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Friday 19 October 2018
South Carolina Man Sentenced to 18 Months in Prison for Using Forged Deeds to Steal HomesRead the Press Release
WASHINGTON – Robert McCloud, 39, most recently of Warrenville, S.C., was sentenced today to 18 months in prison on a federal wire fraud charge stemming from a real estate scheme in which he and others used forged deeds and fake driver’s licenses to fraudulently transfer ownership of District of Columbia homes from the rightful owners.
The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
McCloud pled guilty in June 2018, in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Amit P. Mehta. In addition to his prison term, McCloud must pay restitution in an amount to be set later by the Court, as well as a forfeiture money judgment of $57,965. Following his prison term, he will be placed on three years of supervised release, the first six months of which is to be spent in home confinement. McCloud also will be required to perform 150 hours of community service. .
According to the government’s evidence, McCloud and others identified vacant or seemingly abandoned residential properties in the District of Columbia, and then prepared and filed forged deeds with the District of Columbia’s Recorder of Deeds transferring the properties into fictitious names. Next, they agreed to sell these properties to legitimate purchasers and arranged with unsuspecting title and escrow companies to finalize the sale and transfer ownership. Finally, they shared the fraudulently-obtained sales proceeds amongst themselves.
In his guilty plea, McCloud admitted taking part in two such fraudulent transactions within a two-month period of 2015, which generated a total of $580,482 in proceeds.
In the first, in April 2015, McCloud filed a forged Intra-Family deed with the District of Columbia’s Recorder of Deeds purporting to show that a home in the unit block of K Street NW was transferred from the true owners to a fictitious person. The true owners, who owned the home outright without any mortgage liens, did not sign the deed and did not give anyone permission to transfer their home. McCloud then appeared at the title company pretending to be the owner in order to close the transaction, presenting a California driver’s license with his photograph but in the name of the fictitious person, signing the settlement documents and selling the property. The title company sent by wire transfer $195,527 to a bank account opened in the name of the fictitious person. McCloud withdrew approximately $43,000 of the funds before the crime was discovered; the rest of the funds were returned to the title company.
In the second transaction, in May 2015, a conspirator arranged for a forged deed with respect to another home, in the 6400 block of 16th Street NW, to be filed with the Recorder of Deeds. As with the other property, the true owners, who owned the home outright without any mortgage liens, did not sign the deed and did not give anyone permission to sell the residence. In June 2015, McCloud appeared at the title company pretending to be the owner and using another fake California driver’s license with his photograph. He again signed the settlement documents in the fictitious name. The title company sent by wire transfer $384,955 to a bank account opened in the name of the fictitious person. McCloud was arrested the following day.
The true owners of the homes, who are elderly, have faced difficult and lengthy proceedings in order to retitle the properties in their own names. Unwinding the fraudulent transfer is merely the first step for the victims to reclaim their ownership and interest in the properties and each must now settle various outstanding bills.
Although McCloud received $580,482 in proceeds from his wire fraud scheme regarding both real properties, law enforcement seized a total of $369,990, which was later administratively forfeited. These forfeited funds, and the partial return of funds to the title company from the K Street transaction, reduced the amount owed in forfeiture to $57,965, which is the amount of the forfeiture money judgment.
In announcing the sentence, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Chief Newsham commended the work performed by those who investigated the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Diane Lucas and Stephanie Miller, former Paralegal Specialist Christopher Toms, Paralegal Specialist Aisha Keys, and Litigation Technology Specialist Leif Hickling. Finally, they commended the work of Assistant U.S. Attorney Virginia Cheatham, who prosecuted the case.
Smithtown, New York, Resident Arrested for Threatening Two United States SenatorsRead the Press Release
A criminal complaint was unsealed today in federal court in the Eastern District of New York charging Ronald DeRisi with threatening to murder and assault two United States Senators in retaliation for their support of the confirmation of Judge Brett Kavanaugh to the United States Supreme Court. DeRisi was arrested earlier today in Smithtown, Long Island, and his initial appearance is scheduled for this afternoon before United States Magistrate Judge Gary R. Brown at the United States Courthouse, 100 Federal Plaza, Central Islip, New York.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Matthew R. Verderosa, Chief, United States Capitol Police (USCP), announced the charges.
“Representative democracy cannot work if elected officials are threatened with death for simply doing their job,” stated United States Attorney Donoghue. “The First Amendment - the pinnacle of American achievement - protects debate, disagreement and dissent, not death threats. We and all those dedicated to the rule of law will not tolerate the use violence and threats of violence in attempts to prevail in political disputes.” Mr. Donoghue extended his grateful appreciation to the United States Capitol Police, the agency responsible for leading the investigation.
“I greatly appreciate the hard work of our investigators for addressing these threats so quickly, and that of the U.S. Attorney’s staff for prosecuting this case,” stated USCP Chief Verderosa.
As alleged in the complaint, beginning on September 27, 2018, DeRisi left more than 10 threatening voice-messages at the offices of two United States Senators (identified in the complaint as Senator-1 and Senator-2) regarding the nomination and confirmation of Judge Kavanaugh to the high court. The threats in the voice-messages were apparently made to discourage Senator-1 and Senator-2 from supporting Judge Kavanaugh’s nomination and/or as retaliation for having voted to confirm Judge Kavanaugh to the Supreme Court. The complaint details the content of some of the expletive-laced recorded voice-messages.
For example, in the first of two voice-messages left for Senator-1 on September 27, 2018, DeRisi said that he had a “present” for Senator-1, stating, in part, “It’s a nine millimeter. Side of your … skull ….” DeRisi concluded with “Yeah, Kavanaugh – I don’t think so.”
In a voice-message left for Senator-2 on October 6, 2018, DeRisi stated, in part, “… you better pray this guy don’t get in….” Less than an hour and a half later, DeRisi called Senator-2 again and left a message stating, in part, “I’m gonna get you.”
According to the complaint, DeRisi was identified through telephone records as well as by voice exemplars.
Following DeRisi’s arrest, USCP executed a search warrant and seized the cellular telephone used to leave the voice-messages detailed in the complaint.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Justina L. Geraci is in charge of the prosecution.
The Defendant:
RONALD DERISI
Age: 74
Smithtown, New YorkE.D.N.Y. Docket No. 18-MJ-998
Slidell Man Pleads Guilty to Conspiring to Sell Fentanyl and Heroin, and to Firearms ChargesRead the Press Release
NEW ORLEANS, LOUISIANA –U.S. Attorney Peter G. Strasser announced that KENNETH MARTIN, age 44, from Slidell, Louisiana, pleaded guilty to conspiring to distribute and to possesses with the intent to distribute 40 grams or more of fentanyl and 100 grams or more of heroin, and to possession of three firearms in furtherance of his drug trafficking.
MARTIN pleaded guilty to conspiring, from at least May 23, 2016, through August 2, 2017, to distribute 40 grams or more of fentanyl and 100 grams or more of heroin. MARTIN also pleaded guilty to distribution of heroin or fentanyl, to being a felon in possession of three firearms—a revolver, a semi-automatic pistol, and a shotgun—and to possessing those firearms in furtherance of the drug trafficking conspiracy.
For the drug charges, MARTIN faces a sentence of imprisonment of at least five years and up to forty years in prison. For the charge of possessing of a firearm in furtherance of the drug trafficking conspiracy, he faces at least five years and up to life in prison, all of which must be consecutive to his sentence for other counts.
Judge Nannette Jolivette Brown set sentencing for January 10, 2019.
U.S. Attorney Strasser praised the work of the Department of Homeland Security, the Drug Enforcement Administration, the Federal Bureau of Investigation, the St. Bernard Parish Sheriff’s Office, and the Jefferson Parish Sheriff’s Office. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.
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Skagway Man Indicted for the Illegal Export/Import of Walrus Ivory, Lacey Act ViolationsRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a Skagway man has been indicted on charges alleging smuggling of walrus ivory and the illegal export and import of walrus ivory in violation of the Lacey Act.
James Terrance Williams, 67, of Skagway, d.b.a. Inside Passage Arts, was named in the 10-count indictment charging him with smuggling walrus ivory from the United States, smuggling walrus ivory into the United States, illegal sale of smuggled ivory in violation of the Lacey Act, and Lacey Act false labeling.
Under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), walrus ivory cannot be exported out of the United States, nor imported into the United States, without a permit. The indictment alleges that, in October 2014 and March 2016, Williams illegally exported raw, unworked, walrus ivory tusks from Alaska to Indonesia for carving. He would then smuggle the carved walrus ivory back into the United States, disguising the illegal nature of the transportation by falsification of records, all in furtherance of illegal sales of the ivory.
This scheme involved numerous Lacey Act violations. Specifically, it is alleged that, in the years 2014, 2015, and 2016, Williams would then sell the carved walrus ivory as merchandise, knowing that it had been unlawfully transported into the United States from a foreign county. Furthermore, it is alleged that, Williams knowingly made or submitted false records and accounts for the importation, transportation, and sale of carved walrus ivory tusks.
If convicted, Williams faces terms of imprisonment of up to 10 years and fines up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
U.S. Fish and Wildlife Service (USFWS) Office of Law Enforcement (OLE) conducted the investigation leading to the indictment in this case. This case is being prosecuted by Deputy Criminal Chief Steven E. Skrocki.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Sisseton Man Charged with Aggravated Sexual Abuse of a Child Appears in Federal CourtRead the Press Release
United States Attorney Ron Parsons announced that a Sisseton, South Dakota, man has been indicted by a federal grand jury for aggravated sexual abuse of a child and for sexual abuse.
Joel Michael Max, age 29, was indicted on September 5, 2018. He appeared before U.S. Magistrate Judge William Gerdes on October 15, 2018, and pled not guilty to the Indictment.
According to the Indictment, between September 2016 and June 2018, in Roberts County, South Dakota, Max engaged in and attempted to engage in sexual acts with a child. The maximum penalties upon conviction for each count are as follows: life imprisonment, a $250,000 fine, or both; a mandatory minimum term of five (5) years, up to life, of supervised release; $100 special assessment for victim/witness fund; $5,000 assessment to the domestic trafficking fund; and restitution may be ordered.
The charges are merely accusations and Max is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Sisseton-Wahpeton Oyate Sioux Tribe’s Law Enforcement and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Max was remanded to the custody of the U.S. Marshals Service. A trial date has been set for December 18, 2018.
Sioux City Man Sentenced to Seven years in Federal Prison for Drug ConvictionRead the Press Release
A man who conspired to distribute methamphetamine throughout northwest Iowa was sentenced October 15, 2018, to 7 years in federal prison.
Joel Rodriguez, age 38, from Sioux City, Iowa, received the prison term after a May 10, 2018, guilty plea to one count of conspiracy to distribute methamphetamine and one count of possession with intent to distribute methamphetamine.
Evidence presented by the United States at the change of plea and sentencing hearings revealed that from on or about August 1, 2017, and continuing through May of 2018, in the Northern District of Iowa, and elsewhere, defendant Joel Rodriguez, and others reached an agreement or came to an understanding to distribute methamphetamine.
During his involvement in the conspiracy, defendant was responsible for the distribution of more than 50 grams of methamphetamine mixture or 5 grams or more of actual (pure) methamphetamine. On or about March 20, 2018, in the Northern District of Iowa, Rodriguez knowingly and intentionally, possessed with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine or 5 grams or more of actual (pure) methamphetamine.
Rodriguez previously had been convicted of a misdemeanor crime of domestic violence, namely, Domestic Abuse Assault Causing Bodily Injury, in the Iowa District Court for Buena Vista County, on or about May 21, 2012, in case number AGCR041504.
Rodriguez was sentenced in Sioux City by Chief United States District Court Judge Leonard T. Strand. Rodriguez was sentenced to 84 months’ imprisonment. A special assessment of $200.00 was imposed. He must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system.
Rodriguez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR18-4029.
This case was prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes. The case was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
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Sioux City Felon Sentenced to Six Years in Federal Prison for Unlawfully Possessing a FirearmRead the Press Release
A convicted felon who possessed a semi-automatic rifle and ammunition was sentenced on October 9, 2018, to 6 years in federal prison.
Kevin Adams, age 31, from Sioux City, Iowa, received the prison term after a May 8, 2108, guilty plea to being a felon in possession of a firearm and ammunition by a felon. Evidence presented at the plea and sentencing hearings revealed:
Before December 13, 2017, Kevin Adams, defendant, had been convicted of crimes punishable by imprisonment for a term exceeding one year, namely: (1) Burglary in the Third Degree, in the Iowa District Court for Woodbury County Iowa, on or about April 8, 2010, in case number FECR056051; (2) Possession of a Controlled Substance, in the District Court of Dakota County, Nebraska, on or about October 16, 2014, in case number CR-14-102, (3) Operating Motor Vehicle to Avoid Arrest, in the District Court of Dakota County, Nebraska, on or about October 16, 2014, in case number CR-14-103; (4-18) fourteen convictions of Receipt of Stolen Property, in the District Court of Dakota County, Nebraska, on or about August 10, 2016, in case number CR-16-51; and (19) a conviction for Theft/Receiving Stolen Property, in the District Court of Douglass County, Nebraska, on or about February 16, 2017, in case number CR-17-109.
On or about December 13, 2017, in the Northern District of Iowa, defendant Kevin Adams, did knowingly possess, in and affecting interstate or foreign commerce, a semi-automatic, Ruger, AR-15 rifle, serial number 854-09886 and ammunition.
The semi-automatic, Ruger, AR-15 rifle, serial number 854-09886 and ammunition were stolen and defendant knew they were stolen or had reasonable cause to believe they were stolen.
