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Wednesday 19 September 2018
Justice Department Awards Ute Mountain Ute Tribe over $1,000,000 to Improve Public SafetyRead the Press Release
DENVER – U.S. Attorney Bob Troyer joined the Department of Justice today in announcing grants to improve public safety in Indian Country. In Colorado, the Ute Mountain Ute tribe received $1,646,931 as a part of this program. Of that amount, $898,918 is for Public Safety and Community Policing (COPS). Also, $748,013 was awarded to the tribe for Justice Systems and Alcohol and Substance Abuse (BJA). The announcement was made at the annual Four Corners Indian Country Conference, which is being held this year in Santa Fe, New Mexico.
“Productivity and prosperity can only grow where crime is reduced,” said U.S. Attorney Bob Troyer. “The U.S. Attorney’s Office in Colorado continues to do all it can to give prosperity on our tribal lands a fighting chance.”
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.
Today’s 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 today’s announced CTAS awards is available at: www.justice.gov/tribal/page/file/1095161/download.
Jury Convicts Albany Man of Intending to Distribute Heroin, Cocaine and Crack CocaineRead the Press Release
ALBANY, NEW YORK – A jury today voted to convict Dwayne G. Perkins, age 37, of Albany, of possessing and intending to distribute heroin, cocaine, and more than 28 grams of crack cocaine.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Evidence during the 3-day trial established that the FBI identified Perkins during the course of investigating another drug dealer, Tyrone D. Marshall. FBI and other law enforcement executed a search warrant on Perkins’s Albany apartment on April 4, 2017. An FBI Agent searched Perkins and found him to be hiding, in bags attached to his underwear, what turned out to be approximately 42 grams of crack cocaine, 36 grams of cocaine, and 7.5 grams of heroin mixed with fentanyl. Agents also seized, from the apartment, two digital scales and $1,746 in cash.
Perkins, who has four prior drug felony convictions, faces at least 10 years and up to life in prison, and a term of post-imprisonment supervised release of at least 8 years and up to life, when he is sentenced on January 21, 2019 by United States District Judge Mae A. D’Agostino. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Marshall, age 37, of Troy, New York, pled guilty on August 15, 2018 to conspiring to distribute cocaine and crack cocaine in Albany and Rensselaer Counties, and will be sentenced by Judge D’Agostino on December 10.
This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including the New York State Police, the New York Department of Corrections and Community Supervision, and the Albany Police Department. This case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Jury Convicts Albany County Sisters of Conspiracy to Commit Visa FraudRead the Press Release
ALBANY, NEW YORK – A jury voted today to convict Dalia Lita, age 55, of Latham, New York; Elina Rahman, age 45 of Watervliet, New York; and Lubna Rahman age 45, of Watervliet, of conspiracy to commit visa fraud by submitting false information to the United States government in order to obtain immigrant visas.
The announcement was made by the United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
Evidence presented during the 3-day trial established that in 2001, Lita filed, with United States Citizenship and Immigration Services, petitions for her sisters Elina and Lubna, knowing that those petitions contained false statements meant to conceal their true identities and prior, illegal residence in the United States. In addition, as part of the criminal conspiracy, Elina and Lubna Rahman filed applications for family-based immigrant visas in 2012, knowing that the applications also contained the same false statements. Based on the false information the sisters provided, Elina Rahman and Lubna Rahman were issued immigrant visas when they were otherwise ineligible to enter the United States.
Each of the sisters faces up to 5 years in prison, a maximum $250,000 fine, and a term of post-imprisonment supervised release of up to 3 years when they are sentenced on January 14, 2019 by Senior United States District Judge Thomas J. McAvoy. A defendant’s sentence is imposed by a judge based on the particular statute the defendant was charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by HSI and prosecuted by Special Assistant U.S. Attorney Jason W. White.
Joint Federal/State Investigation Seizes Heroin Valued at Approximately $95,000Read the Press Release
Since August 2018, members of the Vermont State Police Drug Task Force (VDTF), Homeland Security Investigations (HSI) and the Federal Bureau of Investigation (FBI) have been investigating the importation, sale and distribution of heroin and fentanyl in the greater Caledonia County area. The investigation identified both local distributors and out-of-state suppliers of heroin and fentanyl.
As part of the investigation, on September 6, 2018, members of the Vermont State Police Westminster Barracks stopped Richard Trudeau, 31, and Julie Hurst, 40, of St. Johnsbury, Vermont, on I-91 in Springfield, Vermont. A subsequent search of Trudeau and Hurst’s vehicle yielded approximately 4000 bags of heroin that later tested positive for the presence of fentanyl.
On September 13, 2018, members of the VDTF, HSI and FBI coordinated with various agencies in the Commonwealth of Massachusetts to arrest Luis A. Rodriguez, 22, of Mt. Holyoke, Massachusetts, a suspected source of supply for heroin and fentanyl in Caledonia County. Rodriguez was taken into custody in Northampton, Massachusetts and was found to be in possession of approximately 5000 bags of a substance that later tested positive for the presence of fentanyl. Subsequent investigation revealed that Rodriguez had an additional 4,880 bags of heroin/fentanyl at his residence in Holyoke.
As a result of this joint investigation, approximately 14,000 bags of suspected heroin/fentanyl were seized, with an estimated street value of approximately $95,000. The following Agencies were instrumental in this coordinated effort: Vermont State Police, Vermont Drug Task Force, Homeland Security Investigations, Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Holyoke Police Department, Northampton Police Department, Easthampton Police Department, Massachusetts State Police, Hampden County Sheriff’s Department, Hampshire County Sheriff’s Department, Hampshire County Narcotics Task Force, and the FBI Western Massachusetts Gang Task Force. U.S. Attorney Christina Nolan praised the collaborative investigation of state and federal law enforcement in Vermont and Massachusetts. “These seizures of the deadly drug fentanyl potentially saved thousands of Vermonters. At the same time, our law enforcement community deprived a dangerous drug trafficking organization of nearly $100,000 in proceeds that would have been earned on the backs of the suffering addicted. Combatting the fentanyl crisis will continue to be a top priority for the U.S. Attorney’s Office and we will work tirelessly with our partners at all levels of law enforcement and across state lines to bring justice to those who would profit hugely from the tragedy of addiction.”
“Effective coordination between federal, state, and local agencies is absolutely essential for us to identify and disrupt drug traffickers,” said James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation. “The FBI, together with our law enforcement partners, will continue to investigate and bring justice to individuals like those arrested in this case.”
Hurst and Trudeau appeared in federal court on September 7, 2018, before U.S. Magistrate Judge John M. Conroy. Rodriguez appeared in federal court on September 14 and September 18, 2018, before U.S Magistrate Judge John M. Conroy. All were detained pending further proceedings in this case. Assistant U.S. Attorney Andrew C. Gilman represents the United States in this matter. Lisa B. Shelkrot represents Hurst. Mark A. Kaplan represents Trudeau. Michael L. Desautels and David L. McColgin represents Rodriguez.
Jerseyville Man Sentenced to 6 Years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
Christopher Scott Fry, 48, of Jerseyville, Illinois was sentenced today to serve six years in federal prison for conspiracy to distribute methamphetamine, the United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced. Fry pled guilty to the charges in June and has been in federal custody since January 23.
Documents filed in the case establish that, from March to late September 2016, Fry supplied Robert W. Schrader with approximately one pound of methamphetamine every month. Schrader, who is also under federal indictment, would allegedly then sell the meth to others throughout the Madison and Jersey County area. Schrader’s case is still pending, and he is presumed innocent of the charges unless or until proven guilty beyond a reasonable doubt.
As part of his sentence, Fry was ordered to forfeit $15,000 in U.S. currency and serve a five-year term of supervised release following his imprisonment.
The investigation was conducted by the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI), the South Central Illinois Drug Task Force (SCIDTF), and the Jersey County Sheriff’s Department.
Indictment: Junction City Contractor Sold Meth to Undercover InvestigatorsRead the Press Release
TOPEKA, KAN. – A Junction City contractor was indicted Wednesday on charges of selling more than $7,000 worth of methamphetamine to undercover investigators, U.S. Attorney Stephen McAllister said.
Gerald W. Etherton, 59, Junction City, Kan., is charged with six counts of distributing methamphetamine. According to court records, in April 2018 the Kansas Bureau of Investigation and other law enforcement agencies began investigating Etherton, who owned Jerry’s Construction at 305 E. 8th in Junction City. Undercover agents made a series of buys from Etherton ranging in amount from an ounce of meth for $600 to a quarter of a pound for $2,000.
If convicted, Etherton faces a penalty of not less than 10 years in federal prison and a fine up to $10 million on five of the six counts, and up to 20 years and a fine up to $1 million on one of the counts. The KBI investigated with the assistance of the Geary County Sheriff’s Office, the Junction City Police Department and the Geary County Attorney’s Office. Special Assistant U.S. Attorney Skip Jacobs is prosecuting.
OTHER INDICTMENTS
Guillermo D. Andrade, 22, Oklahoma City, Okla., and Kiamichi F. Bond, 21, Norman, Okla., are charged with possession with intent to distribute 21 pounds of methamphetamine. In addition, Bond in charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred July 12, 2018, in Thomas County, Kan.
Upon conviction, the drug count carries a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $5 million. The firearm count carries a penalty of up to 10 years and a fine up to $250,000. The Kansas Highway Patrol and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Blake Nicol, 25, Salina, Kan., is charged with one count of possession with intent to distribute methamphetamine, one count of unlawful possession of a firearm following a felony conviction and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred July 3, 2018, in Saline County, Kan.
If convicted, Nicol faces up to 20 years in federal prison and a fine up to $1 million on the drug charge, up to 10 years and a fine up to $250,000 on the charge of unlawful possession of a firearm by a felon, and not less than five years and a fine up to $250,000 on the charge of possessing a firearm in furtherance of drug trafficking. The Salina Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney Skip Jacobs is prosecuting.
Taylor M. DeGarmo, 38, Wichita, Kan., Bret M. Davis, 36, Derby, Kan., and Vanessa M. Hull, 34, Winfield, Kan., are charged with drug trafficking. DeGarmo is charged with one count of distributing methamphetamine (count two), one count of possession with intent to distribute meth (count three) and one count of possession of a firearm in furtherance of drug trafficking (count four). Davis and Hull are charged with one count of possession with intent to distribute meth (count one). The crimes are alleged to have occurred Sept. 5 and 6, 2018, in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties:
Counts one and two: Not less than five years, not more than 40 years, and a fine up to $5 million.
Count three: Not less than 10 years and a fine up to $10 million.
Count four: Not less than five years and a fine up to $250,000.
The Drug Enforcement Administration investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Nathan J. Moss, 32, Columbus, Kan., is charged with one count of stealing a firearm from a licensed dealer, two counts of unlawful possession of a firearm following a felony conviction and one count of unlawful possession of a silencer. The crimes are alleged to have occurred in August 2018 in Crawford and Cherokee counties.
Upon conviction, the crimes carry the following penalties:
Theft from a licensed firearms dealer: Up to 10 years in federal prison and a fine up to $250,000.
Unlawful possession of a firearm by a convicted felon: Up to 10 years and a fine up to $250,000.
Unlawful possession of a silencer: Up to 10 years and a fine up to $250,000.
The Cherokee County Sheriff’s Office, the Pittsburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indian Tribe in Kansas to Receive $805,000 in Public Safety Grants from DOJRead the Press Release
KANSAS CITY, KAN. – The Sac and Fox Nation of Missouri in Kansas and Nebraska will receive $805,563 in public safety grants from the Department of Justice, U.S. Attorney Stephen McAllister said today.
The tribe, headquartered in Reserve, Kan., will receive the funding from the Justice Department’s Office of Violence Against Women. The money is part of $113 million in grants the Justice Department announced this week to improve public safety, serve victims of crime, combat violence against women and support youth programs in American Indian and Alaska Native communities.“Our office is working with tribal governments to protect women in Indian Country from domestic violence, sexual assault and other crimes,” McAllister said.
Nationwide, 133 tribal governments and designees received grants.
