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7 December 2018
Defendants sentenced for $3.5 million sweepstakes scam targeting the elderlyRead the Press Release
ATLANTA - Silvia Sanchez Valverde, Rodolfo Orozco Aguilar, Daniel Sibaja, Priscilla Sibaja, and Elpelice Figueroa Rosales have been sentenced for their roles in a sweepstakes scam that targeted elderly individuals located throughout the United States.
“These defendants targeted and bilked dozens of vulnerable elderly victims out of $3.5 million,” said U.S. Attorney Byung J. “BJay” Pak. “Lottery and sweepstakes scams are one of the most common consumer frauds, with the majority of financial losses being suffered by the elderly. Citizens always should be wary of those requesting upfront money for supposed lottery or sweepstakes winnings.”
“This case makes clear that transnational scammers who believe they can avoid accountability for their crimes by transferring ill-gotten proceeds outside the country are mistaken,” said Special Agent in Charge of ICE Homeland Security Investigations Atlanta Nick S. Annan. “An international border is no defense for those who defraud senior citizens, and HSI is committed to using its cross-border authority to investigate and hold such persons accountable. We’re appreciative of our partnership with the U.S. Attorney’s Office to successfully prosecute this case and will continue to work with our federal, state and local partners to identify and stop financial crimes targeting vulnerable populations.”
According to U.S. Attorney Pak, the charges and other information presented in court: From February 2016 through September 2017, dozens of victims - most of whom were elderly - were contacted by telephone and told that they had won a sweepstakes or lottery. However, the victims were told that they could receive their sweepstakes winnings only after paying various expenses, such as taxes and fees. The victims were then directed to pay the expenses to various companies controlled by the defendants, such as J.G. Services, RF Financial Services, and Master Builders. The victims then mailed payments via personal and cashier’s checks to addresses that were linked to mailboxes rented by the defendants. The defendants deposited the checks, totaling over $3.5 million, into their bank accounts and then transferred the majority of the funds to Costa Rican bank accounts.
U.S. District Judge Leigh Martin May sentenced the defendants as follows:
- Silvia Sanchez Valverde, 47, of Buford, Georgia was sentenced to five years in prison, to be followed by three years of supervised release. Sanchez Valverde was convicted of conspiracy to commit mail fraud on August 27, 2018, after she pleaded guilty.
- Rodolfo Orozco Aguilar, 44, of Costa Rica was sentenced to four years in prison, to be followed by one year of supervised release. Orozco Aguilar was convicted of conspiracy to commit mail fraud on August 23, 2018, after he pleaded guilty. He faces potential removal from the United States, as a result of his conviction.
- Daniel Sibaja, 28, of Buford, Georgia was sentenced to four years in prison, to be followed by three years of supervised release. Daniel Sibaja was convicted of conspiracy to commit mail fraud on August 27, 2018, after he pleaded guilty.
- Priscilla Sibaja, 21, of Buford, Georgia was sentenced to three years in prison, to be followed by three years of supervised release. Priscilla Sibaja was convicted of conspiracy to commit money laundering on August 30, 2018, after she pleaded guilty. She faces potential removal from the United States, as a result of her conviction.
- Elpelice Figueroa Rosales, 62, of Buford, Georgia was sentenced to two years in prison, to be followed by three year of supervised release. Figueroa Rosales was convicted of conspiracy to commit mail fraud on August 24, 2018, after she pleaded guilty. She faces potential removal from the United States, as a result of her conviction.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant U.S. Attorneys Kelly K. Connors and Cassandra J. Schansman prosecuted the case.
The Department of Justice Elder Justice Initiative promotes investigations and prosecutions of financial scams targeting the elderly. For more information regarding the Elder Justice Initiative, please visit www.justice.gov/elderjustice.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Dallas County Woman Receives Five Years Probation for Obtaining Opiods by FraudRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Misty Danielle Combs Bailey, a 35 year old resident of Selma, Alabama was sentenced to five years of probation after being convicted of Obtaining Controlled Substances by Fraud.
On August 21, 2018, according to a factual statement Bailey signed in connection with her guilty plea, over a seven day period in February 2018, Bailey forged, or caused to be forged, 10 prescriptions made out to her as patient of a Selma area dentist and obtained quantities of hydrocodone and oxycodone. Bailey had access to the prescriptions as a patient of the dentist. On February 8, 2018, the dentist reported that one of his prescription pads had been stolen from his office. He stated that he believed that Bailey stole the prescription pad from his secretary’s desk. All prescriptions were presented to pharmacies located in the Selma, Alabama area. Bailey obtained approximately 125 hydrocodone tablets and approximately 80 oxycodone tablet during her week long fraudulent scheme.
Officers of the Selma, Alabama Police Department investigated the case and brought it to the U. S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
D.C. Resident Pleads Guilty to Conspiracy to Defraud the IRSRead the Press Release
A Washington, D.C. resident pleaded guilty to conspiracy to defraud the United States and aggravated identity theft on December 4, 2018, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and Kelly R. Jackson, Special Agent in Charge of IRS-Criminal Investigation, Washington D.C. Field Office. The guilty plea arose from a scheme to file false tax returns in the names of unemployed individuals that fraudulently claimed refunds. Scutchings and her co-conspirators cashed or deposited more than $1 million in Treasury checks illegally obtained through the scheme.
According to court documents, Sheila Scutchings and her co-conspirators prepared false returns and then filed the returns in the names of co-conspirators and individuals in the community, whose names and Social Security numbers Scutchings and her co-conspirators obtained. Scutchings requested that the Internal Revenue Service (IRS) send the fraudulent refunds to addresses that Scutchings and her co-conspirators controlled. Included among the addresses were Scutchings’s own address and those of members of her family. Scutchings and her co-conspirators then cashed the refund checks at check cashing businesses and deposited them in various bank accounts, including a bank account in Scutchings’s name. In total, more than $350,000 of fraudulently obtained tax refund checks were deposited in Scutchings’s bank account alone.
United States District Judge Rosemary M. Collyer scheduled sentencing for March 5, 2019. Scutchings faces a maximum sentence of five years in prison on the conspiracy charge and a mandatory two years in prison on the aggravated identity theft charge.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of the Department of Treasury – Office of Inspector General and IRS – Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Thomas Koelbl and William Guappone, who prosecuted the case.
Cheswick Residents Charged in Bad Check SchemeRead the Press Release
PITTSBURGH, PA – Two residents of Cheswick, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on charges of related to the theft of government property, United States Attorney Scott W. Brady announced today. One of the defendants is also charged with uttering and possessing false securities.
The six-count Indictment, returned on Dec. 4 and unsealed today, named Holly Lovasik, 31, and John Martell, 38, as defendants.
According to indictment presented to the court, from April 23, 2018 through June 11, 2018, Lovasik and Martell engaged in a scheme to purchase large quantities of stamps from post offices in western Pennsylvania using bad checks. Lovasik used checks in her own name linked to a bank account she knew was closed, and Martell used checks in the names of two individuals, which were falsely altered, completed and signed. The defendants later sold the stamps for cash.
For Holly Lovasik the law provides for a maximum total sentence of 15 years in prison, a fine of $500,000 or both. For John Martell the law provides for a maximum total sentence of 45 years in prison, a fine of $1,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of each defendant.
Assistant United States Attorney Christy Criswell Wiegand is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Camden Man Admits Role in Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – A Camden man today admitted his role in a drug trafficking organization that distributed crack cocaine and fentanyl, U.S. Attorney Craig Carpenito announced.
Davon Leak, 20, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to a superseding information charging him with one count of conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base.
According to documents filed in this case and statements made in court:
Leak admitted that he sold crack cocaine and fentanyl, a synthetic opioid, around the 1700 block of Filmore Street in Camden. Leak also admitted that he prepared and packaged drugs for sale. Ten members of the drug ring were initially arrested in June 2017 following a long-term investigation by the FBI, which utilized telephone wiretaps, surveillance, confidential informants, cooperating witnesses, more than 20 controlled drug purchases, a GPS vehicle tracker and four court-authorized search warrants. Members of the drug trafficking organization distributed crack cocaine, fentanyl, and heroin to users and resellers in and around Camden and to people cooperating with the FBI. The investigation ultimately led to the seizure of more than 300 grams of crack cocaine, quantities of fentanyl and heroin, a firearm, and drug paraphernalia. After the initial arrests, Leak was charged in March 2018.
The count to which Leak pleaded guilty carries a mandatory minimum term of five years in prison, a maximum of 40 years in prison and a $5 million fine. Sentencing is scheduled for March 11, 2019.
Five other defendants – Daron Suiter, 24, George Williams, 44, Latoya Whealton, a/k/a “Toya,” 34, and Rajai Gaines, a/k/a “Jigga,” 36, and Karim Johnson, a/k/a “Chicky” – have previously pleaded guilty. Suiter was sentenced on Aug. 9, 2018, to five years in prison. Johnson was sentenced on Nov. 27, 2018, to 10 years in prison. The other defendants are awaiting sentencing.
Drug and firearm charges remain pending in a second superseding indictment against five other defendants, including alleged leaders John Gunther, a/k/a “Critty,” 35; and Taleaf Gunther, a/k/a “Leafy” and “L,” 32; as well as alleged members William Roland, a/k/a “Chill,” 36; Mark Campbell, a/k/a “D” and “Diz,” 28; and Malcolm McCoy, 26.
U.S. Attorney Carpenito credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation. He also thanked the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the second superseding indictment are merely accusations, and those defendants are presumed innocent unless and until proven guilty.
Defense counsel: Teri Lodge Esq., Marlton, New Jersey
Blackfeet Tribe’s Head Start Program employees admit theft, fraud chargesRead the Press Release
GREAT FALLS – Two employees who worked for the Blackfeet Tribe’s Head Start Program in Browning admitted in federal court on Thursday to stealing money through an overall scheme involving others in which an estimated $232,000 was fraudulently claimed as overtime pay, U.S. Attorney Kurt G. Alme said.
Patrick H. Calf Boss Ribs, Jr., 44, of Browning, and Theresa Marie Calf Boss Ribs, 51, each pleaded guilty to theft from an Indian tribal government receiving federal funding and to wire fraud.
U.S. District Judge Brian M. Morris presided at the hearings. Judge Morris set sentencing for both defendants for March 14. Both defendants are released.
Each defendant faces a maximum 20 years in prison, a $250,000 fine and three years supervised release.
Patrick H. Calf Boss Ribs, Jr., also faces restitution and a money judgment of $33,496.46, which is the amount he received in overtime claims.
Theresa Calf Boss Ribs also faces restitution and a money judgment of $57,048.24, which is the amount she received in overtime claims.
If the case had proceeded to trial, the government would have presented the following information as evidence:
The Blackfeet Tribe operates the Head Start Program with funding from the U.S. Department of Health and Human Services. Head Start provides early childhood education and other services for low-income children and their families.
During a 15-month period, starting in April 2013, the defendants and others falsely claimed 7,800 hours of overtime and received more than $232,000 in overtime pay from the Head Start program. When the fraud was uncovered, two different firms audited the Blackfeet Head Start program. Both audits questioned the overtime claims, identifying them as “beyond necessary and reasonable” and lacking any supporting documentation.
The Blackfeet Tribe did its own internal review, agreed it could not justify the overtime claims and repaid HHS $250,620.29 for disallowed costs and other expenses.
After an on-site review of the program by government authorities from Washington, D.C., the defendants along with others met in a conference room. Despite not actually working the hours, everyone present in the room agreed to continue claiming overtime.
Theresa Calf Boss Ribs, who was the Early Head Start manager and had other roles, and Patrick H. Calf Boss Ribs, Jr., who was the nutrition manager and payroll clerk, were in charge of monitoring the time cards. At the end of the pay period, individuals in the group would stop by to sign their time cards for the pay period. The time cards were already completed by the defendants and included false overtime hours.
Other Head Start workers told investigators they never saw Blackfeet Head Start personnel working late nights or on weekends. The program’s board chairman was unaware of the overtime claims, identified budget cuts that were necessary during the time period of the fraud and was unaware of any needs that would have justified the overtime claims by the defendants.
