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Tuesday 25 September 2018
West Yarmouth Woman Sentenced for Stealing Social Security BenefitsRead the Press Release
BOSTON – A West Yarmouth woman was sentenced today in federal court in Boston for stealing Social Security disability benefits.
Crystal Lehtola, 35, was sentenced by U.S. District Court Judge William G. Young to three years of supervised release, with the first six months to be served on home confinement, and ordered to pay restitution of $53,682. In May 2018, Lehtola pleaded guilty to one count of theft of public funds. Lehtola was arrested and charged in August 2017.
From February 2011 through August 2016, Lehtola received approximately $53,682 in benefits from the Social Security Administration intended for her disabled daughter. In order to be appointed as her daughter’s representative payee, Lehtola told Social Security that her daughter lived with her and that she was her daughter’s guardian. However, in April 2009, the Massachusetts Department of Children and Families removed Lehtola’s daughter from her care, and although Lehtola never regained custody, she repeatedly advised Social Security that her daughter lived with her and that she spent all of the benefits on her daughter’s care. In reality, Lehtola spent the funds on her own expenses.
United States Attorney Andrew E. Lelling and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit prosecuted the case.
West Seneca Man Sentenced for His Role in Dansville Meth ConspiracyRead 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 Andrew Culliton, 38, of West Seneca, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, methamphetamine, was sentenced to 36 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Katelyn Hartford, who handled the case, stated that Culliton, along with others, conspired to distribute methamphetamine at “The Bone Yard,” an auto salvage yard in Dansville, NY. On two occasions, March 2, 2017, and March 10, 2017, the defendant sold pure crystal methamphetamine to another individual known to law enforcement.
Culliton is one of seven defendants charged and convicted in this case.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Livingston County Sheriff’s Department, under the direction of Sheriff Thomas Dougherty; and the New York State Police, under the direction of Major Eric Laughton.
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Virginia Man Sentenced to over 19 Years’ Imprisonment for Production of Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Hollis Lee Ball, age 45, of Virginia, was sentenced on September 24, 2018, by United States District Court Judge John E. Jones, III to 235 months’ imprisonment followed by a life term of supervised release for production of child pornography.
According to United States Attorney David J. Freed, between March 5 and 11, 2017, Ball contacted two minor children in Pennsylvania through an Ipad application known as “Musical.ly.” Ball used his access to the minor children through Musical.ly to persuade one of the children to send him exploitative images.
Ball was previously convicted of a sex offense and was on the sex offender registry in Virginia when he committed the offense.
This case was investigated by the Lower Paxton Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Chelsea Schinnour prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Violent Armed Carjacker Ordered to Federal PrisonRead the Press Release
McALLEN – A 30-year-old Mexican man has been ordered to federal prison for two carjackings which occurred in early 2017, announced U.S. Attorney Ryan K. Patrick. Jorge Luis Almanza-Barcenas pleaded guilty to a six-count second superseding indictment on Sept. 28, 2017.
Today, U.S. District Judge Randy Crane ordered Jorge Luis Almanza-Barcenas to serve a total of 384 months plus one day in prison for the carjackings and related firearms offenses. Following his sentence, he is expected to face deportation proceedings as he is not a U.S. citizen.
Additional information was also presented today including a paraphrased statement form one of the victims in the case which noted her continued fear. Almanza-Barcenas was further ordered to pay $16,348.43 in restitution to the victims.
On March 27, and April 12, 2017, Almanza-Barcenas committed two armed carjackings in McAllen. He approached both female victims, who were sitting in their vehicles, and demanded them to relinquish their vehicles at gunpoint. Almanza-Barcenas pointed a 9mm caliber semiautomatic pistol at the victims’ heads and pulled them out of the vehicle, threatening to kill them. Thereafter, Almanza-Barcenas fled, obtaining the vehicle each time. .
Almanza-Barcenas will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and McAllen Police Department conducted the investigation. Assistant U.S. Attorneys (AUSA) James Sturgis and David Paxton and former AUSA Lynn Wang prosecuted the case.
VCU Health System Authority Agrees to $4 Million SettlementRead the Press Release
RICHMOND, Va. – Virginia Commonwealth University Health System Authority (VCU), which operates VCU Medical Center and related healthcare facilities in Richmond, agreed to pay $3,994,151 to settle claims for billing overpayments paid by Medicare, Tricare, and the Federal Employees Health Benefits Plan (FEHB) for services rendered to patients.
The resolution follows from a voluntary disclosure by VCU to the U.S. Attorney’s Office after VCU discovered through audits of patient files and claims data that Federal healthcare payors had been overbilled for radiation oncology services. After VCU discovered the conduct that had caused a variety of billing errors, VCU took corrective action to prevent the conduct that caused the overpayments and made the disclosure. The settlement resolves claims arising out of errors in VCU billings to Federal healthcare payors from 2009 through September 2014.
VCU provided assistance during the government’s investigation, which was a coordinated effort by the U.S. Attorney’s Office for the Eastern District of Virginia, the Department of Health and Human Services Office of Inspector General, the U.S. Office of Personnel Management Office of the Inspector General, and the Defense Criminal Investigative Service Office of Inspector General. The matter was investigated by Assistant U.S. Attorney Robert McIntosh.
The civil claims settled are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Two Pittsburgh Women Arrested at the Cyril E. King Airport for Allegedly Smuggling 13 Kilograms of Cocaine with the Intent to DistributeRead the Press Release
St. Thomas, USVI – Ngoc Nguyen, 21, and Fendi Brooks, 25, both from Pittsburgh, Pennsylvania, were arrested today on a complaint charging them with conspiracy to possess with the intent to distribute thirteen kilograms of cocaine and possession with the intent to distribute cocaine, United States Attorney Gretchen C.F. Shappert, announced. Nguyen and Brooks made their initial appearance before Magistrate Judge Ruth Miller and were detained pending further proceedings.
According to the complaint, Nguyen and Brooks were stopped by U.S. Customs and Border Protection (CBP) Officers at the Cyril E. King Airport after they discovered that Nguyen and Brooks were attempting to smuggle thirteen kilograms of cocaine through the airport to the U.S. mainland in their checked luggage. The white powdery substance discovered in the suitcase, field-tested positive for cocaine and weighed approximately thirteen kilograms.
If convicted of conspiracy to possess with the intent to distribute and possession with the intent to distribute cocaine, Nguyen and Brooks each face a term of imprisonment of not less than ten years and not more than life and a fine of $10,000,000.00 on each count.
This case is being investigated by Homeland Security Investigations (HSI) and U.S. Customs and Border Protection (CBP) and the U.S. Drug Enforcement Administration (DEA). It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Two Men Sentenced to 18 and 19 Year Prison Terms for Conspiracy to Commit Sex Trafficking of a MinorRead the Press Release
On September 20, 2018, Palm Beach County resident Charles Edward Smith, 63, was sentenced to 235 months in prison by United States District Judge Donald M. Middlebrooks following his jury trial conviction for participating in a conspiracy to commit sex trafficking of a minor (Case No. 18-CR-80062). Co-defendant Michael Joseph Clark, 44, was sentenced to 220 months in prison by Judge Middlebrooks, after he previously pled guilty to participating in the conspiracy and committing substantive sex trafficking of a minor offenses.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Sarah J. Mooney, Chief of Police, West Palm Beach Police Department (WPBPD) made the announcement.
On or about March 13, 2018, members of the WPBPD discovered a 14-year old minor, identified as a missing person, in a West Palm Beach residence controlled by Smith. The defendant and other co-conspirators, including Michael Joseph Clark, operated a prostitution operation out of the residence. Smith had the minor work as a prostitute, setting up her sexual encounters, giving her drugs and requiring her to use her prostitution earnings to stay at the house.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mrs. Fajardo Orshan commended the investigative efforts of the FBI and the WPBPD in this matter. The case was prosecuted by Assistant U.S. Attorneys Lothrop Morris and Ellen Cohen.
Related court documents and information can be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Two Defendants Charged with Arson of Kenmore Restaurant to Collect Insurance MoneyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Mushtak Al Mosaadi, a/k/a Mo, 47, and Omran Al-Khazraji, a/k/a Omarwas, 47, with conspiracy to damage and destroy a building used in interstate commerce by fire, and damaging and destroying a building used in interstate commerce by fire. The charges carry a mandatory minimum penalty of five years in prison and a maximum of 20 years. In addition, Al Mosaadi is also charged with mail fraud which carries a maximum penalty of 20 years.
Assistant U.S. Attorney Michael P. Felicetta, who is handling the case, stated that according to the indictment, on May 25, 2016, defendant Al Mosaadi obtained a general liability insurance policy for the Babylon Gardens, a restaurant located at 1141 Kenmore Avenue in Kenmore, NY. On the day he obtained the policy, Al Mosaadi increased the policy limit from $50,000 to $100,000.
Between May 25, 2016, and June 3, 2016, the defendant devised a scheme to obtain money from the insurance company. On June 2, 2016, defendant Al Mosaadi, working with others, intentionally started a fire, and caused another to start a fire, inside the restaurant. On that same day, defendant Al Mosaadi gave a signed sworn statement to the Kenmore Police Department, in which he falsely claimed that he had no idea who started the fire and that he would assist the police in determining who committed the arson. On June 3, 2016, defendant Al Mosaadi signed an “Authorization to Perform Services and Direct Payment,” for “Sullivan’s Cleaning and Restoration” and for “CRDN of WNY” to pay for cleaning and repair to damages caused by the fire.
The defendants were arraigned on September 24, 2018, before U.S. District Judge Michael J. Roemer and were released.
The indictment 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 and the Kenmore Police Department, under the direction of Chief Peter Breitnauer.The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Two Charlotte Area Hospitals Among $260 Million Global Settlement Between Hospital Chain and the United StatesRead the Press Release
CHARLOTTE, N.C. – The Department of Justice announced today that Health Management Associates, LLC (HMA), formerly a major U.S. hospital chain headquartered in Naples, Florida, will pay over $260 million to resolve criminal charges and civil claims relating to a scheme to defraud the United States. This global settlement also resolves False Claims Act allegations against two Charlotte-area hospitals, Lake Norman Regional Medical Center and Davis Regional Medical Center.
“Today’s settlement demonstrates the government’s commitment to hold companies accountable for the abuse of government healthcare programs,” said Andrew Murray, United States Attorney for the Western District of North Carolina. “My office will continue to steadfastly use the False Claims Act to safeguard the integrity of our healthcare system and protect taxpayer dollars from healthcare providers that engage in this type of fraudulent activity.”
The government alleged that HMA knowingly billed government health care programs for inpatient services that should have been billed as outpatient or observation services, paid remuneration to physicians in return for patient referrals, and submitted inflated claims for emergency department facility fees. Lake Norman Regional Medical Center and Davis Regional Medical Center, are two HMA hospitals in which the alleged fraudulent scheme was carried out.
Today’s settlement resolves multiple allegations against HMA for both criminal and civil liability. As part of today’s settlement, HMA agreed to pay $62.5 million to resolve HMA’s liability for submitting false claims between 2008 and 2012 as part of a corporate-wide scheme to increase inpatient admissions of Medicare, Medicaid and the Department of Defense’s (DOD) TRICARE program beneficiaries over the age of 65. The government alleged that the inpatient admission of these beneficiaries was not medically necessary, and that the care needed by, and provided to, these beneficiaries should have been provided in a less costly outpatient or observation setting.