Hobart Man Sentenced and Ordered to Pay over $300,000 in RestitutionRead the Press Release
HAMMOND – Kirk E. Stroh, 46 years old, of Hobart, Indiana, was sentenced by District Court Judge Joseph S. Van Bokkelen on his plea of guilty to one count of wire fraud, announced U.S. Attorney Thomas L. Kirsch II.
Stroh was sentenced to 5 months imprisonment followed by 7 months of supervised release. Stroh was ordered to pay $327,438.50 in restitution to the victim, and a $160,000 money judgment forfeiture.
According to court documents, between July 2012 and March 2015, Stroh helped co-defendant Lucy Owens embezzle over $300,000 from a local freight services company where Owens and Stroh’s wife were employed. At the time, Stroh was employed by a rival trucking company. Stroh used a stolen fuel card, provided by Owens, to obtain over $300,000 in cash advances at fuel stations, which he split evenly with Owens.
Owens, who was convicted by a jury of seven counts of wire fraud in May, is scheduled to be sentenced on November 8, 2018.
This case was investigated by the Hammond Police Department and prosecuted by Assistant United States Attorneys Abizer Zanzi and Nathaniel Whalen.
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Hartford Heroin Trafficker Sentenced to More Than 6 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALEX ORTIZ-GOMEZ, 35, a citizen of Colombia last residing in Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 78 months of imprisonment for trafficking heroin.
According to court documents and statements made in court, the Drug Enforcement Administration Hartford Task Force identified ORTIZ-GOMEZ as the head of a drug trafficking organization that was distributing large quantities of heroin in the Hartford area. The investigation, which included court-authorized wiretaps, revealed that members of the organization used an apartment on Wayland Street in Hartford to store heroin, cocaine, drug packaging materials and cash, and to process and package narcotics for street sale.
On May 13, 2015, ORTIZ-GOMEZ traveled from Hartford to New York City where law enforcement officers conducted a motor vehicle stop of the car and seized approximately $125,000 in cash.
ORTIZ-GOMEZ and several co-conspirators were arrested on June 4, 2015. On that date, a search of the Wayland Street apartment revealed a bag of cocaine, approximately 400 bags of heroin, a heroin stamp, six boxes containing hundreds of stamped bags for packaging heroin, and other items used to process and package heroin for street sale. A related search of co-conspirator’s residence in East Hartford revealed 500 grams of heroin, thousands of bags used to package heroin, a heroin brand stamp and other items.
ORTIZ-GOMEZ has been detained since his arrest. On February 5, 2018, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.
ORTIZ-GOMEZ, who came to the U.S. from Colombia as a child, faces immigration proceedings when he completes his prison term.
Six other individuals were charged and convicted as a result of this investigation.
This matter was investigated by the Drug Enforcement Administration’s Hartford Task Force with the assistance of the Connecticut State Police. The DEA Task Force includes participants from the Bristol, East Hartford, Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Willimantic and Windsor Locks Police Departments, and the Food and Drug Administration. The case was prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Guatemalan Man Sentenced for Being in the United States IllegallyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Victor Yobany Archila-Rojas, 28, of Guatemala, was sentenced today in U.S. District Court to time served (53 days) for entering the United States after having been removed and deported. The defendant pleaded guilty on August 14, 2018.
Court records reveal that on July 29, 2018, the defendant entered the United States from Canada in Sandy Bay Township, Maine at a location not designated for entry. U.S. Border Patrol agents located the defendant shortly after he entered. He is a citizen of Guatemala and was removed from the United States in 2013. He is subject to deportation.
The investigation was conducted by the U.S. Border Patrol.
Gaffney Man Sentenced on Federal Firearm ChargeRead the Press Release
Greenville, South Carolina ---- United States Attorney Sherri A. Lydon stated that Steven Ray Garner, age 44, of Gaffney, was sentenced in federal court to 60 months imprisonment with 3 years of supervised release to follow. Garner previously pled guilty to felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). United States District Judge Bruce H. Hendricks imposed the sentence.
Evidence presented in court established that on January 22, 2017 a deputy with the Cherokee County Sheriff’s Office was on routine patrol and noticed Garner and another individual sitting in a vehicle parked in front of a vacant house. The deputy recognized the person in the passenger seat as someone with outstanding warrants and took that individual into custody.
The deputy then patted down Garner to check him for weapons. During that search, the deputy located a loaded Colt .357 magnum in Garner’s waistband. A check of NCIC revealed that the gun had been reported stolen out of Spartanburg County. Garner was also found to be in possession of a small amount of methamphetamine.
Further NCIC check revealed that Garner had been previously convicted of second degree burglary (violent) in 2002 and manufacturing methamphetamine in 2012 and was thus prohibited under federal law from possessing firearms and ammunition.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Cherokee County Sheriff’s Office and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. 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. Assistant United States Attorney Sloan Ellis of the Greenville office prosecuted the case.
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Former Youth Football Coach Charged with Sexual Exploitation of ChildrenRead the Press Release
BOSTON – A Norwell man was charged today in federal court in Boston with sexual exploitation of children. The defendant previously coached Norwell youth football.
Derek Sheehan, 48, was charged with three counts of sexual exploitation of children. He is currently in state custody on related charges pending in the Hingham District Court, which include three counts of aggravated rape of a child. Sheehan will appear in federal court at a later date. According to court documents, Sheehan is also charged - in connection with another victim - in Hingham District Court with one count of assault and battery on a child under 14.
It is alleged that on Aug. 17, 2018, law enforcement executed a search warrant at Sheehan’s home and seized several electronic devices that revealed evidence of child pornography. A forensic review of one of those devices has so far resulted in the discovery of hours of video footage of Sheehan, on multiple dates, sexually abusing a child who appeared to be asleep at Sheehan’s home. At the time of the assaults, the child was 11-and-12-years-old.
Given the number of devices seized, the high storage capacity of many of the devices, and the fact that some devices appear to be encrypted, the investigation and forensic review is ongoing.
Members of the public who have questions, concerns, or information about this case should contact the U.S. Attorney’s Office at 617-748-3274. Anyone with questions about how to talk to their child about sexual abuse should visit the Plymouth County Child Advocacy Center website at https://cac.plymouthda.com/.
The charge of sexual exploitation of children provides for a mandatory minimum sentence of 15 years and up to 30 years in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $250,000. 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Plymouth County District Attorney Timothy Cruz; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Norwell Police Chief Theodore Ross made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood coordinator and a member of Lelling’s Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Ocean County Chiropractor Admits Income Tax Evasion and Failure to File Report of Russian Bank AccountRead the Press Release
TRENTON, N.J. – A former chiropractor with offices in Lakewood, New Jersey, today admitted evading income taxes totaling more than half a million dollars from 2012 through 2015 and failing to report a Russian bank account, to which he wired more than $1.5 million, U.S. Attorney Craig Carpenito announced.
Carlo Amato, 57, of Beachwood, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to one count of tax evasion and one count of failure to file a report of foreign financial account (FBAR) while violating another law of the United States and as part of a pattern of illegal activity involving more than $100,000 in a 12-month period.
According to documents filed in this case and statements made in court:
From 2012 through 2015, Amato operated a chiropractic office in Lakewood through two entities: Chiropractic Care Consultants Inc. and Accident Recovery Physical Therapy. He deposited, or caused to be deposited, checks for chiropractic services into accounts held in the names of his minor children. Amato knew that these checks were taxable as income, but he did not disclose the payments to his accountant, nor did he report them on his tax returns. Amato also failed to report as taxable income certain additional funds that were deposited into Chiropractic Care’s and Accident Recovery’s business bank accounts. For example, Amato reported $0 in taxable income and $0 in tax due on his 2014 income tax return. His taxable income for 2014 was, in fact, $561,258, and Amato admitted that the tax due and owing to the IRS for 2014 was $197,036. Amato admitted that he also evaded more than $300,000 in taxes for the tax years 2012, 2013, and 2015.
Amato, a U.S. citizen, admitted that in 2014, he had an account at UniCredit Bank in Russia. He admitted that he wired more than $1.5 million to Russian bank accounts, including the UniCredit Bank account, and that he knew that he was obligated to report any foreign bank account with an aggregate value of more than $10,000. Amato admitted that he nonetheless failed to file a report of foreign account, commonly known as an FBAR, for the year 2014. Amato also admitted that the funds he failed to report were the product of a fraudulent scheme in which Amato overbilled at least six insurance companies by more than $1 million by billing for services that were never rendered. Amato previously pleaded guilty in Ocean County Superior Court to first degree financial facilitation of criminal activity for money laundering of funds from the overbilling scheme.
The tax evasion charge to which Amato pleaded guilty carries a maximum potential penalty of five years in prison and a fine of $250,000 or twice the gain to any person or loss to any victims of the offense. The failure to file a report of foreign account charge to which Amato pleaded guilty carries a maximum potential penalty of 10 years in prison and a fine of $500,000 or twice the gain to any person or loss to any victims of the offense. Sentencing is scheduled for Jan. 9, 2019.
Under the terms of his plea agreement, Amato will file amended tax returns and make full restitution for the years 2012 through 2015 and file accurate FBARs for the years 2012 through 2017.
U.S. Attorney Carpenito credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge John Tafur, with the investigation leading to today’s guilty plea. U.S. Attorney Carpenito thanked the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph D. Coronato, and the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the Criminal Division in Trenton.
Former NYPD Anti-Terrorism Officer Sentenced to Four Years in Prison for Narcotics, Fraud, Identity Theft, and Counterfeit Currency OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that REYNALDO LOPEZ, a former New York City Police Department (“NYPD”) officer, was sentenced to four years in prison in connection with narcotics, credit card fraud, identity theft, and counterfeiting offenses. LOPEZ previously pled guilty to the charges on February 16, 2018, in Manhattan federal court before United States District Judge Edgardo Ramos, who also imposed LOPEZ’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Reynaldo Lopez betrayed and abused the trust placed in him by the NYPD and the people of New York. He swore to protect the public from criminal activity, only to turn around and participate in significant crimes of his own, including not only credit card and identity fraud, but also agreeing to distribute multiple kilograms of heroin. His sentence today is a reminder that this Office and its law enforcement partners will continue to fight this kind of corruption, and that no one is above the law.”
In sentencing LOPEZ, Judge Ramos said: “[LOPEZ] is an individual that we as a society trusted to enforce our laws, trusted him enough to give him a weapon, trusted him enough to go out into the streets and protect our communities, our children, our businesses, etc. He is an individual with excellent resources who absolutely did not have to do what he did, absolutely did not have to engage in these crimes.”
According to the allegations in the Information to which LOPEZ pled guilty, a criminal complaint filed against LOPEZ, and other filings made in the case, and statements made during the plea and other proceedings in the case:
During the time periods charged, LOPEZ was an NYPD police officer assigned to the Anti-Terrorism Unit of the Transit Bureau.
On November 29, 2017, LOPEZ attempted to traffic approximately three kilograms of heroin from a location in New Jersey to the Bronx, New York. LOPEZ agreed to transport and protect what he believed were three kilograms of heroin to a drug dealer located in the Bronx under LOPEZ’s protection as an NYPD police officer. During the attempted transaction, LOPEZ described having previously engaged in narcotics trafficking and stated that “with me it’s guaranteed, they know for sure, they just send me out, do your thing, get an address, meet the person, do your thing, and I’m gone.” LOPEZ was arrested when he attempted to make the delivery.
In addition, from May 2017 through November 2017, LOPEZ engaged in a scheme to create and utilize fraudulent credit cards, including by using stolen identity information. He was part of a counterfeit credit card operation whose participants used stolen or otherwise illicitly obtained personal identifying information to create fraudulent credit cards, and then used those cards to purchase merchandise for themselves. As part of his role in these crimes, LOPEZ also possessed and used a device that applies electronic data to blank physical credit cards.
Also from May 2017 through November 2017, LOPEZ possessed and used counterfeit United States currency. In multiple recorded conversations, LOPEZ discussed his possession of counterfeit money and provided a sample to an undercover NYPD officer, stating that he previously had successfully used the counterfeit currency.
