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Thursday 23 August 2018
New Bedford Fishing Boat Captain Pleads Guilty to Interfering with Coast Guard InspectionRead the Press Release
BOSTON - A former New Bedford fishing boat captain pleaded guilty today in federal court in Boston to interfering with a U.S Coast Guard (USCG) inspection of a fishing boat off the Massachusetts coast.
Thomas D. Simpson, 57, of South Portland, Maine, pleaded guilty today to one count of destruction or removal of property subject to seizure and inspection. U.S. District Court Judge Indira Talwani scheduled sentencing for Nov. 28, 2018.
Simpson was the captain of the Fishing Vessel Bulldog, a New Bedford based commercial fishing vessel and one of several fishing vessels owned by Carlos Rafael. On Sept. 25, 2017, Rafael, often referred to as “The Codfather,” was sentenced in federal court in Boston to 46 months in federal prison on a variety of charges related to the operation of his commercial fishing business.
On May 31, 2014, the Bulldog was engaged in commercial fishing off the cost of Massachusetts when the USCG boarded the vessel to perform a routine inspection of the Bulldog and its fishing equipment. At the time of the boarding, the Bulldog’s net was deployed in the water and the crew was actively fishing. The USCG Boarding Officer encountered Simpson in the Bulldog’s wheelhouse and instructed Simpson to haul in the fishing net for inspection. The fishing net is controlled from the wheelhouse by an electric winch, which Simpson activated, but instead of hauling the fishing net onto the vessel, he let out more of the cable attaching the net to the vessel. When the USCG Boarding Officer realized that Simpson was letting the net out, he instructed Simpson to stop and to haul the net in. Simpson ignored the order and continued to let out cable until the net became detached from the Bulldog and sank.
The USCG and the National Oceanic and Atmospheric Administration (NOAA) hired a salvage company, at a cost of approximately $15,000, to retrieve the net from the ocean floor. An inspection of the net revealed that it had three distinct and separate layers of netting in violation of commercial fishing regulations. When two or more fishing nets are placed on top of each other, the size of the openings are reduced. The reduced size net openings hinder younger, smaller fish from being able to escape the net. The prohibition on double or triple lining fishing nets is intended to maintain the size and viability of the fishing stock and reduce over fishing. The use of illegal nets may result in fines and forfeiture of fishing equipment.
Simpson faces a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Richard D. Cox, Special Agent in Charge of the U.S. Coast Guard Investigative Services, Northeast Region; and James Landon, Director of the U.S. Department of Commerce National Oceanic and Atmospheric Administration, Office for Law Enforcement, Northeast Enforcement Division, made the announcement today. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit is prosecuting the case.
Muldrow Man Pleads Guilty to Possession of Material Involving Sexual Exploitation of MinorsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Ryan Edward Offineer, age 41, of Muldrow, Oklahoma, pled guilty to Possession Of Certain Material Involving The Sexual Exploitation Of Minors, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and 2252(b)(2), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleged that beginning in or about June 2013, to on or about March 7, 2018, within the Eastern District of Oklahoma, the defendant, did knowingly possess, attempt to possess and access with intent to view, matters which contained visual depictions, as that term is defined in Title 18, United States Code, Section 2256(5), which said visual depictions involved the use of minors engaging in sexually explicit conduct, as that term is defined in Title 18, United States Code, Sections 2256(2)(A)-(B), and said visual depictions were of such sexually explicit conduct and had been transported in interstate commerce by computer.
The charges arose from an investigation by the Muldrow Police Department and Homeland Security Investigations (HSI).
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney John David Luton represented the United States.
Missoula Man Sentenced to 10 Years for Meth and Gun PossessionRead the Press Release
MISSOULA - Robert Craig Smith, 39, of Missoula, was sentenced today to a total of 120 months in prison to be followed by 5 years of supervised release. Smith pleaded guilty to conspiracy to distribute methamphetamine and possessing a firearm in furtherance of drug trafficking. Chief United States District Judge Dana L. Christensen sentenced Smith to 60 months for each count, to run consecutively.
Beginning in the Spring of 2015 and continuing through January of 2018, Smith distributed more than a pound of methamphetamine around the Missoula area. Smith also exchanged firearms for methamphetamine on several occasions.
The case was prosecuted by Assistant U.S. Attorney Tara Elliott and investigated by the FBI’s Montana Regional Violent Crime Task Force.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
Man Pleads Guilty to Being a Felon in Possession of FirearmsRead the Press Release
U.S. Attorney Duane A. Evans announced that MELVIN WALKER, age 46, pleaded guilty yesterday to being a felon in possession of firearms before the Honorable Sarah S. Vance.
According to Court documents, in July 2017, a search of WALKER’S residence revealed four (4) pistols, three of which had rounds in the chamber. The firearms were identified as a Springfield XD 9mm, serial number XD824567; Taurus PT 1911 .45, serial number NAT57516; SCCY Industries 9mm, serial number 340125, and a Taurus .38 special revolver, serial number XG15534. WALKER was previously convicted of a felony on August 2, 2010 in Criminal District Court for the Parish of Orleans in the State of Louisiana in case number 489-303 “B” for possession with intent to distribute marijuana in violation of La. R.S. 14:966(A)(2).
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in this matter. Special Assistant United States Attorneys Emily K. Greenfield and Assistant United States Attorney Michael M. Simpson are in charge of the prosecution.
Local Businessman Sentenced for Involvement in Pill MillRead the Press Release
U.S. Attorney Duane A. Evans announced that STEPHEN GUILBAULT, age 44, of Gonzales, Louisiana, was sentenced today after previously pleading guilty for his role in controlled substances violations and health care fraud.
According to court documents, GUILBAULT pleaded guilty on November 15, 2017 to one count of conspiracy to illegally distribute oxycodone, hydrocodone, and dextroamphetamine, and conspiring to commit health care fraud. GUILBAULT was the former co-owner and operator of Gulf South Physician’s Group in Metairie, Louisiana, along with Shannon Ceasar, M.D.
Ceasar ran what was, in essence, a “pill mill,” i.e., an operation in which he prescribed controlled substances to drug seekers and drug abusers without a legitimate medical purpose and in exchange for a flat fee. Ceasar was previously sentenced to 120 months in the Bureau of Prisons for his involvement in this conspiracy.
GUILBAULT, who was not a licensed physician, illegally wrote prescriptions from Ceasar’s prescription pad to himself and others. GUILBAULT also issued medically unnecessary prescriptions for patients who had insurance coverage through Medicare (Part D) and Medicaid, which caused a loss of $46,670.45 to the government. GUILBAULT agreed to pay back this amount to the government in restitution.
U.S. District Judge Martin L.C. Feldman sentenced GUILBAULT to 24 months imprisonment, followed by a two-year term of supervised release.
Lawrence Man Pleads Guilty to Cocaine TraffickingRead the Press Release
CONCORD - United States Attorney Scott W. Murray announced today that Jose R. Almonte-Tejeda, 40, formerly of Lawrence, Massachusetts, pleaded guilty to unlawfully possessing with the intent to distribute over 500 grams of cocaine.
According to court documents and statements made in court, on April 27, 2018, the New Hampshire State Police’s Mobile Enforcement Team conducted a traffic stop on a vehicle driven by Almonte-Tejeda on I-95 in the area of Hampton Falls, New Hampshire. A subsequent search of the vehicle resulted in the seizure of 832 grams of cocaine from Almonte-Tejeda’s vehicle.
Almonte-Tejeda is scheduled to be sentenced on November 29, 2018.
“Drug traffickers who come to New Hampshire should expect that they will be arrested and prosecuted,” said U.S. Attorney Murray. “We will continue to work closely with our law enforcement partners to stop the flow of illegal drugs by arresting and prosecuting drug dealers.”
This investigation was conducted by the New Hampshire State Police and the Drug Enforcement Administration. Assistant United States Attorney Jennifer Cole Davis is prosecuting the case.
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Justice Department Secures Denaturalization of Convicted War Criminal Who Fraudulently Obtained Refugee Status and U.S. CitizenshipRead the Press Release
WASHINGTON – On August 15, Judge Thomas F. Hogan of the U.S. District Court for the District of Columbia entered an order that revoked the naturalized U.S. citizenship of a convicted war criminal. The court held that defendant Edin Dzeko, a native of the former Yugoslavia, procured his U.S. citizenship illegally and by concealment of material facts and willful misrepresentation. The court’s order was based, in part, on Dzeko’s admission that he misrepresented and concealed his military service on immigration forms and lied while under oath at his naturalization interview.
“War criminals are not entitled to safe haven in the United States, and we will not allow individuals who commit such atrocities to take advantage of our immigration system,” said Acting Assistant Attorney General Chad A. Readler. “This case sends the message that the Department will remain resolute in our commitment to prosecute those who seek to gain, or have gained, U.S. citizenship unlawfully.”
“This case demonstrates that the United States will protect the integrity of its refugee programs,” said U.S. Attorney Jessie K. Liu. “Working with our law enforcement partners, we will continue to target war criminals who attempt to abuse the process to gain entry into our country.”
Dzeko, 46, was part of an elite unit of the Army of the Republic of Bosnia and Herzegovina that attacked the village of Trusina in April 1993, in what is known as the Trusina massacre. The unit allegedly targeted Bosnian Croats who resided in the village because of their Christian religion and Croat ethnicity, killing 22 unarmed individuals including women and the elderly. A Bosnian court previously found that Dzeko played a key role in the massacre, serving as part of a firing squad that executed six unarmed prisoners of war and civilians. Dzeko was admitted to the United States as a refugee before naturalizing in 2006.
In June 2014, Dzeko was convicted in a Bosnian court of war crimes against prisoners of war and war crimes against civilians, and held responsible for eight killings, including the six described above. Dzeko is still serving his 13-year prison sentence in Bosnia and Herzegovina. The Justice Department is also pursuing the denaturalization of Sammy Rasema Yetisen, aka Rasema Handanovic, one of Dzeko’s fellow soldiers and another perpetrator of the Trusina massacre.
“Those who commit such acts of inhumanity and abuse may not use lies and deceit to fraudulently call this country home,” said Brad Bench, Special Agent in Charge of Homeland Security Investigations (HSI) Seattle. “Today’s announcement marks the necessary carriage of justice, and I am proud of the professional investigators who upheld the law and order that defines our nation.”
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations Human Rights Violator and War Crimes Unit and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS) National Security and Affirmative Litigation Unit (NS/A Unit), with consultation and support from ICE’s Office of the Principal Legal Advisor (OPLA) Human Rights Law Section and Seattle Office of the Chief Counsel, and the Criminal Division’s Human Rights and Special Prosecutions Section.
The case was jointly prosecuted by Deputy Chief Timothy Belsan and Senior Counsel for National Security Aram Gavoor of OIL-DCS’s NS/A Unit and Trial Attorney Steven Platt of OIL-DCS, and Assistant U.S. Attorney Wynne Kelly of the U.S. Attorney’s Office for the District of Columbia.
Members of the public who have information about foreign nationals or naturalized U.S. citizens suspected of engaging in human rights abuses or war crimes are encouraged to call the ICE tip line at 1-866-DHS-2-ICE or to complete its online tip form; or the Justice Department’s Human Rights and Special Prosecutions Section at 1-202-616-2492. Callers may remain anonymous.
Jury Convicts Former Mexican Federal Police Officer for Illegal Drug TransportRead the Press Release
TUSCALOOSA – A federal jury on Tuesday convicted a former Mexican federal police officer on drug possession charges for packages of cocaine and morphine found hidden in the exhaust manifold of a pickup truck he was traveling in through Alabama last year, announced U.S. Attorney Jay E. Town and Drug Enforcement Administration Assistant Special Agent in Charge Bret Hamilton.
