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Wednesday 1 August 2018
Jury Convicts Man Who Hacked Boston Children's Hospital and Wayside Youth & Family Support NetworkRead the Press Release
BOSTON – A Somerville man was convicted today by a federal jury of orchestrating disruptive computer attacks on Boston Children’s Hospital and Wayside Youth and Family Support Network.
Martin Gottesfeld, 32, was convicted of one count of conspiracy to damage protected computers and one count of damaging protected computers. U.S. District Court Judge Nathaniel Gorton scheduled sentencing for Nov. 14, 2018. Gottesfeld was charged in February 2016.
On March 25, 2014, Gottesfeld conducted a distributed denial of service – or DDOS – attack against Wayside Youth and Family Support Network, a nonprofit, Framingham-based residential treatment facility that provides a range of mental health counseling and family support services to children, young adults, and families in Massachusetts. The attack crippled Wayside’s network for more than a week and caused the facility to spend $18,000 on response and mitigation efforts.
Following the attack on Wayside’s computer network, Gottesfeld launched a massive DDOS attack against the computer network of the Boston Children’s Hospital. He customized malicious software that he installed on 40,000 network routers that he was then able to control from his home computer. After spending more than a week preparing his methods, on April 19, 2014, he unleashed a DDOS attack that directed so much hostile traffic at the Children’s Hospital computer network that he not only knocked Boston Children’s Hospital off the internet, but knocked several other hospitals in the Longwood Medical Area off the internet as well.
Gottesfeld identified himself as a member of the hacking group Anonymous, and launched the attacks on behalf of Anonymous, demanding change in the way the Boston Children’s Hospital was handling a teenage patient (discharged months earlier), who was the subject of a custody battle between her parents and the Commonwealth of Massachusetts.
The attack flooded 65,000 IP addresses used by Boston Children’s Hospital and several other area hospitals with junk data intended to make those computers unavailable for legitimate communications. The attack disrupted the Children’s Hospital network for at least two weeks, interrupting access to internet services used by Boston Children’s Hospital staff to treat patients. The attack disrupted the hospital’s day-to-day operations, as well as its research capabilities. The attack cost the hospital more than $300,000 and caused an additional estimated $300,000 loss in donations, as the attack disabled the hospital’s fundraising portal.
In October 2014, federal law enforcement searched Gottesfeld’s home and recovered a number of computers, servers, and hard drives. Gottesfeld, however, was not formally charged with a crime at the time the search warrant was executed.
In February 2016, local police conducted a wellness check at Gottesfeld’s apartment after relatives and his employer grew concerned about his whereabouts. When police arrived at his home, no one was there.
On Feb. 16, 2016, Gottesfeld and his wife made a distress call from a small boat off the coast of Cuba. A nearby Disney Cruise Ship responded and rescued the couple. The ship returned to Miami and Gottesfeld was arrested.
The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000 and restitution. The charge of damaging protected computers provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Andrew E. Lelling and Harold Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorneys David J. D’Addio and Seth Kosto of Lelling’s Cybercrime Unit are prosecuting the case.
Jefferson County, Ohio man sentenced for firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Shaheim Price, of Wintersville, Ohio, was sentenced today to 30 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Price, age 24, pled guilty to one count of “Unlawful Possession of a Firearm” in April 2018. Price, having previously been convicted of a felony, admitted to possessing a 9mm pistol. The crime occurred in Ohio County in October 2017.
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.
Assistant U.S. Attorney Steven L. Vogrin prosecuted the case on behalf of the government. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.Jackson Man Pleads Guilty to Cocaine and Crack ConspiracyRead the Press Release
Jackson, Miss. – L.C. Hatfield, Jr., 43, of Jackson, pled guilty today before Chief U.S. District Judge Daniel P. Jordan III to his role in a conspiracy to possess with the intent to distribute more than 280 grams of cocaine base ("crack") and more than 500 grams of a detectible amount of cocaine hydrochloride, announced U.S. Attorney Mike Hurst and Drug Enforcement Administration (DEA) Assistant Special Agent in Charge J. Derryle Smith.
In October and November 2015, Hatfield was responsible for distributing cocaine and crack to individuals out of a residence located in Jackson. The case is the result of an extensive investigation, dubbed "Rock Bottom", which began as an operation targeting illegal narcotics distribution in central Mississippi that involved the distribution of cocaine, crack and methamphetamine.
Hatfield will be sentenced by Judge Jordan on October 26, 2018 at 9:00 a.m., and faces a maximum penalty of life in prison and a $10 million fine.
The case was investigated by the Drug Enforcement Administration, the Mississippi Bureau of Narcotics, and the Bureau of Alcohol Tobacco Firearms and Explosives with assistance from: Hinds County Sheriff’s Office, Ridgeland Police Department, Jackson Police Department, U.S. Marshals Service, Federal Bureau of Investigation, Mississippi Highway Patrol, Madison County Sheriff’s Office, Brandon Police Department, Rankin County Sheriff’s Office, Mississippi Department of Corrections, Pearl Police Department, Flowood Police Department, Customs and Border Patrol, and the DEA Houston Field Division. It is being prosecuted by Assistant United States Attorney Chris Wansley.
Hoboken Man Charged with Secretly Photographing Minor on A Cruise ShipRead the Press Release
NEWARK, N.J. – A Hoboken man was arrested for allegedly using his cell phone to take a picture underneath a girl’s dress, U.S. Attorney Craig Carpenito announced.
Jeffrey Goldstein, 31, was arrested July 31, 2018 and charged by complaint with one count of violating a voyeurism statute that prohibits photographing a minor’s private area without consent when that individual has a reasonable expectation of privacy. He appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was released on $25,000 unsecured bond.
According to the complaint:
On July 8, 2018, a cruise ship left Bayonne for Bermuda. Goldstein was a passenger. That evening, a thirteen-year old girl was standing on the deck of the cruise ship facing outward toward the water.
Goldstein allegedly approached the victim and, without her permission, placed his iPhone underneath the skirt of her dress, pointed the camera upward towards the victim’s genitalia and buttocks and took a picture. The victim felt something touch her leg. Goldstein moved to the side of the victim and soon walked away.
A nearby adult saw Goldstein take a photo up the victim’s dress. Cruise ship personnel reviewed surveillance footage of the incident, which confirmed the witness’s account and identified Goldstein as the man in the footage.
Pursuant to a search warrant, the FBI later downloaded the contents of Goldstein’s iPhone and found the photo of the girl, along with several other “up-skirt” images.
Goldstein faces a maximum potential penalty of one year in prison and a $100,000 fine.
The federal government has special maritime jurisdiction. U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Matt Feldman of the U.S. Attorney’s Office Public Protection Unit in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Donald M. Lomurro Esq., Freehold, New Jersey.
Guatemalan National Detained on Child Pornography ChargesRead the Press Release
PROVIDENCE, RI –A Guatemalan national who was prevented from entering the United States illegally as he attempted to cross the U.S. border from Mexico in 2002 has been arrested in Rhode Island and ordered detained in federal custody on child pornography charges.
Samuel Mendez-Garcia, 42, of Providence, was ordered detained by U.S. District Court Magistrate Judge Lincoln D. Almond today on a criminal complaint charging him with one count each of possession of child pornography and distribution of child pornography.
An immigration detainer has also been lodged against Mendez-Garcia by U.S. Immigration and Customs Enforcement.
Mendez-Garcia’s arrest and detention are announced by United States Attorney Stephen G. Dambruch, Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh, and Rhode Island State Police Superintendent Colonel Ann C. Assumpico.
According to court documents, it is alleged that in late March the National Center for Missing and Exploited Children received information from security personnel at Facebook that a user of their services, with an IP address in Rhode Island, uploaded child pornography. The Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force reviewed the information and the postings, determining that the images and videos did in fact depict child pornography. Through their investigation, ICAC investigators determined that the IP address and the Facebook account belonged to Mendez-Garcia.
On July 19, 2018, members of the ICAC task force executed a court-authorized search of Mendez-Garcia’s residence, and seized a laptop computer and cell phone owned by Mendez-Garcia. Law enforcement officers also responded to Mendez-Garcia’s place of employment, and while speaking with him seized a cell phone that was in his possession.
On July 20, 2018, Facebook security personnel reported to the ICAC task force that additional images of alleged child pornography had been discovered on Mendez-Garcia’s Facebook account. A forensic analysis of one of Mendez-Garcia’s cell phones by a member of the ICAC task force allegedly revealed more than 50 videos and images depicting child pornography.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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Groton Man Who Sold Drugs to Overdose Victim is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ULPIANO LUGO, 38, of Groton, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 24 months of imprisonment, followed by three years of supervised release, for distributing narcotics to an individual who overdosed shortly thereafter.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on April 22, 2017, at approximately 7:37 p.m., Groton City Police and emergency medical personnel responded to a residence in Groton and found an unresponsive 37-year-old male in the bedroom of the residence. The victim was pronounced deceased at the scene. Officers collected from the bedroom one used syringe that was one-third full of an unknown liquid, a bent metal spoon with an off-white residue on the surface, one plastic bag with powder residue, and the victim’s cellphone.
Subsequent analysis of the powder residue revealed the presence of heroin and cocaine, and text messages from the victim’s cellphone confirmed that the victim had ordered narcotics from LUGO in the days before the victim’s death.
On May 8, 2018, LUGO pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin and/or cocaine.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force and the Groton City Police Department. The case was prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
Grand Jury Returns Superseding Indictment Charging Former Pittsburgh-area Doctor with Unlawfully Distributing Opioids, Health Care Fraud and Money LaunderingRead the Press Release
PITTSBURGH - A former suburban Pittsburgh physician has been indicted by a federal grand jury in Pittsburgh on charges of unlawfully distributing controlled substances, conspiracy to unlawfully distribute controlled substances, health care fraud and money laundering, United States Attorney Scott W. Brady announced today.
The 121-count superseding indictment, returned on July 31, named Andrzej Kazimierz Zielke, 63, of Allison Park, Pennsylvania, (Hampton) as the sole defendant.
According to the superseding indictment, Zielke owned and operated Medical Frontiers, a holistic practice, located in Gibsonia, Pennsylvania. The indictment alleges that Zielke conspired to create and submit unlawful prescriptions for oxycodone, hydrocodone, morphine sulfate and methadone. The recipients of the unlawfully issued prescriptions then filled them at pharmacies. In addition, the indictment alleges Zielke committed health care fraud by causing fraudulent claims to be submitted to Medicare, Medicaid, Highmark, and workers’ compensation carriers for payments to cover the costs of the unlawfully prescribed drugs. Finally, the indictment alleges that Zielke violated federal money laundering statutes when he used proceeds obtained through his illegal drug distribution to purchase gold and silver coins.
"Western Pennsylvania is experiencing some of the highest opioid overdose death rates in the nation, rates driven not only by drug traffickers who distribute on our streets but also by those who peddle drugs out their medical offices," stated U.S. Attorney Brady. "We will continue our relentless pursuit of both, and today’s charges demonstrate that medical professionals who exploit their prescribing privileges for personal financial gain will be prosecuted to the fullest extent of the law."
On October 5, 2017, Zielke was arrested on a criminal complaint. He was charged in a 13-count indictment in November 2017. Zielke was the first medical provider indicted following Attorney General Jeff Sessions’ formation of the Opioid Fraud and Abuse Detection Unit, a Department of Justice initiative that uses data to target and prosecute individuals that are contributing to the nation’s opioid crisis. Since its formation, the Western District of Pennsylvania’s OFADU has charged 17 physicians or medical professionals.
The law provides for a maximum per count sentence of 10 years in prison, a fine of $500,000, or both, for the controlled substances offenses. Zielke faces an additional maximum per count sentence of 10 years and fine of $250,000 for the health care fraud charges; and a maximum per count sentence of 10 years and a fine of $250,000 for the money laundering offenses. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar and Special Assistant U.S. Attorney Summer Carroll of the Pennsylvania Attorney General’s Office are prosecuting this case on behalf of the government.
