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29 November 2018
U.S. Attorney Attends Rural and Tribal Elder Justice SummitRead the Press Release
Des Moines, IA – United States Attorney Ron Parsons attended the Rural and Tribal Elder Justice Summit in Des Moines, IA, on November 14-15, 2018. The Summit highlighted innovative practices, available resources, and ongoing initiatives to enhance the ability of elder justice professionals to more robustly respond to elder abuse and support victims in rural and tribal communities. The Summit opened with remarks from Acting Attorney General Matthew Whitaker and Antoinette Bacon, National Elder Justice Coordinator and Associate Deputy Attorney General.
As part of the event, U.S. Attorney Parsons moderated a panel discussion entitled Showcasing the Strength of Tribal Communities, which featured promising practices used by elder justice professionals in responding to elder abuse in tribal communities. Panel members included Robert Blancato, National Coordinator of the Elder Justice Coalition; Jacque Gray, Director of the National Indigenous Elder Justice Initiative; Marcia Hall, Adult Protection Services Representative for the Shoshone-Bannock Tribes; Cynthia LaCounte, Director of the Office for American Indian, Alaska Native & Native Hawaiian Programs, Administration for Community Living/Administration on Aging, U.S. Department of Health and Human Services; and Wilson Wewa, Jr., Senior Wellness Coordinator for the Warm Springs Tribe in Oregon.
Elder justice refers to a society’s response to elder abuse, which includes physical abuse, caregiver neglect, financial exploitation, psychological abuse, sexual abuse, and abandonment. Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past February the Attorney General announced the largest elder fraud enforcement action in American history, charging more than 200 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov. Additional elder justice resources, training, and outreach materials can be found at the Elder Justice Website (at www.elderjustice.gov).
Two Previously Deported Aliens Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that two previously deported aliens were indicted separately on November 28, 2018, by a federal grand jury for illegal re-entry into the United States.
According to United States Attorney David J. Freed, Savino Solano, age 28, of Honduras, was previously deported from the United States to Honduras in July 2014. He is alleged to have illegally re-entered the United States sometime after July 2014, and was found in the United States in Luzerne County, Pennsylvania after eluding examination or inspection by immigration officers.
Solano faces a maximum penalty of ten years’ imprisonment, a term of supervised release following imprisonment, and a fine.
Ottoniel Chavarria-Vicente, age 37, of Guatemala, was previously deported from the United States to Guatemala in April 2009. He is alleged to have illegally re-entered the United States sometime after April 2009, and was found in the United States in Adams County, Pennsylvania after eluding examination or inspection by immigration officers.
Under federal law, Chavarria-Vicente face a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine.
These cases were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Special Assistant United States Attorney James T. Clancy is prosecuting the cases.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two Practitioners Sentenced for Drug Crimes in Connection with HOPE ClinicRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that two practitioners were sentenced today by United States District Court Judge Irene Berger for drug crimes in connection with the HOPE Clinic. Stuart praised the investigation conducted by the United States Food and Drug Administration – Office of Criminal Investigations, the United States Department of Health and Human Services - Office of Inspector General, Internal Revenue Service – Criminal Investigations, the West Virginia State Police, the Kentucky State Police, the Kentucky Board of Pharmacy, Appalachia HIDTA, the Federal Bureau of Investigation, and the Drug Enforcement Administration.
“Healthcare professionals that contribute to the drug epidemic, must be held accountable,” said United States Attorney Mike Stuart. “Again, a drug dealer is a drug dealer, whether they are a street dealer, cartel leader or they wear a lab coat.”
Karl O’Dell, 62, a pharmacist and former owner of Boyd County Pharmacy in Ashland, Kentucky, was sentenced to 6 months imprisonment for a conspiracy to misbrand oxycodone and hydrocodone. O’Dell was also ordered to pay a $5,000 fine and serve one year of supervised release following his term of imprisonment during which he is prohibited from working as a pharmacist. O’Dell also agreed to a civil settlement with the United States for the total gross proceeds he earned as a result of the conspiracy for $42,054.45.
O’Dell admitted that he conspired to misbrand oxycodone and hydrocodone and introduce them into interstate commerce when he manufactured compounded oxycodone and hydrocodone not for medically legitimate purposes and outside the course of professional practice for customers of HOPE Clinic in anticipation of prescriptions written by HOPE Clinic practitioners. O’Dell admitted that in furtherance of the conspiracy, on two separate occasions, once in July 2014 and once in August 2014, he received prescriptions for two different customers of HOPE Clinic written by two different practitioners at HOPE Clinic each for 120 oxycodone 32 mg compounded capsules and that he dispensed the capsules to the customers knowing that there was no medically legitimate need for the compounded prescriptions.
In imposing the O’Dell’s sentence, Judge Berger stated that O’Dell’s “creative conspiracy” with the HOPE Clinic and his conduct made it possible for HOPE Clinic to continue to operate “like a pill mill” while other pharmacies were refusing to fill HOPE Clinic prescriptions and that O’Dell was an “integral link” in the conspiracy. The Court further noted that during O’Dell’s twenty-month participation in the conspiracy, at no point did his conscience or his oath stop him from participating but instead, he compounded to evade oversight and in doing so his conduct was more like a drug-trafficker.
Assistant United States Attorney Monica D. Coleman handled the prosecution of O’Dell.
Teresa Emerson, 59, of Bristol, Virginia, was sentenced to three years of probation for aiding and abetting obtaining a controlled substance by fraud. Emerson was also order to complete 100 hours of community service. Emmerson further agreed to surrender her DEA registration as part of her plea agreement with the United States.
Emerson worked as a licensed family nurse practitioner at the HOPE Clinic in Wytheville, Virginia, where she was authorized to write prescriptions for controlled substances for legitimate medical purposes in the usual course of professional practice. Emerson admitted that on February 4, 2015, while working at the clinic, she signed a prescription for 145 oxycodone compound 32 mg to patient J.W. that was not for a legitimate medical purpose in the usual course of professional medical practice. Emerson admitted that she simply signed the prescription for what J.W. had previously been prescribed despite the fact that J.W. had at least three abnormal drug screens including testing positive for drugs she had not been prescribed and testing negative for drugs that she was prescribed. Emerson further admitted that J.W.’s chart reflected that she had admitted to getting drugs off the street and during one of her visits, a staff member noted “track marks on her right arm.” During the plea hearing, Emerson admitted that despite these “red flags” she did not discuss the possibility of addiction with J.W. and that J.W.’s medical records did not support the initial prescription for pain medicine or any of the subsequent prescriptions for pain medicine. After receiving the prescription provided to her by Emerson on February 4, 2015, Emerson admitted that J.W. filled the prescription for the oxycodone at a pharmacy in Gilbert, Mingo County, West Virginia. J.W. has since admitted to being an addict and seeking the pills from HOPE Clinic for the purpose of feeding her addiction.
In imposing the sentence, the Court noted that as a nurse practitioner, Emerson prescribed oxycodone and other controlled substances under a supervising physician. The Court further noted that while there were no legal victims to the crime, there were victims in that HOPE Clinic and Ms. Emerson, through working there, put opioids on the street, fed people’s addictions, and that patients coming to HOPE Clinic were not receiving legitimate medical care.
Assistant United States Attorneys Monica D. Coleman and Steven I. Loew handled the prosecution of Emerson.
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SDWVNews and USAttyStuart
Two Men Sentenced to Federal Prison for Their Roles in Drug Conspiracy Orchestrated Through the Use of Contraband Phones in PrisonRead the Press Release
Charleston, South Carolina---- United States Attorney Sherri A. Lydon announced today that Ignacio Sandoval-Acosta, 47, a Mexican citizen currently serving a sentence for drug trafficking in the South Carolina Department of Corrections, and Scott Terrill Hipp, 27, of Goose Creek, South Carolina, were sentenced to federal prison for conspiring to possess with intent to distribute and to distribute methamphetamine.
Evidence presented to the court showed that Sandoval-Acosta, Hipp, and others were involved in a drug trafficking organization that was responsible for importing large quantities of crystal methamphetamine, as well as other drugs, from Mexico for distribution in South Carolina and elsewhere. Sandoval-Acosta coordinated shipments of methamphetamine, cocaine, heroin, and marijuana through the use of a contraband cell phone while incarcerated in the South Carolina Department of Corrections. During the course of the investigation, agents seized one package containing 886 grams of crystal methamphetamine that had been shipped to Hipp from Arizona. Agents later seized a package containing 853 grams of crystal methamphetamine that Sandoval-Acosta had arranged to have shipped.
Senior United States District Judge Margaret Seymour sentenced Sandoval-Acosta to 188 months in federal prison, to be followed by 5 years of court-ordered supervision, while Hipp received a sentence of 120 months in federal prison, also to be followed by 5 years of court-ordered supervision. Sandoval-Acosta’s sentence will not begin until he finishes serving his state sentence in 2024. There is no parole in the federal system.
The case was investigated by agents of the Drug Enforcement Administration (DEA), ICE-Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Postal Inspection Service, the South Carolina Department of Corrections, the South Carolina Law Enforcement Division (SLED), the Charleston County Sheriff’s Office, and the City of Charleston Police Department. Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.
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Two Gang Members Convicted of Attempted Murder in Drive-By ShootingRead the Press Release
The Detroit One collaboration of local, state, and federal law enforcement has led to the convictions of two members of a Detroit street gang known as “Bandgang” for attempted murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, and discharging a firearm during and in relation to a crime of violence, announced U.S. Attorney Matthew Schneider.
Joining in the announcement was Timothy R. Slater, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Martez Bailey, 24, of Detroit, pleaded guilty before U.S. District Judge David M. Lawson. Bailey’s plea agreement calls for a sentence of 25 to 30 years in prison. Bailey’s co-defendant, and fellow Bandgang member, Khalil Wilson, 25, previously pleaded guilty for his role in the drive-by shooting. Wilson’s plea agreement also calls for a sentence of 25 to 30 years in prison.
According to court records, Bailey and Wilson were both part of Bandgang, a local street gang on the west side of Detroit. On June 21, 2016, Bailey and Wilson drove to Biltmore Street in Detroit and fired repeatedly into a house, hoping to kill two rival gang members. Bailey fired a .45 caliber handgun repeatedly while Wilson unloaded an Uzi with an extended magazine capable of holding 50 rounds. A woman in the house unrelated to the gangs was severely injured in the shooting. The attempted murder stemmed from a dispute with two rival gangs, Trust No One (TNO) and Too Much Cash (TMC), prompted, in large part, by jealously over credit card fraud, as well as an earlier shooting by Bandgang members in February 2016 that left a five-year-old girl permanently disabled.
“This type of credit card fraud and identity theft is actually a deadly crime, because gangs are using extreme violence to protect their illegal income,” United States Attorney Matthew Schneider said. “But if gangs in Michigan think they will get off easy, they are wrong - several gang members have been sentenced to a decade or more in prison for credit card fraud.”
This case is the latest in the FBI Violent Gang Task Force’s investigation into Bandgang. In total, twenty-four members and associates of the gang have been charged in sixteen different cases and have received sentences ranging from 36 to 154 months on charges related to attempted murder, credit card fraud, identity theft, firearm offenses, and obstruction of justice. Four different credit card labs have been seized from Bandgang members during the investigation (not counting individual skimmers and embossers), and over 15,000 stolen credit card accounts have been linked to Bandgang members.
