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12 September 2018
Former Raleigh Resident Sentenced to Eight Years for Conspiracy and Aggravated Identity Theft in Connection with Credit Card and Auto Loan Fraud SchemesRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces that in Federal court in Greenville, Senior United States District Judge Malcolm J. Howard sentenced DEBORAH ROSE MCFADDEN, formerly of Raleigh, North Carolina, to 96 months imprisonment for her role in a complex fraud scheme to steal, exploit, and profit from the personal and financial information of victims in North Carolina and other states. The Court ordered the term of imprisonment to be followed by 5 years of supervised release. Among other terms of the judgment, MCFADDEN was also ordered to pay restitution to over a dozen financial institutions that suffered losses as a result of the scheme.
MCFADDEN was named in a 13-count Indictment filed in the United States District Court for the Eastern District of North Carolina on June 17, 2017. On February 5, 2018, MCFADDEN pled guilty to the charged offenses of conspiracy to commit wire fraud and bank fraud, conspiracy to commit money laundering, and aggravated identity theft.
Laila Merchant and Malayna McFadden (MCFADDEN’s daughter), were two of MCFADDEN’s principal co-conspirators. Malayna McFadden pleaded guilty to a Criminal Information on July 14, 2017. On March 7, 2018, United States District Judge Malcolm J. Howard sentenced Malayna McFadden to 6 months imprisonment, among other terms of the judgment. Laila Merchant pleaded guilty to a Criminal Information on April 17, 2018. On May 3, 2018, United States District Judge Malcolm J. Howard sentenced Merchant to 42 months imprisonment, among other terms of the judgment.
According to the charging instruments, statements made in court, and other public information, between at least May 2013 and September 2014, MCFADDEN, Malayna McFadden, and Laila Merchant engaged in a complex, multistate scheme to commit credit card fraud and loan fraud through the use of stolen victim identifiers, including dates of birth and Social Security numbers.
As part of the credit card fraud scheme, the stolen identifiers were used to form sham companies and apply for merchant accounts with various credit card processors. Upon establishment of the merchant accounts, MCFADDEN and her co-conspirators unlawfully obtained credit card numbers of other victims and ran the stolen numbers through the electronic point-of-sale systems issued to the sham companies. The fraud proceeds were then laundered through dozens of bank accounts maintained and/or controlled by MCFADDEN.
As part of the bank fraud scheme, MCFADDEN and her co-conspirators submitted fraudulent auto loan applications to multiple financial institutions using stolen victim identifiers. False and fraudulent documentation was used to deceive the targeted financial institutions and trigger the release of funds, including stolen VIN numbers, phony title documents and sales contracts from sham car dealerships, and counterfeit identification with victim identifiers.
Investigation of this case was conducted by the Department of Homeland Security – Homeland Security Investigations and the Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Adam F. Hulbig prosecuted the case for the government.
Former North Carolina resident indicted for international parental kidnappingRead the Press Release
A former North Carolina resident was indicted on three counts of international parental kidnapping.
Saed Hamed, 42, formerly of Fayetteville. N.C., has retained three children in the State of Palestine with the intent of obstructing the parental rights of his wife, the mother of the children, according to the indictment.
Saed and Sabah Hamed, of Uniontown, separated in 2012. The Hameds agreed Saed Hamed would have the children in the State of Palestine during the summer of 2016 but the children would be returned to the U.S. in September 2016; however, Saed Hamed refused to return the children to their mother and the children remain in the State of Palestine, according to court documents.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than maximum.
This cases is being prosecuted by Assistant U.S. Attorney Henry F. DeBaggis following an investigation by the FBI.
An indictment is only a charge. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Church Treasurer Pleads Guilty to Defrauding Church of Nearly a Half-Million DollarsRead the Press Release
A man who used church funds for his own personal expenses over a thirteen year period pled guilty today in federal court in Sioux City.
Andrew Matheason, age 65, from Graettinger, Iowa, was convicted of one count of wire fraud.
In a plea agreement, Matheason admitted that he served as the treasurer at Bethel Lutheran Church in Graettinger from 2003 through 2017, and that he stole at least $479,297.68 from the church during that time period. In the plea agreement, Matheason admitted that he wrote checks to himself and established a fictitious company and wrote checks from the church’s bank account made payable to that fake company. He also set up electronic transfers of funds from the church’s accounts to pay his personal credit card balances. To avoid detection, Matheason created false financial reports and presented those false reports to church leaders.
Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Matheason remains free on conditions of release pending sentencing. Matheason faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Justin Lightfoot and was investigated by Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-3036.
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Former Charity Executive Pleads Guilty to Misprision of a Felony in Connection with Concealment of a Multi-Million-Dollar Embezzlement SchemeRead the Press Release
SPRINGFIELD, Mo. – A former executive of a Springfield, Mo., charity pleaded guilty in federal court yesterday to misprision of a felony in connection with the concealment of a multi-million-dollar scheme by which other charity executives embezzled and diverted millions of dollars from the Springfield nonprofit corporation.
Keith Fraser Noble, 68, of Rogersville, Mo., pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of concealment of a known felony. Noble was an executive at Preferred Family Healthcare Inc. (formerly known as Alternative Opportunities Inc.), a nonprofit corporation headquartered in Springfield, and oversaw the charity’s clinical operations, quality control matters, and clinical and medical grant proposals. Noble also was a licensed psychologist and certified substance abuse counselor.
By pleading guilty yesterday, Noble admitted he knew three other Preferred Family Healthcare executives conspired and agreed with one another to embezzle, steal, and misapply millions of dollars in charity funds. Noble admitted he knew about the others’ thefts and willfully blinded himself to the details of their schemes while reaping the benefits. Further, Noble admitted that despite his duty to do so, he did not inform the charity’s board of directors of the embezzlement, nor did he report the crimes to law enforcement. Finally, Noble acknowledged he aided the conspirators in concealing their crimes by preparing and causing to be submitted to the U.S. Department of Health and Human Services grant applications that falsely certified the charity’s compliance with federal restrictions on lobbying.
The information alleges the conspirators embezzled, stole, and misapplied funds totaling more than $30 million. Noble acknowledged his share of that came to $4,323,107.30, which he agreed to pay in restitution, less the amount of taxes paid on the income.
Under federal statutes, Noble is subject to a sentence of up to three years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The case was investigated by IRS-Criminal Investigation, the FBI and the Offices of the Inspectors General from the Departments of Labor, Health and Human Services, Justice, and Veterans Affairs. This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich of the Western District of Missouri.
Florida Man Admits to Trafficking Kilos of Cocaine Shipped to Rhode Island from Puerto RicoRead the Press Release
PROVIDENCE – One of two Florida men charged in U.S. District Court in Providence in August 2017 with trafficking more than 5 kilograms of cocaine into Rhode Island through the U.S. Postal Service pleaded guilty today.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Rinaxo Rufino, 34, of Miramar, FL, admitted that he conspired with Gabriel Concepcion, 28, of Kissimmee, FL, to receive at least three multi-kilogram shipments of cocaine shipped through the U.S. Postal Service from Puerto Rico to residences in Central Falls and Cumberland. Each shipment contained approximately three kilograms of cocaine. The packages were intercepted and seized by U.S. Postal Inspectors prior to their delivery to the intended recipients.
Rufino admitted that he and Concepcion intended to provide the kilograms of cocaine to others.
Rufino pleaded guilty to conspiracy to possess 5 kilograms of cocaine, announced United States Attorney Stephen G. Dambruch, Raymond D. Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, and Ann C. Assumpico, Superintendent of the Rhode Island State Police. He is scheduled to be sentenced on December 12, 2018.
Concepcion is awaiting trial on an indictment charging him with conspiracy to possess more than five kilograms of cocaine and possession of a firearm in furtherance of a drug trafficking crime.
According to information presented to the court, U.S. Postal Inspectors and Rhode Island State Police High Intensity Drug Trafficking Area Task Force agents arrested Rufino on August 26, 2017, when he attempted to retrieve a package containing 3,029 grams of cocaine addressed to a Central Falls residence. US Postal Inspectors identified cocaine in the package prior to delivery and removed the controlled substance. In its place inspectors placed similarly weighted non-contraband material.
It is alleged that the parcel was one of three U.S. Mail parcels Rufino and Concepcion intended to acquire. The others, one addressed for delivery to a residence in Cumberland that contained approximately 3007.2 grams of cocaine was seized by Postal Inspectors on August 25, 2017, and a second addressed for delivery to a Central Falls residence contained approximately 3006.9 grams of cocaine which was seized by Postal Inspectors on August 28, 2017.