Assistant U.S. Attorney Ryan Weldon is prosecuting the case, which is was investigated by the FBI and HHS.
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Birmingham-Area Businessman Sentenced to Four Years for Trying to Pay His $3.6 Million Tax Debt with Fictitious InstrumentRead the Press Release
Montgomery, Alabama – Yesterday, Richard Lee Graham, 55, of Gardendale, Alabama, was sentenced to serve 48 months in federal prison for passing a fictitious instrument and obstructing the administration of the Internal Revenue laws, announced United States Attorney Louis V. Franklin, Sr., Principal Deputy Assistant Attorney General Richard E. Zuckerman, of the Justice Department’s Tax Division, and Special Agent in Charge Thomas J. Holloman, with IRS-Criminal Investigation. In addition to four years in prison, Graham was sentenced to five years of supervised release and a $10,000 fine.
Graham was found guilty of the charges on September 11, 2018 by a federal jury. Evidence presented at his trial established that in 2014 he owed approximately $3.6 million in taxes, penalties, and interest for tax years 2006 to 2009. To collect that tax debt, the Internal Revenue Service (IRS) began seizing Graham’s properties. On July 11, 2014, Graham went to the Montgomery IRS Office with a fictitious “International Bill of Exchange” in the amount of $3.6 million, along with false supporting documents, in an attempt to pay his taxes. A short time later, Graham showed up at the Birmingham IRS Office with another fake instrument of the same type and amount and attempted to use it to settle his tax debt. He also had false documents mailed to an IRS employee in an attempt to prove the legitimacy of the phony check-like instrument. Graham had previously been convicted of willfully failing to file a tax return.
“Rather than pay his taxes like most Americans, Mr. Graham chose to try and defraud the IRS, as well as his fellow citizens, by tendering a fictitious, worthless instrument to satisfy his tax liability,” stated U.S. Attorney Franklin. “This sentence should show those who choose to defraud and/or attempt to defraud the IRS that this office stands ready, willing and able to prosecute you to the fullest extent the law allows.”
“Graham thought he could be creative and try and cheat the tax system, and now he will spend time in prison,” said Thomas J. Holloman, Special Agent in Charge, IRS-Criminal Investigation. “This sentencing should deter those taxpayers thinking about engaging in tax defier conduct. Those taxpayers should think twice about submitting fictitious information to the IRS because you will face the criminal consequences.”
U.S. Attorney Franklin commended agents of Internal Revenue Service-Criminal Investigation who investigated this case, and the Alabama Department of Revenue who provided assistance. Trial Attorney Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Megan A. Kirkpatrick of the Middle District of Alabama prosecuted the case.
Belgian National Extradited to Boston for Scam Targeting Charities and Law FirmsRead the Press Release
BOSTON – A Belgian national was extradited from Morocco to the United States yesterday to face charges for his role in an e-mail scam that used counterfeit cashier’s checks to defraud charities and law firms.
Aref Zokita Said, 36, of Belgium, was charged in an indictment unsealed today with wire fraud and conspiracy to commit wire fraud. In April 2018, Said was arrested in Morocco and extradited to the United States, arriving in Boston last night. He was detained following an initial appearance in federal court in Boston today.
According to the indictment, beginning no later than August 2013, Said and his co-conspirators defrauded law firms and non-profits, including charities, by sending them fraudulent cashier’s checks and convincing them to wire money to members of the scheme, with the false assurance that the fake checks would cover the expense. Once the checks were discovered to be fraudulent, the victims’ bank accounts were debited, and the victims were left with thousands of dollars in losses, having unwittingly forwarded their own money to a member of the conspiracy.
The charging statutes provide for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, or twice the gross gain or loss involved in the scam, and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; and John Gibbons, U.S. Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorneys Kristen A. Kearney and Brian A. Pérez-Daple of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Baltimore man admits to drug distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Samuel Hogans, of Baltimore, Maryland, has admitted to heroin distribution, United States Attorney Bill Powell announced.
Hogans, also known as Richard Hogans, also known as “Lex,” age 38, pled guilty to one count of “Aiding and Abetting Distribution of Heroin.” Hogans admitted to distributing heroin in October 2017 in Berkeley County.
Hogans faces up to 20 years and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, is prosecuting the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.Baldwin County Man Receives 12 Month and a Day for Possession of a Firearm After FelonyRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that James C. Hill, a 25 year old resident of Bay Minette, Alabama was sentenced to 12 months and one day after being convicted of possession of a firearm after conviction of Unlawful Possession of a Controlled Substance.
According to a factual statement Hill signed in connection with his guilty plea, on May 21, 2018, Baldwin County deputies were investigating a complaint involving a domestic dispute. When deputies arrived on the scene, they saw Hill standing near a white vehicle and watched him bend down and drop a pistol on the ground. A citizen on the scene, told the deputies that Hill had the firearm in his pocket and as they approached he dropped it on the ground.
At that time, Hill had been convicted of a felony, Unlawful Possession of a Controlled Substance, on January 27, 2014, in the Circuit Court of Baldwin County, Alabama, case number CC-13-1196.
Special Agents of the Federal Bureau of Investigation along with officers of the Baldwin County Sheriff’s Office investigated the case and brought it to the U. S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Attorney Who Hid Money to Avoid Paying Restitution to Fraud Scheme Victims Receives 2 More Years in PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DIANE DALMY, 63, of Denver, Colorado, was resentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 60 months of imprisonment, followed by three years of supervised release, for her role in a securities fraud scheme, and for hiding money after her original sentencing proceeding earlier this year to avoid paying restitution to victims of the scheme.
According to court documents and statements made in court, between January 2009 and July 2016, Dalmy used her position as an attorney to assist others in defrauding thousands of investors through a stock “pump and dump” scheme. During the scheme, Dalmy wrote, and permitted a co-conspirator to write in her name, fraudulent opinion letters that were used to unrestrict the co-conspirators’ stock so that the stock could be freely traded on the open market, without having to register the stock with the Securities and Exchange Commission. Dalmy also provided fraudulent “adequacy” letters that were intended to mislead investors who were making investment decisions. At times, she also provided co-conspirators with capital by advancing money, which belonged to other clients of her law practice, from her Lawyer Trust Account (“IOLTA”). Finally, Dalmy laundered approximately $825,000 in proceeds of the scheme through a bank account for a private company she helped incorporate, and her IOLTA.
As a result of the fraud scheme, more than 12,000 victim investors collectively lost nearly $19 million. Dalmy’s total gain from her participation in this conspiracy, and related legal work, was approximately $30,000.
On February 6, 2018, Dalmy pleaded guilty to one count of conspiracy. In March 2018, she provided the court with a financial affidavit that required her, under penalty of perjury, to disclose all of her financial resources. On May 15, 2018, Judge Meyer sentenced Dalmy to 36 months of imprisonment and ordered her to pay $2 million in restitution.
After her original sentencing and prior to her reporting to prison in June 2018, Dalmy attempted to hide approximately $47,000 in cash. The money had been omitted from her financial affidavit.
In July 2018, the government notified the court of Dalmy’s willful failure to pay restitution.
Judge Meyer ordered a resentencing hearing and, today, sentenced Dalmy to an additional 24 months of imprisonment, for a total sentence of 60 months of imprisonment.
This investigation was conducted by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division, with assistance from the Connecticut Department of Banking, U.S. Postal Inspection Service, and Hartford and Stamford Police Departments. The case was prosecuted by Trial Attorney Avi M. Perry of the Department of Justice’s Fraud Section, who has been designated as a Special Assistant U.S. Attorney for this matter.
Armed Career Criminal Sentenced to 15 Years in PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Gregory A. Presnell has sentenced Daniel Nathaniel McCall (53, Sanford) to 15 years in federal prison for possessing a firearm as a convicted felon. Due to his multiple felony convictions, McCall qualified for an increased penalty under the Armed Career Criminal Act.
According to court documents, on November 7, 2017, McCall was involved in a dispute with his then-girlfriend. The argument escalated and McCall went inside his home and retrieved a .38-caliber firearm. He then walked outside and discharged the firearm. Shortly thereafter, McCall was arrested by officers from the Daytona Beach Police Department. At the time, McCall had multiple prior felony convictions and therefore was prohibited from possessing a firearm or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Daytona Beach Police Department. It was prosecuted by Assistant United States Attorney Alejandro J. Salicrup.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Ambridge Crack Dealer Sentenced to 5 Years in PrisonRead the Press Release
PITTSBURGH, PA - A resident of Beaver County, Pennsylvania, has been sentenced in federal court to five years in prison and five years of supervised release on his conviction of violations of the federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Matthew Smith, 53, of Ambridge, Pa.
According to information presented to the court, Smith conspired with others to distribute and possess with intent to distribute 28 grams or more of a mixture and substance containing a detectable amount of cocaine base, in the form commonly known as crack, a Schedule II controlled substance, and a quantity of a mixture and substance containing a detectable amount of cociane..
Assistant United States Attorney Robert C. Schupansky prosecuted this case on behalf of the government.
This prosecution was part of a long-term investigation by the FBI Greater Pittsburgh Safe Streets Task Force (GPSSTF), which targeted a large scale Drug Trafficking Organization operating in Butler, Beaver and Allegheny Counties. The GPSSTF is comprised of dedicated law enforcement professionals from the Wilkinsburg Police Department, Pennsylvania Attorney General’s Bureau of Narcotics Investigations, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pittsburgh Bureau of Police and the FBI.
This investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
United States Attorney Brady commended the Federal Bureau of Investigation, along with the other federal, state and local agencies involved, for the investigation leading to the successful prosecution of Smith.
Albuquerque Man Sentenced to Prison for Federal Heroin Trafficking and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Lawrence Marquez, 39, of Albuquerque, N.M., was sentenced today in federal court to 88 months in prison followed by three years of supervised release for heroin trafficking and firearms charges.
Marquez pled guilty on Aug. 28, 2018 to one count of distribution of heroin and one count of using and carrying a firearm during and in relation to a drug trafficking crime. He admitted that he possessed a firearm when he sold heroin on Feb. 23, 2017, in Albuquerque.
This case was investigated by the Albuquerque offices of the DEA and Homeland Security Investigations. Assistant U.S. Attorney Elaine Y. Ramirez prosecuted the case as part of the Department of Justice’s commitment, in partnership with other law enforcement agencies, to combat the illegal manufacturing and distribution of methamphetamine, heroin and prescription opioids and to establish new programs to provide services to victims of the opioid crisis.
Albuquerque Man Pleads Guilty to Interstate Travel to Engage in Illicit Sexual Conduct with a Minor, Child Exploitation and Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Bentley Streett, 42, of Albuquerque, N.M., pled guilty this morning in federal court to interstate travel to engage in illicit sexual conduct with a minor, child exploitation and child pornography charges.
According to court documents, Streett was arrested in Oct. 2014, by the FBI and the Bernalillo County Sheriff’s Office (BCSO) on federal child exploitation charges. The investigation into Streett began in Oct. 2013, after the National Center for Missing and Exploited Children forwarded a tip to the New Mexico Internet Crimes Against Children (ICAC) Task Force.
During today’s proceedings, Streett pled guilty to interstate travel to engage in illicit sexual conduct with a minor, two counts of production of visual depictions of minors engaged in sexually explicit conduct also known as child pornography, three counts of attempted production of child pornography, distribution of child pornography and possession of child pornography.
In entering the guilty plea, Streett admitted that between July 31, 2013, and Aug. 4, 2013, he traveled from Albuquerque to Sycamore, Ill., for the purpose of engaging in sexual conduct with a 14-year- old victim. Streett also admitted that from May 2013 through at least Feb. 2014, he attempted to persuade minors to produce child pornography and send the images to him and sent one of those minors different images of child pornography. Streett admitted that he saved multiple images of child pornography on his laptop.
At sentencing, Streett faces a statutory mandatory minimum of 15 years and a maximum of 30 years in federal prison. Streett also will be required to register as a sex offender.