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In addition to the prison term, LOPEZ, 27, of Brooklyn, New York, was sentenced to three years of supervised release.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation and the NYPD Internal Affairs Bureau.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorney Alex Rossmiller is in charge of the prosecution.
Former Jersey City Police Officer Sentenced to 23 Months in Prison for Conspiracy to Commit Fraud and Accept Corrupt PaymentsRead the Press Release
NEWARK, N.J. – A former Jersey City police officer was sentenced today to 23 months in prison for accepting approximately $55,000 in corrupt payments in exchange for helping employers operate at worksites without the required presence of an off-duty police officer and for helping a police officer obtain compensation for off-duty work he did not perform, U.S. Attorney Craig Carpenito announced.
Anthony Iannicco, 49, of Jersey City, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit fraud and accept corrupt payments. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Iannicco was a police officer with the Jersey City Police Department (JCPD) from 1995 to 2016. From 2008 through 2016, his duties included serving as the “assistant pick coordinator” for Jersey City’s West District. As the assistant pick coordinator, Iannicco assigned police officers to off-duty details.
Under Jersey City’s municipal code, off-duty police officers were not permitted to receive cash payments directly from off-duty employers. Rather, the employers were supposed to pay Jersey City, which would then pay the off-duty police officers, minus certain fees, taxes and deductions, including an administrative fee payable to Jersey City per hour that the off-duty police officers worked.
Iannicco conspired with numerous employers to cut Jersey City out of the process of hiring and compensating off-duty police officers. Generally, Iannicco permitted these employers to operate at worksites without the presence of a police officer when such a presence was required. In exchange, Iannicco accepted cash payments directly from these employers in violation of Jersey City rules and regulations.
Altogether, from 2011 to 2016, Iannicco collected payments of approximately $55,000 directly from off-duty employers and a conspirator.
In addition to the prison term, Judge Vazquez sentenced Iannicco to three years of supervised release and ordered forfeiture of $55,000 and restitution of $219,196.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing.
JCPD is cooperating with the investigation.
The government is represented by Assistant U.S. Attorney Vikas Khanna, Deputy Chief of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: John A. Azzarello Esq., Morristown, New Jersey
Former High School Counselor Indicted for Fraud SchemeRead the Press Release
Greenbrier West High School Counselor Changed Daughter’s Grades to Obtain Financial Scholarships
BECKLEY, W.Va. – United States Attorney Mike Stuart announced that yesterday a federal grand jury indicted Mellissa Krystynak, of Stuart, Florida, on six counts of mail fraud relating to a scheme to defraud Greenbrier West High School and several scholarship organizations.
Krystynak, 49, was a school counselor at Greenbrier West from 2011 until 2017. While she was employed there, two of her children attended the school. The indictment alleges that Krystynak used her administrator access to the school’s grading system to inflate over 35 of her daughters’ grades. The indictment goes on to allege that, with Krystynak’s assistance, one of her daughters applied for and was awarded over $10,000 in financial scholarships during her senior year. These scholarships were based on applications containing the fraudulent report cards and transcripts. The indictment charges Krystynak with causing the scholarship checks to be mailed to her daughter’s college.
Krystynak’s initial appearance is scheduled on October 3, 2018 in front of United States Magistrate Judge Omar J. Aboulhosn in Beckley. Krystynak faces up to 20 years in prison for each count.
The investigation is being conducted by the Office of Inspector General for the U.S. Department of Education. Assistant United States Attorney Gabriele Wohl is handling the prosecution.
The indictment can be found
here .Please note: An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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###Former G.E.O. Guard Sentenced to 57 Months in Federal Prison for Agreeing to Smuggle Crystal Methamphetamine into FacilityRead the Press Release
In San Antonio today, a federal judge sentenced a former employee of the Central Texas Detention Facility – GEO (GEO) to 57 months imprisonment for agreeing to provide crystal methamphetamine to an inmate inside the federal detention facility announced U.S. Attorney John F. Bash, Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division and U.S. Marshal Susan Pamerleau.
In addition to the prison term, U.S. District Judge Xavier Rodriguez ordered that 28–year–old Abigail Jolynn Abrego be placed under supervised release for a period of three years after completing her prison term. Judge Rodriguez also sentenced Abrego’s co-defendant and boyfriend, 55–year–old Leonard Belmares, to 46 months in federal prison followed by three years of supervised release. Judge Rodriguez ordered Abrego and Belmares to surrender to federal authorities on or before November 30, 2018, to begin serving their respective prison terms.
Earlier this year, both defendants pleaded guilty to one count of attempting to providing contraband in prison. By pleading guilty, they admitted that in November 2017, they met with an undercover agent and agreed to smuggle methamphetamine into the facility and give it to an inmate in exchange for $1,500. They also admitted to working together on at least three previous occasions to smuggle drugs and/or contraband into the facility in exchange for money.
“I commend the U.S. Attorney’s Office, the FBI and our U.S. Marshals Service personnel on their collaborative success in this investigation,” said U.S. Marshal Susan Pamerleau. “Their hard work and diligent efforts resulted in justice being served today.”
The Federal Bureau Investigation and the U.S. Marshals Service investigated this case. Assistant U.S. Attorney Sarah Wannarka prosecuted this case on behalf of the Government.
Former Director of Child Food Program Pleads Guilty to Defrauding USDA of More Than $500,000, Filing False Tax ReturnRead the Press Release
ROCK ISLAND, Ill. – Nora L. Steele, the former operations director of a Rock Island, Ill., program that provided summer and after-school meals to at-risk children today waived indictment and plead guilty to defrauding the government of approximately $515,617, and filing a false tax return. Steele, 66, of Silvis, Ill., plead guilty to one count each of fraud and filing a false tax return in her appearance before U.S. Magistrate Judge Jonathan E. Hawley in Rock Island. Sentencing has been scheduled on Jan. 17, 2019, before Chief U.S. District Judge James E. Shadid in Peoria.
Steele served as the operations director for the Quad Cities Area Children’s Food Program (QCACFP) from its inception in February 2016 until she left the organization in June 2017. Prior to the creation of QCACFP, Steele had served in a similar capacity since 2004 for an affiliated entity, Church of Peace, in Rock Island.
Church of Peace and later QCACFP provided summer and after-school meal services to at-risk children throughout the Quad Cities area. The U.S. Department of Agriculture, Food and Nutrition Service, reimbursed the program a set amount per meal served. On a monthly basis, QCACFP submitted requests for reimbursement to the State of Illinois, which in turn received funding from USDA to pay the reimbursement.
Meals were provided in conjunction with after-school learning or care programming, typically at elementary or junior high schools and were operated by YMCA or Spring Forward Learning. During the 2015-2016 and 2016-2017 school years, QCACFP provided meal services to 35 to 50 sites in the Quad Cities and Galesburg, Ill., communities each month.
In today’s hearing, and according to court documents, Steele admitted that from August 2015 to June 2017, she submitted falsely inflated meal count forms for reimbursement. In some cases additional meals that were not served were added to counts of legitimate meals that were served to children. In other cases, Steele submitted fraudulent meal count forms when no meals at all were served at a particular location on a given day.
Among other things, the inflated reimbursement payments were used to fund Steele’s salary and salaries for Steele’s family members who performed nominal duties for the food program. Steele also set up a retirement account for herself that was fully funded by the food program. Steele also used the program’s credit card to make personal purchases from QVC, including a compact, foldable exercise bike which Steele categorized as uniforms.
In addition, Steele created and claimed fabricated mileage reimbursements. Steele consistently claimed to have driven approximately 1,500 miles per monthly pay period for a monthly reimbursement of approximately $840 for work related travel that she did not actually make. For the period of March 2016 through June 2017, Steele claimed work travel mileage reimbursement for more miles than the total mileage the vehicles belonging to Steele and her husband travelled during the same time period. As a result of the fraudulent mileage reimbursement claims, Steele received $15,059 in 2015 and $19,282 in 2016 that was not taxed or reported as income on Steele’s personal tax returns, for a total tax liability of $10,128.
At sentencing, the statutory maximum penalty for mail fraud is 20 years in prison. For filing a false tax return, the penalty is up to three years in prison.
Assistant U.S. Attorney John K. Mehochko is prosecuting the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois, Rock Island Division. The charges are the result of investigation by the U.S. Department of Agriculture, Office of Inspector General; IRS, Criminal Investigation and the FBI Springfield Division.
Former Chief Operating Officer of Long Island Federal Credit Union Arrested for EmbezzlementRead the Press Release
An indictment was unsealed today in federal court in Central Islip charging Suzanne Silva with embezzling over $465,000 during her seven-year tenure as Chief Operating Officer of Winthrop University Hospital Employees Federal Credit Union located in Mineola, New York (hereinafter Winthrop). Silva was arrested today, and her initial appearance is scheduled for this afternoon before United States Magistrate Judge Arlene R. Lindsay.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged in the indictment, Silva abused her authority as Chief Operating Officer and stole hundreds of thousands of dollars from the credit union, which she used to fund an extravagant lifestyle,” stated United States Attorney Donoghue. “Today’s arrest demonstrates that this Office will hold executives at financial institutions accountable for abrogating their duties and using their access to line their pockets.”
“Greed surfaces at all levels when criminals see a payday, and they think no one is watching,” stated FBI Assistant Director-in-Charge Sweeney. “In this investigation, someone noticed nearly half a million dollars was gone and now the COO faces criminal charges. This should serve as an example to others who believe their title enables them to escape notice when engaging in illegal behavior.”
As alleged in the indictment and court filings, between March 2011 and June 2018, Silva took advantage of her position at Winthrop to make unauthorized transfers totaling hundreds of thousands of dollars from operating accounts of Winthrop to personal accounts in her name and the names of family members. Silva used the funds to take Caribbean cruises, travel to Cancun and pay thousands of dollars a month for purchases from Amazon and Etsy. Silva’s employment was terminated by Winthrop in June 2018.
If convicted, Silva faces a maximum of 30 years’ imprisonment.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor.
The Defendant:
Suzanne Silva
Age: 35
Carle Place, New York,E.D.N.Y. Docket No. 18-CR-507 (DRH)
Foreign National Sentenced to Prison for His Role in Stolen Identity Refund Fraud SchemeRead the Press Release
A Honduran national was sentenced to 24 months in prison yesterday for theft of government funds in connection with his role in a stolen identity tax refund fraud scheme, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois.
According to documents and information provided to the court, Elin Matute, formerly of Waukegan, Illinois, cashed fraudulently obtained tax refund checks issued in the names of identity theft victims. In total, the scheme involved approximately 200 false tax returns and resulted in an intended tax loss of over $1.1 million. Matute cashed the checks at his bank and a local checking cashing business by claiming that the people listed on the checks were family members. Matute would then deposit the proceeds into bank accounts he controlled and would also send portions of the money overseas.
In addition to the term of imprisonment imposed, the court ordered Matute to serve three years of supervised release and pay $630,498 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Lausch commended special agents of IRS-Criminal Investigation who investigated the case, and Trial Attorneys John T. Mulcahy and Gregory P. Bailey of the Tax Division, who are prosecuting the case. Zuckerman also thanked the U.S. Attorney’s Office in Chicago for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Fitzgerald Man Sentenced for Possession with Intent to Distribute CocaineRead the Press Release
ALBANY: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Lakevis Woodard, age 31, of Fitzgerald, Georgia was sentenced to serve 24 months in federal prison for Possession with Intent to Distribute Cocaine Base before U.S. District Court Judge Leslie J. Abrams in Albany, Georgia on September 13, 2018.
On October 19, 2017, local law enforcement was conducting an authorized roadblock in Ben Hill County, Georgia. Mr. Woodard approached the roadblock and drug agents, who had been receiving information that Mr. Woodard was selling drugs in the area, were present. A drug detection dog alerted on Mr. Woodard’s vehicle, and a subsequent search of the vehicle revealed a Ruger, Model 1911, .45 caliber semi-automatic pistol under the driver’s seat.
During a subsequent search of Mr. Woodard’s residence, officers located a gallon-sized Ziploc bag of marijuana and a box containing powder cocaine, crack cocaine, and a set of digital scales. Lab test results from the Georgia Bureau of Investigation determined the presence of 22.625 grams of cocaine base, commonly known as “crack” cocaine.