Neither the firearm nor the ammunition described above, that defendant Kevin Adams possessed in the Northern District Iowa, were manufactured in Iowa. Thus, they were transported to Iowa before defendant possessed them, and, thereby, effected interstate commerce.
Defendant Kevin Adams is a member of a gang, and his nickname is “Mischief.”
Defendant Kevin Adams was a methamphetamine user (and trafficker) who possessed the firearm and ammunition described above, in the Northern District Iowa, in connection with his felonious drug use in and around Sioux City, Iowa. In fact, he once fired another weapon at others.
The day of his illegal possession, of the firearm and ammunition defendant Kevin Adams had -- together with other -- stole a Mazada Protégé automobile from Nebraska and transported it into Iowa.
The day of his illegal possession, defendant Kevin Adams attempted to avoid police by fleeing first in, and then from, the stolen car and entering the home of another without permission of the home’s occupants (who were both terrified by Adams’ unexpected, unauthorized, armed, entry).
Adams was sentenced in Sioux City by Chief United States District Court Judge Leonard T. Strand. Adams was sentenced to 72 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Adams is being held in the United States Marshal’s custody until he can be transported to a federal prison.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR18-4006.
The case was prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes. This case was investigated by the Sioux City Police Department. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
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Sioux City Felon Sentenced to Seven Years in Federal Prison for Unlawfully Possessing a FirearmRead the Press Release
A convicted felon and domestic violence misdemeanant who illegally possessed a gun and ammunition was sentenced September 24, 2018, to seven in federal prison.
Alfredo Hernandez, age 31, from Sioux City, Iowa, received the prison term after a May 21, 2018, guilty plea to one count of possession of a firearm and ammunition by a felon
Before September 1, 2016, Alfredo Hernandez, defendant, had been convicted of (1) a crime punishable by imprisonment for a term exceeding one year, namely, Receiving Stolen Property, in Nebraska District Court for Dakota County, case number CR06-112, on or about January 10, 2007 and (2) two misdemeanor crimes of domestic violence, namely: (A) Domestic Abuse Assault, in the Iowa District Court for Woodbury County, on or about February 22, 2011, in case number SMSM465700 and (B) Domestic Abuse Assault, in the Iowa District Court for Woodbury County, on or about June 20, 2014, in case number SRCR088704.
On or about September 1, 2016, in the Northern District of Iowa, defendant Alfredo Hernandez, did knowingly possess, in and affecting interstate or foreign commerce, ammunition, namely, 2 rounds of CBC Group .38 special caliber ammunition.
On or about September 29, 2017, in the Northern District of Iowa, defendant Alfredo Hernandez, did knowingly possess, in and affecting interstate or foreign commerce, a firearm and ammunition, namely, a Smith and Wesson handgun Model SD40 VE, serial number FWH7528 and 7 rounds of NFCR and 2 rounds Winchester ammunition.
On or about December 6, 2017, in the Northern District of Iowa, defendant Alfredo Hernandez, did knowingly possess, in and affecting commerce, a firearm and ammunition, namely, an EIG Cutlery, model E-15, .22 caliber revolver and Remington .22 caliber ammunition.
Defendant Alfred Hernandez was a methamphetamine trafficker who possessed all of the firearms and ammunition described above, in the Northern District Iowa, in connection with his felonious drug trafficking activities in and around Sioux City, Iowa.
Hernandez was sentenced in Sioux City by Chief United States District Court Judge Leonard T. Strand. Hernandez was sentenced to 84 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Hernandez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-4001-LTS.
The case was prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes. This case was investigated by the Special Investigations Unit of the Sioux City Police Department. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Follow us on Twitter @USAO_NDIA.
Simpsonville Man Pleads Guilty in Federal Court to Conspiring to Possess with the Intent to Distribute Hundreds of Kilograms of Marijuana and to Possessing a Firearm in Furtherance of his Trafficking ActivityRead the Press Release
Greenville, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Andre Eaddy, age 37, of Simpsonville, South Carolina, pled guilty in federal court in Anderson. Eaddy pled guilty to conspiracy to possess with the intent to distribute marijuana, in violation of Title 21, United States Code, Section 846, and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c). United States District Judge Timothy Cain, of Anderson, accepted the plea and will impose a sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Eaddy coordinated with individuals in California and Colorado to transport kilogram quantities of marijuana for distribution in South Carolina. Eaddy made monthly trips, often with co-conspirators, to deliver large amounts of United States currency or to otherwise secure the purchase of marijuana from other co-conspirators. Mr. Eaddy would then have such purchases mailed back to South Carolina, to addresses associated with himself or various individuals, where such marijuana was then redistributed. Evidence indicates that Eaddy shipped over 1000 pounds of marijuana into South Carolina. Additionally, at a search of Eaddy’s residence, he was found in possession of a Keltec 9mm handgun, a Nodak Spud LLC rifle, a Taurus Judge .410 pistol, and a large amount of ammunition.
Ms. Lydon stated that the maximum penalty the defendant can receive is a fine of $8,000,000 and/or imprisonment of up to Life, plus a special assessment of $100.
The case was investigated by ICE - Homeland Security Investigations and the U.S. Postal Service. Assistant United States Attorney D. Josev Brewer of the Greenville office handled the case.
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Russian National Charged with Interfering in U.S. Political SystemRead the Press Release
A criminal complaint was unsealed in Alexandria, Virginia, today charging a Russian national for her alleged role in a Russian conspiracy to interfere in the U.S. political system, including the 2018 midterm election. Assistant Attorney General for National Security John C. Demers, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, and FBI Director Christopher Wray made the announcement after the charges were unsealed.
“Today’s charges allege that Russian national Elena Alekseevna Khusyaynova conspired with others who were part of a Russian influence campaign to interfere with U.S. democracy,” said Assistant Attorney General Demers. “Our nation is built upon a hard-fought and unwavering commitment to democracy. Americans disagree in good faith on all manner of issues, and we will protect their right to do so. Unlawful foreign interference with these debates debases their democratic integrity, and we will make every effort to disrupt it and hold those involved accountable.”
“The strategic goal of this alleged conspiracy, which continues to this day, is to sow discord in the U.S. political system and to undermine faith in our democratic institutions,” said U.S. Attorney Terwilliger. “This case demonstrates that federal law enforcement authorities will work aggressively to investigate and prosecute the perpetrators of unlawful foreign influence activities, and that we will not stand by idly while foreign actors obstruct the lawful functions of our government. I want to thank the agents and prosecutors for their determined work on this case.”
“This case serves as a stark reminder to all Americans: Our foreign adversaries continue their efforts to interfere in our democracy by creating social and political division, spreading distrust in our political system, and advocating for the support or defeat of particular political candidates,” said Director Wray. “We take all threats to our democracy very seriously, and we’re committed to working with our partners to identify and stop these unlawful influence operations. Together, we must remain diligent and determined to protect our democratic institutions and maintain trust in our electoral process.”
According to allegations in the criminal complaint, Elena Alekseevna Khusyaynova, 44, of St. Petersburg, Russia, served as the chief accountant of “Project Lakhta,” a Russian umbrella effort funded by Russian oligarch Yevgeniy Viktorovich Prigozhin and two companies he controls, Concord Management and Consulting LLC, and Concord Catering. Project Lakhta includes multiple components, some involving domestic audiences within the Russian Federation and others targeting foreign audiences in the United States, members of the European Union, and Ukraine, among others.
Khusyaynova allegedly managed the financing of Project Lakhta operations, including foreign influence activities directed at the United States. The financial documents she controlled include detailed expenses for activities in the United States, such as expenditures for activists, advertisements on social media platforms, registration of domain names, the purchase of proxy servers, and “promoting news postings on social networks.” Between January 2016 and June 2018, Project Lakhta’s proposed operating budget totaled more than $35 million, although only a portion of these funds were directed at the United States. Between January and June 2018 alone, Project Lakhta’s proposed operating budget totaled more than $10 million.
The alleged conspiracy, in which Khusyaynova is alleged to have played a central financial management role, sought to conduct what it called internally “information warfare against the United States.” This effort was not only designed to spread distrust towards candidates for U.S. political office and the U.S. political system in general, but also to defraud the United States by impeding the lawful functions of government agencies in administering relevant federal requirements.
The conspirators allegedly took extraordinary steps to make it appear that they were ordinary American political activists. This included the use of virtual private networks and other means to disguise their activities and to obfuscate their Russian origin. They used social media platforms to create thousands of social media and email accounts that appeared to be operated by U.S. persons, and used them to create and amplify divisive social and political content targeting U.S. audiences. These accounts also were used to advocate for the election or electoral defeat of particular candidates in the 2016 and 2018 U.S. elections. Some social media accounts posted tens of thousands of messages, and had tens of thousands of followers.
The conspiracy allegedly used social media and other internet platforms to address a wide variety of topics, including immigration, gun control and the Second Amendment, the Confederate flag, race relations, LGBT issues, the Women’s March, and the NFL national anthem debate. Members of the conspiracy took advantage of specific events in the United States to anchor their themes, including the shootings of church members in Charleston, South Carolina, and concert attendees in Las Vegas; the Charlottesville “Unite the Right” rally and associated violence; police shootings of African-American men; as well as the personnel and policy decisions of the current U.S. presidential administration.
The conspirators’ alleged activities did not exclusively adopt one ideological view; they wrote on topics from varied and sometimes opposing perspectives. Members of the conspiracy were directed, among other things, to create “political intensity through supporting radical groups” and to “aggravate the conflict between minorities and the rest of the population.” The actors also developed playbooks and strategic messaging documents that offered guidance on how to target particular social groups, including the timing of messages, the types of news outlets to use, and how to frame divisive messages.
The criminal complaint does not include any allegation that Khusyaynova or the broader conspiracy had any effect on the outcome of an election. The complaint also does not allege that any American knowingly participated in the Project Lakhta operation.
The investigative team received exceptional cooperation from private sector companies, such as Facebook and Twitter.
Assistant U.S. Attorney Jay V. Prabhu and Special Assistant U.S. Attorney Alex Iftimie are prosecuting the case, with assistance of Trial Attorneys Matthew Y. Chang and Patrick T. Murphy of the National Security Division’s Counterintelligence and Export Control Section.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-mj-464.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty beyond a reasonable doubt in a court of law.
Russian National Charged with Interfering in U.S. Political SystemRead the Press Release
ALEXANDRIA, Va. – A criminal complaint was unsealed here today charging a Russian national for her alleged role in a Russian conspiracy to interfere in the U.S. political system, including the 2018 midterm election.
“The strategic goal of this alleged conspiracy, which continues to this day, is to sow discord in the U.S. political system and to undermine faith in our democratic institutions,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This case demonstrates that federal law enforcement authorities will work aggressively to investigate and prosecute the perpetrators of unlawful foreign influence activities whenever feasible, and that we will not stand by idly while foreign actors obstruct the lawful functions of our government. I want to thank the agents and prosecutors for their determined work on this case.”
According to allegations in the criminal complaint, Elena Alekseevna Khusyaynova, 44, of St. Petersburg, Russia, served as the chief accountant of “Project Lakhta,” a Russian umbrella effort funded by Russian oligarch Yevgeniy Viktorovich Prigozhin and two companies he controls, Concord Management and Consulting LLC, and Concord Catering. Project Lakhta includes multiple components, some involving domestic audiences within the Russian Federation and others targeting foreign audiences in the United States, members of the European Union, and Ukraine, among others.
“Today’s charges allege that Russian national, Elena Alekseevna Khusyaynova, conspired with others who were part of a Russian influence campaign to interfere with U.S. democracy,” said Assistant Attorney General Demers. “Our nation is built upon a hard-fought and unwavering commitment to democracy. Americans disagree in good faith on all manner of issues, and we will protect their right to do so. Unlawful foreign interference with these debates debases their democratic integrity, and we will make every effort to disrupt it and hold those involved accountable.”
Khusyaynova allegedly managed the financing of Project Lakhta operations, including foreign influence activities directed at the United States. The financial documents she controlled include detailed expenses for activities in the United States, such as expenditures for activists, advertisements on social media platforms, registration of domain names, the purchase of proxy servers, and “promoting news postings on social networks.” Between January 2016 and June 2018, Project Lakhta’s proposed operating budget totaled more than $35 million, although only a portion of these funds were directed at the United States. Between January and June 2018 alone, Project Lakhta’s proposed operating budget totaled more than $10 million.
“This case serves as a stark reminder to all Americans: Our foreign adversaries continue their efforts to interfere in our democracy by creating social and political division, spreading distrust in our political system, and advocating for the support or defeat of particular political candidates,” said Director Wray. “We take all threats to our democracy very seriously, and we’re committed to working with our partners to identify and stop these unlawful influence operations. Together, we must remain diligent and determined to protect our democratic institutions and maintain trust in our electoral process.”
The alleged conspiracy, in which Khusyaynova is alleged to have played a central financial management role, sought to conduct what it called internally “information warfare against the United States.” This effort was not only designed to spread distrust towards candidates for U.S. political office and the U.S. political system in general, but also to defraud the United States by impeding the lawful functions of government agencies in administering relevant federal requirements.
The conspirators allegedly took extraordinary steps to make it appear that they were ordinary American political activists. This included the use of virtual private networks and other means to disguise their activities and to obfuscate their Russian origin. They used social media platforms to create thousands of social media and email accounts that appeared to be operated by U.S. persons, and used them to create and amplify divisive social and political content targeting U.S. audiences. These accounts also were used to advocate for the election or electoral defeat of particular candidates in the 2016 and 2018 U.S. elections. Some social media accounts posted tens of thousands of messages, and had tens of thousands of followers.
