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11 December 2018
Saratoga County Man Sentenced for Lying During Attempt to Buy a GunRead the Press Release
ALBANY, NEW YORK – Michael Bramer, Jr., age 32, of Saratoga County, New York, was sentenced yesterday to time served (42 days in jail) and 3 years of supervised release for knowingly making a false statement to a licensed dealer in connection with the attempted acquisition of a firearm.
The announcement was made by United States Attorney Grant C. Jaquith and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Division.
A jury convicted Bramer following a 2-day trial in August 2018. Evidence presented during the trial established that on October 24, 2016, Bramer lied on a Federal Firearm Transaction Record – also known as an ATF Form 4473 – in connection with his attempt to buy a Savage .243 Axis rifle.
When asked on the ATF Form 4473 whether he was “subject to a court order restraining you from harassing, stalking, or threatening . . . an intimate partner?” Bramer responded “No.” The jury found that Bramer knew he was subject to such a court order when, 11 days earlier, on October 13, 2016, he appeared in Malta Town Court and was issued a Temporary Order of Protection, ordering him to refrain from assaulting, harassing, stalking, threatening and committing any criminal offense against an intimate partner, which was signed by both Bramer and the judge.
At sentencing, Senior United States District Judge Gary L. Sharpe found that Bramer demonstrated that he intended to purchase the firearm solely for lawful sporting purposes.
This case was investigated by the ATF and prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez.
Salinas Residents Charged with Murders and Other Racketeering Crimes in Salinas Gang CaseRead the Press Release
SAN JOSE - A federal grand jury returned murder charges against Anthony Valdez aka “Hitter,” aka “Tony Boronda,” and Kristopher Purcell, aka “K-Dawg,” announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The superseding indictment supplements charges brought October 11, 2018, against Purcell.
According to the indictment, Valdez, 21, and Purcell, 20, both of Salinas, Calif., are Norteño gang members and members of the Boronda Boys street gang. Valdez and Purcell, along with other Boronda Boys street gang members and associates, are accused of forming a “murder squad” that hunted and killed rival gang members, gang dropouts, and others who violated gang rules. The murder squad also targeted those perceived to be rival gang members and other persons when it suited the purposes of the gang.
In this case, Valdez and others are alleged to have murdered a victim on North Hebbron Avenue in Salinas on November 3, 2018. Valdez is charged with racketeering conspiracy, in violation of 18 U.S.C. § 1962(d); conspiracy to murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5); murder in aid of racketeering, in violation of 18 U.S.C. §§ 1959(a)(1) and 2; use of a firearm during and in relation to, or possession in furtherance of, a crime of violence, in violation of 18 U.S.C. §§ 924(c)(1)(A) and 2; and use of a firearm causing murder, in violation of 18 U.S.C. §§ 924(j)(1) and 2.
Purcell is alleged to have murdered a victim on Fremont Street in Salinas on February 11, 2017. Purcell remains charged with attempting to murder two victims on Orchard Avenue in Salinas the next day, February 12, 2017. In sum, Purcell is now charged with racketeering conspiracy, in violation of 18 U.S.C. § 1962(d); conspiracy to murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5); murder in aid of racketeering, in violation of 18 U.S.C. §§ 1959(a)(1) and 2; use of a firearm causing murder, in violation of 18 U.S.C. §§ 924(j)(1) and 2; two counts of attempted murder in aid of racketeering, in violation of 18 U.S.C. §§ 1959(a)(5) and 2; two counts of assault with a dangerous weapon in aid of racketeering, in violation of 18 U.S.C. §§ 1959(a)(3) and 2; and two counts of use of a firearm during and in relation to, or possession in furtherance of, a crime of violence, in violation of 18 U.S.C. § 924(c).
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted of murder in aid of racketeering, the defendants would face a mandatory sentence of life in prison or death. The remaining charges carry separate penalties. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Valdez was arrested and made an initial appearance in federal court today. He is scheduled to make his next appearance on December 27, 2018, for identification of counsel.
The prosecution is the result of an investigation conducted by the Salinas Police Department in partnership with the FBI.
Members of the public who have information regarding gang-related activities are encouraged to contact FBI San Francisco Division at 415-553-7400.
Rockport Man Pleads Guilty to Health Care Fraud and EmbezzlementRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Michael A. Morrison, 42, of Rockland, Maine, pleaded guilty in U.S. District Court to health care fraud and embezzlement from a health care benefit program.
According to court documents, between 2005 and 2016, the defendant was the manager of the Trade Winds Health, Swim and Tan Club in Rockland which also operated a physical therapy practice known as Coastal Physical Therapy. From 2014 through 2016, the defendant billed about $175,000 in false claims for reimbursement to Medicare, MaineCare, Anthem Blue Cross and Blue Shield and a Veterans Administration health care program. Some claims were false because the defendant exaggerated the length of time therapists spent with patients. He also made claims for appointments that were cancelled, for services that he provided even though he was not properly licensed, and using the names of therapists who were not working on the dates claimed.
The defendant also embezzled over $26,000 from the Health Club by using a Health Club credit card to pay for personal Amazon.com purchases and stole about $4,500 in cash that he failed to deposit to the Health Club’s bank account.
The defendant faces up to ten years in prison and a fine of up to $250,000 on each count. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General; the Maine Attorney General’s Office, Healthcare Crimes Unit; the Department of Veterans Affairs, Office of Inspector General; and the Rockland Police Department.
Rochester Man Accused of Taking A 14 Y/O Girl to NYC Illegally Charged with Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Robert Gonzalez, 42, of Rochester, NY, was charged by criminal complaint with production and possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison and a maximum of 30 years.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that according to the complaint, on December 3, 2018, the Rochester Police Department received a 911 call from a mother regarding her missing 14-year-old daughter who had not been seen since December 1, 2018. The mother, who attempted to call her daughter’s cell phone several times without success, told police that her daughter left the house that day around 1:00 p.m. without her permission. The mother also told officers that she recently discovered that her daughter was in an inappropriate sexual relationship with her neighbor, Robert Gonzalez. The mother stated that she caught the defendant kissing her daughter in front of her house, and that her daughter confessed to her that she has been dating Gonzalez and that they had sex numerous times.
In addition, the mother stated that there were messages from her daughter’s Facebook account between her and the defendant indicating that they were in a sexual relationship. Messages included: “I love you,” “Come over,” and Gonzalez asking if they were going to make love to which the daughter responded, “yeah 100.” The mother also stated that a friend advised her that the defendant took her daughter to New York City. A Facebook photograph of the daughter and a New York City skyline in the background was posted to the daughter's account on December 2, 2018. A friend of Robert Gonzalez also told officers that Robert Gonzalez told him that he took the daughter to New York City but would not state exactly where in New York City.
An emergency trace was put on the defendant's cell phone which showed that he was in fact in New York City. An Amber Alert was issued and the FBI and NYPD assisted with the investigation and ultimately apprehended Robert Gonzalez. The defendant was apprehended on December 6, 2018, at the Red Carpet Inn in Brooklyn, NY.
At the time of his arrest, officers seized Gonzalez’s cell phone. A search of the recovered numerous videos, taken between November 12, 2018, and November 19, 2018, of the defendant engaging in sexual activity with the daughter.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Marian W. Payson.
The criminal complaint is the result of an investigation by the Rochester Police Department, under the direction of Chief Mark Simmons, the Federal Bureau of Investigation, under the direction Special Agent-in-Charge Gary Loeffert, and the New York Police Department, under the direction of Chief Terence Monahan.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendants are presumed innocent until and unless proven guilty.
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Richmond County sweep nets indictments in Augusta's highest-crime areaRead the Press Release
AUGUSTA, GA – Indictments unsealed Tuesday, Dec. 11, in U.S. District Court in Augusta charged 20 people with violations of federal narcotics and firearms possession laws.
Operation 30906, which coordinated federal, state and local agencies through the U.S. Department of Justice Project Safe Neighborhoods and the FBI Safe Streets Gang Task Force, targeted offenders in Augusta’s highest-crime area. The operation is in response to the U.S. Attorney General’s call to fight violent crime by finding and removing “alpha” criminals in communities suffering from a disproportionate level of criminal activity, said U.S. Attorney Bobby L. Christine.
All of those named in the federal indictments have prior felony convictions and now face charges ranging from possession of controlled substances with intent to distribute, to possession of firearms by convicted felons or those conducting drug crimes. One defendant also is charged with counterfeiting United States currency. Cocaine, methamphetamine and marijuana were seized during the operation, along with at least 29 firearms and approximately $1,000 in counterfeit money.
The defendants charged are:
Lequita Brady, 29, Augusta;
Jeffrey Brown, 46, Augusta;
Alphonso Burley, 27, Augusta;
Quinton Clayton, 24, Augusta;
Marty Copeland, 44, Augusta;
Adrian Curry, 39, Augusta;
Michelle Davis, 29, Augusta;
Jarmhal Gibson, 30, Augusta;
Drequan Gray, 24, Augusta;
Anthony Habersham, 54, Augusta;
Marquis Jones, 29, Augusta;
Charles King, 36, Hephzibah;
Dustin McClellan, 23, Augusta;
Von McNeely, 31, Augusta;
Keto “Silk” Morgan, 37, Augusta;
Matthew Nattinger, 39, Augusta;
Kaone Riley, 29, Allendale, S.C.;
Alvin Sturgis, 31, Augusta;
Tomario “Jabo” Thomas, 31, Augusta; and,
Dana Williams, 34, Augusta.
Additional defendants arrested during Operation 30906 face state charges, including aggravated assault, armed robbery, kidnapping and firearms offenses. Those arrested include:
Terry Stanley, 40, Augusta;
Shawn Khaaliq Holliman, 20, Augusta;
Deondre Ware, 25, Augusta;
Marqueen Mays, 33, Hephzibah;
Alvin Bell, 20, Augusta;
Makale Austin Jones, 19, Augusta; and,
Devonte Bryant, 19, Augusta.
“The law-abiding citizens of the 30906 zip code in Augusta are victimized by a relative handful of criminals,” said U.S. Attorney Bobby L. Christine. “This operation is a vital step toward returning the security stolen by such lawless behavior.”
“The federal indictments and resulting arrests made by the FBI Safe Streets Gang Task Force, along with our law enforcement partners, is another example of our commitment to making our communities safer,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “That commitment doesn’t end with these arrests, as we will continue to devote significant investigative resources toward removing violent criminals from our neighborhoods, making them safer for law abiding citizens.”
Beau Kolodka, Assistant Special Agent in Charge of the Augusta Office of the ATF, said, “ATF will continue to work with our law enforcement partners to stem the flow of firearms from legal commerce into the hands of convicted felons, violent criminal organizations or any person who has an intent to negatively impact the safety of our communities and neighborhoods.”
“The Secret Service was proud to partner with the U.S. Attorney’s Office, Richmond County Sheriff’s Office, and other law enforcement agencies to indict a group of individuals who preyed on the citizens of Augusta,” said Kimberly A. Cheatle, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
“Through cooperation with local, state, and federal authorities we have been able to target violent offenders in South Augusta, an area that sees a significant amount of gun-related violent crime,” said Augusta Judicial Circuit District Attorney Natalie Paine. “This cooperation is the first step in removing individuals who chronically use and carry guns illegally.”
Sheriff Richard Roundtree emphasized that the No. 1 goal of the Richmond County Sheriff’s Office is the reduction of violent crime. “These indictments/arrests are a testament to the hard-working deputies of the Sheriff’s Office along with their federal and state partners,” Roundtree said. “The Sheriff’s Office will continue do everything possible to insure the safety/security of the Richmond County community and its citizens.”
A criminal indictment contains only charges. Defendants are presumed innocent unless and until proven guilty.
Agencies participating in Operation 30906 include the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Secret Service, the Georgia Bureau of Investigation (GBI), the Richmond County Sheriff’s Office, the Augusta Judicial Circuit District Attorney’s Office, and the United States Attorney’s Office for the Southern District of Georgia.