The investigation leading to the filing of charges in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations and the Pennsylvania Bureau of Licensing.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Gaffney Man Sentenced to Five Years in Federal Prison for Theft of Government FundsRead the Press Release
Columbia, South Carolina –------- United States Attorney Sherri A. Lydon announced today that James Littlejohn, age 66, of Gaffney, South Carolina, was sentenced for two counts of theft of United States government funds in violation of Title 18, United States Code, Section 641. Senior United States District Judge Henry M. Herlong, Jr., sentenced Littlejohn to serve five years in prison to be followed by three years of supervised release. Additionally, Littlejohn was ordered to pay restitution in the amount of $220,958.00.
At the guilty plea hearing on April 24, 2018, Assistant United States Attorney David C. Stephens advised the Court of the following facts. In February 2013 the Internal Revenue Service (IRS) received two Form 1040 Individual Income Tax Returns bearing Mr. Littlejohn’s name, address and Social Security Number. Each showed a large income with various deductions entitling Mr. Littlejohn to a refund for tax year 2011 of $98,261.44 and a refund for tax year 2012 of $122,696.56. Two checks in these amounts were sent to Mr. Littlejohn who cashed same and converted the funds to his own use. It was later learned that the Form 1040s were bogus and that Mr. Littlejohn was not entitled to the claimed refunds.
United States Attorney Lydon stated that the case had been investigated and prosecuted by Assistant United States Attorney Jaime Raich of the Southern District of Florida and Assistant United States Attorney David C. Stephens of the District of South Carolina, Greenville office.
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Franklinton Man Charged with Theft of Funds from the Department of Veterans AffairsRead the Press Release
U.S. Attorney Duane A. Evans announced that EVERETT J. ALLEMAN, JR., age 71, of Franklinton, Louisiana, was charged by way of a Bill of Information with one count of theft of government funds.
According to the charging document, ALLEMAN knowingly stole money of the United States Department of Veterans Affairs that did not belong to him in excess of $1,000.00. As a result, ALLEMAN faces a sentence of up to ten (10) years in prison, up to $250,000 in fines, and up to three (3) years of supervised release. The matter has been allotted to U.S. District Judge Africk.
U. S. Attorney Evans reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Veterans Affairs Office of Inspector General for their investigation of the matter. Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.
Former Suffolk County Legislator Fred Towle, Jr., Pleads Guilty to Making a False Tax ReturnRead the Press Release
Earlier today, in federal court in Central Islip, Fred Towle, Jr., pleaded guilty to making and subscribing a false tax return for the calendar year 2012 that underreported business income in order to avoid paying the proper tax owed. The guilty plea was entered before United States Magistrate Judge A. Kathleen Tomlinson. When sentenced, Towle faces a statutory maximum of three years in prison and a fine of up to $250,000. As part of his plea, Towle has agreed to pay $307,427 in restitution, the full amount of his tax liabilities.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Justin Campbell, Assistant Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the guilty plea.
“By his guilty plea, Fred Towle, Jr., has admitted cheating the United States out of hundreds of thousands of dollars owed in taxes by filing a false tax return that concealed a considerable amount of income he had earned from his businesses,” stated United States Attorney Donoghue. “This Office, together with our partners at the FBI and the IRS, recognizes that tax evasion victimizes every law-abiding, taxpaying American and we will vigorously prosecute those like the defendant who believe they’re above the law.”
“Despite his attempt to evade tax payments, Towle could not evade the inevitable repercussions of his actions, as he will now have to repay everything he owes,” stated FBI Assistant Director-in-Charge Sweeney. “For anyone under the misguided notion that our government can be successfully manipulated, today’s guilty plea evidently says otherwise. While maintaining a consistent partnership with the IRS, the FBI will not cease to investigate such manipulative individuals.”
“Federal income tax compliance should be equally shared among all Americans, especially those who have held a public trust position,” stated IRS-CI Assistant Special Agent-in-Charge Campbell. “Mr. Towle’s plea today, serves as an important reminder that IRS-CI is committed along with the United States Attorney’s Office and our law enforcement partners in bringing to justice those who skirt their tax responsibilities.”
During the relevant time period, Towle was the sole owner of a company called East Coast Marketing, which was utilized by Towle to, among other things, consult with political candidates and assist homeowners in expediting approvals for permits made to various governmental entities in Suffolk County. According to court documents filed in connection with the case, in 2012, Towle falsely reported no taxable income from businesses controlled by him, including East Coast Marketing, despite earning approximately $246,000 in taxable corporate income for that year. In total, between tax years 2012 and 2014, Towle failed to declare approximately $1.2 million in income, resulting in a tax loss to the United States of approximately $307,427.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Raymond A. Tierney and Catherine M. Mirabile are in charge of the prosecution.
The Defendant:FRED TOWLE, Jr.
Age: 52
Shirley, New YorkE.D.N.Y. Docket No. 18-CR-368 (JMA)
Former Puerto Rico Police Officer Found Guilty of Making False StatementsRead the Press Release
SAN JUAN, PR – Yesterday evening, after a seven-day jury trial, a jury found POPR Agent Iris Rivera Figueroa guilty of making false statements to federal authorities during a civil rights investigation, announced U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico. The trial was presided by U.S. District Court Judge Pedro A. Delgado.
On June 30, 2016, a 12-count indictment was unsealed charging four former Police of Puerto Rico (POPR) Caguas Drug Unit officers with civil rights violations and obstruction of justice arising out of a police operation conducted in Caguas, Puerto Rico, on August 15, 2015. The indictment alleged that during the police operation, the officers used excessive force against two arrestees and that they unlawfully seized, concealed and destroyed evidence of their misconduct.
According to the indictment, while acting under color of law, POPR Sergeant Maximo Cano Diaz physically struck an individual identified only as A.C.N., resulting in bodily injury. While acting under color of law, POPR Agent Antonio Rodríguez Ortiz assaulted an individual, identified only as G.A.H., by deploying a taser onto G.A.H.’s body, which resulted in bodily injury. Cano, Rodríguez and former POPR Agent Javier Ortiz González then commanded an individual, identified only as X.R.C., to stop recording video and surrender her cell phone while pointing a taser at her. The defendants allegedly then pursued X.R.C. to the gate of her home; seized her cell phone, which was used, in part, to record police conduct on or about August 15, 2015; and erased the contents of the cell phone by resetting the phone to its factory settings. On the same day, Cano allegedly seized and kept a cell phone belonging to another individual, identified only as J.R.D., which was also used to record police conduct. According to the allegations, Cano, Ortiz and POPR Agent Iris Rivera Figueroa then made false statements to cover up the conduct.
Cano plead guilty to one count of obstruction of justice on May 21, 2018 and his sentencing is scheduled for September 21, 2018. Javier Ortiz González plead guilty to one count of deprivation of rights under color of law on May 21, 2018, and his sentencing is scheduled for September 21, 2018. Antonio Rodríguez Ortiz went to trial in June of 2018 and was found not guilty of one count of obstruction of justice.
Iris Rivera Figueroa is facing a maximum sentence of five years in prison. The sentencing was scheduled for November 9, 2018, at 10:00 AM. This case was investigated by the FBI’s San Juan Division and prosecuted by Assistant U.S. Attorney José Contreras.
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Former Pima County Justice Court Employee Found Guilty of Child Pornography OffenseRead the Press Release
TUCSON, Ariz. – Yesterday, after a two-day trial, the Honorable Cindy K. Jorgenson found Daniel Courville, 42, of Tucson, Ariz., guilty of knowing access with intent to view child pornography depicting pre-pubescent minors. Courville faces a sentence of up to 20 years’ imprisonment, followed by lifetime supervised release, with stringent sex offender conditions, including the condition that he register as a sex offender.
Courville, who formerly worked as computer programmer and specialist for Pima County Justice Court, was indicted by a federal grand jury after an investigation revealed that Courville had searched for, downloaded, and accessed child pornography images and videos over the internet. Sentencing is scheduled for Oct. 23, 2018.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by agents from Homeland Security Investigations in Tucson. The prosecution was handled by Carin C. Duryee and Nathaniel J. Walters, District of Arizona, Tucson.
CASE NUMBER: CR-17-482-TUC-CKJ
RELEASE NUMBER: 2018-095_Courville
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Former Law Firm Office Manager Sentenced to Prison, Ordered to Pay Restitution for Bank Fraud SchemeRead the Press Release
PITTSBURGH, Pa – A former law firm office manager has been sentenced in federal court to 21 months imprisonment, three years of supervised release, and ordered to pay $827,020.39 in restitution on his conviction of one count of bank fraud, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Anthony Calaiaro, 34, of 5072 Grove Road, Pittsburgh, Pennsylvania (Whitehall).
According to information presented to the court, from June 2014 through approximately April 2016, Calaiaro, who was employed as an Office Manager for a law firm, wrote checks to himself and forged a partner’s signature on the checks. Calaiaro then cashed the forged checks at various locations and used the funds for his own personal use. The total loss is approximately $827,020.39.
Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Calaiaro.
Former Frederick Business Owner Convicted in Federal Court for over $49 Million Bank FraudRead the Press Release
Baltimore, Maryland – A federal jury has convicted Mark Ian Gaver, age 56, of Bonita Springs, Florida and previously of Middletown, Maryland of eight counts of bank fraud and two counts of money laundering arising from a scheme in which he obtained over $49 million in bank financing for his company Gaver Technologies, Inc. (GTI) using false and fraudulent financial statements, balance sheets, and certifications of outstanding accounts receivable. Gaver has been in custody since his arrest on November 15, 2017, when he entered the United States from Canada.
The guilty verdict 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 (FBI), Baltimore Field Office; and Special Agent in Charge Mark Higgins, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), Northeast Region.
According to the evidence presented at his 7-day trial, in 1998 Gaver formed GTI, an information technology company based in Frederick, Maryland. Between November 2008 and December 2016, Gaver submitted materially false financial documents to a federally insured bank, including fraudulent audit reports and contract status reports, in order to establish and to obtain successive increases in the line of credit from the lender for GTI. Based upon the false documentation submitted by Gaver, the lender ultimately extended $50 million in financing to GTI. The evidence showed that Gaver diverted a large portion of these fraudulently obtained funds to his own personal use.
According to the evidence presented at trial, the bank initially approved an $18.5 million line of credit for GTI in August 2009, when it took over the line of credit from another bank that had previously extended a $16.5 million line of credit to GTI. This line of credit was subsequently increased eight separate times between March 2010 and March 2016, growing from $18.5 million to a total of $50 million. On an ongoing monthly, quarterly, and annual basis, and in connection with each request by Gaver for an increase in GTI’s credit line, the bank required GTI to submit specific documentation disclosing the company’s financial performance and condition. The required documentation included audited annual financial statements, quarterly balance sheets, monthly borrowing base certificates, and monthly accounts receivable aging reports. The monthly borrowing base certificates required Gaver to certify the amount of GTI’s outstanding accounts receivable, and were used by the bank to establish a maximum borrowing amount for GTI. Under the terms of GTI’s line of credit agreement with the lender, GTI was only allowed to borrow up to 75% to 80% of the total amount of GTI’s outstanding accounts receivable, and the funds loaned by the bank were only to be used by GTI for business purposes.
According to testimony at trial, between August 2009 and December 2016, Gaver also submitted Quarterly Contract Status Reports to the bank, which falsely represented that GTI had secured contracts with federal government agencies, such as the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the National Aeronautics and Space Administration (NASA), or that overstated the amount of GTI’s ongoing contracts with federal government agencies.
The evidence showed that some of the funds obtained from the lender were used by Gaver to cover regular business expenses and thereby keep GTI open, but Gaver also diverted half of the post-2009 loan proceeds – approximately $15 million – to his own personal use. For example, Gaver used loan proceeds to pay $779,000 for the rental of private planes that he used for non-business purposes, as well as to pay for personal pleasure trips to the Bahamas, France, Germany, Mexico, Jamaica, and the Bahamas. Gaver also used the funds to purchase vacation homes, including a 4,000 square foot condominium with a view of the Gulf of Mexico in Bonita Springs, Florida, that cost $2.275 million. Gaver also used loan proceeds to purchase a 2012 Maserati Gran Turismo; a 2011 Mercedes Benz SL Roadster; and a private membership at an exclusive golf club located in Naples, Florida that cost $285,000.
