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Tuesday 4 September 2018
Prior Sex Offender Sentenced to 10 Years for Child Sexual ObscenityRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man with a prior federal felony conviction for possessing child pornography was sentenced in federal court today for printing obscene images from a computer at a local public library.
David R. Buie, 63, of Kansas City, was sentenced by U.S. District Judge Stephen R. Bough to 10 years and one month in federal prison without parole. The court also sentenced Buie to a lifetime of supervised release following incarceration. The sentence in this case must be served consecutively to a four-month sentence imposed for violating the terms of his supervised release in an earlier, unrelated federal conviction for possessing child pornography.
On May 8, 2018, Buie was found guilty at trial of one count of possessing obscene images of the sexual abuse of children. Evidence introduced during the trial indicated that Buie printed images of child obscenity from a computer at a public library. On July 11, 2017, Buie printed about 50 pages from a computer he was using at the Mid-Continent Public Library at 9253 Blue Ridge Blvd., Kansas City, Mo. Buie didn’t realize that the printer stopped because it was out of toner, so his print jobs were interrupted and only about half of his pages were printed. After Buie left the library, the toner in the printer was changed and the remaining pages of his original print job were printed. As one of the librarians was cleaning up, she removed the remaining pages and observed they were color copies depicting minors from a graphic sex comic.
Library staff contacted the Kansas City, Mo., Police Department to make a report. Buie was identified because his library card was associated with the print job. Security cameras within the library showed him using a computer at the time of the printing.
The U.S. Probation Office was also contacted, because Buie was on supervised release for a prior federal felony conviction for possessing child pornography. When probation officers searched Buie’s residence, they found the images of child obscenity that Buie had printed at the library. Buie told investigators that he visited various public libraries about once a week to view child obscenity anime. Buie said he often printed the images on the library’s printer.
According to court documents, Buie violated the terms of his supervised release on several occasions prior to his criminal offense at the library by possessing incest-like storybooks, “barely legal” pornography and failure to register as a sex offender. While on supervised release, Buie was provided numerous opportunities to avail himself of treatment related to his sexual attraction to minor females, including individual therapy, group therapy, re-directive therapy, and inpatient therapy. He made no progress in therapy and was discharged.
This case was prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the Kansas City, Mo., Police Department and the U.S. Probation Office.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Portland Man Sentenced to Seven Years in Federal Prison for Drg and Firearm OffensesRead the Press Release
PORTLAND, Ore. – Christopher James Fleet, 23, of Portland, was sentenced today to 84 months in federal prison and five years of supervised release for possessing distribution quantities of methamphetamine and two firearms when arrested by Multnomah County Sheriff’s Office (MCSO) deputies in August 2017.
On August 23, 2017, deputies from the MCSO Special Investigation Unit were conducting surveillance at a known drug and gang house in Portland. They observed a vehicle parked in front of the house they believed was connected with Fleet, a drug dealer with an outstanding arrest warrant. Upon leaving the house and attempting to drive away, deputies blocked Fleet using unmarked vehicles and approached him wearing marked law enforcement raid vests. After initially refusing to comply with the deputy’s commands to raise his hands and failing to find an escape route, Fleet surrendered.
During the arrest, deputies found a Kel Tec 9mm firearm and distribution quantities of heroin and methamphetamine on Fleet’s person. They also found a locked backpack in Fleet’s vehicle. The backpack was later found to contain .40 caliber Sig Sauer pistol, drug records, and a digital scale.
Fleet previously pleaded guilty to one count of possession with intent to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking offense on May 1, 2018.
This case was investigated by the MCSO Special Investigation Unit and prosecuted by Leah K. Bolstad, Assistant U.S. Attorney for the District of Oregon.
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.
Operator of Loxahatchee Facility Sentenced for Inhumane Slaughter PracticesRead the Press Release
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Larry S. Hortert, Regional Director, United States Department of Agriculture (USDA), Food Safety & Inspection Service (FSIS), announced that Victor H. Gonzalez, 53, of Loxahatchee, Florida, was sentenced on August 27, 2018, for his involvement in the inhumane slaughter of swine and the sale of swine meat for human consumption, in violation of the Humane Methods of Slaughter Act (HMSA), Title 71, United States Code, Section 1902(a) and the Federal Meat Inspection Act (FMIA), as amended, Title 21, United States Code, Section 610(b).
Gonzalez, who had previously pled guilty, was sentenced by U.S. District Judge Donald M. Middlebrooks, to three years of probation and a fine of $75,000. Judge Middlebrooks also barred Gonzalez from any activities connected with the slaughtering of meat products for any commercial sale or use for the term of probation. In imposing sentence, the Court exercised its discretion to vary upward and imposed a fine almost 10 times the guideline range for the economically driven offense.
According to the court record, including a Joint Factual Statement, Gonzalez was the president of El Milagro Nursery, Inc. (“Milagro”), a company with its principal place of business in Loxahatchee, Florida. Gonzalez was responsible for the day-to-day management and oversight of its activities, and engaged in the slaughtering, processing, handling, storing, and selling of meat and meat food products in commerce, for human consumption, including swine.
On December 17, 2016, federal officers conducted a surveillance and inspection visit at the Milagro facility. Employees were observed engaged in the slaughter and processing of swine for customers. The premises lacked proper, operable equipment to stun or otherwise render the animals insensible to pain, as required by law. The business practices at Milagro, as directed by Gonzalez, were not humane.
The HMSA established as the public policy of the United States, that the slaughtering or handling for slaughter of livestock, including swine, may only be carried out by humane methods. The law requires that such animals be rendered insensible to pain by one of the methods described in the law, prior to the animal being shackled, hoisted, thrown, cast, or cut. Title 7, United States Code, Sections 1901-1902(a).
Mr. Greenberg commended the investigative efforts of the USDA FSIS, Office of Program Evaluation, Enforcement and Review, Compliance & Investigations Division and thanked the Palm Beach County Agricultural Unit for their assistance. This matter was prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
New Jersey Woman Sentenced to Prison for Heroin Distribution SchemeRead the Press Release
PITTSBURGH, PA. - A New Jersey resident has been sentenced in federal court to two years in prison on her conviction of violating federal drug laws, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Carolyn Spann, age 53, of Paterson, New Jersey.
According to information presented to the court, that from 2013 to September 2017, Spann conspired with others to possess with intent to distribute and distribute 100 grams or more of heroin.
Assistant United States Attorney Cindy K. Chung prosecuted this case on behalf of the government.
The Federal Bureau of Investigation along with the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police, conducted the investigation leading to the successful prosecution of Spann. 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.
Moultrie Woman Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
ALBANY: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Maria Quijano, age 33, of Moultrie, Georgia, pled guilty to Possession with Intent to Distribute Methamphetamine before District Court Judge Leslie Abrams in Albany, Georgia on September 4, 2018. This plea subjects Ms. Quijano to a mandatory minimum sentence of 10 years in federal prison, up to a maximum sentence of life imprisonment, a maximum fine of $10 million, or both.
In her plea agreement, Ms. Quijano admitted that on September 24, 2016, Georgia State Patrol (GSP) Troopers were conducting an authorized child restraint checkpoint in Grady County. Ms. Quijano stopped at the checkpoint, and a GSP trooper noticed the smell of burnt marijuana coming from her car. A search of the car revealed 1 large bag of methamphetamine, 18 small baggies of methamphetamine, a Jimenez Arms 9mm handgun, a digital scale, and a small quantity of marijuana. Lab testing showed the methamphetamine weighed 163 grams with a purity of 79%.
Ms. Quijano was transported to the Sheriff’s office, where she waived her Miranda rights and spoke to the police. Ms. Quijano admitted that she was working off a debt to her drug suppliers by picking up drugs in Florida and Texas for them, and she had been doing so for 2-3 months. Ms. Quijano explained that she would transfer a portion of the methamphetamine to a supplier, and that she was responsible for selling the rest. Ms. Quijano admitted that the gun belonged to her.
The case was investigated by the Grady County Sheriff’s Department, the Georgia State Patrol, and the Georgia Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Leah E. McEwen.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Mission Residents Indicted on Methamphetamine and Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that two Mission, South Dakota, individuals have been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance, Possession of a Firearm During a Drug Trafficking Crime, Possession with Intent to Distribute a Controlled Substance, and Possession of a Firearm by a Prohibited Person.
Walter Willard Wright, age 36, and Micole Lynn Menard, age 36, were indicted on August 13, 2018. They appeared before U.S. Magistrate Judge Mark A. Moreno on August 31, 2018, and they both pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $10,000,000 fine, up to lifetime of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that on between October 1, 2016, and January 31, 2017, Wright and Menard knowingly and intentionally conspired with others to distribute and possess with the intent to distribute methamphetamine, a Schedule II controlled substance, in South Dakota. The Indictment further alleges that on January 18, 2017, Wright and Menard, being unlawful users of and addicted to a controlled substance, did knowingly possess multiple firearms. The charges are merely accusations and Wright and Menard are presumed innocent until and unless proven guilty.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
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.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Wright was released on bond, and Menard was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mexican National Man Sentenced for Immigration CrimeRead the Press Release
Defendant had two prior felony convictions and three prior deportations
HUNTINGTON, W.Va. – A Mexican national man was sentenced to “time served” for the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. Eduardo Martinez-Campeano, 47, has been in federal custody for nearly five months. Martinez-Campeano is also subject to deportation proceedings. Stuart commended the investigative efforts of the U.S. Immigration and Customs Enforcement.
“Two prior felony convictions and three prior deportations,” said United States Attorney Mike Stuart. “Illegal aliens pose a tremendous danger to our citizens. We prosecute 100 percent of these cases and will continue to do so. My advice to those who want to join in the greatness of this nation – GET IN LINE AND WAIT YOUR TURN.”
On April 10, 2018, Martinez-Campeano was traced to a hotel in Huntington, West Virginia by members of ICE after receiving a tip that defendant was in the country illegally and working at a restaurant in Barboursville, West Virginia. ICE agents approached Martinez-Campeano and he surrendered to them. Agents promptly confirmed that Martinez-Campeano was not in the United States legally, and took him into federal custody.
Martinez-Campeano fingerprints matched him to a 2007 Missouri felony Forgery conviction. After his felony sentence in Missouri was discharged, Martinez-Campeano was deported from the United States. Martinez-Campeano reentered the United States and was removed from the United States for a second time in 2010. Sometime afterword, Martinez-Campeano reentered the United States and was captured in Texas. He was convicted of the federal criminal offense of Reentry of a Removed Alien in 2012. Once again, defendant Martinez-Campeano was deported from the United States. Martinez-Campeano illegally reentered the United States for a fourth time prior to his capture in 2018. Martinez-Campeano admitted to ICE agents that he was a Mexican citizen subject to deportation proceedings. He entered a guilty plea on June 4, 2018.
Assistant United States Attorney Erik S. Goes is responsible for the prosecution. United States District Judge Robert C. Chambers presided over the hearing.
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Maryland Man Sentenced to Prison in Bank Scam That Defrauded Victims Out of over $560,000Read the Press Release
A Maryland resident was sentenced today to 33 months in prison for defrauding victims into paying for falsified bank documents from a bank in the Dominican Republic.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez for the Middle District of Florida, and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office made the announcement.
Mohammed Mohajer, 63, of Silver Spring, Maryland, previously pleaded guilty in the U.S. District Court for the Middle District of Florida to one count of wire fraud. U.S. District Judge Sheri Polster Chappell presided over the sentencing and also ordered Mohajer to serve three years of supervised release following his prison sentence, forfeit $194,000, and pay restitution in the amount of $565,000 to two victims.
According to the defendant’s admissions, Mohajer falsely told victims that he had a relationship with a bank in the Dominican Republic. He represented to the victims that in exchange for an up-front payment, he could help them access credit at the bank, and that the bank would issue SWIFT interbank messages to the victims’ designated banks showing that the victims had access to those funds. In fact, Mohajer had no relationship with the Dominican bank and provided the victims with fake documents that falsely showed that their promised bank documentation had been transmitted. In total, Mohajer defrauded the victims out of $565,000.
The investigation was conducted by the FBI. Trial Attorney Blake Goebel of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jesus Casas of the Middle District of Florida prosecuted the case.
If you believe that you have been a victim of this or a similar fraud scheme, please contact the FBI Washington Field Office at (202) 278-2000.
Man Pleads Guilty to Robbing Broken Arrow QuikTripRead the Press Release
TULSA, Okla.— United States Attorney Trent Shores announced that Devon Deshon Thomas, 23, of Tulsa, pleaded guilty Tuesday to robbery of a Broken Arrow QuikTrip using coercion through force and fear.
The United States prosecuted Thomas under the Hobbs Act, which specifically targets violent criminals who negatively impact interstate commerce in any way. Thomas entered the plea to the entire indictment and is scheduled for sentencing on December 5, 2018.
Thomas admitted to robbing a Broken Arrow QuikTrip, located at 3502 West Kenosha Street, on May 30, 2018. Shortly after 3:30 a.m., two masked subjects brandishing what appeared to be firearms forced the QuikTrip attendant to open the cash register. The two stole nearly $300, then fled from the store in a four-door sedan with a damaged front-end.
U.S. Attorney Trent Shores stated, “In a collaborative effort to keep our communities safe, my office will consistently prosecute violent offenders as part of the Project Safe Neighborhoods initiative, a program reenergized last year due to its success in curbing violent crime. My office continues to work closely with law enforcement in the Northern District of Oklahoma to bring these criminals to justice.”
Through the course of the investigation, the Broken Arrow Police Department, in conjunction with the Federal Bureau of Investigation, linked Thomas to the vehicle used in the crime and identified him as one of the two subjects involved. Investigators then executed a search warrant and discovered two black air-propelled handguns that resembled actual firearms, as well as the clothes and mask matching descriptions previously provided to police. The two suspects were further implicated in surveillance video from a nearby Wal-Mart, where they could be seen shoplifting the air-propelled handguns shortly before the crime.