“Guns and crack cocaine pose a significant danger to our community,” said U.S. Attorney Charles E. Peeler. “I commend the Ben Hill County Sheriff’s Office and the Georgia Department of Community Supervision for their investigation and efforts in this case.”
This case was investigated by the Ben Hill County Sheriff’s Office and the Georgia Department of Community Supervision. Assistant United States Attorney Leah E. McEwen prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Final Member of Major Middle Georgia Methamphetamine Organization Sentenced to Life in Prison Without ParoleRead the Press Release
MACON: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Russell Todd Mathis, age 45, of Warner Robins, Georgia, was sentenced, on September 19, 2018, to life in prison for his role in a methamphetamine and marijuana distribution conspiracy. Mr. Mathis received a mandatory life sentence because he had two prior drug convictions. The sentence was handed down by U. S. District Court Judge Marc T. Treadwell in Macon. There is no parole in the federal system.
Mr. Mathis was convicted of the charges on June 6, 2018 following a three-day jury trial. Evidence presented at trial showed that from July 2016 to October 2016, Mr. Mathis was a customer of Walter Williams, a/k/a “Bubba,” of Lizella, Georgia. Mr. Mathis purchased methamphetamine from Mr. Williams and distributed it to a number of other distributors in Middle Georgia. At Mr. Mathis’ trial, Mr. Williams estimated that he distributed one to two pounds of methamphetamine to Mr. Mathis weekly for 16 weeks.
Mr. Mathis was the sole defendant to go to trial. Eleven co-defendants entered guilty pleas and were previously sentenced:
- Ruben Perez, age 32 of Covington, Georgia
- Guilty plea entered: February 27, 2018
- Offense: Conspiracy to Possess with Intent to Distribute Methamphetamine
- Sentence: 20 years imprisonment
- Antonio Mendez-Ramos, age 33, of Jonesboro, Georgia and Mexico
- Guilty plea entered: March 21, 2018
- Offense: Conspiracy to Possess with Intent to Distribute Methamphetamine
- Sentence: 17 years and 6 months imprisonment
- Walter Williams a/k/a “Bubba,” age 40, of Lizella, Georgia
- Guilty plea entered: December 1, 2017
- Offense: Conspiracy to Possess with Intent to Distribute Methamphetamine
- Sentence: 16 years and 8 months imprisonment
- James Howell, a/k/a “Flip,” age 28, of Macon, Georgia
- Guilty plea entered: November 20, 2017
- Offense: Distribution of methamphetamine
- Sentence: 12 years and 7 months imprisonment
- Ashlee Shaw, age 29, of Lizella, Georgia
- Guilty plea entered: March 20, 2018
- Offense: Conspiracy to Possess with Intent to Distribute Methamphetamine
- Sentence: 10 years imprisonment
- Shana Walker, age 33, of Macon, Georgia
- Guilty plea entered: December 19, 2017
- Offense: Conspiracy to Possess with Intent to Distribute Methamphetamine
- Sentence: 8 years and 1 month imprisonment
- Milton Dobbin Evans, age 66, of Macon, Georgia
- Guilty plea entered: February 27, 2018
- Offense: Use of Communications Facility in Causing or Facilitating the Commission of Felonies under the Controlled Substances Act
- Sentence: 4 years imprisonment
- Layla Keaney, age 38, of Gray, Georgia
- Guilty plea entered: December 14, 2017
- Offense: Conspiracy to Possess with Intent to Distribute Methamphetamine
- Sentence: 18 months imprisonment
- Danna Stokes, age 38, of Bonaire, Georgia
- Guilty plea entered: February 27, 2018
- Offense: Use of Communications Facility in Causing or Facilitating the Commission of Felonies under the Controlled Substances Act
- Sentence: 1 year and 1 day imprisonment
- Bobby Martinez, age 28, of East Point, Georgia
- Guilty plea entered: April 16, 2018
- Offense: Conspiracy to Possess with Intent to Distribute Methamphetamine
- Sentence: 5 years of probation
- Chadwick Nicholson, age 41, of Lizella, Georgia
- Guilty plea entered: December 21, 2017
- Offense: Possession with Intent to Distribute Marijuana
- Sentence: 5 years of probation
“Methamphetamine continues to be one of the most destructive drugs in our district. It not only ruins the lives of those who choose to use it and choose to deal it, it also affects families, law enforcement, healthcare providers, governments, and citizens across our district,” said United States Attorney Charles E. Peeler. “This life sentence sends a strong message that our office and our law enforcement partners will not rest until we hold accountable those responsible for spreading this poison. I want to thank the DEA, GBI, Peach County Sheriff’s Office, Bibb County Sheriff’s Office, and Houston County Sheriff’s Office for leading the charge in this matter.”
“Bubba Williams was a major supplier in the Middle Georgia area for some time. Todd Mathis was his #1 distributor, and he was responsible for spreading a lot of this crystal poison in our community. It’s good to see local, state and federal law enforcement working together to take someone like him off the streets,” said Peach County Sheriff Terry Deese. “This might not stop the flow of methamphetamine to this area but it will slow it down for some time. It will take a while for someone else to come in and set up a network such as the one we have just dismantled.”
“The cocktail of deadly chemicals used to manufacture methamphetamine is a recipe for disaster,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “These substances are not only volatile and toxic, but they also destroy families, communities and lives. Because of the collective effort between DEA, its local, state and federal law enforcement counterparts and the U.S. Attorney’s Office, these defendants were brought to justice and will no longer be able to distribute this insidious drug.”
“These convictions demonstrate the great work of law enforcement at all levels to investigate and prosecute the distribution of illegal drugs affecting Georgia and our surrounding states,” said GBI Director Vernon Keenan. “The GBI remains committed to working with our local and federal partners in drug enforcement to address these types of crimes.”
This case was investigated by the Peach County Sheriff’s Office, Drug Enforcement Administration, and Georgia Bureau of Investigation, with the assistance of the Bibb County Sheriff’s Office and Houston County Sheriff’s Office. Assistant U.S. Attorney Elizabeth S. Howard handled the prosecution of the defendants who have been sentenced. Assistant U.S. Attorney Jim Crane is handling the prosecution of Mr. Mathis.
Questions concerning this release should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or [email protected].
- Ruben Perez, age 32 of Covington, Georgia
Federal Court Shuts Down Pasadena-Based Tax Return Preparer after Finding that Her Fraudulent Returns Cost the IRS Millions of DollarsRead the Press Release
LOS ANGELES – A federal court has issued an order that permanently bars a tax return preparer who operated offices in Pasadena – as well as other cities in California, Colorado and Kansas – from preparing federal income tax returns, United States Attorney Nick Hanna announced today.
Maria Del Consuelo Vazquez is the subject of a permanent injunction filed Monday by United States District Judge Fernando M. Olguin. In Monday’s order, Judge Olguin also prohibited Vazquez from owning a tax return preparation business.
Vasquez operated tax preparation business in Pasadena; Corona; Santa Ana; Brighton, Colorado; and Hutchinson, Kansas under a Nevada corporation she called MCV Business Network, Inc. In recent years, Vazquez filed thousands of tax returns for clients under her IRS-issued Preparer Tax Identification Number (PTIN).
According to a lawsuit filed by federal prosecutors on July 13 and testimony presented to the court, Vazquez substantially inflated or completely fabricated charitable contributions and unreimbursed employee business expenses to illegally generate federal income tax refunds for her clients or to substantially understate clients’ tax liabilities.
“Vazquez prepared and filed a total of 9,216 tax returns from January 1, 2015 to May 21, 2018 with her PTIN,” Judge Olguin wrote. “Based on the average deficiency of $2,830.29 from her audited returns, that suggests Vazquez’s fraudulent returns have resulted in harm of over $26 million to the United States from January 1, 2015 to present.”
This case against Vazquez was handled by Assistant United States Attorney Melissa Briggs of the Tax Division.
On its website, the IRS has ten tips for choosing a tax preparer. Each year, the IRS releases the top 12 scams, known as the Dirty Dozen. Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2018, and taxpayers seeking a return preparer should remain vigilant. The IRS has published information on choosing a return preparer and has launched a free directory of federal tax preparers.
Over the past decade, the Justice Department has obtained injunctions against hundreds of unscrupulous tax preparers and has published an alphabetical listing of persons enjoined from preparing returns and promoting tax schemes. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division at [email protected] with details.
Federal Court Orders $1.3 Million Judgment Against Toxicology Laboratory for Committing Healthcare FraudRead the Press Release
FRANKFORT, Ky. – The U.S. District Court has entered a civil judgment of $1,374,058, in favor of the United States and against Calloway Laboratories, Inc. (“Calloway”), a clinical laboratory based in Woburn, Massachusetts, holding Calloway liable for submitting false claims to federal healthcare programs, including Medicare and TRICARE.
This civil judgment, announced today by the U.S. Attorney’s Office, is part of a settlement agreement resolving False Claims Act allegations that, during the period May 2014 to November 2014, Calloway submitted false claims for payment for urine drug testing referred by physicians to whom Calloway provided free testing supplies. As part of the settlement agreement, Calloway acknowledged that it provided free testing supplies to physicians for the purpose of inducing or rewarding referrals of urine drug testing to Calloway. Calloway then submitted claims to Medicare and TRICARE seeking payment for the testing referred by these physicians.
The provision of free testing supplies to induce or reward referrals violates the Anti-Kickback Statute, a federal law that prohibits offering or providing anything of value to physicians to encourage the referral of services covered by federal healthcare programs. This conduct also violates the Stark Law, which prohibits a laboratory from billing Medicare for services referred by physicians with whom the laboratory has an improper financial relationship. Both the Anti-Kickback Statute and the Stark Law are intended to ensure that medical decision-making is not compromised by improper financial incentives and is instead based on the best interest of the patient.
“Offering financial incentives to physicians in exchange for patient referrals undermines the integrity of our health care system,” said U.S. Attorney Robert M. Duncan, Jr. “Our office will continue to protect both patients and taxpayers by holding those who engage in kickback schemes accountable.”
The Government’s investigation began with the filing of a whistleblower lawsuit brought by a former Calloway employee under the qui tam provisions of the False Claims Act. Under the Act, private parties may bring suit on behalf of the government and may receive a portion of any federal recovery.
This matter was handled by the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service; and the U.S. Attorney’s Office for the Eastern District of Kentucky. The United States was represented by Assistant U.S. Attorneys Christine Corndorf and Carrie B. Pond.
Employee of Essex County Sheriff’s Office Charged with Attempted ExtortionRead the Press Release
NEWARK, N.J. – An employee of the Essex County Sheriff’s Office was charged with soliciting payments from a man posing as a land developer for information regarding properties under foreclosure, U.S. Attorney Craig Carpenito announced today.
Abdush Shahid Ahmad, 51, of Newark, was charged by complaint with attempted extortion under color of official right affecting interstate commerce. He made his initial appearance today before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
According to documents filed in this case and statements made in court:
An employee in the civil process division of the Essex County Sheriff’s Office, Ahmad had access to writs of execution on homes to be sold at public auction by the Sherriff’s Office as a result of foreclosure actions. Ahmad allegedly indicated to a cooperating witness that he had access to that information before the information was made public on the Essex County Sheriff’s Office website or announced in local newspapers. Ahmad attempted to sell approximately 20 writs of execution to the cooperating witness who posed as a land developer, and who was operating at the direction of law enforcement agents. Ahmad received $100 for each writ and made clear that he expected an additional $4,900 for each property that the cooperating witness was able to acquire using the non-public information. Ahmad allegedly recorded the terms of the arrangement in a contract that he signed and presented to the cooperating witness in person, to avoid using his e-mail to send the contract to the cooperating witness.
The count of attempted extortion under color of official right affecting interstate commerce carries a maximum penalty of 20 years in prison and a $250,000 fine.U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Jacques S. Pierre of the Special Prosecutions Division.
The allegations and charges in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Carol Gillen Esq., Assistant Federal Public Defender
Eight people from Akron indicted trafficking methamphetamine and heroinRead the Press Release
Eight people from Akron were indicted in federal court for their roles in a conspiracy to traffic methamphetamine and heroin.