Following a two-day trial before U.S. District Judge L. Scott Coogler, the jury found ADRIAN HERNANDEZ PORTILLO, 35, of Mexico, guilty of conspiracy to possess with intent to distribute cocaine and morphine in north Alabama in January 2017. The jury also convicted Portillo on one count of possessing cocaine with intent to distribute, and one count of possessing morphine with intent to distribute. Portillo’s co-defendant, EDUARDO MENDEZ HERNANDEZ, 23, of North Carolina, pleaded guilty in May to the conspiracy charge. Hernandez is scheduled for sentencing Oct. 30. Portillo is scheduled for sentencing Dec. 11.
“Our law enforcement is on the job everyday working to stop those who attack our borders by smuggling drugs across them,” Town said. “These defendants chose to bring illegal drugs into the United States and for that they will spend years in one of our federal prisons.”
“This case is a result of great police work on the part of one local police officer while patrolling his area of responsibility and then excellent cooperation among local and federal law enforcement agencies,” Hamilton said. “The agents and officers who worked this case more than likely saved lives and our communities are safer by sending these defendants to federal prison.”
“The vast majority of the dangerous illicit drugs being sold in the U.S. are imported from Central and South America by various drug-trafficking organizations,” Hamilton said. “Hopefully, this will serve as a warning to others who enter our country with the intent to sell poison to our residents – When we catch you, you WILL go to prison.”
An investigator with Alabama’s 17th Judicial Circuit Drug Task Force stopped a Toyota pickup truck traveling north on Interstate 20/59 in Greene County on Jan. 27, 2017. Hernandez was driving and Portillo was the only passenger, according to evidence at trial. After the two men gave inconsistent stories about the nature of their trip and the officer noticed the men had multiple cell phones, but little luggage, he requested and received consent to search the vehicle.
Officers found about 6.5 kilograms, or about 14 pounds, of cocaine and more than a pound of morphine wrapped in silver tape and hidden in a compartment built into the truck’s intake manifold, according to evidence.
U.S. Customs and Border Protection records showed that Portillo, who had served as a federal police officer in Mexico from 2007 to 2014, had driven the Toyota truck from Mexico to Texas the day before it was stopped on the interstate in Alabama, according to testimony.
The penalty for both the conspiracy charge and the possession with intent to distribute cocaine charge is 10 years to life in prison and a maximum $10 million fine. The maximum prison penalty for the possession with intent to distribute morphine charge is 20 years.
DEA and the 17th Judicial Circuit Drug Task Force investigated the case, which Assistant U.S. Attorneys Austin Shutt and Greg Dimler are prosecuting.
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Janesville Man Found Guilty of Conspiring to Distribute MethamphetamineRead the Press Release
A man who conspired with others to distribute ice methamphetamine was convicted by a jury on August 22, 2018, after a three-day trial in federal court in Cedar Rapids.
Robert Lewis, age 43, from Janesville, Iowa, was convicted of conspiracy to distribute at least 500 grams of a mixture of methamphetamine and 50 grams of actual methamphetamine. The verdict was returned August 22, 2018, following about three hours of jury deliberations.
The evidence at trial showed that in the summer of 2013, Lewis began working with others to distribute ice methamphetamine throughout the Waterloo area. Lewis and his associates obtained methamphetamine from an out-of-state source of supply. The source shipped the methamphetamine via FedEx concealed in car part boxes. Each shipment contained multiple pounds of methamphetamine. Lewis and others then broke the methamphetamine down into smaller quantities for sale once it arrived in Iowa. Lewis also used his daughter to register a vehicle for the head of the drug organization and allowed other members of the conspiracy access to his home, referred to at trial as the “clubhouse,” for the purpose of repackaging and distributing methamphetamine. Lewis left Iowa in the fall of 2013, but continued to receive methamphetamine from his associates. For example, in January 2014, one person attempted to send Lewis methamphetamine hidden in a Hamburger Skillet prepared meal box. FedEx employees flagged the package as suspicious and investigators ultimately seized a quarter ounce of methamphetamine from inside the box.
Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Lewis remains in custody of the United States Marshal pending sentencing. Lewis faces a mandatory minimum sentence of ten years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and five years of supervised release following any imprisonment.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of Federal Bureau of Investigation, Iowa Division of Narcotics Enforcement, and the Tri-County Drug Enforcement Task Force (Waterloo Police Department; Cedar Falls Police Department; Waverly Police Department; Bremer County Sheriff’s Office; Black Hawk County Sheriff’s Office; LaPorte City Police Department; Evansdale Police Department; Hudson Police Department).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2084.
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Jackson Man Pleads Guilty to Aggravated Identity Theft and Falsely Using the Identity of a Veteran to Receive Government BenefitsRead the Press Release
Jackson, Miss. – Tierun Bush, 56, of Jackson, pled guilty today before U.S. District Judge Tom S. Lee to one count of aggravated identity theft and one count of theft of government funds and property, announced U.S. Attorney Mike Hurst.
From 2005 to 2018, Tierun Bush used the name, social security number and other identifiers of a U.S. military veteran to fraudulently receive medical care, narcotics, medical equipment and financial assistance with the cost of housing from the United States Department of Veterans Affairs. Bush, who is not a military veteran, was a long time patient at the G.V. "Sonny" Montgomery VA Medical Center in Jackson under the name of the victim whose identity he stole. When first approached by agents from the Department of Veterans Affairs, Bush provided the name of the victim as his own, but quickly confessed when told that the agents had already interviewed the victim, who lives out of state. As a result of his fraudulent use of the identity of a veteran, Bush was able to obtain goods and services from the government valued at over $133,000.
Bush will be sentenced by Judge Lee on November 29, 2018, and faces a maximum penalty of 10 years in federal prison and a $250,000 fine for theft of government funds, and a mandatory sentence of two years in prison for aggravated identity theft, which, by law, must be served consecutive to the term of imprisonment for theft of government funds. Restitution is mandatory under federal law.
The case was investigated by the Office of the Inspector General of the Department of Veterans Affairs. It was prosecuted by Assistant United States Attorney Dave Fulcher
High Desert Doctor Found Guilty in Medicare Kickback SchemeRead the Press Release
LOS ANGELES – A federal jury today convicted a Lancaster doctor of conspiracy for his role in a Medicare kickback conspiracy involving a Los Angeles-area home health agency.
Dr. Kanagasabai Kanakeswaran, 65, was found guilty of one count of conspiracy to pay and/or receive kickbacks for Medicare referrals and four counts of receiving kickbacks for Medicare referrals. The jury rendered its verdicts following a six-day trial.
According to evidence presented at trial, from 2008 to 2016, Kanakeswaran and others engaged in a conspiracy to refer Medicare patients to Star Home Health Resources (Star), a home health agency located in La Verne, in exchange for illegal kickback payments. Kanakeswaran received kickback payments in cash, as well as through checks payable to a company Kanakeswaran owned, Digital Perfection Corporation.
As a result of the conspiracy, the owners and operators of Star submitted claims to Medicare based on the Medicare beneficiaries that Kanakeswaran referred to Star, and Medicare paid approximately $4.1 million based on those claims, the evidence showed.
Kanakeswaran is scheduled to be sentenced by United States District Judge Philip S. Gutierrez on January 7. At that time, Kanakeswaran will face a statutory maximum penalty of 25 years in federal prison.
This case was investigated by the U.S. Department of Health and Human Services’ Office of Inspector General and the Federal Bureau of Investigation.
Assistant United States Attorney Alexander F. Porter of the Major Frauds Section and DOJ Trial Attorney Claire Yan of the Criminal Division’s Fraud Section are prosecuting the case.
Guilty Pleas in Series of Rochester Armed RobberiesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Damien Rutledge, 22, of Rochester, NY, pleaded guilty to his role in a series of five gunpoint commercial robberies that occurred in September, 2017 in Rochester, New York.
Rutledge pleaded guilty to five counts of committing or aiding and abetting Hobbs Act robbery in violation of Title 18, United States Code, Section 1951(a). Each robbery charge carries a maximum penalty of 20 years imprisonment and a $250,000 fine. Rutledge also pleaded guilty to aiding and abetting the possession of a firearm during a crime of violence that was discharged, in violation of Title 18, United States Code, Section 924(c)(1)(A)(iii). That charge carries a mandatory minimum term of imprisonment of 10 years, which by law, must be served consecutively to any sentence imposed on the robbery counts. It also carries a maximum penalty of life imprisonment and a $250,000.00 fine.
The guilty pleas were entered before United States District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Sean C. Eldridge, who is handling the case, stated that during his pleas of guilty, Rutledge admitted his role in a series of gunpoint robberies that were committed at stores within the City of Rochester between September 3, 2017 and September 23, 2017:
• On September 3, 2017, during a gunpoint robbery of the Hudson Save More on Hudson Avenue, Rutledge, along with co-conspirators Jonathan Middlebrooks, Nasir Perez and Dylan Miller, removed approximately $1,420 from the store’s cash registers.
• On September 14, 2017, during a gunpoint robbery of the 18 Hour Store on North Goodman Street, Rutledge, along with co-conspirators Middlebrooks, Perez and Miller, removed approximately $500 from the store’s cash register, while co-conspirator Deborah Siegel-Edelman served as the getaway driver.
• On September 18, 2017, during a gunpoint robbery of the Four Star Market on Lake Avenue, Rutledge, along with co-conspirators Middlebrooks, Perez and Miller removed approximately $2,650 from the store’s cash register, while Siegel-Edelman served as the getaway driver.
• On September 23, 2017, during a gunpoint robbery of the Bronx Market on Brown Street, Rutledge, along with co-conspirators Middlebrooks, Perez and Miller removed approximately $900 from the store’s cash register, while defendant Siegel-Edelman served as the getaway driver.
• Also on September 23, 2017, Rutledge, Perez, Middlebrooks and Miller were driven to the Greyhound Express Mini Mart on Carter Street by Siegel-Edelman. Middlebrooks, Perez, Miller and Rutledge entered the store, a gun was pointed at the store owner, and after a struggle between the store owner and one the robbers, a store employee removed the robber’s gun from the robber’s hand. The store employee then pointed the gun at Middlebrooks, who put his hands up, but also moved forward towards the store employee. After Middlebrooks took several steps towards the employee, the employee fired the gun, and the discharged round hit Middlebrooks in the stomach. The co-conspirators then fled the scene of the attempted robbery.Co-conspirators Middlebrooks, Miller, Perez and Siegel-Edelman have previously pleaded guilty to their roles in these robberies.
The guilty pleas by Rutledge are the result of an investigation by by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Rochester Area Major Crimes Task Force and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Sentencing is scheduled for November 29, 2018 at 3:00 pm before Judge Wolford.
Guatemalan Man Sentenced to Prison for Illegally Reentering the United StatesRead the Press Release
A Guatemalan man who illegally returned to the United States after being deported was sentenced today to more than four months in federal prison.
Pedro Isaias Jax-Tiu, age 22, a citizen of Guatemala illegally present in the United States and residing in Postville, Iowa, received the prison term after a June 4, 2018, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Jax-Tiu admitted he had previously been deported from the United States in 2015 and illegally reentered the United States without the permission of the United States government. When Jax-Tiu was found by immigration agents in Cedar Rapids, Iowa, in April 2018, Jax-Tiu provided the agents with a false name and date of birth. Analysis of Jax-Tiu’s fingerprints established his true name and prior deportation.
Jax-Tiu was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Jax-Tiu was sentenced to 127 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Jax-Tiu is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-40-LTS.
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Fourth Brazilian National Pleads Guilty to Aggravated Identity Theft in Card-Skimming SchemeRead the Press Release
U.S. Attorney Duane A. Evans announced that FERNANDO FINATTO MINGUZZI (“MINGUZZI”), age 22, a citizen of Brazil, pleaded guilty on August 22, 2018, before U.S. District Judge Sarah S. Vance to aggravated identity theft.