Project Safe Neighborhoods (PSN) brings together all levels of law enforcement to reduce violent crime and, nationwide, serves as the centerpiece of crime reduction strategies developed by all U.S. Attorney’s Offices.
Assistant United States Attorneys Tara Lyons, Hank Syms, and Alejandro V. Pascual IV, and Special Assistant United States Attorney Michael Marchman, are prosecuting the cases on behalf of the United States.
Postal Employee Charged with Stealing Mail ItemsRead the Press Release
ERIE, Pa. - A resident of Allegany, New York has been indicted by a federal grand jury in Erie on charges of theft of mail by postal employee, United States Attorney Scott W. Brady announced today.
The eighteen-count indictment named Bryant Richard, 29, as the sole defendant.
According to the indictment presented to the court, from in and around October 2018, to in and around November 2018, Richard, who was a postal employee, stole 18 items of mail which had been submitted to the Postal Service for delivery.
The law provides for a maximum total sentence of 90 years in prison, a fine of $4,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Postal Service, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Poplar man admits sex abuse chargeRead the Press Release
GREAT FALLS – Poplar resident Brian Douglas Eagle, 23, admitted sex abuse charges in federal court on Monday after he tried to assault the victim while she was taking a shower, U.S. Attorney Kurt G. Alme said.
Eagle pleaded guilty to abusive sexual contact.
U.S. District Judge Brian M. Morris presided at the hearing. Sentencing is set for March 21, 2019. Eagle is detained.
Eagle faces a maximum 10 years in prison, a $250,000 fine and five years to life supervised release.
If the case had gone to trial, the government would have presented the following information as evidence:
On Feb. 7, 2018 in Poplar, on the Fort Peck Indian Reservation, the victim was taking a shower by herself in her home when she saw a shadow. Eagle entered the shower. He was naked and pushed the victim to a corner of the shower. Eagle then had the victim touch him before letting her get out of the shower. The victim got dressed and ran to another house where she spent the night. The resident contacted law enforcement.
Assistant U.S. Attorney Paulette Stewart and Assistant U.S. Attorney Bryan Dake are prosecuting the case, which was investigated by the FBI and Fort Peck Law Enforcement.
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Pittsfield Woman Sentenced to 46 Months for Oxycodone and Heroin ConspiracyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Deborah Toothaker, 55, of Pittsfield, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 46 months in prison and three years of supervised release for conspiring to distribute oxycodone and heroin. She pled guilty on July 23, 2018.
According to court records, between June 2015 and October 2016, Toothaker conspired with others to distribute oxycodone and heroin in the Newport, Maine area. The defendant obtained the heroin and oxycodone from out-of-state co-conspirators and sold it to customers from her residence and area motels.
Judge Woodcock said that the sentence was warranted because the defendant “chose to make money off other people’s misery.”
The case was investigated by the U.S. Drug Enforcement Administration and the Somerset County Sheriff’s Department and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Pharmacy Tech Sentenced for Stealing Fentanyl from HospitalRead the Press Release
KANSAS CITY, KAN. – A former pharmacy technician was sentenced Monday to 3 years of probation for stealing fentanyl from a Kansas hospital where he worked, U.S. Attorney Steve McAllister said. In addition, he was ordered to pay more than $4,300 in restitution.
Heydon G. White, 37, Stilwell, Kan., pleaded guilty to one count of unlawfully obtaining fentanyl. In his plea, he admitted he stole fentanyl from the University of Kansas Hospital, where he worked as a pharmacy technician. His duties included stocking computerized cabinets known as AcuDose machines and removing expired medication for disposal. An internal audit determined White was responsible for a high number of transactions involving intravenous bags of fentanyl and saline solution. The Kansas Board of Pharmacy revoked his license, citing the theft of 483 bags of fentanyl.
McAllister commended the Drug Enforcement Administration and Assistant U.S. Attorney Trent Krug for their work on the case.
Owner and Officers of Japanese Fishing Vessel Charged with Unlawful Trafficking and Smuggling of Shark FinsRead the Press Release
HONOLULU – The owner and officers of a Japanese-flagged fishing vessel were charged in federal court today with aiding and abetting the trafficking and smuggling of 962 shark fins into and out of Hawaii on November 7, 2018.
According to court documents and information presented in court, the Japanese-flagged fishing vessel, M.V. Kyoshin Maru No. 20, engaged in longline tuna fishing in the southern Pacific Ocean for approximately one year. The officers were Japanese nationals, and the fishermen were Indonesian nationals. During the voyage, the fishermen harvested fins from approximately 300 sharks, in some instances while the sharks were stunned but still alive, and discarded the finless carcasses into the ocean, all under the supervision of the Captain, and at the direction of the Fishing Master and First Engineer. The Captain, Fishing Master, First Engineer, and many of the Indonesian fishermen all kept shark fins to take home with them.
On or about November 6, 2018, the Kyoshin Maru traveled to a location near Honolulu, Hawaii, but more than 12 miles from shore, where it met a water taxi that had been arranged by a Vessel Agent from a local marine navigation corporation. The Indonesian fishermen disembarked the Kyoshin Maru and boarded the water taxi. The Kyoshin Maru then left for Japan with the Captain, Fishing Master, and First Engineer onboard, still in possession of shark fins. Meanwhile, the Indonesian fishermen traveled to Pier 36, where they legally entered the United States for the purpose of traveling in the custody of the Vessel Agent to Honolulu International Airport, in order to board previously-ticketed flights to Indonesia.
During routine screening, officers with the Transportation Security Administration discovered shark fins in checked luggage. Upon discovering the shark fins, TSA immediately notified the U.S. Fish and Wildlife Service, which determined the checked luggage belonged to 10 of the Indonesian fishermen and included approximately 190 pounds of shark fins, which is worth as much as $57,850 on the black market.
Some of the shark fins were from oceanic whitetip sharks, which are listed as threatened species under the Endangered Species Act and are protected under the Convention on International Trade in Endangered Species (CITES), an international convention with over 180 parties, including the United States, Japan and Indonesia. According to the National Oceanic and Atmospheric Administration, the oceanic white tip shark has declined by approximately 80-95% across the Pacific Ocean since the mid-1990s. Other fins were from silky sharks and bigeye thresher sharks, which are also protected under the CITES Convention.
The 10 Indonesian fishermen were subsequently charged in a criminal complaint in United States v. Abdurahman, et. al., Mag No. 18-01253 (D. Haw. 2018), and are currently released on pretrial supervision. The criminal complaint filed today brings charges against five additional defendants: Hamada Suisan Co., Ltd, the Japanese business that owned and operated the vessel; JF Zengyoren, a Japanese fishing cooperative to which the vessel belonged; Hiroyuki Kasagami, the Captain of the vessel; Toshiyuki Komatsu, the Fishing Master of the vessel; and Hiroshi Chiba, the vessel’s First Engineer. The three Japanese nationals charged were not arrested because they never entered the United States. They remain at large, presumably in Japan.
The charges filed today include four counts of aiding and abetting violations of the Lacey Act, which each carry a maximum term of 5 years imprisonment; three counts of aiding and abetting the Smuggling of Goods Into the United States, which each carry a maximum term of 20 years imprisonment; and four counts of aiding and abetting the attempted Smuggling of Goods From the United States, which each carry a maximum term of 10 years imprisonment. The two corporate defendants each face a maximum fine of $500,000 per count, or $5.5 million. The three individual defendants each face a maximum fine of $250,000 per count, or $2.75 million. The charges in the criminal complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If the defendants are ultimately convicted of any offense, the sentencing will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
In announcing the charges, U.S. Attorney for the District of Hawaii Kenji M. Price stated: “Shark finning is unlawful and takes a very real toll on our precious ocean ecosystem. My office is committed to combatting this practice by prosecuting to the fullest extent of the law anyone found to be trafficking in shark fins.”
United States laws prohibit, within U.S. jurisdiction: the removal of any fins of any shark at sea; the possession of such fins aboard a fishing vessel that are not attached to the corresponding carcass; and the transfer or landing of any such detached fin. Some of these laws implement U.S. obligations under international conventions. In addition, the laws of the State of Hawaii make it unlawful for any person to possess, sell, offer for sale, trade, or distribute shark fins. Due in part to the over-harvest of sharks, some species of shark—including three species found among the fins at issue in this case—are protected under the CITES Convention.
This case is being investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, with assistance from: the National Oceanic and Atmospheric Administration, Office of Law Enforcement; Homeland Security Investigations; U.S. Customs and Border Protection; the U.S. Postal Inspection Service; and the U.S. Coast Guard. It is being prosecuted by Assistant U.S. Attorney Marc A. Wallenstein, U.S. Attorney’s Office for the District of Hawaii, and Senior Counsel for Wildlife Programs Elinor Colbourn, Environmental Crimes Section, U.S. Department of Justice. The prosecution team is coordinating with the U.S. Department of State on this matter.
Oklahoma Man Convicted of Defrauding Vinita Bank of $177,000Read the Press Release
TULSA, Okla. – A former bank loan officer pleaded guilty today in U.S. District Court to defrauding Oklahoma State Bank, in Vinita, of more than $177,000, announced U.S. Attorney Trent Shores.
Charles Lee Enyart, 46, of Vinita, pleaded guilty to two counts of embezzlement and willful misapplication by a bank officer.
Enyart admitted to embezzling funds from November 2016 to December 2017 while employed at the bank. On Nov. 28, 2016, Enyart received $99,000 based on a false loan application to purchase cattle that he submitted under another individual’s name. Later, from September to December 2017, Enyart made multiple cash withdrawals and purchased cashier’s checks, using proceeds from a separate construction loan. Enyart withdrew the money under false pretenses, stating the money was to be used for the benefit of the individual who had applied for the loan. In both instances, he admitted to knowing the loans were insured by the Federal Deposit Insurance Corporation (FDIC) and that he used the money for his own personal benefit.
“Charles Enyart lacked the integrity required for the position the bank entrusted to him. He used the good names of individuals in the Vinita community for his own personal gain, taking out loans in their names or stealing funds from their accounts,” said U.S. Attorney Trent Shores. “Prosecuting white collar crime is a priority for the Department of Justice. My Assistant U.S. Attorneys will continue to prosecute individuals, like Mr. Enyart, who break the law by committing embezzlement and fraud and work to recover funds for their victims.”
U.S. District Chief Judge Gregory K. Frizzell accepted the guilty plea and set sentencing for March 11. At that time, Enyart faces a possible maximum penalty of 30 years in prison, a $1 million fine, and five years of supervised release.
The FBI and Craig County District Attorney’s Office conducted the investigation. Assistant U.S. Attorney Joe Wilson prosecuted the case.
Northfield Woman Sentenced to 37 Months for Participating in A Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD, N.H. – Alicia Morin, 31, of Northfield, New Hampshire, was sentenced on Monday to serve 37 months in prison for participating in a conspiracy to distribute, and possession with intent to distribute, fentanyl, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, during an ongoing drug trafficking investigation that included wiretaps of certain telephones, investigators learned that on March 9, 2018, Morin intended to travel from New Hampshire to a location in Massachusetts to purchase fentanyl. Agents conducted surveillance in the area of the transaction and observed a hand-to-hand exchange between a known drug trafficker and the front right seat passenger of the vehicle. The vehicle left Massachusetts and agents followed it directly to New Hampshire. A New Hampshire State Trooper stopped the vehicle for traffic violations and identified Morin as the front seat passenger. Approximately 31 grams of fentanyl were located in the vehicle. Some of the fentanyl was hidden in her bra. The investigation revealed that from February 23, 2018, and continuing through April 5, 2018, Morin ordered fentanyl on multiple occasions from the drug distributors in Massachusetts.
Morin previously pleaded guilty on August 27, 2018.