Named in the 18-count indictment are: Patrick Griffin, 31; Leonard Jones, Jr., 39; Jerome Walton, 34; Isaac Love, 33; Robert Hammond, 34; Anthoney Carter, 29; Eric Bennett, 26; and Natorria Clark, 33.
Griffin received the methamphetamine and heroin from a source in California. He and Walton distributed the drugs to customers including Jones, Love, Hammond, Carter and Bennett. Carter traveled between California and Ohio to transport the drugs for Griffin, according to the indictment.
This took place from June 2015 through this month, according to the indictment.
Walton is additionally charged with possession of a firearm in furtherance of drug trafficking.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than maximum.
This cases is being prosecuted by Assistant U.S. Attorney Teresa Riley following an investigation by the Summit County Sheriff's Office, Summit County Drug Unit, Summit County Prosecutor's Office, Ohio State Highway Patrol, U.S. Marshal Service and police departments from Copley, Barberton, Reminderville, Cuyahoga Falls, Springfield, New Franklin, Stow, the University of Akron and Silver Lake.
An indictment is only a charge. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
District of Minnesota Tribes to Receive $8.6 Million in Public Safety GrantsRead the Press Release
United States Attorney Erica H. MacDonald joined the Department of Justice today 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. Six tribes within the District of Minnesota have received grants totaling more than $8.6 million.
The Leech Lake Band of Ojibwe will receive a total of $1,921,228, the Lower Sioux Indian Community will receive a total of $3,261,780, the Mille Lacs Band of Ojibwe will receive a total of $1,187,669, the Red Lake Band of Chippewa Indians will receive a total of $1,310,299, the Prairie Island Indian Community will receive a total of $598,976, and the White Earth Reservation Tribal Council will receive a total of $337,426.
U.S. Attorney MacDonald said, “Violent crime disproportionately affects many of our Native American communities. These grants will directly support efforts to address some of the toughest challenges – such as domestic violence and opioid and substance abuse.”
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.
Today’s 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 today’s announced CTAS awards is available at: www.justice.gov/tribal/page/file/1095161/download.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Director of Finance at Local Company Admits to EmbezzlementRead the Press Release
St. Louis, MO – James Guccione, 51, of St. Louis County pleaded guilty to wire fraud this afternoon before Chief Judge Rodney Sippel in St. Louis.
According to his plea agreement, Guccione admitted to a fraud scheme whereby he ordered computer hardware and software through his employer and converted the equipment to his own use. Additionally, Guccione admitted to falsifying reimbursement requests from his employer which were directed into his personal bank account. As Director of Finance, Guccione admitted he abused a position of trust in the execution of the fraud scheme. Guccione did not agree to a particular amount of loss but the U.S. Attorney’s Office contends more than $331,000 was taken during the scheme.
Judge Sippel accepted Guccione’s plea and deferred sentencing until December 21, 2018. The maximum penalty for wire fraud is 20 years’ imprisonment, a fine of $250,000 or both. Restitution to the victim is also mandatory.
The case was investigated by the Clayton Police Department with assistance from the St. Louis County Prosecuting Attorney’s Office. Tom Albus is handling the case for the U.S. Attorney’s Office.
Corinth Man Ordered to Pay $50,000 Fine and Banned from Hunting for Killing Migratory BirdsRead the Press Release
OXFORD, Miss. William C. Lamar, U.S. Attorney for the Northern District of Mississippi, and Luis Santiago, Special Agent in Charge of the U.S. Fish and Wildlife Service, announced that:
Frederick Alvin Corder, 53, of Corinth, Mississippi, was sentenced Wednesday to pay a $50,000 fine for his role in trapping and killing migratory birds. In addition to the fine, Corder was placed on probation for a term of two years. As a condition of his probation, Corder will be prohibited from hunting anywhere in the world or participating in field trials for a period of two (2) years.
Corder was previously found guilty of eight counts charging him with violating the Migratory Bird Treaty Act (“MBTA”) and one count of conspiracy to violate the MBTA following a bench trial on August 6-7, 2018, before United States Magistrate Judge David A. Sanders, in Oxford, Mississippi. Each count pertained to the taking or attempted taking of migratory birds of prey, including hawks and owls, on Cedar Oak Plantation in Marshall County, Mississippi. Corder, who utilized Cedar Oak Plantation for purposes of releasing pen-raised quail for field trials and the training of bird dogs, participated in a scheme over a three to four year period to trap and kill hawks and owls that might prey upon the released quail.
“We take our mission working with the Mississippi Department of Wildlife, Fisheries, and Parks and the citizens of Mississippi in conserving, protecting, and enhancing fish, wildlife, plants and their habitats very seriously,” said United States Fish and Wildlife Service Special Agent in Charge Santiago. “The U.S. Fish and Wildlife Service, Office of Law Enforcement will continue to work closely with our State partners to assist them in these important investigations.”
“The U.S. Attorney’s Office will continue to work closely with the U.S. Fish and Wildlife Service and the Mississippi Department of Wildlife, Fisheries and Parks to hold accountable those individuals who choose to violate the law by abusing our environment,” stated U.S. Attorney Lamar.
This case was investigated by the United States Fish and Wildlife Service Office of Law Enforcement and the Mississippi Department of Wildlife, Fisheries and Parks. The case was prosecuted for the United States by AUSA Robert Mims.
Convicted Felon Sentenced to Prison for Firearm PossessionRead the Press Release
RICHMOND, Va. – A previously convicted felon was sentenced yesterday to 10 years in prison for possession of a firearm.
“Convicted felons who possess firearms will be investigated and prosecuted at every opportunity,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Our primary mission is public safety, and keeping guns out of the hands of convicted felons goes a long way towards ensuring the safety of our law enforcement partners and the communities they serve. We are committed to removing illegally possessed firearms from our streets, and are zeroing in on criminals like Mr. Willis who are carrying firearms and driving crime in our communities.”
According to court documents, Zaymar Antonio Willis, 31, of Richmond, possessed multiple firearms, including a Bushmaster model XM15-E2S, caliber 223 Remington/ 5.56x45mm NATO semiautomatic pistol, with a 30-round magazine. Willis was prohibited from possessing a firearm due to his prior felony convictions that included a 2009 drug trafficking conviction and a 2013 drug trafficking conviction. In addition to the 3 semiautomatic pistols recovered from the residence, the police also recovered a number of drug-related items, including digital scales, a plate with a razor blade and residue, numerous plastic sandwich bags with the corners ripped off and a small quantity of heroin wrapped in a plastic bag corner. Law enforcement also recovered over $3,500 in cash.
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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Alfred Durham, Chief of Richmond Police, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Olivia L. Norman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-41.
Convicted Felon Sentenced to Federal Prison for Bribing a Postal EmployeeRead the Press Release
NASHVILLE, Tenn. – September 19, 2018 – Mark Shankle, 28, of Nashville, Tennessee, was sentenced Monday to 15 months in prison for paying a bribe to a public official, announced U.S. Attorney Don Cochran of the Middle District of Tennessee. Shankle was indicted in March and pleaded guilty on June 11, 2018.
According to court documents, in December 2017 Shankle approached an employee of the United States Postal Service in Joelton, Tennessee and solicited his assistance in receiving a shipment of steroids. Shankle offered to pay the employee $300 to hold and deliver the package to him when it arrived at the post office. After arranging to have the package shipped under a false name, Shankle gave the employee $100. The postal employee reported the incident to the U.S. Postal Inspection Service.
In late December 2017, the Postal Service identified the target package which had been shipped from Oakland, California. Agents obtained a search warrant for the package and discovered that it contained approximately two pounds of marijuana. A controlled delivery of the package was arranged and Shankle was arrested after picking up the package at the rear of the Ashland City, Tennessee Post Office on January 2, 2018.
At the time of his arrest, Shankle was on supervised release after having been convicted in 2011, in U.S. District Court in Nashville, of being a convicted felon in possession of a firearm.
This case was investigated by the U.S. Postal Inspection Service and the USPS Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Siji Moore.
Connecticut Business Owner Sentenced for Export ViolationRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that IMRAN KHAN, 44, of North Haven, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to three years of probation, the first six months of which KHAN must serve in home confinement, for violating U.S. export law. Judge Underhill also ordered KHAN to perform 100 hours of community service and pay a $3,000 fine.
According to court documents and statements made in court, from at least 2012 to December 2016, KHAN and two of his family members engaged in a scheme to purchase goods that were controlled under the Export Administration Regulations (“EAR”) and to export those goods without a license to Pakistan, in violation of the EAR. Through companies conducting business as Brush Locker Tools, Kauser Enterprises-USA and Kauser Enterprises-Pakistan, the three defendants received orders from a Pakistani company that procured materials and equipment for the Pakistani military, requesting them to procure specific products that were subject to the EAR. When U.S. manufacturers asked about the end-user for a product, the defendants either informed the manufacturer that the product would remain in the U.S. or completed an end-user certification indicating that the product would not be exported.
After the products were purchased, they were shipped by the manufacturer to the defendants in Connecticut. The products were then shipped to Pakistan on behalf of either the Pakistan Atomic Energy Commission (“PAEC”), the Pakistan Space & Upper Atmosphere Research Commission (“SUPARCO”), or the National Institute of Lasers & Optronics (“NILOP”), all of which were listed on the U.S. Department of Commerce Entity List. The defendants never obtained a license to export any item to the designated entities even though they knew that a license was required prior to export. The defendants received the proceeds for the sale of export-controlled items through wire transactions to a U.S. bank account that the defendants controlled.
On June 1, 2017, KHAN pleaded guilty to one count of violating the International Emergency Economic Powers Act. In pleading guilty, he specifically admitted that, between August 2012 and January 2013, he procured, received and exported to PAEC an Alpha Duo Spectrometer without a license to do so.
On March 5, 2018, KHAN’s father, Muhammad Ismail, and his brother, Kamran Khan, each pleaded guilty to one count of international money laundering, for causing funds to be transferred from Pakistan to the U.S. in connection with the export control violations. In pleading guilty, Ismail and Kamran Khan specifically admitted that, between January and July 2013, they procured, received and exported to SUPARCO, without a license to do so, certain bagging film that is used for advanced composite fabrication and other high temperature applications where dimensional stability, adherence to sealant tapes and uniform film gage are essential. The proceeds for the sale of the bagging film was wired from Pakistan to the defendants in the U.S.
On July 18, 2018, Judge Underhill sentenced both Muhammad Ismail and Kamran Kahn to 18 months of imprisonment. Ismail and Kamran Khan are both citizens of Pakistan and lawful permanent residents of the U.S.
This matter was investigated by the Defense Criminal Investigative Service, Federal Bureau of Investigation, Homeland Security Investigations, U.S. Postal Inspection Service and the U.S. Department of Commerce’s Office of Export Enforcement. The case was prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss in coordination with Trial Attorney Scott McCulloch of the Justice Department’s Counterintelligence and Export Control Section (CES).
Cleveland men indicted for committing armed carjackings around Ohio City, Tremont and Shaker Square and using one of the vehicles to steal firearms from a gun store in StreetsboroRead the Press Release
Two Cleveland men were indicted in federal court for their roles in a conspiracy with included committing armed carjackings around Ohio City, Tremont and Shaker Square and using one of the vehicles to steal firearms from a gun store in Streetsboro.
Zyshonne Austin and Ja’Quez Lyons, both 18, were indicted on one count of conspiracy, one count of theft from a federal firearms licensee, one count of carjacking and one count of using a firearm during a crime of violence.
Austin faces an additional count of possession of a stolen firearm while Lyons faces additional counts of carjacking and using a firearm during a crime of violence.
A third man, James Luke, 18, of Cleveland, was indicted for his role in the Streetsboro gun store robbery.
Austin and Lyons beginning in April used firearms in armed carjackings. A man was getting out of his red Volkswagen Passat on Larchmere Avenue on April 14 when another man approached with a gun and demanded his car, while another man acted as a lookout, according to court documents.
The next day, on April 15, Austin, Lyons and Luke stole 10 firearms from Top Shot Firearms in Streetsboro. The suspects used an object to smash through glass display cases and steal the guns. Blood was found at the scene, according to court documents.