An indictment 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 Paul F. Daly, Jr.
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Federal Jury Finds Apopka Man Guilty of Attempted Possession of Furanyl FentanylRead the Press Release
Orlando, FL – A federal jury today found Devin Lashawn Jefferson, II (22, Apopka) guilty of attempted possession with intent to distribute of furanyl fentanyl. Jefferson faces a maximum penalty of 20 years in federal prison. His sentencing hearing is scheduled for December 2018.
Jefferson was indicted on March 21, 2018.
According to testimony and evidence presented at trial, between February and December 2017, Jefferson sent tens of thousands of dollars to recipients in China. In April 2017, U.S. Customs and Border Protection agents in New York intercepted a package from China that was addressed to an Apopka residence that had been associated with Jefferson. The package contained approximately 1 kilogram of furanyl fentanyl. On February 27, 2018, agents conducted a controlled delivery of the package, and Jefferson retrieved it from the residence. When agents attempted to stop Jefferson, he fled in his car at a high rate of speed thru a school zone and escaped. He was apprehended approximately two weeks later.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, the U.S. Postal Inspection Service, the Drug Enforcement Administration, and the Orlando Police Department. It is being prosecuted by Assistant United States Attorneys Embry J. Kidd and Dana E. Hill.
Federal Court Shuts Down Illinois Tax Return PreparerRead the Press Release
A federal court has permanently barred Kathleen Sims-Crawford and KSC Business Support Services Inc. from preparing federal tax returns for others, the Justice Department announced today. The civil injunction order, entered by Judge John J. Tharp Jr., of the U.S. District Court for the Northern District of Illinois, also prohibits Sims-Crawford from owning and managing a tax return preparation business. Sims-Crawford consented to the order.
According to the government complaint, Sims-Crawford, a Chicago resident who owns and operates KSC Business Support Services, Inc., prepared returns that reported false or inflated claims for the Earned Income Credit, fabricated or inflated business losses, and false rental income and/or expenses. The complaint alleged that these returns fraudulently reduced customers’ reported tax liabilities and helped taxpayers to obtain refunds to which they were not entitled. This conduct allegedly caused the United States hundreds of thousands of dollars in harm.
The IRS has a list of steps on its website that you can take and ten tips for choosing a tax preparer. Each year, the IRS releases the top 12 scams, known as the Dirty Dozen. Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2018, and taxpayers seeking a return preparer should remain vigilant. The IRS has some information on its website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division at [email protected] with details.
Fayetteville Woman Sentenced After Conviction of Human Trafficking OffensesRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that, DAQUANJRA TASHA WHITE, 29, of Fayetteville, was sentenced by United States Senior District Judge Malcolm J. Howard for sex trafficking of children. Judge Howard sentenced WHITE to 144 months of imprisonment followed by 5 years of supervised release.
WHITE was charged in a four-count indictment on February 8, 2017, and pled guilty to one count on February 5, 2018.
Between November 2015 and January 2016, WHITE prostituted three minor females in Fayetteville and Raleigh, North Carolina. WHITE recruited the children on social media and arranged to meet them. She then took provocative photos of them and advertised them for prostitution online. WHITE received proceeds from the girls’ prostitution.
The investigation of this case was conducted by the Fayetteville Police Department and the Federal Bureau of Investigation. The case was handled by Assistant United States Attorney Erin Blondel for the Government.
Fayetteville Man Sentenced for Drug & Felon in Possession ChargesRead the Press Release
GREENVILLE – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that JOHNNY DEWAYNE MCARTHUR, 33, of Fayetteville, North Carolina, was sentenced to 62 months imprisonment followed by 3 years of supervised release.
MCARTHUR was named in a three-count Indictment on November 29, 2017. On May 7, 2018, MCARTHUR pled guilty to Possession with Intent to Distribute a Quantity of Marijuana and to Possession of a Firearm in Furtherance of a Drug Trafficking Offense.