The case was prosecuted by Assistant United States Attorneys Shane Cralle and Terrence Haugabook.
Two Charged following Armed Robbery of Citizens Bank in CraftonRead the Press Release
PITTSBURGH, PA – Two residents of Pittsburgh, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on charges stemming from an armed bank robbery, United States Attorney Scott W. Brady announced today.
The three-count Indictment, returned on Nov. 27 and unsealed today, named Brent Richards, 32, as the defendant at Counts One and Two, and Melissa Kane, 47, as the defendant at Count Three.
According to the Indictment, on or about January 8, 2018, Richards robbed the Citizens Bank at 31 Foster Avenue, Pittsburgh, Pennsylvania 15205, of $10,003. Richards is alleged to have brandished a firearm in the commission of the robbery. The Indictment names Kane as an accessory after the fact for helping to protect Richards from apprehension.
For Richards, the law provides for a maximum total sentence of 25 years in prison, a fine of $250,000, or both, for the armed bank robbery count. Additionally, the law provides for a minimum sentence of not less than five years in prison and up to life, a fine of $250,000, or both, for the firearms offense. For Kane, the law provides for a maximum total sentence of 12.5 years in prison, a fine of $125,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorneys Rebecca L. Silinski and Timothy M. Lanni are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Crafton Borough Police Department, the Allegheny County Sherriff’s Office, and the West Mifflin Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tulare County Man Indicted for Theft of Social Security Income Benefit FundsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Reynaldo Villalobos, 37, of Tulare, charging him with theft of public money and making false statements regarding right to Social Security benefits, U.S. Attorney McGregor W. Scott announced.
According to court documents, Reynaldo Villalobos applied for Social Security Income benefits for his son in 2002. In 2007, his son moved out of the country and has lived in Mexico ever since, making him ineligible for Social Security Income benefits. Nonetheless, Reynaldo Villalobos, as his son’s designated representative payee, never informed the Social Security Administration about the move and continued to fraudulently represent to that agency that his son was still living in the United States in order to continue to collect the Social Security Income benefits. Between August 2007 and September 2017, Reynaldo Villalobos collected at least $80,872 in Social Security Income to which he and his son were not entitled.
This case is the product of an investigation by the Social Security Administration, Office of Inspector General. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.
If convicted, Villalobos faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Three Senior Executives at Defense Contracting Firms Charged with Scheme to Defraud the U.S. Military in Connection with $8 Billion Troop Supply Contract and with Violating the Iran Sanctions RegimeRead the Press Release
Three men were charged in an indictment returned Nov. 27 for their roles in a scheme to defraud U.S. Military contracts in Afghanistan, engaging in illegal commerce in Iran, and laundering money internationally. Their conduct was in connection to two multi-million dollar contracts to provide supplies and logistical support to U.S. troops in Afghanistan.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Patrick J. Lechleitner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C. and Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko made the announcement.
Abul Huda Farouki, 75, of McLean, Virginia; his brother Mazen Farouki, 73, of Boyce, Virginia; and Salah Maarouf, 71, of Fairfax, Virginia, were each charged in an indictment filed in the District of Columbia with two counts of major fraud, one count of conspiracy to violate the restrictions on doing business with Iran, four counts of substantive violations of those restrictions, and one count of conspiracy to commit international money laundering. The defendants made their initial appearance on Nov. 29 before Judge G. Michael Harvey. All were arraigned and pleaded not guilty. The next hearing is scheduled for Dec. 6 before Judge Trevor N. McFadden.
The indictment alleges that Abul Huda Farouki was the chief executive officer of Anham FZCO, a defense contractor based in the United Arab Emirates (UAE), which maintained offices in Dubai, UAE, Jordan and the United States. Mazen Farouki was the President and Founder of Unitrans International Incorporated, an international logistics company with close ties to Anham. Defendant Salah Maarouf operated a company that procured goods and services for Anham.
According to the indictment, on June 22, 2012, the U.S. Department of Defense awarded Anham an $8 billion contract to provide food and supplies to U.S. troops in Afghanistan known as the “SPV-A contract.” As part of the bidding process, the defendants allegedly caused Anham to represent that it would build two warehouses in Afghanistan, which Anham would use to provide supplies to U.S. forces. The indictment alleges that the defendants schemed to defraud the Department of Defense in connection with the SPV-A contract by submitting bids that contained knowingly false estimates of the completion dates for the warehouses and by providing the government with misleading photographs intended to convey that Anham’s progress on the warehouses was further along than it actually was. Specifically, the indictment alleges that, in February of 2012, the defendants and others caused Anham employees to transport construction equipment and materials to the proposed site of one of the warehouse complexes to create the false appearance of an active construction site. Members of the conspiracy then photographed the site, provided the photographs to the Department of Defense, and then largely deconstructed the staged construction site.
The SPV-A contract also required bidders to certify that they abide by the Iran Sanctions Act, which prohibits U.S. citizens and companies from engaging in commercial activity in Iran. According to the indictment, the defendants conspired to increase Anham’s profits in connection with the SPV-A contract by shipping warehouse building materials to Afghanistan via Iran, instead of using more costly, but legal, routes. According to the indictment, after learning that the Wall Street Journal was planning to run a story detailing Anham’s practice of shipping materials through Iran, Abul Huda Farouki sent an email to a senior Department of Defense official, which falsely claimed that senior management at Anham had been unaware that the transshipments through Anham had taken place.
In addition to the SPV-A contract, the indictment alleges that the defendants schemed to defraud the Department of Defense with respect to the National Afghan Trucking (NAT) contract, which was a $984 million contract that required Anham to supply trucking services to the U.S. Military in Afghanistan. As with the SPV-A contract, the NAT contract required bidders to certify compliance with laws concerning sanctions placed on Iran. According to the indictment, rather than ship trucks to Afghanistan using legal but relatively expensive routes, the defendants conspired to cut costs by transporting vehicles through Iran. The indictment alleges that the defendants’ conduct violated laws prohibiting fraud, commercial activity with Iran, and international money laundering.
The charges in the indictment are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by HSI Washington, DC and by investigators at SIGAR. Trial Attorneys James Gelber and Danny Nguyen of the Criminal Division’s Fraud Section are prosecuting the case.
Three Greenville Men Sentenced on Firearms Charges After Each Found with a Handgun in the Same CarRead the Press Release
RALEIGH — The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, United States District Judge Terrence W. Boyle sentenced Willie Lee Smallwood, Jr., 29, of Greenville to 30 months’ imprisonment, followed by 3 years of supervised release; Keyonta Maurice Powell, 29, of Greenville to 60 months’ imprisonment, followed by 3 years of supervised release; and Kevin Rashawn Ebron, 31, of Greenville, to 42 months’ imprisonment, followed by 3 years of supervised release.
The defendants were named in a four-count Indictment on April 3, 2018. On June 6, 2018, EBRON pled guilty to Felon in Possession of a Firearm. POWELL and SMALLWOOD pled guilty to separate counts of the same offense on June 26, 2018, and July 31, 2018, respectively.
In late October of 2016, members of the Greenville Police Department’s Violent Criminal Apprehension Team set out to locate and arrest KEYONTA MAURICE POWELL on outstanding state warrants. In an effort to locate POWELL, investigators obtained an order allowing access to real-time GPS data from POWELL’s phone.
During the early morning hours of November 1, 2016, investigators located POWELL in a car at a McDonalds drive-thru in Greenville. SMALLWOOD was driving the car, in which POWELL, EBRON, and a third man were passengers. Law enforcement vehicles boxed in the car in the drive-thru lane, and officers removed each of the men from the vehicle. After POWELL acknowledged to officers that he possessed a firearm, they recovered an Amadeo Rossi .38 caliber revolver from his pants pocket. On the rear floorboard in front of where EBRON had been sitting, officers found a Ruger P90 .45 caliber pistol. Lastly, a search of the area under Smallwood’s driver’s seat revealed a loaded Taurus 9mm handgun.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
The investigation of this case was conducted by the Greenville Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney Jake D. Pugh handled the prosecution of this case for the government.
The U.S. Attorney’s Office Announces the Upcoming DHS Bombing Prevention Awareness Course, Dec. 5th and 6th in St. ThomasRead the Press Release
U.S. Attorney Gretchen C.F. Shappert announced today the upcoming Department of Homeland Security (DHS) Bombing Prevention Awareness Course (BPAC) that will be offered on both Dec. 5th and 6th at the VITEMA offices on St. Thomas. Both courses run from 9:00 a.m. to 5:30p.m. The BPAC provides participants with training regarding general bombing prevention measures from improvised explosive device (IED) construction and classification through protective measures for potential bombing incidents. The day-long course, taught by Explosive Specialists from The Transportation Security Administration, enhances the participants’ understanding of the IED threat and provides valuable information for law enforcement and first- responders regarding how to mitigate the impact of a bombing incident. The training will also cover issues associated with potential terrorist attacks, suspicious behaviors, and protective measures available to law enforcement. “We are grateful to DHS for making this valuable training available to Territory law enforcement personnel”, said U.S. Attorney Shappert. “No one likes to think that bomb prevention awareness training is necessary, but it is. Planning and preparation are critical to preventing these tragedies and to responding effectively when unforeseen incidents occur. At the U.S. Attorney’s Office, we encourage all of our law enforcement partners to take advantage of this valuable opportunity for high-quality training.”
Online registration can be completed through the FEMA Center for Domestic Preparedness. Students require a FEMA Student Identification (SID) number to register. Students who do not have a FEMA SID may register at https://cdp.dhs.gov/femasid/register. Students will also be permitted to register for the course in person at VITEMA Dec 5th and Dec 6th. For more information, please visit http://www.dhs.gov/obp.
Texas Man Indicted for Conspiracy to Commit Computer FraudRead the Press Release
ALBANY, NEW YORK – A federal grand jury has indicted Tyler King, age 29, of Grand Prairie, Texas, for conspiring to access and install malicious software on a technology company’s computer network
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to the indictment, King conspired with Ashley St. Andria to gain unauthorized access to the computer network of a New York-based technology company. The conspiracy involved creating unauthorized network user accounts to access emails and files of senior company officials, and installing malicious software designed to circumvent security measures and permit the monitoring and alteration of the company’s records.
The charge in the indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
King’s alleged co-conspirator, Ashley St. Andria, age 29, of Irving, Texas, pled guilty to computer fraud on August 15, 2018. St. Andria is scheduled to be sentenced on April 15, 2019 in Albany by Senior United States District Judge Thomas J. McAvoy.
The case is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Tesuque Pueblo Man Sentenced for Child Abuse ConvictionRead the Press Release
ALBUQUERQUE – Agoyo Vigil, 42, an enrolled member and resident of Tesuque Pueblo, N.M., was sentenced today in federal court in Albuquerque, N.M., to two years of probation for his conviction on a felony child abuse charge.
On Aug. 31, 2018, Vigil pled guilty to an information charging him with child abuse. In entering the guilty plea, Vigil admitted that on Dec. 31, 2015, on the San Ildefonso Pueblo, in Santa Fe County, N.M., he became involved in a family argument after consuming beer. During this argument, Vigil grabbed and pushed the 13-year-old victim up against a wall with his hand on the victim’s throat.
This case was investigated by the Albuquerque office of the FBI, BIA’s Office of Justice Services and the Tesuque Pueblo Tribal Police Department and was prosecuted by Assistant U.S. Attorney Nicholas J. Marshall.