On April 16, Cleveland police officers responded to a call of shots fired near East 123rd Street and recovered the Volkswagen Passat. Inside the car they found price tags from the stolen firearms, some of which had blood on them, a rag with suspected blood on it, a hammer and a receipt from the McDonald’s at 3050 Carnegie Avenue from April 15, among other items.
On April 21, one of the stolen firearms was recovered from Austin after he was arrested following an attempted armed robbery and carjacking in the Ohio City neighborhood. Austin was arrested after he and another suspect fled after crashing the stolen Toyota IA near Kinsman Avenue. Austin had cuts on his hands, according to court documents.
Lyons on May 7 used a firearm to steal a 2016 Lincoln MKC. Following his arrest, a search of Lyons’ phone revealed Austin was one of 13 people listed as contacts and that Lyons had done numerous searches for gun stores, including Top Shot Firearms in Streetsboro, according to court documents.
The phone also included numerous text exchanges between Austin and Lyons discussing robbing the Streetsboro gun store, according to court documents.
DNA tests showed Austin’s blood matched the blood on the price tags of the stolen guns and blood on the hammer recovered in the stolen car. A search of Austin’s phone revealed numerous computer searches around the time of the robbery, including “Top Shot Firearms” and “gun store breakin (sic) Streetsboro,” according to court documents.
Austin also sent images of himself and others with the stolen firearms and in front of the stolen Volkswagen Passat, according to court documents.
This investigation is ongoing.
“These defendants pointed loaded guns at everyday people in our community and stole their cars, then used at least one of those stolen cars to drive to Portage County and hold up a gun store,” U.S. Attorney Justin Herdman said. “Our community is safer with these predators behind bars. This case is also another demonstration of working with local police and prosecutors to target the worst of the worst.”
“ATF’s core mission is reducing violent gun crime in our communities,” said Trevor Velinor, Special Agent in Charge of ATF’s Columbus Field Division. “Firearms theft involves violent acts where criminals distribute stolen firearms throughout our communities, which causes a growing wave of violence. ATF is committed to working with our federal, state, and local partners to pursue those who steal firearms from licensed firearms dealers.”
“Taking violent, armed and dangerous offenders off of our streets is a service to our communities,” said Chief Calvin D. Williams of the Cleveland Division of Police. “I am always thankful for the strong law enforcement partnerships we have here in Northeast Ohio.”
FBI Special Agent in Charge Stephen D. Anthony said: “These three stole numerous weapons and used those illegally obtained guns to violently terrorize people leaving work and visiting friends in our community. They had no regard for the safety and hard earned belongings of others and now must face the federal justice system and its consequences."
“This case highlights the partnership between law enforcement, the U.S. Attorney’s Office, and the Cuyahoga County Prosecutor’s Office, as we have a duty to work together to ensure the safety of the community,” said Cuyahoga County Prosecutor Michael O’Malley.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
These cases are part of Project Safe Neighborhoods, 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.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cleveland Division of Police, the FBI, the Streetsboro Police Department, the Twinsburg Police Department and the Cuyahoga County Prosecutor’s Office’s Crime Strategies Unit. It is being prosecuted by Assistant. U.S. Attorney Kelly L. Galvin.
An indictment is only a charge and is not evidence of guilt. Defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cedar Rapids Drug User Convicted of Gun CrimeRead the Press Release
A Cedar Rapids woman who was an unlawful user of methamphetamine and possessed a gun pled guilty today in federal court in Cedar Rapids.
Melissa Kurth, age 38, from Cedar Rapids, Iowa, was convicted of being an unlawful user of methamphetamine in possession of a firearm. At the plea hearing, Kurth admitted that she possessed a gun on January 26, 2018, when she was stopped by officers from the Cedar Rapids Police Department. During the stop officers recovered a gun, two digital scales, and two syringes. Kurth also admitted she was an unlawful user of methamphetamine for an extended period of time.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Kurth remains in custody of the United States Marshal pending sentencing. Kurth faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Ashley Corkery and was investigated by the Cedar Rapids Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 18-CR-00056.
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Brooklyn Man Charged with Additional Count for Improvised Explosive Device Found in His ResidenceRead the Press Release
Earlier today, a grand jury returned a superseding indictment against Victor Kingsley, a Brooklyn resident, adding a charge of attempted use of a weapon of mass destruction based on a fully assembled explosive device that police found in his apartment when he was arrested in February 2018. The new indictment includes the original charges for the use of a weapon of mass destruction that resulted in the death of a Queens resident on July 28, 2017, and for the unlawful transportation of explosive materials. Kingsley will be arraigned at a later date in federal court in Brooklyn.
Richard P. Donoghue, United States Attorney for the Eastern District of New York; John C. Demers, Assistant Attorney General for the National Security Division; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and James P. O’Neill, Commissioner, New York City Police Department, announced the charges.
As alleged in court filings, Kingsley built the explosive device used in the July 28, 2017 murder as part of his broader effort to retaliate violently against several police officers who were part of an NYPD unit that had arrested him in January 2014. Despite the 2014 arrest eventually resulting in the dismissal of charges, Kingsley sought revenge against the officers. Ultimately, he arranged for the explosive device to be placed outside of the Queens residence where Kingsley mistakenly believed one of his target officers resided. The building owner inadvertently detonated the device when he tried to open it, and he died as a result of his injuries. Thereafter, Kingsley continued to acquire explosive device parts.
Kingsley was arrested at his Brooklyn residence on February 28, 2018. During the search of his residence, agents seized another fully assembled destructive device contained in a mailing tube identical to the one used for the July 2017 device, as well as large quantities of incendiary powder. This additional destructive device is the basis for the new charge in the superseding indictment.
If convicted on all counts, Kingsley faces a maximum sentence of life in prison or death. The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Margaret Lee and Michael Keilty are in charge of the prosecution.
The Defendant:
Victor C. Kingsley
Age: 37
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-128 (S-1) (SJ)
Brooklyn High School Teacher Charged with Production of Child PornographyRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Jonathan Deutsch, a teacher at Leon M. Goldstein High School for the Sciences, with five counts of sexual exploitation of a child. The charges relate to sexually explicit images and videos of children that the defendant allegedly requested and received from minors who he targeted on Facebook. Deutsch was arrested today, and will be arraigned this afternoon before United States Magistrate Judge Robert M. Levy.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged, Jonathan Deutsch, a Brooklyn high school teacher, solicited and received sexually explicit material from minors he contacted on Facebook,” stated United States Attorney Donoghue. “The protection of innocent children is an utmost priority for this Office and our law enforcement partners. We will continue to make every effort to ensure that those who contribute to the exploitation and victimization of children will be brought to justice.” Mr. Donoghue extended his grateful appreciation to the FBI New York Child Exploitation and Human Trafficking Task Force, which is made up of FBI and New York City Police Department investigators, for its investigative work and assistance in the case.
“Our children deserve to grow up in a world where they don't have to face overcoming the horrors and scars of sexual abuse,” stated FBI Assistant Director-in-Charge Sweeney. “The fact that this suspect was a teacher makes this crime even more egregious. Parents, working with law enforcement, are the first line of defense against sexual predators who can now reach into your child's bedroom from anywhere in the world. The FBI New York Child Exploitation and Human Trafficking Task Force encourages anyone who may believe their child could be a victim to call our office at 212-384-1000.”
According to court filings, beginning around January 2017, Deutsch targeted Facebook users who appeared from their profiles to be minors, and then contacted them using Facebook messenger in an attempt to develop a relationship. As part of his broader effort to groom these minors for sexual exploitation, Deutsch often disclosed his status as a teacher. Deutsch contacted hundreds of apparent minors on Facebook and had communications of a sexual nature with at least 45 of them. Deutsch requested and received sexually explicit images or videos from at least four minors, whom the FBI has identified. Those victims range in age from 10 to 16 years old. Deutsch often instructed minors to perform sexually explicit acts and to send him videos and photos of those acts. Deutsch also sent minors sexual photos that he represented to be of himself.
If convicted of any of the five counts of sexual exploitation of a child, Deutsch faces a mandatory minimum of 15 years’ imprisonment.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
This prosecution is 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 United States Attorneys’ Offices and the Department of Justice Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Megan E. Farrell is in charge of the prosecution.
The Defendant:
Jonathan Deutsch
Age: 34
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-502
Boston Man Pleads Guilty to Obtaining Cocaine via U.S. Mail and to Assaulting Federal OfficersRead the Press Release
BOSTON – A Boston man pleaded guilty in federal court in Boston yesterday to charges of drug possession and assaulting federal law enforcement officers in connection with his role in obtaining cocaine from Puerto Rico through the U.S. mail.
Pablo Santiago-Cruz, 47, pleaded guilty to conspiring to possess with intent to distribute 500 grams or more of cocaine, possession with intent to distribute cocaine, and assaulting federal officers. U.S. Senior District Court Judge George A. O’Toole Jr. scheduled sentencing for Dec. 17, 2018.
According to court records, Santiago-Cruz participated in a conspiracy to obtain cocaine from Puerto Rico via the United States mail from at least March 2016 through July 2016. As part of the investigation, agents identified more than 30 suspicious parcels that were sent from Puerto Rico to individuals known to be associated with Santiago-Cruz. These parcels were delivered to co-conspirators at residences in Quincy and Framingham and to commercial mail receiving facilities in Canton and Randolph.
On July 18, 2018, law enforcement stopped a vehicle driven by co-conspirator Carlos Reyes and seized a kilogram of cocaine that was hidden inside a toy oven that was in the trunk of Reyes’ vehicle. The next day, agents executed a search warrant at Santiago-Cruz’s apartment in Roslindale. Upon hearing the agents knock and announce their presence, Santiago-Cruz grabbed a silver bowl with cocaine from under the kitchen sink and then attempted to flush approximately 93 grams of cocaine down the toilet, meanwhile ignoring repeated orders from the officers to stop. When the agents entered the apartment and attempted to subdue Santiago-Cruz, he physically resisted and struck several of the officers, resulting in physical injuries to the officers.
Reyes pleaded not guilty; his trial is scheduled to begin Sept. 24, 2018.
United States Attorney Andrew E. Lelling; Raymond Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry Gilpin, Superintendent, Massachusetts State Police; Norfolk County District Attorney Michael W. Morrissey; and Stoughton Police Chief Donna McNamara made the announcement today. Assistant U.S. Attorneys James E. Arnold and Craig E. Estes of Lelling’s Narcotics and Money Laundering Unit are prosecuting the case.
Bluefield Man Sentenced on Gun ChargeRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Mike Stuart announced that a Bluefield man was sentenced yesterday to federal prison on a gun charge. Laron Safford, 42, was sentenced to 24 months in prison for being a felon in possession of a firearm. The case was investigated by the Southern Regional Drug and Violent Crime Task Force.
“Repeat offenders keep my prosecutors busy,” said United States Mike Stuart. “We will prosecute convicted felons found to be in possession of firearms EVERY. SINGLE. DAY.”
Safford pled guilty in January, admitting that on September 14, 2017, he possessed two pistols at his residence in Bluefield. Safford was prohibited from possessing firearms because of his prior felony convictions of delivery of a controlled substance and trafficking in cocaine. He also admitted that he sold cocaine to an informant in Bluefield on four occasions in September 2017.
Assistant United States Attorney John File prosecuted the case and Senior United States District Judge David A. Faber imposed the sentence.
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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Black Out Squad Member of the Gangster Disciples Sentenced to 30 Years Imprisonment for Racketeering Conspiracy and Gun ViolenceRead the Press Release
Memphis, TN – A Gangster Disciples gang member was sentenced today to 360 months in prison followed by five years of supervised release for participating in a racketeering conspiracy and for using, and carrying a firearm during and in relation to a crime of violence.
U. S. Attorney D. Michael Dunavant of the Western District of Tennessee, Special Agent in Charge M.A. Myers of the FBI’s Memphis Division and Special Agent in Charge Marcus Watson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Memphis Field Division, made the announcement.