This case was investigated by the Albuquerque office of the FBI, the BCSO, the New Mexico ICAC Task Force, the New Mexico Attorney General’s Office and the Regional Computer Forensics Laboratory (RCFL). The case is being prosecuted by Assistant U.S. Attorney Sarah Mease as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
12 Ohio and West Virginia residents indicted for cocaine and heroin distribution operationRead the Press Release
WHEELING, WEST VIRGINIA – Twelve people from Ohio and West Virginia are named in two indictments alleging a cocaine and heroin distribution operation that spanned both states, United States Attorney Bill Powell announced.
The indictments include a total of 37 counts of cocaine and heroin sales in Ohio County, sometimes near playgrounds, and properties used as drug distribution houses. Those named in the indictments are:
• Diego L. Hansard, also known as “Rico,” age 32, of Canal Winchester, Ohio
• Kyuten J. Smith, also known as “Mitch,” age 27, of Columbus, Ohio
• Martenez Strong-Edmonson, Jr., also known as “Bo,” age 20, of Columbus, Ohio
• Andre Hager, also known as “Andyman,” age 46, of Wheeling, West Virginia
• Brandon Suel, also known as “Cuz,” age 30, of Columbus, Ohio
• Joshua Ford, also known as “Fatboy,” age 29, of Columbus, Ohio
• Michael L. Forrest, Jr., also known as “Flip,” age 27, of Columbus, Ohio
• Thomas W. Seals, Jr., also known as “KB,” age 25, of Canal Winchester, Ohio
• Tajuan Smith, also known as “Poe,” age 19, of Canal Winchester, Ohio
• Tiffany Sells, age 37, of Wheeling, West Virginia
• Michael J. Kennen, age 35, of Wheeling, West Virginia
• Amanda R. Kennen, age 35, of Wheeling, West VirginiaThe investigation was led by the Ohio County Drug & Violent Crimes Task Force, a HIDTA-funded initiative. The task force is comprised of the Drug Enforcement Administration, West Virginia State Police, the Ohio County Sheriff’s Office, and the Wheeling Police Department. Those assisting in the arrests are the United States Marshal Service; Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Martins Ferry, Ohio Police Department; and the Columbus, Ohio Police Department.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
6 December 2018
“Manche Boy Mafia” Member Convicted of 30 Counts of FraudRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore has found Reginald Lee Black, Jr. (26, Tampa) guilty of 30 counts of fraud, including 1 count of conspiracy, 27 counts of credit card fraud, and 2 counts of aggravated identity theft. Black faces a maximum penalty of 5 years in federal prison for the conspiracy count, up to 10 years’ imprisonment for each credit card fraud count, and a mandatory consecutive term of 2 years in federal prison for the identity theft counts. His sentencing hearing is scheduled for February 19, 2019.
According to court documents, Black conspired with other members of the “Manche Boy Mafia” or “MBM” to buy stolen credit/debit card account numbers on the internet. Black and his conspirators used the stolen information to create counterfeit cards and then used the counterfeit cards to purchase gift cards and other merchandise, including flat-screen televisions, iPhones, and 22-inch rims.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Carlton C. Gammons.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Worcester Man Sentenced for Marriage FraudRead the Press Release
BOSTON – A Worcester man was sentenced Tuesday, Dec. 4, 2018, in connection with entering into six fraudulent marriages in order to evade immigration laws.
Peter Hicks, 57, was sentenced by U.S. District Court Judge Timothy S. Hillman to two years of probation. In September 2018, Hicks pleaded guilty to one count of marriage fraud. Hicks was arrested and charged in January 2018 and released on conditions following an initial appearance.
In 2014, federal law enforcement agents uncovered evidence that Hicks married six foreign national women from Sub-Saharan Africa between 2003 and 2013. Hicks filed for immigration benefits for four of his six wives.
During a routine interview as part of his application for benefits for a non-citizen spouse, Hicks admitted to marrying three of the women solely to obtain immigration benefits for them. During a second interview with immigration officials, Hicks admitted that he was paid to recruit people for fraudulent marriages. While being interviewed by federal agents on Jan. 8, 2015, Hicks admitted that he was involved in marriage fraud for approximately 13 years. He also said that he received payments to marry undocumented African women and to find willing United States citizens to marry illegal aliens for the purpose of allowing the women to establish legal status in the United States.
In addition, on at least one occasion, Hicks was still married to one spouse at the time of his marriage to another spouse. Hicks also fraudulently claimed on an immigration form submitted on behalf of one of his spouses, that he had only one former spouse and that he had only petitioned for immigration benefits for the one former spouse, when, in fact, Hicks had actually been married five times and submitted requests for immigration benefits for a number of his former spouses.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and Denis C. Riordan, District Director, U.S. Citizenship and Immigration Services, District 1, made the announcement. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.
Williamson County Man Charged with Drug and Gun OffensesRead the Press Release
Randall L. Walker, a/k/a "Pork Chop," and "Chop," of Marion, Illinois, has been charged by indictment with unlawful distribution of methamphetamine and unlawful possession of a firearm by a convicted felon, United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. The two-count federal indictment alleges that the offenses occurred in November 2018, in Williamson County. Walker, 39, made his initial appearance in federal court earlier today and pleaded not guilty to the charges. He was ordered held without bond pending a February 11, 2019 jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The drug offense carries a maximum penalty of 20 years imprisonment, three years of supervised release, and a fine of $1 million. If convicted, Walker also faces up to 10 years imprisonment, three years of supervised release, and a fine of up to $250,000 on the firearm offense.
The ongoing investigation is being conducted by the Marion Police Department. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Williamson County State’s Attorney’s Office also assisted in the investigation.
West Mifflin Woman Sentenced to Prison for Embezzling from Health Care Business, Forging Prescriptions for Controlled SubstancesRead the Press Release
PITTSBURGH, Pa. – A resident of Allegheny County, Pennsylvania, has been sentenced to 31 months imprisonment, three years supervised release on each count to run concurrently, and restitution in the amount of $87,307.76 on her conviction of Embezzlement in Connection with Health Care and Obtaining a Controlled Substance by Fraud, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Jill Ellen Bowser, aka Jill D’Angelo, 51, formerly of West Mifflin, Pa.
According to the information presented to the court, Bowser embezzled funds in the amount of $87,000 that belonged to a health care business entity, where she was employed. The court was further advised that Bowser used forged prescriptions to acquire controlled substances.
Assistant United States Attorney Shaun E. Sweeney prosecuted this case on behalf of the government.
The United States Attorney commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Jill Ellen Bowser, aka Jill D’Angelo.
Wausau Couple Sentenced for Money Laundering & Drug CrimesRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that on December 4, 2018, Chief U.S. District Judge James D. Peterson sentenced Xiong Lo, 53, Wausau, Wisconsin, to 30 months in federal prison and a $50,000 fine, and Ying Lo, 40, also of Wausau, to 4 months in federal prison and a $10,000 fine, for money laundering and distribution of marijuana.
Xiong Lo pleaded guilty to the money laundering charge on June 26, 2018. Ying Lo pleaded guilty to the drug charge on the same date. The two defendants are husband and wife. Both agreed to the forfeiture of $541,734 in drug proceeds.
On July 2, 2015, law enforcement agents arrested Ying Lo after she delivered 28 pounds of marijuana to another co-conspirator. This delivery was at the direction of her husband, Xiong Lo. In addition to the 28-pound seizure, search warrants executed at the defendants’ home and business uncovered large amounts of marijuana, approximately $50,000, drug ledgers, digital scales, and drug packaging materials, including vacuum sealers and rolls of vacuum sealed bags. Further, agents seized safe deposit keys from the defendants’ home, which led to the seizure of $491,000 in cash from safe deposit boxes rented by the defendants.
An investigation by IRS Criminal Investigation (IRSCI) during a 13-month period ending in July 2015, revealed that the Los made cash deposits over $1,000,000 into their bank accounts. Further, IRSCI agents determined that the defendants purchased two real estate properties for $180,000 in 2015. The defendants paid for these properties up-front, in full, with an unusual combination of cashier’s checks, teller checks, and money orders from different financial institutions. Shortly thereafter, the properties were sold to relatives for a fraction of the appraised value.
The charges against Xiong and Ying Lo were the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation, IRS Criminal Investigation, Marathon County Sheriff’s Office, and the Wausau Police Department. Prosecution of the case has been handled by Assistant U.S. Attorney David J. Reinhard.
Utica Man Sentenced to 130 Months for Cocaine Trafficking ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Jeffrey Rivera, age 36, of Utica, New York, was sentenced today to 130 months in prison for his participation in a drug trafficking conspiracy involving in excess of 5 kilograms of cocaine.
The announcement was made by United States Attorney Grant C. Jaquith and Keith G. Kruskall, Acting Special Agent in Charge of the New York Field Division of the U.S. Drug Enforcement Administration (DEA).
Chief United States District Judge Glenn T. Suddaby also ordered Rivera to serve 5 years of post-imprisonment supervised release, and to forfeit $13,400 in drug proceeds to the United States.
The charges stemmed from a multi-agency investigation, beginning in 2016, into the drug trafficking activities of Rivera and his co-conspirators in and around Utica.
This case was investigated by the DEA, New York State Police, Oneida County Sheriff’s Office, Oneida County District Attorney’s Office, Onondaga County Sheriff’s Office, Onondaga County District Attorney’s Office, Rome Police Department, Utica Police Department, Yorkville Police Department, and U.S. Customs and Border Protection, and was prosecuted by Assistant U.S. Attorney Katherine A. King.
Undocumented Romanian National Pleads Guilty to FraudRead the Press Release
Memphis, TN – The United States charged an undocumented alien with committing fraud at automated teller machines in the Germantown and Memphis area. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the guilty plea today.
According to the charging instrument and plea hearing, in June 2018, Cristian Balazs-Andras, 24, was arrested at First Tennessee Bank in Germantown after he attempted to use gift cards with re-encoded stolen credit and debit card numbers at the ATM. He was in possession of 68 fraudulent gift cards. Balazs-Andras was also seen via video surveillance using electronic skimming devices and other machines to commit fraud for financial gain at Sun Trust Bank throughout the Memphis area.
On December 3, 2018, Balazs-Andras pleaded guilty to two-counts of access device fraud. The maximum penalty is 10 years in federal prison and a $250,000 fine for each charge. The defendant is scheduled to be sentenced on February 1, 2019 by U.S. District Court Judge Sheryl H. Lipman.
U.S. Attorney D. Michael Dunavant said, "Access device fraud, skimming scams, and debit/credit card theft victimizes innocent citizens and compromises the security of banks. Protecting the integrity of financial institutions and transactions is a top priority of this office, and this case demonstrates that such crimes of dishonesty for financial gain do not pay. We commend the U.S. Secret Service for solving this case and helping us bring this thief to justice."
The case was investigated by the United States Secret Service.
Assistant U.S. Attorney Damon Keith Griffin is prosecuting this case on the government’s behalf.
Two Western Massachusetts Men Indicted for Armed RobberyRead the Press Release
BOSTON – Two western Massachusetts men were indicted today by a federal grand jury in Springfield on armed robbery and firearms charges.
Alfredo Aldeco, 32, of Holyoke, and Emilio Rivera, 30, of Springfield, were each indicted on one count of interference with commerce by robbery, one count of using a firearm in relation to crime of violence, and one count of being a felon in possession of a firearm and ammunition. Aldeco and Rivera were arrested and charged by criminal complaint on Nov. 21, 2018, and have been in custody since.
According to court documents, between Oct. 25, 2018, and Nov. 14, 2018, there were at least nine armed robberies of convenience stores located in Holyoke, Chicopee, Florence, West Springfield, and Agawam. Investigations into the robberies led law enforcement to determine that the same two men were involved in many of the robberies. During each of the robberies, a suspect brandished a distinctive long-barreled, black firearm-type object, and during at least one of the robberies, the suspect threatened to “come back and kill” the store clerk if the clerk called the police.
The charges of interference with commerce by robbery and using a firearm in relation to crime of violence provide for a sentence of no greater than 20 years in prison, up to three years of supervised release, and a fine of up to $250,000. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, made the announcement today. The Massachusetts State Police and the West Springfield, Holyoke, Agawam, Chicopee, Northampton, and Springfield Police Departments provided valuable assistance to the investigation. Assistant U.S. Attorney Deepika Bains Shukla of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Troy Tax Preparer Sentenced to 30 Months on Identity Theft, False Claims ConvictionsRead the Press Release
UTICA, NEW YORK – Bryant C. Hardnett, age 45, of Watervliet and Cohoes, New York, was sentenced today to 30 months in prison, to be followed by 3 years of supervised release, for stealing the personal identifying information of children and using it to falsely claim the children as his own dependents on his tax returns.