The conspiracy allegedly used social media and other internet platforms to address a wide variety of topics, including immigration, gun control and the Second Amendment, the Confederate flag, race relations, LGBT issues, the Women’s March, and the NFL national anthem debate. Members of the conspiracy took advantage of specific events in the United States to anchor their themes, including the shootings of church members in Charleston, South Carolina, and concert attendees in Las Vegas; the Charlottesville “Unite the Right” rally and associated violence; police shootings of African-American men; as well as the personnel and policy decisions of the current U.S. presidential administration.
The conspirators’ alleged activities did not exclusively adopt one ideological view; they wrote on topics from varied and sometimes opposing perspectives. Members of the conspiracy were directed, among other things, to create “political intensity through supporting radical groups” and to “aggravate the conflict between minorities and the rest of the population.” The actors also developed playbooks and strategic messaging documents that offered guidance on how to target particular social groups, including the timing of messages, the types of news outlets to use, and how to frame divisive messages.
The criminal complaint does not include any allegation that Khusyaynova or the broader conspiracy had any effect on the outcome of an election. The complaint also does not allege that any American knowingly participated in the Project Lakhta operation.
The investigative team received exceptional cooperation from private sector companies, such as Facebook and Twitter.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, John C. Demers, Assistant Attorney General for National Security, and Christopher Wray, Director of the FBI, made the announcement after the charges were unsealed. Assistant U.S. Attorney Jay V. Prabhu and Special Assistant U.S. Attorney Alex Iftimie are prosecuting the case, with assistance of Trial Attorneys Matthew Y. Chang and Patrick T. Murphy of the National Security Division’s Counterintelligence and Export Control Section.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-mj-464.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Rockford Man Sentenced to More Than 12 Years for Armed Robbery of Cell Phone StoreRead the Press Release
ROCKFORD — A Rockford man was sentenced today by U.S. District Judge Philip G. Reinhard to a total of 150 months in federal prison for the robbery of the U.S. Cellular store, 6430 E. State St., in Rockford, on June 1, 2016, and using a firearm during a violent crime.
McKINLEY HOARDE, III, 23, was sentenced to 66 months’ imprisonment for the robbery, and was ordered to serve a consecutive term of 84 months’ imprisonment for using a firearm during a crime of violence. After serving his sentence in federal prison, Hoarde will be placed on five years of supervised release. Hoarde pleaded guilty to the charges on July 9, 2018.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and Jeffrey Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The government is represented by Assistant U.S. Attorney Margaret J. Schneider.
Also charged is RICKY WOODS, 22, of Rockford, who on Sept. 27, 2018, pleaded guilty to the robbery and the gun charge.
Both men admitted that after arriving at the U.S. Cellular store they pulled out and pointed their guns at the only employee at the store. One of them grabbed the employee by the shirt collar and pulled the employee to the back room of the store, where they ordered the employee to the ground. Hoarde and Woods then took cellular phones from the store and removed electrical equipment from the wall in an attempt to disable the security system, before running out of the store.
Sentencing for Woods is set for Dec. 12, 2018 at 9:30 a.m. He faces a maximum sentence of 20 years’ imprisonment for the robbery, and a mandatory minimum sentence of seven years and a maximum sentence of life imprisonment for the firearms offense. The sentence imposed for the firearms offense is required to be consecutive to any other sentence imposed. Each charge against Woods also carries a potential fine of up to $250,000.
Rochester Man Sentenced on Gun and Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Laquan J. Simmons, 26, of Rochester, NY, who was convicted of being a felon in possession of a firearm and ammunition, and possessing of cocaine with the intent to distribute, was sentenced to 57 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Katelyn Hartford, who handled the case, stated that on June 8, 2017, on Wright Terrace in Rochester, Simmons possessed approximately 12 baggies of crack cocaine, with the intent to distribute it to others. The defendant also possessed a loaded 9mm semiautomatic handgun in his pocket. Simmons was previously convicted in 2015 of Criminal Sale of a Controlled Substance in the 5th Degree, a felony, and is legally prohibited from possessing a firearm.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief Mark Simmons, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict.
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Reserve Man Sentenced to 26 Months in Prison for Cocaine ConspiracyRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that TRAVIS CARTER, age 39, of Reserve, was sentenced yesterday for charges relating to narcotics trafficking.
CARTER pleaded guilty on January 4, 2018, to conspiring with others to distribute at least 28 grams of cocaine base (“crack”). CARTER also pled guilty to retaliating against a witness for information provided to law enforcement relating to the commission of a federal offense.
Judge Jane Triche Milazzo sentenced CARTER to 26 months in the Bureau of Prisons, as well as 4 years of supervised release following the term of imprisonment.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration and the St. John the Baptist Parish Sheriff’s Office. Assistant U.S. Attorney Nicholas D. Moses is in charge of the prosecution.
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Rapid City Man Charged with Firearm CrimeRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of an Unregistered Firearm.
Darwin Tallman, age 30, was charged on September 18, 2018. He appeared before U.S. Magistrate Judge Daneta Wollmann on October 9, 2018, and pled not guilty to the charge.
The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Tallman knowingly being in possession of a Marlin, model 60, .22 caliber semi-automatic rifle that had a barrel of less than 16 inches which was not registered to him. The charge is merely an accusation and Tallman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Tallman was detained pending trial. A trial date has not been set.
Plano Man Sentenced to 7 Years for Firearms ViolationRead the Press Release
PLANO, Texas – A 70-year-old Plano, Texas man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown.
Alfred Pick pleaded guilty on May 22, 2018, to a charge of possession of a firearm while an unlawful user of a controlled substance and was sentenced, pursuant to an agreement by all parties, to 87 months in federal prison on Oct. 17, 2018 by U.S. District Judge Marcia Crone.
According to information presented to the court, Plano police were called to an area hospital on Oct. 2, 2017, regarding a belligerent individual. Officers encountered Pick, who was upset about the treatment of a relative in the hospital, and had told medical staff and others, that he intended to return to the hospital with a firearm and “would shoot [hospital staff] in their kneecaps and elbows first and let them bleed.” Pick was taken into custody and delivered to mental health authorities for an evaluation.
As a result of the incident at the hospital, agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) opened an investigation that eventually received information that Pick possessed weapons and narcotics at his home. Agents obtained a search warrant and found over 2 grams of cocaine and over 10 grams of marijuana in Pick’s residence. Agents also discover 14 firearms at Pick’s residence, including a fully automatic machine gun with an obliterated serial number that witnesses later told investigators that Pick had admitted he stole while he served in the military.
The sentencing court also received information that Pick had repeatedly been cited for criminal trespass at various area hospitals for his aggressive behavior, involving both verbal and physical abuse of medical staff and impeding staff. The court also heard that police had been called on two prior occasions in 2014 to restaurant parking lots where patrons reported that Pick had been threatening and brandished handguns in encounters with him.
Additional information presented at sentencing revealed Pick’s daughter reported to investigators that Pick had sexually abused her from the time she was 4-years-old until the age of 17, taking nude photographs of her to, as he put it, “chart her growth” and sexually assaulting her.
Finally, the sentencing court received evidence that Pick threatened the Federal Magistrate Judge who detained him indicating he would fly his plane with explosives to kill the Judge and ATF agents who investigated his case. Pick also stated that he would “have taught the Las Vegas shooter a thing or two,” referring to the Oct. 1, 2017 mass shooting.
“Obviously, there was a lot more to the sentence that was received – a sentence that Mr. Pick and his lawyer agreed to – than a single gun with a missing serial number,” said U.S. Attorney Joseph D. Brown. “Although Mr. Pick was a decorated veteran, he would use that status routinely to try to excuse his repeated criminal behavior. This was also not a mental health issue. It became a public safety issue.”
“The people concerned for Mr. Pick’s safety when he honorably served our nation were the same people most-concerned for his and the public’s safety throughout our investigation,” stated ATF Special Agent in Charge Jeffrey C. Boshek II. “I applaud those that recognized and reported Mr. Pick’s abuse of controlled substances, amplified threats and intensified displays of physical and psychological aggression as well as the decisive action of the ATF Agents.”
In addition to the charge for which he was convicted, Pick was originally charged with two other violations – possession of an unregistered firearm and possession of a firearm with an obliterated serial number. As part of Pick’s agreement to plead guilty and agreement as to the term of his sentence, these charges were dismissed.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Tracey Batson.
Owner of Financial Services Business Sentenced to PrisonRead the Press Release
ALEXANDRIA, Va. – An Annandale man was sentenced today to nine years in prison for conspiracy, aiding in the preparation of false tax returns, mail and wire fraud.
According to court records and evidence presented at trial, Jose Manlapaz, 55, owned and operated a tax preparation business named JBM Financial Services or JBM Financial Group in Falls Church. Between 2007 and 2017, Manlapaz prepared thousands of false tax returns for his clients by adding false or inflated items, including education credits, childcare expenses, and fake business expenses. Manlapaz knew that the items he added to client returns would cause many clients to be audited, and set up a document mill in the Philippines called TMendoza Accounting Services to fabricate fake receipts and tax forms that he could submit on behalf of his clients to the IRS. Manlapaz made money by charging higher fees for getting clients higher refunds and for preparing fraudulent responses to IRS audit notices. After the IRS-CI searched JBM in 2013, and up until a second search of JBM in 2017, Manlapaz and JBM kept preparing false tax returns, but removed his preparer information so it looked like his clients were submitting the returns themselves. A search of his residence and two safe deposit boxes in 2017 resulted in the seizure of over $1.3 million in cash and valuables, including Rolex watches. The investigation also revealed that Manlapaz had also wired approximately $1.5 million to the Philippines during the conspiracy.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Kelly R. Jackson, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorneys Katherine L. Wong and Kimberly R. Pedersen prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-115.
Owner of Jacksonville Tax Return Preparation Firm Sentenced to Federal PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Adrian George (41, Jacksonville) to 15 months in federal prison for conspiring to commit wire fraud and conspiring to aid in the preparation and presentation of fraudulent tax returns to the IRS, as well as five additional counts of aiding in the preparation and presentation of fraudulent tax returns.
George had been found guilty by a federal jury on April 11, 2018.
According to court documents, George was the owner and operator of Professional Tax Service South, LLC, a tax preparation firm in Jacksonville. George taught his employees various ways to include false information in tax returns to ensure that his clients received large tax refunds. Acting at George’s direction, the employees offered to prepare fraudulent or “boosted” returns for clients, in exchange for cash payments from the proceeds of the resulting illegitimate tax refunds. After being in business for less than two years, George and his employees had prepared and filed 748 tax returns for clients, 100% of which requested refunds. According to testimony at trial, typically, only 62% percent of tax returns filed nationwide request refunds. The tax returns prepared and filed by George and his employees requested refunds totaling more than $3.2 million.
This case was investigated by IRS – Criminal Investigation. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
October Grand JuryRead the Press Release
United States Attorney Joe Kelly announced the federal Grand Jury for the District of Nebraska has returned 15 indictments charging 17 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Macario Ahilon-Lorenzo, age 40, of Lexington, Nebraska, is charged with illegal reentry after deportation from on or about September 21, 2018, and on or about September 24, 2018. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Eulogio Banda Chavez, age 27, of Omaha, Nebraska, is charged with illegal reentry after deportation on or about June 19, 2018, following an aggravated felony conviction. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Alyas Bertucci, age 18, Taylor Morris, age 20, and Dajuan Parker, age 20, are charged with assault in Indian Country resulting in serious bodily injury on or about August 18, 2018. The maximum possible penalty if convicted is 10 years’ imprisonment each, a $250,000 fine each, a 3-year term of supervised release each, and a $100 special assessment each.
* Gustavo Chavez Rivera, age 26, of Bellevue, Nebraska, is charged with illegal reentry after deportation from on or about September 20, 2018. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Dawn D. Clover, age 53, of Lincoln, Nebraska, is charged in a six-count Indictment. Counts 1-5 charges the defendant with Wire Fraud on or about November 3, 2014, and continuing through at least on or about October 3, 2017. The Indictment alleges Clover defrauded victims of social security disability payments causing losses of $34,622.86. Count 6 charges the defendant with conversion of another’s social security benefits, beginning in or around July, 2013 and continuing without interruption until in or around October, 2017. The maximum possible penalty if convicted of Counts 1-5 is 20 years’ imprisonment for each count, a $250,000 fine for each count, a 3-year term of supervised release for each count, and a $100 special assessment for each count. The maximum possible penalty if convicted of Count 6 is 5 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Donald James Cox, Jr., age 42, of Lincoln, Nebraska, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with possession with intent to distribute 50 grams or more of methamphetamine (actual) beginning on or about January 1, 2018, to on or about August 6, 2018. The maximum possible penalty if convicted is 10 years’ imprisonment, not more than $10,000,000 fine, not less than a 5-year term of supervised release, and a $100 special assessment. Count II of the Indictment charges the defendant with use of a firearm during a drug trafficking offense on or about August 6, 2018. The maximum possible penalty if convicted is 5 years’ consecutive imprisonment, $250,000 fine, a 3-year term of supervised release, and $100 special assessment. Count III of the Indictment charges the defendant with felon in possession of a firearm on or about August 6, 2018. The maximum possible penalty if convicted is 10 years’ imprisonment, $250,000 fine, a 3-year term of supervised release, and $100 special assessment. There is also an allegation to forfeit United States currency seized on or about August 6, 2018.
* Tristen Lasley, age 21, is charged with strangulation in Indian Country resulting in bodily injury on or about September 10, 2018. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Jose Luna-Reyes, age 35, is charged with illegal reentry after deportation from on or about October 10, 2018. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Tomas Mendoza-Hernandez, age 53, of Omaha, Nebraska, is charged with illegal reentry after deportation following a felony conviction on or about September 28, 2018. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Brittany Newton, age 25, of Omaha, Nebraska, is charged with obtaining Oxycodone by fraud on or about August 20, 2018. The maximum possible penalty if convicted is 4 years’ imprisonment, $250,000 fine, 1-year term of supervised release, and a $100 special assessment.