According to the court documents, MINGUZZI and three other Brazilian nationals were arrested by members of the Louisiana Financial Crimes Task Force at a hotel in the Algiers neighborhood of New Orleans on August 3, 2017. Federal and state law enforcement officers found the defendants in possession of re-encoded credit cards that contained stolen debit card information from actual customers. These individuals also possessed embossers, encoders, ATM skimmers, false identification, and other contraband. In a coordinated investigation with the U.S. Secret Service Oklahoma City Field Office, federal and state law enforcement agents arrested another Brazilian national who had been mailing skimmers, pinhole cameras, and other tools for credit card fraud to the four New Orleans-based members of this conspiracy.
MINGUZZI pleaded guilty to one count of aggravated identity theft in violation of Title 18, United States Code, Section 1028A. He faces a mandatory sentence of two years in prison, one year of supervised release, and a $250,000.00 fine or a fine equal to the greater of twice the gross gain or twice the gross loss caused by this offense. Judge Vance scheduled the sentencing for December 12, 2018.
U.S. Attorney Evans praised the agencies that contributed to this investigation, which was a coordinated effort among federal and state law enforcement authorities within the Louisiana Financial Crimes Task Force. The Task Force includes representatives from the U.S. Secret Service, the U.S. Postal Inspection Service, the Louisiana Attorney General’s Office, the Jefferson Parish Sheriff’s Department, and the New Orleans Police Department. U.S. Attorney Evans thanked the U.S. Secret Service Oklahoma City Field Office and the Midwest City, OK Police Department for their assistance. Assistant United States Attorney Matthew R. Payne is in charge of the prosecution.
Four drug-trafficking defendants found guilty in federal courtRead the Press Release
Sinaloa Drug Cartel members face up to life in prison at sentencing
PRESS RELEASE
Indianapolis-United States Attorney Josh Minkler announced today that four members of the Sinaloa Drug Cartel were found guilty in federal court after a ten-day trial before U. S. District Court Judge Tanya Walton Pratt. All could spend the rest of their lives in the Bureau of Prisons.
“The flow of illicit drugs including heroin and methamphetamine into our district ruins lives and destroys families,” said Minkler. “These drugs fuel a great deal of the violent crime we face daily in our neighborhoods through murders, non-fatal shootings and robberies.”
Rafael Rojas-Reyes, 37, Indianapolis, was found guilty of engaging in a continuing criminal enterprise, conspiracy to distribute controlled substances, conspiracy to launder monetary instruments, and distribution of methamphetamine.
Hector Saul Castro-Aguirre, 39, Nogales, Mexico, was found guilty of engaging in a continuing criminal enterprise, conspiracy to distribute controlled substances, and conspiracy to launder monetary instruments.
John Ramirez-Prado, 35, Houston, Texas, was found guilty of conspiracy to distribute controlled substances, and conspiracy to launder monetary instruments.
Jose Manuel Carrillo-Tremillo, 41, Redding, Pennsylvania, was found guilty of conspiracy to distribute controlled substances and conspiracy to launder monetary instruments.
Evidence introduced at trial established that Castro-Aguirre, Rojas-Reyes, and Carrillo-Tremillo were members of the Mexico-based Sinaloa Cartel. After other members of the Sinaloa Cartel smuggled methamphetamine and cocaine across the Mexican border, Castro-Aguirre coordinated the activities of drug couriers who transported drugs from Tucson, Arizona and Montebello, California to other cities in the United States for distribution. The cities that received controlled substances from Castro-Aguirre’s transportation network included the following: Indianapolis; Lufkin, Texas; Reading, Pennsylvania; New Brunswick, New Jersey; Queens, New York; and Columbus, Ohio. Rojas-Reyes was the leader of an Indianapolis-based methamphetamine and cocaine distribution cell for the Cartel and controlled the distribution of these substances in Indianapolis. Carrillo-Tremillo served as the leader of a cocaine distribution cell for the cartel based in Reading, Pennsylvania.
Federal prosecutors believe that these defendants were responsible for distributing approximately 200 pounds of methamphetamine and 20 kilograms of cocaine, with a retail value of over $2.2 million and a wholesale value of over $9 million in Indianapolis. The defendants were responsible for distributing an additional 28 pounds of methamphetamine and 390 kilograms of cocaine, with a retail value of over $12 million and a wholesale value of over $40 million in other areas of the United States. As a result of the investigation, law enforcement was able to seize over 90 pounds of methamphetamine, 12 kilograms of cocaine and $2.5 million in cash.
This case was investigated by the Drug Enforcement Administration, Internal Revenue Service, IMPD, the Indianapolis Metro Drug Task Force, the Somerset County (New Jersey) Prosecutor’s Office, the Texas Department of Public Safety and the Illinois State Police.
“Drug cartels feed on the addiction of Hoosiers who struggle with drug abuse,” said Assistant Special Agent in Charge for DEA in Indiana Greg Westfall. “Those who continue to bring this poison into our neighborhoods should know, the DEA is watching and will bring the full force of federal law enforcement to bear.”
“IRS Criminal Investigation, along with our law enforcement partners will continue to investigate and prosecute narcotic traffickers and other offenders to keep the communities in which we live a safer place,” said IRS Criminal Investigation Special Agent in Charge Gabriel L. Grchan. “IRS CI has the financial investigators and expertise that is critical to locating and following the money which is a key component of this drug and money laundering conviction.”
“The proliferation of illegal drugs often leads to broken lives, distressed neighborhoods, and dejected communities often due to violence,” said Chief Bryan Roach. “The combined efforts of federal, state and local law enforcement are aiding communities, individuals, and neighborhoods restore some sense of normalcy and peace while holding those accused accountable.”
According to Senior Litigation Counsel Bradley A. Blackington, who prosecuted this case for the government, all defendants could face a lifetime of imprisonment at sentencing. Judge Pratt scheduled the sentencings for Castro-Aguirre and Rojas-Reyes for January 10, 2019, and the sentencings for Ramirez-Prado and Carrillo-Tremillo for January 11, 2019.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting transnational drug-trafficking organizations that threaten the Southern District of Indiana. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 3.1
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Four Tulare County Residents Charged with Producing and Selling False Identification DocumentsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a seven-count indictment today against Elfego Alcala, 46; Aida Corona, 37; Tamilene Cisneros, 48; and Lupita Cisneros, charging them with conspiracy, production and transfer of false identification documents, and fraud and misuse of visas, United States Attorney McGregor W. Scott announced.
According to court documents, from approximately February through August of 2018, in Tulare County and Visalia, the defendants conspired to manufacture and sell false identification documents, including Social Security cards and green cards. During the relevant time period, the defendants allegedly arranged for the production and sale of green cards and Social Security cards to a confidential informant on two occasions.
This case is the product of an investigation by Homeland Security Investigations. Assistant United States Attorney Laura D. Withers is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Four Defendants Sentenced for Roles in Federal Heroin ConspiracyRead the Press Release
Comprehensive drug investigation resulted in convictions of nearly a dozen defendants
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that four defendants implicated in a federal heroin conspiracy were sentenced today. Stuart commended the collaborative investigative efforts of the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Parkersburg Drug Task Force, the West Virginia State Police, the Wood County Sheriff’s Department, and the Police Departments of the cities of Parkersburg, Vienna, and Williamstown.
“Heroin - a true scourge driven by greedy dealers and addicted buyers,” said United States Attorney Mike Stuart. “If you are a drug dealer and we catch you, I will do all in my power to lock you away as long as possible. I have no sympathy whatsoever for a drug thug that ravages addicts and weakens the social fiber of our communities. This investigation was a great team effort and we are committed to continuing to work with our law enforcement partners to lock up greedy drug dealers who prey on our citizens.”
Joseph Reeder-Shaw was sentenced to 144 months in prison and Marvin Brown, Jonathan White and Rachel Kuhn of Parkersburg were sentenced to 60 months in prison for conspiracy to distribute 100 grams or more of heroin.
All four defendants previously admitted to their involvement with several other individuals in distributing heroin at various locations throughout the Parkersburg area. The group was responsible for distributing between one and three kilograms of heroin.
Debra Martin, Ralph White, Heather Wells, and Kennedy Walker, all co-defendants involved in the same conspiracy as the four defendants sentenced today, will be sentenced on Monday.
Assistant United States Attorney John Frail is in charge of these prosecutions. The plea hearings were held before United States District Judge Joseph R. Goodwin.
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###Former WV Supreme Court of Appeals Justice Menis Ketchum II Pleads Guilty to Wire FraudRead the Press Release
CHARLESTON, W.Va. -- United States Attorney Mike Stuart announced today that former West Virginia Supreme Court of Appeals Justice Menis E. Ketchum II, age 75, pled guilty to wire fraud. The Federal Bureau of Investigation, the West Virginia Legislature’s Commission on Special Investigations, and the Internal Revenue Service—Criminal Investigation Division conducted the investigation.
“Justice Ketchum did the right thing for doing the wrong thing,” said United States Attorney Mike Stuart. “There is no such thing as a small felony. There is no such thing as a little bit of public corruption. I want to praise the exemplary work of the FBI, the West Virginia Legislature’s Commission on Special Investigations, the Internal Revenue Service-Criminal Investigations, and prosecutors Anna Forbes and Phil Wright.”
Justice Ketchum served as a Supreme Court Justice from January 1, 2008 through July 27, 2018. During that time, he admitted to repeated personal use of a State of West Virginia vehicle and State fuel credit card over the course of 2011 through 2014 in connection with his travel from his home in Huntington, West Virginia to and from a private golf club in western Virginia. The roundtrip mileage for each of these golf outings was approximately 400 miles and cost the taxpayers of West Virginia approximately $220 per trip.
Justice Ketchum faces up to 20 years in prison when he is sentenced on December 6, 2018.
United States District Judge John T. Copenhaver, Jr. presided over the plea hearing. Assistant United States Attorneys Anna Forbes and Phil Wright are handling the prosecution.
The plea agreeement can be found
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Former Student Sentenced for Causing Damage to University of Iowa Computer NetworkRead the Press Release
DAVENPORT, IA-- On August 23, 2018, Trevor J. Graves, age 23, a former University of Iowa student, was sentenced by United States District Court Chief Judge John A. Jarvey to four months in prison after pleading guilty to unauthorized access and damage to the University of Iowa college computer network, announced United States Attorney Marc Krickbaum. Graves was ordered to serve two years of supervised release, pay $67,900 in restitution, and pay $100 to the Crime Victims’ Fund. Graves pleaded guilty in April 2018.
Graves admitted he knew from May 2015 to November 15, 2016, the University of Iowa Iowa Courses Online (ICON) computer network was a protected computer. During this time period, Graves knowingly and intentionally placed a key logger on University of Iowa computers and fraudulently obtained professors’ user names and passwords, accessed the ICON computer network, and deleted and changed student grades. Specifically, Graves accessed the ICON system and, without authorization, changed course grades for himself and five other students. The University of Iowa’s information technology costs associated with their internal investigation, response to the discovery of the network breach, and remedial steps taken to update the University of Iowa information technology security was approximately $67,900.
This investigation was conducted by the Federal Bureau of Investigation, University of Iowa Department of Public Safety, and University of Iowa, Information Services Technology division. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former Memphis attorney Charged in Scheme to Defraud ClientsRead the Press Release
Memphis, TN – A federal grand jury returned an indictment against former Memphis attorney George E. Skouteris, Jr. 56. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictment today.
The seven-count indictment alleges that between 2007 and March 2013, Skouteris engaged in a scheme to defraud his clients by settling cases without notifying his clients and forging their endorsements on the settlement checks made jointly payable to him and the client. The indictment alleges that Skouteris then deposited the checks to bank accounts he maintained at TrustOne Bank. According to the indictment, Skouteris fraudulently obtained in excess of $250,000 during the course of the scheme.