The announcement was made by United States Attorney Grant C. Jaquith and James D. Robnett, Special Agent in Charge of the New York Field Office of Internal Revenue Service (IRS)-Criminal Investigation.
As part of his guilty plea on May 22, 2018, Hardnett admitted that he formerly operated a tax preparation business, BH Tax Services, from a storefront in downtown Troy, New York. Through that business, Hardnett met a woman who asked him to file a tax return in her name for the year 2013. She provided her two children’s personal identifying information, including their names and Social Security Numbers. Hardnett never filed a tax return in the woman’s name, and instead falsely claimed the two children as his nephews and dependents on his tax returns filed with the IRS in 2013, 2014 and 2015.
United States District Judge David N. Hurd found that Hardnett caused a total loss to the government of at least $125,331.31, including related conduct to which Hardnett did not plead guilty. Judge Hurd ordered Hardnett to pay $25,000 in restitution to the IRS, and barred him from filing a tax return for anyone other than himself, while he is on supervised release. In the plea agreement, Hardnett also agreed to be permanently enjoined from ever filing a tax return for anyone other than himself.
This case was investigated by IRS-Criminal Investigation and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Tractor Trailer Driver Charged with Importing 1,309 Pounds of Methamphetamine, 9.37 Pounds of Heroin, and 2.64 Pounds of Cocaine at the Calexico East Commercial Port of EntryRead the Press Release
NEWS RELEASE SUMMARY – December 6, 2018
EL CENTRO, CALIFORNIA – Today, Jose Guadalupe Aviles-Cordero, 60, was arraigned by Magistrate Judge Ruth Bermudez Montenegro on charges of importing 1,309 pounds of methamphetamine, 9.37 pounds of heroin, and 2.64 pounds of cocaine. Aviles-Cordero was arrested at the Calexico East Commercial Port of Entry on December 5, 2018.
According to court records, Aviles-Cordero, a Mexican citizen living in Mexicali, Baja California, was the driver of a tractor pulling an empty trailer as it approached the cargo facility. U.S. Custom Border & Protection (“CBP”) officers found anomalies in the roof area of the trailer. Upon further inspection of the roof area, CBP officers discovered 90 packages of methamphetamine with a weight of 1,309 pounds, multiple packages of heroin with a weight of 9.37 pounds, and multiple packages of cocaine with a weight of 2.64 pounds.
At defendant’s initial appearance, the United States requested detention based on risk of flight. The detention hearing is scheduled for December 11, 2018 at 10:00 am before Judge Montenegro. His preliminary hearing is scheduled for December 20, 2018 at 1:30 pm before Judge Montenegro.
CBP officers at the border crossings in Southern California routinely stop illegal activity while processing millions of legitimate travelers into the United States. Those statistics can be found here: CBP-enforcement-statistics.
If you have any information related to suspected smuggling activity at the Calexico East Cargo facility, the Department of Homeland Security encourages you to report it by calling its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form.
DEFENDANT Case Number 18MJ11506
Jose Guadalupe Aviles-Cordero Age: 60 Mexicali, Mexico
SUMMARY OF CHARGES
Importation of Controlled Substances
Maximum penalty: 10 years minimum to life; $1,000,000 fine; supervised release; $100 special assessment)
INVESTIGATING AGENCIES
U.S. Customs & Border Protection (CBP)
Homeland Security Investigations
The public is reminded that a complaint is a charging document. A defendant is presumed innocent until the government meets its burden in court of proving guilt beyond a reasonable doubt.
Three Convicted of Conspiring to Defraud the U.S. Small Business Administration Through Loan FraudRead the Press Release
CHARLOTTE, N.C. – Late yesterday, a Charlotte federal jury convicted Rafid Latif, 54, of Charlotte, N.C., Ejaz Shareef, 42, of Mt. Royal, New Jersey, and Imtiaz Shareef, 39, of Bossier City, Louisiana, of conspiracy to commit wire and bank fraud and conspiracy to commit money laundering through a fraudulent loan scheme, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. A fourth co-defendant, Biren Sheth, 52, of West Caldwell, New Jersey, previously pleaded guilty on May 16, 2018, to conspiracy to commit wire and bank fraud, for his role in the scheme.
According to filed court documents and evidence presented at trial, from 2010 to 2018, Latif, Ejaz Shareef, and Imtiaz Shareef, conspired with each other and Sheth to defraud the U.S. Small Business Administration (SBA), various banks, and an insurance company through the operation and sale of two Charlotte-area hotels, the Days Inn located at 1408 West Sugar Creek Road, and the Arlington Suites located at 4416 South Tryon street.
Trial evidence established that the conspiracy involved three inter-related schemes: an insurance fraud scheme; a fraudulent loan-kickback scheme; and a short-sale scheme. According to court records, in 2010, Latif, Ejaz Shareef and Imtiaz Shareef were the operators of the Days Inn hotel. In that capacity, the three co-defendants engaged in a scheme to obtain fraudulent reimbursements from an insurance company for fictitious repairs and remodeling expenses at the Days Inn hotel. By submitting fake documents and bogus proofs of payment, the co-defendants obtained more than $825,000 from the insurance company, and then used a portion of the money to facilitate bank loan fraud schemes involving the two hotels.
According to trial evidence, in 2012, the defendants obtained an SBA loan from a bank in order to finance the purchase of the Days Inn hotel. The co-conspirators obtained the loan by making several false material representations including presenting the bank with fraudulent documents such as an inflated lease-purchase agreement; by misrepresenting the source of the down payment, which was the fraudulently-obtained insurance money; and by failing to disclose to the bank that the co-conspirators would receive nearly $700,000 as a kickback from the hotel’s inflated sale price.
In addition to the fraudulent scheme involving the Days Inn hotel, Sheth and Latif engaged in separate fraudulent loan scheme involving the Arlington Suites hotel. Trial evidence established that, as a favor for Sheth’s assistance in facilitating the purchase of the Days Inn hotel, Latif agreed to help Sheth with the fraudulent short sale of the Arlington Suites hotel. Sheth owned the Arlington Suites hotel, which was in part financed with an SBA loan. With Latif’s help, Sheth defrauded SBA by convincing SBA to agree to a short-sale when Sheth fell behind on his payments. According to trial evidence, Sheth arranged to “sell” the Arlington Suites hotel to a corporation in Latif’s name. This sham sale was in name only. According to trial evidence, Sheth convinced SBA to charge off nearly $1 million of the balance Sheth owed on the existing loan. Because Latif was only a straw purchaser and Sheth remained the true owner of the hotel, the $1 million represented an immediate increase in Sheth’s equity in the Arlington Suites hotel.
According to evidence presented at trial, Latif further defrauded SBA in connection with the Arlington Suites sale by obtaining another SBA loan to finance the purported purchase of the hotel. Latif secured the SBA loan by using false and fraudulent documentation and making material representations about the down-payment money, among other things.
In 2014, Sheth transferred to Latif $690,000 in kickback funds from the Days Inn sale, after Latif threatened to expose the Arlington Suites short-sale fraud.
At sentencing, Latif, Ejaz Shareef, and Imtiaz Shareef face a statutory maximum sentence of 30 years in prison and a $1,000,000 fine. A sentencing date for the defendants has not been set.
In making today’s announcement, U.S. Attorney Murray credited the Charlotte Division of the FBI for its investigation of this case and thanked the SBA for its invaluable assistance.
Assistant U.S. Attorneys Caryn Finley and William Miller, of the U.S. Attorney’s Office in Charlotte, are in charge of the prosecution.
Third IDOC Correctional Officer Pleads Guilty to Crimes Stemming from FBI StingRead the Press Release
BOISE - Former Idaho Department of Correction (IDOC) correctional officer Richard McCollough, 37, of Boise, pleaded guilty on Tuesday to two counts of possessing a firearm in furtherance of a drug trafficking crime, U.S. Attorney Bart M. Davis announced. McCollough pleaded guilty in front of U.S. Magistrate Judge Candy W. Dale pursuant to a written plea agreement filed with the Court.
McCollough was one of four IDOC correctional officers charged with drug trafficking and related crimes stemming from an investigation initiated by the Federal Bureau of Investigation (FBI) at IDOC’s request to address concerns of corruption among IDOC correctional officers. For his two guilty pleas, McCollough faces at least 30 years in prison up to life. His sentencing is set for February 25, 2019.
McCollough is the third defendant to plead guilty. Previously, co-defendants Robert Wallin, 36, and Timothy Landon, 36, both of Boise, pleaded guilty to conspiracy to aid and abet drug trafficking crimes. Wallin will be sentenced on February 12, 2019. Landon will be sentenced on February 26, 2019.
The fourth defendant, Erik Thompson, 38, of Star, Idaho, is scheduled for trial on February 11, 2019. Thompson is charged with conspiracy to aid and abet drug trafficking crimes, distribution of cocaine, and possessing a firearm in furtherance of those drug trafficking offenses.
According to court records, McCollough joined in a conspiracy to assist what he believed to be a large-scale drug organization. The drug dealers he was working for, however, were undercover FBI agents. McCollough admitted to carrying a handgun while he provided security and assisted in weighing 6 kilograms of cocaine during the sting operation. McCollough also admitted to carrying a handgun on a separate occasion while delivering 8.6 kilograms of cocaine to an undercover officer as part of the sting operation.
No drugs were in the sole possession of the defendants, and no drugs or other contraband were brought into any IDOC facility as part of these operations.
In addition to the FBI, the Boise Police Department, the Meridian Police Department, IDOC’s Special Investigations Unit, and the Ada County Prosecutor’s Office participated in the investigation.
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Texas Man Charged with Enticing 15-Year-Old Girl to Travel Interstate to Engage in Sexual Activity and with Producing Child PornographyRead the Press Release
A complaint has been unsealed in federal court in Brooklyn against Billy Harmon Dunn, Jr., for transporting a 15-year-old girl from Brooklyn, New York to Kosse, Texas, for the purpose of engaging in illegal sexual activity with her. Dunn is also charged with producing child pornography. Dunn was arrested Tuesday in Texas and will make his initial appearance today at the federal courthouse in Waco. The government will seek Dunn’s removal to the Eastern District of New York for prosecution.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
As alleged in the complaint and other court filings, beginning in August 2018, Dunn began an online relationship with a 15-year-old girl (the “victim”) who lived in Brooklyn. Dunn and the victim communicated regularly, and much of the discussion concerned Dunn’s desire to engage in sex with her. Dunn also persuaded the victim to take sexually explicit photographs of herself and send them to him. Initially, Dunn discussed purchasing a bus ticket for the victim to travel to Texas, but abandoned that plan upon learning she was too young to travel unaccompanied without permission from her parents, according to bus company rules. Dunn then rented a car, drove to Brooklyn and transported the victim back to a trailer park in Kosse, Texas. The victim’s mother notified law enforcement that her daughter was missing, and officers located the victim at the trailer park.
“We stand firm in our commitment to stop online predators from exploiting children,” stated United States Attorney Donoghue. “I commend the dedicated members of law enforcement who quickly collaborated across the country to locate the victim and apprehend the defendant.” Mr. Donoghue expressed his appreciation to the Kings County District Attorney’s Office, the New York City Police Department, the Brooklyn Human Trafficking Task Force, the Limestone County (Texas) Sheriff’s Office, the Kosse (Texas) Police Department, the Limestone County District Attorney’s Office and the National Human Trafficking Resource Center for their assistance in the investigation of this case.
“Child predators take advantage of children’s youth and inexperience for their own gratification. As alleged, Dunn preyed on a young girl, enticing her into an online ‘relationship’ with him all the while knowing that she was underage. He then allegedly drove more than 1600 miles to pick up the victim here in New York and transport her to his home in Texas,” stated FBI Assistant Director-in-Charge Sweeney. “Thanks to the quick work of our law enforcement partners across the country, the victim was recovered and returned to her family. We take crimes like those alleged in this complaint very seriously, and we will work tirelessly to investigate and bring to justice those who would harm our children.”