* Luis Alberto Olvera Garcia, age 35, of Omaha, Nebraska, is charged with illegal reentry after deportation from on or about September 10, 2018. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Cesar Pereira Castro, age 30, is charged with illegal reentry after deportation from on or about September 28, 2018. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Seth Perina, age 42, of Fremont, Nebraska, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with possession with intent to distribute 5 grams or more of methamphetamine (actual) beginning on or about September 5, 2018, to on or about September 11, 2018. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, 4-year term of supervised release, and a $100 special assessment. Count II of the Indictment charges the defendant with use of a firearm during a drug trafficking offense on or about September 11, 2018. The maximum possible penalty if convicted is Life consecutive imprisonment, $250,000 fine, a 5-year term of supervised release, and $100 special assessment. There is also an allegation to forfeit United States currency seized on or about September 11, 2018.
* Oscar Pineda-Medina, age 43, of Grand Island, Nebraska, is charged with illegal reentry after deportation following a felony conviction on or about October 3, 2018. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Elideth Ramirez Cruz, age 27, of Omaha, Nebraska, is charged with illegal reentry after deportation following a felony conviction on or about September 18, 2018. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Osvaldo Ramirez Hernandez, age 41, of Fremont, Nebraska, is charged with illegal reentry after deportation following a felony conviction on or about October 10, 2018. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Gustavo Valle, age 35, of Lincoln, Nebraska, is charged with illegal reentry after deportation from on or about September 20, 2018. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Frederick Alan Voight, of Richmond, Texas, is charged in a 20-count Indictment. Counts 1-18 charges the defendant with Mail Fraud on or about Jun 25, 2012, and continuing through at least on or about May 3, 2015. Counts 19-20 charges the defendant with money laundering, beginning in or around February 22, 2013, and continuing until in or around February 28, 2013. The maximum possible penalty if convicted of Counts 1-18 is 20 years’ imprisonment for each count, a $250,000 fine for each count, a 3-year term of supervised release for each count, and a $100 special assessment for each count. The maximum possible penalty if convicted of Counts 19-20 is 10 years’ imprisonment for each count, a $2,000,000 fine for each count, a 3-year term of supervised release for each count, and a $100 special assessment for each count.
Ocala Man Sentenced for Conspiracy to Commit Wire Fraud and Filing A False Tax ReturnRead the Press Release
Ocala, Florida – U.S. District Judge Roy Dalton, Jr. has sentenced Donald Edward Smith to five years in prison for conspiracy to commit wire fraud and to three years in prison for filing a false federal income tax return, the sentences to be served concurrently. In addition, the Court ordered Smith to pay $3,632,880.95 in restitution to his victims, including $245,753 to the IRS for the federal income tax violation. The Court has also ordered forfeited two pieces of real property and the sales proceeds from a third piece of real property. The Court also entered a forfeiture judgment in the amount of $1,450,000.
According to court documents, from approximately September 2011, through September 2015, Smith conspired to engage in a wire fraud scheme to defraud individuals who were interested in investing in green technology and other projects. Smith promised victims lucrative returns, as well as access to hundreds of millions of dollars in financing, but the funds and/or loans never materialized. Further, Smith knowingly failed to report as income the fraudulent proceeds he received from the investor/victims for the year 2012.
Smith also participated in a separate scheme involving investments in a purported Styrofoam recycling business.
“While our primary responsibility is to ensure the integrity of our nation’s tax system, IRS Criminal Investigation Special Agents are also committed to maintaining the health of our economy by protecting taxpayers from those who might defraud aspiring investors,” stated Acting Special Agent in Charge Andy Tsui. “We will continue to lend our unique financial investigative skills to joint efforts such as this one to bring to justice scofflaws like Mr. Smith. We warn would-be investors to exercise due diligence when selecting an investment and to remember that an opportunity that sounds too good to be true, probably is.”
This case was investigated by the IRS – Criminal Investigation, the FBI, and the Office of Financial Regulation – Bureau of Financial Investigations for the State of Florida. It was prosecuted by Assistant United States Attorneys Frank Talbot and Bonnie Glober.
O.C. Man Sentenced to 6½ Years in Federal Prison for Running Three Investment Schemes that Cost Victims $7.4 MillionRead the Press Release
SANTA ANA, California – A Laguna Beach man was sentenced today to 78 months in federal prison for his conviction in a wire fraud case for stealing $7.4 million from the victims of three separate investment fraud schemes.
Peter Heinrich Conrad Reinert, 63, was sentenced by United States District Judge Josephine L. Staton, who also ordered him to pay $7,360,855 in restitution.
When he pleaded guilty in March to one count of wire fraud, Reinert admitted running three separate schemes. In one scam run through the Irvine-based Fazer Technologies, Reinert claimed he was developing, among other things, a product that could increase gas mileage for any car up to 150 miles per gallon. In another fraud, this one related to Global Encryption Imaging Corporation, Reinert claimed the company was developing, among other things, anti-counterfeiting technology to be used on state-issued identification documents. In the third scheme, Reinert told victims that another company he ran, Income from Waste Corporation, was developing a technology to convert used tires into oil.
Through the various false claims, Reinert induced victims to send him approximately $7.4 million. These victims came from around the nation and included farmers from Missouri.
As part of the schemes, to gain legitimacy with victims, Reinert falsely claimed to be a United States Secret Service agent and an intelligence officer in the United States Marines. Reinert’s “use of the trust the victims placed in Secret Service agents was particularly ironic since the Secret Service was the agency that investigated [Reinert] in the late 1990s for his prior federal felonies related to identity theft,” prosecutors wrote in court documents.
“He makes up stories about who he is to get what he wants,” Judge Staton said in court today.
Reinert also falsely claimed that companies such as Tesla and General Electric were interested in Fazer’s product – and that Tesla had stolen Fazer’s technology and used it in their cars.
Noting that Reinert made false statements about his German citizenship to a court official who was preparing a pre-sentence report, Judge Staton said his claim of American citizenship was “riddled with more holes than Swiss cheese.”
Reinert ran the schemes from 2010 through April 2015. Instead of using the victims’ money to develop the purported technologies, Reinert used the money to pay for various expenses, including luxury automobiles, sales commissions, purchases at Apple’s iTunes store, and wire transfers to an account in Poland.
As part of his plea agreement, Reinert agreed to forfeit approximately $300,000 that the FBI had seized in 2015, as well as a 2009 Mercedes Benz S63 AMG and a 2011 Mercedes Benz.
The investigation into Reinert was conducted by the Federal Bureau of Investigation and IRS Criminal Investigation. The Department of Defense, the United States Secret Service, U.S. Customs and Border Protection, the State Department, and the Laguna Beach Police Department provided substantial assistance.
The case is being prosecuted by Assistant United States Attorneys Vibhav Mittal and Daniel Lim of the Santa Ana Branch Office.
Northshore Mortgage Broker Pleads Guilty to Making False Statements to the Social Security AdministrationRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JAMES BRIANT, age 68, a resident of Covington, Louisiana and mortgage broker and senior loan officer at Alpha Mortgage, LLC pleaded guilty yesterday to making false statements to the Social Security Administration in order to obtain Social Security Disability Payments.
According to the Bill of Information, from on or about June 10, 2010, the defendant, JAMES BRIANT, applied for disability benefits from the Social Security Administration, a department and agency of the United States, for a back disorder and heart disease. Thereafter, in December of 2011, he began receiving monthly disability benefits of approximately, $2,370, based on the representation that he was unable to work. During the time he received disability payments, the defendant, JAMES BRIANT, had an obligation to report any income he made to the SSA.
At a time unknown, but prior to September 2012, the defendant, JAMES BRIANT, began working as a loan officer and mortgage broker at Alpha Mortgage, L.L.C, earning a salary. He worked there through in or around June 2017 and never reported to the SSA that he was working or earned any income. On or about December 15, 2015, BRIANT completed a Social Security Disability form and submitted it to the SSA, an SSA-Form 795, “Statement of Claimant.” In this statement, he signed and certified, under penalty of perjury that he had not worked since 2011, knowing full well that this statement was materially false, fictitious, and fraudulent.
BRIANT is scheduled to be sentenced on January 24, 2019 before United States District Court Judge Barry W. Ashe. He faces a statutory maximum sentence of 5 years in prison, a term of 3 years of supervised release, restitution of $134,194 and a special assessment of 100.
U.S. Attorney Strasser commended special agents of the Social Security Administration, Office of Inspector General, who investigated the case and Assistant U.S. Attorney Sharan Lieberman, who is in charge of the prosecution.
Murfreesboro Man Charged with Embezzling More Than $1 Million from Lasko ProductsRead the Press Release
NASHVILLE, Tenn. – October 19, 2018 –Randall Griffin, 46, of Murfreesboro, Tennessee, was charged yesterday with mail fraud, for operating an embezzlement scheme, during which he stole more than $1 million from his former employer, Lasko Products, LLC., announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
A criminal information filed yesterday charged Griffin with embezzling $1,006,293.58 through a scheme that began in 2009 and continued until August 2017, while Griffin was employed as a maintenance technician for Lasko Products, a home appliance manufacturing and distribution company located in Franklin, Tennessee.
According to the charging document, Griffin carried out the scheme by creating and falsifying purchase orders and invoices for equipment parts, causing Lasko checks to be sent to a series of post office boxes that he opened under various false business names. Griffin created fake business names that closely resembled legitimate vendors with whom Lasko conducted business. Griffin also created bank accounts for each business and ultimately deposited the funds sent to these accounts into his personal bank account.
If convicted, Griffin faces a sentence of up to 20 years in prison, a $250,000 fine and restitution of the full amount. The government also seeks forfeiture of any and all proceeds derived from the scheme.
This case was investigated by the FBI and the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Sara Beth Myers.
The charge is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
Mobile County Man Receives 188 Month Sentence for Possession of a Firearm After Felony ConvictionRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Devon Deshaun Lawson a resident of Mobile, Alabama was sentenced to 188 months incarceration for possession of a firearm after being convicted of a felony of Distribution of a Controlled Substance in January 2008.
On June 7, 2018, Lawson pled guilty to the offense of felon in possession of a firearm. According to a factual statement Lawson signed in connection with his guilty plea, on about August 31, 2017, Mobile County Sheriff’s Department deputies executed a traffic stop when they came upon a vehicle stopped in the middle of the Louis Tillman and Grand Webb Roads in Mobile County, Alabama. When the deputies turned on their blue lights, the vehicle in the middle of the road drove off and pulled into a residence. After the vehicle came to a stop, the deputies smelled marijuana and conducted a search of the vehicle. The deputies retrieved drugs and recovered two guns. The guns were a .44 special revolver and a .380 handgun, both of which had been reported stolen, along with cash totaling $1,000. Lawson admitted to being a convicted felon and knew he was not supposed to own or possess firearms.
Special Agents of the Federal Bureau of Investigations along with deputies of the Mobile, County, Alabama 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, Michael D. Anderson.
Missoula man sentenced for meth possessionRead the Press Release
MISSOULA – Missoula resident Bryce David Koch, 31, was sentenced today to 10 years in prison to be followed by 5 years of supervised release for conviction in a methamphetamine trafficking case. Koch pleaded guilty to possession with intent to distribute methamphetamine. Chief U.S. District Judge Dana L. Christensen presided at the sentencing.
In October 2017, law enforcement officers received information that Koch was going to Washington and purchasing methamphetamine to bring back for distribution in the Missoula area. On October 30, 2017, the Montana Highway Patrol stopped Koch in his vehicle near Frenchtown. A search warrant later revealed the presence of 326 grams of pure methamphetamine, which converts to more than 2,600 dosages that would have otherwise reached users in Montana.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the Missoula High Intensity Drug Trafficking Area Task Force.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
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Mission Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance, Methamphetamine, was sentenced on October 15, 2018, by U.S. District Judge Roberto A. Lange.
Wiyaka Rochelle Guerue, a/k/a Feather Rochelle Guerue, age 32, was sentenced to 18 months in federal prison, followed by 4 years of supervised release, a $1,000 fine, forfeiture of $227 in U.S. currency, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Guerue was indicted by a federal grand jury on October 17, 2017. She pled guilty on July 24, 2018.
Between January 1, 2016, and October 17, 2017, Guerue knowingly and intentionally conspired with others to distribute methamphetamine in the District of South Dakota.
Guerue received distributable quantities of methamphetamine and distributed the methamphetamine in South Dakota. The individuals who provided methamphetamine knew that she intended to engage in further distribution. Additionally, Guerue admitted she allowed several other individuals to distribute large quantities of methamphetamine from her Sunrise Apartment in Rosebud, South Dakota.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Guerue was immediately turned over to the custody of the U.S. Marshals Service.
Minnesota Man Pleads Guilty of Failure to Register as a Sex OffenderRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that ERIC EDWARD ARMSTRONG, age 31, of Anoka, Minnesota, pleaded guilty yesterday before U.S. District Court Judge Barry W. Ashe to one count of failure to register as a sex offender under the federal Sex Offender Registration and Notification Act (SORNA).
ARMSTRONG faces a maximum term of 10 years in prison and a $250,000.00 fine. He also faces a term of supervised release of between 5 years and life. Judge Ashe set his sentencing for January 24, 2019.