Gaver faces a maximum sentence of 30 years in prison for each of the eight bank fraud counts, as well as 10 years in prison for each of the two money laundering charges. U.S. District Judge Richard D. Bennett has scheduled sentencing for Gaver on November 1, 2018 at 10 a.m.
United States Attorney Robert Hur commended the FBI and the FHFA-OIG for their work on the investigation. Mr. Hur also thanked Assistant U.S. Attorneys Jefferson M. Gray and Jeffrey J. Izant, who are prosecuting the case.
Former Financial Advisor Charged with Fraud in Alleged Ponzi Scheme Targeting Elderly InvestorsRead the Press Release
NEWARK, N.J. – A former registered investment advisor was arrested today on charges stemming from an investment fraud targeting elderly investors, U.S. Attorney Craig Carpenito announced.
Daniel Rivera, 48, of Hillsborough, New Jersey, was indicted by a federal grand jury on July 31, 2018, on three counts of wire fraud. He is scheduled to appear today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to the indictment:
From 2008 through 2017, Rivera allegedly engaged in an investment fraud where he solicited primarily elderly investors to invest their money in a company called Robbins Lane Properties Inc. Rivera told investors the company was staffed by experienced real estate professionals who used investor funds to invest in real estate ventures. Rivera allegedly told investors that by investing in Robbins Lane, senior investors would share in the company’s investment portfolio by lending it money to invest in real estate. Rivera further promised investors that they would receive a guaranteed monthly income, and that the company’s rate of return was based on secure real estate investments in the company’s portfolio. In reality, Robbins Lane had no employees, no real estate portfolio, and the monies used to pay investors as a purported return on their investments was from funds he received from other investors. Rivera allegedly also used funds sourced from investors to pay his personal and unrelated business expenses, including paying his child’s college tuition and sorority fees.
The counts of wire fraud with which Rivera is charged each carry a maximum potential punishment of 20 years in prison and a fine of up to $250,000, or twice the gross loss or gain caused by the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Dara Aquila Govan of the U.S. Attorney’s Office Cybercrimes Unit in Newark.
Former Director of Marketing and Merchandising for Pa-Liquor Control Board Sentenced to Two Years’ Probation and Six Months’ House Arrest for Honest Services Fraud SchemeRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that James H. Short, Jr., age 53, of Harrisburg, Pennsylvania, the former Director of Marketing and Merchandising for the Pennsylvania Liquor Control Board (PA-LCB) was sentenced on July 31, 2018, to two years’ probation and six months of house arrest by U.S. District Court Judge Sylvia H. Rambo, for a scheme to defraud the state, its citizens and the PA-LCB of their right to his honest services as a public official through bribes, kick-backs and concealing information.
According to United States Attorney David J. Freed, Short served as the Director of Marketing and Merchandising from approximately 2003 to 2012, and supervised the process through which alcoholic beverages are selected and acquired for sale in Pennsylvania’s state-run liquor stores. Between 2002 and 2012, Short received benefits from a distributor and a manufacturer of alcoholic beverages sold in Pennsylvania’s stores. These benefits included all-expense paid golf trips, cash, gift cards, meals, and other benefits. As Director of Marketing and Merchandising for the PA-LCB, Short supervised the process of recommending to the PA-LCB which new products should be sold and which products should no longer be sold in Pennsylvania’s 500 state-run liquor stores.
Short pled guilty to the charge of Honest Services Mail Fraud in September 2015.
The case was investigated by the Harrisburg Office of the FBI. Assistant United States Attorney Michael A. Consiglio prosecuted the case. The case initially was brought by the Pennsylvania Ethics Commission which found that Short violated the Pennsylvania Ethics act when he accepted certain things of value charged in the present federal case.
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Former Auburn, Georgia police officer sentenced for extortion and robberyRead the Press Release
ATLANTA - Charles Hubbard, a former police officer with the Auburn, Georgia Police Department, has been sentenced to federal prison for his role relating to conspiracies to commit extortion, traffic drugs, and commit robbery. Co-defendants, Shane J. Mattadeen, Wilfred Rivera, Michael L. Henley, Jr., Shaeib H. Morgan, Clem C. Williamson, and Martin Rosendary, were also charged in the scheme.
“Instead of enforcing the laws he swore to uphold, Hubbard abused his positon as a law enforcement officer by stealing from drug traffickers for his own financial gain,” said U.S. Attorney Byung J. “BJay” Pak. “We are grateful for our law enforcement partners who worked tirelessly to bring Hubbard and his co-conspirators to justice.”
“The overwhelming majority of police officers perform their duties with honor and professionalism,” said Daniel R. Salter, the Executive Director of the Atlanta-Carolinas High Intensity Drug Trafficking Area (HIDTA). “This defendant abused his position of trust by robbing drug dealers and now he must spend well-deserved time in prison for his criminal acts. This case would not have been possible without the dedicated cooperation between HIDTA, DEA, its law enforcement partners and the subsequent prosecution by the U.S. Attorney’s Office.”
“The public places trust in law enforcement officials and expects for officers to protect and serve them,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “When an officer violates his oath, this trust is eroded. The defendant in this case unfortunately does not fairly reflect the honest and hardworking men and women of law enforcement who put their lives on the line daily to protect its citizens. This case is a reminder that no officer is above the law. It is also a great example of what can be achieved when DEA works hand-in-hand with its law enforcement counterparts and the U.S. Attorney’s Office.”
According to U. S. Attorney Pak, the indictment, and other information presented in court: From 2009 until 2016, Hubbard partnered with at least six other people to identify, extort and rob drug dealers. After a several months’ long investigation, the planning for their latest exploit started on March 30, 2016, when a confidential source approached co-defendant Morgan with a plan to steal money from purported drug dealers who were going to give the confidential source $60,000 for a kilogram of heroin. The confidential source proposed that Morgan elicit Hubbard’s help, a sworn police officer with the Auburn, Georgia, Police Department, to conduct a fake traffic stop of the source and seize the money for the participants to split. That same day, Morgan presented the plan to Rosendary who, in turn, presented it to Hubbard. Hubbard agreed to participate in the robbery and extortion plan.
On April 4, 2016, DEA agents gave the confidential source $40,000. The source drove to an apartment complex where Hubbard, wearing a tactical police vest and police badge, approached the source and took the money. Hubbard, Rosendary, and Morgan met briefly, divided the money, and departed. DEA agents then arrested all three, but not before Rosendary led the agents on a high-speed chase which ended after Rosendary lost control of his vehicle. Morgan, who was the passenger in the vehicle, fled on foot and was tracked down by a canine. When the dog found him, Morgan had $10,000 in his pants and another $10,000 nearby. Hubbard was found with $20,000 in his vehicle.Charles Hubbard, 54, of Loganville, Georgia was sentenced to nine years in prison to be followed by three years of supervised release on July 30, 2018. Hubbard pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on August 17, 2016.
The other defendants pleaded guilty as follows:
●Martin Rosendary, 47, of Atlanta, Georgia pleaded guilty to conspiracy to obtain property by extortion under color of official right, conspiracy to possess cocaine with the intent to distribute, and conspiracy to commit robbery by force on September 2, 2016. Rosendary is scheduled to be sentenced on August 15, 2018.
●Shane J. Mattadeen, 41, of Lilburn, Georgia, pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on February 12, 2018. Mattadeen was sentenced to eight years in prison to be followed by five years of supervised release on July 10, 2018.
●Wilfred Rivera, 38, of Sugar Hill, Georgia pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on March 5, 2018. Rivera was sentenced to seven years, eight months in prison to be followed by three years of supervised release on June 4, 2018.
●Michael L. Henley, Jr., 32, of Alpharetta, Georgia, pleaded guilty to conspiracy to commit robbery by force on February 26, 2018. Henley was sentenced to six years, three months in prison to be followed by three years of supervised release on June 7, 2018.
●Shaeib H. Morgan, 42, of Stone Mountain, Georgia pleaded guilty to conspiracy to obtain property by extortion under color of official right and distribution of heroin on August 18, 2016. Morgan was sentenced to three years, 10 months in prison to be followed by three years of supervised release on May 28, 2018.
●Clem C. Williamson, 43, of Lawrenceville, Georgia, pleaded guilty to conspiracy to obtain property by extortion under color of official right and conspiracy to possess cocaine with the intent to distribute on August 29, 2017. Williamson was sentenced to one year, six months in prison to be followed by three years of supervised release on April 24, 2018.
This case was investigated by the Atlanta-Carolinas High Intensity Drug Trafficking Area Program, and the Drug Enforcement Administration, with assistance from the Georgia State Patrol and the Federal Bureau of Investigation.
Assistant U.S. Attorney Elizabeth M. Hathaway, Chief of the Narcotics and Dangerous Drugs Section, and Special Assistant U.S. Attorney Tyler A. Mann 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.
Felon from Ohkay Owingeh Pueblo Pleads Guilty to Unlawfully Possessing Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Ronald J. Martinez, 44, an enrolled member and resident of Ohkay Owingeh Pueblo, N.M., pled guilty this morning in federal court in Albuquerque, N.M., to violating the federal firearms laws by unlawfully possessing a firearm and ammunition.
Martinez was arrested in April 2017, on a criminal complaint charging him with assaulting an officer of the Ohkay Owingeh Tribal Police Department (Police Department) with a dangerous weapon and being a felon in possession of a firearm. According to the complaint, the offenses occurred when the officer responded to a call reporting that Martinez was threatening to shoot himself. When the officer arrived at the scene, Martinez assaulted the officer by threatening him with a large wooden stick. A shotgun was seized from the residence after Martinez was subdued and taken into custody.
Martinez was indicted on May 24, 2017, and was charged with assault with a dangerous weapon and with being a felon in possession of a firearm and ammunition. The indictment alleged that Martinez committed the crimes in April 2017, on Ohkay Owingeh Pueblo in Rio Arriba County, N.M. At the time, Martinez was prohibited from possessing firearms or ammunition because of his prior felony convictions for shooting at a dwelling, unlawful use of a firearm, assault resulting in serious bodily injury, and discharging of a firearm during a crime of violence.
During today’s change of plea hearing, Martinez pled guilty to being a felon in possession of a firearm and ammunition. In entering the guilty plea, Martinez admitted that on April 20, 2017, he unlawfully possessed a loaded firearm on Ohkay Owingeh Pueblo. Martinez acknowledged that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
At sentencing, Martinez faces a maximum penalty of ten years in federal prison. Martinez remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Northern Pueblos Agency of the BIA’s, Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Elisa Dimas.
Federal jury finds Breaux Bridge man guilty of distributing heroin in AcadianaRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced today that a federal jury found a Breaux Bridge man guilty of conspiring with three Lafayette residents to sell heroin.
Joshua Edwards, 32, of Breaux Bridge, Louisiana, was found guilty of one count of conspiracy to distribute and possess with intent to distribute controlled substances. United States District Judge Dee D. Drell presided over the trial, which started Monday and ended today. Evidence admitted at trial revealed that Edwards, along with Jacobe Arceneaux, 34; Terrence T. Woods, 33; and Robert Jenkins, 35, all of Lafayette, conspired to distribute heroin in the Acadiana area in 2016 and 2017. Law enforcement agents identified Arceneaux as a heroin supplier who used a relative’s home on Simcoe Street in Lafayette as a stash house and used the relative as an intermediary to sell drugs.
Edwards faces a minimum of 10 years to life in prison, eight years of supervised release and a $5 million fine. Sentencing has been set for October 31, 2018. Arceneaux pleaded guilty to the distribution count on July 13, 2017, and is scheduled to be sentenced on October 9, 2018. Woods pleaded guilty to the distribution count on September 20, 2017, and the sentencing date has not been set. Jenkins pleaded guilty to the distribution count on January 11, 2018, and he was sentenced on May 8, 2018 to 90 months in prison and four years of supervised release.
The FBI, DEA, Lafayette Metro Narcotics and other law enforcement agencies conducted the investigation. Assistant U.S. Attorneys Robert C. Abendroth and Daniel J. McCoy are prosecuting the case.
Federal Inmate Pleads to Weapon ChargeRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Mike Stuart announced today that a federal inmate pled guilty to a weapon charge. Sterling Cleggett, 35, an inmate at the Federal Correctional Institution at McDowell, pled guilty to possessing a weapon inside the prison. Stuart praised the investigative work of the Federal Bureau of Prisons.