This prosecution was part of the Department of Justice’s Project Safe Neighborhoods initiative and resulted from a joint investigation conducted by the Broken Arrow Police Department, the Federal Bureau of Investigation, and the U.S. Marshals Service. Assistant U.S. Attorney Ryan M. Roberts prosecuted the case.
Lower Brule Man Sentenced for Domestic AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man convicted of Domestic Assault by an Habitual Offender was sentenced on September 4, 2018, by U.S. District Judge Roberto A. Lange.
Cody Joseph Crazy Bull, age 27, was sentenced to 60 months in federal prison, 3 years of Supervised Release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Crazy Bull was indicted by a federal grand jury on February 14, 2018. He pled guilty on June 12, 2018.
The conviction stems from an incident between October 14, 2017, and October 17, 2017, when Crazy Bull and his dating partner got into an argument and Crazy Bull verbally and physically assaulted her by briefly strangling her, grabbing and twisting her arm, and pulling chunks of her hair out.
At the time of the assault, Crazy Bull had a final conviction on at least two separate prior occasions, for offenses that would have been, if subject to Federal jurisdiction, an assault against a spouse and intimate partner.
This case was investigated by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Crazy Bull was immediately turned over to the custody of the U.S. Marshals Service.
Last of Nearly Two Dozen Defendants Sentenced to Federal Prison for His Role in a Drug Trafficking ConspiracyRead the Press Release
BLUEFIELD, W.Va. – The last of nearly two dozen defendants was sentenced today to federal prison for his role in a drug trafficking organization, announced United States Attorney Mike Stuart. Shaun Givens, 40, of Beckley, was sentenced to 5 years in federal prison. Stuart commended the cooperative investigative efforts of several agencies, led by the Federal Bureau of Investigation and the Raleigh County Drug and Violent Crime Task Force. The Drug Enforcement Administration, the Beckley Police Department, the Raleigh County Sheriff’s Department, the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service also provided assistance throughout the investigation.
“The last of nearly two dozen drug thugs that no longer comprise a drug trafficking organization,” said United States Attorney Mike Stuart. “Out of business and behind bars – exactly what we want for every drug dealer and poison peddler in West Virginia. Great job by my prosecutor and our federal, state and local law enforcement partners.”
Shaun Givens previously admitted at his plea hearing that between August 2016 and June 28, 2017, he participated in a drug trafficking organization that distributed cocaine and heroin in and around Raleigh County. Givens admitted that during this time period, he received in excess of 500 grams of cocaine from other members of the drug trafficking organization that he distributed in the southern district of West Virginia. Givens also admitted that on June 28, 2017, police officers executed a search warrant at his residence in Beckley. During the execution of the search warrant, officers found over seven grams of a mixture containing heroin and fentanyl, a small amount of cocaine base, seven firearms, and $1,127 in cash that defendant admitted were the proceeds of his illegal drug trafficking.
Assistant United States Attorney Timothy D. Boggess handled the prosecution. Senior United States District Judge David A. Faber imposed the sentence.
All of the other defendants in this case have already been sentenced. Velarian Carter of Beckley was recently sentenced to 240 months, or 20 years in federal prison for his participation in this drug trafficking organization. His sentence was ordered to run consecutively to a 20 year sentence Mr. Carter is already serving on unrelated drug charges. Detria Carter of Beckley, the sister of Velarian Carter, was recently sentenced to 151 months, or 12 years and seven months in federal prison. Cheyenne Fragale and Macon Fragale, brothers from Boomer in Fayette County, were sentenced to 12 years, and 16 years and 8 months in prison, respectively. Rory White of Montgomery was sentenced to 125 months in federal prison. Tiffany Ramsey, also from Boomer, was sentenced to 46 months in federal prison. Dominic Copney, of Beckley, has been sentenced to 2 years in federal prison. Donald Scalise, of Montgomery, was sentenced to 3 years in federal prison for conspiring to distribute oxycodone.
On July 10 and July 11, 2018, Judge David A. Faber sentenced Esau Burnett, of Beckley, to 66 months in federal prison, Shawn Akiem Anderson, of Mount Hope, to 108 months in federal prison, and Shaun Jones, also of Beckley, to 120 months in federal prison. He also sentenced to Jonathan V. Moore, and Charles Hill, both of Beckley to 97 months and 60 months, respectively. Corey Larkin, of Beckley, was previously sentenced to 188 months in federal prison after he was determined to be a career offender.
David Shaun Coleman of Boomer was previously sentenced to 60 months in federal prison, while Rashaun Carter of Beckley and Derrick Staples of Charleston were each sentenced to 121 months in federal prison. Jonathan O. Brockman, the brother of George E. Brockman, II, of Kimberly, Fayette County, was sentenced to nine years in federal prison. Coleman, Carter, Staples and Brockman were also sentenced by Senior Judge David A. Faber.
On August 13, 2018, Judge David A. Faber sentenced James Rodney Staples, of Woodbridge, VA, to 151 in federal prison, Karl Funderburk, of Teays Valley, to 60 months in federal prison, and George E. Brockman, II, of Montgomery, to 108 months in federal prison.
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Jemez Pueblo Man Pleads Guilty to Assaulting A Federal OfficerRead the Press Release
ALBUQUERQUE – Gerald Toya, 40, an enrolled member and resident of Jemez Pueblo, N.M., pled guilty on Aug. 31, 2018, to assaulting a federal officer.
Toya was arrested on May 24, 2018, on a two-count indictment charging him with assaulting a federal officer, and assault with a dangerous weapon. According to the indictment, Toya committed the offenses on Nov. 28, 2017, on the Jemez Pueblo in Sandoval County, N.M.
On Aug. 31, 2018, Toya pled guilty to assaulting a federal officer. In entering the guilty plea, Toya admitted that on Nov. 28, 2017, he threw a glass bottle at a federal law enforcement officer engaged in the performance of his official duty. Toya acknowledged that the glass bottle struck the officer in the hip.
At sentencing, Toya faces a maximum penalty of 20 years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Pueblo of Jemez Tribal Police Department and is being prosecuted by Assistant U.S. Attorney Joseph M. Spindle.
Houston Psychiatrist Sentenced to More Than 12 Years in Prison for Role in $155 Million Medicare Fraud SchemeRead the Press Release
A Houston psychiatrist was sentenced today to 150 months in prison for his role in a $155 million Medicare fraud scheme involving false and fraudulent claims for psychiatric services.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Dallas Region, Special Agent in Charge D. Richard Goss of IRS Criminal Investigation’s (IRS-CI) Houston Field Office, Special Agent in Charge Kristin Osswald of the Railroad Retirement Board Office of Inspector General’s (RRB-OIG) Chicago Regional Office, and Unit Division Chief Stormy Kelly of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Riyaz Mazcuri, 67, a former attending psychiatrist at Riverside General Hospital (Riverside) of Houston, was sentenced by U.S. District Judge Vanessa D. Gilmore of the Southern District of Texas. Judge Gilmore also ordered Mazcuri to pay $20,607,410.22 in restitution to Medicare and $2,250,789.69 in restitution to Medicaid.
On May 23, 2017, following a five-day trial, a jury convicted Mazcuri of one count of conspiracy to commit health care fraud, and five counts of health care fraud.
According to the evidence at trial, from 2006 until February 2012, Mazcuri and others engaged in a scheme to defraud Medicare by submitting to Medicare, through Riverside, approximately $155 million in false and fraudulent claims for partial hospitalization program (PHP) services. A PHP is a form of intensive outpatient treatment for patients with severe mental illness.
In addition, evidence presented at trial showed that Mazcuri indiscriminately admitted and readmitted patients into these intensive psychiatric programs – often for years on end – many of whom suffered from severe Alzheimer’s or dementia and were unable to participate in the treatment purportedly provided at the PHPs, and who therefore did not qualify for the services. Evidence also showed that Mazcuri falsified medical records and signed false documents to make it appear as if patients admitted to the PHPs qualified for, required, and actually received the intensive psychiatric services.
Evidence also demonstrated that Mazcuri personally billed Medicare for psychiatric treatment he purportedly provided to Riverside’s PHP patients – treatment he never actually provided. Mazcuri’s signature on patient documents enabled Riverside to bill Medicare for over $55 million of the total $155 million that Riverside billed Medicare for fraudulent psychiatric services, the evidence showed.
To date, 15 others have been convicted of offenses based on their roles in the fraudulent scheme, including Earnest Gibson III, 73, the former president of Riverside; Earnest Gibson IV, 41, the operator of one of Riverside’s PHP satellite locations; Regina Askew, 53, a group home owner and patient file auditor; and Robert Crane, 61, a patient recruiter, all of whom were convicted after a jury trial in October 2014. Earnest Gibson III was sentenced to 45 years in prison. Earnest Gibson IV was sentenced to 20 years in prison. Regina Askew was sentenced to 12 years in prison. Robert Crane was sentenced to serve 30 months in prison. Mohammad Khan, 68, an assistant administrator at the hospital, who managed many of the hospital’s PHPs, pleaded guilty and was sentenced to 40 years in prison. Sharon Iglehart, 61, a physician, was also convicted after a jury trial in August 2015. She was sentenced to 12 years in prison. Walid Hamoudi, 66, a physician, pleaded guilty in August 2015. He was sentenced to five years in prison.
The case was investigated by the FBI, HHS-OIG and IRS-CI with assistance by RRB-OIG and MFCU. The case was prosecuted by former Assistant Chief Ashlee Caligone McFarlane and Trial Attorneys Aleza Remis and Kevin Lowell of the Criminal Division’s Fraud Section.
The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in 10 areas nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Head of Multinational Drug Organization Sentenced to Life ImprisonmentRead the Press Release
A man responsible for distributing hundreds of pounds of ice methamphetamine was sentenced today to a life sentence in federal prison.
Jose Maria Valencia, age 44, from La Ruana, Michoacán, Mexico, received the prison term after a February 6, 2018, guilty plea to conspiracy to distribute at least 500 grams of methamphetamine by a drug felon.
In 2013, Valencia was sent to California state prison after being convicted of conspiracy to commit murder. Despite his incarceration, Valencia continued to run his drug organization. Using contraband items such as cell phones, Valencia arranged to import methamphetamine from Mexico into the United States. Once the methamphetamine arrived in the United States, it would be transported to various locations, including Iowa, typically concealed in vehicles. Defendant was responsible for recruiting, managing, and supervising individuals in the organization. During the course of the conspiracy, defendant was responsible for distributing at least 250 pounds of ice methamphetamine.
Valencia was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Valencia was sentenced to life imprisonment. There is no parole in the federal system.
“Valencia continued to push hundreds of pounds of deadly methamphetamine into our community despite being incarcerated in California for conspiracy to commit murder,” said U.S. Attorney Peter E. Deegan, Jr. “This case is a reminder that we must always remain vigilant in our effort fight back against national and international drug trafficking organizations.”
Valencia is being held in the United States Marshal’s custody until he can be returned to state custody in California.
The case is being prosecuted by Assistant United States Attorney Lisa C. Williams as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement; the Mid-Iowa Task Force, comprised of the Marshalltown Police Department, Marshall County Sheriff’s Office, Tama County Sheriff’s Office, Grundy County Sheriff’s Office, Hardin County Sheriff’s Office, Iowa Falls Police Department, Eldora Police Department and the Dysart Police Department; and the Tri-County Drug Task Force, comprised of the Waterloo Police Department, Black Hawk County Sheriff’s Office, Cedar Falls Police Department, LaPorte City Police Department, Hudson Police Department, Evansdale Police Department, University of Northern Iowa Police Department, Waverly Police Department and the Bremer County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-2041.
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Fugitive Lawyer Pleads Guilty to Jumping BondRead the Press Release
Michael R. Casey, 71, who was apprehended in Mexico after being a fugitive for over four years, pled guilty on August 31, 2018 to knowingly failing to appear in court in 2014. United States District Judge Federico A. Moreno accepted the guilty plea in the bond jump matter, Case No. 14-20619-Cr-Moreno, and scheduled a sentencing hearing for November 15, 2018.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Amos Rojas, Jr., United States Marshal, United States Marshals Service (USMS), Southern District of Florida, made the announcement.
When Casey jumped bond, he was pending trial on federal charges related to an alleged $20 million investment fraud scheme. The investment fraud case is scheduled for trial before U.S. District Judge K. Michael Moore on October 29, 2018.
According to the court record, including facts agreed to by the defendant at the failure to appear plea hearing, Casey had been arrested and released on bond in September 2012 in United States v. James C. Howard, III, et al., Case No. 12-20630-Cr-Lenard (this matter is now pending before Judge Moore). Pursuant to bond conditions, the defendant’s travel was restricted to the Southern District of Florida, with the exception that he could travel to visit his mother in North Carolina with prior permission from the U.S. Probation Office.
During the course of the fraud case, U.S. District Judge Joan A. Lenard entered multiple Orders requiring Casey and his co-conspirators to be present at all hearings and conferences. Casey was present at status conferences from 2012 to 2014, including the one where the fraud trial was set for May of 2014. A further status conference was set for April 29, 2014.Casey received permission to travel, via car, to North Carolina and back to South Florida, prior to the April 29, 2014 status conference. On April 21, 2014, Casey rented a car in Tallahassee, Florida, drove over 2,000 miles, and returned the car on April 25, 2014 in Laredo, Texas, a city on the United States border with Mexico. On April 29, 2014, Judge Lenard held the status conference at the U.S. District Court in Miami-Dade County, Florida. Casey knowingly failed to appear at the hearing and Judge Lenard issued a bench warrant.