Tax Preparer Pleads Guilty for Fraudulent Scheme to Steal over $1 Million from His ClientsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that TOM SHIN pled guilty to charges of aiding the preparation of a false tax return and wire fraud. SHIN pled guilty before U.S. District Judge Valerie E. Caproni.
U.S. Attorney Geoffrey S. Berman said: “Tom Shin admitted today that he violated his clients’ trust by filing false tax returns on their behalf in a scheme to defraud his clients of more than $1.3 million that was intended to pay taxes owed to the federal and state governments. Shin will now have to answer for his actions.”
According to the allegations in the Complaint and Indictment to which SHIN pled guilty:
SHIN was hired to prepare joint federal and state tax returns for two individuals (the “Clients”) for tax year 2017. SHIN showed the Clients completed tax return forms indicating that the Clients owed approximately $1.3 million in taxes. However, SHIN actually filed false returns on behalf of the Clients without their knowledge, which concealed the Clients’ tax liability. SHIN then, in connection with applications for extensions of time to file his personal tax returns, directed tax authorities to withdraw approximately $1.3 million from the Clients’ bank account, and then filed personal tax returns seeking an approximately $1.3 million refund. The net result of the alleged scheme would have been a transfer of approximately $1.3 million from the Clients’ bank account to SHIN.
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SHIN, 36, of Staten Island, New York, pled guilty to one count of aiding the preparation of a false tax return, which carries a maximum penalty of three years in prison, and one count of wire fraud, which carries a maximum penalty of 20 years in prison. As a condition of his plea, SHIN also agreed to forfeit $335,894.
SHIN is scheduled to be sentenced by Judge Caproni on March 4, 2019, at 12:00 p.m.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman thanked the Internal Revenue Service and the New York State Department of Taxation and Finance for their outstanding work.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Brett M. Kalikow is in charge of the prosecution.
Tax Lawyer Indicted for Obstructing IRS Investigation into Tax Returns that Sought More than $100 Million in RefundsRead the Press Release
SANTA ANA, California – A federal grand jury has charged a tax lawyer in a three-count indictment that alleges she attempted to obstruct a federal investigation into millions of dollars in refunds claimed in tax returns prepared by her accounting firm.
Margaret Quick, 63, a former resident of Newport Coast who currently lives in Paradise Valley, Arizona, was charged Wednesday with two counts of attempting to interfere with the administration of federal tax laws and one count of making false statements to the Internal Revenue Service. Quick is a Pennsylvania-licensed tax attorney and former partner at the Irvine-based Quick Rios & Associates, According to public records, Quick has a juris doctorate and obtained a masters of law degree with an emphasis in taxation.
According to the indictment, Quick tried to obstruct the IRS investigation into the Quick Rios-prepared tax returns that sought more than $100 million in total refunds via the IRS’s Telephone Excise Tax Refund (TETR) program. TETR was designed to compensate individuals and businesses that paid excess telephone excise taxes from 2003 to 2006.
The indictment alleges that Quick directed others to alter telephone invoices and other TETR-related documents, then providing those fraudulent documents to the IRS to support the TETR-based tax returns that her accounting firm had prepared and filed. The indictment also alleges that Quick lied to the IRS via email and in-person, when she made false statements to IRS agents during in-person meetings in 2011 and 2012. Quick also is charged with attempting to influence a witness’s testimony, both by email and telephone, in July 2018.
The other Quick Rios partner, certified public accountant Antonia Rios, pleaded guilty in October 2017 to obstructing the IRS investigation. During her change-of-plea hearing, Rios admitted that Quick Rios prepared federal tax returns for approximately 200 clients – including a number of Fortune 500 companies. Rios admitted that under Quick Rios’ fee arrangements with its clients, she and Quick stood to make millions of dollars in fees if the IRS ultimately paid out the TETR-based refunds. The IRS negotiated settlements with many of the firm’s clients. Rios is scheduled to be sentenced by United States District Judge Andrew J. Guilford on February 25.
Quick will be summonsed to appear in United States District Court in Santa Ana for an arraignment, which will likely be scheduled for early 2019.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If convicted of all three charges in the Indictment, Quick would face a statutory maximum sentence of 11 years in federal prison and up to $750,000 in fines.
This case is being investigated by IRS Criminal Investigation.
This case is being prosecuted by Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office.
Tallahassee Man Sentenced to 180 Months for Production of Child PornographyRead the Press Release
TALLAHASSEE, FLORIDA – Milton Sumrell, 43, of Tallahassee, was sentenced today in the U.S. District Court in Tallahassee to 180 months after pleading guilty on August 23, 2018, to production of child pornography. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In late January 2018, A.F., a 16-year-old girl from Trumann, Arkansas, was reported missing from her home. Law enforcement officers recovered a computer A.F. used at her school and identified multiple sexually explicit online chats between A.F. and individuals believed to be adult males. One of the accounts with whom A.F. had been chatting through the Google messenger application, Google Hangouts, was subscribed to Sumrell. During conversations between A.F. and Sumrell in late October 2017, the two discussed A.F. leaving her home to live with Sumrell. Law enforcement officers visited Sumrell’s residence in an attempt to locate A.F, who was not present there but was later found. Agents seized Sumrell’s laptop computer and cellular telephone, which had images of child pornography. His Google account also contained videos of child pornography.
U.S. Attorney Canova said, “Tragically, child predators use the Internet to reach their vulnerable victims. Nothing is more important than protecting children from exploitation.”
“This predator’s criminal acts will have life-long effects on a child, and now he is being held accountable,” said HSI Tampa Special Agent in Charge James C. Spero. “This case also highlights the importance of federal, state, and local law enforcement agencies working together to make our communities safer.”
“The FBI Jacksonville Division is committed to identifying predators who target the children in this community, and we will continue to provide our law enforcement partners with resources as needed to bring to justice those who commit these heinous acts,” said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division.
FDLE Special Agent in Charge, Mark Perez of the Tallahassee Regional Operations Center, said: “FDLE will continue to be relentless in its goal to apprehend individuals who prey on children. I sincerely appreciate the efforts and time of all of our federal, state, and local partners involved in this case.”
The case was investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Leon County Sheriff’s Office, and the Trumann Police Department (Arkansas). Assistant United States Attorney Michael J. Harwin prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Suffield Man Involved in Stock "Pump and Dump" Scheme is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CHRISTIAN MEISSENN, also known as “Christian Nigohossian,” 46, of Suffield, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to three months of imprisonment, followed by three years of supervised release, for his role in a securities fraud scheme.
The sentence was based, in part, on Meissenn’s serious health condition. Judge Meyer ordered Meissenn to serve his three-year term of supervised release in home confinement.
According to court documents and statements made in court, between approximately 2009 and July 2016, Meissenn and others conspired to defraud investors through a stock “pump and dump” scheme. Meissenn and his co-conspirators induced investors to purchase securities by making false and misleading representations in calls, emails and press releases concerning the securities and the issuing companies, thereby causing the price of those securities to become falsely inflated. The issuing companies, most of which were essentially shell companies controlled by Meissenn’s associates, included Terra Energy Resources Ltd. (stock symbol “TRRE”); Mammoth Energy Group, Inc. (stock symbol “MMTE”), a company that later became Strategic Asset Leasing Inc. (stock symbol “LEAS”); Trilliant Exploration Corporation (stock symbol “TTXP”); Electric Motors Corporation (stock symbol “EMCO”); Hermes Jets, Inc. (stock symbol “HRMJ”), which later became Continental Beverage Brands Corporation (stock symbol “CBBB”); and Fox Petroleum, Inc. (stock symbol “FXPT”). The conspirators then sold positions in those securities that were held by conspirators and their designees at the falsely inflated prices, thereby enriching the members of the conspiracy.
As part of the scheme, attorneys signed false and misleading opinion letters that were designed to provide assurances to securities transfer agents and prospective investors. The opinion letters falsely certified that the attorneys had adequately reviewed corporate records and filings for the issuing companies and were satisfied with the adequacy of the companies’ public disclosures.
After selling their own shares at a profit, the conspirators allowed the price of the securities to fall, leaving investors with worthless and unsalable stock. As a result, more than 12,000 victim investors collectively lost nearly $19 million.
Between 2011 and 2015, Meissenn earned approximately $4.4 million through this scheme. He failed to report this income to the Internal Revenue Service, resulting in a tax loss to the government of $1,527,834.
The investigation revealed that Meissenn also failed to file tax returns in 2009 and 2010. In connection with a Connecticut Department of Banking investigation in 2013, Meissenn signed and filed a notarized affidavit falsely stating that he had a negative net worth and had not filed taxes due to lack of income.
On November 8, 2016, Meissenn pleaded guilty to one count of conspiracy to commit mail and wire fraud, and one count of tax evasion.
Judge Meyer ordered Meissenn to pay restitution of $5,301,694 to victims, and $1,527,834 to the IRS.
The government has received victim impact statements from more than 800 victims of this scheme.
Meissenn, who is released on bond, was ordered to report to prison on January 10, 2019.
Six other individuals pleaded guilty to various offenses stemming from this scheme.
On September 27, 2017, Damian Delgado, also known as “Michael Neumann,” of Orlando, Florida, was sentenced to 84 months of imprisonment. On May 7, 2018, Brian Ferraioli, of Sayville, N.Y., and Thomas Heaphy, Jr., of East Moriches, N.Y., were each sentenced to 72 months of imprisonment for their roles in this scheme and an unrelated investment fraud scheme. On July 13, 2018, William Lieberman of Boca Raton, Florida, was sentenced to 84 months of imprisonment.
Two attorneys involved in the scheme, Corey Brinson, of Hartford, and Diane Dalmy, of Denver, were each sentenced to 36 months of imprisonment on April 13, 2017, and May 15, 2018. However, Dalmy faces a resentencing proceeding on December 7, 2018, because she misled the court about her financial assets, and hid approximately $47,000 in cash to avoid paying restitution to victims.
This investigation was conducted by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division, with assistance from the Connecticut Department of Banking, U.S. Postal Inspection Service, and Hartford and Stamford Police Departments. The case was prosecuted by Assistant U.S. Attorney Avi M. Perry.
St. Albans Man Sentenced for Gun and Counterfeit CrimesRead the Press Release
CHARLESTON, W.Va. – A St. Albans man was sentenced today for gun and counterfeit crimes, announced United States Attorney Mike Stuart. Joshua Hicks, 35, was sentenced to 60 months in prison by United States District Judge Irene C. Berger. Stuart praised the investigation conducted by the St. Albans Police Department, the United States Secret Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“Several prior felony convictions. Still carrying guns. And getting counterfeit currency to purchase drugs,” said United States Attorney Mike Stuart. “It is with a great sense of urgency that we continue our efforts to get violent offenders off our streets. More to come.”
In August, Hicks pled guilty to being a felon in possession of a firearm and to possession of counterfeit United States currency. Hicks admitted that he had several prior felony convictions and that he possessed four firearms on different occasions. He also admitted that he purchased counterfeit currency on the internet and he intended to use the counterfeit currency to purchase drugs.
Assistant United States Attorney Steve Loew handled the prosecution.
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.