U.S. Attorney Strasser praised the work of the United States Marshals Service, the Orleans Parish Sheriff’s Office, the New Orleans Police Department, and the Louisiana State Police in this matter. He extended his thanks to the Orleans Parish District Attorney’s Office for their assistance. Assistant United States Attorney Matthew R. Payne is in charge of prosecution.
Michigan Man Sentenced to 60 Months in Prison for Heroin DistributionRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of RAYMOND ANTHONY POOLE, 44, to 60 months in prison for distributing heroin on the Leech Lake Indian Reservation and surrounding areas. POOLE pleaded guilty to one count of conspiracy on August 24, 2018, and was sentenced today before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota.
According to his guilty plea and documents filed in court, between April 2016 and March 2017, POOLE conspired with other individuals to distribute approximately 227 grams of heroin between Minneapolis, Bemidji, Cass Lake, Minnesota, and on the Leech Lake Indian Reservation, areas that have been significantly affected by heroin.
This case is the result of an investigation conducted by the Leech Lake Tribal Police Department, the Paul Bunyan Drug Task Force, the Minnesota Bureau of Criminal Apprehension, the Bureau of Indian Affairs, the United States Postal Inspection Service, the Headwaters Safe Trails Task Force, and the Hennepin County Violent Offender Task Force.
Assistant United States Attorney Bradley M. Endicott prosecuted the case.
Defendant Information:
RAYMOND ANTHONY POOLE, 44
Detroit, Mich.
Convicted:
- Conspiracy to distribute heroin, 1 count
Sentenced:
- 60 months in prison
- Four years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Mexican National Pleads Guilty to Being an Illegal Alien in Possession of a Firearm and Possessing Fraudulent Immigration DocumentsRead the Press Release
BOSTON - A Mexican national illegally residing in Springfield pleaded guilty yesterday to firearms and immigration crimes.
Manreal Altamirano-Navarro, whose true age is unknown, pleaded guilty to one count of possession of a firearm by a person unlawfully in the United States and two counts of possession of fraudulent immigration documents. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Jan. 18, 2019.
On Dec. 20, 2017, Altamirano-Navarro possessed a firearm while he was unlawfully in the United States and possessed two fraudulent immigration documents. Specifically, Altamirano-Navarro possessed a Ruger .22 caliber pistol, and, while walking on Calhoun Street in Springfield, he fired the pistol into the air. A law enforcement officer observed Altamirano-Navarro as he fired his weapon and informed nearby officers who then arrested the defendant. After arresting Altamirano-Navarro, law enforcement seized from him a fraudulent permanent resident card and a fraudulent resident alien card, both of which displayed Altamirano-Navarro’s photo.
The charge of possession of a firearm by a person unlawfully in the United States provides for a sentence of no greater than 10 years in prison, a minimum of three years of supervised release, and a fine of between $20,000 and $200,000. The charges of possession of fraudulent immigration documents each provide for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $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; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Springfield Police Commissioner John Barbieri made the announcement today. Assistant U.S. Attorney Neil L. Desroches of Lelling’s Springfield Branch Office is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
McLaughlin Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a McLaughlin, South Dakota, man convicted of assault of a federal officer was sentenced on October 15, 2018, by U.S. District Judge Charles B. Kornmann.
Austin Rain Folson, age 19, was sentenced to 8 months of federal custody, to be followed by 3 years of supervised release. He was ordered to pay $100 to the Federal Crime Victims Fund.
According to court documents, on March 14, 2018, Folson committed an assault when he forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a federal officer while the officer was engaged in the performance of his official duties.
The investigation was conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Folson was remanded to the custody of the U.S. Marshals Service.
Manhattan U.S. Attorney Announces Action to Recover Old Master Painting Stolen by Nazis and Selected for Hitler’s Art CollectionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeny Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the filing of a civil forfeiture action seeking the return to its rightful owner of a painting looted by the Nazis during World War II. The piece, A Scholar Sharpening His Quill, painted in 1639 by Salomon Koninck (the “Painting”), was allegedly stolen from the children and heirs of renowned Jewish art collector Adolphe Schloss. Schloss was a prominent Jewish art collector in Paris whose large collection of Old Master paintings (the “Schloss Collection”) was regarded as among the most significant private collections of Dutch and Flemish paintings assembled in prewar France.
Manhattan U.S. Attorney Geoffrey Berman said: “As alleged, this 1639 Old Master painting was owned by the Schloss family before it was stolen by the Nazis in France and transported to Munich to Hitler’s personal headquarters. We can never reverse history and undo the horrors committed at the hands of the Nazis. But we are steadfast in our determination to remember those who suffered and do what we can to return what was taken.”
According to the Complaint filed today in Manhattan federal court:
During World War II, the Nazis created a division known as the Einsatzstab Reichleiter Rosenberg (the “ERR”) in order to “study” Jewish life and culture as part of the Nazis’ propagandist mission against the Jews. Principally, the ERR confiscated artworks and other cultural holdings of “the enemies of the Reich” on a massive scale, and registered and identified those artworks – even photographing them – thereby leaving behind a detailed record of the works that they stole. ERR records and photographs of art and cultural artifacts looted by the Nazis are digitized and available in an online database created by the Conference on Jewish Material Claims Against Germany, and this database includes a photograph of the Painting taken by the ERR during World War II.
Upon the outbreak of World War II in 1939, the Schloss heirs moved the Schloss Collection from Paris to Chateau de Chambon, a township in Southern France, in an attempt to protect the collection from looting by the Nazis. Due to its value and significance, the ERR made substantial efforts to locate and loot the Schloss Collection. In 1943, the Schloss Collection was ultimately looted by the ERR from its holding place in Chateau de Chambon. The Nazis took 262 paintings from the Schloss Collection, including the Painting, and transported them to a depot located at the Jeu de Paume, a prewar museum in Paris that was operated by the ERR during the war. Ultimately, the Painting was selected by the Nazis to be transported to the the “Führerbau,” Hitler’s headquarters in Munich, from where it and many other paintings disappeared in the aftermath of the war.
The Painting resurfaced in November 2017, when a Chilean art dealer (the “Consignor”) attempted to sell the painting through a New York-based auction house. When the Painting arrived in New York from Chile, it was determined that it was the Painting came from the Schloss collection and had been looted by the Nazis. When the Consignor was informed of this, the Consignor stated that her father had purchased the Painting from Walter Andreas Hofer in Munich in 1952. Hofer was Hermann Göring’s chief purchasing agent and as such was a key player in the confiscation and looting of Jewish art collections during the Nazi era. In 1950, after being tried in absentia by a French military tribunal for his role in art plundering during World War II, Hofer was found guilty and sentenced to 10 years in prison.
The U.S. Attorney’s Office and the FBI are seeking forfeiture of the painting so it can be returned to its rightful owners, the Schloss family.
Mr. Berman thanked the FBI’s Art Crime Team for their assistance.
The case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorney Thane Rehn is in charge of the case.
Manhattan Businessman Sentenced to Nine Months in Prison for Forging Federal Court Orders to Remove Negative Reviews from Internet Search ResultsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that MICHAEL ARNSTEIN was sentenced today to nine months in prison for conspiring to forge a federal judge’s signature on counterfeit court orders that ARNSTEIN submitted to Google to get negative reviews about his business removed from Google search results. ARNSTEIN pled guilty on September 15, 2017, before U.S. District Court Judge Andrew L. Carter Jr., who imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Michael Arnstein’s blatant criminal scheme to exploit the authority of the federal judiciary for his company’s benefit was outrageous. As Arnstein has learned, his attempts to remove negative reviews about his business from Google search results by forging a U.S. District Court judge’s signature may have worked in the short term, but it also earned him nine months in a federal prison.”
According to the allegations contained in the Complaint, the felony Information to which ARNSTEIN pled guilty, and statements made during court proceedings:
Between February 2014 and February 2017, ARNSTEIN engaged in a scheme to submit counterfeit federal court orders to Google, Inc. (“Google”) in an effort to get websites containing unfavorable postings about ARNSTEIN’s business de-indexed from Google’s internet search results. In furtherance of this scheme, ARNSTEIN and others forged the signature of a United States District Judge for the Southern District of New York on more than 10 counterfeit court orders. These counterfeit orders listed the websites containing purportedly defamatory information about ARNSTEIN’s business and ordered the removal of such information from the websites. ARNSTEIN then submitted the counterfeit orders, which appeared to be valid on their face, to Google and requested that Google de-index the websites containing the purportedly defamatory information.
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In addition to the prison term, ARNSTEIN, 41, of Yonkers, New York, was sentenced to three years of supervised release, the first five months of which ARNSTEIN must serve in home detention. ARNSTEIN was also ordered to pay a fine of $20,000 and to perform 200 hours of community service during his term of supervised release.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation and the United States Marshals Service. He also thanked Google for its helpful assistance in this investigation.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sheb Swett and Daniel S. Noble are in charge of the prosecution.
Mandeville Couple Sentenced for Violations of Federal Gun Control ActRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that CHRISTOPHER MAZUR, age 34, and REBECCA COMSTOCK, age 37, were sentenced yesterday after pleading guilty to violations of the Federal Gun Control Act.
According to court documents, MAZUR unlawfully possessed 10 firearms and 2,825 rounds of ammunition. COMSTOCK made false statements to a federally licensed firearms dealer in connection with to three of the firearms that MAZUR unlawfully possessed.
United States District Judge Lance M. Africk sentenced MAZUR to a term of imprisonment of 24 months, a term of supervised release of three years, and a $100 mandatory special assessment. COMSTOCK was sentenced to a term of probation of five years and a $100 mandatory special assessment.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives in investigating this matter. Assistant United States Attorney J. Ryan McLaren was in charge of the prosecution.
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Leader of Local Bloods Gang Sentenced to Prison for Drug and Gun CrimesRead the Press Release
ALEXANDRIA, Va. – A Triangle man was sentenced today to 20 years in prison for conspiring to distribute cocaine, heroin, and using and carrying a firearm while drug trafficking.
According to court documents, Tarvell Vandiver, 29, has been a member of the Imperial Gangsta Blood (IGB) gang for years. IGB is a “hood” of the national gang, United Blood Nation. During the course of the conspiracy, Vandiver served as the IGB superior in this region. In his role as the regional leader of IGB, Vandiver coordinated with leadership in multiple states, oversaw the IGB in the region, called for regional and local meetings, and acted as the disciplinary officer. He also provided guidance to other gang members on how to distribute controlled substances and arranged for gang members to illegally purchase firearms.
During his time as the regional leader for IGB, Vandiver regularly distributed cocaine base and cocaine to gang members, other drug distributors, and users while armed or while having access to firearms. These firearms were used and carried in furtherance of his drug trafficking activities. Vandiver was recently convicted in D.C. Superior Court for his role in conspiring to commit murder in Washington, DC.
Vandiver was arrested in December 2017, when over 300 law enforcement agents and officers executed a coordinated takedown as part of Operation Tin Panda. The Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division and the FBI’s Washington Field Office Safe Streets Task Force began Operation Tin Panda in the spring of 2017. In collaboration with federal and local law enforcement, investigators and prosecutors began jointly investigating Blood gangs and other drug distributors involved in violent crime and other criminal activity in northern Virginia. Multiple criminal acts were tied to gang and drug activity, including homicide, malicious wounding, robbery, shootings, and drug and firearms distribution. During the course of this investigation, more than 40 individuals throughout Virginia, Maryland, the District of Columbia, and California, who were illegally selling firearms and controlled substances or were involved in other criminal acts, were arrested on federal firearms and drug charges.
Operation Tin Panda also resulted in the seizure of over 95 firearms, $150,000 in cash, nine vehicles with an estimated value of over $300,000, and approximately 3 pounds of cocaine base, 10 pounds of cocaine, 7 pounds of crystal methamphetamine, 5 pounds of heroin, 4 pounds of ecstasy, 227 pounds of marijuana, and 79 pounds of THC.
Operation Tin Panda was led by the ATF’s Washington Field Division and the FBI’s Washington Field Office Safe Streets Task Force. The DEA, U.S. Marshals Service, U.S. Postal Inspection Service, the Prince William County Police Department, Fairfax County Sheriff’s Office, Fairfax County Police Department, Alexandria Police Department, Stafford County Sherriff’s Office, Spotsylvania County Sheriff’s Office, King George County Sheriff’s Office, Caroline County Sheriff’s Office, Cumberland County Sheriff’s Office, Prince George’s County, Maryland Police Department, and the Washington, D.C. Metropolitan Police Department, provided significant assistance during the operation.
Operation Tin Panda was investigated as part of the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorneys Carina A. Cuellar and Colleen E. García prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-16.
Leader of Drug Trafficking Organization Sentenced to over 20 Years in Federal PrisonRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas and Little Rock FBI Special Agent in Charge (SAC) Diane Upchurch, announced today that Derrick Nicholson, age 50, of Fayetteville, Arkansas was sentenced October 16, 2018 to 250 months in federal prison followed by five years of supervised release, on one count of Conspiracy to Distribute Methamphetamine and one count of Distribution of 50 Grams or More of actual Methamphetamine; He was ordered to pay fines and fees in the amount of $10,000.
According to court records, in late 2016 and continuing through early 2018 the FBI Safe Streets Task Force (SSTF) conducted an investigation into a local drug trafficking organization led by Derrick Nicholson. Beginning in January 2017, investigators conducted seven separate controlled purchases of methamphetamine and heroin from Derrick Nicholson and his associates. In July, 2017, Derrick Nicholson was arrested by state authorities on firearms charges and was subsequently incarcerated, at which point his wife and coconspirator LaQueecha Nicholson assumed direct control of the organization. However, Derrick continued to play a leadership role in the operation of the organization from jail, coordinating shipments of methamphetamine and other drugs from California, Texas and Mississippi. The investigation was large in scope, covering Northwest Arkansas, Tennessee, Mississippi, Texas and California. In addition to large amounts of methamphetamine, the organization was distributing heroin, cocaine, ecstasy and marijuana. Eleven firearms were seized during the investigation, two of which were stolen, as well as an AK-47. The investigation revealed the identity of other co-conspirators in the organization.