The charges are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of transporting a minor interstate to engage in illegal sexual activity, the defendant faces a mandatory minimum of 10 years in prison and a maximum of life in prison. If convicted of producing child pornography, he faces a mandatory minimum of 15 years in prison and a maximum of 30 years in prison.
The government’s case is being handled by the Office’s Civil Rights Section, in collaboration with the Brooklyn Human Trafficking Task Force and Kings County District Attorney’s Office. Assistant United States Attorney Francisco J. Navarro and Assistant District Attorney Vanessa McEvoy from the Kings County District Attorney’s Office are in charge of the prosecution.
The Defendant:
BILLY HARMON DUNN, JR.
Age: 48
Kosse, TexasE.D.N.Y. Docket No. 18-MJ-1133
Tennessee Man Is Sentenced to Prison for Unlawful Possession of Explosive Material at the Asheville Regional AirportRead the Press Release
ASHEVILLE, N.C. – Michael Christopher Estes, 47, formerly of Tazewell, Tennessee, was sentenced today by U.S. District Judge Max O. Cogburn, Jr. to 46 months in prison and two years of supervised release for unlawful possession of explosive material, in connection with the October 2017 incident at the Asheville Regional Airport, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Chief Tammy Hooper of the Asheville Police Department join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s sentencing hearing, shortly after 12:30 a.m. on October 6, 2017, Estes walked onto the grounds of the Asheville Regional Airport carrying a package containing an explosive device he had constructed. Estes placed the package outside the entrance of the airport’s baggage claim area. Estes constructed the device using material that is known to explode violently when coming in contact with a flame or other ignition source. The explosive device also contained nails and a shotgun cartridge. Nails, shrapnel, or ball bearings often are added to such devices to increase the devastation inflicted by the explosion. According to plea documents, the words “FOR GOD & COUNTRY” were written on the strike strip of a matchbox attached to the device. Another message, “FOR ALL THE V/N VETS OUT THERE!!!,” was written on the tape attaching a portion of a clock to the device. The alarm on the clock was positioned to go off at 6:00, but it was not actually set.
At approximately 6:30 a.m. on October 6, 2017, the Asheville Regional Airport Authority Department of Public Safety was alerted to the presence of a “suspicious bag” outside the terminal building. Law enforcement responded to the scene and evacuated the baggage claim area. According to court documents, bomb technicians rendered the device safe and it tested positive for explosive material. Estes was arrested the following day in an area not far from the airport.
Estes previously admitted in court that he purchased the material and constructed the explosive device he placed at the airport. Estes told law enforcement that we were getting ready to “fight a war on U.S. soil,” and that terrorists were coming to the United States. Estes told law enforcement that he believed that federal agencies were unprepared to fight the terrorists. Estes also told law enforcement that his intention was not to hurt the public but to devise a training scenario. He also said that he placed the device at the airport so it would be picked up by law enforcement, so that law enforcement would “now know how” to make a similar device. Estes also admitted to staging a backpack in the woods across from the airport. Law enforcement located the backpack, which contained some of the material Estes used to construct the device.
Estes is currently in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was led by the FBI and the Asheville Police Department. In making today’s announcement U.S. Attorney Murray thanked the North Carolina State Bureau of Investigation and the Asheville Regional Airport Authority Department of Public Safety for their invaluable assistance and coordination in this case.
Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Asheville prosecuted the case.
Tax Preparer Sentenced to Two Years in Prison for Filing Fraudulent ReturnsRead the Press Release
BIRMINGHAM - A federal judge on Tuesday sentenced tax preparer PAMELA WHITT a/k/a PAMELA MOTLEY, of Bessemer, Alabama, to two years in prison for filing false tax returns, announced U.S. Attorney Jay E. Town and Internal Revenue Service Criminal Investigation Special Agent in Charge Thomas J. Holloman.
“The U.S. Attorney’s Office and IRS-Criminal Investigation will continue to aggressively pursue those who threaten the integrity of the tax system,” Town said. “Dishonest and abusive tax preparers like Whitt, who make their living preparing and filing false tax returns, will be charged with federal crimes and will go to federal prison.”
“As we enter the tax return filing season, it is important that every taxpayer reviews their tax return and verifies that all of the information is correct on that return. This case is a prime example of a return preparer who was not credible and in addition to filing her own false tax returns, she filed false tax returns for her clients,” said Thomas J. Holloman, Special Agent in Charge, IRS-Criminal Investigation.
Whitt pleaded guilty in July to her role in filing false tax returns. According to her plea agreement, Whitt made false representations on her 2011 and 2012 individual tax returns by willfully underreporting receipts from her business and further falsely listed her filing status as single. The receipts related to over 1,000 federal income tax returns prepared. Whitt also filed false tax returns for her clients, to inflate the amount of tax refund they would receive. Whitt agreed to pay restitution of $146,177.00.
IRS-CI investigated the case, which Assistant U.S. Attorney Robert O. Posey prosecuted.
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Swain Co. Man Charged with Murder in Indian CountryRead the Press Release
ASHEVILLE, N.C. – United States Attorney Andrew Murray announced today that a federal grand jury sitting in Asheville has charged Shane McKinley Swimmer, 18, of Cherokee, N.C., with first degree murder in Indian Country.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Doug Pheasant of the Cherokee Indian Police Department join U.S. Attorney Murray in making today’s announcement.
The charging document alleges that on November 10, 2018, in Indian Country, Swimmer, who is an Indian, did unlawfully kill another human being, identified in the criminal indictment as “C.W.” The indictment further alleges that Swimmer killed C.W. willfully, deliberately, maliciously and with premeditation.
Swimmer is currently in federal custody. If convicted of first degree murder, Swimmer faces mandatory life in prison.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney Murray thanked the FBI and the Cherokee Indian Police Department for their investigation of the case.
Assistant U.S. Attorney John Pritchard and Special Assistant U.S. Attorney Justin Eason of the U.S. Attorney’s Office in Asheville are in charge of the prosecution.
Superseding Indictment Charges Asheville Man with First Degree Murder and Aggravated Sexual Abuse Resulting in DeathRead the Press Release
ASHEVILLE, N.C. – A superseding criminal bill of indictment was returned on December 4, 2018, by a federal grand jury, charging Derek Shawn Pendergraft, 21, of Asheville, N.C., with one count of first degree murder and two counts of aggravated sexual abuse resulting in the death of his Pisgah Inn co-worker, Sara Ellis, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Pendergraft was previously charged with second degree murder.
U.S. Attorney Murray is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Neal D. Labrie, Chief Ranger of the Blue Ridge Parkway; and Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI).
According to allegations contained in the superseding indictment and other court documents, on the evening of July 24, 2018, Pendergraft, who worked at the Pisgah Inn on the Blue Ridge Parkway, reported that his co-worker, Sara Ellis, was missing. Court documents allege that when initially interviewed by investigators, Pendergraft stated that he and Sara Ellis got off work shortly after 4:00 p.m., and decided to go for a hike on an unnamed trail near the employee housing area of the Pisgah Inn. Pendergraft stated that shortly after starting their hike it began to rain, and the victim decided to return to the housing area while Pendergraft continued to hike. Court documents allege that Pendergraft stated that on his way back, upon reaching the point where he last saw the victim, Pendergraft saw the victim’s umbrella and hat lying on the ground. Pendergraft informed the management staff at the Pisgah Inn that the victim was missing. Rangers and first responders searched the area and located the victim’s body lying off an embankment, near a trail, within the boundary of the Blue Ridge Parkway, in Transylvania County, in the Western District of North Carolina.
According to allegations contained in court documents, on the evening of July 25, 2018, the manager of the Pisgah Inn contacted law enforcement and advised that Pendergraft was in her office and had made statements regarding the death of Sara Ellis. Law enforcement arrived at the Pisgah Inn, interviewed Pendergraft, and arrested him shortly thereafter in connection with the victim’s murder.
Pendergraft is currently in federal custody. His court hearing on the new charges is set for Friday, December 7, 2018, at 10:00 a.m., at the federal courthouse in Asheville. The penalty for first degree murder is life in prison or death. The aggravated sexual abuse resulting in death charge carries a maximum penalty of life in prison or death.
The indictment includes a Notice of Special Sentencing Factors which could permit the United States to seek the death penalty. The Department of Justice has not yet announced whether it will seek the death penalty.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray thanked the National Park Service, the FBI, the SBI, the Transylvania County Sheriff's Office, the Haywood County Sheriff’s Office, and the Cruso Fire Department for their respective work and assistance in this case.
Assistant U.S. Attorneys Don Gast and John Pritchard, of the U.S. Attorney’s Office in Asheville are in charge of the prosecution.
Southwick Man Indicted for Sending Threatening Letters and White Powder to Federal Agencies in SpringfieldRead the Press Release
BOSTON – A Southwick man was indicted today by a federal grand jury for sending two packages, containing white powder, to federal agencies in Springfield.
Kevin A. Johnson, 47, was indicted on two counts of conveying false information and hoaxes and one count of mailing threatening communications to a federal law enforcement officer. Johnson was charged by criminal complaint and arrested on Nov. 30, 2018.
According to the charging documents, between July and November 2018, FBI’s Springfield Office and the Springfield Social Security Administration Office (SSA Springfield), received collectively three packages containing either threatening communications and/or suspicious substances. The Springfield Branch Office of the United States Attorney’s Office for the District of Massachusetts received a letter from an individual claiming responsibility for sending the packages. All of the packages contained a piece of white-lined paper with a hand-drawn logo that appeared to combine the “anarchist A” symbol (the capital letter “A” surrounded by the letter “O”) and the symbol for ISIS, a foreign terrorist organization. Two of the packages contained suspicious white powder.
As alleged in court documents, on July 23, 2018, security cameras at the FBI Springfield Office captured an individual throwing a manila envelope at the front door. The package contained a handwritten note saying: “Death to TRUMP.”
On Oct. 23, 2018, SSA Springfield received a package containing white powder and a handwritten letter stating, among other things: “FOR ALLAH YOU DIE, ATHENA KNOWS YOUR LIES, DEATH TO YOU TRAITORS, AND THE FU----- FBI.”
On Oct. 24, 2018, the FBI Springfield Office received a package through the mail addressed to “AGENT UNCLE HAM.” The package contained white powder and a handwritten note stating: “FOR ALLAH YOU DIE, ATHENA KNOWS YOUR LIES, DEATH TO THE N.O.R.A.D SPIES, AND THE FBI.” The Massachusetts State Police Laboratory later found the white powder in the packages to contain no hazardous materials.
The charges of false information and hoaxes provide for a sentence of no greater than five years in prison, one year of supervised release, and a fine of up to $250,000. The charges of mailing threatening communications provide for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Stephen A. Marks, Special agent in Charge of the U.S. Secret Service, Boston Field Division; and Southwick Police Chief Kevin A. Bishop, made the announcement today. Assistance was provided by the Western Massachusetts Joint Terrorism Task Force, Hampden County Sheriff’s Department, and Holyoke Police Department. Assistant U.S. Attorney Deepika Bains Shukla of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the indictment and complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Six Arrested in Lawrence for Identity Theft and Social Security FraudRead the Press Release
BOSTON – Six individuals were arrested today in Lawrence and charged in federal court in Boston with identity theft and Social Security fraud.
The following six Lawrence residents were each charged in federal court in separate criminal complaints with one count of misuse of a Social Security number and one count of aggravated identity theft:
- John Doe, whose true identity is unknown, allegedly requested a replacement Social Security card in the name of a deceased U.S. citizen from Puerto Rico while in jail on state drug charges. The mother of the deceased U.S. citizen confirmed that the photograph used by the suspect was not her son’s. In November 2018, the suspect attempted to obtain Medicaid benefits using the stolen identity, but appeared deceased in the Social Security system.
- John Doe, whose true identity is unknown, was convicted of possession with intent to distribute heroin while using the identity of a U.S. citizen from Puerto Rico. A comparison of license photos and booking photos, both in Massachusetts and Puerto Rico, allegedly revealed that the individual in Massachusetts was using a fraudulent identity.