HMA agreed to pay $61,839,718 to the United States and $706,084 to participating States. HMA also agreed to pay $12 million to resolve allegations that from September of 2009 through December of 2011, certain HMA hospitals submitted claims to Medicare and Medicaid seeking reimbursement for falsely inflated emergency department facility charges. HMA agreed to pay $11,028,000 to the United States and $972,000 to participating States to settle HMA’s inflated billing practices.
This settlement resolves certain claims brought by Doctors Thomas L. Mason, Steven G. Folstad and their company Mid-Atlantic Emergency Medical Associates (MEMA), in a qui tam complaint filed on September 23, 2010 in the Western District of North Carolina. MEMA, Mason and Folstad’s company, provided contracted emergency department physician service to HMA at Lake Norman Regional Medical Center and Davis Regional Medical Center. Mason and Folstad alleged that because they resisted HMA’s efforts to enact this scheme, HMA fired MEMA and awarded the contract for emergency department services to EmCare, Inc. (EmCare), a large national emergency department services company. Mason and Folstad also named EmCare as a defendant in their complaint. The settlement amount of $62.5 million and $12 million resolves allegations of fraud included in doctors Mason and Folstad’s complaint. EmCare previously settled its civil liability with the government in December 2017 for $29.6 million. More information on EmCare’s settlement can be found here.
Mason and Folstad filed their complaint under the qui tam provisions of the False Claims Act, which allows private citizens with knowledge of potential fraud to file a complaint on behalf of the United States. These whistleblowers, known as relators under the statute, often bring corporate wrongdoing to the attention of the United States.
“The efforts of relators like Doctors Mason and Folstad are essential to protecting the integrity of our Medicare and Medicaid systems,” said U.S. Attorney Murray. “We thank them for bringing these allegations to the United States.”
Under the False Claims Act, the United States investigates relators’ allegations, often with assistance from relators and their counsel, to determine if it will intervene in the case.
“Relators’ counsel has provided invaluable assistance to the United States during this long investigation,” said Murray. “Such assistance greatly enhances government resources allowing us to more effectively fight fraud on government programs.”
Twice-Convicted Drug Dealer Sentenced on Drug ChargesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Charles Raymond Stagner, 36, of Saraland, Alabama, was sentenced in federal court on his conviction on two counts of possession with intent to distribute methamphetamine. Stagner was convicted by a jury following a trial in June of 2018. Evidence from the trial showed that Stagner sold methamphetamine to a confidential informant working with the Saraland Police Department, and when officers obtained a search warrant for his residence, they found additional quantities of methamphetamine, scales and other drug paraphernalia. Court documents reflect that Stagner’s prior federal conviction for conspiracy to manufacture methamphetamine occurred in 2009.
United States District Court Judge William H. Steele imposed a sentence of 132 months imprisonment on each count, with the sentences to run concurrently. When Stagner is released from prison, he will serve eight years of supervised release. As conditions of his supervised release, the judge ordered that Stagner would receive drug and alcohol treatment as well as mental health counseling. No fine was imposed but Stagner was ordered to pay $200 in special mandatory assessments.
The case was investigated by the Saraland Police Department, the Mobile County Sheriff’s Office and the Department of Homeland Security, Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by AUSA Gloria A. Bedwell.
Toledo to receive nearly a half-million dollars to help fight violent crimeRead the Press Release
Attorney General Jeff Sessions today announced grant awards to Public Safety Partnership member sites as part of $10 million in funding to support state, local and tribal law enforcement departments and agencies and their partners who are fighting violent crime in jurisdictions across the United States.
Toledo is one of the recipients, receiving $492,553.
“This money, nearly half a million dollars, will put our Toledo law enforcement partners in better position to identify and respond to violent crime in our community,” said U.S. Attorney Justin Herdman. “This money will make Toledo’s residents safer and we look forward to helping the city implement these grant funds.”
The Office of Justice Programs’ Bureau of Justice Assistance, in partnership with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, is awarding $5 million under the Local Law Enforcement Crime Gun Intelligence Center Integration Initiative to encourage local jurisdictions to use intelligence, technology and community engagement to identify unlawfully used firearms and to prosecute those who commit violent crimes.
Grant recipients include the PSP cities of Indianapolis, Indiana, $798, 866; Memphis, Tennessee, $714,055; Tulsa, Oklahoma, $800,000 and Baton Rouge, Louisiana, $634,971. Other locations include Detroit, Michigan, $800,000; the Albuquerque, New Mexico, Police Department, $452,108, and the City/County of San Francisco, California, $800,000. The jurisdictions will use these awards to hire personnel to utilize the National Integrated Ballistic Information Network (NIBIN), to purchase technology required to operate a Crime Gun Intelligence Center and ammunition for ballistic tests of recovered weapons.
The Attorney General also announced awards for BJA’s Technology Innovation for Public Safety (TIPS): Addressing Precipitous Increases in Crime program.
This program supports the Department’s priorities of reducing violent crime and supporting law enforcement officers, including prosecutors. While many jurisdictions are making significant progress implementing justice information sharing solutions to address critical gaps in crime prevention and response activities across organizations and jurisdictions, there remain challenges for the criminal justice system to respond to threats to public safety. This is especially true for efforts addressing significant increases in crime.
Justice information sharing technology refers to any hardware and software, hosted residentially or remotely, that plays a role in the collection, storage, sharing and analysis of criminal justice data. Funding under this program is provided to help state, local, territorial, and tribal jurisdictions use innovative technological solutions to enhance their justice information-sharing capacity.
Grant recipients include the PSP cities of Memphis, Tennessee, $417,224; Toledo, Ohio, $492,553; Flint, Michigan, $499,694 and Houston, Texas, $500,000. Other locations include Arizona Criminal Justice Commission, $317,834; City of Boynton Beach, Florida, $465,860; Clark County Social Service, Nevada, $500,000; New Mexico Second Judicial District Attorney, $500,000; State of Connecticut Department of Emergency Services and Public Protection; $419,804; Bergen County Prosecutor’s Office, New Jersey, $500,000; and Georgia Bureau of Investigation, $499,339. Additional information on the grant awards can be found at: www.bja.gov
Attorney General Jeff Sessions made the announcement during today’s National Public Safety Partnership Symposium on Violent Crime in Birmingham, Alabama. The National Public Safety Partnership is a DOJ-wide initiative that enables cities to consult with and receive a coordinated array of resources from DOJ’s programmatic and law enforcement components: the Bureau of Justice Assistance; United States Attorneys’ Offices; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Federal Bureau of Investigation; the U.S. Drug Enforcement Administration; the U.S. Marshals Service; the Office on Violence Against Women; the Office of Justice Programs; the Office of Community Oriented Policing Services; and other federal agencies in order to improve local violence reduction strategies.Three Charged with Conspiracy to Rob A Post OfficeRead the Press Release
HAMMOND- Tanisha Banks, age 38, James Caffey, age 28 and Leeroy Beck, age 28, all residents of Northwest Indiana, were charged in a 3 count Indictment, announced U.S. Attorney Kirsch.
According to documents in this case, the three were charged with conspiracy to commit robbery. Bank and Caffey are also charged with using a firearm during the commission of the robbery. The indictment alleges that the three conspired to and robbed the Tolleston Post Office in Gary, Indiana on August 3, 2017.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case was investigated by the U.S Postal Inspection Service. This case is being prosecuted by Assistant United States Attorneys Thomas McGrath and Diane L. Berkowitz.
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Three Armed Drug Traffickers Are Sentenced to Lengthy Prison TermsRead the Press Release
CHARLOTTE, N.C. – Three Gaston County drug trafficker were sentenced in federal court yesterday to prison terms ranging from nine to 17.5 years, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Quinton Lavar Brown, 34, of Gastonia, was sentenced to 210 months in prison and five years of supervised release; Antwan Lamar Floyd, 35, of Gastonia, was sentenced to 144 months in prison and five years of supervised release; and Maurice Terrell Robinson, 29, of Dallas, N.C. was sentenced to 110 months in prison, followed by 6 years of supervised release. Chief U.S. District Judge Frank D. Whitney presided over the sentencing hearings.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Robert C. Helton of the Gastonia Police Department join U.S. Attorney Murray in making today’s announcement.
According to court documents and information presented at the sentencing hearings, the three men were responsible for trafficking multiple kilograms of crack cocaine in and around Gaston County. Court records show that, over the course of the investigation, law enforcement recovered from the defendants’ stash houses and residences more than $24,931 in cash, 74 grams of cocaine, 1.5 kilograms of marijuana, a money counter and four sets of digital scales. In addition, law enforcement seized illegally possessed firearms, including one AK-47 assault rifle, one shotgun, four handguns, and ammunition.
Brown, who engaged in drug trafficking while on supervised release for a previous federal drug and racketeering conspiracy conviction, pleaded guilty on May 2, 2018, to conspiracy to distribute and to possess with intent to distribute crack cocaine. Floyd pleaded guilty to conspiracy to distribute and to possess with intent to distribute crack cocaine on April 11, 2018. Robinson, who was also on supervised release in connection with a previous federal drug, racketeering conspiracy and Hobbs Act Robbery conviction, pleaded guilty to possession with intent to distribute crack cocaine on December 19, 2017.
All three defendants are currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
These convictions stem from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. 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 drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
These cases are also part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN.
In making today’s announcement U.S. Attorney Murray thanked the Federal Bureau of Investigation, Charlotte Division, and the Gastonia Police Department for their investigation of the case.
Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.
Statement by Attorney General Sessions Supporting Proposed Legislation to Counter Unmanned Aircraft SystemsRead the Press Release
Attorney General Sessions today issued the following statement of support for legislation to counter threats from unmanned aircraft systems:
“From the Wright Brothers to John Glenn to today, Americans have been at the leading edge of aeronautics and made breakthroughs that have changed our world for the better. Drone technology, one of the latest of these inventions, promises to strengthen us economically by creating American jobs and transforming American industry. Unfortunately, however, this new tool can also be used to wreak havoc by criminals, terrorists and other bad actors. That is why the Trump administration has worked on legal reforms to enable law-abiding people to use this technology for good while protecting them from those who would use it for ill.
“Bipartisan legislation in Congress called the Preventing Emerging Threats Act would finally give federal law enforcement the authority we need to counter the use of drones by drug traffickers, terrorists and criminals while protecting the freedom to use drones lawfully. We need this authority today — and so I urge my former colleagues in Congress to send this legislation to President Trump’s desk. That will let us get to work, fight this new threat and keep the American people safe.”
St. Thomas Man Arrested at the Cyril E. King Airport for Allegedly Smuggling 23 Kilograms of Cocaine with the Intent to DistributeRead the Press Release
St. Thomas, USVI – Shahime Ludvig, Jr., 20, of St. Thomas was arrested today on a complaint charging him with possession with the intent to distribute cocaine, United States Attorney Gretchen C.F. Shappert, announced. Ludvig made his initial appearance before Magistrate Judge Ruth Miller and was detained pending further proceedings.
According to the complaint, Ludvig was attempting to smuggle twenty-three kilograms of cocaine through the Cyril E. King to Atlanta, Georgia on Delta Flight #307. U.S. Customs and Border Protection (CBP) Agents discovered that the suitcase Ludvig checked in for the flight contained white, brick-like objects that field-tested positive for cocaine and weighed approximately twenty-three kilograms.
If convicted of possession with the intent to distribute cocaine, Ludvig faces a term of imprisonment of not less than ten years and not more than life and a fine of $10,000,000.00.