“Yet another inmate found in possession of shank,” said United States Attorney Mike Stuart. “Another inmate that will receive an extended stay at the FCI.”
Cleggett admitted that on May 3, 2018, he possessed a handcrafted weapon commonly known as a “shank.” A prison staff member found the weapon inside Cleggett’s pants. Cleggett faces up to five years in prison when he is sentenced on December 11, 2018.
Assistant United States Attorney John File is prosecuting the case. Senior United States District Judge David A. Faber presided at the plea hearing.
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###Federal Drug and Violent Crime Enforcement Operation Nets 13 Defendants Wanted for Drugs, Guns, and Other ChargesRead the Press Release
ELIZABETH CITY – United States Attorney Robert J. Higdon, Jr. announced that “Operation Nor’easter,” a heroin and opioid centered Organized Crime and Drug Enforcement Task Force (OCDETF) Operation headed up by the Federal Bureau of Investigation resulted in the indictment of twelve (12) defendants for outstanding federal charges in a coordinated warrant enforcement operation. In addition, several defendants related to this operation were found to be in the custody of the State of North Carolina. Federal detainers have been filed against those subjects.
This operation was conducted as part of the Eastern District’s Take Back North Carolina Initiative designed to focus federal resources on the alarming level of opioid use and the deaths associated with it. This initiative is bringing the full weight of the federal court system in the fight against crime in Camden, Chowan, Currituck, Dare, Pasquotank, Perquimans, Tyrell, and Gates Counties in partnership with District Attorneys’ Offices and federal, state, and local law enforcement.
The following individuals were charged by way of Criminal Indictment. The individual charges for each defendant are contained in the parenthesis following the personal information.
• Rasheen Jerome Arnold 24, of Edenton, NC (Felon in Possession of Firearm; Possession of Stolen Firearm)
• Alvin Johnson, 41, Pasquotank County, NC, (Possession with the intent to distribute cocaine and cocaine base) (crack)
• Samuel Rawlins, 39, Elizabeth City, NC, (Possession of Firearm by Felon)
• Devon Lee, 36, Perquimans County, NC, (Conspiracy to distribute cocaine and possession with the intent to distribute cocaine)
• Willie Person, 54, Grandy, NC, (Possession with the intent to distribute cocaine and cocaine base) (crack)
• Glenn Mitchell, 49, Edenton, NC, (Possession with the intent to distribute cocaine and heroin)
• Clarence Chestnutt, 40, Hertford, NC, (Possession with the intent to distribute cocaine)
• John James Taylor, 37, Elizabeth City, NC, (Possession with the intent to distribute a quantity of cocaine and heroin; possession of a firearm in furtherance of a drug trafficking crime; possession of a firearm by felon)
• Nathan Lamonte Silver, 44, Elizabeth City, NC, (Hobbs Act robbery)
• Mykel Levant Davis, 37, Elizabeth City, NC, (Possession of firearm by felon)
• Marvin Johnson, 41, Elizabeth City, NC, (Possession with the intent to distribute heroin)
• Ross Domina Spruill, 33, Dare county, NC, (Possession with the intent to distribute cocaine and cocaine base) (crack)
The charges and allegations contained in the Indictments are merely accusations. The defendants are considered innocent unless and until proven guilty in a court of law.
The cases are being investigated by the Federal Bureau of Investigation along the Bureau of Alcohol, Tobacco, Firearms, & Explosives, (ATF), the United States Marshal Service, Internal Revenue Service Criminal Investigations, the North Carolina State Bureau of Investigations, Pasquotank County Sheriff’s Office, Chowan County Sheriff’s Office, Elizabeth City Police Department, Edenton Police Department, Perquimans County Sheriff’s Office, Camden County Sheriff’s Office, Currituck County Sheriff’s Office, Dare County Sheriff’s Office, Tyrell County Sheriff’s Office, Gates County Sheriff’s Office, Manteo Police Department, North Carolina First Judicial District Attorney’s Office, and the United States Probation Office.
Fayetteville Man Sentenced for Felon in Possession ChargeRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, STERLIN KOREN WHITTED, 40, of Fayetteville, North Carolina, was sentenced by Chief United States District Judge James C. Dever, III to 66 months imprisonment followed by 3 years of supervised release.
WHITTED was named in an Indictment on September 12, 2017 charging him with Possession of a Firearm by a Felon. On November 13, 2017, WHITTED pled guilty to the charge.
On April 14, 2017, an officer from the Fayetteville Police Department initiated a traffic stop on a vehicle driven by WHITTED. Upon approach, the officer observed an open container of alcohol in the vehicle. A search conducted of the vehicle resulted in the seizure of a .40 caliber handgun, loaded with 13 rounds of ammunition, and one round of 9mm ammunition.
Further investigation determined the handgun had been reported stolen. WHITTED admitted to owning the gun for a few months.
On September 14, 2017, law enforcement officers were conducting surveillance on WHITTED’s residence in Fayetteville in an attempt to arrest WHITTED for an outstanding felony warrant in the above-referenced incident. Whitted exited the passenger side of a vehicle and approached the residence. He was apprehended shortly thereafter. A search of WHITTED revealed he was wearing a firearm holster. WHITTED then admitted that a handgun was located in the living room of his apartment. A subsequent search of the residence resulted in the seizure of a .40 caliber handgun, loaded with 14 rounds of ammunition; six rounds of 9mm ammunition; a box of .40 caliber ammunition. The investigation determined that the handgun seized fit the holster WHITTED was wearing. Based on the investigation, WHITTED is accountable for the unlawful possession of two firearms, one of which was stolen.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
In support of PSN, the United States Attorney’s Office for the Eastern District of North Carolina has implemented the Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Fayetteville Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney S. Katherine Burnette handled the prosecution of this case for the government.
Fayette County Man Sentenced on Federal Gun ChargeRead the Press Release
BECKLEY, W.Va. – United States Attorney Mike Stuart announced today that Jordan Goard, 27, of Fayette County, was sentenced to 100 months in federal prison for being a felon in possession of a firearm. Goard’s sentence will run concurrently with a state sentence of over 60 years. Stuart commended the investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Marshals Service CUFFED Task Force.
“It’s so unfortunate that as a result of Goard’s criminal actions, he will be spending the majority of his life behind bars,” said United States Attorney Mike Stuart. “But my team is working tirelessly to prevent violence in communities throughout the Southern District by locking up prohibited persons that violate federal gun laws.”
Goard pled guilty in April, admitting that on February 2, 2017, he possessed a .40 caliber pistol in Beckley. Law enforcement agents seized the firearm from him when they apprehended him on another matter.
Assistant United States Attorney John File handled the prosecution. United States District Judge Irene C. Berger imposed the sentence.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Doctor Sentenced to 18 Months in Prison for Participating in $30 Million Scheme to Defraud Medicare and MedicaidRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that physician MUSTAK Y. VAID was sentenced today by U.S. District Judge Lorna G. Schofield to 18 months in prison for his participation in a $30 million scheme to defraud Medicare and the New York State Medicaid Program. VAID falsely posed as the owner of a medical clinic, when that clinic was in fact owned by a corrupt businessman, and falsely claimed that he had examined and treated hundreds of patients whom he had not in fact seen. VAID pled guilty on November 13, 2017, to health care fraud and conspiracy to commit health care fraud, mail fraud, and wire fraud before U.S. Magistrate Judge Henry B. Pitman.
U.S. Attorney Geoffrey S. Berman said: “The Medicare and Medicaid programs are designed to provide essential medical care to the elderly and the needy, not to enrich corrupt doctors and other fraudsters. The real victims of Mustak Vaid and his co-conspirators are U.S. taxpayers and needy patients with legitimate medical needs. Today’s sentence sends a strong message that those who cheat Medicare and Medicaid, including physicians and other health care providers who abuse their positions of trust, will be held accountable and will face serious penalties.”
According to the Indictment and other documents filed in federal court, as well as statements made during VAID’s plea proceeding and sentencing:
Between 2007 and 2013, Aleksandr Burman owned and operated six medical clinics in Brooklyn (the “Clinics”) that fraudulently billed Medicare and Medicaid approximately $30 million for medical services and supplies that were not provided, were provided without regard to medical necessity, or were otherwise fraudulently billed. Under New York State law, medical clinics must be owned and operated by a medical professional. To circumvent this requirement, Burman, who was not a medical professional, hired doctors to pose as the nominal owners of each of the Clinics. VAID was one of those doctors, agreeing to sign a variety of fraudulent documents that falsely represented to banks, Medicare, Medicaid, and others that VAID was the sole owner of Ocean Side Medical of Brooklyn, P.C., one of the six Clinics. VAID and his co-conspirators also helped prepare false medical records to support fraudulent reimbursement claims provided to Medicare and Medicaid. VAID signed medical charts falsely stating that he had examined patients, and wrote prescriptions and referrals for medically unnecessary and/or non-existent tests and supplies.
VAID is the seventh defendant, and the first physician, who has been sentenced after pleading guilty in this case and a related case. The other defendants include:
- Aleksandr Burman, the leader of the scheme, who was sentenced in a related case on May 8, 2017, to 10 years in prison;
- Marina Burman, the former wife of Aleksandr Burman and the owner of a related medical supply company, was sentenced on May 17, 2018, to three years in prison;
- Asher Oleg Kataev, a Burman business partner, was sentenced on May 31, 2018, to three years in prison;
- Alla Tsirlin, a Clinic office manager, was sentenced on June 5, 2018, to a year and a day in prison;
- Edward Miselevich and Ivan Voychak, Burman’s partners who jointly ran a related ambulette company, were sentenced on June 12 and July 19, 2018, respectively, to three years in prison each.
In addition, physician Ewald J. Antoine has pled guilty and is scheduled to be sentenced on August 21, 2018. Three additional defendants – a doctor (Paul J. Mathieu), a physical therapist (Hatem Behiry), and an occupational therapist (Lina Zhitnik) – are scheduled to go to trial before Judge Schofield on November 26, 2018. These three remaining defendants are presumed innocent unless and until proven guilty.
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In addition to the prison term, VAID, 45, of Roundtown, Michigan, was sentenced to three years of supervised release. Judge Schofield also ordered VAID to pay restitution of $2,669,231 and to forfeit $103,843 in ill-gotten gains.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation, the Office of the Inspector General of the U.S. Department of Health and Human Services, and the New York State Office of the Medicaid Inspector General (“OMIG”).
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys David Raymond Lewis and Won S. Shin are in charge of the prosecution.
District Man Pleads Guilty to Charges in Fraud and Theft Schemes Targeting BusinessesRead the Press Release
WASHINGTON – Kevin Cole, 26, of Washington, D.C., has pled guilty to charges stemming from a pair of schemes in which he stole nearly $80,000 in checks intended for local businesses, U.S. Attorney Jessie K. Liu announced today.
Cole pled guilty on July 31, 2018, in the Superior Court of the District of Columbia, to two counts of first-degree theft, including one with an enhancement for violating terms of his pretrial release, and one count each of first-degree fraud and violating the Bail Reform Act. Cole is in custody pending his sentencing on Oct. 19, 2018, by the Honorable Kimberley S. Knowles.
According to a proffer of facts submitted at the plea hearing, from September through December of 2014, Cole targeted a privately owned swimming pool business in a fraud scheme. He stole checks that were being mailed to a mailbox the company kept at a copy and print shop in Northwest Washington. He also created a bank account in a name that mimicked that of the company’s. In total, he stole at least 21 checks from the company, totaling $64,794. In addition, he obtained access to checkbooks belonging to two other people, and attempted to deposit checks into accounts he had created. The pool company discovered the fraud and the Metropolitan Police Department (MPD) began an investigation that led to Cole’s arrest in June 2016.
In 2017, while on pretrial release for the earlier fraud, Cole carried out essentially the same scheme again: this time, he got access to business mailboxes by signing up for an account at a virtual office space in Northwest Washington. Once there, he stole a number of checks from different companies, including a check in the amount of about $15,000 that was paid from a church to a musician for a Christmastime concert and recording. Again, Cole created a fraudulent bank account in the name of the musician’s company and tried to pass the check off as his own; however, the scheme was detected and the church stopped payment on the stolen check.