Tommy Earl Champion, Jr., aka "Duct Tape," 29, of Jackson Tennessee, was sentenced by U.S. District Court Judge John T. Fowlkes Jr. Champion previously pleaded guilty to racketeering conspiracy and one count of using and carrying a firearm during and in relation to a crime of violence.
U.S. Attorney D. Michael Dunavant said, "Dismantlement of criminal gangs is a top priority of the Department of Justice, and this case represents the collaborative efforts of federal, state, and local law enforcement to target and remove a significant violent participant in the Gangster Disciples organization. "Duct Tape" is now stuck with a 30-year sentence for his violent crimes. We are taking the fight to the gangs in West Tennessee, and we are relentless in our resolve."
According to the indictment, the Gangster Disciples is a highly organized national gang active in more than 35 states. The scope of the Gangster Disciples’ crimes is wide-ranging and consistent throughout its national operation. The gang protects its power through threats, intimidation and violence, including murder, attempted murder, assault and obstruction of justice. The Gangster Disciples promotes its enterprise through member-
only activities and provides financial and other support to members charged with or incarcerated for gang-related offenses.
According to court documents, Champion was a member of the Gangster Disciples and served on the gang’s "blackout squads" and "security teams." Champion was responsible for carrying out violent acts, including attempted murder, witness and victim intimidation, and assault, at the direction of senior Gangster Disciples leaders. Champion also participated in the other criminal activities of the Gangster Disciples enterprise, including narcotics distribution and weapons possession.
In addition to the racketeering conspiracy count, Champion was sentenced for using a firearm in relation to a crime of violence, which, according to the indictment, occurred on June 12, 2014 in Jackson. The indictment states that the crime of violence was attempted murder, and that Champion and other gang members committed the crime for the purpose of gaining entrance to and maintaining and increasing their position in the Gangster Disciple enterprise. There were seven victims of this attempted murder noted in the indictment. Champion had previously pleaded guilty on April 2.
The FBI; ATF; the Memphis Multi-Agency Gang Unit; the Memphis Police Department; the Shelby County, Tennessee Sheriff’s Office; the Jackson Police Department Gang Enforcement Team; the Tennessee Bureau of Investigation; the Madison County, Tennessee Sheriff’s Department; the 28th District West Tennessee Drug Task Force; the Tipton County, Tennessee, Sheriff’s Office; the 26th Judicial District Attorney General’s Office; the 25th Judicial District Attorney General’s Office; the Atascosa County, Tennessee District Attorney’s Office and the Shelby County District Attorney General’s Office investigated this case. Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Beth Boswell of the Western District of Tennessee and Samuel Stringfellow of the Northern District of Mississippi prosecuted this case.
Baltimore and Texas Men Indicted for Alleged $364 Million Ponzi Scheme—One of the Largest Ever Charged in MarylandRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted three men on charges of conspiracy, wire fraud, identity theft, and money laundering, arising from an alleged $364 million investment fraud scheme. The indictment was returned under seal on September 11, 2018, and unsealed on September 18, 2018, upon the arrests of the defendants. Charged in the indictment are:
Kevin B. Merrill, age 53, of Towson, Maryland;
Jay B. Ledford, age 54, of Westlake, Texas and Las Vegas, Nevada; and
Cameron R. Jezierski, age 28, of Fort Worth, Texas.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office. A related enforcement action and complaint was announced by the U.S. Securities and Exchange Commission Co-Director of Enforcement Stephanie Avakian.
“Federal prosecutors, FBI agents, and our SEC partners together interrupted an ongoing fraud scheme, with the potential to victimize even more people. According to the indictment, the defendants lured investors through an elaborate web of lies, duping them into paying millions of dollars into this Ponzi scheme,” said U.S. Attorney Robert K. Hur. “Most of these investors are just learning that they have been victimized. The effects of this kind of fraud can be devastating. We urge anyone who thinks they may be a victim to contact the FBI at [email protected].”
“The FBI takes our responsibility to investigate and pursue those who commit fraud for personal gain very seriously,” said Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Division. “We will continue working with our law enforcement partners to hold accountable those who use illegal means and criminal behavior to take advantage of others. We are committed to protecting investors from the illegal and deceptive practices Mr. Merrill and Ledford used to defraud investors out of their hard earned money and savings.”
According to the fourteen-count indictment, beginning in January 2013, the defendants perpetrated a Ponzi scheme to defraud investors of more than $364 million. The scheme was revealed with the arrests and unsealing of the indictment. Specifically, the indictment alleges that Merrill and Ledford invited investors to join them in purchasing consumer debt portfolios. “Consumer debt portfolios” are defaulted consumer debts to banks/credit card issuers, student loan lenders, and car/truck financers which are sold in batches called “portfolios” to third parties which attempt to collect on the debts. The defendants falsely represented to investors that they would use the investors’ money to buy consumer debt portfolios and make money for them by (1) collecting the payments that people made on their debts or (2) selling the portfolios for a profit to third party debt buyers--in a practice called “flipping.” According to the related complaint filed by the SEC, the victim investors included small business owners, restauranteurs, construction contractors, retirees, doctors, lawyers, accountants, bankers, talent agents, professional athletes, and financial advisors, located in Maryland, Washington, D.C., Northern Virginia, Las Vegas, Texas, and elsewhere.
The indictment alleges that in order to induce investors to participate, the defendants falsely represented who they were buying the debt portfolios from and how much they were paying for the portfolios; whether they were investing their own funds, and their track record of success. At times, according to the indictment, there was no underlying debt portfolio purchased with the investors’ money. To conceal the truth, the defendants created imposter companies with names similar to actual consumer debt sellers or brokers and opened bank accounts in the names of those imposter companies. In addition, to lend credibility to the transactions, the defendants created false portfolio overviews, sales agreements which used the names and forged signatures of actual employees of the sellers, created false collections reports, and falsified bank wire transfer records and bank statements.
Further, the indictment alleges that the defendants falsely represented that the monies they paid to investors were “proceeds” from collections and/or flipping debt portfolios, when in fact, the proceeds were paid from funds provided by other investors. The indictment alleges that Merrill, Ledford, and Jezierski personally enriched themselves and concealed their diversion of $73 million of investors’ funds to purchase and renovate high end homes in Maryland, Texas, Nevada, and Florida, purchase luxury automobiles, jewelry, boats, and a share in a jet plane, gamble $25 million at casinos, and support a lavish lifestyle.
The indictment seeks to forfeit nine properties, 26 luxury cars, one boat, interest in an aircraft, a life insurance policy, seven and nine carat diamond rings, and a 23 carat diamond bracelet, which were allegedly purchased with proceeds of the scheme to defraud.
If convicted, Merrill, Ledford, and Jezierski each face a maximum of 20 years in prison for the wire fraud conspiracy and for each of five counts of wire fraud. Merrill and Ledford each also face 20 years in prison for an additional two counts of wire fraud, as well as 20 years in prison for a money laundering conspiracy, and for each of four counts of money laundering. Finally, Merrill and Ledford face a mandatory two years in prison, consecutive to any other sentence, for identity theft. The defendants also face possible fines of $250,000, or twice the gross gain, for the wire fraud conspiracy and for each count of wire fraud and money laundering. Merrill and Ledford face an additional fine of $500,000, or twice the value of the property, for the money laundering conspiracy.
The SEC has filed a parallel civil complaint in this matter.
If you believe you may have been a victim, or have information concerning these charges, please email [email protected] and complete a brief questionnaire. Your responses are voluntary. You may be contacted by the FBI
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Merrill and Ledford each had an initial appearance in U.S. District Court in Baltimore and Las Vegas, respectively, on September 18, 2018, and were ordered to be detained. Jezierski also had his initial appearance in Las Vegas and was released under the supervision of U.S. Pretrial Services. Merrill is scheduled to have a detention hearing on Thursday, September 20th at 3:30 p.m. Jezierski is expected to have his initial appearance in Maryland on September 24, 2018, and Ledford is expected to be brought to Maryland for a court appearance at a later date.
United States Attorney Robert K. Hur commended the FBI in Baltimore, Dallas, Las Vegas and Tampa, and the Federal Housing Finance Agency, Office of the Inspector General for their work in this investigation. Mr. Hur thanked Assistant U.S. Attorneys Joyce K. McDonald and Martin J. Clarke, who are prosecuting the criminal case.
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Alorton Village Administrator Pleads Guilty to Making False Statement to the Southern Illinois Public Corruption Task ForceRead the Press Release
Lamar Gentry, age 71, of East St. Louis, Illinois, pled guilty today in federal district court to making a false statement to the Southern Illinois Public Corruption Task Force.
Exactly one year ago, on September 19, 2017, the Task Force first became involved in the investigation that would eventually lead to Gentry’s arrest. At the time, police officers in St. Louis were investigating reports that gun shots had been fired from a white Chevrolet Impala. When a car matching the vehicle’s description was spotted, officers initiated a traffic stop. Two occupants jumped out of the vehicle and fled on foot. The license plates on the vehicle were municipal plates assigned to Gentry, who was then and continues to be the administrator for the Village of Alorton.
During an interview on October 13, 2017, Gentry told federal agents that the white Impala had previously been sold and partially paid for by the purchaser, when in fact he knew that the vehicle had not been partially paid for, there was no completed bill of sale and the vehicle had not been sold.
Sentencing is scheduled for December 18, 2018. The offense carries a maximum sentence of up to 20 years of imprisonment, three years of supervised release, and a fine of up to $250,000.
The investigation was conducted by the Southern Illinois Public Corruption Task Force, which consists of agents with the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and the Illinois State Police. The prosecution is being handled by Assistant U.S. Attorney Norman R. Smith. Citizens are encouraged to report suspicions of public corruption to the Southern Illinois Public Corruption Task Force Tip Line at (618) 589-7373.
Alien Indicted on Illegal Reentry ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned an indictment charging EZEQUIEL CUAUHTEMOC MACEDO-MAGADAN, age 48, of Mexico, with illegal reentry.
If convicted of Illegal Reentry of a Deported Alien, MACEDO-MAGADAN, previously deported four times and found in Wake County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by ICE’s Enforcement and Removal Operations.
Tuesday 18 September 2018
Worcester Man Sentenced for Fraud and Identity TheftRead the Press Release
BOSTON – A Worcester man was sentenced today in federal court in Worcester for fraud and identity theft charges arising from unlawfully using the identity of a disabled Medicare beneficiary for 17 years.
Jose Agosto, 51, was sentenced by U.S. District Court Judge Timothy S. Hillman to 37 months in prison, three years of supervised release, and ordered to pay $11,036 in restitution. In January 2018, Agosto pleaded guilty to four counts of wire fraud, four counts of misusing a Social Security number, three counts of making false statements relating to health care services, and five counts of aggravated identity theft. Agosto was charged on Aug. 9, 2017, and has been in custody since.
Agosto admitted that he began living under the name of another individual in order to avoid the consequences of an arrest warrant, and that he used the victim’s name and other personal identifying information to obtain replacement Social Security cards, driver’s licenses and bank accounts. Agosto also sought medical treatment under the victim’s name and in doing so caused medical providers to submit more than $148,000 in claims to Medicare, despite the fact that Agosto was not a Medicare beneficiary. In addition, Agosto executed promissory notes under the victim’s name and then defaulted on those notes. By using the victim’s identity, Agosto threatened the victim’s continued receipt of Social Security and Medicare benefits as well as the victim’s credit rating.
Agosto also left threatening voice mails in an effort to intimidate the victim and his family. In these voice mails, Agosto threatened to kill various members of the victim’s family and warned of a “massacre.” One such statement made by Agosto was: “I’m going to start killing all of your family one-by-one. I’ll start killing your mother, I’ll kill your sister, and then the last one’s going to be you.”
United States Attorney Andrew E. Lelling; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division; Philip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; and Christina Scaringi, Special Agent in Charge of the U.S Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office, made the announcement today. The U.S. Department of Agriculture, Office of Inspector General, and the Massachusetts Bureau of Special Investigations provided assistance with the investigation. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office prosecuted the case.
Woman Pleads Guilty to Possessing RicinRead the Press Release
NORFOLK, Va. – A South Carolina woman pleaded guilty today to the unregistered possession of ricin, a highly dangerous toxin.