This case is being investigated by Homeland Security Investigations (HSI) and U.S. Customs and Border Protection (CBP) and the U.S. Drug Enforcement Administration (DEA). It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
South Carolina’s 17th Annual National Day of Concern & Student Pledge Against Gun ViolenceRead the Press Release
COLUMBIA, South Carolina ---- United States Attorney Sherri A. Lydon stated today that on October 17, 2018, the United States Attorney’s Office (USAO), as part of Project CeaseFire, is sponsoring South Carolina’s participation in the annual National Day of Concern and Student Pledge Against Gun Violence. On October 17th, students from around the country will join together in pledging to do their part to end gun violence. Middle-school and high school students will sign a voluntary pledge promising that they will never take a gun to school, will never resolve a dispute with a gun, and will use their influence with their friends to keep them from solving personal problems with guns. Elementary school children will make a simpler commitment. They will pledge that if they see a gun they will not touch it and they will assume that any gun they see might be loaded.
United States Attorney Lydon said, “Our youth is our future and they deserve to be safe, both at school and at home. Through this pledge event, our office is continuing our efforts to reach South Carolina students and teach them the importance of preventing gun violence.” This national event is important as it gives students around the country the chance to make an affirmation of their ability, individually and collectively, to be a powerful force for change.
As it has done since 2002, the USAO reached out to all South Carolina law enforcement agencies and schools to make the pledges available to interested schools. In addition to providing the pledges, the USAO is coordinating with our law enforcement partners to provide speakers to requesting schools. This pledge effort is part of Project CeaseFire. 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. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Schools and law enforcement agencies have until September 28th to register to participate in this event. For more information on how to participate, please see the attached memorandum and request form. For additional information concerning the national pledge program, visit the Student Pledge web site at www.pledge.org .
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2018_17th_annual_gun_pledge_memo_002.pdf 2018_certificate_or_speaker_request_002.pdfSkagway Man Sentenced for Theft of Government FundsRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that a Skagway man has been sentenced in federal court for theft of government funds.
Carey L. Dorn, 67, of Skagway, Alaska, was sentenced last Friday by Chief U.S. District Judge Timothy M. Burgess, to serve five years of probation, and was ordered to pay $78,811.68 in restitution to the United States Railroad Retirement Board (RRB).
According to court documents, from January 2011 through December 2013, Dorn received $78,811.68 in overpayments from RRB Employment Disability that he was not entitled to because he knowingly failed to file accurate reports of his employment and income earnings during this time period. In 2005, Dorn had become injured on the job with the U.S. Railroad and was allowed to take an early retirement in March 2007. As part of the conditions of Dorn’s early retirement benefits, he was required to accurately report his employment and income to the RRB. In 2008, Dorn’s wife opened a photo and car rental business in Skagway. Dorn began working at the business full-time, exclusively running its day-to-day operations, but knowingly and willfully failed to report this income to the RRB since it could result in reduced or withheld benefits from RRB.
The U.S. Railroad Retirement Board, Office of Inspector General, Office of Investigations (RRB OIG/OI) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jack Schmidt.
Six Individuals Sentenced in Case Charging Health Care Fraud and Kickback Conspiracies and ObstructionRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced today the sentencing of four local physicians, a biller, and office manager following a four week trial that ended on May 9, 2017.
Specifically, HENRY EVANS, age 74, was found guilty of five counts of health care fraud; MICHAEL JONES, age 49; PAULA JONES, age 45; SHELTON BARNES, age 63; GREGORY MOLDEN, age 60, all of New Orleans; and JONATHON NORA, age 31, of River Ridge, were all found guilty of conspiracies to commit health care fraud and to receive and pay health care kickbacks, and health care fraud. BARNES, MICHAEL JONES, MOLDEN, and NORA were also found guilty of individual counts of health care fraud. Additionally, BARNES was found guilty of obstruction of a federal audit.
The Second Superseding Indictment rises out of an Indictment returned in March 2015 charging Abide owner, Lisa Crinel, and others with health care fraud. Nineteen individuals and/or companies pleaded guilty before trial to charges associated with the original Indictment.
According to the Second Superseding Indictment, the defendants fraudulently billed Medicare for medically unnecessary home health services for patients who were not homebound. BARNES, EVANS, MOLDEN, and MICHAEL JONES, known as “House Doctors,” ordered home health services for Medicare beneficiaries who had no legitimate medical necessity. The House Doctors falsely signed home health orders regardless of the beneficiaries’ needs, homebound status, or diagnoses. In return, BARNES, EVANS, and MOLDEN received illegal monthly payments characterized as medical consultant or director fees for which they provided no services other than fraudulently certifying Medicare beneficiaries for unnecessary home health services. Instead of receiving monthly payments from the home health agency, Abide hired PAULA JONES, MICHAEL JONES’ wife and, thereafter, inflated salary payments to PAULA JONES in order to pay MICHAEL JONES’ fees for fraudulently certifying ineligible Medicare beneficiaries.
Marketers contacted JONATHON NORA and others to confirm that the person fraudulently referred for home health was a Medicare beneficiary. Once NORA determined that the referred individual was a Medicare beneficiary, NORA scheduled a physician visit, usually with an Abide House Doctor, well knowing that the individual referral to Abide was by a Marketer, instead of the beneficiary’s own health care professional.
Abide generated plans of care reflecting the falsely created assessments. The plans of care were given to BARNES, EVANS, MOLDEN, and MICHAEL JONES to falsely certify and recertify medically unnecessary episodes of home health. PAULA JONES fraudulently billed Medicare, on behalf of Abide, for the medically unnecessary home health services.
U.S. District Judge Susie Morgan sentenced SHELTON BARNES, age 64, to sixty (60) months imprisonment, followed by one (1) year of supervised release, and restitution in the amount of $10,850,229 to be paid to Medicare.
Judge Morgan sentenced HENRY EVANS, age 74, to fifty (50) months imprisonment, followed by one (1) year of supervised release, and restitution in the amount of $1,262,043 to be paid to Medicare.
Judge Morgan sentenced GREGORY MOLDEN, age 62, to forty-eight (48) months imprisonment, followed by one (1) year of supervised release, and restitution in the amount of $626,405 to be paid to Medicare.
Judge Morgan sentenced MICHAEL JONES, age 49, to thirty-six (36) months imprisonment, followed by two (2) years of supervised release, and restitution in the amount of $347,525 to be paid to Medicare.
Judge Morgan sentenced PAULA JONES, age 45, to one year and one day imprisonment, followed by three (3) years of supervised release, and restitution in the amount of $3,106,954 to be paid to Medicare. Upon her release from imprisonment, PAULA JONES was ordered to serve a term of home detention for a period of 24 months.
Judge Morgan sentenced JONATHON NORA, age 31, to forty (40) months imprisonment, followed by one (1) year of supervised release, and restitution in the amount of $12,921,797 to be paid to Medicare.
U.S. Attorney Strasser praised the work of the Special Agents of the Federal Bureau of Investigation and the United States Department of Health and Human Services, Office of Inspector General in investigating this matter. Assistant U.S. Attorneys Patrice Harris Sullivan, Sharan Lieberman, Maria Carboni, and Andre Lagarde prosecuted the case.
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Sherry Ann Allen Sentenced to Serve 51 Months in Prison for Embezzlement and Tax EvasionRead the Press Release
GREENEVILLE, Tenn. – On September 25, 2018, Sherry Ann Allen, 49, of Johnson City, Tennessee, was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 51 months in federal prison, as a result of her June 2018 plea of guilty to theft by a credit union officer or employee and tax evasion. Upon her release from prison, Allen will be supervised by U.S. Probation for three years. She was also ordered to pay a total of $1,237,547.04 in restitution.
In November 2017, the Johnson City Police Department (JCPD) contacted members of the Greater Eastern Credit Union (credit union) management team after it received information regarding an abnormality in the payment to a vendor. JCPD provided the details and credit union personnel conducted an internal review of the transaction, which showed that Allen had paid a vendor and purposely and personally processed a transaction in which $10,000 was transferred to an account that she controlled. During their review, credit union personnel discovered additional transactions Allen processed in which funds were deposited into other accounts she controlled. The credit union personnel informed their Board of Directors that Allen was stealing money from the credit union and she was placed on indefinite suspension. The Board of Directors ordered that an accounting firm conduct a fraud examination. By this time, the FBI and Internal Revenue Service Criminal Investigation had joined the investigation.
The investigation revealed that Allen had embezzled $1,195,596 in calendar years 2011 to 2017. She used some of the stolen money for her personal benefit. In the beginning, she used the stolen money to pay her credit cards and later purchased an Infiniti and Ford truck for personal use. Allen and her husband also took a cruise and trips to Tucson, Arizona and Eastern Europe. Additionally, she purchased a timeshare in Orlando, Florida, a camper, clothes and jewelry.
Allen donated some of the stolen money to charitable causes. She took her church youth group on several trips, including missions to Ireland, Nicaragua, and Florida. She paid for Vacation Bible School items. She gave stolen money to people who needed groceries and purchased two vehicles for members of her church.
Allen did not report the embezzled and misapplied money as income on her joint tax returns in tax years 2011, 2012, 2013, 2014 2015 and 2016. In doing so, she and her spouse, prepared and filed, or caused to be prepared and filed false and fraudulent tax returns.
“The U.S. Attorney’s office will continue to prosecute individuals in positions of trust, who steal or misappropriate funds for their own personal use, when the cases are referred to our office,” said J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee.
“The prosecution of individuals who intentionally conceal income and evade taxes is a vital element of the IRS' enforcement strategy,” said Matthew D. Line, Special Agent in Charge. “No matter the source of income, all income is taxable, including embezzled funds. When a bank executive, such as Ms. Allen, misuses their position, it violates the public trust and puts the financial stability of the institution at risk. IRS Criminal Investigation is committed to using our forensic accounting skills to help unravel complex fraud schemes, to investigate and prosecute individuals who attempt to enrich themselves by fraudulent means, and to help put a stop to this and other types of white collar crime."
"Solid partnerships in law enforcement are key to the success of our mission, said Troy Sowers, Special Agent in Charge of the FBI's Knoxville Field Office. The Johnson City Police Department and the IRS-Criminal Investigation agents worked tirelessly with us to help bring the accused to justice. I thank them for their efforts and look forward to working future cases."
Agencies involved in this investigation included the FBI, IRS-Criminal Investigation and Johnson City Police Department. Assistant U.S. Attorney Robert M. Reeves represented the United States in court proceedings.
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Serial Bank Robber Sentenced to 235 Months of ImprisonmentRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that William Fischer, age 46, of Dunmore, Pennsylvania, was sentenced on September 21, 2018, by United States District Court Judge Malachy E. Mannion to 235 months’ imprisonment for robbing 14 banks and brandishing firearms during the course of those robberies.
According to United States Attorney David J. Freed, Fischer robbed 14 banks located throughout northeastern Pennsylvania between December 1, 2015 and September 13, 2017. Fischer was apprehended shortly after the September 13, 2017 robbery by the Pennsylvania State Police. For 12 of the offenses, Fischer robbed the banks while armed with a firearm. He also was convicted of brandishing a firearm during a crime of violence. Fischer wore a ballistic vest during the robberies and was arrested with a loaded assault rifle and a loaded handgun. Fischer’s crime spree netted $203,779.30; law enforcement recovered $16,769.00 of the stolen funds.