According to allegations contained in the court record of the fraud case, Casey, originally of Fort Lauderdale, and co-defendants Patricia S. Saa, of Tampa, Louis N. Gallo, III, of Parkland, and James C. Howard, III, of Parkland, defrauded individuals who invested in Commodities Online LLC (COL). From approximately January 2010 through April 2011, Casey and his co-conspirators allegedly used material false and fraudulent representations and material omissions to obtain over $20 million from over 700 investors.
Casey and his co-conspirators allegedly used COL to sell COL ownership units, subscriptions to the COL website, and investments in purported transactions to buy and sell commodities. Casey and his co-conspirators represented to investors that COL had a track record of profits on these purported contracts. However, COL did not have profits.
Casey and his co-conspirators also allegedly made material misrepresentations and omissions about the leaders of COL. After mid-2010, Casey and his co-conspirators represented that Howard, who had a prior federal criminal conviction, was no longer managing COL, when in fact, Howard remained in charge.
In September 2013, Howard pled guilty to one count of conspiracy to commit mail and wire fraud. In December 2013, Howard was sentenced to 189 months in prison.
In August of 2014, Gallo, pled guilty to one count of conspiracy to commit mail and wire fraud. In October of 2014, Gallo was sentenced to 168 months in prison.
In July of 2014 Balbirer, an assistant to Gallo, pled guilty to two counts of money laundering. In September of 2015, Balbirer was sentenced to 17 months in prison.
In addition, other co-conspirators in the COL fraud scheme were charged separately with conspiracy to commit mail and wire fraud. In November 2013, three defendants pled guilty for their involvement in the scheme. In February 2015, Timothy Josselson was sentenced to 38 months in prison, in Case No. 13-20730-Cr-Altonaga. In February 2015, Kathryn Josselson was sentenced to 36 months in prison, in Case No. 13-20731-Cr-Moore. In March 2015, Robert Lananna was sentenced to 40 months in prison, in Case No. 13-20732-Cr-Ungaro.
Mr. Greenberg commends the investigative efforts of the FBI and USMS in this matter. Mr. Greenberg thanks the Mexican government for its assistance with the defendant’s apprehension. This case is being prosecuted by Assistant U.S. Attorney Ana Maria Martinez.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty in a court of law.
Related court documents and information can be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Franklin Man Sentenced to Federal Prison for Hit & Run on the Natchez Trace ParkwayRead the Press Release
NASHVILLE, Tenn. – September 4, 2018 – Marshall Neely III, 59, of Franklin, Tennessee, was sentenced today in U.S. District Court to 10 months in prison, after pleading guilty to charges stemming from a July 2017 incident where he struck and injured a bicyclist on the Natchez Trace Parkway and left the scene, announced U.S. Attorney Don Cochran of the Middle District of Tennessee. Chief U.S. District Judge Waverly D. Crenshaw, Jr., also ordered Neely to pay $2,260.00 in restitution to the victim.
Neely was indicted in July 2017, after he struck and injured a bicyclist with his vehicle while driving on the Natchez Trace Parkway on July 8, 2017. After striking the bicyclist, Neely failed to stop and left the scene. He pleaded guilty on May 21, 2018, to reckless aggravated assault; lying to a federal agent; and obstruction of justice.
According to court documents, on the morning of July 8, 2017, two individuals were riding their bicycles on the Natchez Trace Parkway when one was struck from behind by a black Volvo SUV. The impact knocked the rider to the ground and destroyed the bicycle. The bicyclist sustained injuries and was transported to Williamson County Medical Center by ambulance. The other bicyclist had a helmet-mounted camera which recorded the collision, as well as the Volvo driving away from the scene. The video of this incident was later posted online and contained a visible license plate and other decals which subsequently led to the identification of the vehicle and its driver, Marshall Neely III.
That same evening, law enforcement officers arrived at Neely’s house and found him unconscious on the floor. Neely later admitted that he had been driving on the Natchez Trace Parkway earlier in the day and claimed someone threw a bicycle at his car. He also admitted that after seeing the video posted online, he removed the decals from the rear window of his car because he knew the decals would lead to his identification.
This case was investigated by the National Park Service and the Williamson County Sheriff’s Department. Assistant U.S. Attorney Sara Beth Myers prosecuted the case.
Former Prince George’s County State Delegate Sentenced to 4 Years in Federal Prison for Accepting Bribes and for ConspiracyRead the Press Release
Greenbelt, Maryland –U.S. District Judge Paula Xinis sentenced former Maryland State Delegate Michael Lynn Vaughn, age 60, of Bowie, Maryland, today to four years in prison, followed by three years of supervised release, for a bribery conspiracy in connection with a scheme in which he accepted bribes in exchange for influencing the performance of his official duties. A federal jury convicted Vaughn of conspiracy and four counts of bribery on March 1, 2018. At today’s sentencing hearing, the government also presented evidence, which Vaughn did not dispute, that Vaughn stole campaign funds from early 2005 through 2016, totaling over $100,000.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
“We expect our elected officials to place the interests of the citizens above their own,” said United States Attorney Robert K. Hur. “When they violate the trust placed in them and break the law, the U.S. Attorney’s Office will bring them to justice.”
According to court documents and evidence presented at his two-week trial, Vaughn was a Maryland State Delegate from January 2003 until January 2017, representing District 24, which covered portions of Prince George’s County, Maryland, and was the Deputy Majority Whip and a member of the Economic Matters Committee.
According to the evidence presented at trial, from January 2015 through April 2016, Vaughn conspired with former Prince George’s County Liquor Board member and later, Chief Liquor Inspector, David Dae Sok Son, liquor store owners Young Jung Paig, Shin Ja Lee, and others in order to enrich himself personally, in exchange for Vaughn performing and agreeing to perform favorable official action.
Specifically, the evidence showed that Vaughn took $19,000 in cash bribe payments from Paig, Lee, and others, in exchange for influencing and voting for the 2015 Sunday Sales Bill, which established up to 100 Sunday liquor sales permits in Prince George’s County for holders of Class A licenses and Class B licenses with an off-sale privilege; and the related 2016 Additional Sunday Permits Bill, both of which became Maryland law. Vaughn voted in favor of the bills, which benefitted Paig and Lee’s liquor stores, in the Prince George’s County Delegation meetings, in the Economic Matters Committee, and in the Maryland House of Delegates.
Also according to court documents and information presented at today’s sentencing hearing, from early 2005 through 2016, Vaughn diverted money donated to his campaign finance committee, Friends of Michael Vaughn (FOMV), for his personal use, totaling over $100,000. A candidate, such as Vaughn, is prohibited from personally making disbursements from a political committee established to promote his candidacy. According to the information presented at the sentencing hearing, the government’s sentencing memo, and other court documents, Vaughn withdrew campaign funds from the FOMV account to use for personal expenses, including electronically transferring money from the FOMV campaign account directly to Vaughn’s personal bank account, making payments to his personal credit card account, and making payments of his personal income tax to the Internal Revenue Service. In addition, during an interview on April 12, 2016, Vaughn admitted to stealing funds from his campaign account and spending them on a number of things, including his personal mortgage, his son’s school tuition, and credit card bills. As part of the wire fraud conduct, Vaughn received campaign contributions, deposited them into the FOMV account, and then converted them to his personal use without identifying the contributions on campaign finance reports made to the Maryland State Board of Elections. In order to conceal the scheme from FOMV and the FOMV campaign contributors, Vaughn caused the filing of fraudulent campaign finance reports with the Maryland State Board of Elections. For example, as of January 14, 2015, the campaign finance report filed with the Maryland State Board of Elections showed a balance in the FOMV account of $64,462.44. The expenditures identified in the report did not include substantial cash withdrawals made by Vaughn, and the account actual balance on that date, according to bank statements, was only $1,654.36.
United States Attorney Robert Hur commended the FBI, IRS-CI, and Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.
Former Hamden Police Officer Who Distributed Steroids is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that BRYAN KELLY, 46, of Madison, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to three years of probation, the first six months of which KELLY must serve in home confinement with location monitoring, for distributing anabolic steroids. Judge Bolden also ordered KELLY to pay a $1,000 fine and perform 100 hours of community service.
According to court documents and statements made in court, in December 2017, the Statewide Narcotics Task Force West conducted a court-authorized search of an individual’s residence in Hamden and seized approximately 25,000 pills and 530 vials of anabolic steroids. Subsequent analysis of the individual’s cell phone revealed numerous text messages relating to KELLY’s purchase and redistribution of steroids. At the time of the search, KELLY was a police officer with the Hamden Police Department.
The investigation revealed that KELLY purchased steroids from his source of supply since approximately October 2016. He personally used some of the steroids and distributed some to friends and colleagues.
On May 21, 2018, KELLY pleaded guilty to one count of possession with intent to distribute anabolic steroids.
KELLY has retired from the Hamden Police Department.
This matter has been investigated by the Connecticut State Police, Statewide Narcotics Task Force West, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Sarah P. Karwan with the assistance of the State’s Attorney for the New Haven Judicial District.
Former Coshocton Public Housing Director Pleads Guilty to Embezzling HUD FundsRead the Press Release
COLUMBUS, Ohio – The former Executive Director and Chief Financial Officer of the Coshocton Metropolitan Housing Authority (CMHA) has pleaded guilty in a federal public corruption case.
Gregory J. Darr, 64, of Coshocton, Ohio, pleaded guilty in U.S. District Court today to embezzling more than $431,000 from the United States Department of Housing and Urban Development (HUD).
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Brad Geary, Special Agent in Charge, U.S. Department of Housing and Urban Development Office of Inspector General; Ohio Attorney General Mike DeWine; Tommy D. Coke, Inspector in Charge, U.S. Postal Inspection Service; Coshocton County Sheriff Timothy L. Rogers, Richmond County (Georgia) Sheriff Richard Roundtree and Kimberly Cheatle, Special Agent in Charge, U.S. Secret Service, Atlanta; announced the plea entered into before Chief U.S. District Judge Edmund A. Sargus, Jr.
According to court documents, the Coshocton housing authority received federal HUD money each year to provide housing to low-income households. Money was provided for traditional public housing programs like Section 8 vouchers, as well as for certain “tenant participation activities” like a resident council – an organization of tenants that represents other public housing residents and puts on programming to support them.
Darr served as the Executive Director of the CMHA Resident Council, even though he had also been serving as the Executive Director and Chief Financial Officer of CMHA since 2001. Federal regulations prohibited him from serving in the resident council leadership capacity or from benefitting financially from the council.
“Over time, Darr consolidated power and authority over both CMHA and the resident council. Abuse of these positions of public trust enabled him to embezzle and convert federal funds and to conceal his crimes from others,” U.S. Attorney Glassman said.
Beginning in January 2012 and continuing through September 2017, Darr repeatedly embezzled money from both the CMHA and the Resident Council operating accounts for his own personal gain and for the gain of co-defendant Eric L. Blackwell, 54, of Coshocton.
Darr used the money for, among other things, restaurant bills, out-of-state expenses made in connection with real-estate ventures he co-owned with Blackwell, home improvements made to properties that he or Blackwell owned, and a marina slip and lot rental at Spend-a-Day Marina on Indian Lake, where he and Blackwell maintained a boat and mobile home.
While on the clock with CMHA, Darr routinely traveled to Georgia to manage his investment properties, all while being paid by CMHA to manage the agency’s day-to-day operations in Coshocton. He and Blackwell also improperly used CMHA office space and supplies to operate their joint business ventures.
In August 2017, Darr learned of a federal investigation into his unlawful activities when agents with the HUD Office of Inspector General executed search warrants at CMHA. He thereafter took steps to willfully obstruct and impede the investigation, by falsifying resident council meeting notes and attempting to conceal records relevant to the investigation.
Relatedly, Darr and Blackwell falsified claims to obtain monthly housing assistance payments on behalf of purported tenants who never actually resided in a housing project managed by the two defendants in Augusta, Ga.
Darr pleaded guilty to conspiring to embezzle money from the United States, a crime punishable by up to five years in prison. As part of his plea, Darr has agreed to pay restitution to HUD in the amount of $431,668.45.
Blackwell has also been charged with and has agreed to plead guilty to conspiring to embezzle money from the United States.
“The charges disclosed today prove our continuing resolve to root out fraud and corruption in all forms, particularly when the programs involved should have been used to help our neediest families,” said HUD OIG Special Agent in Charge Geary. “It is our continuing core mission to work with our law enforcement partners and the United States Attorney’s Office to protect the integrity of our housing programs and to take strong action against those who seek to personally benefit from them.”
“Greg Darr violated the public trust and stole from the people he was supposed to serve,” Ohio Attorney General Mike DeWine said. “My office’s Economic Crimes Unit, acting on information received from the Coshocton County Sheriff’s Office, launched an investigation that uncovered a pattern of theft and abuse at the Coshocton Metropolitan Housing Authority. I sincerely appreciate the hard work our local and federal partners put into pursuing the case and holding this man accountable. Together we will continue to root out public corruption.”
U.S. Attorney Glassman commended the investigation of this case by federal and local law enforcement in Ohio and Georgia, as well as Assistant United States Attorneys Noah R. Litton and J. Michael Marous, who are representing the United States in this case.
# # #
Florida Resident Sentenced to Prison for Stealing Government Funds and Obstructing the IRSRead the Press Release
A Ft. Myers, Florida man was sentenced to 18 months in prison for stealing government funds and corruptly endeavoring to obstruct the internal revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Maria Chapa Lopez of the Middle District of Florida.