On October 29, 2017, officers with the Fayetteville Police Department (FPD), were on foot patrol due to gun violence and narcotics activity at a local establishment. The officers detected the smell of burnt marijuana coming from a vehicle with four occupants. As the officer approached the vehicle, one of the occupants partially opened a door, and it became apparent that the smell was coming from inside the vehicle. One of the officers made contact with the driver, who was later identified as MCARTHUR. MCARTHUR handed the officer a rolled cigar, stating they only had “one blunt.” MCARTHUR and the three occupants exited the vehicle in order for the officer to conduct a search of the vehicle. The officer found a glass jar containing three plastic bags totaling approximately 13 grams of marijuana in the center console. As the officer attempted to detain MCARTHUR, he pulled away and fled on foot. A foot chase ensued where the officer witnessed MCARTHUR remove something from his right front pocket and throw it onto the roof of a building. A search of the building roof found a .380 caliber handgun loaded with one round in the chamber and four rounds in the magazine. The firearm was also determined to be 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.
The investigation of this case was conducted by the Fayetteville Police Department and Assistant United States Attorney S. Katherine Burnette handled the prosecution of this case for the government.
Elizabethtown Man Sentenced After Conviction of Murder-For-Hire and Firearms OffensesRead the Press Release
GREENVILLE – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that today, FRANCISCO DAMIAN TORRES-VICTORIA, 25, of Elizabethtown, was sentenced by United States Senior District Judge Malcolm J. Howard for murder-for-hire and possession of a firearm by an alien. Judge Howard sentenced TORRES-VICTORIA to 120 months of imprisonment followed by 3 years of supervised release.
TORRES-VICTORIA was charged in a three-count indictment on October 5, 2016, and pled guilty to two counts on May 7, 2018.
Between September 7 and September 15, 2016, TORRES-VICTORIA recruited a confidential informant (CI) to murder a fifteen-year-old boy and his family because the boy was dating TORRES-VICTORIA’s ex-girlfriend. TORRES-VICTORIA instructed the CI to “kill them all” and burn down the residence. He provided the CI with a firearm, a can of gasoline, and a photograph of the intended victim.
The investigation of this case was conducted by the Federal Bureau of Investigation and the Bladen County Sheriff’s Office. The case was handled by Assistant United States Attorney Erin Blondel for the Government
Eccelsia College President Sentenced to 3 Years in Federal Prison for Wire FraudRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas announced today that Oren Paris III., age 50, of Springdale, Arkansas, was sentenced today to 36 months in federal prison followed by three years of supervised release. Paris was also ordered to pay $621,500.00 in restitution, on one count of honest services wire fraud. Paris was ordered to surrender to the U.S. Marshals Service to begin serving his sentence on October 10, 2018. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to the evidence presented at trial, Jonathan Woods, 41, of Springdale, served as an Arkansas State Senator from 2013 to 2017. Between approximately 2013 and approximately 2015, Woods used his official position as a senator to appropriate and direct government money, known as General Improvement Funds (GIF), to two non-profit entities by, among other things, directly authorizing GIF disbursements and advising other Arkansas legislators – including former State Representative Micah Neal, 43, of Springdale, Arkansas, to contribute GIF to the non-profits. Specifically, Woods and Neal authorized and directed the Northwest Arkansas Economic Development District, which was responsible for disbursing the GIF, to award a total of approximately $600,000 in GIF money to the two non-profit entities. The evidence further showed that Woods and Neal received bribes from officials at both non-profits, including Paris, who was the president of a college. Woods initially facilitated $200,000 of GIF money to the college and later, together with Neal, directed another $200,000 to the college, all in exchange for kickbacks. To pay and conceal the kickbacks to Woods and Neal, Paris paid a portion of the GIF to Shelton’s consulting company. Shelton then kept a portion of the money and paid the other portion to Woods and Neal. Paris also bribed Woods by hiring Woods’s friend to an administrative position at the college.
For his part in the scheme, Neal pleaded guilty on Jan. 4, 2017, before U.S. District Judge Timothy L. Brooks of the Western District of Arkansas to one count of conspiracy to commit honest services fraud. Paris pleaded guilty on April 5, 2018, before Judge Brooks to one count of honest services wire fraud. Sentencings for Neal will be later this month. Woods was sentenced September 5, 2018 to 220 months in federal prison and Shelton was sentenced September 6, 2018 to 72 months in federal prison.
The FBI and IRS investigated the case. First Assistant U.S. Attorney Kenneth Elser, Assistant U.S. Attorneys Kyra Jenner and Aaron Jennen of the Western District of Arkansas and Trial Attorney Sean F. Mulryne of the Criminal Division’s Public Integrity Section prosecuted the case.
Dubuque Man Sentenced to More than a Decade in Federal Prison for Meth TraffickingRead the Press Release
A man who trafficked methamphetamine throughout Dubuque, Iowa, and unlawfully possessed a firearm while using methamphetamine was sentenced on September 11, 2018, to more than 11 years in federal prison.