“The transportation of fentanyl into New Hampshire has exposed our citizens to tragic consequences” said U.S. Attorney Murray. “In order to stop the flow of this deadly drug and protect the public, we will continue to identify, arrest and prosecute those who bring fentanyl into the Granite State. Traffickers should be aware that they face substantial prison terms if they continue with their illegal trade”.
“New Hampshire is in the midst of a devastating opioid crisis, as deaths from fentanyl climb,” said DEA Special Agent in Charge Brian D. Boyle. “The DEA will continue to use every resource available to identify those, like Ms. Morin, who are contributing to the crisis. Today’s sentence not only holds Ms. Morin accountable for her crimes but serves as a warning to those traffickers who are fueling the opioid epidemic.”
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Immigration and Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case is being prosecuted by Assistant United States Attorneys Georgiana L. Konesky, Seth R. Aframe and Debra M. Walsh.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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New York Man Sentenced to Prison in Fraudulent Tax Refund SchemeRead the Press Release
In the Eastern District of North Carolina, a New York resident was sentenced to serve 46 months in prison for conspiring to defraud the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, Elias Amador was involved in a large-scale fraudulent tax refund scheme using the stolen identities of Puerto Rican citizens. Tax fraud schemes sometimes use Puerto Rican Social Security numbers because individuals living in Puerto Rico are generally not required to file income tax returns. Consequently, these individuals are not alerted if someone uses their personal information to file fraudulent income tax returns.
From approximately 2010 to 2012, Amador and others conspired to cash more than $750,000 in refund checks generated by fraudulent tax returns. Amador obtained the refund checks, which were issued to addresses in New York and New Jersey, and cashed them using a runner and two check cashers in North Carolina. Amador’s three co-conspirators previously were convicted and sentenced to prison.
In addition to the term of imprisonment imposed, United States District Judge Louise W. Flanagan also ordered Amador to serve 3 years of supervised release and to pay $762,217 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Lauren Archer of the Tax Division, who prosecuted the case. Principal Deputy Assistant Attorney General Zuckerman also thanked the U.S. Attorney’s Office for the Eastern District of North Carolina for their assistance.
Nevada Pain Management Doctor Pleads Guilty to Unlawful Distribution of OpioidsRead the Press Release
LAS VEGAS, Nev. – A Las Vegas pain management doctor pleaded guilty Monday in federal court for unlawfully prescribing opioids, announced U.S. Attorney Dayle Elieson of the District of Nevada.
Dr. Steven A. Holper, 67, pleaded guilty to distribution of a controlled substance. He was indicted in February of this year. United States District Judge Jennifer A. Dorsey accepted the guilty plea. A sentencing hearing was scheduled for March 19, 2019. The statutory maximum penalty for distribution of a controlled substance is 20 years in prison and a $1,000,000 fine.
Holper, who has been a licensed physician in Nevada since 1990, admitted that between July 2015 and March 2016, he unlawfully prescribed Fentanyl, Oxycodone, and Hydrocodone to his patients outside the proper standard of care, and without a legitimate medical purpose. He routinely prescribed these highly addictive opioids to patients who did not have a medical necessity for the prescriptions. Holper’s actions contributed to the opioid epidemic in Nevada and elsewhere.
In 2016, there were 408 opioid-related deaths in Nevada, according to the Nevada Department of Health and Human Services. In 2016, Nevada’s per capita prescription rate for opioids was 87/100 residents. Nevada ranked as the sixth highest state for the number of milligrams of opioids distributed per adult, according to a DEA study.
The case was investigated by the DEA, the FBI, the Office of Inspector General of the U.S. Department of Health and Human Services, and the Henderson Police Department. Assistant U.S. Attorney Kilby Macfadden is prosecuting the case.
If you have a tip or information about illegal sales or distribution of prescription opioids, including Fentanyl, Oxycodone, and Hydrocodone by doctors and pharmacies, call the DEA at 1-877-RX-Abuse (792-2873) or contact the FBI at tips.fbi.gov.
For information about the harmful effects of illicit drug use, visit www.JustThinkTwice.com for teens and www.GetSmartAboutDrugs.com for parents, educators, and caregivers.
The Opioid Fraud and Abuse Detection Unit is a program that utilizes data to help combat the devastating opioid crisis. The District of Nevada was selected as one of 12 districts nationally to participate in the pilot program. The District of Nevada has assigned an experienced prosecutor that focuses solely on investigating and prosecuting health care fraud related to medical professionals who prescribe opioids, that unlawfully divert of dispense prescription opioids for illegitimate purposes.
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NASA Facility Chief Guilty of Receiving Illegal GratuitiesRead the Press Release
NORFOLK, Va. – A Snow Hill man pleaded guilty today to receiving gratuities in exchange for official acts performed in his capacity as a government official, and to stealing funds from a government contract.
According to court documents, Steven Eric Kremer, 53, was the Chief of the Range and Mission Management Office at the National Aeronautics and Space Administration’s (NASA) Wallops Flight Facility (WFF). In that position, Kremer was responsible for administering the Range Operations Contract (ROC) – a multi-year government contract intended to provide services at test facilities and launch control centers. For a one-week period during each of the summers between 2008 and 2015, Kremer was provided the free use of a vacation home located on the Eastern Shore of Virginia, owned by an employee of a ROC subcontractor. In exchange, Kremer facilitated the selection of the subcontractor’s firm to supply interior design services and office furniture for WFF. Kremer also utilized ROC funds to purchase gift cards for his personal use, and to obtain a piece of personalized art.
Kremer pleaded guilty to receipt of gratuities by a public official and theft of government funds, and faces a maximum penalty of 10 years in prison when sentenced on March 27, 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 Paul K. Martin, National Aeronautics and Space Administration (NASA) Inspector General, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after Senior U.S. District Judge Henry Coke Morgan, Jr. accepted the plea. Assistant U.S. Attorneys V. Kathleen Dougherty and Stephen W. Haynie 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 by searching for Case No. 2:18-cr-163.
Mission Man Sentenced on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Prohibited Person in Possession of a Firearm was sentenced on December 10, 2018, by U.S. District Judge Roberto A. Lange.
Sean Stinson, age 23, was sentenced to 21 months in federal prison, followed by 2 years of supervised release, forfeiture of two firearms, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Stinson was indicted by a federal grand jury on November 9, 2016. He pled guilty on September 20, 2018.
The conviction stemmed from an incident that occurred on August 28, 2016, following a traffic stop, where after making contact with Stinson, the officer smelled a strong odor of burnt marijuana. Following a search of the vehicle, two plastic baggies containing marijuana were found. Stinson revealed there was a firearm in the vehicle. Stinson is an unlawful user of, and addicted to a controlled substance, making it illegal for him to possess firearms.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Meghan N. Dilges prosecuted the case.
Stinson was immediately turned over to the custody of the U.S. Marshals Service.
Milton Man Pleads Guilty to Possessing Heroin/Fentanyl MixtureRead the Press Release
HUNTINGTON, W.Va. – A Milton man caught with a heroin/fentanyl mixture that he intended to sell earlier this year pled guilty yesterday to a federal drug charge, announced United States Attorney Mike Stuart. Jeremy A. Kinder, 39, entered a guilty plea to possession with intent to distribute heroin in federal court in Huntington. Stuart commended the investigative efforts of the Huntington FBI Drug Task Force and the Cabell County Sheriff’s Department.
“Fentanyl is deadly,” said United States Mike Stuart. “And it’s being mixed with numerous illicit drugs, not just heroin. We are doing everything within our power to reduce overdose deaths – including prosecuting every readily provable fentanyl case in Cabell County as part of Operation Synthetic Opioid Surge (S.O.S.).”
On April 4, 2018, investigators executed a search warrant at Kinder’s residence located at 1113 Amos Street in Milton. Kinder was in his residence during the search and investigators found 29 grams of heroin in Kinder’s pocket. Investigators also found over $6,600 in cash and digital scales used to weigh heroin in Kinder’s residence. Kinder admitted that he intended to sell the heroin in the Milton area. Kinder also admitted that he had been distributing heroin in the Milton area over the previous four-month period and that he was responsible for the distribution of up to 400 grams of heroin. The heroin seized during the search was tested by a chemist with the West Virginia State Police Laboratory and was found to also contain fentanyl, a powerful opiate painkiller.
Kinder faces up to 20 years in federal prison when he is sentenced on March 18, 2019.
Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case is being prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.), a focused enforcement effort that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
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Miles City man admits firearms chargesRead the Press Release
BILLINGS—A Miles City man who admitted to making silencers pleaded guilty to four firearms violations during a federal court hearing on Monday, U.S. Attorney Kurt G. Alme said.
Brendan John Jones, 52, pleaded guilty to two counts of possession of a firearm not registered in the National Firearms Registration and Transfer Record and to two counts of possession of a firearm not identified by serial number.
U.S. Magistrate Judge Timothy J. Cavan presided. Sentencing is set for April 24, 2019. Jones is released.
Jones faces a maximum 10 years in prison, a $10,000 fine and three years supervised release.
If the case had gone to trial, the government would have presented the following information as evidence:
An investigation began in April 2018 when law enforcement received information that Jones was in possession of explosives and also making illegal silencers. Undercover agents met with Jones at his business, Jones Auto Detailing, and discussed explosives. Jones showed the agents dynamite that appeared to be old. The agents also asked about silencers for sale. Jones told the agents he made silencers out of Maglite flashlights and had made one from an aluminum baseball bat. The agents made preliminary arrangements to buy silencers and explosives.
On May 8, 2018, law enforcement executed a search warrant on Jones’ business. Officers found a shoe box labeled as containing dynamite, homemade explosive devices and other items on top of a soda machine. Officers also found two homemade silencers and a portion of another part used to make a silencer. One of the silencers appeared to be made from a baseball bat, while the other appeared to have been made from a bicycle part.
In an interview with law enforcement the same day, Jones confessed to possessing the explosives and silencers and to manufacturing the silencers. None of the silencers recorded contained serial numbers.
Assistant U.S. Attorney Zeno Baucus is prosecuting the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together federal, state, local and tribal law enforcement agencies and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals.
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Mexican Man Sentenced to Prison for Illegally Reentering the United StatesRead the Press Release
A Mexican man who illegally returned to the United States after being deported was sentenced December 10, 2018, to nearly three months in prison.
Jose Arenas-Aguilar, age 32, a citizen of Mexico illegally present in the United States and residing in Denver, Colorado, received the prison term after an October 2, 2018, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Arenas-Aguilar admitted he had previously been deported from the United States in April 2015 and illegally reentered the United States without the permission of the United States government. Arenas-Aguilar admitted he illegally returned to the United States in May 2015, one month after being deported. Arenas-Aguilar had also been granted a voluntary departure from the United States in September 2012. Arenas-Aguilar was found by immigration agents in September 2018 after he was charged in Floyd County, Iowa, with operating a motor vehicle while intoxicated. That case is still pending.
Arenas-Aguilar was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Arenas-Aguilar was sentenced to 88 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Arenas-Aguilar 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-2046-CJW. Follow us on Twitter @USAO_NDIA.
Mescalero Apache Man Sentenced for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Patrick Moquino, 39, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., was sentenced today in federal court in Las Cruces, N.M., to 21 months in prison followed by 3 years of supervised release for his conviction on an assault charge.
On June 13, 2018, Moquino pled guilty to assault resulting in serious bodily injury. He admitted assaulting an Apache man on March 14, 2017, on the Mescalero Apache Indian Reservation in Otero County, N.M., by punching and kicking the victim while the victim was lying on the ground. Moquino further admitted that the victim suffered a fractured nose and head trauma as the result of the assault.