According to documents filed with the court, Attila Kalmar filed 2007 through 2009 trust returns with the Internal Revenue Service (IRS) in the name of First AK-Open Sec Trust, a nominee entity, seeking more than $480,000 in fraudulent refunds. Kalmar deposited a refund check he received as a result of these filings into a bank account, and then used the proceeds to purchase real property, acquire thousands of dollars in gold coins, and wire money overseas. Moreover, Kalmar attempted to impede the internal revenue laws by transferring funds between nominee bank accounts and falsely representing to the IRS that an IRS revenue officer was the trustee for First AK-Open Sec Trust.
In addition to the term of prison imposed, U.S. District Judge Sheri Polster Chappell ordered Kalmar to serve three years of supervised release, forfeit $274,019 and a piece of real estate to the United States, and pay $274,019 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Chapa Lopez commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys William M. Montague and Grace E. Albinson of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Florida Resident Pleads Sentenced to Prison for Stealing Government Funds and Obstructing the IRSRead the Press Release
Fort Myers, FL - A Ft. Myers, Florida man was sentenced to 18 months in prison for stealing government funds and corruptly endeavoring to obstruct the internal revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Maria Chapa Lopez of the Middle District of Florida.
According to documents filed with the court, Attila Kalmar filed 2007 through 2009 trust returns with the Internal Revenue Service (IRS) in the name of First AK-Open Sec Trust, a nominee entity, seeking more than $480,000 in fraudulent refunds. Kalmar deposited a refund check he received as a result of these filings into a bank account, and then used the proceeds to purchase real property, acquire thousands of dollars in gold coins, and wire money overseas. Moreover, Kalmar attempted to impede the internal revenue laws by transferring funds between nominee bank accounts and falsely representing to the IRS that an IRS revenue officer was the trustee for First AK-Open Sec Trust.
In addition to the term of prison imposed, U.S. District Judge Sheri Polster Chappell ordered Kalmar to serve three years of supervised release, forfeit $274,019 and a piece of real estate to the United States, and pay $274,019 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Chapa Lopez commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys William M. Montague and Grace E. Albinson of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Five Defendants Charged in Manhattan Federal Court with Racketeering and Narcotics OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Angel M. Melendez, Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), James J. Hunt, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), today announced the unsealing of a superseding indictment charging five defendants with various racketeering and narcotics offenses. Three defendants are charged in connection with their roles in the August 2, 2009, murder of Derrick Moore, 22, in the Bronx.
One of the defendants, LUIS ORTIZ, 41, was presented last week before United States Magistrate Judge Barbara C. Moses. Two of the defendants, HECTOR MARRERO, 27, and PETER GONZALEZ, 29, were arrested this morning and will be presented later today before United States Magistrate Judge Henry B. Pitman. The remaining two defendants, STEVEN BROWN, 39, and RAFAEL REYES, 37, are already in federal custody on other charges, and will be presented at a later date. The case has been assigned to United States District Judge Katherine Polk Failla.
Manhattan U.S. Attorney Geoffrey Berman said: “As alleged in the superseding indictment, members of the Taylor Avenue and Creston Avenue Crews wreaked havoc on the streets of New York. On August 2, 2009, that violence resulted in the murder of Derrick Moore. He was 22 years old. Today, thanks to the dedication and perseverance of the NYPD, the DEA, and HSI, the defendants face charges for their alleged crimes.”
HSI Special Agent-in-Charge Angel M. Melendez said: “The members of these two crews are alleged to have been in involved in a slew of illegal activity ranging from drug trafficking to committing murder. We have seen the violence of street gangs bleed out into our communities, pushing their deadly drugs and committing violent acts. Strong collaborative efforts and information sharing are the foundation for law enforcement in New York to be more effective in ridding the streets of these alleged criminals.”
DEA Special Agent-In-Charge James J. Hunt said: “This investigation linked a brutal crime to members of a drug gang, which exemplifies the relationship between drug trafficking and violence. I commend our law enforcement partners on their hard work and collaboration.”
According to the allegations contained in the superseding indictment[1] and statements made in court:
The Taylor Avenue Crew was a criminal enterprise that operated principally in and around Taylor Avenue in the Bronx, New York, from at least 2007 up to and including 2015. Members of the Taylor Avenue Crew sold crack cocaine and committed acts of violence in that area.
The Creston Avenue Crew was a criminal enterprise that operated principally in and around Creston Avenue in the Bronx, New York, from at least 2003 up to and including 2011. Members of the Creston Avenue Crew sold cocaine and marijuana, and committed acts of violence, in that area.
Members of the Taylor and Creston Avenue Crews associated with each other and assisted each other by, among other things, carrying out acts of violence on each other’s behalf upon request by the leaders of the respective crews. One such act of violence was the murder of Derrick Moore on August 2, 2009. This murder was committed by Creston Avenue Crew members RAFAEL REYES and LUIS ORTIZ to assist Taylor Avenue Crew member STEVEN BROWN.
* * *
Count One of the Indictment charges BROWN with murder in aid of racketeering activity. Count Two of the Indictment charges REYES and ORTIZ with murder in aid of racketeering activity. Count Three of the Indictment charges BROWN, REYES, and ORTIZ with murder in connection with a drug crime. Count Four charges BROWN, REYES, and ORTIZ with murder through the use of a firearm. Counts One through Four all relate to the murder of Derrick Moore.
Count Five of the Indictment charges MARRERO and GONZALEZ with participating in a conspiracy to distribute crack cocaine.
A chart containing the names, charges, and penalties for the defendants is set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of HSI, the DEA, and the NYPD.
Assistant U.S. Attorneys Maurene Comey, Jessica Lonergan, and Jason Swergold are in charge of the prosecution. The case is being handled by the Office’s Violent and Organized Crime Unit.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
CHARGE
DEFENDANTS
PENALTIES
1
Murder in aid of racketeering activity
18 U.S.C. § 1959(a)(1)
STEVEN BROWN
Mandatory minimum of life in prison
2
Murder in aid of racketeering activity
18 U.S.C. § 1959(a)(1)
RAFAEL REYES
LUIS ORTIZ
Mandatory minimum of life in prison
3
Murder in connection with a drug crime
21 U.S.C. § 848(e)(1)(A)
STEVEN BROWN
RAFAEL REYES
LUIS ORTIZ
Maximum: life in prison
Minimum: 20 years in prison
4
Murder through use of a firearm
18 U.S.C. § 9249(j)
STEVEN BROWN
RAFAEL REYES
LUIS ORTIZ
Maximum: life in prison
Minimum: 5 years in prison
5
Narcotics conspiracy
21 U.S.C. § 846
HECTOR MARRERO
PETER GONZALEZ
Maximum: Life in prison
Minimum: 10 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Fifteen Violent Jewelry Robbers Have Been Arrested for 11 Robberies and Attempted Robberies Targeting Traveling Jewelry Salesmen in Five StatesRead the Press Release
Fifteen defendants who were wanted by the FBI for their suspected involvement in a series of violent robberies against traveling jewelry salesmen across the United States, have been arrested, the last of whom on Sept. 2, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox for the Northern District of Texas and Special Agent in Charge Eric K. Jackson of the FBI Dallas Field Office.
An indictment and three superseding indictments, issued in Feb. 18, 2016; Jan. 24, 2017; Nov. 21, 2017; and Jan. 23, 2018, respectively, charge the 15 defendants, all Colombian nationals, with the following offenses relating to the 11 robberies/attempted robberies:
Jonathan David Malpica, 33
RICO conspiracy, conspiracy to interfere with commerce by robbery, interference with commerce by robbery
Tito Andres Vargas Urbina, 31
RICO conspiracy, conspiracy to interfere with commerce by robbery, interference with commerce by robbery
Roger Zamora, aka Jaime Alba Juarez, 40
RICO conspiracy, conspiracy to interfere with commerce by robbery, interference with commerce by robbery
Camila Andrea Espitia, 23
Conspiracy to interfere with commerce by robbery, interference with commerce by robbery
Mohammed Natour, 32
RICO conspiracy, conspiracy to interfere with commerce by robbery, interference with commerce by robbery
Omar Gonzalez, 38
RICO conspiracy, conspiracy to interfere with commerce by robbery
Fabrizia Cavanna Sarmiento, aka Fabrizia Cavanna, 41
RICO conspiracy, conspiracy to interfere with commerce by robbery
Andres Felipe Henao, 32
Conspiracy to interfere with commerce by robbery, interference with commerce by robbery
Brayan David Vargas Londono, aka Brayan Vargas, Brayan David Vargas Gonzalez, Mario Steven Cuellar, Joshua Steven
Cavarez, Blanco Elizanoro Recioachach, 25
Conspiracy to interfere with commerce by robbery
Rodolfo Vargas Londono, aka Christian Vargas, 30
Conspiracy to interfere with commerce by robbery
Luis Garcia, 31
Conspiracy to interfere with commerce by robbery
Catherine Salas, 34
Conspiracy to interfere with commerce by robbery
Erika Gutierrez Machado, aka Angela Cuebas, 45
Conspiracy to interfere with commerce by robbery
James Jeanphier Tobar Ramon, aka Panda, Jonathan Tapia, Jhonatan Vasquez Toloza, 27
RICO conspiracy, conspiracy to interfere with commerce by robbery, interference with commerce by robbery
Jesus Jean Pool Tovar, aka Yakusa, 24
Conspiracy to interfere with commerce by robbery
The indictments charge the defendants for their alleged involvement in 11 robberies/attempted robberies in five states, from 2014 through 2016:
Date (on or about)
Robbery Location
Sept. 26, 2014
Oklahoma City, Oklahoma
Jan. 30, 2015
Dallas, Texas
March 31, 2015
Miami Beach, Florida
July 8, 2015
Houston, Texas
Sept. 3, 2015
Dallas, Texas
Oct. 26, 2015
Houston, Texas
Nov. 10, 2015
Hollywood, Florida
Nov. 15, 2015
Indianapolis, Indiana
Dec. 6, 2015
Vienna, Virginia
Jan. 21, 2016
Farmers Branch, Texas
Jan. 27, 2016
Dallas, Texas
The series of indictments charged that the members and associates of the robbery enterprise allegedly operated in the following ways:
- Members of the enterprise and their associates allegedly obtained rental vehicles, airline tickets, hotel rooms, and other short-term housing, and opened bank accounts and obtained bank cards and credit cards using fraudulent identification documents to facilitate the robberies and surveillance operations;
- Members of the enterprise and their associates allegedly conducted surveillance on diamond and jewelry stores and traveling diamond and jewelry salesmen in order to identify prospective robbery victims, using teams of individuals to watch the stores from their vehicles and on foot;
- Members of the enterprise and their associates allegedly blocked-in the vehicles of traveling diamond and jewelry salesmen and often disabled the vehicles by, among other means, flattening the vehicles’ tires and breaking the vehicles’ windows;
- Members of the enterprise and their associates allegedly used violence, threats of violence, and weapons, including BB guns, knives, blades, and center punches; and
- Members of the enterprise and their associates allegedly sold the stolen diamonds, jewels, jewelry, and other goods to individuals who buy and sell stolen goods (“fences”), including an individual who traveled from Colombia to the United States to purchase the stolen goods, and then split the proceeds of their unlawful activities.
Further investigative efforts led to the location and arrest of all 15 defendants, the most recent of which took place on Sept. 2, when Tobar was arrested in Miami, Florida, by the Miami Beach Police Department Robberies Unit, in coordination with the FBI.
Rodolfo Vargas Londono, Cavanna, and Brayan David Vargas Londono, were all arrested in Colombia by the Colombian National Police, DIJIN Vetted Team, on Oct. 27, 2017, Dec. 24, 2017, and Feb. 12, 2018, respectively.
The other 11 defendants were arrested in the United States from 2016 through 2017.
“The defendants allegedly embarked on a multi-state spree of violent robberies, putting the lives of their victims and other innocent civilians at risk,” said Assistant Attorney General Benczkowski. “Thanks to the dedication and cooperative efforts of prosecutors in the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office in the Northern District of Texas, along with our partners with the FBI Dallas Violent Crimes Task Force, all 15 defendants indicted for this interstate armed robbery conspiracy have been apprehended and now must face justice. I especially thank our Colombian law enforcement partners for their hard work in securing the arrest of three fugitives in this important case.”
“These individuals painstakingly surveilled, menaced, and violently robbed salespeople in the Northern District of Texas and elsewhere,” said U.S. Attorney Nealy Cox. “My office is committed to rooting out these kinds of criminal conspiracies. I thank our law enforcement partners – both here in the United States and in Colombia – for helping us bring these defendants to justice.”
“The investigation and indictments of this violent and dangerous foreign criminal enterprise by the personnel of the Dallas FBI Office, our law enforcement partners, and prosecutors hopefully have sent a clear message,” said FBI Special Agent in Charge Jackson. “We have no tolerance for those who would violate the sovereignty of the United States to further their criminal goals and we will bring you to justice no matter where in the world you are located.”
To date, nine defendants in total pleaded guilty to charges relating to the robberies:
- Gonzalez pleaded guilty to RICO conspiracy on July 27, 2017. Gonzalez was sentenced to 66 months in prison on Feb. 20.
- Urbina pleaded guilty to RICO conspiracy on Aug. 29, 2017, and is awaiting sentencing.
- Malpica pleaded guilty to RICO conspiracy on Sept. 5, 2017, and is awaiting sentencing.
- Machado pleaded guilty to conspiracy to interfere with commerce by robbery on Sept. 5, 2017. Machado was sentenced to 40 months in prison on Jan. 22.
- Salas pleaded guilty to conspiracy to interfere with commerce by robbery on Oct. 31, 2017, and is awaiting sentencing.
- Henao pleaded guilty to conspiracy to interfere with commerce by robbery on Jan. 9, and is awaiting sentencing.
- Natour pleaded guilty to RICO conspiracy on March 13, and is awaiting sentencing.