December 1, 2015
NBT Bank, Elmhurst
$6,946
December 22, 2015
NBT Bank, Newfoundland
$4,000
January 13, 2016
Community Bank, Scranton
$27,100
February 4, 2016
NBT Bank, Scranton
$9,136
February 11, 2016
NBT Bank, Newfoundland
$19,013
March 21, 2016
First Keystone Community Bank, Newfoundland
$13,413.98
April 7, 2016
Community Bank, Scranton
$40,226.50
October 3, 2016
First National Bank, Tannersville
$16,764.80
October 27, 2016
First Keystone Community Bank, Stroudsburg
$13,020
December 15, 2016
NBT Bank, Eynon
$8,717
January 26, 2017
PNC Bank, West Pittston
$11,159
June 8, 2017
NBT Bank, Eynon
$5,790.02
August 7, 2017
First National Bank, Tannersville
$11,724
September 13, 2017
Peoples Security Bank and Trust, Gouldsboro
$16,769
In addition to the sentence of imprisonment, Judge Mannion ordered that Fischer pay $187,010.30 to the victims of his crimes. The United States forfeited $29,697.75 of Fischer’s assets, 24 firearms, ammunition, a suppressor, and other firearms components.
The matter was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and by numerous local law enforcement authorities throughout northeastern Pennsylvania. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
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San Francisco Resident Sentenced to Nearly 10 Years in Prison for Illegal Possession of A FirearmRead the Press Release
SAN FRANCISCO – Valentino Johnson was sentenced to 114 months in prison for illegally possessing a firearm in the Bayview neighborhood of San Francisco, announced United States Attorney Alex G. Tse and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Rayfield Roundtree. The sentence was handed down today by the Honorable Vince Chhabria, U.S. District Judge.
Johnson was convicted of the charge on August 28, 2015, following a jury trial. On April 4, 2016, the defendant was sentenced to eight years in prison. After a government appeal, the Ninth Circuit Court of Appeals reversed the sentence and remanded to the District Court for resentencing.
The evidence at trial and sentencing showed that Johnson possessed a firearm after sustaining six felony convictions. Evidence in this case also showed that the defendant used the firearm to break into a San Francisco residence. The Court also found that the defendant obstructed justice in connection with this case by attempting to persuade another person to accept responsibility for the firearm.
The San Francisco Police Department was able to make the connection between the firearm and the defendant by testing the firearm through ATF’s National Integrated Ballistic Information Network (NIBIN). In this case, the firearm possessed by Johnson was used by Johnson’s brother to kill another person in the Mission neighborhood of San Francisco in 2011. His brother pleaded guilty to using a firearm in connection with the homicide, but the firearm itself was never recovered by the San Francisco Police Department. In 2014, SFPD discovered the firearm during a parole search of Johnson’s Bayview residence. The NIBIN test results provided key evidence establishing Johnson’s possession of the firearm.
NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. Since the program’s inception in 1999, NIBIN partners have processed approximately 99,000 NIBIN leads and 110,000 NIBIN hits. Approximately 16 million images in the network includes 3.3 million pieces of evidence.
In addition to the prison term, Judge Chhabria sentenced the defendant to a three-year period of supervised release. The defendant has been in custody since his arrest in this matter.
Assistant U.S. Attorneys Daniel Kaleba and Merry Jean Chan are prosecuting the case. The prosecution is the result of an investigation by San Francisco Police Department and ATF.
Sacramento Man Pleads Guilty to Obstruction of Justice and PerjuryRead the Press Release
SACRAMENTO, Calif. —Joseph Woloszyn, 32, of Sacramento, pleaded guilty today to one count of obstruction of justice and four counts of perjury, U.S. Attorney McGregor W. Scott announced.
According to court documents, on June 28, 2017, Woloszyn provided false testimony under oath at an evidentiary hearing in the case of United States v. M.W., 2:13-cr-067-KJM. Woloszyn testified on behalf of the defendant and provided false statements related to his gang tattoos, nickname, phone number, and contacts with the defendant. Prior to his testimony, during a recorded jail call, Woloszyn told the defendant “When they come to me, good luck.” Woloszyn further assured the defendant, “I’m going to stay solid all the way through, regardless.”
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Cameron L. Desmond is prosecuting the case.
Woloszyn is scheduled to be sentenced by U.S. District Judge John A. Mendez on January 15, 2019. Woloszyn faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Roswell Man Charged with Federal Child Pornography OffensesRead the Press Release
ALBUQUERQUE – A U.S. Magistrate Judge sitting in Las Cruces, N.M., today found probable cause to support a criminal complaint charging Dain Justin Adams, 37, of Roswell, N.M., with child pornography offenses. The Magistrate Judge also remanded Adams into custody pending trial, which has yet to be scheduled.
The FBI arrested Adams on Sept. 19, 2018, on a criminal complaint charging him with possessing and distributing child pornography from May 2018 through June 2018, in Chaves County, N.M. According to the complaint, the investigation leading to Adams’ arrest began in May 2018, when a special agent of the New Mexico Attorney General’s Office who was working in an undercover capacity signed into a peer-to-peer file-sharing network which allegedly was used by individuals who shared child pornography. The special agent learned that an IP Address subscribed to Adams’ residence in Roswell allegedly was being used to share child pornography.
On June 27, 2018, state law enforcement executed a state search warrant on Adams’ residence. While executing the search warrant, law enforcement seized multiple devices including a computer, which allegedly contained at least seven videos of suspected child pornography.
The statutory penalty for a conviction on a distribution of child pornography charge is a mandatory minimum of five years and maximum of 20 years of imprisonment. The statutory penalty for a conviction on a possession of child pornography charge is a maximum of 20 years in prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Roswell office of the FBI, the New Mexico Attorney General’s Office and the Chaves County Sheriff’s Office. Assistant U.S. Attorneys Marisa A. Ong and Dustin Segovia of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Rio Rancho Woman Pleads Guilty to Federal Charges Arising Out of Mail Theft SchemeRead the Press Release
ALBUQUERQUE – Felicia Gonzales, 31, of Rio Rancho, N.M., pled guilty today in federal court in Albuquerque, N.M, to a series of federal charges uncovered by a U.S. Postal Inspection Service investigation into a mail theft scheme. Gonzales entered her guilty plea without the benefit of a plea agreement.
U.S. Postal Inspectors arrested Gonzales on April 23, 2018, on a criminal complaint charging her with theft of mail, bank fraud, and identity theft. According to the complaint, the investigation revealed that in March 2018 and April 2018, Gonzales used a counterfeit U.S. Postal Service “arrow key” to access community mailboxes in neighborhoods throughout Albuquerque and steal mail. The investigation also revealed that Gonzales made unauthorized purchases using credit cards that were not delivered to their intended recipients. When she was arrested, Gonzales was armed with a pistol.
Gonzales subsequently was charged in an eleven-count indictment on May 9, 2018, with one count of being a felon in possession of a firearm and ammunition, four counts of possession of stolen mail, two counts of possession of a counterfeit U.S. Postal Service “arrow key,” three counts of bank fraud, and one count of aggravated identity theft. According to the indictment, Gonzales committed the offenses between Feb. 24, 2018 and April 23, 2018, in Bernalillo County, N.M., and elsewhere. The indictment charged Gonzales with committing the postal theft offenses by stealing mail from mailboxes by using a counterfeit U.S. Postal Service “arrow key.” The mail stolen included debit and credit cards with personal identifiers of victims, which were used to commit the bank fraud offenses.
During today’s change of plea hearing, Gonzales plead guilty to all eleven counts of the indictment.
Gonzales’ sentencing hearing has yet to be scheduled. At sentencing, Gonzales faces a maximum penalty of 30 years in federal prison on the bank fraud charges, ten years on the firearms charge, five years on the postal theft charges, and ten years on arrow key theft charges. Gonzales also faces a mandatory term of imprisonment of two years on the aggravated identity theft charge, which must be served consecutive to any other sentence imposed on the other charges.
The U.S. Postal Inspection Service investigated this case, which is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Rio Rancho Felon Sentenced to Seven Years in Prison for Unlawfully Possessing Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Cory G. Bates, 29, of Rio Rancho, N.M., was sentenced today in federal court in Albuquerque, N.M., to 84 months in prison for violating the federal firearms laws by unlawfully possessing a firearm. Bates will be on supervised release for three years after completing his prison sentence.
Bates, whose prior criminal history includes felony convictions for aggravated burglary with a deadly weapon, armed robbery, aggravated battery with a deadly weapon, and cocaine trafficking, was prosecuted as part of a federal anti-violence initiative that targets violent, repeat offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target for federal prosecution violent or repeat offenders with the goal of making communities in New Mexico safer places for people to live and work.
Bates was arrested in June 2016, on an indictment charging him with being a felon in possession of a firearm and ammunition on Jan. 9, 2016, in Bernalillo County, N.M. According to the indictment, Bates was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
On Feb. 5, 2018, Bates pled guilty to the indictment and admitted that on Jan. 9, 2016, he possessed a firearm and ammunition despite his status as a convicted felon.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorney George C. Kraehe prosecuted the case.
Queens Man Pleads Guilty to Armed Bank Robbery and Weapons PossessionRead the Press Release
Earlier today, in federal court in Central Islip, Troy Tavares pleaded guilty before United States District Judge Joanna Seybert to armed bank robbery and a firearms possession charge related to his role as the getaway driver in the gunpoint robbery of the Bridgehampton Savings Bank in Hewlett, New York. When sentenced, Tavares faces up to 25 years’ imprisonment for the bank robbery and a minimum of seven years’ imprisonment and up to life in prison for the firearms charge.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the guilty plea.
According to court filings and prior public proceedings in the case, on August 21, 2017, Tavares drove a coconspirator, Pedro Benitez, to the Bridgehampton Savings Bank. While Tavares waited outside in the vehicle, Benitez entered the bank and ordered customers and employees of the bank to the floor at gunpoint and demanded money from bank employees. After Benitez fled the bank with over $12,000, Tavares drove him to a nearby location where they met with other conspirators to split the proceeds. At his guilty plea, Tavares admitted that he had also participated in two additional robberies that the crew committed during the summer of 2017, one in Nassau County and one in Queens. In each of those robberies, Tavares had acted as the getaway driver for Benitez, who entered the banks and robbed the bank employees of the banks’ cash. In total, the robbery crew stole over $70,000 from four banks between July and September of 2017.
In March 2018, Benitez pleaded guilty to armed bank robbery and brandishing a firearm. He has been sentenced to 130 months’ imprisonment. Two other members of the bank robbery crew also pleaded guilty and are awaiting sentence. One other member of the robbery crew is awaiting trial.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Michael Maffei is in charge of the prosecution.
The Defendant:
TROY TAVARES
Age: 22
Far Rockaway, New YorkE.D.N.Y. Docket No. 17-572 (S-1) (JS)
Queens Attorney and Second Individual Indicted for Scheme to Bribe a Witness in Double Homicide Trial on Long IslandRead the Press Release
A superseding indictment was unsealed today in federal court in Brooklyn charging Queens-based criminal defense attorney John Scarpa, Jr., and Charles Gallman, also known as “T.A.,” with violating the Travel Act by bribing a witness who testified in a double-homicide trial in Suffolk County Supreme Court. Scarpa was arrested earlier today and will be arraigned this afternoon in federal court in Brooklyn before United States Magistrate Judge Steven L. Tiscione. Gallman will be arraigned at a later date.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Richard A. Brown, District Attorney of Queens County, announced the charges.