- Lenin Alfredo Amparo, 44, a Dominican national with Lawful Permanent Residency status, with an extensive criminal history, including drug conspiracies, assault and battery, breaking and entering, destruction of property, and operating under the influence, submitted an application for a Massachusetts driver’s license in the identity of a U.S. citizen from Puerto Rico.
- Julissa Ranee Acosta Estevez, 45, a Dominican national, presented the name, Social Security card, and birth certificate of a deceased U.S. citizen from Puerto Rico as her own when she applied for a Massachusetts driver’s license. Acosta Estevez used the stolen identity to apply for and receive approximately $6,500 in unemployment insurance benefits. Social Security records verify a 2016 death record associated with the stolen identity as well as a 2017 application filed for child for survivor benefits in Puerto Rico.
- Andres Aridio Contrera Diaz, 30, a Dominican national, presented a name, Social Security number, and date of birth of a U.S. citizen from Puerto Rico in an application for a Massachusetts driver’s license. In addition, Contrera Diaz has received approximately $6,117 in unemployment insurance in the name of the stolen identity. Social Security records revealed the victim whose identity was stolen resides in Puerto Rico. Subsequent investigation discovered the victim had never been to Massachusetts, let alone applied for benefits in Massachusetts.
- Raul Alexander Guerrero-Sanchez, 35, a Dominican national, when arrested for drug offenses, including distribution of heroin and distribution of cocaine, presented the identification of a U.S. citizen and resident of Puerto Rico as his own.
“These were targeted investigations, aimed specifically at identifying people who have stolen the identities of others,” said United States Attorney Andrew E. Lelling. “And the continued emphasis on the City of Lawrence is no coincidence: with the help of state and local partners, we will continue targeting drug, gun, and immigration-related crime in that city until the crime rate there drops substantially. This has been, and will continue to be, a top priority of my office.”
“Today’s arrests demonstrate our commitment to stopping the real threats and devastating financial impacts that American taxpayers and citizens face from the danger of identity theft crimes,” said Peter C. Fitzhugh, Special Agent in Charge, Homeland Security Investigations in Boston. “Along with our local and federal partners, we look forward to the successful prosecution of these individuals who have literally robbed the identities and stolen directly out of the pockets of American taxpayers.”
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), comprised of various local, state and federal agencies with expertise in detecting, deterring and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
Among those individuals that the DBFTF is currently investigating are suspected aliens, predominately from the Dominican Republic, who are believed to have obtained stolen identities of United States citizens living in Puerto Rico and who have used those identities to obtain documents and public benefits that they would not otherwise be eligible to receive, such as Registry of Motor Vehicles identity documents, Social Security numbers, Medicaid, unemployment and public housing subsidies.
U.S. Attorney Lelling; HSI SAC Fitzhugh; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Joseph Cronin, Inspector in Charge of the U.S. Postal Inspection Service; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; Denis C. Riordan, District Director, U.S. Citizenship and Immigration Services, District 1; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit is prosecuting the cases.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Six Area Doctors Charged in Connection with $464 Million Health Care Fraud Scheme Involving Unnecessary Injections and Unlawfully Prescribed OpioidsRead the Press Release
UPDATE
Defendants Rajendra Bothra, Ganiu Edu, David Lewis and Christopher Russo, were acquitted of the charges alleged in the indictment described in the press release below.
A grand jury returned an indictment Tuesday that charges six doctors as part of an investigation into a $464 million health care fraud scheme that involved over 13 million unlawfully prescribed opioid prescription drugs, United States Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office and Special Agent in Charge Timothy R. Slater of the FBI’s Detroit Division.
The 56-count Indictment charges that Dr. Rajendra Bothra, 77, of Bloomfield Hills, owned and operated a pain clinic in Warren, Michigan that sought to bill insurance companies for the maximum number of services and procedures possible with no regard to the patients’ needs. Dr. Eric Backos, 65, of Bloomfield Hills; Dr. Ganiu Edu, 50, of Southfield; Dr. David Lewis, 41, of Detroit; Dr. Christopher Russo, 50 of Birmingham; and Dr. Ronald Kufner, 68 of Ada, all worked at the clinic in varying capacities but each prescribed opioid pain medication to induce patients to come in for office visits. Once there, in order to receive the highly addictive opioid prescriptions, patients were forced to undergo ancillary services, such as painful facet joint and facet block injections
“The damage that opioid distribution has done to our community and to the United States as a whole has been devastating,” said U.S. Attorney Schneider. “Healthcare professionals who prey on patients who are addicted to opioids in order to line their pockets is particularly egregious. We will continue to prosecute such individuals who choose to violate federal law and their ethical oaths.”
“Our enforcement actions underscore the commitment of the FBI and our partners to investigate vigorously physicians who use opioid prescriptions to induce patients to submit to unnecessary medical procedures,” said Timothy R. Slater, Special Agent in Charge of the FBI’s Detroit Division. “Today’s charges should signal to the community that we take these cases seriously and I encourage anyone who has information about this case - or about any other activity of this type - to contact the FBI at 313-965-2323.”
“Physicians who engage in the illegal and negligent prescribing of controlled substance in order to unjustly enrich themselves of taxpayer dollars will be held accountable” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG will continue to prioritize the investigation of allegations involving fraud schemes that incorporate the illegitimate prescribing of Opioid medications in order to protect the health and safety of patients. We will continue to work diligently with our federal, state and local partners to preserve the integrity of federal funded health care programs such as Medicare and Medicaid and the people that these programs support.”
The case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation with the assistance of the Drug Enforcement Administration, the City of Warren Police Department, and Blue Cross/Blue Shield - Corporate and Financial Investigations. It is being prosecuted by Assistant United States Attorney Brandy R. McMillion.
McMillion serves as the Opioid Fraud Abuse and Detection Unit Prosecutor for the Eastern District of Michigan. This Department of Justice initiative uses data to target and prosecute individuals that are contributing to the nation’s opioid crisis. The Eastern District of Michigan is one of the twelve districts included in the Opioid Fraud Abuse and Detection Unit.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Sex Offender Sentenced to Prison for Illegally Reentering the U.S.Read the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ENRIQUE FAJARDO MARIN, 40, a citizen of Ecuador recently residing in Danbury, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 18 months of imprisonment for illegally reentering the U.S.
According to court documents and statements made in court, in December 2011, Fajardo was convicted in Danbury Superior Court of illegal sexual contact with a minor and risk of injury. He was sentenced to 18 years of incarceration, execution suspended after 10 years, with 20 years of probation. Fajardo also was required to register as a sex offender for a period of 10 years.
On February 5, 2016, after he was released from state custody, Fajardo was deported from the U.S. to Ecuador.
On June 28, 2017, Farjardo was arrested in Worcester, Massachusetts. The investigation revealed that Fajardo illegally reentered the U.S. and had been residing in Danbury since approximately December 2016. Fajardo also had failed to register as a sex offender in Connecticut.
Fajardo has been detained since his arrest and is currently incarcerated in state custody for violating his parole. On June 18, 2018, he pleaded guilty in federal court to illegally reentering the U.S.
This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, and the U.S. Marshals Service, with the assistance of Connecticut State Parole. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Second Superseding Indictment Returned Against Irvin Mayfield and Ronald Markham for Defrauding New Orleans Public Library FoundationRead the Press Release
NEW ORLEANS, LOUISIANA – IRVIN MAYFIELD, age 40, and RONALD MARKHAM, age 39, both residents of New Orleans, Louisiana, were charged by a federal grand jury in a 24-count second superseding indictment for conspiracy, wire fraud, mail fraud, money laundering, obstruction of justice, and false statements announced the United States Attorney’s Office.
In addition to the allegations contained in the previous superseding indictment, the second superseding indictment provides the following new details about the conspiracy charged in Count 1:
- On about October 26, 2012, MAYFIELD contacted a staff member of a local church with whom he was friends, and asked for the church to hold approximately $70,000 of the New Orleans Public Library Foundation (NOPLF) money in a church bank account, telling the staff member that he was trying to avoid moving the funds to an organization of which he was a board member.
- On about October 2, 2013, MAYFIELD and MARKHAM falsely informed and caused NOPLF auditors to be falsely informed that money transferred to the Youth Rescue Initiative (YRI) was for book drives.
- After being notified of the issuance of grand jury subpoenas to NOPLF auditors and an investment account manager, MARKHAM and MAYFIELD caused NOPLF employee “A” to email 2011 through 2013 NOPLF board minutes to MARKHAM on about November 19, 2013.
- On about November 24, 2013, MAYFIELD and MARKHAM told NOPLF employee “A” to meet them at MAYFIELD’s home where they instructed employee “A” to change line items and dollar amounts on NOPLF board minutes.
- On about November 25, 2013, MAYFIELD and MARKHAM emailed and caused to be emailed the fraudulently edited board minutes, now labelled the “official board minutes,” to unwitting legal counsel for NOPLF.
- On about November 25, 2013, MAYFIELD and MARKHAM sent and caused to be sent a materially false and misleading email to NOPLF board members attaching the fraudulently altered NOPLF board minutes and false claimed the records justified the transfer of money from NOPLF to the New Orleans Jazz Orchestra (NOJO).
- On about December 26, 2013, MAYFIELD and MARKHAM discouraged the Executive Director of the New Orleans Public Library from asking for its annual $100,000 in support from NOPLF, claiming that there were not nearly as many resources as thought, that if the Library continued to ask for such support, the resources would soon be depleted, and that the Library’s continued reliance on the NOPLF for support, even for small dollar amounts, would depend on the Library and the NOPLF jointly raising significant funds on an annual basis.
- On about January 14, 2014, MARKHAM falsely informed NOPLF board members, employees of NOPLF and NOPLF legal counsel that NOPLF did not fund NOJO salaries for MAYFIELD and MARKHAM and that NOJO was not dependent on NOPLF funding.
Furthermore, the second superseding indictment adds Count 24 (false statements) which alleges that MARKHAM lied to the FBI when he stated that he did not know who altered the NOPLF board minutes and did not know how the board minutes were changed, when in truth and in fact, as he then well knew, he had personally participated in fraudulently altering the board minutes, as detailed above.
If convicted, the defendants face five years of imprisonment as to Count 1, 20 years of imprisonment as to Counts 2 through 8, ten years of imprisonment as to Counts 9 through 22, and 20 years imprisonment as to Count 23. As to Count 24, MARKHAM faces 5 years of imprisonment. All counts also carry a possible $250,000 fine.
The United States Attorney’s Office reiterated that the second superseding indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Inspector General’s Office and is being prosecuted by Assistant U. S. Attorneys G. Dall Kammer, Supervisor of the General Crimes Unit, Brandon Long, and Theodore Carter.
* * *
- On about October 26, 2012, MAYFIELD contacted a staff member of a local church with whom he was friends, and asked for the church to hold approximately $70,000 of the New Orleans Public Library Foundation (NOPLF) money in a church bank account, telling the staff member that he was trying to avoid moving the funds to an organization of which he was a board member.
San Jose Man Indicted for Possessing a Firearm as a Felon in Solano CountyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Brandon Edward Nichols, 27, of San Jose, charging him with possessing a firearm as a felon, U.S. Attorney McGregor W. Scott announced.
According to court documents, on December 12, 2017, Nichols’ car was stopped for a vehicle code violation. During the contact with the officer, Nichols produced various credit cards and identification issued in other people’s names. When the officer arrested Nichols for possessing these items, she found a gun in the driver’s‑side door. During a subsequent search of Nichols’ hotel room, officers found a second firearm. Nichols was previously been convicted of a felony and cannot lawfully possess firearms or ammunition.
This case is the product of an investigation by the Fairfield Police Department with special assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.
If convicted, Nichols faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charge is only an allegation; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as a 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. PSN was reinvigorated in 2017 as part of the Department of Justice’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.
Sacramento Man Indicted for Possessing Methamphetamine, Cocaine, and FirearmsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Ou Vern Saeteurn, 23, of Sacramento, charging him with possessing with the intent to distribute methamphetamine and cocaine and possessing two firearms in furtherance of his drug crimes, U.S. Attorney McGregor W. Scott announced.