This case was investigated by the Las Cruces office of the FBI and the Mescalero Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Meridian Resident Pleads Guilty to Bribery Scheme Involving Correctional OfficerRead the Press Release
BOISE - Tiffany Culbertson, 23, of Meridian, Idaho, pleaded guilty last week to conspiracy to commit Hobbs Act extortion under official color of right, U.S. Attorney Bart M. Davis announced. Culbertson pleaded guilty in front of Senior U.S. District Judge Edward J. Lodge pursuant to a written plea agreement filed with the Court. Culbertson’s sentencing is set for February 21, 2019.
According to her plea agreement, Culbertson agreed with an Idaho Department of Correction (IDOC) inmate, Colin McIntyre, 27, of Stanfield, Oregon, to pay a correctional officer at an IDOC prison to bring in contraband cell phones. Culbertson then followed through with the plan, purchasing a cell phone and delivering it to the correctional officer, Joshua Barney, 43, of Boise, along with a bribe payment. Barney then brought the phone into the prison and delivered it to McIntyre, which was prohibited under IDOC policies.
Culbertson was one of three defendants charged by federal indictment with multiple crimes involving the bribery scheme. In prior court proceedings, co-defendants Barney and McIntyre pleaded guilty to conspiracy to commit Hobbs Act extortion under official color of right. McIntyre is set to be sentenced on February 14, 2019. Barney is set to be sentenced on February 19, 2019.
Conspiracy to commit Hobbs Act extortion under official color of right is punishable by up to 20 years imprisonment, a maximum fine of $250,000, and a term of supervised release of up to three years.
This case was investigated by the Federal Bureau of Investigation and IDOC’s Special Investigations Unit.
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McKeesport Man Sentenced to 2½ Years in Prison for Passing Counterfeit CashRead the Press Release
PITTSBURGH, Pa. - A resident of McKeesport, Pa., has been sentenced in federal court to 2½ years in prison followed by three years of supervised release and was ordered to pay $9,570.00 in restitution on his conviction of conspiracy and passing and uttering counterfeit money, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Bruce M. Charles, Jr., 32.
According to information presented to the court, Charles conspired and passed counterfeit $100, $50, and $20 FRNs throughout the Western District of Pennsylvania.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Secret Service for the investigation leading to the successful prosecution of Charles.
Marion Prison Inmate Pleads Guilty to Possessing MarijuanaRead the Press Release
Raydale R. Mitchell, 48, currently a Federal Bureau of Prisons inmate, pled guilty today in United States District Court in Benton to possessing marijuana in November 2017 in the United States Penitentiary at Marion, Illinois, when he was an inmate confined to that facility. Mitchell was charged with that offense by a Federal Grand Jury in August 2018.
Sentencing is currently set for March 20, 2019, at 10:00 a.m. at the United States Courthouse in Benton. Mitchell faces up to an additional 5 years in prison for the marijuana offense which must be imposed consecutively to the 168-month sentence for distributing heroin, imposed in 2013, that he was serving at the time he possessed the marijuana.
Mitchell was returned to the custody of the United States Marshal to await sentencing in this case.
The investigation leading to the charge in this case was conducted by the Federal Bureau of Investigation and the Federal Bureau of Prisons. The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Manchester Man Sentenced to 30 Months for Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD, N.H. – Albert Gordon, 45, of Manchester, was sentenced on Monday to serve 30 months in prison for participating in a conspiracy to distribute, and possession with intent to distribute, fentanyl, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in the course of an ongoing drug trafficking investigation that included wiretaps of certain telephones, investigating agents learned that on March 7, 2018, an individual intended to travel from New Hampshire to a location in Massachusetts to purchase fentanyl. Agents conducted surveillance in the area of the transaction and observed a hand-to-hand exchange between a known drug trafficker and the driver of the car at the driver’s side window. The vehicle left Massachusetts and agents followed it directly to New Hampshire. A New Hampshire State Trooper stopped the vehicle. During the traffic stop, the Trooper subsequently located an orange bag containing approximately 184 grams of fentanyl. Gordon admitted that another individual had asked him and his girlfriend to drive to Massachusetts to buy drugs and that they had agreed to do so.
The defendant previously pleaded guilty on August 29, 2018.
“Fentanyl is a deadly drug that continues to cause serious damage to communities throughout the Granite State,” said U.S. Attorney Murray. “Those who choose to transport fentanyl into New Hampshire face serious prison terms. Fentanyl trafficking will be prosecuted aggressively. By targeting drug traffickers and getting fentanyl off the street, we are striving to protect the lives and safety of our citizens.”
“Fentanyl is causing deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison,” said DEA Special Agent in Charge Brian D. Boyle. “This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners.”
The case was a collaborative investigation that involved the Drug Enforcement Administration; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Immigration and Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case is being prosecuted by Assistant United States Attorneys Georgiana L. Konesky, Seth R. Aframe and Debra M. Walsh.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Man from Mexico Charged with Methamphetamine OffensesRead the Press Release
United States Attorney Ron Parsons announced that a man from San Jose, Mexico, has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Possession with Intent to Distribute a Controlled Substance.
Heriberto Navarro Ortiz, age 32, was indicted on December 4, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 7, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $10,000,000 fine, a minimum of 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning no later than November 17, 2018, Ortiz knowingly and intentionally combined, conspired, confederated, and agreed with others to knowingly and intentionally distribute and possess with intent to distribute 500 grams or more of methamphetamine. The Indictment also alleges that on November 22, 2018, Ortiz knowingly possessed with intent to distribute 500 grams or more of methamphetamine.
The charges are merely accusations and Ortiz is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Ortiz was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Kinmundy, IL Man Sentenced to 6 1/2 Years in Prison for Bank FraudRead the Press Release
Alfred L. Cross, 75, of Kinmundy, IL, (originally from Mattoon, IL), was sentenced to 78 months in prison on his federal conviction on five counts of bank fraud, announced Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois. The evidence presented in court established that Cross defrauded seven southern Illinois banks out of more than $500,000.
Cross pled guilty to the charges in the indictment on March 16, 2018. Facts presented at the plea hearing established that Cross opened checking accounts at the following banks: Bradford National Bank in Greenville, Illinois; Community First Bank of the Heartland in Mount Vernon, Illinois; the Farmers and Merchants National Bank in Nashville, Illinois; First Southern Bank in Carbondale, Illinois; Midland States Bank in Effingham, Illinois; State Bank of Whittington, in Benton, Illinois; and Washington Savings Bank, located in Effingham, Illinois. After these accounts had been open for a short period of time, Cross deposited into each of the accounts very large checks, ranging from $18,875 to $148,000. These checks were drawn on out-of-state bank accounts in the names of businesses that Cross controlled. At the time he deposited these checks, Cross knew there were insufficient funds in the out-of-state accounts to cover the checks. Before the checks could be returned as NSF, Cross withdrew almost all of the funds he had deposited.
Cross gave some of these funds to his relatives and used the remainder to pay for personal expenses. Cross conducted this fraud scheme from April 14, 2011, through March 25, 2015.
At sentencing, Cross asked the court to impose a lenient sentence, due to his advanced age and medical conditions. The court indicated that other factors warranted a sentence of significant prison time. Noting that Cross had 16 prior convictions, many of which were for similar conduct, the court was "not confident he can be deterred" from future criminal conduct. The court observed that Cross is "a con artist, plain and simple" who "supports himself by ripping people off."
In addition to the 6 ½ year prison sentence, the court ordered Cross to serve a five year period of supervised release and pay restitution of $111,698.98 to two of the banks he defrauded. (Restitution was not ordered for the banks that obtained judgments against Cross and/or had recovered funds they were owed by other means).
In commenting on yesterday’s sentence, U.S. Attorney Weinhoeft stated: "Cross may have conned several banks, but he couldn’t game the federal justice system. These criminals will not avoid lengthy prison sentences by pointing to their age, medical issues, or other excuses to escape responsibility for their crimes. Our office will continue to seek significant prison time for financial criminals who rip off businesses and other individuals."
The investigation was conducted by agents from the Springfield Division, Fairview Heights Resident Agency, of the Federal Bureau of Investigation ("FBI"). The case was prosecuted by Assistant United States Attorney Scott A. Verseman.
Kettering Man Pleads Guilty to Producing Child PornographyRead the Press Release
DAYTON –Matthew Jones, 44, of Kettering, Ohio, pleaded guilty in U.S. District Court to two counts of producing child pornography.
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, Ohio Attorney General Mike DeWine, Greene County Prosecutor Stephen K. Haller, Montgomery County Prosecutor Mathias H. Heck, Jr., Kettering Police Chief Christopher N. Protsman, Xenia Police Chief Donald R. Person and members of the FBI’s Child Exploitation Task Force announced the plea entered into yesterday afternoon before U.S. District Judge Walter H. Rice.
According to court documents, in 2003 and in 2009, Jones sexually abused two, three-year-old girls and created hundreds of images of the abuse.
Jones also used computer file sharing programs to receive, possess and view images and videos of the sexual abuse of toddlers and young children.
Jones was indicted by a federal grand jury in January 2018.
Jones’ plea in federal court was the first part of a global resolution of charges involving the federal court, the Greene County Common Pleas Court and the Montgomery County Common Pleas Court. The global plea means Jones also accepts responsibility for one count of rape of a person under age 13 in Greene County and the same charge in Montgomery County, as well as two counts of sexual battery and one count of gross sexual imposition in Montgomery County.
As part of this global resolution, the Greene County Prosecutor’s Office will recommend Jones receive 15 years up to life in prison for the Greene County offense. The Montgomery County Prosecutor’s Office will recommend Jones receive 20 years up to life in prison for the Montgomery County offenses. Also as part of the resolution, Jones will serve his sentences concurrently with each other.
Each federal count of producing child pornography is punishable by 15 to 30 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI, Ohio Bureau of Criminal Investigation (BCI) and Kettering and Xenia police departments, as well as Assistant United States Attorneys Amy M. Smith and Dominick S. Gerace, who are prosecuting the case.
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Juneau Couple Sentenced for Roles in Drug Trafficking ConspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that a Juneau couple has been sentenced to federal prison for their roles in a drug trafficking conspiracy to distribute drugs in Juneau, Alaska.
Tiffany Spaulding, 35, of Juneau, was sentenced yesterday by Chief U.S. District Judge Timothy M. Burgess, to serve five years in prison, followed by five years of supervised release, after pleading guilty to one count of drug conspiracy. Her co-defendant, Christian Peters, 46, of Juneau, was previously sentenced to serve 30 months in prison, followed by five years of supervised release, on the same charge.
According to court documents, a federal investigation was launched after a suspicious package was identified on Aug. 6, 2017, that originated from “Melly Sanchez” in California, to be delivered to “Rosetta Stone” in Juneau, Alaska. A search warrant was obtained and executed on the package, and located inside was 198.8 grams of methamphetamine, and a quantity of 50 oxycodone pills. After U.S. Postal Inspectors conducted a controlled delivery of the package on Aug. 9, 2017, Spaulding accepted the package and brought it to a residence she shared with Peters, who arrived a short time later. Upon Peters’ arrival, the package was opened knowing that it contained methamphetamine intended for further distribution in Juneau. The investigation revealed that Spaulding and Peters had previously agreed with others to receive a package of methamphetamine at their residence, and to deliver methamphetamine to a co-conspirator.
The U.S. Postal Inspection Service (USPIS), the Federal Bureau of Investigation (FBI), the Alaska State Troopers (AST), and the Juneau Police Department conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jack S. Schmidt.
Judge Sentences Johnstown Drug Dealer to 8 Years in Prison for Distributing Heroin Near a PlaygroundRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., has been sentenced in federal court to 96 months in prison and six years’ supervised release on his conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Charles A. Meyer, 38.
According to information presented to the court, on Oct. 20, 2015, within 1,000 feet of a playground, and on Dec. 22, 2015, and Jan. 22, 2016, Meyer distributed a quantity of heroin on each of those dates. Also on Jan. 22, 2016, Meyer possessed with the intent to distribute a quantity of heroin.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation that led to the successful prosecution of Meyer.