“As alleged, the defendants bribed a witness to commit perjury in an effort to help Scarpa’s client, who had committed two execution-style murders, escape justice,” stated United States Attorney Donoghue. “This Office and our law enforcement partners will never tolerate the rigging of a trial and will vigorously prosecute attorneys or anyone else who seeks to undermine the integrity of the judicial process by witness tampering.” Mr. Donoghue also expressed his grateful appreciation to the Office of the Suffolk County District Attorney for its assistance during the investigation.
“Defense attorneys do all they can to help their clients fight criminal charges, which is everyone’s right by law,” stated FBI Assistant Director-in-Charge Sweeney. “However, Mr. Scarpa allegedly broke the law trying to get his client off the hook for murder charges by bribing a witness. Everyone accused deserves the best defense, but attorneys cannot use illegal methods to win in court.”
“We will continue to work with our federal partners to root out corruption in the criminal justice system wherever it is found,” stated Queens District Attorney Brown. “I will say again that integrity is the foundation of our criminal justice system. These allegations go to the core of that foundation and are prejudicial to the administration of justice. The charges today send a strong message to those who would undermine that integrity that they will be held accountable. I commend the United States Attorney’s Office for the Eastern District and the Federal Bureau of Investigation, the Suffolk County District Attorney’s Office and my Rackets, Special Victims and District Attorney’s Detective Bureaus for their vigorous pursuit of justice in this matter.”
As alleged in the indictment and detailed in court filings, the charges stem from an investigation conducted by the Queens County District Attorney’s Office. Court-authorized intercepted communication between Scarpa and Gallman showed how the two men plotted to bribe a witness, Luis Cherry, in a Suffolk County criminal trial against Reginald Ross. Scarpa represented Ross, who was ultimately convicted of the unrelated murders of two men: Raymond Hirt, a road crew flagman killed at his jobsite in May 2010 because Ross was upset about traffic, and John Williams, whom he shot to death in October 2010 as Williams was going to work, mistaking Williams for his brother. Cherry participated in the Williams murder, and had pleaded guilty to that murder as well as another.
On January 13, 2015, Gallman visited Cherry at Downstate Correctional Facility and spoke to him about testifying at Ross’s trial. Thereafter, Gallman reported to Scarpa: “Anything we need, he’s willing. Whichever way you wanna play it, he’s willing.” Later in the conversation Scarpa asked, “So this guy is willing to do whatever?” And Gallman confirmed, “Whatever you need, John. Whatever you need.” Gallman added that there was a “bunch of stuff I wrote down that [Cherry] wants.”
Scarpa called Cherry as a defense witness at trial and led Cherry through perjurious testimony relevant to the Williams murder. For example, Cherry claimed that he had committed the murder alone after he crawled from the driver’s seat and exited through the passenger side of his vehicle with firearms in both hands despite physical evidence that clearly indicated two gunmen were involved. When asked on cross-examination about meeting Gallman, Cherry falsely denied that they had talked about the murder case.
The charges in the superseding indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, Scarpa and Gallman face up to five years’ imprisonment on each count.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Lindsay K. Gerdes and Andrey Spektor are in charge of the prosecution.
The Defendants:
JOHN SCARPA, JR.
Age: 65
Queens, New YorkCharles gallman (also known as “t.a.”)
Age: 56
Queens, New YorkE.D.N.Y. Docket No. 18-CR-123 (S-1) (CBA)
Pueblo Man Pleads Guilty to Federal Drug ChargeRead the Press Release
DENVER – Robert Ray Deluna, age 26, of Pueblo, Colorado, pled guilty today before U.S. District Court Judge Raymond P. Moore to possession of a controlled substance, U.S. Attorney Bob Troyer and Bureau of Alcohol, Tobacco, Firearms and Explosives Denver Field Division Special Agent in Charge Debbie Livingston announced. Deluna appeared at the hearing in custody, and was remanded at its conclusion. He is scheduled to be sentenced by Judge Moore on December 18, 2018. Deluna was indicted by a federal grand jury in Denver on June 21, 2018.
According to the stipulated facts contained in the defendant’s plea agreement, on March 29, 2018, Colorado Department of Correction Parole Officers in Pueblo were out looking for Deluna for violating the terms of his parole. They found him in the back seat of a vehicle, where he sat with a backpack between his legs.
Pursuant to conditions of his parole, Deluna consented to the search of his property. The parole officers looked inside the backpack and located two electronic scales and baggies. Inside the compartment on the rear of the driver’s seat – directly in front of where he was sitting was a .45 caliber pistol and a zippered bag. Inside the zippered bag were two baggies with Heroin – 4.88 grams in one and .40 grams in the other. Also in the bag was Deluna’s Colorado Identification Card and his Department of Corrections card.
This case was investigated by the Colorado Department of Corrections Office of Parole, the ATF Denver Field Division and the Pueblo Police Department. The defendant is being prosecuted by Assistant U.S. Attorney Kurt Bohn.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Office to develop a district crime reduction strategy that incorporates the lessons learned since PSN was launched in 2001.
Owner of Connecticut and New York Pizza Restaurants Pleads Guilty to Federal Tax ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that STEVEN CIOFFI, 32, of Stamford, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to a federal tax offense.
According to court documents and statements made in court, CIOFFI owned 50 percent of Nepperhan Restaurants Group, Inc., doing business as ReNapoli Pizza, in Old Greenwich, Connecticut, and Pinocchio Pizza in Pound Ridge, New York. He also owned 25 percent of Odell Pizza, Inc., doing business as Amore Cucina and Bar in Stamford, Connecticut. CIOFFI’s business partner owned the other interests in these entities, as well as other pizza restaurants.
CIOFFI and others in the businesses engaged in a practice whereby cash was removed from the cash register and not deposited into the restaurant’s operating bank account. The businesses’ outside bookkeeper and accountant used the bank records to determine business gross receipts. When cash was removed from the register and not deposited into the business bank account, the cash would not be reported to the Internal Revenue Service. CIOFFI also knew that certain employees had their wages paid in cash, and that a certain number of the employees were paid either a portion or the entirety of their wages “off the books.” By paying various expenses in cash and “off the books,” CIOFFI, his business partner and others facilitated the manipulation of net income reported to the IRS and the underpayment of withholding taxes to the IRS.
As a result of the scheme, the loss to the IRS in income taxes and employment taxes for the 2013 through 2015 tax years was $122,177.59.
CIOFFI pleaded guilty to one count of aiding and assisting in the filing of a false tax return, an offense that carries a maximum term of imprisonment of three years, a fine of up to $250,000, and full restitution to the IRS.
A sentencing date is not scheduled. CIOFFI is released on a $40,000 bond pending sentencing.
This ongoing investigation is being conducted by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Organized Crime Drug Enforcement Task Force Established to Go After Large Scale Drug Trafficking Organizations Operating in Southeast MichiganRead the Press Release
United States Attorney Matthew Schneider is proud to announce the establishment of the Southeast Michigan Regional Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force. This is an unprecedented step to co-locate so many federal as well as state and local resources to address the unique challenges in the southeast Michigan region.
This multi-agency Strike Force is composed of personnel from the FBI, Homeland Security Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, U.S. Border Patrol, U.S. Marshals Service, U.S. Postal Inspection Service, and approximately 26 state, local and Canadian law enforcement agencies.
The Department of Justice recognized that Southeast Michigan had both a significant opioid problem and a violent gang problem. Analysis of investigations in the Region found that domestic cartel and violent street gangs are responsible for distribution of Mexican-sourced heroin, fentanyl-laced heroin and pure fentanyl here. Additionally, DOJ noticed a significant increase in overdose deaths as well as identified over 140 neighborhood-based gangs operating in the Region. These gangs were and are facilitating the drug trade and using violence to control their territories and prevent cooperation with law enforcement.
In response to this problem, the Southeast Michigan Strike Force will coordinate investigations to identify, disrupt, dismantle, and prosecute transnational criminal organizations, violent drug trafficking organizations, firearms trafficking organizations, and their subsidiary organizations, which operate throughout the southeast Michigan region, the United States and the world. The Strike Force will focus cooperative investigations on dissolving these organizations, their financial infrastructures, and the violence and associated deaths they bring to our communities.
“While all of us have been working individually to fight gangs and drugs, our individual efforts were not as effective as we wanted,” stated United States Attorney Matthew Schneider. “We know that gangs and cartels work together. So we’re doing the same thing. We’re going to step up our efforts. We are now communicating immediately, sharing intelligence, and planning our attacks against these criminals together.”
“As a part of the Southeast Michigan OCDETF Strike Force, we are committed to a long-term partnership that allows law enforcement to reduce the illegal drug supply by aggressively targeting criminal organizations operating throughout southeast Michigan,” stated DEA Special Agent in Charge Timothy J. Plancon. “Drug trafficking and violence go hand-in-hand, which is why federal, state and local law enforcement are making these dangerous drug trafficking organizations a top priority. By working with our partners, we are able to bring these violent individuals to justice and improve the safety of our communities. We are focused on the current opioid epidemic, but this initiative is ready to adapt to any future drug threat facing southeast Michigan“
“The Strike Force model, which has proven effective in other areas of the country, will certainly be highly successful in the fight against criminal organizations that are flooding our communities with dangerous narcotics. The influx of these drugs into our communities feeds other illicit activities including human trafficking, carjackings, homicides and other gang-related violent crime.” said Special Agent in Charge Timothy R. Slater, FBI Detroit. “Combining the resources and capabilities of the agencies responsible for investigating and prosecuting these crimes will improve our ability to target, disrupt and ultimately dismantle those organizations distributing drugs and contributing to violence in communities throughout Southeast Michigan.”
“As criminal organizations become increasingly sophisticated in their activities, the law enforcement community must continue to partner to leverage our unique capabilities and combined resources to combat this ever evolving threat,” said Steve Francis, Special Agent in Charge of Homeland Security Investigations (HSI) Detroit.
“Special Agent in Charge Manny Muriel, IRS - Criminal Investigation, stated, “The IRS-CI will utilize our expertise as financial investigators and leverage our domestic and international partnerships to combat national and transnational money laundering organizations.” Muriel continued, “Similarly we will continue to work with our law enforcement and private sector partners to repeatedly assess ongoing and emerging money laundering threats.”
Since its inception in October 2017, the members of the Southeast Michigan Regional Strike Force have been responsible for the seizure or over 35 kilograms of fentanyl, 25 kilograms of heroin, 50 kilograms of cocaine, as well as the seizure of 12 weapons and approximately three million dollars in drug proceeds. The seized fentanyl alone would have exponentially fueled the opioid epidemic in the region and was enough to have killed approximately 15 million people based on the lethal dosage threshold. In addition, over 100 people have been arrested. Some of the people arrested by Strike Force members have been sentenced to extensive terms of incarceration related to the delivery of controlled substances which caused the death of those who developed an addiction to opioids.
The local agencies include Michigan State Police, Michigan National Guard, Canton Township Police Department, Detroit Police Department, Northfield Township Police Department, Washtenaw County Sheriff’s Office, Oakland County Sheriff’s Office, Walled Lake Police Department, Shelby Township Police Department, Southgate Police Department, Livonia Police Department, Livingston County Sheriff’s Department, Milan Police Department, Pittsfield Charter Township Police Department, Plymouth Township Police Department, Brownstown Police Department, Woodhaven Police Department, Allen Park Police Department and the Wayne County Airport Authority. The Canadian law enforcement agencies include the London Police Service, Ontario Provincial Police, Royal Canadian Mounted Police, Windsor Police Service and the Canada Border Services Agency. Also included are the Michigan State Attorney General’s Office and Wayne County Prosecutor’s Office.