U.S. Attorney D. Michael Dunavant said, "Licensed attorneys who steal from their clients betray the trust of that fiduciary relationship, and are a threat to the public. This indictment exposes that breach of trust, and will hopefully achieve justice by recovering restitution for the victims and reminding the legal community of the high standards of their profession."
Skouteris faces a mandatory maximum penalty of 30 years imprisonment, a fine of $1,000,000 and five years supervised release as to each count.
This case was investigated by the Tennessee Bureau of Investigation.
Assistant U.S. Attorney Carroll L. André III is prosecuting this case on the government’s behalf.
Former Medford Youth Pastor Sentenced to More Than 15 Years in Federal Prison for Secretly Videotaping MinorsRead the Press Release
MEDFORD, Ore. – Donald Courtney Biggs, 40, of Medford, Oregon, was sentenced today to 188 months in federal prison for surreptitiously recording minor church members in various stages of undress while employed as a youth pastor at Mountain Christian Fellowship in Medford.
According to court documents, the Medford Police Department (MPD) began investigating Biggs in December 2014 for allegedly sending inappropriate text messages to a minor female who he worked with at the church. After authorities discovered Biggs had exchanged similar text messages with additional minor females and confessed to church administrators that he videotaped an adult changing at his house, they obtained a warrant to search Biggs’ home.
The search uncovered multiple electronic devices containing videos of minors and adults undressing and getting into and out of a shower in Biggs’ home. Biggs concealed a video camera behind a light switch in a bathroom in his home in Jacksonville, Oregon used by minor and adult females during youth events hosted at his house. The camera captured victims nude as they were using the toilet, changing clothes, and showering. In a similar manner, Biggs also concealed videos cameras in bathrooms on church retreats to Huntington Beach and Lake Shasta, California.
Biggs later admitted to secretly recording many of the girls in his youth group at his house, the church, and at several different church events. He also admitted to designing activities that required youth group members to change clothes and sometimes shower.
Biggs was charged on November 2, 2017 with nine counts of using or attempting to use a minor to produce a visual depiction of sexually explicit conduct and three counts of transportation with intent to engage in criminal sexual activity with a minor for illicit acts involving nine different minor victims.
Biggs pleaded guilty to a single count of transportation with intent to engage in criminal sexual activity with a minor on February 22, 2017. Upon completion of his prison sentence, Biggs will be on supervised release for life.
This case was investigated by the FBI, MPD, and the Southern Oregon High Tech Crimes Task Force. It was prosecuted by Judi Harper, Amy Potter, and Pamela Paaso, Assistant U.S. Attorneys for the District of Oregon.
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 U.S. 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.justice.gov/psc.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at www.fbi.gov/tips.
Former Indiana Resident Charged with Providing and Conspiring to Provide Material Support to ISISRead the Press Release
Samantha Marie Elhassani, aka Samantha Sally, 32, formerly of Elkhart, Indiana, was charged on Aug. 22, in a two count indictment with conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated terrorist organization, and aiding and abetting individuals in providing material support to ISIS.
The charges were announced by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Thomas L. Kirsch II for the Northern District of Indiana, and Special Agent in Charge Grant Mendenhall of the FBI’s Indianapolis Division.
The indictment alleges that from the fall of 2014 through summer of 2015, Elhassani provided material support and resources to ISIS knowing that the organization was a designated terrorist organization, and knowing that the organization has engaged in and was engaging in terrorist activity and terrorism. Elhassani, is also charged with aiding and abetting two individuals in providing themselves as personnel to ISIS. Under both charges she is alleged to have procured tactical gear and provided funds to support individual A and B in providing themselves as personnel for ISIS. In July of 2018, Elhassani was transferred from the custody of the Syrian Democratic Forces (SDF) to U.S. law enforcement and charged with making false statements to the FBI in the Northern District of Indiana.
The case is being investigated by the FBI’s Indianapolis Division and the Indianapolis Joint Terrorism Task Force. The case is being prosecuted by the U.S. Attorney’s Office for the Northern District of Indiana and the National Security Division’s Counterterrorism Section.
Former Indiana Resident Charged with Providing and Conspiring to Provide Material Support to ISISRead the Press Release
HAMMOND-Samantha Marie Elhassani, aka Samantha Sally, 32, formerly of Elkhart, Indiana, was charged on Aug. 22, in a two count indictment with conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated terrorist organization, and aiding and abetting individuals in providing material support to ISIS.
The charges were announced by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Thomas L. Kirsch II for the Northern District of Indiana, and Special Agent in Charge Grant Mendenhall of the FBI’s Indianapolis Division.
U.S. Attorney Kirsch said, “My office is committed to aggressively pursuing and prosecuting those who support designated terrorist organizations such as ISIS. This indictment is an example of that commitment. The indictment alleges that Elhassani travelled abroad and provided funds and supplies for use by two ISIS fighters. The seriousness of the charges reflect the gravity of Elhassani’s alleged conduct.”
"The charges against Ms. Elhassani illustrate that actions of providing support to ISIS have serious consequences, and should serve as a reminder to American citizens that providing assistance to terrorist organizations or individuals aligned with terrorist entities will not be tolerated," said Grant Mendenhall, Special Agent in Charge of the FBI's Indianapolis Division.
The indictment alleges that from the fall of 2014 through summer of 2015, Elhassani provided material support and resources to ISIS knowing that the organization was a designated terrorist organization, and knowing that the organization has engaged in and was engaging in terrorist activity and terrorism. Elhassani, is also charged with aiding and abetting two individuals in providing themselves as personnel to ISIS. Under both charges she is alleged to have procured tactical gear and provided funds to support individual A and B in providing themselves as personnel for ISIS. In July of 2018, Elhassani was transferred from the custody of the Syrian Democratic Forces (SDF) to U.S. law enforcement and charged with making false statements to the FBI in the Northern District of Indiana.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
The case is being investigated by the FBI’s Indianapolis Division, Merrillville Resident Agency and the Indianapolis Joint Terrorism Task Force. The case is being prosecuted by the U.S. Attorney’s Office for the Northern District of Indiana and the National Security Division’s Counterterrorism Section.
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Former Company Owner Sentenced for $13.7 Million 'Rent-A-Vet' SchemeRead the Press Release
KANSAS CITY, Mo. – A former operator of a local construction company, Patriot Company, Inc., was sentenced in federal court today for his role in a “rent-a-vet” scheme to fraudulently obtain more than $13.7 million in federal contracts.
Jeffrey K. Wilson, 53, of the Village of Loch Lloyd in Belton, Mo., was sentenced by U.S. District Judge Howard F. Sachs to 18 months in federal prison without parole. Under the terms of his plea agreement, Wilson has also consented to the federal civil forfeiture of approximately $2.1 million.
On Jan. 31, 2018, Wilson pleaded guilty to one count of government program fraud. Co-defendant Paul R. Salavitch, 57, of Kansas City, Mo., pleaded guilty to a misdemeanor charge of making a false writing and awaits sentencing.
Wilson, who is not a veteran, managed the day-to-day operations and the long-term decision making of Patriot Company from September 2005 to January 2014. Wilson and Salavitch falsely certified that Salavitch, who is a service-disabled veteran, was involved in the day-to-day operations of Patriot Company. Salavitch’s purported active management qualified Patriot Company to obtain set-aside contracts to which it was not entitled.
Wilson admitted he used Salavitch’s veteran and service-disabled veteran status in a “rent-a-vet” scheme to obtain 20 government contracts for which Patriot Company received more than $13.7 million. As a result of the fraud scheme, legitimate veteran-owned-and-run businesses were not awarded these contracts. In one instance, according to court documents, Wilson brazenly challenged the government’s award of a set-aside contract to a service-disabled veteran bidder and Patriot Company fraudulently obtained that contract.
Wilson’s plea agreement cites 20 contracts with the U.S. Department of Veterans Affairs and the U.S. Army, which were fraudulently obtained by Wilson, Salavitch and Patriot Company. The contracts, which ranged as high as $4.3 million, included construction projects in Missouri, South Dakota, Texas, Nebraska, Oklahoma, Michigan, Indiana, Tennessee, Iowa, Illinois and North Dakota.
In September 2013, the Veterans Administration conducted an unannounced site visit of Patriot Company. The site inspector discovered that Salavitch was working 40 miles away at his full-time job as a federal employee with the Department of Defense in Leavenworth, Kan.
Wilson did not stop violating the law even after the government’s site visit. Instead, Wilson and Salavitch fought cancellation of Patriot Company’s status. In November 2013, Salavitch falsely certified to the Missouri Division of Purchasing and Materials Management that Patriot Company was a legitimate service-disabled veteran-owned small business when he knew it was not because he did not actively run the company. In December 2013, the Veterans Administration de-certified Patriot Company.
This case is being prosecuted by Assistant U.S. Attorneys Stacey Perkins Rock, Curt Bohling and Jane Pansing Brown. It was investigated by the Department of Veterans Affairs – Office of Inspector General – Criminal Investigation Division and the General Services Administration – Office of Inspector General.
Former Background Investigator for Federal Government Sentenced for Making a False StatementRead the Press Release
WASHINGTON – Jeffrey S. Kahn, 51, a former background investigator who did work under contract for the U.S. Office of Personnel Management (OPM), has been sentenced to one month of incarceration, to be followed by five months of home detention, for falsifying his work on background investigations of federal employees and contractors.
The announcement was made by U.S. Attorney Jessie K. Liu and Norbert E. Vint, Acting Inspector General for the Office of Personnel Management.
Kahn, of Saratoga Springs, Utah, pled guilty in June 2018, in the U.S. District Court for the District of Columbia, to making a false statement. He was sentenced on August 20, 2018, by the Honorable Ketanji Brown Jackson. Following the period of incarceration, Kahn will be placed on 24 months of supervised release; the first five months of that term must be spent on home detention. Additionally, as part of the plea, Kahn has agreed to pay $77,649 in restitution to the federal government.
According to a statement of offense submitted to the Court, Kahn was employed by KeyPoint Government Solutions as an investigator under contract to conduct background investigations on behalf of OPM’s Federal Investigative Services, which now is known as OPM’s National Background Investigations Bureau. All of the criminal conduct in this case took place while Kahn worked under contract on behalf of Federal Investigative Services.
Between May 2013 and August 2013, in more than 18 Reports of Investigations on background investigations, Kahn represented that he had interviewed a source or reviewed a record regarding the subject of the background investigation. In fact, he had not conducted the interviews or obtained the records of interest. These reports were utilized and relied upon by the agencies requesting the background investigations to determine whether the subjects were suitable for positions having access to classified information, for positions impacting national security, for receiving or retaining security clearances, or for positions of public trust.
Kahn’s false representations have required OPM to reopen and rework numerous background investigations that were assigned to him during the time period of his falsifications, at an estimated cost of at least $77,649 to the U.S. government.
OPM has a robust integrity assurance program which utilizes a variety of methods to ensure the accuracy of reported information. The falsification of investigative case work by the defendant was detected through the program.
This is one of numerous cases prosecuted by the U.S. Attorney’s Office for the District of Columbia since 2008 involving false representations by background investigators and record checkers working on federal background investigations. In addition to Kahn, 23 other background investigators and two record checkers have been convicted of charges.
With a staff of more than 9,900 federal and contract employees, the National Background Investigations Bureau (NBIB) conducts approximately 95 percent of all personnel background investigations for the federal government. NBIB processed over 2.5 million background investigations in the 2017 fiscal year.
In performing background investigations, the investigators conduct interviews of individuals who have information about the person who is the subject of the review. In addition, the investigators seek out, obtain, and review documentary evidence, such as employment records, to verify and corroborate information provided by either the subject of the background investigation or by persons interviewed during the investigation. After conducting interviews and obtaining documentary evidence, the investigators prepare a Report of Investigation containing the results of the interviews and document reviews, and electronically submit the material to OPM in Washington, D.C. OPM then provides a copy of the investigative file to the requesting agency, which can use the information to determine an individual’s eligibility for employment or a security clearance.