Johnstown Woman to Serve 7 Years in Prison for Distributing Cocaine, Allowing Her Apartment to be Used to Distribute DrugsRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., has been sentenced in federal court to 84 months in prison and three years’ supervised release on her conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Patricia Ann Hawes, 55.
According to information presented to the court, on May 11, 2016, Hawes distributed a quantity of cocaine. Likewise, between April 22, 2016 and June 7, 2016, Hawes maintained her apartment on Highland Avenue for the purpose of distributing and using heroin and cocaine.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation that led to the successful prosecution of Hawes.
Jackson Men Sentenced to Prison for their Roles in Methamphetamine ConspiracyRead the Press Release
Jackson, Miss. – Vincent Taylor McGee, 30, and Jose Pacheco, 41, both of Jackson, were sentenced by U.S. District Judge William H. Barbour, Jr. today for their roles in a methamphetamine trafficking conspiracy, announced U.S. Attorney Mike Hurst and DEA Assistant Special Agent in Charge Derryle Smith. Both defendants pled guilty before Judge Barbour on June 11, 2018.
McGee was sentenced to 120 months in federal prison, followed by 5 years of supervised release, for conspiring to possess with the intent to distribute 500 grams or more of a detectable amount of methamphetamine. In November 2015, McGee picked up 1 kilogram of a detectable amount of methamphetamine from a Mexican source of supply in Atlanta and delivered it to a co-conspirator in Jackson.
Pacheco was sentenced to 39 months in federal prison, followed by 2 years of supervised release, for conspiring to possess with the intent to distribute 500 grams or more of a detectable amount of methamphetamine. Pacheco assisted co-conspirators in arranging the purchase and delivery of 1 kilogram of methamphetamine from a source of supply in Mexico.
The case is the result of an extensive investigation, dubbed "Rock Bottom", which began as an operation targeting illegal narcotics distribution in central Mississippi that involved the distribution of cocaine, crack and methamphetamine.
The case was investigated by the Drug Enforcement Administration, the Mississippi Bureau of Narcotics, and the Bureau of Alcohol Tobacco Firearms and Explosives, with assistance from the Hinds County Sheriff’s Office, Ridgeland Police Department, Jackson Police Department, U.S. Marshals Service, Federal Bureau of Investigation, Mississippi Highway Patrol, Madison County Sheriff’s Office, Brandon Police Department, Rankin County Sheriff’s Office, Mississippi Department of Corrections, Pearl Police Department, Flowood Police Department, Bureau of Customs and Border Patrol, and the DEA Houston Field Division. It is being prosecuted by Assistant United States Attorney Chris Wansley.
Jackson Man Sentenced to Almost Three Years in Prison under Project EJECT for Illegally Possessing FirearmRead the Press Release
Jackson, Miss. – Michael Handford, 30, of Jackson, was sentenced today by Senior U.S. District Judge William H. Barbour III, to 35 months in prison, followed by 3 years of supervised release, for illegally possessing a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Handford was also ordered to pay a $1,500 fine.
On October 24, 2017, members of the Jackson Police Department stopped the car in which Handford was a passenger for a traffic violation. Officers saw Handford attempting to hide a handgun under his seat as they approached the car. A records check revealed that Handford was a convicted felon and therefore could not legally possess firearms. Handford pled guilty before Judge Barbour on August 23, 2018, to being a felon in possession of a firearm.
The Jackson Police Department and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It was prosecuted by Assistant United States Attorney Patrick Lemon.
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 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.
Illegal Alien Sentenced to Federal Prison for Sexual Exploitation of a Minor and Possession of Child PornographyRead the Press Release
United States Attorney Brandon J. Fremin announced that, U.S. District Judge Brian A. Jackson sentenced VICTOR ZELAYA-FUNEZ, age 38, a Honduran national residing in Zachary, Louisiana, to 185 months in federal prison following his convictions for sexual exploitation of a minor and possession of child pornography. The Court further sentenced ZELAYA-FUNEZ to 5 years of supervised release following his term of imprisonment. The Court also ordered that the electronic devices used to facilitate his crimes be forfeited.
Following a three-day trial in June of this year, a jury unanimously found ZELAYA-FUNEZ guilty of sexual exploitation of a minor and possession of child pornography. The evidence at trial demonstrated that ZELAYA-FUNEZ possessed sexually explicit photos of the victim, and attempted to coerce the victim into creating additional sexually explicit videos and sending them to him. In private messages he sent to the victim, ZELAYA-FUNEZ threatened to tell the victim’s parents about sexually explicit images of her which he possessed if she did not comply with his demands for additional sexually explicit material. In other private messages, the defendant told the victim he cared for her and promised to provide her with various things of value in exchange for additional sexually explicit material.
United States Attorney Fremin stated, “This prosecution and sentence should send a strong message that we will go to great lengths to protect our communities from child predators and those who attempt to exploit children. I am very proud of the hard work and collaboration by our partners at the Department of Homeland Security, the East Baton Rouge Sheriff’s Office and the East Baton Rouge District Attorney’s Office.”
This case is part of Project Safe Childhood, a nationwide initiative by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This investigation was conducted by the United States Department of Homeland Security, Homeland Security Investigations and Enforcement Removal Operations, and the East Baton Rouge Parish Sheriff’s Office, with assistance from the East Baton Rouge Parish District Attorney’s Office. The matter was prosecuted by Assistant United States Attorney Rene I. Salomon, who serves as the office’s Chief of the Criminal Division and former Assistant United States Attorney Ryan Rezaei.
Hudson County, New Jersey, Man Charged with Using Fake Passports to Conduct $1 Million Bank Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was arrested today and charged with a scheme that allegedly caused $1 million in losses by using fake passports to open bank accounts into which he and others deposited phony IRS refund checks, U.S. Attorney Craig Carpenito announced.
Mamadou Diallo, 42, of Jersey City, New Jersey, is charged by complaint with one count of conspiracy to commit bank fraud and two counts of passport fraud. He appeared today before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court. Diallo was released on $500,000 bond.
According to documents filed in this case and statements made in court:
From June 2012 through the present, Diallo and others conspired to fraudulently obtain money from four banks. They created false passports from various West African countries by affixing their own pictures onto passports bearing names other than their own. The conspirators then opened bank accounts using the doctored passports as photo identification. They deposited fraudulent checks bearing the routing number for the U.S. Treasury and then withdrew the funds. The losses associated with the conspiracy exceed $1 million.
The count of conspiracy to commit bank fraud carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. The passport fraud charges each carry a maximum potential penalty of 15 years in prison.
U.S. Attorney Carpenito credited inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn; special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael; the U.S. Department of Treasury-Office of Inspector General, under the direction of Inspector General Eric Thorson; and the New York State Department of Taxation and Finance.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office Organized Crime and Drug Enforcement Task Force / Narcotics Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Hortonville Man Receives 15 Year Sentence for Sexual Exploitation of MinorsRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on December 10, 2018, Jason W. Junek (age: 42) of Hortonville, Wisconsin, was sentenced by Chief District Judge William C. Griesbach to 15 years in federal prison for sexual exploitation of minor children in violation of Title 18 United States Code Section 2251(a). Upon his release, Junek will be on federal supervised release for 10 years and will have to register as a sex offender in the jurisdiction in which he resides. He was also ordered to pay a mandatory $5,000 special assessment pursuant to the Justice for Victims of Trafficking Act.
Junek used several popular social messaging applications to exchange texts, instant messages, and sexually explicit images with underage girls located across the United States and in several foreign countries. Junek created fictitious accounts to portray himself as a high school student utilizing the names “Jordan Fuerst” and “Josh Gibson.” Junek convinced the underage girls that he was their “boyfriend” and manipulated them into sending sexually explicit digital images and videos.
In pronouncing sentence, Chief Judge Griesbach noted the “horrible” nature of Junek’s crimes stating he “deprived children of their innocence.” The judge proclaimed the strong need to deter Junek and others from engaging in sexual communications with minors via the internet and that Junek’s actions called for substantial punishment.
The case was investigated by the Outagamie County Sheriff’s Office and the Wisconsin Internet Crimes Against Children (ICAC) Task Force. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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For further information contact:
Public Information Officer Dean Puschnig, (414) 297-1700
Honduran Congressman Pleads Guilty to Conspiring to Import Cocaine into the United States and Possessing Machineguns and Destructive DevicesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that FREDY RENAN NAJERA MONTOYA pled guilty yesterday in Manhattan federal court to charges that he conspired to import cocaine into the United States and possessed machineguns and destructive devices during the course of that conspiracy. NAJERA, who arrived in the United States on March 14, 2018, pled guilty before U.S. District Judge Paul G. Gardephe. NAJERA served in the National Congress of Honduras from 2006 until he arrived in the United States for prosecution. NAJERA pled guilty to charges carrying a mandatory minimum sentence of 40 years in prison. Sentencing is scheduled for April 19, 2019.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he has now admitted in a United States courthouse, Fredy Renan Najera Montoya used his power and influence as a Honduran congressman to facilitate the transporting of massive amounts of cocaine from Colombia through Honduras, and ultimately to the streets of the U.S. He further admitted that he and his hired security teams used military-grade weapons, including machineguns, to protect the drug smuggling enterprise. Now, Najera awaits sentencing for the serious crimes to which he has pled.”
According to the Superseding Indictment, other court filings, and statements made during court proceedings:
From at least in or about 2008, up to and including in or about 2015, NAJERA abused his position as a Honduran congressman to lead large-scale and violent drug-trafficking activities in the same part of Honduras that he represented in his government position. NAJERA helped distribute more than 30 metric tons of cocaine, which NAJERA and his co-conspirators received in Honduras through a variety of means and ultimately imported into the United States. As part of these activities, NAJERA used, and employed security teams who used, military-grade weapons, including machineguns and rocket-propelled grenade launchers.
Between approximately 2008 and 2015, NAJERA constructed, maintained, and staffed clandestine airstrips in Olancho that were used to receive multi-hundred-kilogram shipments of cocaine sent from Venezuela to Honduras. NAJERA facilitated the receipt of cocaine-laden planes and helicopters at his airstrips, and coordinated the transportation of the cocaine westward in Honduras so that it could be imported into the United States. NAJERA employed heavily armed security personnel who participated in all aspects of the receipt and transportation of these shipments. NAJERA also cultivated criminal relationships with members of the Honduran National Police and the Honduran military in order to support his drug-trafficking activities by obtaining sensitive law enforcement information used by traffickers to avoid arrests and to plan transportation routes for U.S.-bound cocaine.
In 2009, NAJERA worked with narcotics trafficker Sergio Neftalí Mejía Duarte and Leonel Rivera Maradiaga, one the leaders of the violent Cachiros drug-trafficking organization, to hire members of the Honduran National Police to assassinate General Julian Arístides González. Around that time, General Arístides González began investigating NAJERA and other drug traffickers in Honduras following a cocaine plane shipment to Olancho that drew law enforcement attention. In retaliation, Mejía Duarte, on behalf of NAJERA, contacted other drug traffickers, including Leonel Rivera Maradiaga, and requested that they assist in killing General Arístides González in order to stop the investigation and other similar investigations. Leonel Rivera Maradiaga, in turn, recruited members of the Honduran National Police to carry out the murder.
Shortly after the murder, NAJERA and Mejía Duarte met with Leonel Rivera Maradiaga. During that meeting, NAJERA told Leonel Rivera Maradiaga, in substance, that Leonel Rivera Maradiaga had done a good job killing General Arístides González. Mejía Duarte also congratulated Leonel Rivera Maradiaga for arranging the murder. NAJERA and Mejía Duarte then presented Leonel Rivera Maradiaga with the money to pay the assassins, in the form of approximately $300,000 in cash that they had laid out on a table nearby.