Newport Man Sentenced to over Seven Years for Conspiring to Distribute over a Kilogram of HeroinRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Todd Shorey, 54 of Newport, Maine, was sentenced today in U.S. District Court by Senior Judge John A. Woodcock, Jr. to 84 months in prison and five years of supervised release for conspiring to distribute over a kilogram of heroin. He was also fined $5,000. Shorey pleaded guilty on April 24, 2017.
According to court records, between May 2015 and January 2016, Shorey conspired with Jamie Akerson and others to obtain large quantities of heroin on a weekly basis from an out-of-state supplier and to have it distributed by others throughout Central Maine.
In imposing the sentence, Judge Woodcock described Shorey as a “traitor” to his community.
The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta Police Department, and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
New York Man Sentenced to over Seven Years for Conspiring to Distribute Heroin and CrackRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Brent Hercules, a/k/a “Herc,” 32, of Rochester, New York, was sentenced today in U.S. District Court by Senior Judge John A. Woodcock, Jr. to 87 months in prison and three years of supervised release for conspiring to distribute heroin and cocaine base, commonly known as “crack.”
According to court records, between June 2015 and March 2017, Hercules conspired with others to acquire heroin, fentanyl and crack in Rochester and transport it to Central Maine for distribution. The defendant served as a courier. He transported drugs and drug dealers from Rochester to Central Maine and brought drug proceeds back to Rochester.
The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta Maine Police Department and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
New York Man Sentenced to 46 Months in Prison for Role in Identity Theft and Bank Fraud SchemeRead the Press Release
WASHINGTON – Krishna Jannor-John Marsh, 22, formerly of New York, N.Y., was sentenced today to 46 months in prison for an identity theft scam in which he traveled throughout the country to conduct fraudulent bank transactions.
U.S. Attorney Jessie K. Liu, Brian J. Ebert, Special Agent in Charge, Washington Field Office, U.S. Secret Service and Peter R. Rendina, Inspector in Charge of the Washington Division, U.S. Postal Inspection Service, made the announcement.
Marsh pled guilty in July 2018, in the U.S. District Court for the District of Columbia, to a charge of conspiracy to commit bank fraud. He was sentenced by the Honorable James E. Boasberg. In addition to the prison term, Marsh was ordered to pay $338,100 in restitution to three banks, as well as a forfeiture money judgment of $50,000. Following his prison term, he will be placed on three years of supervised release.
According to the government’s evidence, Marsh conspired with others, including a former bank employee, to obtain access to account holders’ personal identifying information for no legitimate business purpose. He and others then presented counterfeit identification in the names of the account holders and conducted or attempted to conduct fraudulent transactions from their accounts.
Fictitious accounts were opened at other financial institutions, and the conspirators wired funds and deposited checks from the compromised bank accounts into these fictitious accounts. In his guilty plea, Marsh accepted responsibility for causing $338,100 in losses to three banks. Marsh conducted bank transactions at multiple locations in the District of Columbia, California, Florida and New York.
In announcing the sentence, U.S. Attorney Liu, Special Agent in Charge Ebert and Inspector in Charge Rendina commended the work of those who investigated the case from the U.S. Secret Service and U.S. Postal Inspection Service. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Zia M. Faruqui, who assisted with forfeiture issues, Paralegal Specialist Joshua Fein, and former Paralegal Specialist Kristy Penny. Finally, they commended the work of Assistant U.S. Attorney Anthony Saler, who investigated and prosecuted the case.
New Jersey Man Pleads Guilty in Extensive Mortgage Fraud Scheme in Rhode IslandRead the Press Release
PROVIDENCE, R.I. – A New Jersey man previously convicted in federal court in Massachusetts and incarcerated for masterminding a real estate fraud scheme, pleaded guilty in federal court in Providence on Friday to charges that he again conspired to defraud financially distressed homeowners, investors, and financial institutions of fees, rental income, mortgage payment funds, property ownership and/or proceeds from the sale of their properties.
Hasan Hussain, 57, of Princeton, N.J. also pled guilty to aggravated identity theft in connection with the scheme.
Hussain’s guilty plea before U.S. District Court Judge John J. McConnell, Jr., is announced by United States Attorney Stephen G. Dambruch; Christina D. Scaringi, Special Agent in Charge of the Northeast Region of the U.S. Department of Housing and Urban Development Office of Inspector General; Brian Deck, Resident Agent in Charge of the Providence Office of the U.S. Secret Service; Harold H. Shaw, Special Agent in Charge of the Boston Division of the FBI; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
At the time of his guilty plea to the most recent federal indictment, Hussain admitted to using various business entities to trick distressed property owners, who were seeking loan modifications, into paying him fees, moving out of their homes, and selling their homes in short sale transactions. As part of the plea, Hussain further admitted that he convinced lenders to agree to artificially low sale prices for the distressed property owners’ homes by directing other individuals to damage the properties prior to the short sales. Thereby, Hussain, or individuals or businesses associated with him, acquired the properties at reduced prices, and then flipped them to investors at much higher prices. During his change of plea, Hussain admitted that these investors were defrauded of their funds, or good credit, or both when they agreed to purchase properties from Hussain.
Hussain further admitted that he assisted investors to acquire federally backed mortgages through fraudulent applications, ultimately resulting in losses to the lenders or the Federal Housing Administration. Some of the tactics employed by Hussain as part of the scheme included misuse of identities and cutting and pasting signatures on property deeds and financial documents.
As part of his plea agreement, Hussain admitted that his scheme resulted in losses between $550,000 and $1.5 million dollars; that ten or more victims were harmed; and that at least some of his victims were particularly vulnerable, as a result of their personal situation. The plea agreement also provided that the government would seek a leadership enhancement for Hussain given the extensive nature of the scheme and his role in it.
At sentencing on January 8, 2018, Hussain faces up to 32 years in federal prison, 5 years of supervised release, and a fine of $1,250,000.
A co-defendant in this matter, Ricardo Abreu, who pled guilty earlier this year is scheduled to be sentenced on October 30, 2018.
The case is being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert, Richard B. Myrus, and William J. Ferland.
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Native of Mexico Charged with Illegal ReentryRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Gerino Barrera-Tapia, 37, was arrested and charged by criminal complaint with illegal reentry after deportation. The charge carries a maximum penalty of two years in prison.
Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated that according to the complaint, on September 12, 2018, a Cattaraugus County Sheriff's Deputy encountered the defendant during a vehicle safety check. United States Border Patrol was contacted to assist in identifying Barrera-Tapia. During questioning, the defendant stated that he was a citizen of Mexico and was illegally present in the United States. He was taken into custody. Subsequent investigation determined that Barrera-Tapia was a native and citizen of Mexico. A records check determined that the defendant was removed from the United States in February 2008.
Barrera-Tapia made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and was detained.The complaint is the result of an investigation by the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Timothy Whitcomb, and U.S. Border Patrol, under the direction of Patrol Agent-in-Charge Steven Oldman.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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National Hospital Chain Will Pay over $260 Million to Resolve False Billing and Kickback AllegationsRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain today announced a $55 million civil settlement with Health Management Associates (HMA) to resolve civil allegations relating to two hospitals in Lancaster, Pennsylvania. The resolution of these claims in the Eastern District is part of a larger $260 million settlement between the Department of Justice and HMA which arose out of HMA’s fraudulent billing practices in multiple healthcare institutions across the United States.
Between 2009 and 2012, two former HMA hospitals, Lancaster Regional Medical Center and Heart of Lancaster Medical Center in Pennsylvania, billed federal health care programs for services referred to the hospitals by individual physicians and physician groups. According to the government, HMA compensated these physicians and physician groups through complex kickback arrangements in exchange for a patient referral stream. In one instance, HMA bought two businesses from a physician group for grossly inflated amounts. HMA also paid that same physician group under a contract that was styled as payment for services that were never performed or that neither party ever had any intention of performing. In another instance, HMA paid a local surgeon exorbitantly more than the fair market value of his services. According to the government, these arrangements were intentionally structured to disguise payments which were, in actuality, payments for patient referrals, not for legitimate services.
“Our resolution of this matter and the significant recovery we have obtained show once again that no matter how complex the scheme is, we will find it, stop it, and punish it,” said U.S. Attorney McSwain. “HMA covered up kickbacks for patient referrals with a host of sham joint venture agreements, lease payments, and management agreements. These sorts of improper physician inducements are a form of ‘pay to play’ business practices that will not be tolerated. Healthcare institutions cannot pad their bottom line at the expense of the American taxpayers. And most importantly, this conduct must be rooted out because it gets in the way of providing top-notch patient care to American citizens.”
The allegations resolved by the settlement were brought in eight lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The eight qui tam cases, which were filed in various districts including the Eastern District of Pennsylvania, were transferred to the U.S. District Court for the District of Columbia as part of a multi-district litigation presided over by the Honorable Reggie B. Walton.
George E. Miller and Michael J. Metts, former HMA hospital executives in Lancaster, filed suit in the Eastern District of Pennsylvania, alleging the improper financial relationships between HMA and the physicians groups. Mr. Miller and Mr. Metts will receive approximately $12.4 million as their share of the recovery from HMA in that case. “We sincerely thank Mr. Miller and Mr. Metts. Together with their lawyers, these two citizens provided essential assistance to the government throughout this case. Without the willingness of relators to shed light on allegations, preserving government program funds would be far more challenging. Their efforts played a vital role in the resolution of these cases,” said U.S. Attorney McSwain.
“Compliance with government healthcare rules requires that patients only receive treatment they actually need. Then government programs should be billed just for those services. No more, no less,” said Derrick L. Jackson, Acting Assistant Inspector General for Investigations at the U.S. Department of Health and Human Services. “Let there be no doubt—we will continue to protect federal healthcare programs and beneficiaries by holding provider organizations fully accountable.”
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General and U.S. Office of Personnel Management Office of the Inspector General. For the U.S. Attorney’s Office, the investigation and settlement were handled by Assistant U.S. Attorneys Charlene Keller Fullmer and Veronica Finkelstein.
The civil claims resolved by the settlement are allegations against HMA only, and there has been no determination of liability.
Milton Man Pleads Guilty to Sex TraffickingRead the Press Release
BOSTON – A Milton man pleaded guilty today in federal court in Boston to federal sex trafficking charges.
Duhamel Cassagnol, 30, pleaded guilty to sex trafficking by force, fraud, or coercion; engaging in a conspiracy to commit sex trafficking; and transporting an individual for prostitution. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Dec.18, 2018. On Dec. 8, 2017, Cassagnol was arrested along with Geneiva Whaley, 23, of Connecticut. In May 2018, Whaley pleaded guilty to one count of transportation of an individual for prostitution and is scheduled for be sentenced on Oct. 4 2018.
Between approximately July 2014 and February 2016, Cassagnol worked with Whaley to prostitute several victims. Cassagnol and Whaley advertised the victims using online ad-posting sites, including Backpage.com, and housed the victims in hotel rooms reserved in Whaley’s name in Massachusetts, Connecticut, New York and Florida.
The victims being prostituted were addicted to drugs, usually heroin. To keep their victims compliant, Cassagnol and Whaley provided them with drugs in exchange for the income the women earned through prostitution. The victims were only entitled to drugs if they generated income. In some instances, Cassagnol was violent and threatened several of the victims. The violence included beating the victims and, during one instance, forcing a victim to use drugs against her will.
