falsely represented to Sonion this entity was a Starkey affiliate, thereby securing Starkey’s discounted pricing on hearing-aid components for Archer Acoustics. The defendants obtained at least $600,000 in profits, commissions, and rebates by fraudulently leveraging Starkey’s purchasing power for their own benefit.
Another facet of this scheme related to Starkey’s retail affiliate, Northland Hearing Centers. The purpose of Northland was to acquire and operate retail hearing aid establishments. In 2013, after awarding themselves restricted stock in Northland, Ruzicka and Nelson paid themselves and Longtain approximately $15 million in exchange for terminating the restricted stock grants.
As proven at trial, in 2014, Ruzicka additionally embezzled $200,000 from Starkey under the guise of “officer’s insurance.” He used those funds to pay his state and federal personal income taxes. Ruzicka also stole a 2011 Jaguar automobile that Starkey purchased for Ruzicka’s use at a cost of $119,188.77. Starkey paid the fees, insurance premiums, and other costs associated with the automobile. Nevertheless, in July 2015, Ruzicka transferred ownership of the car from Starkey to himself by signing the title as both representative of the seller and also as the buyer. He did not pay Starkey for the vehicle, nor was it reported as a taxable benefit.
When some details of the scheme were discovered in September 2015, Ruzicka was terminated by Starkey.
This case was the result of an investigation conducted by the FBI, Criminal Investigation Division of the IRS, and the United States Postal Inspection Service.
Assistant United States Attorneys Benjamin Langner and Surya Saxena, and former Assistant United States Attorney Lola Velazquez-Aguilu prosecuted the case.
Defendant Information:
JEROME C. RUZICKA, 61
Plymouth, Minn.
Convicted:
- Mail fraud, 4 counts
- Wire fraud, 3 counts
- Tax fraud, 1 count
Sentenced:
- 84 months imprisonment
- 1 year supervised release
- Court will issue a restitution order
Former Police Officer Pleads Guilty to Using Unreasonable ForceRead the Press Release
COLUMBUS, Ohio – A former Franklin Township police officer has pleaded guilty to using excessive force as a law enforcement officer.
Robert Wells, 49, of Pataskala, Ohio, pleaded guilty to one count of deprivation of rights under color of law.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Franklin County Prosecutor Ron O’Brien announced the plea offered today before U.S. Magistrate Judge Norah McCann King.
Wells was charged by indictment in September 2018. According to the charging document, on May 1, 2018, while acting in his then official capacity as a Franklin County Township police officer, Wells kicked an individual in the head while the victim was lying handcuffed on the ground. This deprived the victim of his Constitutional right to be free from the use of unreasonable force by a law enforcement officer and resulted in bodily injury to the victim.
Additionally, Wells then made false and misleading statements in his report relating to the arrest of the victim in order to cover up the excessive force and create a false understanding of the circumstances surrounding the arrest and injury.
U.S. Attorney Glassman commended the investigation of this case by the FBI. The case is being prosecuted by Criminal Chief Kenneth L. Parker and Franklin County Prosecutor Ron O’Brien, who has been designated as a Special Assistant United States Attorney.
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Former Office Manager Sentenced to 60-Months in Prison for His Role in Embezzlement and Bank Fraud SchemeRead the Press Release
TUCSON, Ariz. – On Dec. 18, 2018, Seth Nichols was sentenced by United States District Judge Cindy Jorgensen to 60 months in prison. Nichols had previously pleaded guilty to bank fraud.
Nichols used several accounting schemes to embezzle approximately $3,000,000 from his former employer, Marana Stockyards and Livestock Market. He used some of the stolen money to purchase cattle for Nichols Cattle, Inc., a family owned-and-operated cattle business, ownership interest in a helicopter, a down payment for a home, and gambling excursions to Las Vegas. Nichols used elaborate techniques to hide the stolen money, including photo-shopping bank statements and altering internal accounting systems.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by the U.S. Attorney’s Office, District of Arizona, Tucson.
CASE NUMBER: CR18-00167 -TUC-CKJ
RELEASE NUMBER: 2018-173_Nichols
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az