SDWVNews and USAttyStuart
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South Texas Doctor Sentenced to Five Years in Prison for Role in a Fraudulent Medical ClinicRead the Press Release
A Houston, Texas doctor was sentenced to 60 months in prison followed by three years of supervised release today for his role in a fraudulent medical clinic that ran costly, unnecessary diagnostic tests.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter of the Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Dallas Regional Office and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Faiz Ahmed, M.D., 66, of Houston, was sentenced by U.S. District Judge Gray H. Miller of the Southern District of Texas. Judge Miller also ordered the defendant to pay $4,192,156 in restitution. Ahmed was found guilty following a six-day trial in 2017 of one count of conspiracy to commit healthcare fraud and seven counts of healthcare fraud.
Ahmed and eight co-defendants engaged in a conspiracy to falsely bill Medicare and Medicaid for medically unnecessary diagnostic tests. According to evidence admitted at trial, Ahmed agreed to approve the unnecessary testing and allowed his physician number to be used to fraudulently bill the Medicare program. As a result of the overall conspiracy, Medicare and Medicaid were billed approximately $13 million and paid out approximately $9 million in false claims.
Eight others have pleaded guilty for their respective roles including Mkrtich Yepremian, 61; Bompa Mbokoso Mompiere, 59; Michael Wayne Wilson, 49; Jermaine Doleman, 41; Harding Dudley Ross, 64; Eric Johnson, 64; Ann Marie Rocha, 51; and Eddie Wayne Taylor, 59, all of Houston. These defendants have all been sentenced.
This case was investigated by the FBI, HHS-OIG and the Texas Attorney General’s Medicaid Fraud Control Unit. Trial Attorney Jason Knutson of the Criminal Division’s Fraud Section and Special Assistant U.S. Attorney Suzanne Bradley formerly of the Southern District of Texas prosecuted the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than 14 billion.
South Florida Pharmacist Sentenced to over Six Years in Prison for Role in $5 Million Compounding Pharmacy SchemeRead the Press Release
A South Florida pharmacist was sentenced to 78 months in prison today for his role in a $5 million compounding pharmacy scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office, Special Agent in Charge John F. Khin of the Department of Defense Office of Inspector General – Defense Criminal Investigative Service’s (DCIS) Southeast Field Office and Florida Attorney General Pam Bondi made the announcement.
Stephen Chalker, 42, of Wellington, Florida, was sentenced by U.S. District Judge Donald M. Middlebrooks of the Southern District of Florida, who also ordered Chalker to pay $4,980,679.50 in restitution jointly and severally and a forfeiture money judgment of $244,134. After a four-day trial before Judge Middlebrooks, Chalker was convicted by a jury in West Palm Beach, Florida, on Sept. 7, 2018 of one count of conspiracy to commit health care fraud and two counts of health care fraud.
According to evidence presented at trial, from approximately September 2014 to August 2016, Chalker engaged in a scheme to defraud Medicare, TRICARE and Medicaid by submitting false and fraudulent claims for compounded drugs and other prescription medications that were not medically necessary and/or never provided. The evidence established that in his role as the licensed pharmacist-in-charge of Pop’s Pharmacy, a now-defunct pharmacy in Deerfield Beach, Florida, Chalker submitted or caused the submission of high-dollar claims for expensive pain and scar creams that patients did not want, did not need and in some cases did not receive. Chalker, as pharmacist-in-charge, created the formulas for the fraudulent compounded pain and scar creams to be filled by Pop’s Pharmacy in order to maximize profits for Pop’s Pharmacy from insurance reimbursement, and not for patient care. Chalker and his co-conspirators ran a nationwide telemarketing and telemedicine scheme in which there was no real patient-prescriber relationship or actual patient care, the evidence showed.
The evidence established that as a result of claims submitted in connection with the scheme, Medicare, TRICARE and Medicaid made payments totaling nearly $5 million.
Two other defendants have been charged in this case. Elaina Liva, 66, of Pompano Beach, Florida, pleaded guilty and was sentenced on Nov. 1, 2018 to 24 months in prison and was ordered to pay $4,980,679.50 in restitution jointly and severally. Chris Liva, 40, the owner of Pop’s Pharmacy, pleaded guilty and was sentenced on Nov. 14, 2018 to 48 months in prison and was ordered to pay $4,980,679.50 in restitution jointly and severally. (40 months of his 48-month sentence will run concurrently with a 78-month health care fraud sentence imposed on Liva on June 19, 2018 in a health care fraud case prosecuted in the Northern District of Ohio, United States v. Physicians Surgical Group, LLC et al., 14-CR-00447-ADAMS).
This case was investigated by the FBI, HHS-OIG, DCIS and the State of Florida Medicaid Fraud Control Unit. Trial Attorney Jim Hayes of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Leslie Wright of the District of Massachusetts (formerly a Fraud Section Trial Attorney) prosecuted the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
South Florida Pharmacist Sentenced to More Than Six Years in Prison for Role in $3.4 Million Compounding Pharmacy SchemeRead the Press Release
A pharmacist licensed by the State of Florida was sentenced today to 78 months in prison for her participation in a scheme involving the payment of approximately $3.4 million in fraudulent claims by TRICARE, Medicare, and private insurance programs for compounded creams that were medically unnecessary, procured through illegal kickbacks, and otherwise not eligible for reimbursement.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Special Agent in Charge John F. Khin of the Department of Defense Office of Inspector General – Defense Criminal Investigative Service (DCIS)’s Southeast Field Office made the announcement.
Marjorie Robinson, 61, of Wilton Manors, Florida, was sentenced by Chief U.S. District Judge K. Michael Moore of the Southern District of Florida. Chief Judge Moore also ordered Robinson to pay $3.4 million in restitution, jointly and severally with her co-conspirators, and to forfeit the same amount. Robinson pleaded guilty in September 2018 to one count of conspiracy to commit health care fraud.
According to admissions made as part of her plea agreement, from approximately 2013 to 2016, Robinson was a one-third owner of A.S.C. Pharmacy, Inc. (ASC), a now-defunct compounding pharmacy in Miami where Robinson worked as the pharmacist-in-charge. Under Robinson’s ownership and direction, ASC designed and manufactured compounded creams by selecting certain ingredients not based on individualized patient need, but rather to maximize financial reimbursement to ASC from government and private insurance programs. To carry out the fraudulent scheme, Robinson agreed with her co-conspirators to pay kickbacks to doctors and patient recruiters in exchange for prescriptions for ASC’s medically unnecessary compounded creams and to waive patient co-payments. As a result of fraudulent claims submitted in connection with the scheme, TRICARE, Medicare and private insurance programs paid ASC approximately $3.4 million.
Robinson was charged along with co-defendants Laszlo Teleszky, M.D., 68, of New Port Richey, Florida; Sheila Arucri, 57, of Davie, Florida; and Todd Schreier, 34, of Russell, Kentucky. Teleszky, Arcuri and Schreier each pleaded guilty to conspiracy to commit health care fraud. Teleszky and Arucri were sentenced on Nov. 27 to serve 16 months and 12 months and one day in prison, respectively. Schreier is awaiting sentencing.
Ascanio Serna Jr. and Ascanio Serna Sr., both additional co-owners of ASC, were charged separately in this case. Ascanio Serna Jr. pleaded guilty in August 2017 and was sentenced to serve 64 months in prison. Ascanio Serna Sr. pleaded guilty in August 2018 and was sentenced to serve 37 months in prison.
The FBI, HHS-OIG, and DCIS investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Trial Attorney David Snider of the Fraud Section is prosecuting the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
South American Couple Plead Guilty to Fraud ConspiracyRead the Press Release
ALEXANDRIA, Va. – A South American couple pleaded guilty today to conspiracy to commit wire and bank fraud for orchestrating a loan modification scheme.
According to court documents, Rodrigo Pardo, 46, of Argentina, and Lorena Medina, 46, of Ecuador, defrauded homeowners in Northern Virginia and mortgage lenders by promising the homeowners to assist them in obtaining loan modifications. As part of the scheme, Pardo and Medina agreed to negotiate with the homeowners’ lenders for a reduced monthly payment. Pardo and Medina then instructed clients who were current on their mortgages to stop making payments to their lenders as they had in the past, and instead make payments into accounts controlled by Medina, Pardo, or COFS, a company they controlled. At the same time, Pardo and Medina represented to their clients’ mortgage lenders that COFS was authorized to negotiate loan modifications, but concealed from the mortgage lenders that they were receiving mortgage payments from the victims. As a result, Pardo and Medina received over $140,000 in payments from their victims, which they used for personal expenses.
Pardo and Medina pleaded guilty to conspiracy to commit wire and bank fraud and face a maximum penalty of 30 years in prison when sentenced on March 1, 2009. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Robert Manchak, Acting Special Agent in Charge, Office of Inspector General for the Federal Housing Finance Agency, made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the plea. Assistant U.S. Attorney Kimberly R. Pedersen and Special Assistant U.S. Attorney Charlie Divine are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-181.
Schenectady Man Pleads Guilty to Breaking into Store and Stealing FirearmsRead the Press Release
ALBANY, NEW YORK – Christian Roman, age 24, of Schenectady, New York, pled guilty to stealing firearms from Target Sports, Inc., a federally licensed firearms dealer in Schenectady County, and to possessing, concealing, and transporting those stolen firearms.
The announcement was made by United States Attorney Grant C. Jaquith and Ashan M. Benedict, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
As part of his guilty plea, Roman admitted that on the night of October 22, 2017, he broke into Target Sports while it was closed and, with the help of Jose Fontanez, stole dozens of firearms from inside the gun store located on Saratoga Road in Glenville. The firearms included pistols, shotguns, and rifles. With the assistance of various accomplices, Roman and Fontanez spent the following two days moving the stolen firearms between various locations in Schenectady and Amsterdam, New York, including private residences, a self-storage unit, and a motel. Finally, as Roman further admitted, on October 24, 2017, he and Fontanez, with the help of yet more accomplices, transported the stolen firearms to Rochester, New York.
At sentencing on April 10, 2019 in Syracuse, Roman faces up to 20 years in prison, a maximum fine of $500,000, and up to 3 years of post-imprisonment supervised release. 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.
Jose Fontanez, age 36, of Schenectady, pled guilty earlier this year to stealing the firearms and other, related charges. He is scheduled to be sentenced on April 22, 2019.
Omar DeJesus, age 31, of Amsterdam; Dalmary Morales, age 37, of Schenectady; and Juan Saez, age 35, of Rochester, all pled guilty earlier this year for their respective roles in stealing, transporting, and possessing the firearms. DeJesus is scheduled to be sentenced on December 17, 2018. Morales and Saez are scheduled to be sentenced on April 22, 2019.
The case was investigated by the ATF, New York State Police, and the Glenville Police Department, and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Russian National Charged in Hacking Scheme Targeting Pittsburgh National Golf CourseRead the Press Release
PITTSBURGH - A Russian national has been indicted by a federal grand jury in Pittsburgh on charges of wire fraud, computer fraud and money laundering, United States Attorney Scott W. Brady announced today.
The five-count indictment, returned on Nov. 27, named Ilya Kulkov, of Barnaul, Russia, as the sole defendant.
According to the indictment presented to the Court, between January 22, 2017 and February 2, 2017, Kulkov hacked into a desktop computer located at the Pittsburgh National Golf Course in Gibsonia, Pennsylvania, from his home in Russia. Once Kulkov had control of Pittsburgh National’s computer, he engaged in a systematic pattern of internet fraud by buying and exporting products from the United States to Barnaul, Russia.