The charge of sex trafficking through force, fraud, or coercion provides for a sentence of no less than 15 years and up to life in prison, no less than five years and up to a lifetime of supervised release, and a fine of up to $250,000. The charge of conspiracy to commit sex trafficking provides for a sentence of up to life in prison, no less than five years and up to a lifetime of supervised release, and a fine of up to $250,000. The charge of transporting an individual for prostitution provides for a sentence of up to 10 years in prison, no less than five years and up to a lifetime of supervised release, and a fine of up to $250,000. Each count also provides for mandatory restitution and forfeiture. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Peter C. Fitzhugh, Special Agent in Charge of the Homeland Security Investigations in Boston, made the announcement today. Assistance with the investigation was provided by the Massachusetts State Police, Lexington and Needham Police Departments, and Vernon (Connecticut) Police Department. Assistant U.S. Attorney Brian A. Pérez-Daple of Lelling’s Civil Rights Enforcement Team is prosecuting the case.
Miami Resident Convicted at Trial of Robbing Miami Shores TD Bank at Gunpoint and Brandishing and Discharging Firearm in Furtherance of the Armed RobberyRead the Press Release
Following a one-week jury trial, on September 21, 2018, Joudanorve Lafleur, of Miami, Florida, was convicted of armed bank robbery, and brandishing and discharging a firearm in furtherance of the armed robbery.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida and Robert Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office made the announcement.
According to evidence presented at trial, at approximately 9:20 a.m. on April 20, 2018 at a TD Bank in Miami Shores, Lafleur, wearing a black ski mask, black hoodie, and pants, robbed two bank tellers and one bank customer at gunpoint. After repeatedly demanding “all of the hundreds” from his victims, Lafleur fired a bullet into the ceiling of the bank. Then, he fled, with more than $2,000.
The FBI tracked Lafleur to his residence within an hour of the robbery, and after a search of Lafleur’s home, investigators recovered his disguise (mask and hoodie), the stolen money, and the firearm used in the robbery, among other items. Evidence at trial also showed that Lafleur robbed one of his elderly neighbors, stealing his clothes in the minutes before law enforcement arrived, in an attempt to distance himself from the crime and change his appearance. The trial evidence included witness testimony, bank surveillance video, DNA expert testimony, and cellular telephone analysis.
Sentencing is scheduled before U.S. District Judge Jose E. Martinez on December 5, 2018, at 2:00 p.m. Lafleur faces up to twenty five years in prison for the bank robbery and a consecutive mandatory minimum term of ten years to life in prison for brandishing and discharging the firearm offense of conviction.
This case stems from Project Safe Neighborhoods (PSN), a program that brings 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.
Mrs. Fajardo Orshan commended the investigative efforts of the FBI in this matter. This case is being prosecuted by Assistant U.S. Attorneys Lisa H. Miller and Jessica K. Obenauf.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Menominee and Oneida Tribes Receive Federal Grants from the Department of JusticeRead the Press Release
United States Attorney Matthew Krueger of the Eastern District of Wisconsin joined the Department of Justice in announcing more than $113 million in grant awards to improve public safety, serve victims of crime, combat violence against women, and support youth programs in American Indian and Alaska Native communities. This includes four grants totaling $2,934,228 to the Menominee Indian Tribe of Wisconsin and two grants totaling $507,684 to the Oneida Tribe of Indians of Wisconsin. The Menominee Indian Tribe received funding for Community Policing, Violence Against Women, Substance Abuse, and Victim Assistance. The Oneida grants were for Alcohol / Substance Abuse and Youth Programs.
United States Attorney Matthew Krueger stated "Native Americans suffer from violent crimes at far too high of rates. These grants underscore the Department of Justice's commitment to working together with Native American communities to reduce such violence."
Nationwide, grants were awarded to 133 American Indian tribes, Alaska Native villages, and other tribal designees through the Coordinated Tribal Assistance Solicitation, a streamlined application for tribal-specific grant programs. Of the $113 million, just over $53 million comes from the Office of Justice Programs, more than $35 million from the Office on Violence Against Women, and more than $24.7 million from the Office of Community Oriented Policing Services.
In addition, the Department is in the process of allocating up to $133 million in a first-ever set aside program to serve victims of crime in American Indian and Alaska Native communities. The awards are intended to help tribes develop, expand and improve services to victims of crime by providing funding, programming and technical assistance. Recipients will be announced in the near future.
“With these awards, we are doubling the amount of grant funding devoted to public safety programs and serving victims of crime in Native American communities,” said Principal Deputy Associate Attorney General Jesse Panuccio. “There is an unacceptable level of violent crime and domestic abuse in American Indian and Alaska Native communities. This increase in resources, together with our aggressive investigation and prosecution of crimes, shows how seriously Attorney General Sessions and the entire Department of Justice take these issues. We are committed to reducing violent crime and improving public safety.”
CTAS awards cover nine purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; and tribal youth programs. CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs.
The grant announcements are part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
A listing of today’s announced CTAS awards is available at: www.justice.gov/tribal/page/file/1095161/download.
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Member of the Violent “Murdaland Mafia Piru” Bloods Gang Pleads Guilty to Racketeering and Drug ConspiraciesRead the Press Release
Baltimore, Maryland - Dontray Johnson, a/k/a “Gambino,” “Bino,” and “Tray,” age 33, of Baltimore, Maryland pleaded guilty today to racketeering and drug conspiracies related to their participation in the gang activities of the Murdaland Mafia Piru (MMP), a subset of the Bloods gang. As part of his gang activities, Johnson admitted committing two murders, and to conspiracy to distribute controlled substances.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Interim Commissioner Gary Tuggle of the Baltimore Police Department; Chief Terrence B. Sheridan of the Baltimore County Police Department; Baltimore City State’s Attorney Marilyn J. Mosby; and Baltimore County State’s Attorney Scott Shellenberger.
“Federal authorities worked with the Baltimore City and Baltimore County Police Departments and State’s Attorney’s Offices to dismantle a criminal organization that dealt drugs and despair in Northwest Baltimore and Baltimore County,” said U.S. Attorney Robert K. Hur. “We are committed to using this sort of coordinated effort to bring to justice the violent gang members that terrorize our communities.”
“The Murdaland Mafia Piru and Dontray Johnson showed no concern for the Baltimore communities they flooded with murder, violence, and drugs. They irreparably damaged the families of their victims and the neighborhoods in which they operated,” said ATF Special Agent in Charge Cekada. “Today’s plea shows the importance of investigating and prosecuting these violent groups who willfully destroy communities.”
According to Johnson’s plea agreement and court documents, MMP, also known as the “Mob” or “Mobsters,” is a violent subset of the Bloods gang that operates in Maryland and elsewhere. MMP was modeled after the Italian Mafia, and was organized hierarchically, with “the Don,” at the top and various “Bosses,” “Underbosses,” “Capos,” “Lieutenants,” and “Mobsters” underneath. For many years, MMP has controlled the drug trade in large swaths of Northwest Baltimore City and neighboring Baltimore County, including Forest Park, Windsor Mill, Gwynn Oak, Howard Park, Woodlawn, and Walbrook Junction. The gang’s drug shop in the 5200 block of Windsor Mill Road was particularly lucrative due to its close proximity to Interstate 70, and it frequently attracted drug customers driving from Western Maryland and neighboring states. MMP’s members enriched themselves through drug trafficking and other criminal activities, and using violence and threats of violence to intimidate or retaliate against witnesses, protect the gang’s territories, enforce debts, and eliminate rivals.
Johnson admits that he was a member of MMP and participated in the gang’s affairs through a pattern of racketeering activities, including murder, extortion, robbery, witness tampering and retaliation, money laundering, and drug distribution.
Specifically, Johnson admits that on November 22, 2012, he murdered MMP member Antoine Ellis, a/k/a Poopy, in the 200 block of North Forest Park Avenue, because he had shown disloyalty to MMP. Earlier that day, Johnson had posted a comment to his Facebook account saying “198 n risen,” a reference to that year’s murder tally in Baltimore City. On September 29, 2015, Johnson murdered MMP member Brian Johnson, a/k/a Nutty B, because he refused to pay gang dues that Johnson was collecting for an MMP member.
As detailed in his plea agreement, on November 1, 2013, Johnson was featured in two rap videos that were posted to a social media website. The first video, “Boy You Lying,” was posted to enhance the gang’s status, intimidate rivals, and discourage anyone from selling drugs in MMP territory without paying its members. The second video, “Str8 Mobbin,” was posted to assert the gang’s dominance over its drug territories. It features Johnson with other MMP members, as well as footage of various MMP drug locations. Johnson brandishes a firearm in the video.
On July 31, 2015, law enforcement executed a search warrant at Johnson’s residence in Owings Mills and recovered 28 grams of heroin, 70 rounds of .22-caliber ammunition, a bulletproof vest, $1,480 in cash, and an “owe sheet” with a tally of drug debts owed by MMP members and associates.
Finally, Johnson admits that he conspired with other MMP members to distribute at least one kilogram of heroin and 280 grams of crack cocaine, and that he knew that during the conspiracy between one and three kilograms of heroin and between 280 and 840 grams of crack cocaine would be distributed.
In addition to Johnson, fourteen of twenty-six defendants have pleaded guilty in the case. Trial is tentatively scheduled for November 5, 2018 through February 1, 2019.
Johnson and the government have agreed that if the Court accepts the plea agreement, Johnson will be sentenced to 30 years in prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for Johnson on November 16, 2018 at 10:30 a.m.
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.
United States Attorney Robert K. Hur praised the ATF, the Baltimore City and Baltimore County Police Departments, and the Baltimore City and Baltimore County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Hur thanked Assistant United States Attorneys Christina Hoffman and Lauren E. Perry, who are prosecuting the case.
McKeesport Man Illegally Possessed Fentanyl and a PistolRead the Press Release
PITTSBURGH, PA – A resident of McKeesport, Pennsylvania, pleaded guilty in federal court to charges of possession with the intent to distribute fentanyl and possession of a firearm in furtherance of a drug trafficking crime, United States Attorney Scott W. Brady announced today.
Marcaius Butler, Jr., age 21, of McKeesport, Pennsylvania, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on or about March 21, 2017, Butler possessed with the intent to distribute fentanyl, and also possessed a Ruger pistol in furtherance of that crime.
Judge Cercone scheduled sentencing for February 1, 2019 at 1 p.m. The law provides for a total sentence of not less than five years of imprisonment and up to life in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Butler’s bond.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Allegheny County Police Department conducted the investigation that led to the prosecution of Butler.
Massachusetts Man Admits Paying Minor to Engage in Sexual Activity over SkypeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that WILLIAM GAUVIN, 43, of Andover, Massachusetts, waived his right to be indicted and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of receipt of child pornography.
According to court documents and statements made in court, between approximately October 2016 and March 2017, GAUVIN, using the name “Will Wiggins,” solicited a 17-year-old boy in Connecticut to engage in sexually explicit conduct over Skype. In exchange for the minor victim transmitting visual depictions of sexually explicit conduct to GAUVIN, GAUVIN paid the minor victim more than $3,000 using PayPal. GAUVIN also asked the minor victim to persuade his brother, who was 15, to engage in sexually explicit conduct in exchange for money.
GAUVIN resided in Worcester, Massachusetts, at the time of the criminal conduct.
Judge Shea scheduled sentencing for December 20, 2018, at which time GAUVIN faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
GAUVIN was arrested on a federal criminal complaint on November 1, 2017. He is released on a $100,000 bond pending sentencing.