“This sentence is a direct result of two years of hard work and sacrifice put forth by the Northwest Arkansas Safe Street Task Force and local law enforcement,” stated U.S. Attorney Dak Kees. “This operation is a prime example of the commitment Northwest Arkansas law enforcement has towards ensuring the safety of our community.”
“I would like to sincerely thank all of our partners with the Northwest Arkansas Safe Streets Task Force, the US Attorney’s Office, and all of the hard working men and women within FBI-Little Rock who participated in the successful investigation and prosecution of this case,” stated SAC Upchurch. “We hope that Derrick Nicholson’s 20 year jail sentence will serve as a warning to others that the people of the State of Arkansas will not tolerate the illegal distribution of narcotics within our state.”
In January of 2018, Derrick Nicholson, LaQueecha Nicholson, Johnny Nicholson, Rubin Morrow, Derrick Hill and Jeffery Hollingsworth were charged in a 15-count Indictment by the Grand Jury sitting in the Western District of Arkansas. In March of 2018, seven additional co-conspirators were charged by the Grand Jury in separate indictments. In addition to Derrick Nicholson, the following individuals have been convicted and sentenced as part of this case:
LaQueecha Nicholson, age 42, of Fayetteville, Arkansas was sentenced to 100 months in federal prison followed by four years of supervised release, on one count of Conspiracy to Distribute Methamphetamine and one count of Distribution of 50 Grams or More of a Mixture of Methamphetamine.
Johnny Nicholson, age 43, of Springdale, Arkansas was sentenced to 72 months in federal prison followed by four years of supervised release, on one count of Distribution of five or more grams of methamphetamine.
Marcus Derby, age 37, of Dallas, Texas was sentenced to 96 months in federal prison followed by three years of supervised release, on one count of Conspiracy to Distribute Cocaine.
Jeffery Hollingsworth, age 50, of Fayetteville, Arkansas was sentenced to 87 months in federal prison followed by three years of supervised release, on one count of Conspiracy to Distribute Methamphetamine.
Derrick Hill, age 42, of Fayetteville, Arkansas was sentenced to 72 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearings in the United States District Court in Fayetteville.
This case was investigated by the FBI Safe Streets Task Force and prosecuted by AUSA David Harris as a part of the Department of Justice’s Project Safe Neighborhoods Initiative, which is a nationwide effort that brings together federal, state and local law enforcement resources to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them.
Lavellous Purcell, A/K/A “King Casino,” A/K/A “Mike Hill,” Convicted in Manhattan Federal Court of Sex Trafficking by Force, Fraud, or Coercion, and Other Related OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that a federal jury today found LAVELLOUS PURCELL, a/k/a “King Casino,” a/k/a “Mike Hill,” guilty of sex trafficking by force, fraud, or coercion, and related offenses. PURCELL was convicted following a one-week jury trial before U.S. District Judge Denise L. Cote.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Lavellous Purcell, a/k/a ‘King Casino,’ was a pimp with a notoriously brutal set of rules he used to keep his victims under his control. Besides physical violence and intimidation, Purcell forced the women to dress and act in certain ways, and forced them to brand themselves with a tattoo of his alias, ‘Casino,’ on their necks. Purcell even boasted about his reprehensible abuse of women on social media. Now, Purcell has himself been branded as a felon by a unanimous jury, and faces life in federal prison. We hope today’s verdict brings at least some small measure of comfort to the victims of Purcell’s unconscionable crimes.”
According to the allegations contained in the Indictment and evidence presented during the trial in Manhattan federal court:
From at least in or about 2012 to in or about 2017, LAVELLOUS PURCELL, a/k/a “King Casino,” a/k/a “Mike Hill,” the defendant engaged in the sex trafficking and commercial sexual exploitation of numerous women across the country, including in New York, Pennsylvania, and North Carolina. The defendant recruited, enticed, harbored, transported, provided, obtained, and maintained women for the purposes of commercial sex, and he used violent force, threats of force, coercion, intimidation, and fear to force at least one woman to engage in commercial sex for his own profit. For example, the defendant strangled and choked certain of his victims, he hit and threatened to hit certain of his victims, and he kidnapped certain of his victims.
The victims of the defendant’s prostitution business were required to follow a strict set of rules, which the defendant enforced through threats, fear, intimidation, and violence. The defendant’s rules required his victims to: make the defendant money through prostitution, give the defendant all money earned from any commercial sex acts, call the defendant “Daddy,” not speak to men other than the defendant, not look at any men other than the defendant, not talk back to the defendant, not disrespect the defendant, not have boyfriends, not wear sneakers or loose-fitting clothing, and brand themselves with a tattoo bearing the defendant’s alias, “Casino,” on their necks.
The defendant recruited women to engage in commercial sex through social media websites, and he used Backpage.com, an online classifieds website, to post advertisements for commercial sex. The defendant also booked various rental cars and hotel rooms to transport women across state lines to engage in commercial sex. Meanwhile, the defendant boasted about the violence he used against women and his prostitution of women through social media posts, phone, text, and online communications, and in person.
To date, law enforcement agents have identified numerous women who have engaged in commercial sex at the defendant’s direction.
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LAVELLOUS PURCELL, a/k/a “King Casino,” a/k/a “Mike Hill,” 40, of Hempstead, New York, was convicted of one count of sex trafficking by force, fraud, or coercion, one count of enticement to engage in prostitution, one count of transporting individuals in interstate commerce to engage in prostitution, one count of using interstate commerce to promote prostitution, and one count of conspiring to use interstate facilities to promote prostitution. The defendant faces a mandatory minimum sentence of 15 years’ imprisonment, as well as maximum potential sentences that are prescribed by Congress and provided below for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Any individuals who believe they have information that may be relevant to the investigation should contact the FBI at 1-212-384-1000 or https://tips.fbi.gov/.
Mr. Berman thanked the FBI and NYPD for their outstanding investigative work in this matter. Mr. Berman also thanked the New York County District Attorney’s Office for its assistance with this investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Sheb Swett, Jane Kim, and Margaret Graham are in charge of the prosecution.
Kyle Man Sentenced for Assault on a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Kyle, South Dakota, man convicted of Assault on a Federal Officer was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Ramone McBride, age 20, was sentenced on October 3, 2018, to 18 months in federal prison, followed by 2 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
McBride was found guilty of the charge following a federal jury trial in Rapid City on June 26, 2018.
On September 4, 2017, an Oglala Sioux Tribe Department of Public Safety Officer responded to McBride’s address in order to remove him from the residence. After being informed McBride was no longer at the residence, McBride jumped the officer from behind. McBride put the officer in a chokehold and assaulted him in the face multiple times with a closed fist. McBride then grabbed the officer’s taser and deployed two taser cartridges – striking the officer in the temple, ear, neck, and bicep area.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Koreatown Consultant and Former California Dept. of Alcoholic Beverage Control Official Indicted in Long-Running Bribery SchemeRead the Press Release
LOS ANGELES – A former official with the California Department of Alcoholic Beverage Control (ABC) allegedly accepted thousands of dollars in bribes from a consultant in exchange for taking official acts to financially benefit the consultant, including initiating ABC enforcement actions designed to generate consulting fees, according to a federal grand jury indictment announced today by United States Attorney Nick Hanna and FBI Assistant Director in Charge Paul Delacourt.
The two men charged in the corruption scheme are:
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Wilbur M. Salao, 46, of Bellflower, a 21-year ABC employee who was a district administrator in the Los Angeles Metro ABC office from 2010 until he left the agency in May 2017; and
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Scott Seo, also known as “Seung Hye Seo” and “Scott Hoon Seo,” 49, of San Pedro, who was employed by the ABC for 15 years before starting his consulting business, Alcoholic Beverage Control LLC (ABC LLC), in 2006.
The 13-count indictment was unsealed on Wednesday when Salao was arraigned in United States District Court. At that time, Salao entered a not guilty plea, was released on a $20,000 bond and was ordered to stand trial on December 11 before United States District Judge John A. Kronstadt.
Seo surrendered on Thursday and was arraigned that afternoon. He also pleaded not guilty and was released on a $20,000 bond.
The indictment specifically alleges that Seo paid Salao over $28,000 in bribes and kickbacks from the beginning of 2014 through the spring of 2016.
In exchange for the payments, Salao allegedly performed official acts, including directing ABC enforcement operations and disciplinary actions against businesses selected by Seo, sharing non-public information with Seo, revealing confidential law enforcement activities in Koreatown, and expediting the licensing process for Seo’s clients.
“We will not tolerate the shakedown of local businesses by corrupt public officials and their cohorts,” said United States Attorney Nick Hanna. “The brazen conduct alleged in this case compromised the integrity of a state agency, provided preferential treatment to businesses that paid bogus consulting fees, and padded the pockets of a senior ABC official. All businesses subject to enforcement and licensing requirements should be able to play on the same level field.”
“Mr. Salao is alleged to have enriched himself with bribe payments in exchange for using his government position to target businesses in Koreatown on behalf of his codefendant, Mr. Seo. Moreover, the pair attempted to thwart legitimate law enforcement action, putting police officers in harm’s way,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Rooting out this kind of corruption is necessary in order for businesses to operate legitimately, without fear of reprisal by those in positions of power or influence.”
Seo has operated ABC LLC over the past 13 years, marketing his services through various means in Koreatown, a neighborhood located in City Council District 10 in central Los Angeles.
As part of the scheme, Seo targeted Koreatown businesses for ABC enforcement actions, which allowed Seo to sign new clients, generate consulting fees from existing clients, and attempt to force a business to sell its establishment to Seo and his associates, the indictment alleges.
The indictment outlines a series of official acts allegedly taken by Salao that implicate at least eight businesses in Koreatown and were designed to benefit Seo’s consulting business. For example, in late 2011, after the ABC raided a Koreatown establishment, Seo charged the business $60,000 in cash, some of which was used to pay Salao, who issued a temporary license that allowed the establishment to continue operating.
Between 2014 and 2016, Seo allegedly sent Salao lists of businesses for the ABC to target, which included suggested violations, such as operating after hours. In communications between the two men outlined in the indictment, they discussed how Salao would provide benefits to Seo’s clients and would impose more severe penalties on businesses that did not utilize Seo’s services.
In private discussions outlined in the indictment, Seo and Salao referred to their scheme as “Asian Persuasion Control” and “Asian Persuasion Coalition.”
Additionally, according to the indictment, Salao learned of impending enforcement actions by the ABC and the Los Angeles Police Department in Koreatown and provided information to Seo, including a photo of an undercover LAPD officer. This information allowed Seo to warn his clients and shield their illegal activity from police.
Salao and Seo are charged in the indictment with conspiracy, four counts of honest services mail fraud and four counts of honest services wire fraud. Seo is charged additionally with four counts of bribery.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted of the charges in the indictment, Seo would face a statutory maximum sentence of 205 years in federal prison, and Salao would face up to 164 years.
This case is part of an ongoing investigation being conducted by the Federal Bureau of Investigation.
Any member of the public who has knowledge about this case – or who would like to report similar allegations of corruption by public officials – is encouraged to contact their local FBI Field Office. In Los Angeles, the FBI can be reached 24 hours a day at (310) 477-6565. Foreign language speakers can be made available.
This case is being prosecuted by Assistant United States Attorney Veronica Dragalin of the Public Corruption and Civil Rights Section.
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Kane County Man Sentenced to 12 Years in Prison for $600,000 Bank Fraud, Aggravated Identity TheftRead the Press Release
SPRINGFIELD, Ill. – U.S. District Judge Sue E. Myerscough today sentenced a Carpentersville, Ill., man, Keith JD Offord, to 12 years in prison for a bank fraud scheme that used identities stolen from the dark web to defraud businesses, including several Springfield businesses, of more than $600,000. Offord, 25, was also ordered to pay restitution in the amount of $600,549.
On Feb. 8, 2018, a jury convicted Offord for bank fraud and aggravated identity theft. Evidence presented by the government showed that from December 2013 to August 2015, Offord used others’ identities to create false identification documents which were used at retail stores to obtain credit accounts and to buy merchandise and gift cards. Among the businesses Offord defrauded were Bergner’s, Game Stop, and Sam’s Club in Springfield. Offord used more than 70 stolen identities, primarily of chiropractors, that he obtained from the dark web. Stolen identifiers included dates of birth, social security numbers, addresses, passwords to email accounts and mothers’ maiden names.
Offord has been in the custody of the U.S. Marshals Service since Jan. 9, 2018, when U.S. Magistrate Judge Tom Schanzle-Haskins revoked his bond. The petition to revoke Offord’s bond alleged that Offord attempted to commit bank fraud on or about Nov. 1, 2017, when he attempted to obtain a loan to purchase a 2011 Jaguar XJ automobile. Offord allegedly presented false information to a credit union, including a fraudulent social security number which was assigned to an 11-year-old boy in Idaho, fraudulent employment and salary information, a fraudulent driver’s license, and fraudulent documents to confirm his address.
The Illinois State Police conducted the investigation. Assistant U.S. Attorneys Gregory M. Gilmore and Matthew Z. Weir prosecuted the case.
Justice Department Successfully Closes Its Memorandum of Agreement with Shelby County, TennesseeRead the Press Release
The Department of Justice today announced that it is successfully closing its memorandum of agreement with the Juvenile Court of Memphis and Shelby County and the Shelby County Detention Center.