- Zamora pleaded guilty to RICO conspiracy on March 20, and is awaiting sentencing.
- Garcia pleaded guilty to conspiracy to interfere with commerce by robbery on March 27, and is awaiting sentencing.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI Dallas Violent Crimes Task Force investigated the case, with assistance from the Colombian National Police, DIJIN Vetted Team. The Justice Department’s Office of International Affairs provided significant assistance in the extradition matters. Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Keith Robinson of the Northern District of Texas, are prosecuting the case.
FBI Recovers Stolen Ruby Slippers from the Wizard of OzRead the Press Release
FBI Seeking Information of Those Associated with Theft of Stolen Treasure
(Minneapolis) – Jill Sanborn, Special Agent in Charge of the Minneapolis Division of the FBI, and Christopher Myers, United States Attorney for the District of North Dakota, announced today that a pair of ruby slippers featured in the classic 1939 film The Wizard of Oz and stolen from the Judy Garland Museum in Grand Rapids, Minnesota in 2005, was seized in a sting operation conducted in Minneapolis earlier this summer.
While the FBI has identified suspects and has executed multiple search warrants in Minnesota and Florida in connection with the investigation, investigators are seeking the public’s help to identify all parties associated with the initial theft and the more recent scheme to defraud and extort the Markel Corporation, the owner of the slippers.
The ruby slippers are one of several pairs used in the production of the movie classic. Only four pairs of the shoes used in the film are known to remain and are widely viewed as among the most recognizable memorabilia in American film history. Current estimates value the slippers in the millions of dollars should they be sold at auction.
The recovered slippers, known as the "traveling pair," were stolen from the Judy Garland Museum in the overnight hours of August 27-28, 2005. Despite an investigation by local authorities, which included countless interviews, numerous theories, and even searches of abandoned iron ore pits, the slippers were never located and no arrests were made. The investigation remained a priority for the Grand Rapids Police Department, who requested FBI assistance in 2017 when the extortion plot against the Markel Corporation surfaced. Agents from the Minneapolis Division worked closely with the FBI’s Art Crime Team throughout the investigation, which is ongoing.
After the recovery in July, the FBI transported the slippers to the Smithsonian’s National Museum of American History in Washington, D.C., where conservators were able to conduct an in-depth examination and analysis, including evidence of wear and details unique to their use in the 1939 film. Examination of the recovered shoes showed that their construction, materials, and wear are consistent with the pair in the museum’s collection, which were donated to the museum by an anonymous donor in 1979.
"At the heart of nearly every art crime, we see greed woven into the fabric of the scheme—greed to take it, and greed to profit from its return," said Sanborn. "Dorothy’s slippers are a treasured piece of Americana, and we are hoping members of the public can help us better fill in the details that will finish the script of this mystery so we can hold accountable all those who were behind the scheme."
"When the slippers were snatched in the early morning burglary, the thieves not only took the slippers, they took a piece of history that will be forever connected to Grand Rapids and one of our city’s most famous children," said Grand Rapids Police Chief Scott Johnson. "We were confident this day would eventually come, and we are grateful to the FBI and all those who worked to bring this piece of cinematic treasure out of the shadows and into the light. After all," he said, quoting a famous line from The Wizard of Oz, ‘There’s no place like home.’"
U.S. Attorney Chris Myers added, "Thanks to the great work of the FBI and their local law enforcement partners, they have successfully preserved an iconic symbol of one of America’s greatest and best-loved movies. We will follow the evidence along the investigative road to ensure justice is done in this case."
This matter has been assigned to the United States Attorney’s Office for North Dakota pursuant to 28 U.S.C. § 515(a).
Anyone with information surrounding the theft or the extortion plot is encouraged to contact the FBI at 1-800-CALL-FBI (225-5324) or submit information via the FBI’s website at tips.fbi.gov. Tips can be anonymous.
Sanborn and Myers acknowledged the support of the FBI Criminal Investigative Division’s Art Crime Team; the Grand Rapids Police Department; FBI offices in Chicago, Atlanta, and Miami; the Smithsonian’s National Museum of American History; and the Markel Corporation.
Originating Press Release Contact:
FBI Office of Public Affairs
Michael Kulstad (763) 569-8095
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Edinburg Man Sentenced for Ramming BP AgentRead the Press Release
McALLEN, Texas – A 24-year-old Edinburg resident has been ordered to federal prison following his convictions for alien smuggling and assaulting a federal agent, announced U.S. Attorney Ryan K. Patrick. Victor Eduardo Acevedo-Ventura pleaded guilty Dec. 28, 2017.
Today, U.S. District Judge Micaela Alvarez handed Acevedo-Ventura a sentence of 50 months in prison to be followed by three years of supervised release. In handing down the sentence, Judge Alvarez noted Acevedo-Ventura’s dangerous actions in ramming the Border Patrol (BP) agent’s vehicle and that this wasn’t his first time fleeing from law enforcement officers.
On Oct. 24, 2017, BP pulled over Acevedo-Ventura just south of the Falfurrias checkpoint. Authorities discovered he had just smuggled and dropped off six illegal aliens in order to bypass the checkpoint through the brush. Acevedo-Ventura initially complied with BP and pulled to the side of the road.
However, almost immediately thereafter, he fled at approximately 75 mph. Three Border Patrol agents pursued him. Acevedo-Ventura then slammed the Expedition he was driving into the lead agent’s patrol vehicle twice, before spinning out of control and leaving both vehicles with substantial damage.
At the hearing today, the court stated how fortunate Acevedo-Ventura was that he didn’t severely injure the agent. Judge Alvarez noted that did not diminish the seriousness of his conduct.
Acevedo-Ventura had been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
BP and the FBI conducted the investigation. Assistant U.S. Attorney David A. Lindenmuth prosecuted the case.
East Bay Resident Sentenced to Two Years in Prison for Defrauding Concert PromotersRead the Press Release
OAKLAND – Quincy Krashna was sentenced today to 24 months in prison, and ordered to pay $450,000 in restitution to European concert promoters, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Jeffrey S. White, U.S. District Judge.
Krashna, 50, of Albany, Calif., pleaded guilty on March 6, 2018. According to the plea agreement, Krashna admitted that he misrepresented to concert promoters his connections to the Red Hot Chili Peppers. The victims were interested in promoting Red Hot Chili Peppers concerts in Eastern Europe. Krashna further admitted he told the concert promoters that he would hold in an escrow account a $450,000 down payment to secure the band’s services and that the money would be returned to the promoters if Krashna was unable to secure the band’s services. Krashna admitted in the plea agreement that he created a fraudulent “Escrow Agreement” that had the appearance of being an escrow agreement used by Chase Bank, when in fact the alleged escrow account was a personal bank account that he controlled. The concert promoters wired $450,000 into the fake escrow account after receiving Krashna’s assurances.
Krashna admitted in the plea agreement that he continued to inform the concert promoters that their money was in an escrow account controlled by Chase Bank, when in fact he had transferred the money out of his personal account into other accounts that he controlled. Krashna admitted that he continued to misrepresent the whereabouts of the victims’ money until March 2012.
A federal grand jury indicted Krashna on January 12, 2017. He was charged with seven counts of wire fraud, in violation of 18 U.S.C. § 1343. Pursuant to the guilty plea, Krashna pleaded guilty to one count and the remaining counts were dismissed.
In addition to the prison term and restitution, Judge White ordered the defendant to serve a three-year term of supervised release to follow his prison term. The defendant will begin serving the sentence on November 6, 2018.
Assistant U.S. Attorneys Tom Green and Michelle Kane are prosecuting the case with the assistance of Noble Hughes and Katie Turner. The prosecution is the result of an investigation by the FBI.
East Bay Real Estate Agent Sentenced to More Than Six Years in Prison for Multimillion Dollar Property Scheme Related to Fraudulent LawsuitsRead the Press Release
SAN FRANCISCO –Robert Jacobsen was sentenced today to 78 months in prison for wire fraud and money laundering, announced United States Attorney Alex G. Tse, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, Special Inspector General for the Troubled Asset Relief Program Christy Goldsmith Romero, and Internal Revenue Service-Criminal Investigation (IRS-CI) Acting Special Agent in Charge Tara Sullivan. The sentence was handed down by the Honorable Maxine M. Chesney, U.S. District Judge.
Jacobsen, 70, of Kensington, Calif., pleaded guilty to the charges on July 19, 2017. According to his plea agreement, Jacobsen admitted he created a scheme to sell homes to unsuspecting buyers who did not know the homes had unpaid mortgages attached to them. As part of the scheme, Jacobsen created a company called “American Brokers’ Conduit Corporation.” Jacobsen’s company was not related to an already-existing mortgage originator known as “American Brokers’ Conduit.” The previously-existing company had originated mortgages in the Bay Area and elsewhere. Jacobsen, through intermediaries, gained control of homes with mortgage liens that secured loans originated by the real “American Brokers’ Conduit.” Then, Jacobsen used intermediaries to sue the phony “American Brokers’ Conduit Corporation” in court, claiming that the legitimate mortgage liens were invalid. As he controlled both the plaintiff and the defendant in these lawsuits, Jacobsen then instructed the attorneys for both sides to enter into stipulated judgments, signed by the courts, resolving the lawsuits by purporting to declare the mortgage liens invalid. In so doing, he omitted to tell the courts that neither he nor any other person involved in the lawsuits was a legitimate representative of either the real “American Brokers’ Conduit” or the then-current owners of the liens. Jacobsen filed those agreements with the relevant county recorder’s offices, to give the appearance to anyone conducting a title search that the liens had been declared invalid by a court, and then sold the homes to unsuspecting buyers without paying off the original loans on the homes. Jacobsen kept the vast majority of the proceeds of these sales to himself, laundering the money through multiple bank accounts in the United States and in Belize, and buying property and a yacht with the money.
Jacobsen successfully completed his scheme by selling two homes, one in Danville, Calif., for $540,000, and the other in San Francisco, for $1.2 million. He also attempted the scheme on another home, in Monterey, Calif., which he attempted to sell for $3 million.
A grand jury indicted Jacobsen on November 5, 2015, charging him with thirteen counts of wire fraud, in violation of 18 U.S.C. § 1343, and engaging in monetary transactions in property derived from specified unlawful activity, in violation of 18 U.S.C. § 1957. Pursuant to the plea agreement, Jacobsen pleaded guilty to one count of wire fraud and one count of engaging in monetary transactions from specified unlawful activity. If Jacobsen complies with the plea agreement, the remaining counts will be dismissed.
In addition to the prison term, Judge Chesney sentenced Jacobsen to serve 3 years of supervised release. As part of the plea agreement, Jacobsen also agreed to the forfeiture of the yacht that he purchased with fraud proceeds. Judge Chesney scheduled a hearing on October 17, 2018, to determine the amount of restitution.
Assistant U.S. Attorneys Benjamin Kingsley, Gregg Lowder, and Meredith Osborn are prosecuting the case with assistance from Bridget Kilkenny and Beth Margen. The prosecution is the result of an investigation by the FBI, IRS-CI, and the Office of the Special Inspector General for the Troubled Asset Relief Program.
Dominican National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national pleaded guilty today in federal court in Boston for illegally reentering the United States after being deported.
Radhames Esmereldo Guerrero-Mejia, 34, a Dominican national residing in Boston, pleaded guilty to one count of illegal reentry of a deported alien. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Dec. 4, 2018.
On Feb. 8, 2018, law enforcement officers encountered Guerrero-Mejia and determined him to be illegally present in the United States. The defendant was previously deported on Nov. 17, 2015.
Guerrero-Mejia faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Rebecca Adducci, Interim Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Major Crimes Unit is prosecuting the case.
Crete Man Sentenced to 120 Months for 15 Counts of Wire FraudRead the Press Release
United States Attorney Joe Kelly announced that Mark Martin Ackerman, 32, of Crete, Nebraska, was sentenced in federal court in Lincoln, Nebraska, on August 30, 2018, for 15 counts of wire fraud. The Honorable Richard G. Kopf, Senior United States Court Judge, sentenced Ackerman to 10 years of imprisonment. There is no parole in the federal system. After his release from prison, Ackerman will begin a three-year term of supervised release.
Over the course of five years, Ackerman embezzled $1,400,000 from Vertical Horizons Contracting, Inc., a closely held corporation based in Lincoln, Nebraska. Ackerman was the office manager for VHC for ten years. Ackerman was ordered to pay more than $2,000,000 in restitution, with a portion of that money having already been paid to the Court. Ackerman was further ordered to forfeit numerous luxury vehicles and his home in Crete. It was determined that Ackerman purchased these assets with the stolen money from the small, family-owned business. These assets will be sold for the benefit of victim restitution.
This case was investigated by the Federal Bureau of Investigation.
Charleston Man Pleads Guilty to Child Pornography ChargeRead the Press Release
CHARLESTON, W.Va. -- David Wayne McDaniel, 53, from Charleston, pled guilty today to possession of child pornography, announced United States Attorney Mike Stuart. Stuart commended the investigative work of the Federal Bureau of Investigation.
“Incomprehensible,” said United States Attorney Mike Stuart. “We will prosecute every one of these horrific crimes and put child predators behind bars.”
McDaniel admitted that he possessed over 600 images, including pornographic images of prepubescent minors and images containing sadistic or masochistic conduct, other depictions of violence, or sexual abuse or exploitation of an infant or toddler.
Because McDaniel has a prior conviction for sexual abuse of a minor, he faces a mandatory minimum of ten years in prison when he is sentenced on December 13, 2018.
Assistant United States Attorney Steve Loew is handling the prosecution. United States District Judge John T. Copenhaver, Jr. presided over the plea hearing.