In 2012, NAJERA also introduced members of the Sinaloa Cartel to Honduran officials who provided nearly unfettered access to a major commercial shipping hub in Puerto Cortés, Honduras. In connection with these efforts, NAJERA accepted at least one cash payment and helped broker additional bribes paid to Fabio Lobo, the son of the former Honduran President, and others. The Sinaloa Cartel relied on NAJERA’s connections to transport approximately 10 tons of cocaine through Puerto Cortés.
In 2013 and 2014, NAJERA was part of a group of current and former Honduran congressmen who worked with other drug traffickers in an effort to obtain political support and protection from other high-ranking Honduran officials. One of the group’s objectives was to install a Cachiros associate as the leader of the Honduran Congress to promote trafficker-friendly policies, including with respect to extradition.
Some of NAJERA’s co-conspirators have already been sentenced. In May 2018, Mejía Duarte was sentenced in the Southern District of Florida to life in prison for conspiring to import cocaine into the United States. In September 2017, Lobo was sentenced by U.S. District Judge Lorna G. Schofield to 24 years in prison for conspiring to import cocaine into the United States.
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NAJERA, 41, pled guilty to one count of conspiring to import cocaine into the United States, and to one count of possessing machineguns and destructive devices during the course of that conspiracy. Count One carries a maximum term of life in prison and a mandatory minimum term of ten years in prison. Count Two carries a maximum term of life in prison and a mandatory minimum of 30 years in prison, which must be served consecutive to any other term of imprisonment. The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of NAJERA will be determined by Judge Gardephe.
Mr. Berman praised the outstanding efforts of the Bilateral Investigations Unit of the Special Operations Division of the DEA, New York Strike Force, and Tegucigalpa Country Office.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III and Matthew J. Laroche are in charge of the prosecution.
Heroin Trafficker Sentenced to 15 Years in PrisonRead the Press Release
NORFOLK, Va. – A Suffolk man was sentenced today to 15 years in prison for the distribution of heroin.
“Drug traffickers in possession of firearms pose a significant threat to our communities,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Investigating and prosecuting these cases remains a top priority in the Eastern District. We would not have been able to achieve this result without the cooperation of our local and federal law enforcement partners. My thanks to the Suffolk Police Department and DEA for their outstanding work on this case.”
According to court documents, Henry Scott, 43, sold 50 grams of heroin several times to an informant working with the Suffolk Police Department and the DEA. Law enforcement officials capped the investigation by executing a search warrant at Scott’s residence where they found an additional 27 grams of heroin along with an AR-15 style firearm with a 60-round drum magazine.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department reinvigorated PSN in 2017 as part of a 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney William D. Muhr prosecuted 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. 2:18-cr-54.
Hartford Man Pleads Guilty to Illegal Gun PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALVIN CRAWFORD, also known as “Nardy,” 34, of Hartford, pleaded guilty today before U.S. District Judge Janet C. Hall in New Haven to one count of possession of firearm by a convicted felon.
According to court documents and statements made in court, on April 2, 2018, Crawford, holding a yellow plastic bag, exited a car and ran from Hartford Police in the area of Rockville Street in Hartford. Crawford ignored verbal commands to stop running, threw the yellow bag over the fence, scaled the fence, picked up the bag and continued to run. Officers apprehended Crawford on Westland Street shortly after he had dropped the bag. A search of the bag revealed a Taurus .38 Special revolver and five rounds of ammunition.
Crawford’s criminal history includes state felony convictions for criminal possession of a firearm, carrying a pistol without a permit, violation of a protective order, and assault in the second degree. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Crawford has been detained since his arrest.
Judge Hall scheduled sentencing for March 7, 2019, at which time Crawford faces a maximum term of imprisonment of 10 years.
This matter is being investigated by the Hartford Police Department and the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Guatemalan Woman Sentenced for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Erla Maribel Ambrocio Ixlaj, age 30, and a citizen of Guatemala, was sentenced today to time served (114 days in jail), for illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
Ambrocio Ixlaj has been previously removed from the United States to Guatemala three times, the most recent removal taking place on August 5, 2014. On August 19, 2018, she was encountered and arrested by an ICE Officer in Walton, Delaware County, New York. A fingerprint check of Ambrocio Ixlaj resulted in the discovery of the prior removals. Ambrocio Ixlaj admitted that she returned to the United States without permission following the August 5, 2014 removal. Ambrocio Ixlaj has never had lawful authority to enter or reside in the United States.
Following her sentencing, Ambrocio Ixlaj was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Grayson County Man Pleads Guilty to Production, Distribution and Possession of Child PornRead the Press Release
OWENSBORO, Ky. – A Millwood, Kentucky, man, has pleaded guilty before United States District Judge Joseph H. McKinley on Monday, to multiple counts of production and distribution of child pornography, and possession of child pornography, announced United States Attorney Russell M. Coleman.
James D. Armes, 37, of Grayson County, Kentucky was indicted on five counts of production of child pornography, two counts of distribution of child pornography, and one count of possession of child pornography on May 9, 2018. On Monday, Armes admitted before the Court his guilt on all counts.
According to a factual basis of the charges before the Court, on or about December 2, 2017, Armes’s wife, looked at his cell phone and observed pictures of an eight month old relative with Ames in sexual situations.
On January 2, 2018, the Federal Bureau of Investigation obtained a federal search warrant to search the cell phone for child pornography. Several images and videos of child pornography were located on the phone including the images described by Armes’ wife. The review of his cell phone revealed eight videos and seven images of child pornography, involving two victims, that Armes produced.
Because of Armes prior rape conviction, he faces a mandatory minimum sentence of 25 years imprisonment and not more than 350 years, a fine of $2,000,000, and supervised release of not less than 5 years and not more than life.
This case is prosecuted by Assistant United States Attorney Spencer McKiness. The case was investigated by the Federal Bureau of Investigation and the Grayson County Sheriff’s Department.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
Government Intervenes in False Claims Act Lawsuit Against Sutter Health and Palo Alto Medical Foundation for Mischarging the Medicare Advantage ProgramRead the Press Release
The United States has intervened in a complaint against Sutter Health LLC, a California-based healthcare services provider, and an affiliated entity, Palo Alto Medical Foundation, (collectively “Sutter”) that alleges that Sutter violated the False Claims Act by submitting inaccurate information about the health status of beneficiaries enrolled in Medicare Advantage Plans, the Justice Department announced today. Sutter Health is headquartered in Sacramento, California.
“Federal healthcare programs rely on the accuracy of information submitted by healthcare providers to ensure that patients are afforded the appropriate level of care and that managed care plans receive appropriate compensation,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Today’s action sends a clear message that we will seek to hold healthcare providers responsible if they fail to ensure that the information they submit is truthful.”
Under Medicare Advantage, also known as the Medicare Part C program, Medicare beneficiaries have the option of enrolling in managed healthcare insurance plans called Medicare Advantage Plans (MA Plans) that are owned and operated by private Medicare Advantage Organizations (MAOs). MA Plans are paid a capitated, or per-person, amount to provide Medicare-covered benefits to beneficiaries who enroll in one of their plans. The Centers for Medicare and Medicaid Services (CMS), which oversees the Medicare program, adjusts the payments to MA Plans based on demographic information and the health status of each plan beneficiary. The adjustments are commonly referred to as “risk scores.” In general, a beneficiary with more severe diagnoses will have a higher risk score, and CMS will make a larger risk-adjusted payment to the MA Plan for that beneficiary.
Sutter Health, a non-profit public benefit corporation that provides healthcare services through affiliated entities, including hospitals and medical foundations, contracted with certain MAOs to provide healthcare services to California beneficiaries enrolled in the MAOs’ MA Plans. In exchange, Sutter received a share of the payments that the MAOs received from CMS for the beneficiaries under Sutter’s care.
Sutter submitted diagnoses to the MAOs for the MA Plan enrollees that they treated. The MAOs, in turn, submitted the diagnosis codes to CMS from the beneficiaries’ medical encounters, such as office visits and hospital stays, and these diagnosis codes were used by CMS to calculate a risk score for each beneficiary.
The lawsuit alleges that Sutter Health and Palo Alto Medical Foundation knowingly submitted unsupported diagnosis codes for certain patient encounters for beneficiaries under their care. These unsupported diagnosis scores allegedly inflated the risk scores of these beneficiaries, resulting in inflated payments to Sutter. The lawsuit further alleges that once the Sutter entities became aware of these unsupported diagnosis codes, they failed to take sufficient corrective action to identify and delete additional potentially unsupported diagnosis codes.
“This intervention illustrates our commitment to protecting the integrity of the Medicare Advantage program,” said U.S. Attorney Alex G. Tse for the Northern District of California. “The share of Medicare beneficiaries enrolled in Medicare Advantage has steadily grown over the past decade, with 19 million beneficiaries enrolled in 2017. It is critically important that the data submitted to the Medicare Advantage program is truthful, because the government relies on this information to set payment levels. We will continue to guard government health programs from companies that improperly maximize their bottom line at taxpayer expense.”
The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it has done in this case. The whistleblower, Kathleen Ormsby, was a former employee of Palo Alto Medical Foundation.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the United States Attorney’s Office for the Northern District of California, and HHS-OIG.
The case is captioned United States ex rel. Ormsby v. Sutter Health, et al., Case No. 15-CV-01062-JD (N.D. Cal.). The claims in which the United States has intervened are allegations only, and there has been no determination of liability.
Government Intervenes in False Claims Act Lawsuit Against Sutter Health and Palo Alto Medical Foundation for Mischarging the Medicare Advantage ProgramRead the Press Release
SAN FRANCISCO – The United States has intervened in a complaint against Sutter Health LLC, a California-based healthcare services provider, and an affiliated entity, Palo Alto Medical Foundation, (collectively “Sutter”) that alleges that Sutter violated the False Claims Act by submitting inaccurate information about the health status of beneficiaries enrolled in Medicare Advantage Plans, the Justice Department announced today. Sutter Health is headquartered in Sacramento, California.
“This intervention illustrates our commitment to protecting the integrity of the Medicare Advantage program,” said U.S. Attorney Alex G. Tse. “The share of Medicare beneficiaries enrolled in Medicare Advantage has steadily grown over the past decade, with 19 million beneficiaries enrolled in 2017. It is critically important that the data submitted to the Medicare Advantage program is truthful, because the government relies on this information to set payment levels. We will continue to guard government health programs from companies that improperly maximize their bottom line at taxpayer expense.”
“Federal healthcare programs rely on the accuracy of information submitted by healthcare providers to ensure that patients are afforded the appropriate level of care and that managed care plans receive appropriate compensation,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Today’s action sends a clear message that we will seek to hold healthcare providers responsible if they fail to ensure that the information they submit is truthful.”
Under Medicare Advantage, also known as the Medicare Part C program, Medicare beneficiaries have the option of enrolling in managed healthcare insurance plans called Medicare Advantage Plans (MA Plans) that are owned and operated by private Medicare Advantage Organizations (MAOs). MA Plans are paid a capitated, or per-person, amount to provide Medicare-covered benefits to beneficiaries who enroll in one of their plans. The Centers for Medicare and Medicaid Services (CMS), which oversees the Medicare program, adjusts the payments to MA Plans based on demographic information and the health status of each plan beneficiary. The adjustments are commonly referred to as “risk scores.” In general, a beneficiary with more severe diagnoses will have a higher risk score, and CMS will make a larger risk-adjusted payment to the MA Plan for that beneficiary.
Sutter Health, a non-profit public benefit corporation that provides healthcare services through affiliated entities, including hospitals and medical foundations, contracted with certain MAOs to provide healthcare services to California beneficiaries enrolled in the MAOs’ MA Plans. In exchange, Sutter received a share of the payments that the MAOs received from CMS for the beneficiaries under Sutter’s care.
Sutter submitted diagnoses to the MAOs for the MA Plan enrollees that they treated. The MAOs, in turn, submitted the diagnosis codes to CMS from the beneficiaries’ medical encounters, such as office visits and hospital stays, and these diagnosis codes were used by CMS to calculate a risk score for each beneficiary.