In announcing the sentence, U.S. Attorney Liu and Acting Inspector General Vint praised the efforts of Special Agent Christopher J. Sulhoff, OPM, Office of the Inspector General, and Philip Kroop and Kevin Cassidy, OPM, NBIB. They also acknowledged the work of Paralegal Specialists Aisha Keys and Joshua Fein of the U.S. Attorney’s Office, as well as Assistant U.S. Attorney Ellen Chubin Epstein, who investigated and prosecuted this matter.
Florida Man Arrested for Extensive Cyberstalking and Threats CampaignRead the Press Release
BOSTON – A Florida man was arrested today and charged in federal court in Boston with conducting an extensive cyberstalking campaign that targeted his former classmate, a 30-year-old Massachusetts woman.
Byron A. Cardozo, 34, residing in Jacksonville and Boca Raton, Fla., was indicted on one count of cyberstalking and one count of making interstate threats. Cardozo was detained following an initial appearance in the Southern District of Florida and will be transported to Boston at a later date.
According to the indictment, Cardozo engaged in an 18-month-long multi-faceted cyberstalking and threats campaign targeting the victim. He began in February 2017, shortly after the victim published an essay in an online magazine describing a one-time, traumatic sexual encounter she had with Cardozo (she used pseudonyms in the article) when she was approximately 13-years-old and he was approximately 17-years-old while they attended the same school in Florida.
Cardozo allegedly sent hundreds of online communications, many of which he posted in the “comments” section of the essay, accusing the victim of fabricating her claims about the coercive nature of the 2001 sexual encounter, provided graphic descriptions of his purported consensual sexual encounter with the victim, and described how he continued to masturbate to the victim’s photographs. It is further alleged that Cardozo made threats to injure the victim, and at other times, he also apologized to her for the traumatic sexual experience, asked for forgiveness, expressed his love for her, and made veiled threats to commit suicide “because of you.” Cardozo continued to harass and threaten the victim despite the fact that she had obtained a state court order in April 2017, forbidding him from communicating with her.
United States Attorney Andrew E. Lelling; Assistant Attorney General Brian Benczkowski of the Justice Department’s Criminal Division; and Harold H. Shaw, Special Agent in Charge Federal Bureau of Investigation, Boston Field Office, made the announcement. Assistant U.S. Attorney Amy Harman Burkart, Chief of Lelling’s Cyber Crime Unit and Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Florida Man Arrested and Charged with Extensive Cyberstalking and Threats CampaignRead the Press Release
A Florida man was arrested today and charged in U.S. District Court in Boston with conducting an extensive cyberstalking campaign that targeted his former schoolmate, a 30-year-old Massachusetts woman. The victim’s name is being withheld to protect her privacy.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Andrew Lelling of the District of Massachusetts and Special Agent in Charge Harold H. Shaw of the FBI’s Boston Field Office made the announcement.
Byron A. Cardozo, 34, residing in Jacksonville and Tamarac, Florida, was charged in a recently unsealed indictment with one count of cyberstalking and one count of making interstate threats. Cardozo was detained following an initial appearance before U.S. District Court Magistrate Judge Patrick M. Hunt in the Southern District of Florida.
According to the unsealed indictment, Cardozo is charged with engaging in an 18-month-long multi-faceted cyberstalking and threats campaign targeting the victim. He launched his campaign in February 2017, shortly after the victim wrote, and had published in an online magazine, an essay describing a one-time, traumatic sexual encounter she had with Cardozo when she was approximately 13 and he was approximately 17 and they attended the same school in Florida. She used pseudonyms for Cardozo and others in the essay. He sent hundreds of online communications, many of which he made in the “comments” section to the essay. In those communications, Cardozo claimed that the victim had fabricated her claims about the coercive nature of the 2001 sexual encounter, provided graphic descriptions of his purported consensual sexual encounter with the victim, and described how he continued to masturbate to the victim’s photographs. Cardozo also made express and implicit threats to injure the victim. At other times, he also apologized to her for the traumatic sexual experience in 2001, asked for forgiveness, expressed his love for her, and made veiled threats to commit suicide “because of you.” Cardozo continued to harass and threaten the victim despite the fact that she had obtained a state court order in April 2017, forbidding him from communication with her.
The FBI is investigating the case. Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Amy Harman Burkart of the District of Massachusetts are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Jury Convicts Hope Mills and Fayetteville Residents for Bank FraudRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that yesterday, AMONI BROWN, 20, of Hope Mills, NC, and DONNELL MARIO BRATTON, 38, of Fayetteville, NC, were convicted following a three-day jury trial before United States District Judge Louise W. Flanagan. The jury found BROWN guilty of one count of conspiracy to commit bank fraud and two counts of bank fraud and aiding and abetting. The jury found BRATTON guilty of one count of conspiracy to commit bank fraud and five counts of bank fraud and aiding and abetting.
The evidence at trial showed that in September 2016, BROWN and a co-conspirator deposited over $6,700.00 in stolen and altered checks into BROWN’s bank account and subsequently withdrew approximately $3,900.00 from the account. Similarly, the evidence showed that in January 2017, over a three week period, BRATTON and a co-conspirator, deposited over $47,000.00 in stolen and altered checks into BRATTON’s bank account and subsequently withdrew or attempted to withdraw over $37,000.00 from the account.
The sentencing hearings for BROWN and BRATTON are tentatively set for the December 2018 term of court. The statutory maximum penalties for each count of conspiracy to commit bank fraud and bank fraud are the same: 30 years imprisonment, a $1,000,000 fine, and 5 years supervised release. At the time of sentencing, the actual sentence received will be calculated according to the federal sentencing guidelines and imposed by the United States District Judge.
The investigation of this case was conducted by the United States Postal Inspection Service. Assistant United States Attorneys Melissa Kessler and Felice McConnell Corpening represented the government in this case.
Federal Grand Jury Indicts Man for Bank RobberyRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that JAMIE PAUL EARLY, age 36, a resident of New Orleans, Louisiana, was charged in a one-count indictment by a Federal Grand Jury for a bank robbery committed on July 27, 2018 at the Capital One Bank at 3001 Tulane Avenue in New Orleans.
If convicted, EARLY faces a maximum term of imprisonment of 20 years and a fine up to $250,000.
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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 Federal Bureau of Investigation. It is being prosecuted by the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
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Federal Government Contractor Sentenced for Removing and Transmitting Classified Materials to a News OutletRead the Press Release
Reality Winner, 26, of Augusta, Georgia, was sentenced today to five years and three months in prison for removing classified national defense material from a government facility and mailing it to a news outlet. Winner was arrested by the FBI at her home in Augusta, on June 3, 2017. The parties filed a plea agreement on June 21, in which Winner agreed to plead guilty to the one-count indictment charging her with unlawful retention and transmission of national defense information. The parties agreed that a sentence of imprisonment for 63 months followed by a three-year term of supervised release is the appropriate disposition of the case. The Court accepted the plea agreement at sentencing.
The sentence was announced by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Bobby L. Christine for the Southern District of Georgia, and Special Agent in Charge J.C. Hacker of the FBI’s Atlanta Field Office. U.S. District Court Chief Judge J. Randal Hall presided over the hearing.
“The defendant schemed to take and disclose classified information she had sworn to protect – and then did so almost as soon as she had the chance,” said Assistant Attorney General Demers. “Today, she has been held accountable for her crime thanks to the hard work of the Department’s prosecutors and agents. I hope their success will deter others from similar unlawful action in the future.”
“This defendant used her position of trust to steal and divulge closely guarded intelligence information,” said U.S. Attorney Christine. “Her betrayal of the United States put at risk sources and methods of intelligence gathering, thereby offering advantage to our adversaries. This U.S. Attorney’s Office will continue to work with the National Security Division, law enforcement and our intelligence partners to ensure such violations result in swift, certain prosecution.”
“When obtaining Top Secret clearance as a government employee or contractor, the handling of top secret information is clearly spelled out along with the ramifications of mishandling such information,” said Special Agent in Charge Hacker. “Revealing sources and methods to the advantage of our adversaries and to the detriment of our country will never be acceptable and the FBI and Department of Justice will spare no effort to prosecute and punish anyone who would do so.”
Winner was a contractor assigned to a U.S. government agency facility in Georgia. She had been employed at the facility since on or about Feb. 13, 2017, and held a TOP SECRET//Sensitive Compartmented (SCI) clearance during that time. Prior to that position, Winner had served in the U.S. Air Force from 2010-2016 and held a TOP SECRET//SCI security clearance.
Evidence presented at the change of plea hearing established that on or about May 9, 2017, Winner printed an intelligence report that was classified at the TOP SECRET//SCI level, and she removed it from the facility where she worked. Information may be classified as TOP SECRET if its unauthorized disclosure can reasonably be expected to cause exceptionally grave damage to the national security of the United States. Later on May 9, Winner unlawfully transmitted a hard copy of the intelligence report to an online news outlet. The intelligence report revealed the sources and methods used to acquire the information contained in the report, which, if disclosed, would be harmful to the United States and valuable to our adversaries.
Indeed, Winner, in an interview with the FBI on June 3, 2017, admitted knowing at the time she stole and transmitted the intelligence report that it contained information about intelligence sources and methods, which information she knew was valuable to adversaries of the United States. Further, the information contained in the intelligence report had not been released to the public at the time Winner retained it and transmitted it to the online news outlet. Winner, who had received training regarding the proper handling, marking, transportation, and storage of classified information, knew that she was not permitted to remove the intelligence report from the facility where she worked, retain it, or transmit it to the news outlet.
The investigation of this case was conducted by the FBI. The prosecution is being handled by Assistant U.S. Attorney Jennifer Solari of the Southern District of Georgia, and Deputy Chief Julie A. Edelstein and Trial Attorneys David C. Aaron and Amy Larson of the National Security Division’s Counterintelligence and Export Control Section.
Federal Government Contractor Sentenced for Removing and Transmitting Classified Materials to A News OutletRead the Press Release
AUGUSTA, GA – Reality Winner, 26, of Augusta, Georgia, was sentenced today to five years and three months in prison for removing classified national defense material from a government facility and mailing it to a news outlet. Winner was arrested by the FBI at her home in Augusta, on June 3, 2017. The parties filed a plea agreement on June 21, in which Winner agreed to plead guilty to the one-count indictment charging her with unlawful retention and transmission of national defense information. The parties agreed that a sentence of imprisonment for 63 months followed by a three-year term of supervised release is the appropriate disposition of the case. The Court accepted the plea agreement at sentencing.
The sentence was announced by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Bobby L. Christine for the Southern District of Georgia, and Special Agent in Charge J.C. Hacker of the FBI’s Atlanta Field Office. U.S. District Court Chief Judge J. Randal Hall presided over the hearing.
“The defendant schemed to take and disclose classified information she had sworn to protect – and then did so almost as soon as she had the chance,” said Assistant Attorney General Demers. “Today, she has been held accountable for her crime thanks to the hard work of the Department’s prosecutors and agents. I hope their success will deter others from similar unlawful action in the future.”
“This defendant used her position of trust to steal and divulge closely guarded intelligence information,” said U.S. Attorney Christine. “Her betrayal of the United States put at risk sources and methods of intelligence gathering, thereby offering advantage to our adversaries. This U.S. Attorney’s Office will continue to work with the National Security Division, law enforcement and our intelligence partners to ensure such violations result in swift, certain prosecution.”
“When obtaining Top Secret clearance as a government employee or contractor, the handling of top secret information is clearly spelled out along with the ramifications of mishandling such information,” said Special Agent in Charge Hacker. “Revealing sources and methods to the advantage of our adversaries and to the detriment of our country will never be acceptable and the FBI and Department of Justice will spare no effort to prosecute and punish anyone who would do so.”