"Over the past year, we have aggressively investigated and prosecuted cyber criminals, both foreign and domestic," said U.S. Attorney Brady. "The use of computers and the internet is now part of everyone’s daily life. From our prosecution of officers of the Russia intelligence directorate to the hacking of routers in 43 countries to internet fraud targeting our elderly residents, our office will go to the ends of the earth to hold cyber criminals accountable and protect the citizens of western Pennsylvania."
The law provides for a sentence of not more than twenty years in prison, a fine of not more than $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Rochester Woman Sentenced for Her Role in Cocaine Conspiracy; Another Defendant Pleads GuiltyRead 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 Leitscha Poncedeleon, 29, of Rochester, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, was sentenced to 168 months in prison by Chief U.S. District Judge Frank P. Geraci.
In addition, Freddie Silva-Otero, 49, of Mayaguez, Puerto Rico, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine. The charge carries a minimum sentence of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Katelyn M. Hartford, who is handling the case, stated that between April 2017 and January 29, 2018, the defendants conspired with Carlos Javier Figueroa, Roberto Figueroa, Obed Torres, Jonathan Cruz Carmona, and others, to distribute cocaine.
In furtherance of the conspiracy, Poncedeleon, on numerous occasions, communicated via telephone with Freddie Silva-Otero and other individuals in Puerto Rico to coordinate the shipment of cocaine from Puerto Rico to Rochester, via the United States Postal Service. Between September 9, 2017, and January 29, 2018, Poncedeleon and other conspirators coordinated at least 25 shipments of cocaine, each containing approximately two kilograms of cocaine. Silva-Otero personally assisted with shipping six packages containing two kilograms of cocaine each to Poncedeleon and Carlos Javier Figueroa between January 16, 2018, and January 24, 2018. Poncedeleon and others sent money via the United States Postal Service and wire transfers from Rochester to Puerto Rico as payment for the cocaine. Poncedeleon also arranged for individuals in the Rochester area to receive the packages of cocaine. Once the packages arrived in Rochester, the individuals would contact Poncedeleon who would then notify co-conspirator Carlos Javier Figueroa.
Poncedeleon, Carlos Javier Figueroa, Roberto Figueroa, and others, maintained a residence located at 292 Barrington Street in Rochester for the purposes of storing, manufacturing, processing, and distributing cocaine. At that location, Poncedeleon, Carlos Javier Figueroa, Roberto Figueroa, and others regularly prepared and packaged cocaine for distribution. On January 29, 2018, law enforcement officers executed a search warrant at the residence and recovered approximately three kilograms of cocaine, $230,060 in cash, eight firearms, and numerous rounds of ammunition.
A total of 10 defendants have been charged in connection with this conspiracy, five have been convicted, and one has been sentenced.
Today’s plea and sentencing are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives Violent Crime Task Force, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division; the Rochester Police Department, under the direction of Chief Mark Simmons; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Greece Police Department, under the direction of Chief Patrick Phelan; the Brighton Police Department, under the direction of Chief Mark Henderson; and U.S. Border Patrol, under the direction of Patrol Agent-in-Charge Gregory Johnson.
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Rochester Man Sentenced for Making False StatementsRead 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 Pernell Jackson, 56, of Rochester, NY, who was convicted of making materially false statements in a matter involving the U.S. Department of Housing and Urban Development (HUD) and the Department of Veterans Affairs (VA), was sentenced to serve 12 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that between 2009 and 2014, Jackson resided in an apartment complex in Greece, NY and received a rent reduction through an income-based HUD subsidy program. During that time period, the defendant knowingly falsified HUD income certification forms by failing to report that he had obtained VA benefits belonging to his deceased aunt, totaling $102,622.76. The investigation revealed that the VA continued to make regular payments into Jackson’s aunt’s bank account for approximately seven years following her death. The defendant, who had access to the account, regularly withdrew the money between 2007 and 2015. The fraud was discovered during a VA audit, which led to an investigation by VA and HUD Offices of the Inspector General.
The sentencing is the result of an investigation by the U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, under the direction of Special Agent-in-Charge Sean J. Smith, Northeast Field Office, and the Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent-in-Charge Brad Geary.
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Rochester Man Pleads Guilty to Machinegun ChargeRead 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 Luis Garcia-Canales, 29, of Rochester, NY, pleaded guilty to transfer of a machinegun before U.S. District Judge David G. Larimer. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Katelyn Hartford, who is handling the case, stated that on July 26, 2018, the defendant sold three “auto-sear” devices to an undercover ATF Special Agent in exchange for $900. The “auto-sear” devices are parts designed and intended solely and exclusively for use in converting a weapon into a machinegun.
At the time of the transaction, Garcia-Canales explained to the undercover ATF Special Agent that each “auto-sear” device would make a Glock 9mm pistol function fully automatic, and he explained how to install the devices.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division, and the Rochester Police Department’s Violent Crimes Task Force, under the direction of Chief Mark Simmons.
Sentencing is scheduled for May 16, 2019 at 3:00 p.m. before Judge Larimer.
# # # #Rochester Man Pleads Guilty to Distributing OxycodoneRead 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 Kent Handy, 58, of Rochester, NY, pleaded guilty to distributing oxycodone, a controlled substance, before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that between January 2016 and December 2017, Handy sold hundreds of oxycodone pills that were prescribed to him to another individual. That individual arranged to purchase the pills from the defendant, and then traveled to Handy’s residence to buy the pills.
In December 2017, federal agents executed a search warrant at the defendant’s residence where they found controlled substances and drug paraphernalia.
The plea is the result of an investigation by Special Agents with the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Sentencing is scheduled for February 28, 2019, at 3:00 p.m. before Judge Geraci.
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Raytown Man Sentenced to 16 Years for Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Raytown, Mo., man was sentenced in federal court today for illegally possessing firearms on two separate occasions.
Quentin L. Posey, 29, was sentenced by U.S. Chief District Judge Greg Kays to 16 years in federal prison without parole.
On March 21, 2018, Posey pleaded guilty to two counts of being a felon in possession of firearms.
Posey was originally indicted on Nov. 2, 2016, on one count of being a felon in possession of a firearm. Posey was arrested when Kansas City, Mo., police officers conducted a traffic stop of a vehicle in which he was a passenger. While an officer was walking Posey to the curb after he got out of the vehicle, a loaded Smith and Wesson .38-caliber revolver fell from Posey’s pant leg to the ground. When officers searched the vehicle, they found a Crown Royal bag that contained two glass jars of marijuana.
After being released on bond, according to court documents, Posey became a suspect in a fatal shooting that occurred in an Independence, Mo., parking lot on Dec. 4, 2016. Officers located Posey at another person’s apartment in Kansas City, Mo., on Dec. 13, 2016. Posey was laying on some blankets on the floor in the living room; a loaded Jimenez Arms 9mm semi-automatic pistol was on top of the blankets next to Posey. Officers also found a glass jar that contained marijuana in the pocket of a coat lying nearby. Posey was charged in a superseding indictment on Dec. 15, 2016, with a second count of being a felon in possession of a firearm.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Posey has prior felony convictions for being an accessory after the fact of an armed robbery and kidnaping (related to an armed home invasion) and theft of public property (involving a $139,444 fraud and theft from the Department of Defense).
This case was prosecuted by Assistant U.S. Attorney Adam Caine. It was investigated by the Kansas City, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone.
Rancho Cordova Pair Indicted for Selling Narcotics Through Social Media Accounts and Receiving Payment in BitcoinRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a seven-count indictment today against Nathan Paul Barnes, 23, and Tiarra Maureen Jackson, 22, both of Rancho Cordova, charging them with conspiracy to distribute and possess with intent to distribute marijuana and psilocybin, U.S. Attorney McGregor W. Scott announced.
According to court documents, Barnes and Jackson operated a drug distribution enterprise called “Fine Cali Herb” over various social media platforms, including Instagram and Snapchat. Barnes and Jackson sold large quantities of marijuana, THC products, and psilocybin mushrooms to customers throughout the United States and abroad. Barnes received payment for the narcotics in several forms, including Bitcoin. In July 2018, law enforcement agents conducted an undercover purchase of marijuana and psilocybin mushrooms from Barnes through his Snapchat account. Case agents also conducted surveillance of Barnes and Jackson dropping off mail parcels containing narcotics at post offices throughout the Sacramento area.
This case is the product of an investigation by the Northern California Illicit Digital Economy (NCIDE) Task Force, consisting of agents from Homeland Security Investigations, the Federal Bureau of Investigation, the United States Postal Inspection Service, and the Drug Enforcement Administration. The NCIDE Task Force targets all forms of dark-web and cryptocurrency criminal activity in the Eastern District of California. Assistant U.S. Attorneys Grant B. Rabenn and Paul A. Hemesath are prosecuting the case.
If convicted, Barnes and Jackson face a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Pittsburgh Man Sentenced to 7+ Years’ Imprisonment for 2016 Bank Robbery Spree across Southwestern PARead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to a term of imprisonment of seven years and three months, to be followed by five years of supervised release, on his conviction of bank robbery and armed bank robbery, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Gregory Magee, 50.
Previously, in connection with Magee’s guilty plea on July 10, 2018, the court was advised that Magee robbed six banks from January through November of 2016:
On the afternoon of January 20, 2016, Magee entered First Niagara Bank located at 20111 Route 19, Cranberry Township, Pennsylvania, wearing a hooded sweatshirt, cap, sunglasses, gloves, and scarf covering this face. Upon entering the bank, Magee brandished a black handgun and demanded money from several tellers, who gave him $5,526.
On the afternoon of February 29, 2016, Magee entered First Merit Bank located at 2090 West State Street, New Castle, Pennsylvania, wearing a green poncho, sunglasses, gloves, and scarf covering his face. Upon entering the bank, Magee brandished a black handgun, handed plastic bags to several tellers, and demanded money from the tellers, who complied and gave him $10,126. Magee fled the scene of the robbery in his personal vehicle, a black Cadillac ATS with black rims, which was observed on video surveillance and by an eyewitness.
Around noon on March 31, 2016, Magee entered First Niagara Bank located at 4073 Washington Road, McMurray, Pennsylvania, wearing sunglasses and gloves. Upon entering the bank, Magee threatened that he had a gun, gave plastic bags to tellers, and demanded money from the tellers, who complied and gave him $9,133. Magee carried an open umbrella inside the bank while committing this robbery. Magee fled the scene of the robbery in a bronze Cadillac ATS, which he was driving as a loaner vehicle. This vehicle was captured on surveillance video and observed by an eyewitness.
In the late morning on June 8, 2016, Magee entered First Commonwealth Bank located at 5847 Forbes Avenue, Pittsburgh, Pennsylvania, wearing a hooded sweatshirt, sunglasses, and gloves. Upon entering the bank, Magee threatened that he had a gun, handed out plastic bags to several tellers, and demanded money from the tellers, who complied and gave him $3,709. Magee again held an open umbrella during this robbery.
On the afternoon of August 11, 2016, Magee entered Citizens Bank located at 2537 Constitution Boulevard, Beaver Falls, Pennsylvania, wearing a hooded sweatshirt, baseball cap, sunglasses, gloves, and scarf covering his face. Upon entering the bank, Magee threatened to have a bomb, handed plastic bags to several tellers, and demanded money from the tellers, who complied and gave him $12,559. Magee again carried an open umbrella in the bank while committing this robbery. Magee’s hat was left at the scene of the robbery. DNA was recovered from the hat and found by the FBI laboratory to match a DNA sample from Magee. Magee was observed fleeing the scene in a Buick Regal, which he was driving as a loaner vehicle that day.