According to court documents, on September 6, 2018, law enforcement agents searched Saeteurn’s Oak Park home. In his bedroom closet, they found about 1 kilogram of methamphetamine and about 1 kilogram of cocaine. They also found two loaded firearms, additional ammunition, and about $9,400 in cash. In the rest of this home, officers found more methamphetamine, cocaine base, heroin, opium, about 16 firearms, magazines, and ammunition.
This case is the product of an investigation by the Federal Bureau of Investigation, the Sacramento Sheriff’s Office, the Sacramento Police Department, the California Highway Patrol, the California Department of Corrections & Rehabilitation, and Homeland Security Investigations. Assistant U.S. Attorney Amanda Beck is prosecuting the case.
If convicted, Saeteurn faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as a 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. PSN was reinvigorated in 2017 as part of the Department of Justice’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.
Southern District of Mississippi and Partners Receive National Project Safe Neighborhoods AwardRead the Press Release
Kansas City, Missouri – Today, at the 2018 Project Safe Neighborhoods (PSN) National Conference, Acting Attorney General Matthew Whitaker presented the U.S. Attorney’s Office for the Southern District of Mississippi and its law enforcement partners with the award for Outstanding Overall Partnership/Task Force for Project EJECT. Only 16 awards were given during the annual PSN National Conference, which recognize individuals and groups for their dedication and contribution to the success of PSN. Project EJECT was one of only two recognized as the best partnerships or task forces in the nation.
"Project Safe Neighborhoods is making our prosecutions more targeted and more effective—and that makes the American people safer," said Acting Attorney General Whitaker. "Today the Department recognizes 16 examples of those who go above and beyond the call of duty in using PSN to reduce violent crime. We had a lot of impressive nominees, but even with tough competition, these 16 stood out. I want to thank each one of them for their service and congratulate them on a job well done."
When specifically referring to Project EJECT, Acting Attorney General Whitaker stated, "They’re hitting violent crime from every angle—and it shows."
"Just one year ago, we launched Project EJECT with the intent of making our Capital City safer for everyone. I’m incredibly proud of what our partners, our office and our prosecutors have been able to accomplish in such a short period of time. By empowering our citizens and working together, and doing more than just prosecute crimes, we are reducing overall violent crime in the City of Jackson and making our communities safer. I look forward to continuing this important work in Jackson and expanding it throughout the Southern District in the coming year" said U.S. Attorney Mike Hurst.
In December 2017, the U.S. Attorney’s Office for the Southern District of Mississippi launched its PSN task force to combat violent crime occurring in Jackson, Mississippi. The United States Attorney’s Office, ATF, DEA, FBI, and U.S. Marshals Service joined forces with Homeland Security Investigations, the Jackson Police Department, Hinds County District Attorney’s Office, Mississippi State Crime Laboratory, state law enforcement, Jackson city council members, community leaders, business leaders, non-profits, and faith leaders to form Project EJECT, a holistic, multi-disciplinary approach to combating violent crime. EJECT stands for "Empower Jackson Expel Crime Together," Project EJECT employs four platforms: prevention; prosecution; reentry and rehabilitation; and awareness. In addition to undertaking significant enforcement efforts, members of the task force conduct prevention activities at schools and non-profits, and engage the community through regular town hall meetings. This coordinated and comprehensive approach helped reduce violent crime in the City of Jackson by over 7% since this time last year.
"Just over a year ago, this initiative was only a concept aimed at using the assets and resources of the whole community to make Mississippi safer, and I am proud of the work that has been done by all of the agencies and partner organizations involved in the endeavor," said Christopher Freeze, Special Agent in Charge of the FBI in Mississippi. "From the initial proposals and discussions about the objective of the project, to numerous investigations and successful prosecutions, our Special Agents, Task Force Officers, Intelligence Analysts and Professional Support staff have worked countless hours to reduce violent crime and make our communities safer, no matter who gets the credit. Although this is the only narrative most people hear, the center focus of our involvement is the culture our children and their children will face in the coming years. We hope that this initiative will continue to build a culture and community for today, for our children and for their children."
"Project Eject is another example of the commitment of the ATF, the US Attorney’s Office and all of our federal, state and local law enforcement partners to impact and reduce violent crime in the city of Jackson," said Dana K. Nichols, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives New Orleans Field Division. "With the inclusion of the community and community leaders in Project EJECT, we have created a truly unique strategy and partnership that will pay dividends for the citizens of Jackson for not only this year, but for years to come. We are "ALL" committed to making our neighborhoods safer."
"Project EJECT inflicted a debilitating blow to the network of drug traffickers and violent criminals in the city of Jackson and beyond," said DEA Assistant Special Agent in Charge J. Derryle Smith. "This project continues a deliberate and strategic effort to cut off and shut down the supply of drugs and guns entering our cities and is a milestone in our tireless assault on these violent drug traffickers. The results of Project EJECT clearly demonstrate DEA’s commitment, along with the combined strength that federal, state, and local agencies, both in law enforcement and civilian, bring to bear in the battle to keep our neighborhoods safe. U.S. Attorney Hurst and his entire staff are to be commended for their continuing efforts into battling violent crime in the city of Jackson."
Attending the PSN National Conference on behalf of Project EJECT is U.S. Attorney Mike Hurst, First Assistant U.S. Attorney Darren LaMarca, U.S. Attorney’s Office Criminal Chief Courtney Coker, Jackson Police Department Assistant Chief Ricky Robinson, and Hinds County Assistant District Attorney Pat McNamara.
Redmond Man Sentenced to Federal Prison for Hash Oil ExplosionRead the Press Release
EUGENE, Ore. – On Wednesday, December 5, 2018, William E. Wild, Sr., 48, of Redmond, Oregon, was sentenced to 120 days in federal prison and three years’ supervised release for endangering human life by manufacturing hash oil, a controlled substance.
According to court documents, on December 12, 2016, law enforcement and first responders responded to an explosion at Wild’s residence in Redmond. The explosion occurred in a detached garage where the defendant had been illegally manufacturing butane hash oil (BHO). The force of the explosion blew out Wild’s garage door. By his own admission, Wild had been smoking a cigarette in close proximity to the lab at the time of the explosion.
Officers on scene reported finding burnt clothing, a pressure cooker, a Pyrex dish, a large bin of marijuana stem bud and seed as well as an amber substance later identified as BHO. Officers also found a grow room adjacent to the garage with more than 20 mature marijuana plants. In total, investigators seized 57 mature marijuana plants; scales; packaging materials and containers; ledgers containing drug amounts, debts and receipts; approximately $20,000 in cash and several pipe bombs in Wild’s home.
Wild and his 18-year-old daughter were present at the time of the explosion, suffered burns and smoke inhalation and were transported by ambulance from the residence. Wild’s daughter was later intubated and flown by air-ambulance to Portland for treatment.
Wild, a first-time offender, previously pleaded guilty to one count of endangering human life on August 16, 2018. A restitution hearing is scheduled for February 7, 2019.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in partnership with the Central Oregon Drug Enforcement team (CODE), the Oregon State Police and the Redmond police and fire departments. It was prosecuted by Pamela Paaso, Assistant U.S. Attorney for the District of Oregon.
Damaged Garage Door Marijuana Plants Pipe BombsRecidivist Securities Fraudster Sentenced to Five Years in PrisonRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Howard M. Appel, 57, of Wayne, Pennsylvania, was sentenced today by United States District Judge Paul S. Diamond to 60 months’ incarceration following Appel’s earlier conviction, upon his plea of guilty, to one count of conspiracy to commit securities fraud. The defendant’s sentence also includes three years of supervised release, a fine of $200,000, and a forfeiture payment of $3,868,699.46. The defendant has been detained in jail since his guilty plea in August 2018.
In 2010, approximately one year after his release from prison following two prior securities-fraud related convictions, Appel participated in a new securities fraud scheme involving publicly traded companies, including Virtual Piggy, Inc. (ticker symbol “VPIG”), and Red Mountain Resources, Inc. (ticker symbol “RDMP”). Appel acquired title to the shares in the names of nominees in order to hide his ownership block from investors and manipulated the share price of the stocks by engaging in a complicated series of actions, including coordinated buying and selling with co-conspirators. Appel also admitted that he traded on inside information that he obtained as a result of his “consulting” work for the companies, including the status of the companies’ efforts to get listed on NASDAQ. In sentencing Appel, Judge Diamond found that Appel had obtained over $3,800,000 in illegal profits from his fraud in this case.
“Incredibly, this is Appel’s third securities-fraud related conviction,” said U.S. Attorney McSwain. “The defendant needs to understand that every time he commits a federal crime, he will be prosecuted. Hopefully, this will sink in over the next five years as he sits in jail. Prosecuting securities fraud and thereby safeguarding the integrity of the securities markets has been and will continue to be a top priority of my Office.”
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michael S. Lowe. The parallel civil enforcement proceeding was filed by the Securities and Exchange Commission’s New York Regional Office, under the direction of Mark P. Berger.
Queens Resident Sentenced to More than 18 Years’ Imprisonment for Hate Crimes Targeting Arabs, Muslims and HindusRead the Press Release
Earlier today, in federal court in Brooklyn, Ray Lazier Lengend was sentenced by United States District Judge LaShann DeArcy Hall to 18 years and 10 months in prison, to be followed by three years’ supervised release, for perpetrating hate crimes in Queens, New York. Lengend pleaded guilty in December 2017 to two counts of hate crimes through the use of fire and explosives.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Lengend’s firebombing of houses of worship out of hatred of certain religions and races is the antithesis of what this country is all about,” stated United States Attorney Donoghue. “Such hate-filled crimes, through which he spread fear and endangered the lives of first responders and others, will never be tolerated by the Justice Department or the American people. I commend the law enforcement officers who quickly apprehended the defendant and restored a sense of security to our community.”
“In 2012, Lengend, motivated by hate, fire-bombed five buildings in Queens with the intent to kill or maim innocent people simply because of their religion or national origins,” stated FBI Assistant Director-in-Charge Sweeney. “Today, he learned the consequences of his despicable actions. His sentence should serve as a reminder the FBI will never waver in its commitment to protecting and preserving the rights of all Americans, including the free exercise of one’s chosen religion.”
On January 1, 2012, the defendant went on a firebombing spree, attacking five buildings in Queens with Molotov cocktails, including a Shiite mosque, the Imam Al-Khoei Foundation and a private residence that housed a Hindu temple. He was arrested the next day. Following the defendant’s arrest, he stated that he hated Arabs, Muslims and Middle Easterners. With respect to the mosque bombing, the defendant stated that he had intended to “take out as many Arabs as possible.” No one was injured by the defendant’s attacks.
Lengend was prosecuted in a parallel proceeding in State Supreme Court in Queens, and pleaded guilty to attempted arson as a hate crime and was sentenced to 20 years’ imprisonment in October 2017. Today’s sentence will run concurrent with the state sentence.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorneys Taryn A. Merkl and Nomi Berenson are in charge of the prosecution.
The Defendant:
RAY LAZIER LENGEND
Age: 46
Queens, New YorkE.D.N.Y. Docket No. 12-CR-188 (LDH)
Punta Gorda Woman Sentenced for Fannie Mae FraudRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Hollie Darlene Dustin (60, Punta Gorda) to six months in federal prison for committing wire fraud against the Federal National Mortgage Association (Fannie Mae). The court also ordered Dustin to serve a term of three years of supervised release, 100 hours of community service, and to pay restitution in the amount of $34,001.25. As part of her sentence, the court also entered a forfeiture money judgment in the amount of $34,001.25, the proceeds of the wire fraud. Dustin had pleaded guilty on June 19, 2018.
According to court documents, Dustin, a licensed real estate broker, owned Home Choice Real Estate (HCRE), a company that contracted with Fannie Mae to manage and perform preservation services on various Fannie Mae foreclosed properties. As part of a Master Listing Agreement with Fannie Mae, Dustin’s company was prohibited from using any vendors that she controlled to perform preservation services on Fannie Mae properties. Dustin fraudulently used ProPreserve, a company that she controlled, to perform preservation services on the properties without Fannie Mae’s knowledge or consent. She then submitted approximately 550 fraudulent ProPreserve invoices for HCRE, which Fannie Mae paid.