Winner was a contractor assigned to a U.S. government agency facility in Georgia. She had been employed at the facility since on or about Feb. 13, 2017, and held a TOP SECRET//Sensitive Compartmented (SCI) clearance during that time. Prior to that position, Winner had served in the U.S. Air Force from 2010-2016 and held a TOP SECRET//SCI security clearance.
Evidence presented at the change of plea hearing established that on or about May 9, 2017, Winner printed an intelligence report that was classified at the TOP SECRET//SCI level, and she removed it from the facility where she worked. Information may be classified as TOP SECRET if its unauthorized disclosure can reasonably be expected to cause exceptionally grave damage to the national security of the United States. Later on May 9, Winner unlawfully transmitted a hard copy of the intelligence report to an online news outlet. The intelligence report revealed the sources and methods used to acquire the information contained in the report, which, if disclosed, would be harmful to the United States and valuable to our adversaries.
Indeed, Winner, in an interview with the FBI on June 3, 2017, admitted knowing at the time she stole and transmitted the intelligence report that it contained information about intelligence sources and methods, which information she knew was valuable to adversaries of the United States. Further, the information contained in the intelligence report had not been released to the public at the time Winner retained it and transmitted it to the online news outlet. Winner, who had received training regarding the proper handling, marking, transportation, and storage of classified information, knew that she was not permitted to remove the intelligence report from the facility where she worked, retain it, or transmit it to the news outlet.
The investigation of this case was conducted by the FBI. The prosecution is being handled by Assistant U.S. Attorney Jennifer Solari of the Southern District of Georgia, and Deputy Chief Julie A. Edelstein and Trial Attorneys David C. Aaron and Amy Larson of the National Security Division’s Counterintelligence and Export Control Section.
For any questions, please contact the United States Attorney’s Office at (912) 652-4422.
Fairfield Man Pleads Guilty to Attempted Online Enticement of A MinorRead the Press Release
SACRAMENTO, Calif. — Donald Threatt, age 67, of Fairfield, California, pleaded guilty today to attempted online enticement of a minor, United States Attorney McGregor W. Scott announced.
According to court documents, in April of 2017, Threatt began conversing through the Kik messenger service with an individual who identified herself as “Sarah,” a 15-year-old girl who was interested in online games, soccer, and track. Off and on over the course of many days, Threatt used Kik to tell “Sarah” the various sexual things he wanted to allow him to do to her. The defendant discussed and agreed with the purported minor that he would visit her residence on Beale Air Force Base while her mother was away. According to the Kik chat, the defendant suggested blindfolding her and tying her up with rope. He stated that he would engage in various sexual acts with her and proposed that they take photos and a video of their sexual activity. Threatt arranged to meet her at her residence on May 12, 2017, after her mother had left for the weekend.
Unbeknownst to Threatt, the minor was actually an undercover law enforcement agent. On the day of the planned meeting, law enforcement personnel surveilled Threatt as he left his home in Fairfield, purchased rope from a Lowe’s Home Improvement store, and drove to the house where the meeting with the minor was to occur. Threatt was arrested after he pulled into the garage of the house. In Threatt’s car, agents found a GoPro camera, a Nikon camera, a Samsung camcorder, a tripod, rope, and various sexual items.
According to court documents, this was not the first time Threatt attempted to prey on a child. Agents searched Threatt’s residence and seized a computer hard drive containing approximately 800 internet chats from 2008. Together, those communications showed the defendant had been communicating with several girls under the age of 18. In those communications, Threatt discussed how he wanted to have sexual relations with the underage girls and repeatedly solicited and received nude photographs from at least one minor. In addition, in 2013, Threatt was arrested after he used email to attempt to persuade someone he believed to be a 15-year-old girl to meet with him to have sex. In reality, the defendant was communicating with an undercover law enforcement officer.
This case was the product of an investigation by the Air Force Office of Special Investigations and the Federal Bureau of Investigation. Assistant United States Attorneys Matthew D. Segal, Jeremy J. Kelley, and Katherine T. Lydon are prosecuting the case.
Threatt remains in custody and is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on December 6, 2018. Threatt faces a mandatory minimum of ten years in prison and a maximum statutory penalty of life in prison as well as a $250,000 fine. The actual sentence, however, will be determined by the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Eye care provider sentenced to federal prison for Medicare and Medicaid fraudRead the Press Release
GAINESVILLE, Ga. - Matilda Lynn Prince has been sentenced to federal prison, after a jury convicted her of twenty-nine counts of healthcare fraud for filing fraudulent claims with Medicare and the Georgia Medicaid program for optometry and ophthalmology services that were never provided to patients.
“Prince will now spend time in federal prison for stealing over a million dollars from the Medicare and Medicaid programs by submitting fraudulent claims for services that were not performed,” said U.S. Attorney Byung J. “BJay” Pak. “Prince diverted critical resources away from the elderly and low-income families who were most in need of care.”
“This sentence sends a clear-cut message to crooked providers who fraudulently bill government health care programs,” said Derrick L. Jackson, Special Agent in Charge for the U.S. Department of Health & Human Services - Office of Inspector General (OIG). “The OIG and our law enforcement partners will continue to aggressively pursue these thieves to ensure they are held accountable.”
“Our Medicaid Fraud Control Unit remains committed to working with our federal partners to investigate and prosecute providers who attempt to steal from healthcare programs designed to provide treatment and care for those most in need,” said Georgia Attorney General Chris Carr.
According to U.S. Attorney Pak, the charges and other information presented in court: Prince owned Pickens Eye Clinic in Jasper, Georgia and operated Eye Gallery 20/20 in Calhoun, Georgia. From September 2011 to February 2014, Prince submitted false claims to Medicare and Medicaid for optometry and ophthalmology services that were never rendered to patients.
Despite being previously excluded from the Medicare and Medicaid programs in September 2011 and informed of her ineligibility to be employed or involved with any entity that received Medicare or Medicaid funds, Prince operated under a company named Eye Gallery 20/20 to bill Medicare and Medicaid for services that were not rendered. As part of the scheme, Prince targeted her advertising towards senior citizens and disabled populations in housing complexes and community centers, offering on-site eye exams and prescription glasses at no charge to patients on Medicare and Medicaid. Prince contracted with two licensed optometrists to provide basic eye exams. The optometrists would sometimes travel with Prince to perform these exams.
Although the patients received only basic eye exams and measurements for prescription glasses, Prince often billed for complex ophthalmological procedures involving the surgical insertion of medical devices called “punctal plugs” into patients' tear ducts to treat dry eye conditions. Prince then used the identities of the two licensed optometrists to bill Medicare and Medicaid repeatedly for this procedure. On some occasions, she billed for the same patient as many as seven times on the same claimed date of service, even though the procedures were never performed. Prince fraudulently submitted over $1.2 million in insurance claims to Medicare and Medicaid for services never rendered.
Matilda Lynn Prince, 42, of Mineral Bluff, Georgia was sentenced to three years, four months in prison, to be followed by three years of supervised release on August 22, 2018. She was also ordered to pay restitution in the amount of $609,000. Prince was found guilty by a jury on January 9, 2018.
This case was investigated by the Department of Health and Human Services - Office of the Inspector General, and the Georgia Medicaid Fraud Control Unit.
Assistant U.S. Attorneys Bernita B. Malloy and Randy S. Chartash prosecuted the case.
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.
Eagle Butte Man Sentenced on Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Distribution of a Controlled Substance (methamphetamine) was sentenced on August 20, 2018, by U.S. District Judge Roberto A. Lange.
Nolan Clown, age 33, was sentenced to 6 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Clown was indicted by a federal grand jury on November 14, 2017. He pled guilty on August 1, 2018.
Clown admitted to distributing methamphetamine to another individual for money on August 24, 2016, in Eagle Butte. Clown further admitted he had distributed methamphetamine on at least one other occasion. Methamphetamine is a Schedule II controlled substance.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Clown was immediately turned over to the custody of the U.S. Marshals Service.
Drunk Driver Pleads Guilty to Involuntary ManslaughterRead the Press Release
Greenbelt, Maryland –Dontaze Purnell Drake, age 41, of Baltimore, Maryland pleaded guilty today to involuntary manslaughter. Drake admitted that he caused a fatal collision on the Baltimore-Washington Parkway on September 24, 2017, in which he was speeding, his blood-alcohol level was over the legal limit in Maryland, and he was driving on a suspended license.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Chief Robert D. MacLean of the U.S. Park Police.
According to his plea agreement, at approximately 3:00 a.m. on September 24, 2017, Drake caused a fatal collision on the Baltimore-Washington Parkway. Drake was traveling southbound at approximately 33 miles per hour over the posted speed limit when he attempted to pass a vehicle traveling in the right lane. Drake struck the rear of an SUV traveling in the right lane. As a result of the collision, one of the four passengers in the SUV was ejected from the vehicle and was pronounced dead at the scene. An autopsy determined that the cause of death was multiple injuries sustained in the crash caused by Drake.
Drake’s blood-alcohol level was .12%, which is above the legal limit in Maryland, and he also had .03 mg/L of MDMA, also known as Ecstasy, in his system at the time. In addition, a search of the Maryland Motor Vehicle Administration database revealed that Drake’s license had been suspended.
Drake faces a maximum sentence of eight years in prison, which U.S. District Judge George J. Hazel has scheduled for November 8, 2018, at 2:00 p.m.
United States Attorney Robert K. Hur praised U.S. Park Police for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Hollis Raphael Weisman and Special Assistant U.S. Attorney Chimaobim Nwachukwu, who prosecuted the case.
Dominican Republic National Sentenced for Illegal Reentry into the United StatesRead the Press Release
St. Thomas, USVI – Gustavo Adolfo Jimenez Polanco, 30, a Dominican Republic National, was sentenced today in district court for illegally re-entering the United States, United States Attorney Gretchen Shappert announced.
District Court Judge Curtis V. Gomez sentenced Polanco to 12 months and one day incarceration, three years of supervised release and a $100 special assessment.
According to court documents, Polanco appeared at the Cyril E. King Airport on February 10th and was questioned regarding a Florida Driver’s License that he presented to the primary inspector at the Customs and Border Protection check point. The primary inspector referred him to secondary inspection where it was determined Polanco was a Dominican Republic National previously deported from the United States on July 1, 2014.
This case was investigated by Homeland Security Investigations (HSI). It was prosecuted by Assistant United States Attorney Everard E. Potter.
Dominican Man Sentenced to Five Years in Prison for Fentanyl TraffickingRead the Press Release
CONCORD - United States Attorney Scott W. Murray announced today that Yossi Rafael Rincon Ramirez, 42, of the Dominican Republic, was sentenced to 60 months in federal prison for participating in a fentanyl trafficking conspiracy and for distributing fentanyl.
According to court documents and statements made in court, from at least December 6, 2016, through May 2, 2017, the defendant delivered fentanyl to customers on behalf of a drug dealer based in Lawrence, Massachusetts. On four separate occasions, the defendant sold fentanyl to an undercover DEA agent in Nashua, New Hampshire, and on May 2, 2017, law enforcement officers arrested Rincon Ramirez as he travelled to Nashua to make another drug delivery.
On April 23, 2018, Rincon Ramirez pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute fentanyl and four counts of distribution of a controlled substance. He is likely to be deported to the Dominican Republic after serving his sentence.
“Stopping fentanyl from coming into New Hampshire is a top priority of this office,” said U.S. Attorney Murray. “This dangerous drug continues to cause many deaths and extensive damage our communities. We will continue to work closely with our law enforcement partners to prosecute traffickers who bring fentanyl into the Granite State.”