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Bulgarian National Sentenced to Federal Prison for Defrauding FedExRead the Press Release
Memphis, TN – A Bulgarian national has been sentenced to 37 months in federal prison for mail fraud. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, Dimitar Petlechkov, 35, engaged in a scheme to defraud FedEx by fraudulently linking his FedEx shipping account to a national shipping account that had significant shipping discounts. Petlechkov was not entitled to receive these discounts. He then offered reduced shipping rates to third party shippers to use his FedEx account for their own shipping needs. Petlechkov offered them a better shipping rate than they could get on their own, but not the full discount he fraudulently received. The scheme ran for almost five years, from January 2009 to April 2014. Petlechkov made over $300,000 in profits during that time.
U.S. Attorney D. Michael Dunavant said, "This long-term fraudulent scheme had significant financial consequences to the corporate interests of the victim, FedEx Corporation, and created unfair business advantages in interstate commerce and the shipping industry. This office is committed to the protection of business and corporate interests in interstate commerce, and this sentence, restitution, and subsequent removal will hold the defendant accountable while providing justice for the victim."
On August 31, 2018, U.S. District Court Judge Jon P. McCalla sentenced Petlechkov to 37 months imprisonment; Petlechkov was also ordered to pay restitution of $801,000 to FedEx and faces deportation to Bulgaria at the conclusion of his sentence. Petlechkov has been in the United States illegally as a visa overstay since 2000.
The Federal Bureau of Investigation (FBI) investigated this case.
Assistant U.S. Attorney David Pritchard prosecuted this case on the government’s behalf.
Bluefield Men Sentenced on Federal Drug ChargesRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Mike Stuart announced today that two Bluefield men were sentenced to federal prison on drug charges. Stuart praised the work of the Southern Regional Drug and Violent Crime Task Force.
“Communities all across West Virginia have paid a heavy price because pills invaded these valleys and mountains,” said United States Attorney Mike Stuart. “We are prosecuting with haste those whose illegal practices led to the scourge of pills that aided the path of addiction for which too many of our good citizens fell prey.”
Gerold Flack, 40, was sentenced to 78 months for distribution of hydromorphone. He pled guilty in April, admitting that on November 7, 2017, he distributed hydromorphone to an informant in Bluefield. He also admitted that from the summer of 2017 until about November 30, 2017, he distributed about 3375 hydromorphone pills.
Jamaal Crenshaw, 37, was sentenced to 30 months for distribution of oxycodone. He also pled guilty in April, and admitted that he sold several oxycodone and oxymorphone pills to an informant in September and October of 2017. He further admitted that when police searched his residence on October 5, 2017, they found over $5,000 which he had earned from selling drugs.
Assistant United States Attorney John File prosecuted the cases. The sentences were imposed by Senior United States District Judge David A. Faber.
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Albany Man Pleads Guilty to Possession of A Firearm by A Convicted FelonRead the Press Release
ALBANY: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Rontavis Davis, age 37, of Albany, Georgia, entered a guilty plea to the offense of Possession of a Firearm by a Convicted Felon before United States District Judge Leslie Abrams in Albany on September 4, 2018. This plea subjects Mr. Davis to possible maximum term of life imprisonment, a maximum fine of $250,000, or both.
At his plea hearing, Mr. Davis admitted that on February 5, 2018, officers initiated a lawful traffic stop on a Chevrolet Cobalt in the 500 block of Clark Avenue in Albany, Georgia, because the driver of the car, Rontavis Davis, was not wearing his seatbelt. Upon making contact with Mr. Davis, officers smelled a strong odor of marijuana coming from within the car. Based on this odor, officers removed Davis from the car and began to search it. Officers advised Mr. Davis that he was being temporarily detained while the search was being conducted and asked him if there was any contraband or dangerous items on his person or in the vehicle. Mr. Davis stated that there was a digital scale in his pocket and a .45 caliber handgun on his front seat under a jacket.
Agents searched Mr. Davis and his car and located a loaded Colt .45 handgun, a small bag of cocaine, two jars of marijuana, and a digital scale. As officers found these items, Mr. Davis spontaneous stated, “You don’t have to keep looking, you found everything I had.” On March 22, 2018, agents advised Mr. Davis of his Miranda rights. Mr. Davis waived his Miranda rights and admitted that he had purchased the gun on the street for $100.
Mr. Davis is a convicted felon and prohibited from possessing a gun as a result. His previous convictions include (1) Theft by Receiving Stolen Property and Forgery; (2) Child Molestation; (3) Possession of Cocaine with Intent to Distribute, (4) Possession of a Firearm by a Convicted Felon; (5) Possession of Cocaine; (6) Failure to Register as a Sex Offender; and (7) Possession of Marijuana with Intent to Distribute.
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.
The case was investigated by the Albany Police Department and the FBI. Assistant U.S. Attorney Leah E. McEwen is prosecuting 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.
Albany Bank Robber Pleads GuiltyRead the Press Release
ALBANY: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Luis A. Mellado-Sanchez, age 20, of San Juan, Puerto Rico, pled guilty to Bank Robbery before District Court Judge Leslie Abrams in Albany, Georgia on September 4, 2018. This plea subjects Mr. Mellado-Sanchez to a maximum sentence of twenty (20) years imprisonment, a maximum fine of $250,000, or both.
At his plea hearing, Mr. Mellado-Sanchez admitted that on May 21, 2018, he entered the Regions Bank located at 333 West Broad Avenue in Albany. He passed a note to the bank teller that stated: “I want you to put all of the $100, $50, $20 bills in an envelope and hand it to me. If you do this quickly and without panic this will be over quickly and no one will get hurt and everyone will be happy, so please empty the cash drawers.” The bank teller provided Mr. Mellado-Sanchez with approximately $1400.00, along with a “dye pack” with four $20 dollar bill “bait bills.” Mr. Mellado-Sanchez placed the cash into a bag and left the bank.
After robbing the bank, Mr. Mellado-Sanchez went to a bus station, where he disposed of his disguise, along with the $20 bills wrapped around the ink pack. Next, Mr. Mellado-Sanchez went to a Dollar General store, where he purchased a change of clothes and a razor. Mr. Mellado-Sanchez used a church bathroom to shave his facial hair and change his clothes.
The case was investigated by the Albany Police Department, Camilla Police Department, Mitchell County Sheriff’s Office, and the Federal Bureau of Investigation. Assistant U.S. Attorney Leah E. McEwen is prosecuting the case on behalf of 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.
Accountant Sentenced for Tax Evasion and FraudRead the Press Release
CORPUS CHRISTI, Texas – A 35-year-old former Corpus Christi resident has been ordered to prison for wire fraud and tax evasion, announced U.S. Attorney Ryan K. Patrick. Brian Perez pleaded guilty March 1, 2018.
Today, U.S. District Judge Nelva Gonzales Ramos handed Perez an 18-month sentence to be immediately followed by three years of supervised release. He was also ordered to pay $162,755 in restitution to his employer and an additional $42,435.18 in criminal restitution to the IRS. At the hearing, Assistant U.S. Attorney (AUSA) Robert Thorpe detailed prior thefts from a previous employer and additional thefts from another corporation affiliated with his current victim.
Perez’ family members testified about his lack of criminal history and made pleas for probation. However, the court noted such a sentence was not appropriate as there was a significant amount of loss and harm to multiple victims occurring over several years.
The court also ordered that funds fraudulently transferred to Perez’ tax withholding account at the IRS as part of the scheme be returned to victims. His tax refunds during his period of incarceration and supervised release will also be used to pay restitution to his victims.
Perez, now of San Antonio, was a Certified Public Accountant. As part of his plea, Perez admitted that while working as a bookkeeper, he orchestrated the fraudulent transfer of funds from his employer’s bank account to his personal tax withholding account. Perez also admitted he filed a false income tax return and requested a refund of the overpayment.
Through this scheme, Perez defrauded his employer of $162,755 between March 9, 2015, and Aug. 7, 2015.
IRS-Criminal Investigation and the FBI conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Saturday 1 September 2018
Dover Two-Time Federal Defendant Sentenced to over 17 Years Imprisonment for Firearms and Drug Dealing OffensesRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Malik Nasir, age 37, of Dover, Delaware, was sentenced on August 24, 2018 to 17 ½ years in federal prison for illegally possessing five (5) firearms after a prior federal and state drug and gun felony convictions. Nasir was also found guilty of possession with intent to deliver $12,000 worth of marijuana seized from his storage unit in Dover and a related charge for maintaining that storage unit for the purpose of illegal drug distribution.
Nasir was convicted following a two day federal jury trial in June 2017. According to court documents and proof offered at trial, the Delaware State Police (“DSP”) obtained a search warrant for Nasir’s storage unit in Dover in December 2015, after DSP receiving numerous complaints regarding suspicious activity in and around the unit. While officers were preparing to search, Nasir drove to the storage unit and was arrested there.
Arresting troopers located a duffel bag in Nasir’s car containing marijuana residue and a key to the storage unit. Using the key, the troopers opened the storage unit and seized $12,000 worth of marijuana found inside.
When subsequently searching Nasir’s second car (a 2009 Dodge Charger), the troopers found and seized five handguns—four of which were loaded and one of which had been reported as stolen—and 223 rounds of ammunition. Nasir was prohibited from possessing any firearms due to his prior state and federal felony convictions.
U.S. Attorney Weiss said, “The defendant’s decision to illegally possess multiple guns while engaging in the illicit drug trade represents a significant safety concern to the citizens of Delaware. This prosecution serves notice of the effectiveness of federal and state law enforcement working together to protect this community and hold gun offenders accountable.”
Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division said, “Mr. Nasir was previously convicted for drug and gun crimes, and shows his continued disregard for both the law and the well-being of others by choosing to distribute drugs into Delaware communities, along with his illegal possession of firearms. The investigative work done on this case by ATF Special Agents and our Delaware State Police partners, as well as prosecution by the U.S. Attorney’s Office, has undoubtedly made the citizens of Delaware safer.”
This case was investigated by the Delaware State Police and the ATF Baltimore Field Division, Wilmington Field Office and was prosecuted by Assistant U.S. Attorney Daniel Logan.
Friday 31 August 2018
York County Man Sentenced to over 12 Years’ Imprisonment for Threatening to Injure Police OfficersRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Chad Stoner, age 30, of Conewago Township, York County, Pennsylvania, was sentenced on August 30, 2018, to 150 months’ imprisonment by United States District Court Judge Yvette Kane for conspiracy and transmitting an interstate communication containing a threat to injure police officers and officials of Conewago Township, and possessing an AK-47 semi-automatic weapons illegally.
According to United States Attorney David J. Freed, Stoner was convicted of the charges after a three-day trial before Judge Kane on December 5, 2017. Stoner previously pled guilty to being a felon in possession of firearms after those charges were severed by the Court. On August 10, 2016, Stoner and his co-conspirator Emily Winand, age 28, of Conewago Township, agreed that Winand would use her Youtube account to post a video on which Stoner communicated a threat to injure police officers.
Winand pled guilty before Judge Kane on October 10, 2017, to conspiracy and obstruction of justice and is scheduled to be sentenced on September 12, 2018.
The investigation was conducted by the Harrisburg Resident Office of the Federal Bureau of Investigation, Joint Terrorism Task Force, the Northern York County Regional Police Department, and the West York Borough Police Department. Assistant United States Attorney Joseph J. Terz prosecuted the case.
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Wilmington Man Sentenced to 12 Years in Federal Prison for Drug DistributionRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that in federal court, Senior United States District Judge W. Earl Britt sentenced ANTONIO PIERRE SHUFFORD, 38 from Wilmington, North Carolina, to 144 months in prison, followed by 5 years of supervised release.
SHUFFORD was charged in a nine-count indictment filed in the Eastern District of North Carolina on January 31, 2018. On April 30, 2018, SHUFFORD pled guilty to count nine of the Indictment which charged him with possession with intent to distribute twenty-eight grams or more of cocaine base (crack) and a quantity of oxycodone.
The investigation revealed that on February 26, 2015, a search of SHUFFORD and six residences associated with SHUFFORD resulted in the seizure of $1,505 in U.S. Currency, plastic baggies, 14.24 grams of cocaine, and 8.09 grams of crack cocaine. As the investigation into SHUFFORD continuined, another residence and vehicle used by SHUFFORD were searched on March 8, 2017, and these searches resulted in the seizure of 152.53 grams of crack cocaine, 1,618.05 grams of liquid oxycodone, and 330 grams of oxycodone mixed with other liquids.
From the investigation, law enforcement determined that between at least May 1, 2009, through March 8, 2017, SHUFFORD was responsible for the distribution of over 1,900 grams of cocaine base (crack). Moreover, at the sentencing hearing, the court determined that the defendant was a “career offender” in that he had two previous convictions for drug trafficking offenses.
This case was prosecuted federally as part of the United States Department of Justice’s Opioid Initiative and the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina.
Implemented in March 2018, the Take Back North Carolina Initiative emphasizes the regional assignment of federal prosecutors to work with local, state and federal law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. The initiative targets those organizations and individuals who are responsible for increasing violent crime rates and drug trafficking – quickly routing the cases to federal court when prosecution in that venue would deliver the most significant impact.
The investigation of this case was conducted by the Wilmington FBI Coastal Carolina Criminal Enterprise Task Force consisting of the FBI, New Hanover County Sheriff's Office, Brunswick County Sheriff's Office, Wilmington Police Department, and the North Carolina State Bureau of Investigation. Assistant United States Attorney Laura Howard prosecuted the case on behalf of the United States.
Two Members of the Westside Crips Criminal Street Gang Plead Guilty to Racketeering Conspiracy Relating to Sex Trafficking, Drug Trafficking, and Other Violent CrimesRead the Press Release
NEWS RELEASE SUMMARY – August 31, 2018
SAN DIEGO – Two gang members of the Westside Crips pleaded guilty today for their participation in a racketeering conspiracy involving sex trafficking, narcotics trafficking, and other violent crimes as well as possession of a controlled substance with the intent to distribute.