Dustin also created inflated ProPreserve invoices for work already performed by other vendors, then submitted those false invoices to Fannie Mae for payment.
Dustin used interstate wires to fraudulently submit the invoices to Fannie Mae.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General. It was prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Priest Charged with Sexually Abusing Filipino BoysRead the Press Release
CINCINNATI – An American priest from Cincinnati has been charged by a federal criminal complaint for allegedly sexually abusing minor boys.
Kenneth B. Hendricks, 77, of Cincinnati, was arrested Tuesday evening in the Philippines, where he currently serves as a missionary priest.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), announced the charges.
The government unsealed the criminal complaint today. According to that document and its supporting affidavit, on November 13, HSI received information regarding alleged sexual exploitation of multiple minor Filipino boys.
Information indicated that a Catholic priest – later identified as Father Hendricks – had been sexually assaulting the boys. Subsequently, several victims have been identified and provided statements to law enforcement.
For example, one victim said he had been sexually abused by the local parish priest since 2009, when the boy was approximately 12 years old. Another victim stated he was sexually abused by Hendricks beginning when the victim was seven years old.
One victim said he and Hendricks engaged in anal sex at least a dozen times and oral sex more than 30 times. Further, Hendricks allegedly inserted a hose and his fingers into the boy’s anus.
Another victim said he masturbated Hendricks’s penis approximately 40 times and that Hendricks did the same to the boy at least 60 times.
Victims said Hendricks began by kissing them and the contact escalated to touching their penises, oral and anal sex.
Hendricks allegedly had a number of minor boys residing with him. It is alleged he insisted they take baths together, and would molest the victims alone or with other boys. The priest allegedly warned the victims that if they told anyone they would all go to prison.
In a recorded conversation with one of the victims, Hendrick stated: “This will probably be the scenario is, there will be a meeting and then it will be decided, you know, what your parents want to do about anything. Do they want to try…want to press charges, uh, whatever see, but that’s between them and the Bishop, I have nothing to do with that. I just get the fallout afterwards.”
In the same conversation, Hendricks said: “they will decide, ask you what your decision is, what you’re going to do, whether there will be a case or not or whether, you know, a settlement, I don’t know. But as far as after that, I don’t know what’s going to happen. I really will have to probably really resign, retire now.”
Hendricks is charged as a United States citizen with engaging in illicit sexual conduct in foreign places, which is a federal crime punishable by up to 30 years in prison.
U.S. Attorney Glassman commended the investigation of this case by HSI and the Assistance of the Philippines National Police, as well as Assistant United States Attorneys Christy L. Muncy and Timothy D. Oakley, who are prosecuting the case.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
If you have information related to this alleged conduct, or believe you are also a victim, please contact HSI at 513-246-1461.
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Paterson Police Officer Admits Concealing Civil Rights Crime in Connection with Another Officer’s Assault of Attempted Suicide VictimRead the Press Release
NEWARK, N.J. – A City of Paterson police officer today admitted concealing the assault of an attempted suicide victim by another police officer at St. Joseph’s Medical Center in Paterson, U.S. Attorney Craig Carpenito announced.
Police Officer Roger Then, 29, of Paterson, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to Count 4 of the indictment against him, charging him with misprision of felony, for concealing the civil rights crime committed by his partner, Ruben McAusland.
According to documents filed in this case and another case and statements made in court:
Then and McAusland were police officers with the Paterson Police Department. On March 5, 2018, they responded to a call from an attempted suicide victim. The victim called 911 and was taken by the Paterson Fire Department to St. Joseph’s Medical Center. Then and McAusland responded to the victim’s residence and subsequently followed the Fire Department to the hospital to monitor the victim.
Two videos captured some of the events that took place in the hospital that night. In the first video, captured by hospital surveillance, the victim was in a wheelchair. McAusland was standing at the hospital admissions desk. The victim appeared to throw an object down the hallway. McAusland, looking angry, pushed the victim’s wheelchair with his hands and punched the victim in the face. As the victim fell towards the ground, still in the wheelchair, Then grabbed the victim by the back of the neck and further pushed the victim to the ground. Then reached for his handcuffs, but McAusland told Then not to handcuff the individual and McAusland further stated, “I got this.”
In the second video, taken by Then, using his cellular telephone, the victim was on his back in a hospital bed. The victim said, “Right here? See my cheek?” McAusland said, “You have the right guy today.” Then turned the camera toward himself and smiled. Then next turned the camera back towards the victim and McAusland. The victim said, “Ha, ha, bitch.” McAusland responded, “I’m a what?” The victim said, “Do it.” McAusland put on a pair of hospital gloves and proceeded to violently strike the victim twice across the face. McAusland then stood over the victim and said, “I ain’t fucking playing with you.” The victim covered his face with his hands and was silent. McAusland continued, “Calm your ass down.” Rather than intervening to stop McAusland’s assault of the victim, Then recorded it.
Then and McAusland submitted a police report in connection with the events of March 5, 2018. The police report did not mention that McAusland punched the victim and that Then grabbed the victim by the neck and pushed the victim towards the ground, as captured in the first video. The police report also did not mention that McAusland violently struck the victim, twice, in a hospital room, as depicted in the second video. Nor did the police report mention that Then had recorded the second assault on his cell phone and failed to intervene to stop it from happening.
The victim suffered multiple injuries to his face, including an eye injury that required surgery, as a result of these assaults.
McAusland previously pleaded guilty to possessing with intent to distribute narcotics and deprivation of civil rights under color of law. He is awaiting sentencing.
The misprision of felony count carries a maximum penalty of three years in prison and a maximum fine of $250,000. Sentencing is scheduled for March 12, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea. He also thanked the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes, the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Police Chief Troy Oswald, and the Paterson Police Department Office of Internal Affairs for their assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal, Deputy Chief of the Criminal Division, and Lee M. Cortes Jr., Deputy Chief of the Special Prosecutions Division.
Defense counsel: John P. McGovern Esq., Newark
Omaha Man Sentenced for Embezzlement of Government FundsRead the Press Release
United States Attorney Joe Kelly announced that Michael A. Basile, 62, was sentenced on December 6, 2018, in Omaha, Nebraska, by United States District Judge Robert F. Rossiter, Jr., for the crime of embezzlement of Government funds. Judge Rossiter sentenced Basile to 5 years of probation, 150 hours of community service, and ordered Basile to make restitution to the Veteran’s Administration in the amount of $62,255.56 and to the Railroad Retirement Board in the amount of $108,352.32.
Basile was receiving disability payments from both the Veteran’s Administration and the Railroad Retirement Board, based upon an existing disability. However, from June of 2014 through September of 2017, Basile engaged in contract work and had payment for that work made payable to a family member in order to conceal his income. Basile failed to report that income to both the Veteran’s Administration and the Railroad Retirement Board, as was required as a condition of his receipt of the disability payments.
“Our office will continue to vigorously investigate individuals who commit fraud against the disability program of the U.S. RRB,” said Kristie Osswald, Special Agent in Charge, Office of Inspector General, U.S. Railroad Retirement Board.
Gregg Hirstein, Special Agent in Charge, VA Office of Inspector General, said, “The Department of Veterans Affairs Office of Inspector General is committed to prosecuting those who seek to illegally enrich themselves at the expense of programs intended to help our nation’s veterans. This case should serve as a deterrent to those who would seek to defraud VA.”
This case was investigated by agents with both the Veteran’s Administration and the Railroad Retirement Board Office of Inspector General.
Ohio Man Convicted of Terrorism Offenses After Trying to Join ISISRead the Press Release
Laith Waleed Alebbini, 28, of Dayton, Ohio, was convicted today for attempting and conspiring to join the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Special Agent in Charge Todd Wickerham of the FBI’s Cincinnati Division and other members of the FBI’s Joint Terrorism Task Force (JTTF) announced the guilty verdict.
U.S. District Judge Walter H. Rice returned a guilty verdict today following a bench trial that started on Nov. 13, convicting Alebbini of one count of attempting to provide material support and resources to ISIS, and one count of conspiring to do the same. Alebbini attempted and conspired to provide material support and resources to ISIS in the form of personnel, namely himself.
Alebbini, a citizen of Jordan and a U.S. legal permanent resident, was arrested by the FBI on April 26, 2017, at the Cincinnati/Kentucky International Airport, as he approached the TSA security checkpoint. Alebbini waived his right to trial by jury, and the case proceeded to trial before the Court. The evidence at trial showed that at the time of his arrest, Alebbini had a ticket and boarding passes in hand for a flight to Amnan, Jordan, with a connection in Istanbul, Turkey. The evidence also showed that Alebbini intended to step off the plane once in Istanbul, forego the flight to Amman, and instead make his way from Turkey into Syria in order to join ISIS there.
According to court documents and testimony, on April 20, 2017, during a six-hour conversation with a friend who tried to talk Alebbini out of traveling and joining ISIS, Alebbini told his friend: “I did not say the Islamic State does not cut off heads. The Islamic State is the beheader and throat cutter…I agree with you on that…, but they still treat captives well. The captive, before he is beheaded, is treated well, but when it’s time to behead him, he will be beheaded….But the Islamic State is fighting a survival war. They ask people to migrate to the State. When migrants get there…they will assign them accordingly to a…district where they will recruit them as inghimasi. I, cousin, want to go to be an inghimasi soldier.” As explained at trial, an “inghimasi soldier” is a particularly lethal type of suicide bomber – one who seeks to cause as much death and destruction as possible prior to detonation. Alebbini told a relative days later: “I am now ready to migrate.”
In a message exchange on April 26, 2017, about an hour before Alebbini arrived at the Cincinnati-Northern Kentucky airport, another relative pleaded with Alebbini not to travel. Alebbini responded in three separate back-to-back messages: “Do you think I am a criminal” “I am a terrorist” “I am mujahid”.
Attempting to provide material support to a foreign terrorist organization, and conspiracy to do so, are each federal crimes punishable by up to 20 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. Any sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. The Court scheduled sentencing for March 8, 2019. After serving his sentence, Alebbini will face deportation.
Assistant Attorney General Demers and U.S. Attorney Glassman commended the investigation of this case by the JTTF, which includes officers and agents from the FBI, U.S. Secret Service, U.S. Immigrations and Customs Enforcement, Greene County Sheriff’s Office, Oakwood Police Department, Dayton Police Department, Cincinnati Police Department, Colerain Police Department, Ohio State Highway Patrol, University of Cincinnati Police Department, U.S. Air Force Office of Special Investigations, U.S. Internal Revenue Service, U.S. Postal Inspection Service, West Chester Police Department, and Cincinnati State Police Department.
First Assistant Vipal J. Patel, Assistant U.S. Attorney Dominick S. Gerace of the Southern District of Ohio, and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section prosecuted this case.
North Highlands Man Convicted of Possessing Child PornographyRead the Press Release
SACRAMENTO, Calif. — After a two–day trial, a federal jury found William Lamar Blessett, 39, of North Highlands, guilty Wednesday of one count of possession of child pornography, U.S. Attorney McGregor W. Scott announced.
According to evidence presented at trial, between mid-2016 and October 2017, Blessett possessed multiple electronic images of child pornography in a Dropbox cloud storage account and on devices including a laptop computer, two smartphones, and two tablet computers. Blessett knew these images showed minors engaged in sexually explicit conduct. Blessett accessed the pornographic images on the internet using links he obtained on the Kik instant messaging application. Blessett viewed the images and downloaded them to a Dropbox account that he owned and operated. Blessett then used the account to organize and view the images and transfer them to his electronic devices.
This case is the product of an investigation by the Sacramento County Sheriff’s Department, Central Investigative Division, Hi-Tech Crimes Bureau, the Sacramento Valley Internet Crimes Against Children Task Force, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Grant Rabenn and Amy Hitchcock and Special Assistant U.S. Attorney Robert Artuz are prosecuting the case.
Blessett is scheduled to be sentenced by U.S. District Judge William B. Shubb on February 19, 2019. Blessett faces a minimum statutory penalty of 10 years in prison and a maximum of 20 years in prison, as well as a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.