Cole was once again arrested in May 2017. He failed to appear for a court hearing on July 13, 2018, leading to the Bail Reform Act charge against him.
In announcing the plea, U.S. Attorney Liu commended the work of the detectives who investigated the crimes from the Metropolitan Police Department. She also expressed appreciation for the assistance provided by the U.S. Marshals Service and the Arlington County, Va. Police Department. She acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Stephanie Miller and Michael Christin; former Assistant U.S. Attorney Teresa A. Howie; Paralegal Specialists Aisha Keys and Angelia Slagle; Litigation Technology Specialist Anisha Bhatia, and Intern David Seidman and former Intern Tessa Tilton. Finally, she commended the work of Assistant U.S. Attorneys Michael J. Romano and Jason Feldman, who investigated and prosecuted the case.
Coralville Attorney Pleads Guilty to Mail Fraud and False ClaimsRead the Press Release
DAVENPORT, IA-- On July 30, 2018, Soo Hyun Jung, also known as Jay Jung, age 46, from Coralville, Iowa, pled guilty to two counts of Mail Fraud and one count of False Claims to a Government Agency, announced United States Attorney Marc Krickbaum. Each mail fraud count carries a maximum potential penalty of not more than (20) twenty years’ imprisonment, up to a $250,000 fine, a term of supervised release of not more than (3) three years, and a $100 special assessment to the Crime Victims Fund. The false claims charge carries a potential penalty of up to (5) five years’ imprisonment, up to a $250,000 fine, a term of supervised release of not more than (3) three years, and a $100 special assessment to the Crime Victims Fund. Jung also agreed to forfeit a 2014 BMW M6 Gran Coupe, and pay restitution in the amount of $618,021.51. Sentencing is scheduled for December 12, 2018.
During a time period including 2014-2016, Jung represented clients as an attorney and tax preparer. As part of his plea, Jung admitted that in 2014, he agreed to represent a client to prepare tax returns. Jung filed tax returns and requested refunds. In July 2015, Jung contacted IRS to check on the status of these returns. During this contact, Jung updated the client’s home address on file with the IRS to Jung’s business address in Coralville. As a result, in October 2015, three United States Treasury refund checks totaling $202,179 were received by Jung. Jung forged an endorsement on these checks and, in a series of transfers, caused these funds to be deposited into his personal bank account. Jung used $83,200 of these funds in November 2015 to purchase a 2014 BMW M6 Gran Coupe.
In August 2015, Jung filed additional tax returns without the consent of the client. These additional returns contained information that was not accurate and requested refunds. These returns included a 2013 return submitted to the United States Department of Treasury on August 22, 2015, that falsely claimed a refund of $15,252.
In May 2016, in relation to a different client, Jung caused an investment fund to be cashed out and a $200,000 check mailed to Jung in Coralville, Iowa. Jung later caused these funds to be deposited into his personal bank account.
This case was being prosecuted by the United States Attorney’s Office for the Southern District of Iowa, and the Internal Revenue Service-Criminal Investigation Division.
Columbia Man Pleads to Federal Firearm ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated that Corey F. Kitt, age 38, of Columbia, plead guilty in federal court to knowingly using and carrying a firearm during and in relation to, and possessing a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c). Chief United States District Judge Terry L. Wooten, of Columbia, accepted the guilty plea and will impose a sentence after he has reviewed the presentence report, which will be prepared by the United States Probation Office.
Evidence presented in court established that on December 4, 2017, deputies with the Richland County Sheriff’s Department responded to Old Hopkins Road and Garners Ferry Road in reference to a subject sleeping behind the wheel of a truck while it was running and in drive on the roadway. Deputies found the driver to be Kitt, detected the odor of alcohol, and determined that Kitt, who did not have a driver’s license in his possession, was actually under suspension. Deputies also located a passenger asleep in the truck and upon speaking with her, they learned that there was possibly a shotgun in the back of the truck. Deputies searched the truck and found a loaded Glock handgun and a loaded 12 gauge shotgun. Further investigation revealed Kitt’s DNA on the handgun. Deputies also found methamphetamine and heroin inside the truck. Kitt admitted possession of the handgun and the drug.
Kitt faces a statutory mandatory 5 years imprisonment and a maximum of life, a fine of $250,000, and 5 years of supervised release. Kitt has prior convictions in state court, which prohibit him from possessing firearms and ammunition.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Richland County Sheriff’s Department and was prosecuted as part of Project CeaseFire, a joint federal, state and local initiative focused upon aggressively prosecuting firearm cases in an effort to reduce violent crime and make our neighborhoods safer. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), a crime reduction strategy originally launched in 2001. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority and reinstituted PSN nationwide. Assistant United States Attorney William K. Witherspoon of the Columbia office handled the case.
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Camden Man Sentenced on Gun ChargesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that James Darren Norris, 52, of Camden, Alabama, was sentenced this morning to 37 months’ imprisonment on gun charges. Court documents show that Norris was driving a truck pulling a trailer with no lights and no tag in June of 2017. The officers noticed paraphernalia in the vehicle in plain view associated with drug use. Officers also observed that Norris was wearing a gun holster on his belt, which was empty, and his belt was unbuckled. They conducted a search of his vehicle and found other drug paraphernalia, two grams of methamphetamine and a loaded .45 caliber pistol. Norris admitted that he was a convicted felon. Agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) determined that Norris had a prior felony conviction in federal court in Mobile for being a prohibited person (a drug user) in possession of a firearm.
Norris was indicted in January of 2018 by a federal grand jury in Mobile, charged with felon in possession of a firearm. In March of 2018, ATF agents and agents from the 4th Judicial Circuit Drug Task Force traveled to Norris’ residence in Camden to execute an arrest warrant for the federal indictment. When they arrived, they found drug paraphernalia in plain view in the shop near the house, and shotgun shells around the desk in the shop. They obtained a search warrant to determine whether there was additional drug evidence or a gun in the residence or the shop. They found a 12 gauge shotgun in the house. Norris was advised of his rights, and he admitted that he was a user of methamphetamine and he used it whenever he had it, as often as a couple of times a day. In late March, the grand jury in Mobile returned a superseding indictment charging Norris with being a drug user in possession of the shotgun recovered from his residence in March. In April of 2018, Norris pled guilty to the federal charges of felon in possession of a firearm and drug user in possession of a firearm.
United States District Court Judge Callie V. S. Granade sentenced Norris to 37 months’ imprisonment concurrent on the two counts. The judge also ordered that Norris undergo drug and alcohol treatment and counseling while serving his sentence. The judge further ordered that Norris serve a three-year term of supervised release when he is discharged from his custody sentence, during which he will undergo further drug and alcohol abuse treatment. Norris was ordered to pay $200 in mandatory special assessments, but no fine was imposed.
The case was investigated by the Camden Police Department, 4th Judicial Circuit Drug Task Force, and ATF. It was prosecuted in the United States Attorney’s Office by Assistant United Sates Attorney Gloria Bedwell.
Business Executive Arrested on Foreign Bribery Charges in Connection with Venezuela Bribery SchemeRead the Press Release
A dual U.S.-Venezuelan citizen who controlled multiple companies was arrested yesterday on foreign bribery charges for conspiring to make, and making, corrupt payments to an official of Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA), in exchange for favorable business treatment with PDVSA.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Houston Field Office made the announcement.
Jose Manuel Gonzalez Testino (Gonzalez), 48, was arrested at Miami International Airport, on an arrest warrant based on a criminal complaint filed in the Southern District of Texas that was unsealed yesterday. He made his initial appearance today before U.S. Magistrate Judge Lauren F. Louis of the Southern District of Florida. Gonzalez is charged with conspiring to violate the Foreign Corrupt Practices Act (FCPA) and paying bribes to a foreign official in violation of the FCPA.
According to the criminal complaint, Gonzalez and a co-conspirator paid at least $629,000 in bribes to a former PDVSA official in exchange for the official taking steps to (1) direct PDVSA contracts to Gonzalez’s companies, (2) give Gonzalez’s companies priority over other vendors to receive payments, and (3) award Gonzalez’s companies PDVSA contracts in U.S. dollars instead of Venezuelan bolivars.
The charges contained in the complaint are merely allegations and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
With the arrest of Gonzalez, the Justice Department has announced charges against 17 individuals, 12 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. HSI in Houston is conducting the ongoing investigation with assistance from HSI in Boston and Miami. Trial Attorneys Sarah E. Edwards and Jeremy R. Sanders of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys John P. Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorney Kristine Rollison of the Southern District of Texas is handling the forfeiture aspects of the case. The Criminal Division’s Office of International Affairs also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Bridgeport Heroin Trafficker Sentenced to 10 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TYEVHON KING, also known as “Twin,” 31, of Bridgeport, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 121 months of imprisonment, followed by 10 years of supervised release, for trafficking heroin.
According to court documents and statements made in court, KING was a member of a Bridgeport-based heroin trafficking organization that, between approximately April 2015 and March 2017, received at least 30 kilograms of heroin that had been transported from Mexico, and then distributed the drug in the Bridgeport area. The investigation, which included multiple controlled purchases of heroin from KING, revealed that KING received and distributed at least three kilograms of heroin.
During the investigation, investigators seized vehicles owned by KING that contained “traps,” typically used to conceal narcotics and other contraband.
On March 16, 2017, a grand jury in Hartford returned an indictment charging KING and six other individuals with heroin trafficking and related offenses.
KING has been detained since his arrest on March 24, 2017. On February 13, 2018, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force, DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, and Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorneys Joseph Vizcarrondo and Alina Reynolds.
Boston Gang Member Charged with Federal Firearm OffenseRead the Press Release
BOSTON – A Boston man affiliated with the Vine/Forest Street and Orchard Park gangs was charged today in federal court in Boston with illegally possessing a firearm and ammunition.
Quantae Elmore, 21, was indicted on one count of being a felon in possession of a firearm and ammunition. Elmore was arrested on July 6, 2018, and charged; he has been in custody since his arrest.
According to court documents, around 9:40pm on May 4, 2018, multiple people were shot inside the Mildred C. Hailey Apartments, formerly known as the Bromley Heath Housing Development, in Jamaica Plain. A small white car was seen speeding away. Approximately 20 minutes later, aware of an ongoing feud between the Heath Street gang and the Orchard Park gang, police officers went to the Orchard Gardens Development to investigate possible links between the Jamaica Plain shooting and Orchard Gardens. There, on Ziegler Street, officers encountered Elmore standing outside a white car with other Vine/Forest Street and Orchard Park gang affiliates.
It is alleged that Elmore grew alarmed upon seeing the officers, grabbed the front of his waistband with both hands, and began walking away from the officers. Officers followed Elmore, who ultimately stopped, still grabbing his waistband. Officers saw a bulge at the front of Elmore’s waist, consistent with a firearm, and pat-frisked him. They found inside his waistband a Smith & Wesson .38 caliber handgun loaded with five rounds of .38 caliber ammunition.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, one year of supervised release, and a fine of up to $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; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division; and Boston Police Commissioner William Evans made the announcement today.
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.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Bitcoin Trader Sentenced to 41 MonthsRead the Press Release
PHOENIX – On July 30, 2018, Thomas Mario Costanzo, a.k.a. Morpheus Titania, 54, of Mesa, Ariz., was sentenced by U.S. District Judge G. Murray Snow to 41 months’ imprisonment, with credit for time served since his arrest in April 2017. Costanzo was found guilty by a federal jury on March 28, 2018, of money laundering.
The evidence at trial showed that federal agents initiated an investigation of Costanzo in 2014, after identifying an advertisement he posted on a peer-to-peer bitcoin exchange website. In the advertisement, Costanzo advertised that he was willing to engage in cash transactions up to $50,000. When undercover federal agents approached Costanzo and told him that they were drug dealers, Costanzo provided them with bitcoin and told them it was a great way to limit their exposure to law enforcement. The jury found that over a two-year period, Costanzo took $164,700 in cash-including a final $107,000 transaction in April 2017-from the agents (whom he believed to be heroin and cocaine traffickers) and exchanged it for bitcoin in order to conceal and disguise the nature, location, source, ownership, and control of the drug proceeds. The evidence at trial also showed that Costanzo used bitcoin to purchase drugs from others and that he provided bitcoin to individuals who were buying drugs via the internet.