Corey DeShawn Austin (aka “Westwood”) and Travion McHenry (aka “Too Much”) admitted their respective membership and association with the Westside Crips, who primarily operated in Oceanside and elsewhere. Sentencing for Austin is scheduled for December 14, 2018. McHenry is scheduled to be sentenced on October 19, 2018.
In furtherance of the RICO conspiracy, Austin, the lead defendant, admitted he engaged in promoting prostitution of adult females between 2013 and 2015, including while he was in state custody for another offense. Austin further admitted he possessed narcotics for sale in 2013 with co-defendant McHenry and posted photos of himself throwing up gang signs and wearing gang colors showing his allegiance to Westside Crips on social media between 2013-2016.
To further his role in the RICO conspiracy, McHenry admitted he committed a 2012 home invasion robbery with two other coconspirators during which the victims were robbed at gunpoint. He also admitted he possessed narcotics for sale in 2013 with co-defendant Austin and posted photos of himself throwing up gang signs and wearing gang colors showing his allegiance to Westside Crips on social media between 2012-2014.
“Gang members, their associates and those who assist them will not be permitted to exploit members of our community for their own personal gain and notoriety by promoting sex trafficking, narcotics trafficking, and violent crime,” said U.S. Attorney Adam L. Braverman.
“One of the top priorities for the DEA in San Diego is dismantling violent street gangs that profit by selling drugs in our community. The profit, cold hard cash, in turn fuels the violence on our streets,” said Special Agent in Charge Karen Flowers. “DEA will continue to target and put away violent street gang members like Mr. Austin and Mr. McHenry because it makes San Diego County a safer place to live.”
“For over a decade, this sophisticated street gang terrorized the streets of Oceanside and the surrounding areas for profit,” said IRS Criminal Investigation’s Special Agent in Charge R. Damon Rowe. “Our agency plays a unique role in federal law enforcement’s resolve to dismantle criminal gang enterprises. Our agents target the profit and financial gains of these violent organizations, following the money in an effort to disrupt these organizations and bring their members to justice.”
“The Oceanside Police Department would like to thank the US Attorney's Office and other law enforcement agencies for their collaboration and hard work during this operation. “It is collective efforts like this that highlight why the San Diego region is a model for other law enforcement agencies to emulate, to keep their communities safe,” said Oceanside Police Chief Frank McCoy.
The remaining defendant, William Bright, is set for a motion hearing on October 1, 2018. The other defendants have pleaded guilty and many have been sentenced for their participation in the RICO conspiracy.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANTS Case Number 17cr0270-JAH
Corey DeShawn Austin aka “Westwood” Age: 38 Oceanside, CA
Travion McHenry aka “Too Much” Age: 26 Oceanside, CA
SUMMARY OF CHARGES
Title 18, United States Code, Section 1962(d) - Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity; Title 18, United States Code, Section 1963 - Criminal Forfeiture Maximum Penalties: 20 years’ incarceration, a fine of $250,000, three years of supervised release
AGENCIES
North County Narcotics Task Force
Drug Enforcement Administration
Oceanside Police Department
Internal Revenue Service
Two Individuals Charged with Tax Fraud and Aggravated Identity TheftRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Marien Torres Acevedo, age 35, of Allentown, Pennsylvania, and Francisco Rodriguez Polanco, age 34, of the Bronx, New York, were indicted by a federal grand jury with conspiring to defraud the government, and six counts of theft of government money and aggravated identity theft. The indictment was returned on April 10, 2018, but remained under seal until the defendants were both apprehended.
According to United States Attorney David J. Freed, the indictment charges Acevedo, and Polanco with conspiring to defraud the government between January 1, 2015 and July 9, 2016. The indictment alleges that the coconspirators stole individuals’ identities, and used them to prepare and file false tax returns. The coconspirators then allegedly obtained the refund checks issued by the U.S. Treasury pursuant to those false tax returns. Acevedo and Polanco and their coconspirators took possession of the refund checks, forged names and social security numbers on them, and cashed them at check cashing businesses in the Middle District of Pennsylvania. Acevedo and Polanco and their coconspirators are charged with cashing at least $113,649.17 in fraudulently obtained Treasury checks, and attempting to cash an additional $41,349.67 worth of checks.
The case was investigated by the Department of the Treasury’s Office of the Inspector General, the Internal Revenue Service, Homeland Security Investigations, and other federal and state law enforcement agencies. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law for the most serious charges are up to 10 years of imprisonment. The aggravated identity theft charges carry a two-year consecutive mandatory minimum term of imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two Indicted for Making Corporate Contributions to U.S. Senate CampaignRead the Press Release
The former president of a Kentucky-based corporation and a political consultant were both indicted today for using corporate funds to make contributions to the campaign of a candidate for U.S. Senate and for causing the concealment of these contributions from the Federal Election Commission (FEC).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert M. Duncan Jr. for the Eastern District of Kentucky, and Special Agent in Charge Amy S. Hess of the FBI’s Louisville Field Office, made the announcement.
A federal grand jury in Lexington returned an indictment charging Gerald G. Lundergan, 71, of Lexington, Kentucky, with one count of conspiracy, one count of making corporate campaign contributions, four counts of causing the submission of false statements to the FEC, and four counts of causing the falsification of documents with the intent to obstruct and impede a matter within the FEC’s jurisdiction. The indictment also charges Dale C. Emmons, 66, of Richmond, Kentucky, with one count of conspiracy, one count of making corporate campaign contributions, two counts of causing the submission of false statements, and two counts of causing the falsification of documents with the intent to obstruct and impede.
The indictment alleges that Lundergan used the funds of S.R. Holding Company Inc. (“S.R. Holding”), a company he owned, to pay for services provided by consultants and vendors to a campaign for U.S. Senate in the 2014 election cycle. The candidate for this seat was Lundergan’s family member. The indictment alleges that Lundergan and another S.R. Holding employee issued a number of payments from S.R. Holding funds for services that included audio-video production, lighting, recorded telephone calls, and campaign consulting between July 2013 and December 2015. The payments referenced in the indictment allegedly totaled $194,270.39 over time.
According to the indictment, these payments included $119,145.45 paid from S.R. Holding to Emmons and his company during this period for services to the campaign. Emmons also used the funds of his corporation, Emmons & Company Inc., to pay other vendors and a campaign worker for services rendered to the campaign. Over time, according to the indictment, Emmons paid $38,603.80 to these vendors for recorded telephone calls, technological support services, and other campaign-related expenses.
The indictment alleges that Lundergan and Emmons concealed these activities from other officials associated with the campaign. Their concealments allegedly caused the campaign unwittingly to file false reports with the FEC, in that the reports failed to disclose the source and amount of the corporate contributions.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until proven guilty beyond reasonable doubt in a court of law.
The FBI is investigating the case. Trial Attorney Robert J. Heberle of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Andrew T. Boone and Kate K. Smith of the Eastern District of Kentucky are prosecuting the case.
Two Indicted for Making Corporate Contributions to U.S. Senate CampaignRead the Press Release
WASHINGTON – The former president of a Kentucky-based corporation and a political consultant were both indicted today for using corporate funds to make contributions to the campaign of a candidate for U.S. Senate and for causing the concealment of these contributions from the Federal Election Commission (FEC).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert M. Duncan Jr. for the Eastern District of Kentucky, and Special Agent in Charge Amy S. Hess of the FBI’s Louisville Field Office, made the announcement.
A federal grand jury in Lexington returned an indictment charging Gerald G. Lundergan, 71, of Lexington, Kentucky, with one count of conspiracy, one count of making corporate campaign contributions, four counts of causing the submission of false statements to the FEC, and four counts of causing the falsification of documents with the intent to obstruct and impede a matter within the FEC’s jurisdiction. The indictment also charges Dale C. Emmons, 66, of Richmond, Kentucky, with one count of conspiracy, one count of making corporate campaign contributions, two counts of causing the submission of false statements, and two counts of causing the falsification of documents with the intent to obstruct and impede.
The indictment alleges that Lundergan used the funds of S.R. Holding Company Inc. (“S.R. Holding”), a company he owned, to pay for services provided by consultants and vendors to a campaign for U.S. Senate in the 2014 election cycle. The candidate for this seat was Lundergan’s family member. The indictment alleges that Lundergan and another S.R. Holding employee issued a number of payments from S.R. Holding funds for services that included audio-video production, lighting, recorded telephone calls, and campaign consulting between July 2013 and December 2015. The payments referenced in the indictment allegedly totaled $194,270.39 over time.
According to the indictment, these payments included $119,145.45 paid from S.R. Holding to Emmons and his company during this period for services to the campaign. Emmons also used the funds of his corporation, Emmons & Company Inc., to pay other vendors and a campaign worker for services rendered to the campaign. Over time, according to the indictment, Emmons paid $38,603.80 to these vendors for recorded telephone calls, technological support services, and other campaign-related expenses.
The indictment alleges that Lundergan and Emmons concealed these activities from other officials associated with the campaign. Their concealments allegedly caused the campaign unwittingly to file false reports with the FEC, in that the reports failed to disclose the source and amount of the corporate contributions.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until proven guilty beyond reasonable doubt in a court of law.
The FBI is investigating the case. Trial Attorney Robert J. Heberle of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Andrew T. Boone and Kate K. Smith of the Eastern District of Kentucky are prosecuting the case.
Two Foreign Nationals Charged with Credit Card FraudRead the Press Release
The United States Attorney’s Office has charged two foreign nationals with credit card fraud. Mrejuica Madalin, 30, and Laszlo Solomes, 31, were arrested by St. Louis County Police on Tuesday, August 28, 2018 on suspicion of credit card fraud.
On Tuesday morning, the pair were observed using a succession of different cards at an ATM in the 4300 block of Telegraph Road in South St. Louis County. Responding to a citizen complaint, the St. Louis County Police stopped their vehicle and discovered a large quantity of cash, stolen mail and financial documents in the name of a third party. The investigation continued and a search of the pair’s hotel room revealed a large cache of counterfeit gift cards and stored value cards, a laptop computer and a card encoding machine.
The United States Attorney’s Office has sought detention of Madalin and Solomes as it appears neither is legally in the United States. Madalin was traveling under a counterfeit Belgian passport in the name of another. Solomes was in possession of a valid Hungarian passport but appears not to hold a valid visa to be in the United States.
Both men appeared in federal court on a criminal complaint charging them with possession of 15 or more counterfeit access devices in violation of Title 18, United States Code Section 1029(a)(3), which carries a maximum term of imprisonment of 10 years, a maximum fine of $250,000 or both.
The case was investigated by the St. Louis Office of the U.S. Postal Inspection Service, the St. Louis County Police Department, the Immigration and the Customs Enforcement (ICE) Bureau of the Department of Homeland Security. Tom Albus is handling the case for the United States Attorney’s Office.
Three Phoenix Residents Sentenced for Attempted Financial Aid Fraud of over $5 MillionRead the Press Release
PHOENIX – This week, Jacqueline Scroggins, 53, of Avondale, Ariz., was sentenced by U.S. District Judge David G. Campbell to 37 months’ imprisonment, followed by 100 hours of community service. Scroggins had previously pleaded guilty to conspiracy and mail fraud. Co-defendants Amethyst Nicole Henderson, 30, of Phoenix, Ariz., previously pleaded guilty to conspiracy and financial aid fraud and was sentenced to 27 months’ imprisonment and 50 hours community service, and Jamar Britt, 36, of Phoenix, Ariz., also previously pleaded guilty to conspiracy and was sentenced to 15 months’ imprisonment and 50 hours community service. Restitution of $1,669,166 was ordered jointly as to all defendants.
All defendants admitted to conspiring to commit mail and financial aid fraud to further a scheme to attempt to obtain approximately $5,295,116 in federally-insured student aid from the United States Department of Education and colleges within the Maricopa County Community College District. As part of the scheme, they applied for aid in the names of approximately 483 people who did not plan to attend college and caused the payment of approximately $1,669,166 in student aid to the College District and the conspirators.
The investigation in this case was conducted by the Department of Education – Office of Inspector General, United States Postal Inspection Service, and the Federal Bureau of Investigation. The prosecution was handled by Frederick A. Battista, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-16-1461-PHX-DGC
RELEASE NUMBER: 2018-116_ Scroggins etal
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Three Individuals and a Corporation Plead Guilty in Multi-Million Health Care Fraud and Money Laundering Scheme Involving Alcohol and Drug Addiction Treatment Centers and Clinical Laboratories Scheme Involving Alcohol and Drug Addiction Treatment CentersRead the Press Release
Smart Lab LLC, the corporation’s Chief Executive and Chief Operating Officers, as well as the top sales representative pled guilty for their participation in a multi-million health care fraud scheme that involved the filing of fraudulent insurance claim forms, defrauding health care benefit programs, and money laundering.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Robert Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Jimmy Patronis, Florida Chief Financial Officer; Michael J. Waters, Special Agent in Charge, Amtrak Office of Inspector General (Amtrak OIG); Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA); and Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), made the announcement.
H. Hamilton Wayne, a/k/a “Hawkeye,” 40, of Palm Beach Gardens, Justin Morgan Wayne, 39, of Boca Raton, and Smart Lab LLC, of Palm Beach Gardens, pled guilty today to one count of conspiracy to commit health care fraud. The Waynes and the corporation are scheduled to be sentenced on November 1, 2018 at 11 a.m. before United States District Judge Donald M. Middlebrooks.
Yesterday, Lanny Fried, 41, of Miami, pled guilty to one count of conspiracy to commit money laundering. Sentencing for Fried is scheduled for November 7, 2018 at 3 p.m. before United States District Judge Robin Rosenberg.