“New Hampshire is in the midst of a devastating opioid crisis, as deaths from fentanyl climb,” said DEA Special Agent in Charge Brian D. Boyle. “The DEA will continue to use every resource available to identify those like Mr. Rincon Ramirez, who are coming from out of state to contribute to this crisis. DEA’s top priority is combatting the opioid epidemic by working with our local, county, state and federal law enforcement partners to bring to justice anyone who distributes deadly drugs.”
This matter was investigated by the DEA, with the assistance of the Massachusetts State Police, the Massachusetts Attorney General’s Office, and the police departments of Hudson, NH, Nashua, NH, and Methuen, MA. Assistant U.S. Attorney Shane B. Kelbley prosecuted the case.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Delaware County Man Charged with CarjackingRead the Press Release
Philadelphia, PA – U.S. Attorney William M. McSwain announced today that John Leroy Gordon, 26, of Chester, Pennsylvania, was charged today by Indictment with one count of carjacking in violation of Title 18, United States Code, Section 2119, and one count of brandishing, using, and carrying a firearm during and in relation to a crime of violence in violation of title 18, United States Code, Section 924(c)(1)(A)(ii).
If convicted the defendant faces a maximum possible sentence of life imprisonment, a mandatory minimum 7 years’ imprisonment consecutive to any other sentence of imprisonment imposed, up to 5 years’ supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation, Chester Police Department, and Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Sarah Damiani.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed
innocent unless and until proven guilty.
Defendant Sentenced Today for Firearm and Drug Trafficking OffenseRead the Press Release
U.S. Attorney Duane A. Evans announced that SEAN BRIGGS, a/k/a “Big Sean,” a/k/a “Big C,” age 33, was sentenced today to 60 months imprisonment for one count of Possession of a Firearm in Furtherance of a Drug Trafficking crime in violation of Title 18, United States Code, Section 924(c)(1)(A).
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U.S. Attorney Evans praised the work of the continued coordinated effort of the federal and state law enforcement authorities, including the United States Attorney’s Office, the Federal Bureau of Investigation’s New Orleans Gang Task Force, and the New Orleans Police Department. Assistant United States Attorney Elizabeth Privitera is in charge of the prosecution.
Correctional Officer Arrested for Accepting A Bribe to Smuggle Cellphones into the Metropolitan Correctional CenterRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Guido Modano, Special Agent-in-Charge of the New York Field Office of the Department of Justice Office of the Inspector General (“DOJ OIG”) announced today the unsealing of a criminal Complaint in Manhattan federal court charging federal correctional officer DARIO QUIRUMBAY with taking a bribe in exchange for smuggling contraband into the Metropolitan Correctional Center (“MCC”), a Manhattan detention facility that houses federal inmates. QUIRUMBAY was arrested this morning and will be presented today before Magistrate Judge Robert W. Lehrburger.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Dario Quirumbay abused the trust placed in him by the Department of Justice and used his position to enrich himself by smuggling prohibited contraband inside a correctional facility in exchange for cash. Now he finds himself on the other side of the law.”
DOJ OIG Special Agent-in-Charge Guido Modano said: “Corruption has no place in our federal correctional system and will not be tolerated. The OIG is committed to investigating allegations of corrupt employees within the Federal Bureau of Prisons and the Department of Justice.”
According to the allegations in the Complaint unsealed today in Manhattan federal court[1]:
QUIRUMBAY has been employed as a correctional officer at the MCC since 2016.
QUIRUMBAY, in exchange for approximately $1,000, agreed to smuggle two cellphones into the MCC and also provided an inmate with alcohol. QUIRUMBAY met with a relative of one of the inmates in his custody to retrieve his cash bribe and two Apple iPhones, which QUIRUMBAY then delivered to an inmate inside the MCC.
* * *
QUIRUMBAY, 29, of Jersey City, New Jersey, has been charged in the Complaint with one count of conspiracy to commit bribery and to provide contraband in a prison, which carries a maximum prison term of five years; one count of bribery, which carries a maximum prison term of 15 years; one count of providing contraband in a prison, which carries a maximum prison term of one year; one count of conspiracy to commit honest services wire fraud, which carries a maximum prison term of 20 years. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the DOJ Office of the Inspector General in this investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Ryan B. Finkel is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Cincinnati Man Sentenced to 150 Months for Illegal Distribution of Crystal MethamphetamineRead the Press Release
COVINGTON, Ky. – Ronald Fryman, 38, of Cincinnati, was sentenced today to 150 months in federal prison, by United States District Judge David L. Bunning, for unlawful distribution of crystal methamphetamine.
Fryman previously pleaded guilty to unlawful distribution of crystal methamphetamine, on May 11, 2018. According to his guilty plea agreement, on July 21, 2016, Fryman sold an informant 27.5 grams of methamphetamine, in the parking lot of the Florence Mall, in Boone County. On September 22, 2016, the Defendant again sold an informant 25.7 grams of methamphetamine, near the same location. Both substances were confirmed to be actual methamphetamine, known as crystal methamphetamine. Fryman admitted that he was responsible for distributing at least 50 grams of the drug.
Fryman also admitted that he had previously been convicted of First Degree Possession of a Controlled Substance in Campbell County, in April of 2013.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), jointly made the announcement. The investigation was conducted by the DEA. The United States was represented by Assistant United States Attorney Laura Voorhees.
Charlotte Man Is Sentenced to 10 Years in Prison on Drug and Gun ChargesRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn, Jr. sentenced today Anthony Latrel Player, 28, of Charlotte, to 10 years in federal prison for conspiracy to distribute and to possess with intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Player was also ordered to serve four years under court supervision after he is released from prison.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Chief Kerr Putney of the Charlotte Mecklenburg Police Department, join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s sentencing hearing, beginning in December 2016, law enforcement identified Player as a regional drug trafficker of a Drug Trafficking Organization (DTO) distributing heroin in the greater Charlotte area. Court records show that Player trafficked over 100 grams of heroin, often mixed with other drugs, to include Fentanyl. Court records also show that on January 26, 2017, Player sold approximately two grams of heroin for $200 to a 27-year-old female, who later died of a drug overdose. Player continued to sell heroin until he was arrested in July 2017. Court records show that over the course of the investigation, law enforcement determined that Player conducted drug sales at or near a playground in Charlotte, and, at times, he used the playground equipment as a designated drop-off area for drugs and money. On July 25, 2017, law enforcement executed a search warrant at Player’s residence, seizing narcotics, $545 in cash, and two loaded firearms.
In sentencing Player, Judge Cogburn commented on this nation’s opioid epidemic, and stated that Player’s drug cocktails had a devastating effect on the community.
Player is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
U.S. Attorney Murray thanks the DEA and CMPD for leading this investigation. Assistant U.S. Attorney Sanjeev Bhasker, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
California Man Arrested on Charges of Conspiracy to Launder Funds of Business Mail Compromise (BEC) FraudRead the Press Release
BOSTON - A Los Angeles man was arrested yesterday and charged in connection with a conspiracy to launder funds derived from Business Email Compromise (BEC) fraud schemes.
Ochenetchouwe Adegor Ederaine Jr., a/k/a Ochenetchouwe Adegor, a/k/a David Tecum, a/k/a Gary Dube, a/k/a Joel Akibo, a/k/a James Oliver, a/k/a Israel Patrick, a/k/a Michael Baker, 29, was indicted on one count of money laundering conspiracy. He will appear in federal court in Boston at a later date.
According to court documents, around March 2016, Ederaine was a member of an organization that engaged in wire fraud and related criminal activity. Ederaine laundered the proceeds of that fraud by engaging in bank transactions designed to conceal and disguise the nature, location, source, ownership, and control of the fraud proceeds. Ederaine opened numerous bank accounts under false identities and withdrew large sums of money.
Specifically, it is alleged that between March 2016 and November 2017, Ederaine used counterfeit passports and other false identification documents to open approximately 23 bank accounts at different banks in the greater Los Angeles area using six different false identities. Once Ederaine opened a bank account, that account would receive wire transfers consisting of proceeds of various fraudulent schemes.
In one instance, Ederaine’s co-conspirators gained access to email accounts belonging to a Massachusetts attorney engaged in real estate closings. Subsequent emails sent from co-conspirators to recipients in Massachusetts “spoofed” the attorney’s account, which caused the purchaser in a real estate transaction to transfer $531,981 (intended to be used for payment in connection with a real estate transaction) to the account of a woman who in turn sent $60,000 to an account in the name of “David Tecum,” one of the fraudulent identities used by Ederaine. Shortly after receiving the funds in the “Tecum” account, Ederaine withdrew approximately $9,000 in cash from the account.
Ederaine faces a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the value of the funds laundered in the conspiracy. 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 Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, made the announcement today. Assistance was also provided by the United States Attorney’s Office and the FBI in the Central District of California. Assistant U.S. Attorneys David D’Addio and Amy Harman Burkart of Lelling’s Cybercrime Unit are prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
California Doctor Convicted of Medicare Kickback ConspiracyRead the Press Release
A federal jury in Los Angeles, California found a Lancaster, California doctor guilty today of conspiracy for his role in a Medicare kickback conspiracy involving a Los Angeles-area home health agency.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicola T. Hanna of the Central District of California, Special Agent in Charge Christian J. Schrank of the U.S. Department of Health and Human Services
Office of Inspector General’s (HHS-OIG) Los Angeles Regional Office and Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Division made the announcement.
Kanagasabai Kanakeswaran, M.D., 65, was convicted of one count of conspiracy to pay and/or receive kickbacks for Medicare referrals and four counts of receiving kickbacks for Medicare referrals after a six-day trial. Sentencing has been scheduled for Jan. 7, 2019 before U.S. District Judge Philip S. Gutierrez of the Central District of California, who presided over the trial.
According to evidence presented at trial, from 2008 to 2016, Kanakeswaran and others engaged in a conspiracy to refer Medicare patients to Star Home Health Resources (Star), a home health agency located in La Verne, California in exchange for illegal kickback payments. Kanakeswaran received cash kickback payments, as well as kickback payments by check through a company Kanakeswaran owned called Digital Perfection Corporation, the evidence showed.
As a result of the conspiracy, the owners and operators of Star submitted claims to Medicare based on the Medicare beneficiaries that Kanakeswaran referred to Star, and Medicare paid approximately $4.1 million based on those claims, the evidence showed.
This case was investigated by HHS-OIG and the FBI. Trial Attorney Claire Yan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Alexander F. Porter of the Major Frauds Section of the Central District of California are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is 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 locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,700 defendants who collectively have falsely billed the Medicare program over $14 billion.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Brazilian Man Pleads Guilty to Intimidating and Interfering with a Flight Crew and Flight AttendantsRead the Press Release
Guilherme Alves De Melo (Alves), age 32, a citizen of Brazil, pled guilty today to one count of intimidating a flight crew member and flight attendants, thereby lessening or interfering with their ability to perform their duties, in violation of federal law. The charge was contained in an Indictment returned July 25, 2018, in United States District Court in Cedar Rapids.
An affidavit previously filed in the case alleged that, on or about June 23, 2018, Alves was a passenger on an international American Airlines flight originating in Calgary, Canada, and bound for Chicago, Illinois. During the flight, Alves became disruptive and a flight attendant repeatedly told him that he needed to calm down. The flight attendant brought the disruptive conduct to the attention of the captain. About an hour before the flight was to arrive in Chicago, Alves again became disruptive and was scaring others passengers. Less than a minute later, Alves “lost it,” leading to some of the passengers restraining him with zip ties provided by the flight crew. As a result of Alves’ behavior, the flight was diverted to the Eastern Iowa Airport in Cedar Rapids after it had begun its final descent to Chicago.
After the aircraft landed in Cedar Rapids, Alves was removed from the airplane by Cedar Rapids Police. However, he again became loud and used expletives within sight and sound of other passengers and employees at the airport. Alves was charged with disorderly conduct for these actions and, on June 24, 2018, pleaded guilty to disorderly conduct in Linn County District Court.