At the sentencing hearing Judge Snow also ruled on the forfeiture of the 80.94512167 bitcoins provided by Costanzo to the undercover agent as part of the final $107,000 money laundering transaction. The current value of the forfeited bitcoins is more than $600,000. Costanzo had previously claimed an interest in 49.99363132 of the seized bitcoins, and his interest was forfeited at the sentencing hearing. Separately, the government has also reached a resolution with a third party to the forfeiture proceedings who had supplied Costanzo with the remaining bitcoins and who had been under investigation for engaging in an unlicensed bitcoin trading business. In particular, Dr. Peter Steinmetz has agreed to forfeit the remaining 30.95149035 bitcoins, and to also forfeit an additional $54,000 in U.S. currency; the government has agreed not to prosecute Dr. Steinmetz for his prior bitcoin trading activity; and Dr. Steinmetz agrees that going forward, and for the next two years, he will only purchase or sell virtual currency on exchanges registered with the Financial Crimes Enforcement Network, also known as FinCEN.
The investigation in this case was conducted by Internal Revenue Service Criminal Investigation, the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement Homeland Security Investigations, and the Scottsdale Police Department, with assistance from the Maricopa County Sheriff’s Office and the United States Postal Inspection Service, under the Department of Justice’s Organized Crime Drug Enforcement Task Force.
The prosecution was handled by Matthew Binford, Carolina Escalante, and Gary Restaino, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-17-585-PHX-GMS
RELEASE NUMBER: 2018-094_Costanzo
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Beckley Man Sentenced for Passing Counterfeit ChecksRead the Press Release
Defendant had role in counterfeit check cashing scheme
BECKLEY, W.Va. – A Beckley, West Virginia man was sentenced today for his role in a mail theft and counterfeit check cashing scheme, announced United States Attorney Mike Stuart. Shawn Meadows, age 30, was sentenced to eight months of federal incarceration. He was also ordered to pay more than $7106 in restitution to a bank who was the victim of the check cashing scheme. Meadows previously pled guilty on April 11, 2018 to the felony offense of uttering a counterfeit check. United States Attorney Mike Stuart praised the Beckley Police Department and the United States Postal Inspection Service for catching the three defendants while the scheme was ongoing.
“Caught in the act,” said United States Attorney Mike Stuart. “Thanks to the quick work of the Beckley Police Department and the U.S. Postal Inspection Service, this fraudulent scheme was brought to a quick end. It is gratifying to know that as a result of the prosecution, restitution will be paid to the victim bank.”
On November 30, 2015, Meadows, along with co-defendants Savion Thomas and Deandre Smith, participated in a scheme where Meadows was given a counterfeit check by Thomas and Smith, both of Atlanta, Georgia. Smith and Thomas had rented a car in Atlanta, drove to the Beckley area and stolen checks from mailboxes in the Beckley, West Virginia area. The stolen checks were then cleaned in such a way as to remove identifying information, counterfeited, and copied using a computer Smith and Thomas had brought with them. Meadows was recruited to help cash the counterfeit checks at a local bank. The copied counterfeit checks were cashed on the same day at three separate branches of the same bank in Beckley, West Virginia. Two checks were successfully cashed. The Beckley Police Department responded to a tip from bank employees and stopped the three men after the third attempt to cash the checks. All three men gave statements admitting to their role in the mail theft and check cashing scheme.
Deandre Smith was sentenced for his role in the scheme on August 10, 2016, receiving a year of incarceration and a three year term of supervised release. Savion Thomas is scheduled to be sentenced on August 22, 2018.
Assistant United States Attorney Erik S. Goes and former Assistant United States Attorney Eric Bacaj handled the prosecutions. Judge Irene C. Berger presided over the sentencing hearing.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Baytown Man Sentenced in Barge Repair Kick-Back SchemeRead the Press Release
BEAUMONT, Texas – A 43-year-old Baytown, Texas, man has been sentenced to prison for federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Andres “Andy” Degollado pleaded guilty on Apr. 17, 2018 to wire fraud and was sentenced to 15 months in federal prison today by U.S. District Judge Marcia A. Crone. Degollado was also ordered to pay restitution in the amount of $70,000.
According to information presented in court, Degollado served as the Operations Manager for Sienna Shipyards, L.L.C., an inland barge repair facility located on the Sabine River in Orange County, Texas. Degollado was a salaried employee responsible for coordinating the work of employees, contractors, and sub-contractors to perform various aspects of barge repair work. From January to November, 2014, Degollado, while working as Operations Manager for Sienna, devised and carried out a kick-back scheme to defraud his employer by having a contractor bill or invoice Sienna for barge cleaning work when no such work was ever performed. According to company records, Sienna paid fraudulent invoices totaling about $192,250.00 for work that was not performed. As a result, Degollado received kick-backs from the contractor.
This case was investigated by Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Randall L. Fluke and Christopher T. Tortorice.
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Ashtabula man indicted on child pornography chargesRead the Press Release
An Ashtabula man was indicted in federal court on child pornography charges.
Jeffrey A. Stanley, 27, was indicted on one count of receipt of visual depictions of minors engaged in sexually explicit conduct and one count of possession of child pornography.
Stanley knowingly received numerous images of children engaged in sexually explicit conduct. This took place between Sept. 4, 2016 and Feb. 22, 2017, according to the indictment.
Stanley on Feb. 22, 2017, possessed a Motorola cellular telephone that contained child pornography, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Carol M. Skutnik. The case was investigated by Federal Bureau of Investigation and the Ashtabula County Sheriff’s Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
AlphaBay spokesperson sentenced to federal prisonRead the Press Release
ATLANTA - Ronald L. Wheeler III, a/k/a Trappy, has been sentenced for conspiracy to commit access device fraud while working as a public relations specialist for the Dark Web Marketplace AlphaBay.
“By providing access to and promoting AlphaBay, this defendant profited off the ruination of countless individuals,” said U.S. Attorney Byung J. “BJay” Pak. “This case shows, once again, that criminals cannot hide in the shadows of the Dark Web.”
“Wheeler felt like he was shielded from law enforcement by operating on the Dark Web, but he was clearly mistaken,” said Ricardo Grave de Peralta, Acting Special Agent in of FBI Atlanta. “Cyber criminals like him present a critical threat to our community’s, in this case, by encouraging people to purchase illegal drugs and contraband. No matter where crime happens, the FBI will not stop diligently prosecuting anyone who chooses to threaten our citizens.”
“Sites like Alphabay are extremely problematic and the sentence handed down to Wheeler should send a clear message that when criminals participate in these Dark Web sites, you will be caught and face jail time,” said Thomas J. Holloman, Special Agent in Charge of IRS, Criminal Investigation. “We will continue working with our law enforcement partners in dismantling these Dark Web sites.”
According to U.S. Attorney Pak, the charges and other information presented in court: Wheeler conspired with Alexandre Cazes a/k/a Alpha02 a/k/a Admin, and others to commit access device fraud through the operation of The Onion Routing Dark Web marketplace AlphaBay.
AlphaBay was an international criminal marketplace that enabled users to purchase and sell stolen and fraudulently obtained access devices, illegal drugs, firearms, hacking tools, and other illicit goods and services. Sales listings on the website were organized into categories, including “Fraud,” “Drugs & Chemicals,” “Counterfeit Items,” “Weapons,” and “Carded Items.” Shortly before AlphaBay was shut down by law enforcement, the website contained thousands of sales listings for illegal products, including approximately 4,488 sales listings for stolen personally identifying information; 28,800 sales listings for stolen online account information; 6,008 sales listings for stolen credit card information; 3,586 sales listings for computer hacking tools, such as botnets and exploit kits; and 257,533 sales listings for illegal drugs, including cocaine, heroin, and a variety of opioids. The sales of stolen personally identifying information, online account information, and credit card information all provided fertile grounds for access device fraud to flourish on the Dark Web. Aside from product listings, AlphaBay provided message board forums where users could securely discuss their criminal activities and receive support from Wheeler and other AlphaBay staffers.
On or about May 25, 2015, Wheeler began working as a public relations specialist for AlphaBay. Wheeler’s duties included moderating the AlphaBay subreddit on the internet website reddit.com, moderating the AlphaBay message board forums, mediating sales disputes among AlphaBay users, promoting AlphaBay on the internet, and providing non-technical assistance to AlphaBay users. Throughout his participation in the conspiracy, Wheeler advised the public on how to access AlphaBay and encouraged the public to use the website. In return for his work, Wheeler received a salary in Bitcoin. Wheeler’s work with AlphaBay continued until early July 2017, when the FBI and its international law enforcement partners shut down the website.
Ronald L. Wheeler III, a/k/a Trappy, 25, of Streamwood, Illinois was sentenced to three years, 10 months in prison to be followed by three years of supervised release on July 31, 2018. He was also ordered to forfeit approximately $140,000 in cash and Bitcoin. Wheeler was convicted on March 8, 2018, after he pleaded guilty.
This case is being investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney Samir Kaushal 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.
Alachua County Man Sentenced to 360 Months in Prison for Federal Child Pornography and Firearm ChargesRead the Press Release
GAINESVILLE, FLORIDA – Joshua Hansen, 35, of Gainesville, Florida, was sentenced on Monday in the U.S. District Court in Gainesville to 360 months in prison for production of child pornography, 240 months for possession of child pornography, and 120 months for possession of an unregistered silencer. Each count is to be served concurrently. Hansen pleaded guilty on May 18, 2018. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In October 2017, the Bureau of Alcohol, Tobacco, Firearms, and Explosives with the assistance of the Federal Bureau of Investigation executed a search warrant at Hansen’s residence. The search warrant authorized the seizure of firearm sound suppression devices and electronic devices used to publish videos relating to Hansen’s manufacturing and test firing of sound suppression devices. Agents seized an unregistered silencer attached to a .22 caliber rifle. A forensic examination of Hansen’s electronic devices revealed thousands of images and videos of child pornography, including images of infants and toddlers. Agents also recovered pornographic videos created by Hansen involving two minor children. Hansen created the videos over approximately one year, when the victims were between five and eight years of age.
U.S. Attorney Canova said, “The cooperative efforts of our law enforcement partners exposed an armed predator and helped protect other children from abuse. The sentence imposed on Hansen sends a strong message that those who take advantage of our innocent children will pay a steep price.”
“We will continue to adapt to and embrace the changes and challenges in the use technology when fighting violent crime,” said Special Agent in Charge Daryl McCrary. “Together with our law enforcement partners, we identified and saved the victims in this case”
“The FBI Jacksonville Division is always focused on building better relationships with our law enforcement partners, but we are just as committed to developing stronger relationships with members of this community,” Special Agent in Charge Charles P. Spencer. “This case confirms the value of that commitment, and the important role of community members in ensuring safety and security for all of our neighbors.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, and the North Florida Internet Crimes Against Children Taskforce. The case was prosecuted by Assistant United States Attorney Jason S. Beaton.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Airline employee and his wife charged with running an illegal cash smuggling businessRead the Press Release
ATLANTA – Bubacarr Drammeh, a DAL Global Services, LLC employee, and his wife Matako Drammeh, have been charged with smuggling hundreds of thousands of dollars in cash through Hartsfield-Jackson Atlanta International Airport, and transporting that money to California. Bubacarr Drammeh has also been charged with bribing airport employees to get the cash through security.
“Airports are a critical component of our nation’s transportation infrastructure,” said U.S. Attorney Byung J. “BJay” Pak. “The alleged actions of the Drammehs put all passengers at risk. We are committed to protecting the integrity of Hartsfield-Jackson Atlanta International Airport, the world’s busiest airport, from this kind of activity.”
“The Drammehs are charged with allegedly breaching airport security at the busiest airport in the world,” said Ricardo Grave de Peralta, Acting Special Agent in Charge of FBI Atlanta. “The FBI takes airline safety and security very seriously. We want to thank our various law enforcement partners at Hartsfield-Jackson Atlanta International Airport, along with Delta Air Lines whose cooperation provided us with information needed to investigate this case.”