According to court documents, Smart Lab LLC was established by Chief Executive Officer H. Wayne, and Chief Operating Officer J. Wayne, to perform confirmatory urinalysis testing. Smart Lab, H. Wayne and J. Wayne established bank accounts to receive proceeds of insurance claims for medically unnecessary urinalysis testing and to pay kickbacks and bribes to individuals and entities that referred urine samples to Smart Lab for testing.
H. Wayne and J. Wayne established employment agreements wherein H. Wayne and co-conspirators would solicit bodily fluid samples from substance abuse treatment centers that would be submitted to Smart Lab for expensive confirmatory drug testing. In exchange, Smart Lab would kick back a portion of the insurance reimbursements, disguised as payments for sales commissions, to co-conspirators, understanding that a portion of these payments would then be paid, directly or indirectly, to owners, operators, or clinicians at the substance abuse treatment centers that referred the testing of urine samples from insured patients.
To achieve the goal, Smart Lab, H. Wayne, J. Wayne, and co-conspirators developed form standing orders and drug testing protocols that provided for duplicative, medically unnecessary, and expensive confirmatory testing regardless of the individual needs of any patients. To further the scheme, co-conspirator treatment center owners required the insured substance abuse treatment center patients to submit to confirmatory drug testing approximately three times per week, which Smart Lab, H. Wayne, J. Wayne, and others could bill to the insurance plans. Smart Lab, H. Wayne and J. Wayne elected not to collect mandatory co-payments, deductibles, and other co-insurance from patients that could cause patients to be unable or unwilling to submit to testing. The defendants did not inform the insurance plans that they were not collecting the required co-insurance payments.
In addition, Fried, a top Smart Lab sales representative, had an agreement with Smart Lab to receive commissions of approximately 50% of the insurance reimbursements for the substance abuse treatment facilities he referred to Smart Lab. These payments were classified as commissions when in reality they were kickbacks for the referral of excessive, medically unnecessary, fraudulent and duplicative confirmatory drug testing. Fried served as the sales representative for Smart Lab’s largest account, Reflections Treatment Center in Margate, Florida. Fried used a portion of these commissions to pay Reflections’ owner, Kenneth Chatman, illegal cash kickbacks to induce him to continue referring urine samples to Smart Lab. Using Fried as a “middleman” for the payments to Chatman disguised the true ownership and purpose of the funds. From 2005 through 2017, Smart Lab paid Fried over $600,000. These payments came from proceeds of health care fraud.
Fried also recruited friends and business associates to engage in similar activity. These individuals signed employment agreements with Smart Lab that purported to make them “sales representatives”. These agreements were used to make it appear that monies paid to Fried and others were for services rendered. The employment contracts were created to hide the true purpose and recipient of the payments. Fried and the others involved did not perform any actual services for Smart Lab and they were paid “commissions” from the proceeds of health care fraud. These funds were then disbursed to others, per Fried’s instructions.
Mr. Greenberg commended the investigative efforts of the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI, IRS-CI, Florida Division of Investigative and Forensic Services, Amtrak OIG, DOL-EBSA, and NICB. These cases are being prosecuted by Assistant United States Attorneys A. Marie Villafaña and Alexandra Chase.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov at www.usdoj.gov/usao/fls.
The United States files False Claims Act complaint against Charles C. Adams, M.D. and affiliated entitiesRead the Press Release
ATLANTA – The United States has filed a False Claims Act complaint against Charles C. Adams, M.D.; Charles C. Adams, M.D., P.C. d/b/a Full Circle Medical Center and Personal Integrative Medicine PLLC (the “Adams Defendants”). The lawsuit alleges that the Adams Defendants were responsible for the submission of false claims to Medicare for medically unnecessary chelation therapy.
“When healthcare providers seek to defraud Medicare by billing for medically unnecessary services, they deplete the funds available to patients who are in need of legitimate medical procedures, while also putting their patients potentially at risk,” said U. S. Attorney Byung J. “BJay” Pak. “This complaint should serve as notice to others who consider similar practices that we will vigorously pursue them.”
“Medically unnecessary services waste millions in taxpayer dollars each year and undercut the public’s trust in the medical profession,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “The OIG will continue to work with the Department of Justice to ensure the financial well-being of federal health care programs.”
The United States’ complaint alleges that, between November 2008 and September 2015, Dr. Adams undertook chelation therapy and administered the chelation drug edetate calcium disodium (EDTA) to Medicare beneficiaries who were not suffering from lead poisoning. Chelation therapy is a rarely used treatment that is generally only indicated for individuals suffering from lead poisoning and other forms of heavy metal poisoning. EDTA, one of the drugs used in chelation therapy, is indicated only for lead poisoning and lead encephalopathy.
Lead poisoning is diagnosed by determining whether the patient has had recent exposure to lead, and by testing the patient’s blood lead level (BLL). A symptomatic adult patient should only be chelated if there is a significantly heightened BLL (e.g. in excess of 50 mcg/dL). Dr. Adams chelated patients with no lead detected in their blood, or with only exceedingly low BLLs (e.g., less than 2 mcg/dL).
Additionally, Dr. Adams admitted that he does not treat lead poisoning or any other type of heavy metal poisoning. Nonetheless, he submitted hundreds of claims for Medicare beneficiaries for his use of EDTA. Dr. Adams advertised chelation as “alternative” and “integrative” therapy that can be used as an “anti-aging” treatment, and as a way to “improve circulation problems, stimulate bone growth, improve cholesterol and lower blood pressure.” However, Medicare does not cover EDTA chelation therapy for alternative uses such as these.
The United States contends that these chelation treatments are contrary to the standard of care and medically unnecessary. EDTA has a black box warning indicating that it “is capable of producing toxic effects which can be fatal.” Its adverse side effects include fever, chills, malaise, fatigue, myalgia, arthralgia, hypotension, cardiac rhythm irregularities, acute necrosis of proximal tubules (which may result in fatal nephrosis), nausea, vomiting, hypercalcemia, tremors, headaches, numbness and others. Inappropriate use of EDTA risks these harms without benefit.
This matter was investigated by Assistant U.S. Attorney Paris Wynn with the U.S. Attorney’s Office for the Northern District of Georgia and the Department of Health and Human Services - Office of Inspector General.
The claims asserted against the defendants are allegations only and there has been no determination of liability. The lawsuit is captioned United States v. Charles C. Adams, M.D., et al., Civil Action No. 4:18-cv-00191-HLM (N.D.Ga. 2018).
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Texas Man Pleads Guilty to "Sextorting" Minors in IllinoisRead the Press Release
PEORIA, Ill. – Sentencing is scheduled in January 2019, for a Texas man, Mark P. Barnwell, 35, who pleaded guilty to producing child pornography in 2016 and threatening minor victims in Illinois and seven other states while he was required to register as a sex offender.
Barnwell, of Whitehouse, Texas entered guilty pleas in Peoria before U.S. District Judge Joe Billy McDade on Aug. 29. Sentencing is scheduled on Jan. 9, 2019.
According to admissions made in connection with his guilty plea, Barnwell, a registered sex offender, used false personas on Facebook and controlled multiple female-presenting profiles to contact female Facebook users, including minors, and advertised a modeling opportunity he claimed would pay up to thousands of dollars per photo shoot.
At Barnwell’s urging, the minors who accepted the offer then took, and sent to him, photographs which they believed were being produced for the purposes of a modeling portfolio. The minor victims believed they would be paid by cash, check, or direct deposit once they completed the modeling portfolio process. At Barnwell’s explicit direction, the photographs taken by the minors progressed from various stages of undress to sexually suggestive and/or sexually explicit photographs of themselves.
Once he obtained compromising images, Barnwell threatened to injure the minor victims’ reputations and embarrass them by posting their nude pictures online if they failed to comply with demands for additional images. In total, Barnwell used this scheme to obtain nude photographs from 43 minor victims located in nine judicial districts across eight states.
In addition to the material, including videos and images, relating to sexual exploitation of children discovered on Barnwell’s devices, law enforcement authorities also found multiple videos captured by Barnwell, including several where he filmed up women’s skirts in public or attempted to do so. Authorities additionally discovered a large number of videos where Barnwell surreptitiously filmed women using public bathrooms. The authorities also discovered what is believed to be the hidden camera he used to capture the videos.
The charges are the result of a joint investigation by the U.S. Secret Service, the Peoria Police Department, and the Peoria County Sheriff’s Office. Vital assistance was provided by the United States Attorneys’ offices for the Central District of California, Southern District of Mississippi, District of Nevada, Eastern District of Texas, Northern District of Texas, Western District of Washington, Northern District of Iowa, and Southern District of West Virginia. The matter is being prosecuted by Assistant U.S. Attorneys Ronald Hanna and Katherine Legge of the Central District of Illinois and Trial Attorney William Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Summit Man Sentenced to Seven Years in Federal Prison for Sexual Abuse of a ChildRead the Press Release
United States Attorney Ron Parsons announced today that U.S. District Judge Charles B. Kornmann sentenced a Summit, South Dakota, man convicted of sexual abuse of a child on August 29, 2018.
Desi Duncan Campbell, age 39, was sentenced to 7 years in federal prison, followed by 5 years of supervised release, and ordered to pay $100 in a special assessment to the Federal Crime Victims Fund.
Between approximately 2004 and 2008, Campbell engaged in sexual acts with a child. At the times of Campbell’s conduct, the victim was under the age of twelve.
This case was investigated by the Sisseton-Wahpeton Sioux Tribe’s Law Enforcement, the Federal Bureau of Investigation, and the South Dakota Division of Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Jeremy R. Jehangiri.
Campbell will self-surrender to federal prison on September 11, 2018, to begin serving his sentence.
Suboxone Clinic Doctor Pleads Guilty to Unlawfully Dispensing Controlled Substances, Health Care FraudRead the Press Release
PITTSBURGH, PA - A prescribing physician with SKS Associates, an opioid treatment facility located in Johnstown, PA, guilty in federal court to charges of dispense and distribution of controlled substances, conspiracy to distribute controlled substances and health care fraud, United States Attorney Scott W. Brady announced today.
Dr. Michael Cash, 50, of Indiana, PA pleaded guilty to three counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Cash conspired to create and submit unlawful prescriptions for buprenorphine, and then unlawfully dispensed those controlled substances to other persons. Cash also committed health care fraud by submitting fraudulent claims to Medicare, for payments to cover the costs of the unlawfully prescribed buprenorphine.
Judge scheduled sentencing for January 17, 2019 at 2:15 p.m. The law provides for a total sentence of 30 years in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Cash on bond
Assistant United States Attorney Robert S. Cessar and Michael L. Ivory are prosecuting this case on behalf of the government.
The investigation leading to the filing of charges in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations and the Pennsylvania Bureau of Licensing.
Southern Colorado Man Sentenced for False Statement in the Application and Use of PassportsRead the Press Release
DENVER – A Southern Colorado man, Ronald Ray Horner, age 58, of Huerfano County, was sentenced today by U.S. District Court Judge Philip A. Brimmer to serve 27 months in federal prison, followed by 3 years on supervised release for making false statements in the application and use of passports, U.S. Attorney Bob Troyer, and Angela Brenner, Resident Agent-in-Charge of the U.S. Department of State’s Diplomatic Security Service, Denver Resident Office (DSS) announced. Horner, who appeared at the sentencing hearing in custody, was remanded at its conclusion.
On March 15, 2017, Horner was indicted by a federal grand jury in Denver. On June 18, 2018, Horner was found guilty following a one-day trial. The jury deliberated for about 30 minutes before reaching their verdict.
During the summer of 2016, Horner was indicted in the District of Montana for the offense of Transportation of Child Pornography. As a result of that offense, the defendant appeared in court, and was released on bond, subject to various conditions. Two of those conditions were that he was required to surrender his passport and was ordered not to obtain another one.
On August 9, 2016, the defendant went to the United States Post Office in Walsenburg, Colorado and submitted an application for a passport. He claimed that he had lost his passport, explaining, “Passport was left in suitcase after vacation (Jan 2016). Suitcase had torn seam and was discarded. I forgot the passport was in the suitcase.” The defendant further explained that he threw the suitcase in a dumpster outside the Mini Mart in Walsenburg, Colorado in January 2016. He submitted these forms, along with the requisite forms of identification, as his application for a new passport.
Shortly thereafter, the defendant received a new passport in the mail. He left Colorado, traveled to Mexico on September 3, 2016, and then made his way through multiple countries in South America, including Brazil, Uruguay, and Guyana. He ultimately ended up in Trinidad and Tobago after being deported from Guyana. A DSS Special Agent spoke with Horner in Trinidad and Tobago, confiscated the passport, and arranged for the defendant’s transportation back to the United States. Following the defendant’s return to the United States, he was convicted of Transportation of Child Pornography in Montana and sentenced to 154 months. Judge Brimmer ordered the 27-month sentence in this case to be served consecutively to that sentence.
“This case demonstrates why keeping our passport system secure is so important,” said U.S. Attorney Bob Troyer. “By lying to get a new passport, a person charged with child porn crimes was able to travel to 5 other countries while he was under indictment. We can’t and won’t allow that.”
“The Diplomatic Security Service is firmly committed to making sure that those who commit passport and visa fraud face consequences for their criminal actions,” said Resident Agent in Charge Angela Brenner of the Diplomatic Security Service. “The strong relationship we enjoy with the U.S. Attorney’s Office and other law enforcement agencies around the world is vital towards ensuring the integrity of U.S. travel documents and protecting greater U.S. interests.”
This case was investigated by the U.S. State Department’s Diplomatic Security Service. The defendant was prosecuted by Special Assistant U.S. Attorneys Daniel McIntyre and Assistant U.S. Attorneys Robert Brown and Rebecca Weber.