Finally, around noon on November 8, 2016, Magee entered S&T Bank located at 4580 Broadway Boulevard, Monroeville, Pennsylvania, wearing a hooded jacket, sunglasses, and gloves. Upon entering the bank, Magee threatened to have a bomb and displayed a bag with protruding wires. Magee handed plastic bags to several tellers and demanded money from them, and they complied. Magee also demanded access to the bank’s vault. The bank manager opened the vault and gave cash from the vault to Magee. Magee stole $78,643 during this robbery. Magee was apprehended by law enforcement shortly after the robbery hiding in a drainage pipe in a wooded area near the bank. Magee was in possession of the stolen currency and bag with protruding wires, later determined to be Ethernet cables. Magee had driven a loaner Cadillac vehicle, which was located near the scene of the robbery.
After his arrest, a 9mm Kel-Tec handgun loaded with nine rounds of ammunition was recovered from Magee’s personal vehicle.
Assistant United States Attorney David Lew prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation, Cranberry Township Police Department, Union Township Police Department, Peters Township Police Department, Pittsburgh Bureau of Police, Chippewa Township Police Department, Monroeville Police Department, and Allegheny County Sheriff’s Office for the investigation leading to the successful prosecution of Magee.
Pittsburgh Man Indicted on Charges Relating to the Sexual Exploitation of MinorsRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of production and possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
The three-count Indictment, returned on Nov. 27, named Jeffrey Porch, 32, as the sole defendant.
According to the Indictment, in April and May 2017, Porch attempted to and did employ, use, persuade, induce, entice, and coerce two female child victims to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct. Additionally, in February 2018, Porch knowingly possessed visual depictions of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 80 years in prison, a fine of $750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Western Pennsylvania Violent Crimes Against Children Task Force and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Phoenix, Arizona Man Sentenced to 87 Months for Heroin DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Luis Lopez Arce, age 26, of Phoenix, Arizona, was sentenced to 87 months’ imprisonment and 3 years’ supervised release for Possession With Intent To Distribute Heroin, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B) and Title 18, United States Code, Section 2. The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Indictment alleged that on or about April 24, 2018, within the Eastern District of Oklahoma, defendant, knowingly and intentionally possessed with intent to distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin, a Schedule I controlled substance.
United States Attorney Brian J. Kuester said, “Drug traffickers contribute to and have played a significant role in the deadly opioid epidemic that has swept the nation. Heroin dealers in particular are dealing their poison without regard to the tragic consequences. There are few communities that have not felt the horrific impact that Heroin and prescription Opioids have had. We must remain diligent in our efforts to detect, apprehend, prosecute and punish the people who play a role in making these drugs readily available.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Rob Wallace represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Pell City Woman Indicted for Wire and Bank FraudRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Pell City woman on multiple counts of wire fraud and bank fraud, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp.
Julia Hollis Meyers, 53, is charged in a seventeen-count indictment filed in U.S. District Court with stealing money from her former employer. Meyers was previously employed by Hibbett Sports, Inc., as a Senior Lease Administrator. While employed by Hibbett Sports, Meyers obtained checks for vendor lease payments from Hibbett Sports and deposited the checks into her personal bank account. Additionally, Meyers engaged in a scheme to direct ACH payments from Hibbett Sports to her personal bank account. The defendant’s scheme resulted in Meyers stealing over $200,000 from her employer.
“This is yet another example of an employee stealing from her employer,” Town said. “This outright theft and misuse of funds will not be tolerated and those who continue to operate these type schemes, will be prosecuted in federal court.”
The maximum penalty for each count of wire fraud is 20 years in prison and a $250,000 fine. The maximum penalty for each count of bank fraud is 30 years and a $1,000,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Owner of Michigan Trucking Business Sentenced for $2.9 Million Theft and Failure to File Tax ReturnsRead the Press Release
The owner of a Michigan trucking business was sentenced today in federal court in Detroit, Michigan, to 33 months in prison for wire fraud and willfully failing to file a tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, and Matthew J. Schneider, U.S. Attorney for the Eastern District of Michigan.
According to court documents, Arshawn Kenard Hall, a resident of Farmington, Michigan, operated a truck hauling business called RAMA Enterprise Inc. (RAMA). An automobile company hired Hall to transport plastic crates filled with automobile parts. After transporting the parts, Hall was required to return the empty crates to a facility in Detroit. Instead, Hall took the plastic crates and sold them to a plastic recycling company for approximately $460,000. The value of the stolen plastic crates to their owner was approximately $2,921,000.
Hall also willfully failed to file a 2012 federal income tax return on behalf of RAMA and failed to pay the taxes due. The tax loss associated with Hall’s conduct is $142,069.
In addition to the term of imprisonment, U.S. Court Judge Terrence G. Berg ordered Hall to serve three years of supervised release, to pay restitution of $2,919,265 to the automobile company and $142,069 to the Internal Revenue Service (IRS). Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Schneider commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Abigail Burger Chingos and Kenneth C. Vert and Assistant U.S. Attorney Adriana Dydell, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
One Man Pleads Guilty and Another Man is Sentenced to 150 Months in Prison for Participating in Fentanyl Trafficking ConspiracyRead the Press Release
Concord – United States Attorney Scott W. Murray announced that Jepherson Emanuel Cabrera, 18, of Lawrence, Massachusetts, was sentenced to 150 months in prison and Juan Rafael Tejada-Jiminez, 28, of Lawrence, Massachusetts pleaded guilty to participating in a conspiracy to distribute over 400 grams of fentanyl.
According to court documents and statements made in court, a drug trafficking organization that authorities allege was led by Sergio Martinez, employed Cabrera, Tejada-Jiminez, and others to sell fentanyl to customers from various New England States, including New Hampshire. On each day that the defendants worked, the Martinez organization provided them with at least one 200-gram bag of fentanyl and expected them to sell it and return approximately $6,000 in proceeds.
Tejada-Jiminez is scheduled to be sentenced on March 13, 2019. Cabrera previously pleaded guilty on August 21, 2018.
“Fentanyl trafficking continues to pose an immediate threat to the lives and safety of the citizens of New Hampshire” said U.S. Attorney Murray. “Blocking the introduction of this lethal substance into our state is a top priority of federal law enforcement. Those who choose to distribute fentanyl in the Granite State should understand that they will be arrested, prosecuted and incarcerated.”
“Fentanyl is causing great damage to our communities,” said DEA Special Agent in Charge Brian D. Boyle. “Those who distribute fentanyl are endangering the safety of the citizens of New Hampshire. This investigation demonstrates the strength of collaborative local, county and state law enforcement efforts in New Hampshire and our strong partnership with the U.S. Attorney’s Office.”
This investigation was conducted by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service Criminal Investigation Division; Immigration and Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case is being prosecuted by Assistant United States Attorneys Georgiana L. Konesky and Seth R. Aframe.
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Olathe Man Fined $5,000 for Unlawfully Importing Asian Leopard CatsRead the Press Release
KANSAS CITY, KAN. - A Kansas man was sentenced today to pay a $5,000 fine for unlawfully importing endangered leopard cats, U.S. Attorney Stephen McAllister said.
The leopard cat is a small wild cat native to Asia. It is considered as an endangered species under federal law.
Lawrence E. Payne, 34, Olathe, Kan., pleaded guilty to one count of violating the Endangered Species Act. The investigation began when Payne applied to the U.S. Department of Agriculture for a breeding license for Asian leopard cats. When investigators served a search warrant at Payne’s home, they found three Asian leopard cats. Payne admitted importing the animals.
McAllister commended the U.S. Fish and Wildlife Service, the U.S. Department of Agriculture and Assistant U.S. Attorney Chris Oakley for their work on the case.
Okemah Man Pleads Guilty to Sexual Exploitation of ChildrenRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Steven James McNinch, age 35, of Okemah, Oklahoma, entered a guilty plea to Sexual Exploitation of Children, in violation of Title 18, United States Code, Section 2251(a), punishable by not less than 15 years’ imprisonment followed by a term of supervised release of up to life, up to a $250,000.00 fine, or both.
The Indictment alleged that on or about August 6, 2017, in the Eastern District of Oklahoma and elsewhere, the defendant employed, used, persuaded, induced, enticed, and coerced a person under the age of eighteen years to engage in sexually explicit conduct, as that term is defined in Title 18, United States Code, Sections 2256(2)(A)-(B), for the purpose of producing any visual depiction of such conduct, and such visual depiction was produced using materials that have been mailed, shipped, and transported in interstate and foreign commerce.
The charges arose from an investigation by the Okmulgee County Sheriff’s Office, the Okmulgee County Department of Human Services, and the Federal Bureau of Investigation.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Edward Snow represented the United States.
Okemah Man Pleads Guilty to Abusive Sexual Contact with A ChildRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Tyler Leevan Hill, age 28, of Okemah, Oklahoma, entered a guilty plea to Abusive Sexual Contact with a Child In Indian Country, in violation of Title 18, United States Code, Sections 1153, 2244(a)(3) and 2246, punishable by not more than 2 years’ imprisonment followed by a term of supervised release of up to life, up to a $250,000.00 fine, or both.
The Indictment alleged that beginning on or about October 30, 2015 and continuing until on or about July 22, 2016, in the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, did knowingly engage in sexual contact as defined in Title 18, United States Code, Section 2246(3), with a person who had attained the age of 12 years, but had not attained the age of 16 years, and was at least four years younger than the defendant, with an intent to arouse and gratify the sexual desire of any person.
The charges arose from an investigation by the Muscogee Creek Nation Lighthorse Tribal Police and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Edward Snow represented the United States.
North Charleston Man Gets 40 Months for Federal Gun CrimeRead the Press Release
Charleston, South Carolina---- United States Attorney Sherri A. Lydon announced today that Ronreguss Santez Grant, 35, of North Charleston, South Carolina, was sentenced to 40 months in federal prison for being a felon in possession of a firearm and ammunition.
Evidence presented to the court showed that on November 21, 2017, North Charleston Police conducted a traffic stop, smelled marijuana, and searched Grant and his vehicle. In addition to finding a small amount of marijuana on Grant’s person, officers discovered a 9mm pistol that had previously been reported stolen in the vehicle he was driving. Federal law prohibits Grant from possessing firearms and ammunition because of his numerous prior felony convictions, including convictions for strong arm robbery, unlawful carrying of a pistol, and multiple convictions for possession of narcotics.
United States District Judge Richard M. Gergel accepted Grant’s guilty plea and sentenced him to 40 months in federal prison, to be followed by 3 years of court-ordered supervision. There is no parole in the federal system.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the North Charleston Police Department. It was prosecuted as part of the joint federal, state, and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
The Department of Justice has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Attorney General announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001. Assistant United States Attorney Chris Schoen of the Charleston office prosecuted the case.
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North Carolina Woman Charged with Embezzling Money from Connecticut CompanyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging SUSANNA KURUS, 43, of Garner, North Carolina, with six counts of wire fraud stemming from an embezzlement scheme.
The indictment was returned on November 15, 2018. Kurus appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford, entered a plea of not guilty to the charges, and was released on a $200,000 bond.
As alleged in the indictment and statements made in court, Kurus formerly resided in Connecticut and was employed as the accounting manager for a company based in Stratford, Connecticut. Between approximately October 2014 and June 2017, Kurus used the company’s financial accounting software to transfer customer credits to at least six personal debit card accounts, and then used the money for her personal benefit. Through this scheme, she stole in excess of $130,000.