“While halting bulk cash smuggling is an important Homeland Security Investigations (HSI) priority, eliminating a potential vulnerability in airport security may serve a larger contribution to national security and protection of critical infrastructure,” said Homeland Security Investigations Atlanta Special Agent in Charge Nick S. Annan. “This case illustrates HSI’s ongoing commitment to working with our federal, state and local partners to protect public safety. Further, HSI is working with relevant airlines to identify and close potential vulnerabilities, which will ensure other criminal networks are not able to engage in similar activity.”
According to U.S. Attorney Pak, the charges, and other information presented in court: From approximately November 2016 to September 2, 2017, the Drammehs exploited Bubacarr Drammeh’s status as an airline employee to evade airport security screenings in an effort to smuggle hundreds of thousands of dollars in cash through airport security checkpoints. Once through security, Bubacarr Drammeh allegedly transported the unscreened bulk cash on passenger flights to California. Matako Drammeh also took similar trips to California with cash that her husband delivered to her in the airport after he smuggled the cash through security undetected. Together, the Drammehs allegedly took over 50 trips.
In addition to abusing his airline employee status, the indictment also alleges that Bubacarr Drammeh bribed or attempted to bribe airport employees with money to smuggle bulk cash through security. On September 2, 2017, Bubacarr Drammeh attempted to bring a bag filled with over $140,000 in cash through an employee security checkpoint. When a screener at the checkpoint found stacks of money in his bag, Bubacarr Drammeh allegedly offered the screener $8,000 in cash in exchange for not reporting the money to the authorities. Airport security refused and properly contacted law enforcement officers.
On July 24, 2018, a federal grand jury returned an indictment against Bubacarr Drammeh, a/k/a John Dimites, a/k/a BoBo, 42, and Matako Drammeh, 38, both of Riverdale, Georgia, charging them with conspiring to operate an unlicensed money transmitting business and entering an aircraft and airport area in violation of security requirements. A federal grand jury also charged Bubacarr Drammeh with bribery.
Members of the public are reminded that the Indictment contains only charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and the U.S. Immigration and Customs Enforcement - Homeland Security Investigations Division, with assistance from the Atlanta Police Department.
Assistant U.S. Attorney Ryan M. Christian is prosecuting 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.
Tuesday 31 July 2018
Wood County man admits to connection to a drug distribution operation in Wetzel and Tyler CountiesRead the Press Release
WHEELING, WEST VIRGINIA – Timothy Lohri, of Williamstown, West Virginia, has admitted to his involvement in methamphetamine, cocaine, and heroin distribution that spanned multiple states, United States Attorney Bill Powell announced.
Lohri, age 36, pled guilty to one count of “Conspiracy to Distribute and to Possess with the Intent to Distribute Controlled Substances.” Lohri admitted to his involvement in a conspiracy that consisted of trafficking crystal methamphetamine, also known as “ice,” heroin, and cocaine brought to West Virginia from Columbus, Ohio, and obtained from as far away as Atlanta, Georgia.
Lohri faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Robert H. McWilliams, Jr., and Shawn M. Adkins are prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol; Tobacco, Firearms, and Explosives; the Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Tyler County Sheriff’s Office; the Wetzel County Sheriff’s Office; the Sistersville Police Department; the Paden City Police Department; and the New Martinsville Police Department investigated. The Columbus, Ohio, Police Department Gang Crimes Unit assisted in the case.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge James E. Seibert presided.
Woman Sentenced to 51 Months in PrisonRead the Press Release
FORT WAYNE – Erin Clowser, 35 years old, of Fort Wayne, Indiana, was sentenced by U.S. District Court Chief Judge Theresa L. Springmann after pleading guilty to Theft of Mail, Access Devise Fraud and Aggravated Identity Theft, announced U.S. Attorney Kirsch.
Clowser was sentenced to a term of imprisonment of 51 months followed by 1 year of supervised release and ordered to pay restitution to the victims of her crime in the total amount of $53,005.82. As part of her sentence, Clowser agreed to forfeit to the United States items obtained from her illegal conduct, which included a 2002 Mercedes Benz S500, assorted electronic and computer equipment and purses.
According to documents filed in the case, from November 2016 and continuing through June 2017, Clowser stole mail from various residential mailboxes in the Fort Wayne area. She also used personal information of an individual without their authorization to obtain a debit card which she then used to make purchases at retail establishments and make withdraws from automatic teller machines.
This case was a joint investigation by the United States Postal Inspection Services and the Federal Bureau of Investigation with the assistance of the Allen County Police Department and was prosecuted by Assistant United States Attorney Stacey R. Speith.
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Winchester man Sentenced to 110 Months for Possession of Stolen FirearmsRead the Press Release
LEXINGTON, Ky. — Brandon D. Martin, 29, of Winchester, has been sentenced to 110 months in federal prison, by Senior United States District Joseph M. Hood, for possessing stolen firearms.
Martin previously admitted that in June 2017, he had possessed five stolen firearms. Martin admitted that he knew the firearms had been stolen when he pawned them at several pawn shops in the Winchester area. Law enforcement agents in Clark and Woodford counties confirmed that these firearms had been stolen from burglaries of residences in Clark and Woodford Counties. Martin faces state charges in some of these counties for the burglaries. Martin has previously been convicted of three prior felony offenses.
Martin pleaded guilty to the federal charge in March 2018.
Under federal law, Martin must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky;; Stuart Lowery, Special Agent in Charge, ATF; Burl Perdue, Jr., Clark County Sheriff, and James Fugate, Chief of the Versailles Police Department, jointly made the announcement.
The investigation was conducted by the ATF, Clark County Sheriff’s Office, and the Versailles Police Department. The United States was represented by Assistant United States Attorney Roger W. West.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Wilmerding Fentanyl Trafficker Pleads Guilty to Possessing Large Amounts of New York City Sourced OpioidRead the Press Release
PITTSBURGH, Pa. – A former resident of Wilmerding, Pennsylvania, pleaded guilty in federal court on one count of possession with intent to distribute more than 40 grams of fentanyl, United States Attorney Scott W. Brady announced today
Rondell Lawrence, age 29, pleaded guilty before United States District Judge David Cercone.
In connection with the guilty plea, the court was advised that on July 10, 2017, Rondell Lawrence drove his brother and co-defendant, Ronnell Lawrence, to the Greyhound Bus Station in downtown Pittsburgh. Ronnell Lawrence then boarded a bus bound for New York City. Ronnell Lawrence returned to Pittsburgh after spending only one hour in New York City. On July 11, 2017, Rondell Lawrence returned to the Greyhound Bus Station to pick up his brother. Investigators observed Ronnell putting a large camouflage backpack into the back of the Nissan Pathfinder. Investigators later stopped the Nissan Pathfinder for having an expired registration. A subsequent search of the vehicle and the camouflage bag placed there by Ronnell revealed eight large bundles of suspected heroin and fentanyl and a bus ticket to New York City. The Drug Enforcement Agency Laboratory later tested the substances seized from the bag and revealed that the substances were approximately 390 grams of a heroin/fentanyl mixture.
Judge Cercone scheduled sentencing for December 6, 2018. The law provides for a maximum total sentence of not less than five years in prison and up to 40 years in prison, a fine of up to $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Rondell Lawrence has been detained in federal custody and will remain detained pending sentencing. The case against Ronnell Lawrence is pending.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Allegheny County District Attorney’s Narcotics Enforcement Team (DANET), Pittsburgh Bureau of Police, and North Versailles Police Department conducted the investigation leading to the indictment in this case.
Watertown Man Pleads Guilty to Role in Interstate Prostitution RingRead the Press Release
BOSTON – A Watertown man pleaded guilty today in federal court in Boston in connection with his role in a long-running interstate prostitution ring.
Jineok Kim, 38, of Watertown, Mass., pleaded guilty to one count of conspiracy to persuade, induce, entice, or coerce individuals to travel in interstate commerce to engage in prostitution and one count of conspiracy to engage in money laundering. Co-defendant Susan Bashir, a/k/a “Susan Redmon,” 41 of Stone Mountain, Ga. pleaded guilty on July 25, 2018 and is scheduled to be sentenced on Nov. 8, 2018. Co-defendant Kyung Song, 52, of Lexington, Mass. is scheduled to plead guilty on Aug. 13, 2018. Co-defendants Yoon I. Kim, 36, of Haymarket, Va. and Taehee Kim, a/k/a “Hyunsook Kim,” 46, of Haymarket, Va., have pleaded not guilty.
According to court documents, Kim participated in the prostitution network, which had multiple brothels in high-end apartments in Cambridge, Mass.; Atlanta, Ga.; and eastern Virginia, from spring 2016 to December 2017. The prostitution network advertised appointments with Asian women primarily on three websites: www.bostonasiandolls.com, www.exoticasiansatlanta.com, and www.redhotflowers69.com. The women advertised on the websites were moved from city to city within the network, working as prostitutes for the organization.
Jineok Kim transported women working as prostitutes and supplies, including bulk orders of condoms, to and from brothel locations in Cambridge. Jineok Kim retrieved cash proceeds from each of the Cambridge brothel locations and laundered the proceeds according to Taehee Kim’s instructions, which included depositing the money into accounts belonging to Taehee Kim and a consulting business set up by Yoon Kim, or purchasing postal money orders.
The charge of conspiracy to persuade, induce, entice, or coerce women to travel in interstate commerce to engage in prostitution provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain/loss, whichever is greater. The charge of conspiracy to engage in money laundering provides for 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 laundered funds. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Andrew E. Lelling; Peter C. Fitzhugh Special Agent in Charge of Homeland Security Investigations in Boston; Delany De Leon-Colon, Acting Inspector in Charge of the U.S. Postal Inspection Service; and Cambridge Police Commissioner Branville G. Bard Jr. made the announcement today. Assistant U.S. Attorneys David J. D’Addio and Amy Harman Burkart of Lelling’s Civil Rights Enforcement Team are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Waterbury Tax Preparer Sentenced to 20 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL D. MIR, 41, of Waterbury, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 20 months of imprisonment, followed by one year of supervised release, for preparing false tax returns and underpaying his own federal taxes.
According to court documents and statements made in court, MIR prepared more than 3300 federal tax returns for the 2012 through 2015 tax years through a tax return preparation practice he operated in Waterbury. MIR falsified information on numerous returns that he prepared for clients by fabricating business expenses, or by inflating deductible medical and dental expenses. For the 2012 through 2014 tax years, MIR deposited more than $400,000 in income generated by his tax preparation business into his personal bank account. However, MIR did not report any income from his tax preparation business on his 2013 personal income tax return, and he reported only $18,500 in income from his tax preparation business on his 2014 return. MIR did not file a personal income tax return for 2015.
Through MIR’s preparation of false tax returns, and the underpayment of his own taxes, the government lost a total of $406,679.
On March 6, 2018, MIR pleaded guilty to one count of aiding and assisting the filing of a false tax return.
Judge Shea ordered MIR to make full restitution to the government. The IRS is taking action to recover unpaid taxes from MIR’s clients, and MIR’s restitution figure will be reduced as money is recovered from his clients.
Judge Shea also ordered MIR to perform 75 hours of community service during his term of supervised release.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, with the assistance of the Connecticut Department of Revenue Services. The case was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Warwick Man Sentenced to Federal Prison for Sex Trafficking a MinorRead the Press Release
PROVIDENCE, RI – A Warwick man was sentenced today to 84 months in federal prison for trafficking a 16-year-old female in Rhode Island and Massachusetts for the purpose of prostitution.
Michael Sabatino, 26, and two other men, Paris Peters, 26, and Marcus Jamal Gibbs, 30, of Providence, previously admitted to the Court that from approximately August 20, 2015, to September 27, 2015, they recruited, enticed, transported, harbored and advertised a minor victim for the purpose of prostitution.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Sabatino to serve 5 years supervised release upon completion of his term of incarceration. Sabatino pleaded guilty on September 30, 2016, to conspiracy to sex traffic a child and sex trafficking a child.
Paris Peters was sentenced by Chief Judge William E. Smith on April 20, 2018, to 96 months incarceration to be followed by 5 years supervised release. Gibbs is scheduled to be sentenced on September 21, 2018.
The U.S. Sentencing Guidelines range of imprisonment in the matter of Michael Sabatino is 108-121 months. The government recommended the court impose a sentence of 97 months in prison.