The lawsuit alleges that Sutter Health and Palo Alto Medical Foundation knowingly submitted unsupported diagnosis codes for certain patient encounters for beneficiaries under their care. These unsupported diagnosis scores allegedly inflated the risk scores of these beneficiaries, resulting in inflated payments to Sutter. The lawsuit further alleges that once the Sutter entities became aware of these unsupported diagnosis codes, they failed to take sufficient corrective action to identify and delete additional potentially unsupported diagnosis codes.
The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it has done in this case. The whistleblower, Kathleen Ormsby, was a former employee of Palo Alto Medical Foundation.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the United States Attorney’s Office for the Northern District of California, and HHS-OIG.
The claims in which the United States has intervened are allegations only, and there has been no determination of liability.
Glenwood Man Sentenced for Receipt of Child PornographyRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on December 6, 2018, Steven Horton, age 40, of Glenwood, was sentenced to 84 months in prison to be followed by 10 years of supervised release by United States District Court Judge Stephanie M. Rose. The defendant pleaded guilty to accessing child pornography on July 24, 2018.
Operation Pacifier was an investigation conducted by the FBI into Playpen, a website on TOR hosted as hidden service. Playpen operated as a message board-type website where registered users would distribute and share images and videos of child pornography. Horton registered with Playpen on October 27, 2014, and was actively logged into Playpen for over 21 hours between the registration date and February 28, 2015.
This case was investigated by Iowa Department of Criminal Investigations, Federal Bureau of Investigation, Pottawattamie County Sheriff Department, and Glenwood Police Department.
The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.Gardiner Woman Sentenced to 70 Months for Heroin, Crack and Fentanyl ConspiracyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Nicole Truman, 36, of Gardiner, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 70 months in prison and three years of supervised release for conspiring to distribute heroin, cocaine base, commonly known as “crack,” and fentanyl. She pled guilty on May 24, 2018.
According to court records, between June 2015 and March 2017, Truman conspired with others to acquire heroin and crack in Rochester, New York and transport it to Central Maine for distribution. The defendant assisted the head of the conspiracy, Darrell “Coast” Newton, and other dealers he sent from Rochester in distributing the narcotics in Central Maine. She provided transportation, facilitated drug deals, introduced Rochester conspirators to area distributors, assisted other conspirators in finding residences from which to sell drugs, and was a money courier.
Following her indictment in May 2017, she fled to Missouri where she was arrested several months later and returned to Maine.
The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta Police Department. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Fort Smith, Arkansas Man Sentenced to 186 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Nowlin Lee Waugh, Jr, age 35, of Fort Smith, Arkansas, was sentenced to 186 months’ imprisonment and 8 years’ supervised release for Possession With Intent To Distribute Methamphetamine. Mr. Waugh’s jury trial began on August 14, 2018 and concluded on August 15, 2018 with the guilty verdict. Sentencing occurred following the completion of a presentence report.
Evidence at trial proved that on March 23, 2018, Oklahoma Highway Patrol troopers attempted to stop a vehicle driven by the defendant on Interstate 40 in Okmulgee County. During the pursuit that ensued, the troopers could see the defendant moving erratically inside the vehicle. When the vehicle stopped the troopers saw bags that contained methamphetamine, a trash can that had methamphetamine and bleach in it, and an open bottle of bleach. There were also several open plastic baggies that had methamphetamine residue inside. Troopers recovered over 50 grams of methamphetamine that the defendant had not been able to destroy with bleach. The Drug Enforcement Agency assisted with the investigation.
“Despite the defendant’s best efforts to destroy the evidence of his crime, Oklahoma Highway Patrol troopers were able to process the crime scene and collect the evidence needed to prove to the jury that Waugh intended to distribute methamphetamine. The car stop and resulting investigation prevented thousands of dosage units from being distributed into Oklahoma communities, and will allow Waugh to be held accountable for his unlawful acts,” said United States Attorney Brian J. Kuester. “The hard work by the OHP Troopers, DEA Agents, and members of this office led to a just result for the people and communities in Eastern Oklahoma.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Edward Snow represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Former State University President, Alain Kaloyeros, and Three Corporate Executives Sentenced to Prison for Fraud in Connection with Buffalo Billion Bid-RiggingRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that ALAIN KALOYEROS, the former President of the State University of New York Polytechnic Institute; STEVEN AIELLO, a founder and partner of COR Development (“COR”), a real estate development company based in the Syracuse, New York, area; JOSEPH GERARDI, also a founder and partner of COR; and LOUIS CIMINELLI, the former Chairman and CEO of LPCiminelli, a construction company based in Buffalo, New York, were sentenced to prison for fraud in connection with the rigging of bids for hundreds of millions of dollars of State-funded contracts under New York State’s “Buffalo Billion” economic development program. KALOYEROS was sentenced today by U.S. District Judge Valerie E. Caproni, and AIELLO, GERARDI, and CIMINELLI were all sentenced last week by Judge Caproni. The defendants received the following sentences:
ALAIN KALOYEROS
42 months in prison
STEVEN AIELLO
36 months in prison
JOSEPH GERARDI
30 months in prison
LOUIS CIMINELLI
28 months in prison
On July 12, 2018, KALOYEROS, AIELLO, GERARDI, and CIMINELLI were each convicted of wire fraud and wire fraud conspiracy, following a three-week trial before Judge Caproni, who imposed sentence on each of the defendants. GERARDI was also convicted of making false statements to federal officers. In addition to the bid-rigging offense, AIELLO’s sentence also reflected his conviction for paying bribes to Joseph Percoco, a former executive aide and campaign manager to the Governor of New York.
U.S. Attorney Geoffrey Berman said: “The Buffalo Billion program is an economic initiative intended to stimulate economic growth, and ultimately benefit the people of New York. But a well-connected group of Albany insiders exploited the project to benefit themselves instead. By manipulating the application process for awarding bids, these men effectively corrupted the bidding process to ensure that companies with which they had financial interests would be awarded the lucrative work. Public corruption – especially at such a disconcertingly high level in Albany – contributes to the frustration and eroding faith of the people of New York in the integrity of their government. We will continue to do everything within our power to ensure that funds intended for the greater good of New Yorkers will be used for just that – and not to line the pockets of influence-peddlers with high-level access.”
Judge Caproni said during AIELLO’s sentencing: “I want this sentence to be heard around the state. . . . This prosecution . . . should serve as a warning to others who interact with the government everywhere . . . when competing for projects from an entity like Fort Schuyler, you are playing with state money. That means you have to be purer than Caesar’s wife, because the money you were trying to get comes from the hardworking men and women of New York State. If you can’t live with that standard, then stick with private sector work, because if you remain at the public trough and you engage in corrupt means to get to public money, even if you did a good job for the public, the Court will show you no mercy. . . .”
According to the evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:
KALOYEROS, AIELLO, GERARDI, and CIMINELLI conspired to deceive Fort Schuyler Management Corporation (“Fort Schuyler”), a State-funded entity charged with awarding State contracts worth hundreds of millions of dollars, by secretly rigging the bidding process so that the contracts offered in connection with the Buffalo Billion program would be awarded to COR and LPCiminelli. KALOYEROS, who oversaw the application process for many of the State grants awarded under the Buffalo Billion and similar programs, retained Todd Howe to lobby the New York Governor’s office in order to maintain and expand KALOYEROS’s position. KALOYEROS and Howe, who also worked for both COR and LPCiminelli, then conspired with AIELLO, GERARDI, and CIMINELLI to defraud Fort Schuyler by secretly tailoring the required qualifications for development deals in Syracuse and Buffalo so that COR and LPCiminelli would be awarded significant projects without any meaningful competition. All the while, the defendants falsely represented to Fort Schuyler that the bidding process was fair, open, and competitive.
More specifically, in or about October 2013, Fort Schuyler issued requests for proposals (“RFPs”) to solicit bids from interested and qualified developers for the Syracuse and Buffalo projects. KALOYEROS oversaw the drafting of the RFPs and, unbeknownst to Fort Schuyler, KALOYEROS and Howe secretly solicited from AIELLO, GERARDI, CIMINELLI, and others at LPCiminelli: (1) qualifications of COR and LPCiminelli to put in the RFPs, so that the RFPs would request qualifications specifically held by those companies, and (2) feedback on the RFPs, before they were released publicly. For example, the Syracuse RFP requested the use of specific project management software used by COR. After Howe emailed GERARDI and AIELLO a draft of the Syracuse RFP approximately two weeks before its public issuance, GERARDI sent back to Howe and AIELLO a handwritten mark-up of the draft RFP, on which GERARDI had, among other things, underlined the software names and wrote “too telegraphed?? I would leave out these specific programs.” For its part, the Buffalo RFP, as initially issued, required 50 years of experience by a local developer – a qualification touted by LPCiminelli in promotional materials provided to KALOYEROS.
Additionally, after the Government’s investigation became public, both KALOYEROS and CIMINELLI deleted incriminating evidence from their personal email accounts. GERARDI voluntarily met with government agents and lied about his criminal conduct.
In addition to his convictions for fraud in connection with the Buffalo Billion program, AIELLO was convicted in connection with a bribery conspiracy involving Percoco, who was also convicted and sentenced by Judge Caproni to 72 months in prison. Beginning in early 2014, Percoco was paid bribes totaling approximately $35,000 from COR. These bribe payments were orchestrated by AIELLO, who arranged them in exchange for Percoco’s official assistance for COR on an as-needed basis.
Specifically, Percoco agreed with AIELLO to, and did, take official action for the benefit of COR to (a) reverse an adverse decision by the Empire State Development Corporation, which is the State’s main economic development agency, that would have required COR to enter into a costly labor peace agreement in connection with a development project in Syracuse, (b) free up a backlog of more than $14 million in State funds that had already been awarded to COR but were delayed in payment, and (c) secure a substantial pay raise for AIELLO’s son, who worked in the Governor’s office. To disguise the nature and source of the bribe payments, COR’s bribes to Percoco were funneled through bank accounts and a shell company set up by Howe.
* * *
In addition to the prison term, KALOYEROS, 62, of Slingerlands, New York, was sentenced to 2 years of supervised release. Judge Caproni also ordered KALOYEROS to pay a fine of $100,000.
In addition to the prison terms, AIELLO, 60, of Fayetteville, New York, GERARDI, 59, of Fayetteville, New York, and CIMINELLI, 63, of Buffalo, New York, were each sentenced to two years of supervised release. Judge Caproni also ordered AIELLO, GERARDI, and CIMINELLI each to pay a fine of $500,000 and to forfeit ill-gotten gains.
Mr. Berman praised the outstanding work of the Buffalo Field Office of the Federal Bureau of Investigation and the New York Office of the Internal Revenue Service-Criminal Investigation, which jointly conducted this investigation with Special Agents from the U.S. Attorney’s Office.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Janis Echenberg, Robert Boone, David Zhou, and Matthew Podolsky are in charge of the prosecution.
Former Senior Employee at FDIC Convicted of Embezzling Confidential DocumentsRead the Press Release
Following six days of trial, a federal jury in Brooklyn returned a guilty verdict today against Allison Aytes on both counts of an indictment charging her with theft of government property in the possession of the Federal Deposit Insurance Corporation (FDIC). When sentenced by United States District Judge Sterling Johnson, Jr., Aytes faces up to 20 years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Jay N. Lerner, Inspector General, FDIC, announced the verdict.
“Aytes embezzled sensitive and confidential information about banks that was the property of the United States government shortly before she resigned from the FDIC to seek job opportunities at those very same banks,” stated United States Attorney Donoghue. “With today’s verdict, Aytes has been held accountable for abusing her position of trust for personal gain.”
“This case makes clear that those who compromise sensitive FDIC information will be held accountable for their actions,” stated FDIC Inspector General Lerner. “We are committed to investigating such breaches of public trust, and to protecting the integrity of confidential data maintained by the agency.”