According to court documents, Virginia Beach police officers executing a search warrant in March 2016 found a number of chemicals, packages of castor beans, and multiple firearms, one with an obliterated serial number, in a storage unit rented by Debbie Siers-Hill, 63, of Summerville, who was then living in Virginia Beach. Tests of the chemicals showed that a syringe and a double-wrapped container found in the storage unit held ricin, a toxin derived from castor beans with no known antidote.
Siers-Hill pleaded guilty to possessing ricin, a listed “select agent” subject to Department of Health and Human Services registration requirements with which she did not comply. She faces a maximum penalty of five years in prison when sentenced on Jan. 14, 2019. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, and James A. Cervera, Chief of Virginia Beach Police, made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the plea. Assistant U.S. Attorneys Alan M. Salsbury and Andrew C. Bosse are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-62.
Wichita Man Pleads Guilty to Robbing Liquor StoreRead the Press Release
WICHITA, KAN. – A Wichita man pleaded guilty Tuesday to robbing a liquor store, U.S. Attorney Stephen McAllister said.
Jamaryus Moore, 19, Wichita, Kan., pleaded guilty to one count of robbing a commercial business. In his plea, he admitted he and another man robbed F & K Liquor at 902 S. Woodlawn in Wichita. During the robbery, a clerk shot co-defendant Raquan Hill, 18, Wichita. Hill was arrested at the scene. Moore was arrested later that day at work.
Sentencing is set for Dec. 10. Moore faces a penalty up to 20 years in federal prison and a fine up to $250,000. Co-defendant Hill has scheduled a change of plea hearing for Sept. 24.
McAllister commended the FBI Safe Streets Task Force, the Wichita Police Department and Assistant U.S. Attorney Aaron Smith for their work on the case.
United States Attorney announces efforts to increase violent crime prosecutions in AcadianaRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced today that local efforts to increase violent crime prosecutions in the Acadiana area are having a substantial impact.
Mr. Joseph’s focus on violent crime is part of the Department of Justice’s ongoing effort to increase targeted prosecutions of violent crime through the Project Safe Neighborhoods (PSN) program. In the past year, the U.S. Attorney’s Office for the Western District of Louisiana has prosecuted more than 200 defendants throughout the district, approximately 78 of which are in the Acadiana area, for firearm related offenses, including felons and drug dealers in possession of firearms. These prosecutions represent approximately three times the number of such cases than have been brought in previous years.
The PSN program is a collaborative effort led by the U.S. Attorney’s Office involving local, state and federal law enforcement. In the Acadiana area, participants include the ATF, FBI, DEA, Homeland Security Investigations, U.S. Marshals Service, U.S. Postal Inspection Service, Lafayette Parish District Attorney’s Office, Lafayette Parish Sheriff’s Office, Acadia Parish Sheriff’s Office, Iberia Parish Sheriff’s Office, Lafayette Police Department, Crowley Police Department, officers with the Lafayette City Marshal’s Office. The program is successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safe for everyone. United States Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority and has directed all U.S. Attorney’s Offices to develop a crime reduction strategy involving PSN.
“Violent crime involving firearms has become a worsening problem in Acadiana,” Joseph stated. ”This trend must end. We have been working with partner agencies to provide a targeted approached to reducing firearm-related violence by bringing federal charges against those felons and drug dealers most likely to cause violence in their communities. We want to spread the word that the full weight of the federal criminal justice system is committed to prosecuting those who spread violence in our communities. They will be stopped.”
Included in our efforts, and in addition to the work of the ATF, is the FBI Safe Streets Task Force, a program that works hand in glove with the U.S. Attorney’s Project Safe Neighborhood Program. To combat violent crime both in Lafayette and across the state, the FBI New Orleans Field Office has formed several gang task forces specifically to identify and eradicate drug dealers and violent offenders from Louisiana streets and neighborhoods. In concert with our Law Enforcement partners, the FBI utilizes intelligence-based analysis to strategically place gang task forces and federal resources throughout the state, which have been very effective.
These include:
South Central Louisiana Gang Task Force – Lafayette
Northwest Louisiana Violent Crime Task Force - Shreveport
Capital Area Gang Task – Baton Rouge
Central Louisiana Gang Task Force – Alexandria / Monroe
New Orleans Gang Task Force – New Orleans
These task forces pursue violent gangs through sustained, proactive, coordinated investigations to obtain prosecutions on violations such as racketeering, drug conspiracy, and firearms violations. The Safe Streets Task Force concept expands cooperation and communication among federal, state, and local law enforcement agencies, increasing productivity and avoiding duplication of investigative efforts.
One of the key components of a Safe Streets Task Force is being able to combine short term, street level enforcement activity coupled with investigative tools and resources to root out and prosecute the entire gang.
Utilizing these best practices and through a number of drug and gang related investigations, the FBI’s Safe Street Task Force, in conjunction with federal, state, and local law enforcement inundated Lafayette streets and neighborhoods to stop the violence, apprehend gang members, and pursue swift justice for those responsible.
In the past few months, the FBI’s Lafayette Safe Streets Task Force has accounted for federal charges against 15 gang members at various levels within drug trafficking organizations. These include numerous narcotics and firearms charges, including over 150 pounds of methamphetamine, six firearms, and substantial quantities and heroin and cocaine.
The Western District of Louisiana consists of 42 of Louisiana’s 64 parishes and encompasses two-thirds of the State of Louisiana. This area covers the cities of Alexandria, Lafayette, Lake Charles, Monroe and Shreveport.
Two Wyoming County Men Sentenced for Roles in Insurance Fraud by Arson SchemeRead the Press Release
BLUEFIELD, W.Va. –Two Wyoming County men were sentenced today in federal court for their respective roles in a scheme to commit insurance fraud by arson, announced United States Attorney Michael B. Stuart. Dudley Bledsoe, 63, of Hanover, was sentenced to 24 months in prison and ordered to pay $294,085.07 in restitution. Bledsoe previously pled guilty to an unlawful monetary transaction charge. James Keith Browning, 54, also of Hanover, was sentenced to 50 months’ imprisonment and ordered to pay restitution in the amount of $211,553.50. Browning previously pled guilty to arson to commit wire fraud. Stuart commended the West Virginia Insurance Commission, the United States Postal Inspection Service, and the West Virginia State Police for their investigation.
“Greed leads to reckless, dangerous behavior,” said United States Attorney Mike Stuart. “Crimes that endanger lives and property will be prosecuted every day of the week by this United States Attorney. “
In the spring of 2012, Bledsoe, with the assistance of James Edward Lester, also known as “Punkin,” and others, purchased a house in Matoaka, Mercer County. The purchase price was approximately $38,000. They insured the property for over $300,000 and set fire to the house in December of 2012 using cardboard and unscented candle oil. Bledsoe, with the help of others, then filed false claims for the house and its contents. Bledsoe collected the proceeds and divided the proceeds with others involved in the scheme.
In the spring of 2013, Browning, and James “Punkin” Lester devised a scheme to purchase a house, place it in Browning’s name, obtain insurance on it and burn it to collect the proceeds. The property was located at 9068 Interstate Highway in Ikes Fork, West Virginia. Sometime during the week of August 12, 2013, Lester, Bledsoe and Browning manufactured an alibi they could use for when the house was burned. After the creation of the plan for the alibi, Bledsoe and Browning went to the house in Bledsoe’s vehicle to prepare the house to be burned. The house burned on August 16, 2013, while Browning and Lester were at the West Virginia State Fair. Browning then filed a fraudulent claim with the insurance company for the loss of the house and for items purportedly contained in the house. Ultimately, Browning received $100,000 from the insurance company for the false claim. Browning then divided the proceeds with Bledsoe and Lester.
Four other defendants involved in the scheme were convicted following a five-day jury trial in Charleston. The jury found Windel Lester, 67, his ex-wife Georgetta Lester Kenney, 42, and Windel Lester’s sons, James “Punkin” Lester, 48, and Greg Lester, 41, guilty of various charges related to the arson and insurance fraud scheme. Their sentencing hearings are scheduled for December 20, 2018.
Assistant United States Attorneys R. Gregory McVey and Philip H. Wright handled the prosecution. Senior District Court Judge David A. Faber handed down the sentences.
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Texas Man Sentenced to 8 Years in Prison for Transporting Heroin to Clairton for DistributionRead the Press Release
PITTSBURGH, PA. - A resident of Texas has been sentenced in federal court to 96 months’ imprisonment, followed by five years’ supervised release on his conviction of conspiring to distribute narcotics, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Cameron Ranson, 43.
According to information presented to the court at the time he entered a guilty plea, Ranson, traveled from Texas to Clairton, Pennsylvania, for the purpose of distributing quantities of heroin to his codefendant, Skyler Carter, and others, and is responsible for the distribution of between 20 and 40 grams of heroin. Ranson is the 11th of 21 defendants charged in the conspiracy to be sentenced.
Assistant United States Attorney Carolyn Bloch prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Tahlequah Man Sentenced to 21 Months for Possession of Counterfeit ObligationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Nicholas Ryan Renfro, age 25, of Tahlequah, Oklahoma, was sentenced to 21 months imprisonment and 3 years supervised release for Possession Of A Counterfeit Obligation Of The United States, in violation of Title 18, United States Code, Section 474(a). The charges arose from an investigation by the Tahlequah Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Secret Service.
The Indictment alleged that on January 10, 2018, in the Eastern District of Oklahoma, the Defendant knowingly had in his possession and custody, with intent to sell or otherwise use, a falsely made and counterfeited one-hundred-dollar Federal Reserve Note made after the similitude of obligations issued under the authority of the United States.
“The circulation of counterfeit U.S. Currency in the Tahlequah area has been a problem for local businesses and residents for some time. Because of the diligent efforts of the Tahlequah Police Department, Secret Service, and ATF, members of this office were able to successfully prosecute Renfro. This source of counterfeit money is no longer contributing to the problem,” United States Attorney Brian J. Kuester said. “I continue to urge everyone accepting cash for goods or services to pay close attention to what they are receiving. If you have accepted a bill and have reason to believe it is a counterfeit, contact your local law enforcement agency. Receiving timely information is key to solving virtually every crime, including counterfeiting.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Superseding Indictment Filed Against Man Charged for Attempted Manslaughter of a U.S. Airforce Airman on Military Base in JapanRead the Press Release
A federal grand jury in Little Rock, Arkansas, returned a seven-count superseding indictment against a man who was residing on the Misawa Air Base, a military base in Japan, charging him with multiple counts relating to the assault of three U.S. Air Force airmen. The federal grand jury also returned a two-count indictment against his son, charging him with two counts relating to his role in the assault.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Cody Hiland of the Eastern District of Arkansas and Colonel Kirk B. Stabler of the U.S. Air Force Office of Special Investigations made the announcement.
Rodrigo Pineda Gomez, 44, who was residing in Japan, is charged with one count of attempted voluntary manslaughter, one count of assault with a dangerous weapon, three counts of assault by striking, beating, or wounding, one count of resisting a federal officer, and one count of making a false statement to law enforcement. Miguel Gomez, 21, is charged with one count of resisting a federal officer and one count of assault by striking, beating, or wounding. The defendants had their initial court appearance earlier today before Magistrate Judge Patricia S. Harris in the Eastern District of Arkansas.
The superseding indictment, which was returned on Aug. 7, alleges that on Dec. 31, 2016, on Misawa Air Base in Japan, the defendants, Rodrigo Gomez and his son, Miguel Gomez, assaulted three U.S. Air Force airmen. The superseding indictment alleges that defendant Rodrigo Gomez attempted to kill one of the airmen, resisted arrest after law enforcement arrived, and then later made a false statement about the incident. Defendant Miguel Gomez assaulted one of the airmen and also resisted arrest after law enforcement arrived at the scene. At the time of the assault, defendant Rodrigo Gomez was the dependent spouse and Miguel Gomez the son of an active duty service member assigned to the base. Their last known U.S. address is alleged to be Jacksonville, Arkansas.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by the U.S. Air Force Office of Special Investigations. The prosecution is being handled by Trial Attorney Frank Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Stacy Williams of the Eastern District of Arkansas.