This matter has been investigated by Homeland Security Investigations and the Connecticut State Police, with the assistance of the Worcester Police Department. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Louisville Man Sentenced for Wire Fraud, Identity TheftRead the Press Release
LOUISVILLE, Ky. - United States District Court Senior Judge Charles R. Simpson III has sentenced Louisville, Kentucky, man, Dennis A. L. Booker to 65 months in federal prison today, followed by 3 years of supervised release for six counts of wire fraud and one count of aggravated identity theft, announced United States Attorney Russell M. Coleman. The Court also ordered Booker to pay restitution of $112,000 to the victim of his scheme. There is no parole in the federal system.
The Court sentenced Booker, age 40, for his participation in a fraudulent scheme between October 2015 and June 2017. According to a plea agreement filed in the case, Booker told J.M., the victim, he needed cash to close a real estate transaction, and promised to repay J.M. when the transaction closed. J.M. loaned Booker $43,000, which was never repaid. J.M. demanded repayment, and Booker promised to wire the money, but told J.M. he needed his credit card number to pay fees associated with the transfer of payment. Instead of repaying the victim, Booker used the credit card number to obtain cash advances at Churchill Downs and to pay for personal expenses, resulting in a total loss of approximately $140,000.
Booker was serving supervised release during the time of the fraud for a previous conviction in federal court.
Assistant United States Attorney David Weiser prosecuted the case. The United States Secret Service conducted the investigation.
Lockport Man Pleads Guilty to Selling Fentanyl That Resulted in DeathRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Pablo Lugo III, 27, of Lockport, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to possession with intent to distribute, and distribution, of fentanyl. The charge carries a maximum penalty of 20 years in prison and $1,000,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that on March 29, 2015, Lockport Police Officers responded to 152 Caledonia Street and found an individual, K.R., deceased. Officers recovered four reddish paper wrappers in the bathroom, one of which was tested at the Niagara County Sheriff’s Office Forensic Laboratory and determined to contain fentanyl. An autopsy determined that K.R. died of acute fentanyl intoxication.
Text messages recovered from K.R.’s cellular phone revealed that on March 28, 2015, K.R. communicated with Lugo between 12:22 p.m. and 12:51 p.m. K.R. died shortly after the text message exchange. The defendant admits that K.R.’s death resulted from the drugs he gave to K.R.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Niagara County Drug Enforcement Task Force, under the direction of Sheriff James Voutour; and the Lockport Police Department, under the direction of Acting Chief Steven Preisch.
Sentencing is scheduled for December 20, 2018, at 3:00 p.m. before Judge Wolford.
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Lawrence Man Sentenced for Interstate Opioid Trafficking ConspiracyRead the Press Release
BOSTON – A Lawrence man was sentenced in federal court in Boston yesterday for his role in an opioid trafficking conspiracy involving the distribution of fentanyl, heroin, and oxycodone across Massachusetts and Florida.
Johnny Urena, 30, was sentenced by U.S. District Court Judge Denise J. Casper to five years in prison and four years of supervised release. In April 2018, Urena pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl, one count of conspiracy to distribute and to possess with intent to distribute oxycodone, and one count of conspiracy to launder monetary instruments.
Urena was arrested along with several others in March 2017 for their roles in a widespread conspiracy involving opioid trafficking and money laundering offenses in Massachusetts and Florida. Their arrests were the result of a three-year federal investigation into opioid-trafficking in New England.
From at least 2013, Urena conspired with co-defendants to sell quantities of heroin and/or fentanyl in Massachusetts, and to receive, transport, and distribute large quantities of oxycodone pills shipped from Florida to Massachusetts. Urena then deposited the cash proceeds of drug sales into various funnel bank accounts in order to conceal the nature and ownership of the funds.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Field Division; John Gibbons, U.S. Marshal for the District of Massachusetts; and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Biddeford (Maine), Framingham, Haverhill, Lawrence, Manchester (N.H.), Methuen, Millis, Natick, Stoughton, and Waltham Police Departments. Assistant U.S. Attorneys Nadine Pellegrini and Craig Estes of Lelling’s Office prosecuted the case.
Lake Worth Resident Sentenced to 20 Years in Prison for Distributing Heroin, Carfentanyl and CocaineRead the Press Release
Roberto Paul Mendoza, 28, of Palm Beach County, was sentenced today by U.S. District Court Judge Donald M. Middlebrooks to 240 months in prison, to be followed by four years of supervised release, after previously pleading guilty to three counts of distribution of heroin, carfentanyl, and cocaine, one count of possession with intent to distribute heroin, and one count of knowingly possessing a firearm in furtherance of drug trafficking.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA) and Ric Bradshaw, Sheriff of the Palm Beach County Sheriff’s Office (PBSO) made the announcement.
According to the court record, Mendoza distributed heroin mixed with carfentanyl and cocaine to an undercover police officer on three occasions. Thereafter, during the execution of a search warrant of Mendoza’s residence and vehicle distribution quantities of heroin and a firearm were discovered and seized by law enforcement. Further, court records also showed that Mendoza was responsible for distributing carfentanyl, which ultimately caused the death of a 40 year-old man.
Mrs. Fajardo Orshan commended the investigative efforts of the DEA and PBSO in this matter. This case was prosecuted by Assistant U.S. Attorney Jennifer C. Nucci.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Jury Convicts Joplin Woman of Illegal Firearm, Faces at Least 15 Years in PrisonRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., woman was convicted by a federal trial jury today of illegally possessing a firearm.
Tracy Arlene Smith, 47, was found guilty of one count of being a felon and an unlawful user of cocaine and methamphetamine in possession of a firearm and ammunition.
According to evidence introduced during the trial, law enforcement officers executed a search warrant at Smith’s residence located in Joplin, on June 22, 2017. During the execution of the search warrant, members of the Ozark Drug Enforcement Team seized Smith’s purse, which contained a CDM Prod. Inc., .22-caliber pistol, loaded with six rounds of .22 caliber ammunition. Officers also seized drug paraphernalia.
Under federal law, it is illegal for anyone who is an unlawful user of controlled substances, or who has been convicted of a felony, to be in possession of any firearm or ammunition. Smith, who was on parole at the time she committed the offense, has five prior felony convictions for forgery, four prior felony convictions for possession of a controlled substance, and prior felony convictions for sale of a controlled substance (on three separate occasions) and assault.
Under federal statutes, Smith is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for approximately 30 minutes before returning the guilty verdict to U.S. District Judge M. Douglas Harpool, ending a trial that began Monday, Sept. 24, 2018.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert and Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the Ozark Drug Enforcement Team and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Juniata County Business Man Charged with $1 Million Loan FraudRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Brian Douglas Sheaffer, age 56, of Port Royal, Pennsylvania, was indicted on September 19, 2018, by a federal grand jury with ten counts of mail and wire fraud.
According to United States Attorney David J. Freed, the indictment alleges that between January 2010 and May 2016, Sheaffer, a former President, sole owner, and manager of Perry Petroleum Equipment Ltd., Inc. (PPE), engaged in a scheme to defraud business acquaintances, family, and friends by, among other things, falsely representing to them that the money they agreed to loan to Sheaffer and PPE would be used to fund the purchase of fuel tanks and other equipment PPE used in its operations. The indictment alleges that Sheaffer used the loan proceeds to pay for personal expenses such as gambling and business expenses such as PPE payroll, insurance, federal taxes, and state taxes. It is also alleged that Sheaffer solicited and received more than $1,000,000.00 in loans from more than twenty lenders.
The case was investigated by the Federal Bureau of Investigation. Assistant Joseph J. Terz is prosecuting the case.
Indictments 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.
The maximum penalty under federal law for these offenses is 40 years of imprisonment, a term of supervised release following imprisonment, and a $1,000,000 fine. 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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Jackson Woman Sentenced for Illegally Possessing a FirearmRead the Press Release
Jackson, Miss.—Heather Elizabeth Wright-Beard, 40, of Jackson, was sentenced today by United States Chief District Judge Daniel P. Jordan III, to 70-months in federal prison, followed by three years of supervised release, for possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst, U.S. Marshal George White, and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On December 2, 2016, while attempting to execute an arrest warrant at the residence of Heather Elizabeth Wright-Beard, deputies with the U.S. Marshal Service Gulf Coast Regional Fugitive Task Force observed a round of shotgun ammunition in plain view on top of a gun safe in a closet adjacent to the kitchen. Since Wright-Beard and her husband are convicted felons and prohibited from possessing firearms or ammunition, deputies obtained and executed a search and seizure warrant, recovering a Winchester .22 caliber rifle, a Taurus .22 caliber revolver, and 1,677 rounds of assorted ammunition scattered throughout the residence and garage.
Wright-Beard was convicted previously in the Circuit Court of Rankin County for the felony offense of possession of methamphetamine and possession of cocaine. She was convicted a second time in the Circuit Court of Rankin County for the felony offense of possession of methamphetamine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Mississippi Bureau of Narcotics, and the U.S. Marshal Service Gulf Coast Regional Fugitive Task Force and prosecuted by Assistant United States Attorney Keesha D. Middleton as part of the U.S. Department of Justice’s Project Safe Neighborhood.
Justice Department Will Award up to $246 Million in Grants to Improve Public Safety in American Indian and Alaska Native CommunitiesRead the Press Release
SIOUX FALLS – United States Attorney Ron Parsons joined the Department of Justice in announcing more than $113 million in grant awards to improve public safety, serve victims of crime, combat violence against women, and support youth programs in American Indian and Alaska Native communities. Included in that amount for the District of South Dakota was $414,626 for the Rosebud Sioux Tribe, and $339,925 for the Sisseton Wahpeton Tribe.
“I am grateful for this substantial investment in local public safety by the Department of Justice,” said U.S. Attorney Parsons. “Through our partnerships with Tribal governments, we are committed not only to prosecuting violent crime and domestic abuse offenders in Native American communities, but to aiding victims with the resources needed to recover, persist, and overcome.”
Nationwide, grants were awarded to 133 American Indian tribes, Alaska Native villages, and other tribal designees through the Coordinated Tribal Assistance Solicitation, a streamlined application for tribal-specific grant programs. Of the $113 million, just over $53 million comes from the Office of Justice Programs, more than $35 million from the Office on Violence Against Women, and more than $24.7 million from the Office of Community Oriented Policing Services.
In addition, the Department is in the process of allocating up to $133 million in a first-ever set aside program to serve victims of crime in American Indian and Alaska Native communities. The awards are intended to help tribes develop, expand, and improve services to victims of crime by providing funding, programming and technical assistance. Recipients will be announced in the near future.
“With these awards, we are doubling the amount of grant funding devoted to public safety programs and serving victims of crime in Native American communities,” said Principal Deputy Associate Attorney General Jesse Panuccio, who made the announcement during his remarks at the 26th Annual Four Corners Indian Country Conference in Santa Fe, New Mexico. “There is an unacceptable level of violent crime and domestic abuse in American Indian and Alaska Native communities. This increase in resources, together with our aggressive investigation and prosecution of crimes, shows how seriously Attorney General Sessions and the entire Department of Justice take these issues. We are committed to reducing violent crime and improving public safety.”
The Four Corners Conference is facilitated annually by U.S. Attorneys from Arizona, Colorado, New Mexico and Utah to provide a forum for discussion of justice-related topics with a large number of populous and diverse tribal nations located in the region.
CTAS awards cover nine purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; and tribal youth programs. CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs.
This announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
A listing of the CTAS awards is available at www.justice.gov/tribal/page/file/1095161/download.