Sabatino’s sentence is announced by United States Attorney Stephen G. Dambruch, Pawtucket Police Chief Tina Goncalves, and Homeland Security Investigations (HSI) Special Agent in Charge Peter C. Fitzhugh.
According to information presented to the court, an investigation by Pawtucket Police detectives and HSI agents determined that on August 20, 2015, Sabatino posted photographs of the victim, a 16-year-old female, in various stages of undress on Backpage.com, offering her for prostitution. The pictures were taken by Paris Peters. The advertisement claimed the person in the photographs was 20-years-old. The defendants knew the victim was only 16-years-old.
Over the next several weeks, as numerous individuals responded to the Backpage.com advertisement, the victim was driven by Sabatino, Peters and Gibbs to various hotels and private residences in Rhode Island and Massachusetts to engage in commercial sexual activity.
On September 28, 2015, HSI agents were notified by Pawtucket Police of the report of a missing and endangered 16-year-old female who was being prostituted throughout Rhode Island and in Massachusetts. The teenager was located later in the day at a family member’s home. She admitted to being sex trafficked.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
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Warrensburg Man Sentenced to 20 Years for Producing Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Warrensburg, Mo., man was sentenced in federal court today for using a 13-year-old victim to produce child pornography.
Thomas Johnson, 25, of Warrensburg, was sentenced by U.S. District Judge Gary A. Fenner to 20 years in federal prison without parole. The court also sentenced Johnson to serve the rest of his life on supervised release following incarceration.
On Jan. 17, 2018, Johnson pleaded guilty to producing child pornography.
Law enforcement officers executed a search warrant at Johnson’s residence on Sept. 25, 2015. Officers found several explicit photos of minor females, including the 13-year-old victim, on Johnson’s cell phone. Officers also seized computers and other electronic media from his residence. On a later date, a laptop computer that Johnson had submitted to a local computer shop for repair was also seized and submitted for forensic examination.
During the forensic examination of Johnson’s electronic media, child pornography was located. Examiners found videos from Skype communications with the child victim. Johnson admitted that he communicated via Skype with the child victim and saved videos from those sessions, which contained sexually explicit content. Johnson also admitted that he had engaged in illicit sexual activity with the child victim on several occasions.
According to court documents, the investigation began in the Eastern District of Virginia when law enforcement agents were monitoring a child pornography Web site where Johnson had an account. Johnson was identified when he logged onto the Web site and accessed images of child pornography.
This case was prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI and the Olathe, Kan., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Upshur County and Barbour County women sentenced for their roles in a stolen firearms and methamphetamine operationRead the Press Release
ELKINS, WEST VIRGINIA – Lisa Kay Knight, of Buckhannon, West Virginia, and Carla Denise Jones, of Volga, West Virginia, were sentenced today for their roles in a stolen firearms and meth distribution operation, United States Attorney Bill Powell announced.
Knight, age 25, was sentenced today to 15 months incarceration. Knight pled guilty to one count of “Conspiracy to Possess Stolen Firearms” in December 2017. Knight admitted to conspiring with others to steal, possess, barter and sell firearms for money and methamphetamines in Upshur County and elsewhere from October 2016 to September 2017.
Jones, age 56, was sentenced to three years probation. Jones pled guilty to one count of “Unlawful Possession of Firearm” in March 2018. Jones, being a person prohibited from possessing a firearm, admitted to possessing two pistols, two rifles, and a shotgun in Barbour County in February 2017.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.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. District Judge John Preston Bailey presided.
Two Individuals Sentenced to Prison and Ordered to Pay More Than $570,000 in Restitution for Stealing a Gold BarRead the Press Release
Richard Steven Johnson, 41, of Rio Linda, California, and Jarred Alexander Goldman, 32, of Palm Beach Gardens, were sentenced yesterday, after being convicted of conspiring to steal and stealing a 17th century gold bar on or about August 18, 2010, from the Mel Fisher Maritime Heritage Museum in Key West.
Benjamin G. Greenberg, United States Attorney, Southern District of Florida, Robert F. Lasky, Federal Bureau of Investigation (FBI), Miami Field Office, and Donald J. Lee, Jr., Chief, Key West Police Department, made the announcement.
Johnson pled guilty to his role in the offense and was sentenced to 63 months in prison. Goldman was convicted at trial and was sentenced to 40 months in prison. In addition, United States District Judge Jose E. Martinez ordered Johnson and Goldman to pay $570,195.43 in restitution to the Mel Fisher Maritime Heritage Museum.
The facts proven at Goldman’s trial and at the defendants’ sentencing hearings established that both men drove to Key West from West Palm Beach on August 18, 2010, and entered the Mel Fisher Maritime Heritage Museum. Goldman then stood guard as a lookout to enable Johnson to steal the gold bar. Johnson then removed the gold bar from its display case at the museum and both defendants then drove back to West Palm Beach. Johnson then cut up the gold bar and sold it off, piece-by-piece. Law enforcement was only able to recover a single remaining piece, comprising approximately 3% of the total gold bar.
Mr. Greenberg commended the investigative efforts of the FBI and the Key West Police Department. The case was prosecuted by Assistant U.S. Attorneys Daniel J. Marcet and Monique Botero.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Twelve Charged in Moving Company ScamsRead the Press Release
CINCINNATI – A federal grand jury has charged 12 individuals with conspiring in a racketeering enterprise to defraud individuals through their moving companies located throughout the United States, including in Florida, Ohio, Maryland, North Carolina, Illinois, Texas, California, Connecticut, Colorado and Missouri. More than 900 customers have been identified as victims of the scheme thus far.
Five defendants were arrested today. The indictment was returned July 25 and unsealed today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Thomas J. Ullom, Regional Special Agent-in-Charge, Office of Inspector General, U.S. Department of Transportation (USDOT) and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges.
According to the indictment, the defendants operated and worked through a number of affiliated moving companies, which include:
First National Moving and Storage
Public Moving and Storage
Flagship Van Lines
Public Moving Services
Independent Van Lines
Smart Relocation Solutions
JBR Underground
Trident Auto Shipping
National Relocation Van Lines
Unified Van Lines
National Relocation Solutions
United National Moving and Storage
Presidential Moving Services
US Relocation Systems
The co-conspirators owned, operated and worked as employees, members and associates of the affiliated moving companies. The moving companies were operated principally out of a business address in Hollywood, Fla. and had a warehouse in West Chester, Ohio.
It is alleged that the defendants executed a scheme between April 2013 through July 2018 to enrich themselves by stealing from customers who hired their moving companies to move their household goods.
To execute the alleged scheme, the defendants allegedly lied to customers about how long their moving companies had been in business, claiming many years of experience for companies that had been created just a few months prior. The defendants also allegedly created fake online reviews, praising the work of their moving companies.
When potential customers contacted the defendants, the defendants would allegedly provide customers with low binding estimates to do their move, promising to beat their competitor’s prices. After the customers agreed to hire the moving companies, employees of the moving companies would allegedly load the customers’ goods onto the truck and then bump the price of the move. Under federal regulations, in a binding estimate a customer and the motor carrier must both agree in writing to a charge for services prior to the start of any work. When an estimate is binding, USDOT prevents interstate carriers from raising the price of the move after loading customers’ items.
The defendants and the moving companies would allegedly refuse to give back the household goods until customers paid the inflated prices. If customers did not pay the inflated prices on the moves, it is alleged, the defendants would, in some cases, steal the customers’ household goods, never delivering them.
For example, in July 2016, First National Moving and Storage loaded a customer’s goods to transport from Round Rock, Texas to Columbus, Ohio. After loading the goods, the company increased the cost of the move and told the customer that she had to agree to the higher price or the customer’s goods would not be returned to her. The customer called the company to complain, and, during one phone call, the customer was told by the company that her items would be auctioned if she did not pay the higher price.
After customers complained to federal regulators and others, it is alleged that the defendants would shut down the latest iteration of the moving company, and open a new moving company. In doing so, the defendants allegedly lied to federal regulators and hid the identities of the true owners in order to receive licenses to operate. The defendants and other employees of the moving companies also used aliases with customers and regulators.
The defendants are charged with conspiring to conduct the affairs of the moving companies through a pattern of racketeering activity, consisting of multiple acts of wire fraud, theft of an interstate shipment by carrier, Hobbs Act extortion and identification fraud.
Those arrested today include:
Name
Also Known As
Age
Residence
Andrey Shuklin
31
Miami, Fla.
Phyllis Ricci Quincoces
Faith Ashford, Grace Rubestello, Phyllis Ricci, Phyllis Ann
51
Hollywood, Fla.
Vladimir Pestereanu
Vova
28
Sunny Isles Beach, Fla.
Roman Iakovlev
31
Charlotte, N.C.
Jessica Martin
Emma Ricci, Mary Austin
28
Tamarac, Fla.
“The arrests and actions taken today stemming from a criminal investigation conducted by the U.S. Department of Transportation Office of Inspector General (DOT-OIG) demonstrate our commitment to detecting and prosecuting fraudulent household goods movers who take advantage of unsuspecting customers by holding their personal belongings hostage for ransom,” said Thomas J. Ullom, DOT-OIG Regional Special Agent-in-Charge. “Working with our law enforcement and prosecutorial partners, as well as Federal Motor Carrier Safety Administration officials, we will continue our vigorous efforts to ensure that commercial household goods movers adhere to Federal laws and regulations designed to protect the public.”
U.S. Attorney Glassman commended the investigation of this case by the USDOT and the assistance of the FBI, as well as Assistant United States Attorneys Megan Gaffney and Matthew Singer, who are prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
If you believe you are a victim of this fraudulent activity, please call the Victim Hotline at 1-800-424-9071 or email [email protected].
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Three Sentenced for Their Role in $4.6 Million Bank Fraud SchemeRead the Press Release
DALLAS — Stephanie Contreraz, 27, Abraham Valdez, 53, both of Frisco, Texas, were sentenced last week before U.S. District Judge David C. Godbey,—to 46 months and 60 months, respectively, in federal prison. Co-defendant Elizabeth Flint, 27, of San Antonio, Texas, was sentenced yesterday before U.S. District Judge David C. Godbey to 40 months in federal prison; based on their respective roles in a conspiracy to commit bank fraud, announced Erin Nealy Cox, U. S. Attorney of the Northern District of Texas.
Co-defendants, Eddie Contreraz, of Frisco, Texas, Ima Isham, of The Colony, Texas and Brice Armijo, of The Colony, Texas are scheduled for sentencing later this year. The seventh defendant, Kwanghee Anh, remains a fugitive with an outstanding arrest warrant.
According to the several factual resumes filed in the case, from January 2014 through March 2016, Eddie Contreraz hired co-defendants S. Contreraz, Valdez, Isham, Armijo, Flint and Anh to work at Preferred Marketing Group, Inc. (PMG), also known as PMG Business Solutions. PMG employees assisted clients with credit repair and obtained funding from lenders in the form of loans, lines of credit, and credit cards. The majority of PMG’s clients were unable to obtain funding on their own due to insufficient income and/or employment; as well as the client’s inability to provide certain documents required by lenders.
In order to conceal these loan disqualifiers and fraudulently obtain funding, S. Contreraz, Valdez and Flint conspired with all the co-defendants charged in the indictment. According to the documents filed in the case, the seven co-defendants engaged in a wide range of fraudulent conduct when submitting loan applications. The co-defendants coached borrower clients to use false and inflated income and false employment information; personally escorted borrowers to several banks on the same day on so-called “bank tours”; and submitted fraudulent documents (false IRS Form W-2’s and false pay stubs) as part of loan packages presented to the victim banks.
At various times during the period from at least January 2014 through March 2016, all seven co-defendants victimized many banks through the submission of hundreds of fraudulent loan applications. To date, the victim banks suffered losses of at least $4.6 million. At the sentencing of Valdez and S. Contreraz, Judge Godbey ordered the payment of restitution in the amount of $4,659,693 and $2,210,446 respectively. At the sentencing of co-defendant Flint yesterday, Judge Godbey ordered her to pay $652,505 in restitution.
The Federal Bureau of Investigation investigated the case and Assistant U.S. Attorney David Jarvis prosecuted.
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