Shelby County and the Civil Rights Division of the Department of Justice entered into the agreement in December of 2012 to address the results of an investigation by the Department into the operations of the County’s juvenile justice system. The investigation looked into the operation and administration of the County’s juvenile court as well as the conditions of confinement for juveniles held in the County’s Detention Center.
Over the last six years, Shelby County has implemented a number of significant reforms under the agreement. To ensure that it protects the constitutional rights of juveniles to receive due process and equal protection under the law, the County has for the first time established and funded a juvenile unit in the public defender’s office that now represents the majority of juveniles who appear before the Juvenile Court. The County now provides counsel to juveniles at both probation conferences and at court hearings. The County has also undertaken efforts to ensure that decisions made at different levels of the juvenile justice system are unbiased and guided by objective criteria. Finally, the County has taken numerous steps to prevent the unnecessary use of force in the Detention Center and to protect juveniles from the risk of suicide.
“The Department of Justice is committed to protecting the constitutional rights of all juveniles who enter the justice system,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “Shelby County made commendable efforts to improve its juvenile justice system. The Department is pleased to see Shelby County and its local elected officials embrace and show public commitment to continuing the reforms it has made.”
The Department of Justice applauds Shelby County’s reform efforts and appreciates the productive partnership that the County has established with the Department over the last six years.
More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt.
Jury Convicts Meade County Man for Violating Federal Child Exploitation LawRead the Press Release
LOUISVILLE, Ky. – A Meade County, Kentucky, man was convicted last week for accessing the Internet with intent to view child pornography, announced United States Attorney Russell M. Coleman. The jury convicted Dennis Ammons, age 58, on October 12, 2018, following a three-day jury trial.
“This conviction is the product of a courageous victim and a dogged career federal prosecutor, collaborating to seek justice and protect other Kentucky kids,” stated U.S. Attorney Russell M. Coleman.
According to a pre-trial memo and evidence introduced during the trial, on December 15, 2015, law enforcement officials executed a federal search warrant on Ammons’ home and seized nearly 200 digital devices such as laptop computers, hard drives, tablets, thumb drives and memory cards. Forensic examination of the devices revealed evidence of Ammons’ online activities concerning child pornography. Seven of the devices contained videos or still images depicting the sexual exploitation of children.
Sentencing is set for Tuesday, January 22, 2019, before United States District Court Judge Claria Horn Boom. Ammons faces a maximum sentence of 10 years in prison and at least five years of Supervised Release. He will have to register as a child sex offender upon his release from federal prison. There is no parole in the federal system.
Assistant United States Attorney Jo E. Lawless prosecuted the case with assistance from paralegal Mary Kennedy. The Federal Bureau of Investigation, with assistance from the Department of Homeland Security Federal Protective Service, investigated the case.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
Jury Convicts Binghamton Woman of Stealing Social Security BenefitsRead the Press Release
BINGHAMTON, NEW YORK - A jury today voted to convict Patricia L. Williams, age 62, of Binghamton, of theft of government property and fraud, for stealing Social Security benefits deposited into her deceased husband’s bank account, and for concealing her receipt of those benefits while applying for and receiving other government benefits.
The announcement was made by United States Attorney Grant C. Jaquith and John F. Grasso, Special Agent In Charge of the Social Security Administration (SSA) Office of the Inspector General.
The jury reached a verdict after a four-day trial. The evidence demonstrated that the defendant’s husband passed away in 1990, but SSA was never notified of his death. SSA, believing the defendant’s husband was alive, continued to pay monthly benefits until 2013, which Williams withdrew and spent, knowing she was not entitled to the money. From 2008 to 2015, the defendant applied for and received Supplemental Security Income (SSI), concealing that she was taking her deceased husband’s benefits. SSI is a needs-based program, available to elderly, blind, and disabled individuals, that provides money to pay for living expenses. The total loss to the government was at least $63,500.
Williams faces up to 10 years in prison and up to 3 years of post-imprisonment supervised release when she is sentenced by Senior United States District Judge Thomas J. McAvoy on February 20, 2019. She may also be ordered to pay restitution to the SSA. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the SSA Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Jason W. White.
Jacksonville High School Teacher Arrested and Federally Charged with Distribution of Child Sexual Abuse VideoRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announced today that Jordan Frederic Schemmel (37, Jacksonville) has been arrested and charged by federal criminal complaint with distributing child pornography. Schemmel faces a mandatory minimum penalty of 5 years, and up to 20 years, in federal prison, and a potential life term of supervised release. Schemmel has been detained pending a detention hearing scheduled for October 25, 2018.
According to the
criminal complaint , on September 5, 2018, an individual using the screen name “JS” and the user name “Profsunrise15” responded to a message on an internet bulletin board frequented by individuals with a sexual interest in children. This message had been posted by an undercover FBI agent. The user (“Profsunrise15”), later identified as Jordan Frederic Schemmel, began an online conversation with the undercover FBI agent. After some conversation about sexual interest in children, Profsunrise15 sent the agent a video depicting a prepubescent child being sexually assaulted by an adult male, and later sent a photo depicting similar criminal conduct with a child. Further investigation revealed that the IP address used by Profsunrise15 resolved to Schemmel’s residence in Jacksonville, and that Schemmel was a teacher at Terry Parker High School in Jacksonville.On October 19, 2018, FBI agents and other law enforcement officers executed a federal search warrant at Schemmel’s residence and seized several items of computer media and at least one Apple iPhone. During an interview with law enforcement, Schemmel stated that his Kik user name was Profsunrise15, that he had sent the child-pornographic video using the Kik app, and that he had previously tried unsuccessfully to stop viewing child pornography. An examination of Schemmel’s smart phone and a thumb drive located at his residence revealed that both contained images and videos depicting child pornography and bestiality. Schemmel was placed under arrest.
This case was investigated by the FBI, U.S. Customs and Border Protection, and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
Anyone with information regarding this investigation should contact the FBI Jacksonville office at 904-248-7000.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A criminal complaint is only an allegation and every defendant is presumed innocent until proven guilty.
In the Aftermath of Hurricane Michael Department of Justice Reminds the Public to be Aware of Fraud and Report it to the National Center for Disaster FraudRead the Press Release
The Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region, which opened opportunities for criminals to exploit people during vulnerable times. The NCDF, a national coordinating agency within the Department’s Criminal Division, operates a call center at Louisiana State University in Baton Rouge and serves as a centralized clearinghouse for disaster fraud complaints and information relating to both natural and man-made disasters. The NCDF seeks to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for victims of such fraud. More than 20 federal, state, and local agencies participate in the NCDF, which allows them to forward on complaints to the appropriate agency for investigation.
“Following Hurricane Michael’s landfall and as recovery efforts continue, it is important for people to be on the lookout for fraudsters who seek to profit from natural disasters through identity theft schemes, impersonation of government officials and solicitations for fake charities,” said Deputy Attorney General Rod Rosenstein. “The Department of Justice is committed to detecting this type of fraud, and we will aggressively prosecute the offenders. Through our National Center for Disaster Fraud, and in conjunction with our law enforcement partners, we are working to keep Americans from becoming victims of these schemes.”
Since Hurricane Michael’s landfall, many people are left without food, water, or shelter, and are experiencing devastating damage to life and property. Unfortunately, there are criminals ready to take advantage of victims before, during, and especially after a natural disaster. They are looking to strike those at their most vulnerable time.
While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need. Examples of illegal activity being reported to the NCDF and law enforcement include:
- Impersonation of federal law enforcement officials;
- Identity theft;
- Fraudulent submission of claims to insurance companies and the federal government;
- Fraudulent activity related to solicitations for donations and charitable giving;
- Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts;
- Price gouging;
- Contractor Fraud;
- Debris removal fraud;
- Theft, looting, and other violent crime
Numerous U.S. Attorney Offices in districts impacted by recent hurricanes have established task forces comprised of local, state and federal agencies in their respective areas to combat disaster fraud.
“The NCDF has an excellent staff of investigators, analysts, call center operators, and managers who are well prepared to handle the anticipated volume of complaints after the recent hurricanes and help ensure that each report of fraud reaches the appropriate investigative agency,” said U.S. Attorney Brandon J. Fremin for the Middle District of Louisiana, who is also the NCDF’s Executive Director. “Raising public awareness is a great way for the NCDF to reach thousands of people who may one day be subjected to fraudulent schemes.”
Members of the public are reminded to apply a critical eye and exercise due diligence before trusting anyone purporting to be working on behalf of disaster victims. They should also exercise the same care before giving contributions to anyone soliciting donations on behalf of disaster victims as well as being extremely cautious before providing personal identifying or financial information to anyone, especially those who may contact you after a natural disaster. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods. Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by live operators 24 hours a day, seven days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the NCDF at www.justice.gov/disaster-fraud and watch a public service announcement here. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
In the Aftermath of Hurricane Michael Department of Justice Reminds the Public to Be Aware of Fraud and Report It to the National Center for Disaster FraudRead the Press Release
The Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region, which opened opportunities for criminals to exploit people during vulnerable times. The NCDF, a national coordinating agency within the Department’s Criminal Division, operates a call center at Louisiana State University in Baton Rouge and serves as a centralized clearinghouse for disaster fraud complaints and information relating to both natural and man-made disasters. The NCDF seeks to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for victims of such fraud. More than 20 federal, state, and local agencies participate in the NCDF, which allows them to forward on complaints to the appropriate agency for investigation.
“Following Hurricane Michael’s landfall and as recovery efforts continue, it is important for people to be on the lookout for fraudsters who seek to profit from natural disasters through identity theft schemes, impersonation of government officials and solicitations for fake charities,” said Deputy Attorney General Rod Rosenstein. “The Department of Justice is committed to detecting this type of fraud, and we will aggressively prosecute the offenders. Through our National Center for Disaster Fraud, and in conjunction with our law enforcement partners, we are working to keep Americans from becoming victims of these schemes.”
Since Hurricane Michael’s landfall, many people are left without food, water, or shelter, and are experiencing devastating damage to life and property. Unfortunately, there are criminals ready to take advantage of victims before, during, and especially after a natural disaster. They are looking to strike those at their most vulnerable time.
While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need. Examples of illegal activity being reported to the NCDF and law enforcement include:
- Impersonation of federal law enforcement officials;
- Identity theft;
- Fraudulent submission of claims to insurance companies and the federal government;
- Fraudulent activity related to solicitations for donations and charitable giving;
- Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts;
- Price gouging;
- Contractor Fraud;
- Debris removal fraud;
- Theft, looting, and other violent crime
Numerous U.S. Attorney Offices in districts impacted by recent hurricanes have established task forces comprised of local, state and federal agencies in their respective areas to combat disaster fraud.
“The NCDF has an excellent staff of investigators, analysts, call center operators, and managers who are well prepared to handle the anticipated volume of complaints after the recent hurricanes and help ensure that each report of fraud reaches the appropriate investigative agency,” said U.S. Attorney Brandon J. Fremin for the Middle District of Louisiana, who is also the NCDF’s Executive Director. “Raising public awareness is a great way for the NCDF to reach thousands of people who may one day be subjected to fraudulent schemes.”
Members of the public are reminded to apply a critical eye and exercise due diligence before trusting anyone purporting to be working on behalf of disaster victims. They should also exercise the same care before giving contributions to anyone soliciting donations on behalf of disaster victims as well as being extremely cautious before providing personal identifying or financial information to anyone, especially those who may contact you after a natural disaster. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods. Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by live operators 24 hours a day, seven days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the NCDF at www.justice.gov/disaster-fraud and watch a public service announcement here. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
In the Aftermath of Hurricane Michael Department of Justice Reminds the Public to Be Aware of Fraud and Report It to the National Center for Disaster FraudRead the Press Release
The Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region, which opened opportunities for criminals to exploit people during vulnerable times. The NCDF, a national coordinating agency within the Department’s Criminal Division, operates a call center at Louisiana State University in Baton Rouge and serves as a centralized clearinghouse for disaster fraud complaints and information relating to both natural and man-made disasters. The NCDF seeks to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for victims of such fraud. More than 20 federal, state, and local agencies participate in the NCDF, which allows them to forward on complaints to the appropriate agency for investigation.
“Following Hurricane Michael’s landfall and as recovery efforts continue, it is important for people to be on the lookout for fraudsters who seek to profit from natural disasters through identity theft schemes, impersonation of government officials and solicitations for fake charities,” said Deputy Attorney General Rod Rosenstein. “The Department of Justice is committed to detecting this type of fraud, and we will aggressively prosecute the offenders. Through our National Center for Disaster Fraud, and in conjunction with our law enforcement partners, we are working to keep Americans from becoming victims of these schemes.”
Since Hurricane Michael’s landfall, many people are left without food, water, or shelter, and are experiencing devastating damage to life and property. Unfortunately, there are criminals ready to take advantage of victims before, during, and especially after a natural disaster. They are looking to strike those at their most vulnerable time.
While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need. Examples of illegal activity being reported to the NCDF and law enforcement include:
- Impersonation of federal law enforcement officials;
- Identity theft;
- Fraudulent submission of claims to insurance companies and the federal government;
- Fraudulent activity related to solicitations for donations and charitable giving;
- Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts;
- Price gouging;
- Contractor Fraud;
- Debris removal fraud;
- Theft, looting, and other violent crime
Numerous U.S. Attorney Offices in districts impacted by recent hurricanes have established task forces comprised of local, state and federal agencies in their respective areas to combat disaster fraud.