The charge of wire fraud carries a maximum term of imprisonment of 20 years on each count.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Connecticut Financial Crimes Task Force, U.S. Secret Service and Stratford Police Department. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
North Carolina Man Sentenced for Providing Material Support to a Foreign Terrorist OrganizationRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that today, Chief United States District Judge Terrence W. Boyle, sentenced BASIT JAVED SHEIKH, 39, of Cary, North Carolina, to 84 months imprisonment followed by a lifetime of supervised release. SHEIKH was sentenced for attempting to provide material support and resources to Jabhat al-Nusrah, which the United States Secretary of State has identified as an alias name for al-Qa’ida in Iraq, a designated Foreign Terrorist Organization. SHEIKH pleaded guilty to the charge on August 22, 2018. When pleading guilty SHEIKH acknowledged that, since he is not a natural born citizen of the United States, he faces possible automatic removal from the United States.
SHEIKH was initially charged by criminal complaint, and subsequently by Criminal Indictment filed November 5, 2013. At the time of indictment, SHEIKH was a 34 year-old from Pakistan who had been living for years in the United States as a legal permanent resident. The affidavit to the complaint describes multiple Facebook postings by SHEIKH occurring in 2013 and expressing support for Jahbat al-Nusrah. SHEIKH posted articles acknowledging that Jahbat al-Nusrah had been designated by the United States as a terrorist organization.
As detailed within the affidavit, SHEIKH utilized Facebook to propagate the violent ideology of Islamic Extremism. In mid-2013, SHEIKH sought out a relationship with an individual online whom he believed could assist him in travelling to Syria in support of violent jihad. This individual informed SHEIKH of another person described as a member of Jabhat al-Nusrah able to assist SHEIKH. In reality, both of these individuals were working with and for the FBI. SHEIKH reached out to the individual he believed to be a Jabhat al-Nusrah member and expressed his desire to travel to Syria in order to “help the mujahideen…in any way I can.” When asked how he wanted to help, SHEIKH responded “logistics, media, fight too, God willing.” Despite the FBI covert employee stating to SHEIKH that fighting was not for everyone, SHEIKH replied that that he was “serious” and that he was ready to be a martyr.
Believing that the FBI covert employee would be able to assist in smuggling him from Lebanon into Syria, SHEIKH purchased a one-way ticket with a final destination of Lebanon and a departure from Raleigh-Durham Airport on November 2, 2013. On that date, SHEIKH traveled to Raleigh-Durham Airport, obtained a boarding pass, checked in luggage, and proceeded through the security screening enroute to his gate of departure. SHEIKH was arrested prior to boarding his flight.
United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr. emphasized, “Our security as a nation, as a state, and as a local community requires vigilance against the hateful rhetoric and goals of groups and persons who highjack the tenets of any religion towards their own violent purposes.”
Investigation of this case was conducted by the Federal Bureau of Investigation, Charlotte Division, Resident Agency Joint Terrorism Task Force (JTTF). Assistant United States Attorney Jason Kellhofer represented the government in this case.
Norteño Gang Member Sentenced to 15 Years in Prison for RICO Conspiracy and Use of FirearmsRead the Press Release
SAN JOSE – Anthony Lek was sentenced yesterday to 15 years in prison for his role in a racketeering conspiracy and for using or possessing firearms in furtherance of a crime of violence, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Lucy H. Koh, U.S. District Judge.
On January 4, 2018, Lek, 31, of Salinas, pleaded guilty to one count of Racketeering Conspiracy, in violation of 18 U.S.C. § 1962(d); Robbery Affecting Interstate Commerce, in violation of 18 U.S.C. § 1951(a); and Using a Firearm in Furtherance of a Crime of Violence, in violation of 18 U.S.C. §§ 924(c) and 2. According to the plea agreement, Lek has been an active member of the “Santa Rita” street gang, which is a subset of the larger Norteño gang affiliation in Salinas, since at least 2007. An essential element of being a Norteño gang member in Salinas was a commitment to violently attack and even kill rival Sureño gang members. Since at least 2009, Lek began associating with a particularly violent subgroup of Norteño gang members in Salinas and participated with them in conducting three take-over style armed robberies of commercial establishments.
Specifically, on June 2, 2010, Lek and three fellow Norteño gang members conducted an armed robbery of the Zale’s jewelry store at the Gilroy Outlets. Lek was armed with a semi-automatic firearm and pointed his gun at the workers and forced them to open the jewelry cases. Lek and a co-robber used zip ties to bind the workers after they opened the jewelry cases. The robbers took over $800,000 worth of jewelry during this robbery.
A few months later, in October 2010, Lek and another Norteño gang member committed an armed robbery of a check-cashing business in Turlock, California. The robbers took several thousand dollars.
On March 17, 2011, Lek and three fellow Norteño gang members committed an armed robbery of the Chase bank in Santa Maria, California. Lek scoped out the bank the day before the robbery. On the day of the robbery, Lek remained outside as the getaway driver of a second vehicle staged a short distance from the bank. The robbers stole a total of $174,000.
On October 28, 2015, Lek was charged in a 71 count superseding indictment along with his co-conspirators. The investigation leading to the indictment was part of the Salinas Police Department and FBI’s crackdown on Norteño gangs in Monterey County.
In addition to the prison term, Judge Koh also sentenced Lek to a five-year period of supervised release, to commence after Lek completes his prison sentence. Lek has been in federal custody since June 1, 2015, and will begin serving his sentence immediately.
Assistant U.S. Attorneys Kimberly Hopkins, Christiaan Highsmith, and Stephen Meyer are prosecuting the case with the assistance of Nina Burney Williams, Adria Trgovich, and Lance Libatique. The prosecution is the result of an investigation by the FBI and Salinas Police Department.
Nitro Man Sentenced for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that a Nitro man was sentenced for a federal drug crime. Jon Green, Jr., 49, of Nitro, was sentenced by United States District Court Judge Joseph Goodwin to 40 months in federal prison for distribution of methamphetamine. Stuart commended the work of the Drug Enforcement Administration (DEA) in the case.
“Meth is flooding Kanawha County,” said United States Attorney Mike Stuart. “But DEA and our other law enforcement partners are pushing back, identifying and investigating meth dealers, resulting in convictions that carry stiff penalties.”
Green pled guilty in August admitting that on August 30th, and again on September 1st and 14th, 2017, he sold methamphetamine to a confidential informant working with the Drug Enforcement Administration. The transactions occurred at defendant’s 7th Street residence in Nitro.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Newark Physician Sentenced to 21 Years in Federal Prison for Child Exploitation OffensesRead 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 Dr. David Blasczak, 70, of Newark, NY, who was convicted of receiving child pornography, was sentenced to serve 262 months in prison guilty by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that the defendant was a physician at the Clyde Family Health Center in Clyde, NY. Between September 1, 2015, and January 18, 2018, Blasczak subscribed to a website from his home that offered child pornography for purchase. The defendant created an account and purchased images and videos of child pornography which were emailed to Blasczak. The images and videos depicted prepubescent children engaged in sexual conduct with adults and other children, as well as prepubescent children, infants, and toddlers subjected to sexual abuse. In total, the defendant received and/or possessed approximately 2557 images and 78 videos depicting child pornography.
In addition to receiving images and videos of child pornography, as part of his plea agreement with the government, Blasczak also admitted to the following:
• Between approximately 1990 and 2000, Blasczak hosted slumber parties at his home which were attended by minor females between the ages of seven and 12. On several occasions, the defendant entered the room in which the minor females were sleeping, manipulated their clothing, and subjected them to sexual contact. This behavior typically consisted of Blasczak touching private areas of the minors’ bodies. The defendant also took photographs of the minors’ exposed private areas when he was able to remove their clothing. Blasczak engaged in as many as 40 different incidents of such sexual conduct involving approximately eight to 10 minor females.
• The defendant also stole children’s underwear from various places, including a friend’s house, for his sexual gratification.
• In his position at the Clyde Family Health Center, Blasczak took nude photographs of the genitals of multiple minor female patients at his medical office. The defendant represented to parents that the photographs were needed for a “study,” which was neither sanctioned, funded, nor approved by any official medical body or learning institution. During a search of the defendant’s medical office, Homeland Security Special Agents discovered prepubescent child sex dolls, and novels that the defendant wrote concerning the sexual abuse of children.During the course of the investigation, Homeland Security Special Agents conducted interviews with close to 30 individuals who were exposed to some type of inappropriate conduct by the defendant.
“The defendant occupied one of the greatest positions of trust in our society. He betrayed that trust by hurting children rather than healing them,” stated U.S. Attorney Kennedy. “As a result of his predatory behavior, Dr. Blasczak will likely spend the rest of his natural life in prison. The sentence fulfills our obligation to protect our most vulnerable among us.”
“This case is particularly troubling especially in light of the defendant's role as a doctor who had taken an oath to 'never do harm,'" said Kevin Kelly, Special Agent-in-Charge for HSI Buffalo. “He instead sought opportunities to harm and exploit innocent children. This case shows that HSI is committed to investigating child predators regardless of the positions they hold in society.”
Today’s sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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New Jersey Man Sentenced to 46 Months’ Imprisonment for Bank FraudRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Patrick Sutherland, age 29, of Roselle, New Jersey, was sentenced on November 27, 2018, by U.S. District Court Judge Malachy E. Mannion to 46 months’ imprisonment for bank fraud.
According to United States Attorney David J. Freed, from December 2014 through August 2016, Sutherland was involved in a scheme during which $1 postal money orders were purchased from post offices in the Scranton, Pennsylvania area, and altered to reflect $1,000. The postal money orders were then deposited into bank accounts controlled by members of the conspiracy, and the cash withdrawn before the banks could identify the fraud. Judge Mannion also ordered Sutherland to pay $282,779 in restitution, a $100 special assessment, and to be placed on 3 years of supervised release upon his release from prison.
The case was investigated by the United States Postal Inspection Service and was prosecuted by Assistant U.S. Attorney Todd K. Hinkley
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New Jersey Man Sentenced to 30 Months’ Imprisonment for Straw Purchasing of FirearmsRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Laquan Hassan Croswell, age 25, of Paterson, New Jersey, was sentenced today by U.S. District Court Judge James M. Munley to 30 months’ imprisonment on charges related to straw purchase of firearms.
According to United States Attorney David J. Freed, the investigation began when a firearm purchased by Croswell was recovered in Paterson, New Jersey, in connection with an armed robbery. Agents determined that Croswell had purchased in excess of thirty firearms from firearms dealers both in Pennsylvania and Florida. Croswell then sold many of the firearms without filing the required transfer paperwork for each firearm transaction. In essence, Croswell lied when he purchased these firearms, stating on the ATF Form 4473 purchase documents that he was the true purchaser of the firearms when he knew that he was purchasing them to be resold to unidentified persons. Several of the firearms have yet to be recovered.
Judge Munley also ordered Croswell to pay a $100 special assessment, and be placed on two years of supervised release once released from federal prison. All the firearms purchased by Croswell have been forfeited to the government.
The case was investigated by the ATF and is being prosecuted by Assistant U.S. Attorney Todd K. Hinkley
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.
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New Haven Printing Company Owner Sentenced for Federal Tax OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LOUIS GOLDBERG, 71, of New Haven, was sentenced today by U.S. District Judge Janet C. Hall in New Haven for his role in a tax avoidance scheme.