Alves faces a maximum sentence of 20 years’ imprisonment, a $250,000 fine, and 5 years of supervised release following any imprisonment. A sentencing date will be set at a later date.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by Homeland Security Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-00071.
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Bookkeeper sentenced for defrauding small Franklin, Indiana businessRead the Press Release
$315,000 fraud nearly bankrupted employer
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler today announced that Erica Howard, 42, of Indianapolis, was sentenced in federal court for her role in a two-year scheme to siphon funds from her employer, a family-owned construction company. Howard, who has an over 10-year history of multiple convictions for fraud, forgery, and theft, was sentenced to 58 months (nearly five years) by U. S. District Court Judge William T. Lawrence.
“Fraud on a small business often impacts much more than the bottom line,” Minkler said. “It can cost people good jobs, as it did here and breeds distrust, especially when the fraud is perpetrated by a trusted employee. People who exploit a position of trust for purely personal gain will be held accountable to the fullest extent of the law.”
Just months after starting as bookkeeper, Howard began diverting thousands in company funds to herself. She exploited her access to company accounts online to pay over a dozen personal credit cards and buy electronics and other items on Amazon.
Howard concealed her fraud for over two years. Entrusted with keeping the company books, she never noted her personal uses of company funds. Then, each year, she delivered the false books to the company’s accountant, along with a set of phony bank statements that she had manipulated to make the numbers match.
Howard’s fraud was finally discovered when a company check bounced. By then, she had funneled over $315,000 in company money to herself and, in the process, concealed the fact that she had not paid hundreds of thousands in company bills. As a result, the company’s owners were forced to lay off workers and liquidate retirement savings to keep the business afloat.
Following an investigation by the Federal Bureau of Investigation and Franklin Police Department, Howard pleaded guilty to the federal wire fraud charge. According to Assistant United States Attorney Nick Linder, who prosecuted this case for the government, Howard must serve three years of supervised release after her sentence and make full restitution to the victim.
“Ms. Howard was entrusted with the finances of this family owned business but chose to betray that trust for her own financial gain. Those actions not only affected the company’s owners, but employees who lost their jobs through no fault of their own,” said Robert A. Middleton, Acting Special Agent in Charge of the FBI’s Indianapolis Division. “The FBI will continue to work diligently with our law enforcement partners to investigate cases such as this and ensure the perpetrators are brought to justice.”
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting criminals who exploit positions of trust to perpetrate elaborate fraud schemes. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.1
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Bookkeeper Sentenced for Embezzling $1.7 Million in Client FundsRead the Press Release
HOUSTON – A local woman has been ordered to federal prison following her conviction of 12 counts of mail and wire fraud and four counts of filing a false tax return, announced U.S. Attorney Ryan K. Patrick. Gwendolyn M. Berry pleaded guilty Feb. 5, 2018.
Today, U.S. District Judge Gray Miller handed Berry a 51-month sentence to be immediately followed by three years of supervised release. Berry was ordered to pay $1,820,858.40 in restitution to her fraud victims and an additional $344,268 in restitution to the IRS.
At the hearing, Judge Miller determined Berry used sophisticated means in carry out her scheme to defraud and abused her position of trust. In handing down the sentence, the court noted that Berry engaged in this criminal activity over many years and took measures to conceal her misappropriation of funds.
Berry embezzled more than $1.8 million from a family’s bank accounts by writing checks on their accounts to pay her personal bills and those of family members.
Berry also pleaded guilty to filing false federal tax returns for the tax years 2011 through 2014. In each of those tax returns, Berry omitted reporting the money she embezzled from her victims.
Berry was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The U.S. Secret Service and IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the case.
Beaumont Man Guilty of Child Pornography ViolationsRead the Press Release
BEAUMONT, Texas – A 45-year-old Beaumont, Texas man has been found guilty of child pornography violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Willie Lampley was found guilty of receipt of child pornography and possession of child pornography today by a jury following a two-day trial before U.S. District Judge Marcia A. Crone.
According to information presented in court, beginning in July 2017, Lampley began searching for and downloading child pornography using Peer-to-Peer file sharing networks. Lampley stored more than 300 videos and 100 images of children being sexually abused on the hard-drive of his computer. Some of the material depicted children as young as infants and toddlers.
Under federal statutes, Lampley faces a minimum of five years up to 30 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
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 U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Beaumont Police Department and Homeland Security Investigations and prosecuted by Assistant U.S. Attorneys Russell E. James and Christopher T. Tortorice.
Baton Rouge Man Sentenced to Federal Prison for Bank Fraud, Money Laundering and Obstruction of Internal Revenue LawsRead the Press Release
United States Attorney Brandon J. Fremin announced that U.S. District Judge John W. deGravelles sentenced ADRIAN C. HAMMOND, JR., age 38, of Baton Rouge, Louisiana, to 12 months and one day in federal prison following his convictions for bank fraud, money laundering and obstructing the administration of Internal Revenue laws. The Court further sentenced HAMMOND to three years of supervised release following his term of imprisonment. HAMMOND was also ordered to pay $200,719.59 restitution to Red River Bank, $58,000 restitution to the Internal Revenue Service, and to forfeit an additional $213,656.12.
As the defendant admitted in connection with his guilty pleas, HAMMOND owned and/or operated a number of businesses, including 51/50 Productions, LLC and Affiliate Nation, LLC, through which he worked as a studio producer and event promoter, and Northgate Investments, LLC. In 2013, HAMMOND opened a new business, Best Boilers Seafood, LLC, which HAMMOND represented would operate a full-service seafood restaurant in Baton Rouge.
In connection with his efforts to open Best Boilers, however, HAMMOND knowingly executed a scheme to defraud a local bank. In February of 2013, HAMMOND caused Fidelity Bank of Baton Rouge, now known as Red River Bank, to approve two new business loans worth more than $300,000. After the new loans were in place, HAMMOND provided the bank with two invoices from a Baton Rouge restaurant supply company that appeared to reflect that HAMMOND had purchased approximately $132,000 of equipment. HAMMOND had not purchased the equipment reflected on the invoices, nor had he incurred the expenses reflected on the invoices, nor did he have any intention of doing so at the time he submitted the documents to the bank. Based on the false documents, the bank began disbursing loan proceeds to HAMMOND, including two cashier’s checks payable to the vendor having a value of approximately $132,978.
After gaining control of the funds, HAMMOND illegally laundered the proceeds. First, HAMMOND deposited the checks into a Regions Bank account in the name of a company with a name that was substantially similar to the vendor’s actual name. HAMMOND had previously caused an individual who lived in Georgia to open the account in Georgia pursuant to his instructions. HAMMOND then caused the majority of the funds that had been deposited into the Georgia account to be transferred to yet another Regions Bank account that HAMMOND controlled, from which HAMMOND withdrew much of the funds in cash. HAMMOND knew that the funds represented the proceeds of unlawful activity and intended to conceal and disguise the location and control of the money.
Meanwhile, from 2011 through 2016, HAMMOND had a significant unpaid tax liability with the Department of Treasury—Internal Revenue Service (“IRS”). Through a series of acts, he attempted to impede and obstruct the IRS in an effort to unjustly enrich himself, appear more credit-worthy to third parties than he actually was, and evade the IRS’s efforts to collect money owed by HAMMOND. For instance, in 2014, after the IRS filed a Notice of Tax Lien against HAMMOND for more than $110,000 in unpaid taxes, HAMMOND caused a fraudulent lien withdrawal to be filed with the 19th Judicial District Court for East Baton Rouge Parish. The fraudulent document purportedly withdrew the federal tax lien that had previously been filed against HAMMOND, even though HAMMOND knew that he had not paid his unpaid liability.
By early 2016, HAMMOND’s tax liability remained outstanding. The IRS issued a levy notice to Southern University and A&M College (“Southern”), which had entered into a contract with HAMMOND, through Affiliate Nation, to provide entertainment for an upcoming concert, at a cost of more than $220,000. When Southern advised HAMMOND that it intended to honor the levy and withhold some of the funds that Southern would otherwise have paid to HAMMOND, HAMMOND terminated the contract. HAMMOND then caused an acquaintance of his to obtain the same contract with Southern, and after his acquaintance began receiving funds from Southern, HAMMOND persuaded the acquaintance to route more than $60,000 of the funds to him, unbeknownst to Southern. HAMMOND deposited the funds into the bank account of another one of his businesses, Boil & Roux Kitchen, LLC, which allowed HAMMOND to gain control over funds that otherwise would have been used to meet his long-standing tax delinquency.
U.S. Attorney Fremin stated, “This case should serve as a strong reminder that we will work closely with our law enforcement partners to identify, investigate, and prosecute significant financial crimes affecting victims in our district. We will not be deterred by a defendant’s sophisticated attempts to avoid the law, such as this defendant’s elaborate scheme to launder some of thes fraudulent proceeds of his crimes and hide other income that was long overdue to the United States Treasury. I am especially appreciative of the dedicated, professional IRS employees who worked diligently, for years, to try to hold Mr. Hammond responsible for his years of unpaid bills and prompt him to comply with the same tax laws that the rest of us follow. The federal prison sentence that Mr. Hammond will serve in this case will hopefully deter him and others from similar criminal conduct in the future, and the restitution and forfeiture orders imposed by the court will help us provide recovery for the victims.”
TIGTA Special Agent in Charge Gary Smith stated, “It is the mission of the TIGTA to protect the integrity of the Internal Revenue Service and promote the fair administration of our Federal tax system. TIGTA continues to work closely with the United States Attorney’s Office and all of our law enforcement partners to hold individuals responsible for their attempts to interfere with our nation’s tax system for personal gain.”
The investigation was led by the U.S. Treasury Inspector General for Tax Administration (TIGTA) and the Federal Bureau of Investigation, which received valuable assistance from the Internal Revenue Service’s Examination and Collection Divisions. The case was prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as Deputy Chief within the office’s Criminal Division.
Baltimore Man Pleads Guilty to Armed RobberyRead the Press Release
Baltimore, Maryland – James Atkinson, age 28, of Baltimore, Maryland, pleaded guilty today to an armed robbery.
The guilty plea 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; and Interim Commissioner Gary Tuggle of the Baltimore Police Department.
According to his plea agreement, on February 23, 2018, Atkinson went to a Baltimore car rental agency and requested that the security deposit for a vehicle “his wife” had recently rented be returned to him. In reality, “his wife” was a drug customer of Atkinson’s, whom Atkinson would direct to rent cars on his behalf in return for drugs and/or cash. The rental agency employee checked the company’s records and discovered that the rental car had been returned with multiple bullet holes in the car door. The employee advised that the security deposit would not be returned until the repairs had been paid for. Atkinson then asked if there were any vehicles available to rent, but there were no vehicles available. The employee asked Atkinson to leave because he was closing up for the night.
Atkinson pointed a revolver at the employee and demanded money. Atkinson stole $405 from the employee’s desk drawer, and the victim’s phone and wallet, which contained $207. Atkinson then demanded a car and the victim advised that there were keys to a car in the back room. Atkinson went back and took the keys to a black Hyundai Elantra, then produced a stun gun and began to shock the victim on the arm while he was kneeling on the floor. Atkinson ordered the victim into an adjacent room. The victim walked into the room, then ran up the stairs. Atkinson left the office and departed in the Elantra.
The victim ran downstairs, called 911, and began cancelling the credit cards that were in his stolen wallet. Investigation determined that Atkinson attempted to make two unauthorized purchases using a credit and debit card stolen from the victim. One of the attempts was on the website of a large retailer and included Atkinson’s name, address, and telephone number.
Atkinson and the government have agreed that if the Court accepts the plea agreement, Atkinson will be sentenced to 12 years in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for November 28, 2018 at 11:00 a.m.
United States Attorney Robert K. Hur commended the FBI and Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Burden H. Walker and James G. Warwick, who are prosecuting the case.