“The NCDF has an excellent staff of investigators, analysts, call center operators, and managers who are well prepared to handle the anticipated volume of complaints after the recent hurricanes and help ensure that each report of fraud reaches the appropriate investigative agency,” said U.S. Attorney Brandon J. Fremin for the Middle District of Louisiana, who is also the NCDF’s Executive Director. “Raising public awareness is a great way for the NCDF to reach thousands of people who may one day be subjected to fraudulent schemes.”
Members of the public are reminded to apply a critical eye and exercise due diligence before trusting anyone purporting to be working on behalf of disaster victims. They should also exercise the same care before giving contributions to anyone soliciting donations on behalf of disaster victims as well as being extremely cautious before providing personal identifying or financial information to anyone, especially those who may contact you after a natural disaster. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods. Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by live operators 24 hours a day, seven days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the NCDF at www.justice.gov/disaster-fraud and watch a public service announcement here. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
Hedge Fund Manager Pleads Guilty to Securities Fraud for Defrauding Investors of Millions of DollarsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that NICHOLAS JOSEPH GENOVESE pled guilty today in Manhattan federal court to securities fraud for inducing investments in a hedge fund that he founded, Willow Creek Investments LP (“Willow Creek”), by misrepresenting his qualifications and professional background and concealing that he had prior felony convictions for fraud-related crimes. In February 2018, GENOVESE was charged and arrested for perpetrating this fraud. Today, GENOVESE pled guilty to one count of securities fraud before United States District Judge William H. Pauley III. As part of his guilty plea, GENOVESE agreed to forfeit more than $13 million of proceeds of the securities fraud, including his interest in two watercraft that GENOVESE purchased with funds that he obtained from his victims.
Manhattan U.S. Attorney Berman said: “Nicholas Genovese admitted today that he duped victims into investing millions of dollars into his hedge fund, Willow Creek, based on false claims about his background and credentials. Genovese brazenly lied to his victims, falsely claiming that he was an heir to a multimillion dollar fortune, that he had an Ivy League MBA, and that he had served in senior roles at major Wall Street firms. In reality, Genovese was a confidence man with an extensive criminal record. Now, Genovese has pled guilty to his audacious crimes and faces prison time for his misdeeds.”
According to the allegations set forth in the Complaint and Indictment filed against GENOVESE in Manhattan federal court, and statements made in public court filings and proceedings including GENOVESE’s guilty plea hearing:
In 2015, GENOVESE began soliciting individuals to invest in the hedge fund that became Willow Creek, which was based in New York, New York. In doing so, GENOVESE represented, among other things, that he was part of the Genovese family that had owned the Genovese Drug Store chain in the New York area and was an heir to this family’s fortune from the sale of that business for hundreds of millions of dollars in the late 1990s; that he had graduated from Dartmouth College’s Tuck School of Business; and that he had extensive Wall Street experience. In particular, GENOVESE claimed that he had been a Goldman Sachs partner and a Bear Sterns portfolio manager before forming Willow Creek. Based in part on these claims, victims invested more than $13 million with GENOVESE.
These representations were false. GENOVESE is not related to the Genovese family that owned and sold the Genovese Drug Store Chain, did not attend the Tuck School of Business, and had never worked for Goldman Sachs or Bear Stearns. GENOVESE also did not tell his investors that he had multiple prior felony convictions for fraud-related offenses including forgery, identity theft, and grand larceny.
When investors began to ask for their money back, GENOVESE put them off. He told one investor that he would only return that investor’s funds after “the stars have aligned,” or else there would be a risk that almost all the money would be lost as a result of the purported impracticalities of unwinding unspecified trading positions. Records indicate that GENOVESE lost approximately $8 million trading in TD Ameritrade accounts between January 2015 and December 2017. GENOVESE also used proceeds of his fraud to purchase various luxury items, including two high-end mahogany boats.
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GENOVESE, 53, of New York, New York, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison, and agreed to forfeit more than $13 million of proceeds of the securities fraud to the U.S. government (including his two mahogany boats). The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence of the defendant will be determined by Judge Pauley at GENOVESE’s sentencing, which has been scheduled for February 15, 2019 at 2 p.m.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation and thanked the New York Regional Office of the United States Securities and Exchange Commission.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Samson Enzer is in charge of the prosecution.
Greenville Roofing Company Owner Sentenced to Prison for Tax EvasionRead the Press Release
John Frederick Snyder, Owner of Snyder’s Roofing, Willfully Underreported his Income by Over $6 Million for tax years 2009 to 2014
GRAND RAPIDS, MICHIGAN — U.S. District Judge Gordon J. Quist sentenced John Frederick Snyder, 72, of Greenville, Michigan, and owner of Snyder’s Roofing, to 12 months and 1 day in prison on October 18 following his guilty plea to a felony information charging him with tax evasion for the 2011 tax year. Snyder further admitted to willfully evading the assessment of income taxes for 2009 to 2014 by underreporting his income by over $6 million. The court also ordered Snyder to pay restitution of $414,160.00, representing the amount of taxes he intentionally failed to pay, which Snyder paid in full prior to sentencing. The IRS will assess interest and penalties against Snyder in the additional amount of approximately $600,000.00.
"Today, the court again justifiably recognized that the integrity of our country’s tax system depends upon voluntary and honest participation by everyone," said U.S. Attorney Andrew Birge. "Those who repeatedly and intentionally evade their obligation to accurately report their income and pay their fair share of taxes will be brought before the court and face appropriate punishment, up to and including imprisonment."
According to his plea agreement and court records, Snyder consistently failed to timely file tax returns and when he did file he underreported the amount of his business income. He purposely deposited less than all of his business income into his business bank account without informing his accountant. Instead, he took checks from his customers and signed them over to his suppliers (making them third-party checks) to pay for the materials and services used in his business. Because of this practice, his business account never showed his actual business income. Snyder also carried out his tax evasion scheme by depositing checks made payable directly to him for the work of his roofing business into his personal bank accounts, taking back cash at the same time, or negotiating the entire amount of the checks for cash. Snyder used some of this unreported cash to pay his employees.
"This is a classic example of greed," said Manny Muriel, IRS-Criminal Investigation Special Agent in Charge of the Detroit Field Office. "Snyder blatantly disregarded the law to line his own pockets. He painstakingly took steps to avoid paying his fair share of taxes. IRS-Criminal Investigation will continue to seek out and find those who choose to disregard the tax laws."
The IRS-Criminal Investigation Division, Grand Rapids, conducted the investigation, and Assistant U.S. Attorney Ronald M. Stella prosecuted the case.
END
Government files False Claims Act complaint against ophthalmologist, Dr. Aarti D. PandyaRead the Press Release
ATLANTA - The government intervened and filed a complaint in a False Claims Act lawsuit against Aarti D. Pandya, M.D. a/k/a Arati D. Pandya, M.D., an ophthalmologist from Conyers, Georgia, and her practice Aarti D. Pandya, M.D., P.C. (“the Pandya Defendants”). The lawsuit alleges that the Pandya Defendants submitted false claims to Medicare for surgical procedures, diagnostic tests, and office visits that were medically unnecessary, of worthless value, upcoded, and in some cases, not provided at all.
“Patients and taxpayers who finance health care programs like Medicare are entitled to know that doctors are making decisions solely based upon medical need, and not based upon a desire to increase billings,” said U.S. Attorney Byung J. “BJay” Pak. “Our office is committed to preserving the integrity of the public health programs by pursuing doctors who engage in illegal healthcare practices at the public’s expense.”
“Greed at the expense of the American taxpayer is unacceptable,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services - Office of the Inspector General (HHS-OIG) in Atlanta. “HHS-OIG in tandem with our law enforcement partners will vigorously pursue those who seek to harm our most vulnerable citizens through questionable medical procedures and billing practices.”
“We must ensure patients and taxpayers that care provided by federally funded healthcare programs is dictated by clinical needs, not fiscal greed,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “To do that, the FBI and its partners are committed to combine resources to investigate and hold providers accountable to bill the government only for necessary services.”
The government’s complaint alleges that, between January 1, 2011 and December 31, 2016, Dr. Pandya engaged in multiple schemes to submit false claims to Medicare, including claims for medically unnecessary cataract extraction surgery. Cataract surgery is only justified when a patient has a cataract that advances to the point where the patient cannot see well enough to carry out their normal daily activities. In many cases, Dr. Pandya performed surgery despite the fact that her patients had little to no vision complaints and normal visual acuity. She also failed to determine whether the patient would benefit from less invasive measures, such as glasses, as is required before submitting Medicare claims for cataract surgery.
The complaint also alleges that Dr. Pandya rendered false glaucoma diagnoses, which she used to submit a battery medically unnecessary diagnostic tests to Medicare. These diagnostic tests were often incomplete, of extremely poor quality, and not used by Dr. Pandya in treating the patients. For a period of time, one of the machines that Dr. Pandya used for diagnostic testing was not functioning, but she continued to bill Medicare for these tests, which were never performed.
The complaint also alleges that the Pandya Defendants submitted large numbers of false claims for office visits, commonly referred to as evaluation and management services. The Pandya Defendants billed Medicare for high level office visits nearly every time patients visited the clinic. Dr. Pandya, however, spent very little time with her patients and failed to provide the services required of these high level office visits. The Pandya Defendants also filed false claims for office visits when patients came to the clinic for care associated with procedures for which Medicare was already paying.
The lawsuit was initially filed by Laura Dildine, a former office manager for the Pandya Defendants, under the qui tam, or whistleblower, provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The act permits the government to intervene in such lawsuits, as it has done in this case. Defendants found liable under the act are subject to treble damages and penalties.
This matter was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the Department of Health and Human Services – Office of Inspector General, the Federal Bureau of Investigation, and the Defense Criminal Investigative Service.
The claims asserted against the defendant are allegations only, and there has been no determination of liability. The lawsuit is captioned United States v. Aarti D. Pandya, M.D., et al., Civil Action No. 1:13-CV-3336-LMM. (N.D. Ga.)
Assistant U.S. Attorneys David O’Neal and Austin M. Hall are representing the United States in this matter.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected](link sends e-mail) 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.
Former Youth Basketball Coach Pleads Guilty to Sexual Exploitation of Children, Possession and Transportation of Child PornographyRead the Press Release
DES MOINES, Iowa – Gregory Scott Stephen, age 42, of Monticello, Iowa, pleaded guilty on October 18, 2018, to five counts of sexual exploitation of a child, one count of possession of child pornography, and one count of transportation of child pornography, announced United States Attorney Marc Krickbaum. This case is being prosecuted by Southern District of Iowa Assistant United States Attorneys Clifford Cronk and Amy Jennings, who have been designated as Special Assistant United States Attorneys, based on the recusal of the Northern District of Iowa United States Attorney’s Office.
Stephen’s sentencing date has yet to be scheduled before United States Northern District of Iowa Judge C.J. Williams. Stephen entered his guilty pleas pursuant to a conditional plea agreement, which permits Stephen to seek appellate review of the District Court’s October 4, 2018, Order denying Stephen’s motion to suppress evidence. Stephen pleaded guilty to all of the charges filed against him, and no charges were dismissed as part of plea agreement.
Stephen is the former co-director of Barnstormers Basketball of Iowa. The Barnstormers operate youth basketball teams for athletes between fourth and twelfth grades. In addition to his administrative duties, Stephen also coached Barnstormer players.
Stephen admitted in the plea agreement that he posed online as three different minor females and persuaded, induced, and enticed minor boys to send Stephen sexually explicit images of themselves. Specifically, while posing online as a teenaged female, Stephen contacted minor males, offered to exchange nude images with the minor males, and suggested the type of sexually explicit images the minor males should produce. Unbeknownst to the minor males, Stephen used a software application to record live transmissions made by the minor boys.
Stephen admitted in the plea agreement that he traveled with one minor male, aged 11 or 12 at the time, to basketball tournaments and games, and hosted the minor male at Stephen’s lake house in Delhi, Iowa. Stephen admitted he produced a visual depiction that shows Stephen with his mouth on or near the minor male’s genitals while Stephen touched the minor male’s genitals with his hand. That visual depiction was located by investigators on a hard drive possessed by Stephen.
Stephen admitted in the plea agreement he possessed on a hard drive approximately 400 file folders with titles in the last and then first names of different minor males. All of the folders contained visual depictions of nude minor males displaying their genitalia, and some depictions involved masturbation by the minor males. The visual depictions fell into three different genre: (1) nude minor males secretly recorded in various bathrooms; (2) still images and videos of minor males taken by the minors themselves and depicting the minors masturbating and/or displaying their genitalia – these minors were persuaded, induced, or enticed by Stephen to produce these visual depictions; and (3) visual depictions produced by Stephen of minor males unconscious with their pants pulled down and exposed. In some of the depictions in the third category, Stephen recorded himself touching the genitals of unconscious victims. Some of the file folders have only one category of visual depictions, while some have all three.
Stephen admitted in the plea agreement he used a hidden camera device to secretly record several nude boys in hotel rooms in Ankeny and Illinois. Stephen placed the recording device in hotel bathrooms pointed toward the shower area, so that it recorded minor males coming in and out of the shower. None of the minor males were aware they were being recorded.
Sexual exploitation of a child is punishable by a mandatory minimum sentence of 15 years imprisonment and a maximum sentence of 30 years imprisonment. Possession of child pornography is punishable by a maximum sentence of 10 years imprisonment. Transportation of child pornography is punishable by a mandatory minimum sentence of 5 years imprisonment and a maximum sentence of 20 years imprisonment. The sentences for each count could be ordered to run consecutively, meaning one after another, or concurrently, meaning at the same time. The maximum sentence Stephen could be ordered to serve is 180 years imprisonment. By statute, Stephen cannot receive a sentence less than 15 years imprisonment.
The Iowa Division of Criminal Investigation and the Federal Bureau of Investigation investigated this matter. The case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.