According to court documents and statements made in court, Goldberg owns Good Copy Printing Center Inc. (GCP), a printing company located in New Haven. GCP employed Goldberg’s nephew, Ira Malkin, as a principal salesman, and Malkin earned substantial commissions from GCP based on sales made to customers. Between approximately 2003 and 2012, Goldberg had some knowledge that GCP paid many of Malkin’s personal expenses. With Malkin’s consent, GCP reduced his commissions by the amount of personal expenses the company paid. GCP then reported to the IRS through filed W-2 forms that Malkin had earned substantially less income than he truly earned. By reporting lower commissions paid, GCP also improperly reduced the amount of Medicare Payroll Taxes it reported and paid to the IRS.
In addition, GCP handled printing jobs for Comcast, which included GCP mailing out flyers and paying the relevant postage expense with the expectation that GCP would subsequently be reimbursed for that expense. Goldberg knew that Malkin had GCP pay the postage expense for the Comcast mailings, had Comcast reimburse Malkin for the cost of the mailings, and then had GCP reduce Malkin’s earned commissions by the amount of postage paid by GCP. Through this arrangement, between approximately 2009 and 2012, GCP further underreported Malkin’s income on W-2 forms filed with the IRS. By reporting lower income, GCP again improperly reduced the amount of Medicare Payroll Taxes it reported and paid to the IRS.
Between 2003 and 2012, GCP underreported a total of $40,490 in Medicare taxes.
Judge Hall sentenced Goldberg to one year of probation for his role in this scheme.
Goldberg has paid the IRS approximately $105,000 in restitution, which includes the $40,490 in Medicare taxes he owed, interest and a substantial fraud penalty.
On September 7, 2018, Goldberg pleaded guilty to one count of aiding and assisting in the filing of a false tax return.
On February 27, 2018, Malkin pleaded guilty to one count of tax evasion and admitted that he failed to pay $484,581 in federal income taxes on more than $1.5 million in unreported income. On August 9, he was sentenced to six months of imprisonment and six months of home confinement. Malkin has repaid the IRS all of his back taxes, but still owes more than $700,000 in interest and penalties.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
New Bern Man Pleads Guilty to Multi-Year Heroin and Marijuana ConspiracyRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that yesterday in federal court, before Chief United States District Judge Terrence W. Boyle CALVIN MARK WILSON, 34, of New Bern, North Carolina pled guilty to conspiracy to distribute and possess with the intent to distribute one thousand (1,000) grams or more of heroin and a quantity of marijuana.
During the defendant’s guilty plea hearing, the Government summarized the evidence supporting the defendant’s guilty plea. After a multi-year investigation by the New Bern Police Department into a heroin trafficking ring operating in and around New Bern, NC, agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) obtained authorization for a federal wiretap of cellular phones associated with WILSON and two co-defendants. As a result, agents intercepted calls and texts over a three-month period in 2017 showing that WILSON was directing the supply and distribution of kilogram-levels of heroin from New York to New Bern, NC. Based on intercepted calls, agents were able to stop and arrest WILSON and two co-defendants traveling back from New York with 3lbs of marijuana and 7 bars of heroin cutting agent. Calls intercepted after that arrest indicated that WILSON had lost as much as $30,000 on that day alone based on law enforcement’s actions. Later, after WILSON was arrested on his federal charges in October 2017, investigators searched his cell phone, which revealed additional evidence of WILSON arranging for the resupply of hundreds of grams of heroin at a time from his New York sources of supply and then distributing that heroin to street level dealers in New Bern.
At sentencing, the defendant faces not less than 20 years’ imprisonment and up to $10,000,000 in fines.
WILSON’s conviction was the culmination of a multi-year investigation into a heroin trafficking ring operating in and around New Bern, North Carolina, that has resulted in the federal convictions of 16 defendants for drug and gun charges.
The defendants include:
- DWAYNE LEE STALLINGS, aka “Smiley,” 35, of Cove City, NC. STALLINGS was convicted of possession of a firearm by a felon and was sentenced to 108 months’ imprisonment.
- NASSAR TURE MACK, 37, of New Bern, NC. MACK was convicted of possession of a firearm by felon and was sentenced to 24 months’ imprisonment.
- DAMIEN LAMONTE BROWN, aka “Dame,” 36, of New Bern, NC. BROWN was convicted in August 2018 by a federal jury of conspiring to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin, possession with intent to distribute one hundred (100) grams or more of heroin, and possession of a firearm by felon. BROWN faces not less than 10 years’ imprisonment and up to life imprisonment.
- DERRICK LAMONT DAVIS, aka “Gucci,” 35, of Kinston, NC. DAVIS was convicted of conspiring to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin. DAVIS faces not less than 5 years’ imprisonment and up to 40 years’ imprisonment.
- WALTER NAJEE GREEN, III, 21, of New Bern, NC. GREEN was convicted of distribution of a quantity of heroin and faces up to 30 years’ imprisonment.
- MARIO CORRELLUS BARGNEARE, aka “Rio,” 39, of New Bern, NC. BARGNEARE was convicted of conspiring to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin and discharging a firearm in furtherance of a drug trafficking crime. BARGNEARE faces not less than 15 years’ imprisonment and up to life imprisonment.
- WILLIE FRANK JAMES AHERN, aka “White, White Bread, Dribs,” 39, of Bayboro, NC. AHERN was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin and several instances of distributing quantities of heroin. AHERN faces up to life imprisonment.
- DEREK JACQUAN WIGGINS, aka “DJ,” 38, of New Bern, NC. WIGGINS was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin, several counts of distributing heroin, and possession of a firearm by a felon. He faces up to life imprisonment.
- ROY JAMES NOLON, aka “Henny,” 21, of New Bern, NC. NOLON was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin and possession of a firearm in furtherance of a drug trafficking crime. He faces not less than 5 years’ imprisonment.
- MICHAEL QUALEEK VELASQUEZ, aka “Moo Moo,” 23, of New Bern, NC. VELASQUEZ was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin and possession with intent to distribute a quantity of heroin. He faces up to life imprisonment.
- LAMAR HOSEA WIGGINS, aka “LB,” 39, of New Bern, NC. WIGGINS was convicted of conspiring to possess with the intent to distribute a quantity of heroin and possession of a firearm by a felon. He faces up to 30 years’ imprisonment.
- LASHAWNNA JAQUETTE MCCOTTER, aka “Flossy,” 47, of New Bern, NC. McCOTTER was convicted of conspiring to possess with the intent to distribute a quantity of heroin and possession with intent to distribute a quantity of marijuana. She faces up to 25 years’ imprisonment.
- LATREKA DENISE HARDESTY, aka “T,” 27, of New Bern, NC. HARDESTY was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin. She faces up to 20 years’ imprisonment.
- ADRIENNE MICHELLE HALL, 35, of New Bern, NC. HALL was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin. She faces up to 20 years’ imprisonment.
- CAROLINE LOUISE HUGHES, 28, of Alliance, NC. HUGHES was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin. She faces up to 20 years’ imprisonment.
The investigation also led to 8 individuals being charged by the state for drug offenses. Those charges remain pending.
The investigation was part of OCDETF Operation 190. This is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), New Bern Police Department, Jacksonville Police Department, Craven County Sheriff’s Office, Pamlico County Sheriff’s Office, the North Carolina State Bureau of Investigation, Onslow County Sheriff’s Office, Sampson County Sheriff’s Office, Trent Woods Police Department, Carteret County Sheriff’s Office, Morehead City Police Department, Beaufort County Sheriff’s Office, and with the assistance of the Federal Bureau of Investigation (FBI) and Drug Enforcement Administration (DEA). Assistant United States Attorney Laura S. Howard prosecuted this case on behalf of the government.
Minneapolis Felon Sentenced to 71 Months in Prison for Role in 2017 Bar ShootingRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of CEDRIC LAMONT BERRY, JR, a/k/a “Ced,” 24, to 71 months in federal prison. BERRY was sentenced on November 28, 2018, by Senior Judge Ann D. Montgomery, in U.S. District Court in Minneapolis, Minnesota. BERRY pleaded guilty on July 19, 2018, to one count of felon in possession of ammunition.
Earlier this month, BERRY’s co-defendant CORTEZ MAURICE CRUMBLE, a/k/a “Bruiser,” 30, was found guilty following a jury trial before Senior Judge Montgomery in U.S. District Court, in Minneapolis, Minnesota. A sentencing hearing for CRUMBLE has been set for March 21, 2019.
“The defendant has a violent criminal history and has consistently been shown to be a danger to the community,” said United States Attorney Erica H. MacDonald. “He and his co-defendant brazenly shot at a man fleeing in a car in a public parking lot, posing a substantial danger to human life. My commitment to Minnesotans is to use every tool and law enforcement partnership we have to keep our communities safe.”
“These individuals repeatedly disregarded both the law and the safety of others,” said ATF Special Agent in Charge Kurt Thielhorn of the Saint Paul Field Division. “We’re glad to get them out of the community they victimized and this case is part of our effort to reduce violent crime in Minneapolis. Our relationship with the Minneapolis Police Department and the Minnesota Bureau of Criminal Apprehension led to the success in investigating these violent offenders and we are thankful for their involvement in this case.”
According to documents submitted to the court, including BERRY’s guilty plea, and evidence admitted at CRUMBLE’s trial, in the early morning hours of November 23, 2017, CRUMBLE and BERRY were at the Broadway Pub in Minneapolis when BERRY and other individuals got into a fight inside the bar. Security personnel broke up the fight, however; video footage captured BERRY as he ran out of the bar and appeared to retrieve something from a vehicle in the parking lot. BERRY was then seen running back into the bar with a firearm in his hand. Shortly afterward, CRUMBLE was captured on video outside the bar shooting at a vehicle as it sped out of the parking lot. BERRY was also captured on video appearing to draw a firearm from his waistband and firing at the vehicle. Law enforcement officers found 20 .40 caliber discharged cartridge casings in the area where the shooting took place.
Both CRUMBLE and BERRY have prior felony convictions prohibiting them from legally possessing firearms or ammunition at any time.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minneapolis Police Department, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney Thomas Calhoun-Lopez tried the case.
Defendant Information:
CEDRIC LAMONT BERRY, JR, a/k/a “Ced,” 24 Minneapolis, Minn.
Convicted:
- Felon in possession of ammunition, 1 count
Sentenced:
- 71 months in prison
- 3 years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Mexican Woman Admits Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Rosibel Catalan-Bonifacio, age 24, and a citizen of Mexico, pled guilty today to illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.
Catalan-Bonifacio admitted as part of her guilty plea that she is a citizen of Mexico, and that she was removed from the United States to Mexico a total of 5 times, the most recent removal taking place on December 5, 2014. On each occasion, Catalan-Bonifacio had been arrested by immigration authorities in Arizona after she entered the United States without inspection from Mexico.
On August 1, 2018, she was arrested by a Border Patrol Agent in Champlain, New York, after she illegally entered the United States from Canada by walking across the border approximately 3 miles west of the Champlain Port of Entry, thereby avoiding immigration and customs inspection. Catalan-Bonifacio admitted that she returned to the United States without permission following the prior removals.
Catalan-Bonifacio faces up to 2 years in prison and a fine of up to $250,000 when she is sentenced by United States District Judge Mae A. D ’Agostino on March 25, 2019. 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 Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.