At the time of her resignation in September 2015, Aytes was a senior employee in the FDIC’s Office of Complex Financial Institutions in New York. The Office was created after passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act to oversee and conduct, if necessary, an orderly bankruptcy of the world’s largest banks and financial institutions. Each of these banks and financial institutions is required to file resolution plans, referred to as “living wills,” with the FDIC. The plans contain confidential information about the bank, including its assets, business operations, data center locations, critical vendors, agreements with other banks and potential weaknesses or other deficiencies that pose risk during a time of financial crisis.
In August 2015, Aytes used her office computer to review listings for and apply for jobs with financial institutions that filed living wills with the FDIC. On August 27, 2015, one day after being contacted about a possible position at one of the banks, Aytes logged on to a secure FDIC database and printed living will information for that bank. On September 16, 2015, Aytes resigned her position at the FDIC. A review of FDIC Data Loss Prevention software revealed that on her last day of work, Aytes copied numerous electronic files from the FDIC network to external USB drives, including living wills for U.S. banks where Aytes had been seeking employment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney James P. McDonald is in charge of the prosecution.
The Defendant:
ALLISON AYTES
Age: 41
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-132 (SJ)
Former Owner of Chicago Medical Clinic Guilty of Selling Opioid Prescriptions to Patients Who Lacked Medical Need for the DrugsRead the Press Release
CHICAGO — The former owner of a Chicago medical clinic admitted in federal court today that he sold opioid prescriptions to patients whom he knew lacked a legitimate medical need for the drugs.
MOHAMMED SHARIFF, who owned Midtown Medical Center in Chicago’s Uptown neighborhood, conspired with a physician to sell oxycodone, hydrocodone, and other medications to patients whom they knew lacked a medical reason for taking the drugs, according to a plea agreement filed today in U.S. District Court in Chicago. At Shariff’s direction, the physician, DR. THEODORE GALVANI, wrote prescriptions for the powerful opioids without conducting an appropriate physical examination or performing any medical tests, the plea agreement states. Dr. Galvani often met with more than 70 patients per day, sometimes seeing them in groups of two or more at the same time, the plea agreement states. At Shariff’s direction, a “crew leader” often organized groups of people to see Dr. Galvani and obtain opioid prescriptions from him, the plea agreement states.
Shariff, 68, of Lincolnwood, pleaded guilty to one count of conspiracy to knowingly dispense controlled substances outside the usual course of professional practice and without a legitimate medical purpose. The charge carries a maximum prison sentence of 20 years and a maximum fine of $1 million. U.S. District Judge Harry D. Leinenweber set sentencing for March 19, 2019.
Dr. Galvani, of Spring Grove, previously pleaded guilty to drug conspiracy charges. He is awaiting sentencing.
Shariff’s guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; Jeffrey Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Health and Human Services Office of Inspector General. The government is represented by Assistant U.S. Attorneys Peter M. Flanagan and Andrew C. Erskine.
According to Shariff’s plea agreement, individuals paid $100 to $200 in cash to Shariff and Galvani in exchange for the improper prescriptions. For individuals insured by Medicare, Shariff and Dr. Galvani prescribed the opioids and then submitted or caused others to submit false claims to Medicare, seeking reimbursement for purported office visits with those individuals, the plea agreement states. From February 2012 to March 2013, Shariff and Dr. Galvani received a total of at least $584,188 through the improper prescription scheme, the plea agreement states. Shariff admitted that he personally kept at least $292,094 as his share of the proceeds. Shariff further admitted that, during the same period of time, he and Dr. Galvani together were responsible for prescribing more than two kilograms of oxycodone, more than 595,000 hydrocodone pills, and more than 190,000 alprazolam pills (commonly known as Xanax), to individuals whom they knew had no legitimate medical need for those drugs.
In addition to the improper prescriptions, Shariff admitted in his plea agreement that he attempted to carry out a separate fraud scheme involving a home health care company that he owned, Elgin-based Home Health Resource LLC. In a May 2016 meeting in Chicago, Shariff offered to pay an unidentified physician $500 each time the doctor certified a Medicare beneficiary as eligible for home health care and referred the patient to Shariff’s company, the plea agreement states. Unbeknownst to Shariff, the doctor was cooperating with law enforcement, and their conversation was surreptitiously recorded. During the meeting, Shariff claimed that he arranged for his home health company’s employees to conceal the fact that their clients were not truly eligible for home health services. Shariff told the cooperating physician that he instructed nurses at the company to “tell the patient you are homebound,” and that “when the doctor come, don’t say that you go out and drive and this and that. Don’t tell anybody you drive, don’t tell anybody you’re taking the bus, even going to the groceries. If anybody asks, ‘I stay home. I’m homebound.’”
Former Oil Company President Sentenced to 12 Years in Prison for Stock Manipulation SchemeRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of RYAN RANDALL GILBERTSON, 42, founder of Dakota Plains Holdings, Inc., to 144 months in federal prison, a $2 million fine, and over $15 million in restitution. GILBERTSON was sentenced today by Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota. A federal jury convicted GILBERTSON and co-defendant DOUGLAS VAUGHN HOSKINS, 50, of multiple counts of wire fraud, securities fraud, and conspiracy to commit securities fraud, on June 26, 2018, following an 11-day jury trial before Judge Schiltz.
HOSKINS is scheduled to be sentenced on December 21, 2018, by Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota.
As proven in court, in November 2008, GILBERTSON and his business partner founded Dakota Plains, Inc. (“Dakota Plains”), a privately held company based in Wayzata, Minnesota that owned and operated a transloading facility in New Town, North Dakota. From the outset, GILBERTSON and his partner concealed their involvement in the company by installing their fathers as the company’s executives and two-person board of directors. Rather than capitalize the company at the outset, GILBERTSON caused the company to issue $9 million in promissory notes to himself and other corporate insiders. The notes paid 12% annual interest and included a provision that paid GILBERTSON and the other noteholders a bonus payment based on the average trading price of Dakota Plains stock during the first 20 days of public trading. The bonus payment provision operated as an “embedded derivative” in which the value of the bonus payment would be based on the average price of Dakota Plains stock during the first 20 days of public trading.
GILBERTSON then caused the company to go public via a reverse merger with a company called Malibu Club Tan, which was a publicly traded shell company that operated a single defunct tanning salon in suburban Salt Lake City, Utah. GILBERTSON made it a secret condition of the reverse merger that DOUG HOSKINS, his friend and polo coach, be able to purchase the majority of the “float” of freely trading shares, which were the only shares that could trade publicly following the reverse merger. GILBERTSON then gave $30,000 to HOSKINS, who was deeply in debt and owed money to the IRS and other creditors, in order to purchase 50,000 shares of Dakota Plains stock at a price of $0.50 per share on March 23, 2012, the morning of the reverse merger. That same day, again at the direction of GILBERTSON, HOSKINS began selling his shares at the fraudulently inflated price of $12 per share.
On the first day of public trading, HOSKINS began selling his newly acquired shares for an inflated price of $12 per share at GILBERTSON’S direction, and continued to do so throughout the first 20 days of public trading following the reverse merger. At the same time, GILBERTSON directed a local stockbroker at a Minneapolis-based securities brokerage firm to purchase shares of Dakota Plains stock on behalf of both himself and his clients at inflated prices. GILBERTSON also instructed a Salt Lake City-based business consultant to manipulate the price of the stock by ensuring that none of the shell company shareholders sold their stock for less than the $12 per share price offered by his friend and polo coach, HOSKINS. Indeed, on April 4, 2012, GILBERTSON sent a text message to the consultant in Utah bragging that the shell company shareholders “would be participating on sales at 7 bucks [a share] not 12 were it not for my involvement.”
Throughout the 20-day period following the reverse merger, GILBERTSON, with the help of HOSKINS and others, manipulated the price of Dakota Plains stock to increase the average trading price to $11.30 per share. This inflated share price triggered a $32.8 million bonus payment to GILBERTSON and the other noteholders. When the cash-strapped company was unable to pay the bonus, GILBERTSON instructed its CEO to raise money for use in paying GILBERTSON’s fraudulently inflated bonus payment.
Ultimately, GILBERTSON made millions as a result of his stock manipulation scheme. HOSKINS made less money, but still pocketed more than $125,000 from his stock sales, much of which he used to purchase an Argentine polo pony.
In the wake of the fraud scheme, HOSKINS was interviewed by the Securities and Exchange Commission (SEC) about his involvement in these stock sales. HOSKINS repeatedly lied under oath during the deposition, covering up both his and GILBERTSON’S involvement in the stock manipulation scheme. Among other things, HOSKINS claimed that he did not discuss the stock trades with any other individuals. At trial, GILBERTSON falsely denied his role in the stock manipulation scheme, but conceded that he had arranged for HOSKINS to purchase Dakota Plains stock prior to the reverse merger and had provided HOSKINS with the money with which he purchased the stock.
“Mr. Gilbertson orchestrated an extraordinarily complex stock manipulation scheme in order to obtain millions of dollars from a publicly traded company. He executed his scheme over many years at the detriment of the company, which is now bankrupt, its shareholders and the trading public,” said United States Attorney Erica H. MacDonald. “He did not care about how his actions may impact others; he only cared about lining his own pockets. Despite the complexity of his scheme, and how much of a game he tried to play, he lost, thanks to the diligent and thorough work of investigators, prosecutors, a federal jury, and the Court.”
“Mr. Gilbertson created a complex and complicated scheme that was unraveled thanks to the diligence of highly trained agents who don't give up,” said Jill Sanborn, Special Agent in Charge of the Minneapolis Division of the FBI. “The heavy sentence imposed today on Mr. Gilbertson underscores that market rigging and self-dealing for one's own financial gain are nefarious activities that will be discovered and that those who engage in them will be dealt with accordingly."
“Today’s sentence sends a clear message regarding the critical role the U.S. Postal Inspection Service and its law enforcement partners play in protecting the investing public from these types of fraudulent schemes, “ said Acting Postal Inspector in Charge Lesley Allison. “We will continue to protect and ensure the nation’s mail stream is not used by criminals to prey upon our citizens.”
This case is the result of an investigation conducted by the FBI and the United States Postal Inspection Service.
This case was prosecuted by Assistant United States Attorneys Joseph H. Thompson, Kimberly A. Svendsen, and Melinda A. Williams.
The Criminal Docket Number for this case is: 17-cr-00066
Defendant Information:
RYAN RANDALL GILBERTSON, 42
Delano, Minn.
Convicted:
- Wire fraud, 14 counts
- Conspiracy to commit securities fraud, 1 count
- Securities fraud, 6 counts
Sentenced:
- 144 months imprisonment
- 2 years supervised release
- $2 million fine
- $15,135,360 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former Employee of Allegheny County Drug Laboratory Sentenced to Prison for Stealing Drug EvidenceRead the Press Release
PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, was sentenced in federal court for stealing federal drug evidence, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak sentenced Matthew Ieraci, 30, to 60 days of imprisonment following his guilty plea on July 25, 2018, to one count of theft concerning a program receiving federal funds.
In connection with his guilty plea, Ieraci admitted that from February 8, 2017, and continuing until February 27, 2017, he stole a total of approximately 52.45 grams of powder alprazolam, a Schedule IV controlled substance, from the Allegheny County Office of the Medical Examiner (ACOME), where he was employed as a laboratory scientist. Ieraci further admitted he stole the evidence from a larger quantity of alprazolam that the United States Postal Inspection Service had submitted to ACOME for chemical analysis in connection with an ongoing multi-jurisdiction, multi-agency federal drug-trafficking investigation. Ieraci was assigned to analyze the evidence on behalf of ACOME. The defendant also admitted that he had been trained in proper evidence-handling techniques and was aware of the consequences of evidence tampering, including the possibility that such evidence would not be admissible at trial.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government. The Federal Bureau of Investigation conducted the investigation of Ieraci.