Richard Thomas Hense, age 34, from Dubuque, Iowa, received the prison term after a May 10, 2018, guilty plea to conspiracy to distribute methamphetamine and possession of a firearm by a drug user.
Evidence presented at court hearings showed that from about September 2016 until October 2017, Hense sold approximately ten pounds of ice methamphetamine throughout Dubuque that he had received from Derek Richard Rath. Rath was getting the methamphetamine in the mail from a source in Phoenix, Arizona.
On the night of October 13, 2017, officers stopped Hense for a traffic violation. The officers searched Hense’s vehicle and found a half-ounce of ice methamphetamine, prescription pills, a digital scale, a loaded .32 caliber revolver, and fifty-three rounds of ammunition. Hense admitted to possessing the methamphetamine and firearm. He also told officers that he had been smoking methamphetamine for the past year.
Hense was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. He was sentenced to 141 months’ imprisonment. Hense must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Hense is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The case was prosecuted by Special Assistant United States Attorney Drew O. Inman and investigated by the Dubuque Drug Task Force, Dubuque County Sheriff’s Office, Dubuque Police Department, Iowa Division of Narcotics Enforcement, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1009-LRR.
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Defendant pleads guilty to illegally possessing firearmRead the Press Release
ROME, Ga. – Jermaine Courtney Brown, a suspected member of the Gangster Disciples gang, has pleaded guilty to possessing a firearm while a convicted felon.
“Brown’s continued criminal behavior jeopardizes the safety of our citizens and shows an utter disregard for the law,” said U.S. Attorney Byung J. “BJay” Pak. “Through the committed and collaborative work of our law enforcement partners, we will continue to vigorously prosecute those who illegally possess firearms within our community.”
“The FBI is committed to pursuing anyone who violates federal law and is a threat to our community,” said J.C. “Chris” Hacker, Special Agent in Charge of FBI Atlanta. “Brown’s persistent criminal behavior in support of a major gang will not be tolerated and the FBI will use all its resources to remove the threat and protect our citizens.”
“The Cedartown Police Department is committed to working together as a team with local, state, and federal agencies to make our neighborhoods safer by holding those accountable who commit violent crimes in our communities,” said Cedartown Police Chief Jamie Newsome.
According to U.S. Attorney Pak, the charges and other information presented in court: Around January 30, 2018, Cedartown Police Department officers observed Brown walking along an intersection in Cedartown, Georgia. The officers were familiar with Brown based on his prior contacts with law enforcement and his suspected membership in the Gangster Disciples gang. The officers were also aware of an outstanding arrest warrant for Brown, stemming from an arrest in February 2017 for possessing a firearm as a felon.
Brown ran when he saw the officers and the officers pursued him on foot and by a patrol car. After a short chase, Brown was apprehended and arrested. Following his arrest, Brown stated that he was carrying a gun in his pants. He also asked one of the officers, “can’t you just throw [the firearm] in the bushes? I already have too many charges on me.”
In addition to recovering a loaded Taurus Millennium PT145PRO .45 caliber semi-automatic handgun, the officers also recovered approximately 26.9 grams of marijuana and a digital scale. Brown was convicted in 2008 of possession of cocaine in the Superior Court of Floyd County, Georgia.
Jermaine Courtney Brown, 28, of Cedartown, Georgia is scheduled to be sentenced at 2:00 p.m. on November 30, 2018, before U.S. District Judge Harold L. Murphy.
This case is being investigated by the Federal Bureau of Investigation and the Cedartown Police Department.
Assistant U.S. Attorney Suzette A. Smikle is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
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.
Dalton Man Sentenced to Prison for Fentanyl TraffickingRead the Press Release
CONCORD – Jared Peterson, 28, of Dalton was sentenced on Tuesday to serve five years in prison for possessing fentanyl with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on March 18, 2017, after a drug investigation, law enforcement officers from the Franconia, Sugar Hill, and Littleton, New Hampshire police departments executed a search warrant at an apartment in Franconia. In that apartment, officers found approximately 48 grams of fentanyl. Peterson later admitted to law enforcement officers that for about a year he had been traveling regularly to Lawrence, Massachusetts to purchase fentanyl to sell in the area of Franconia, New Hampshire.
Peterson pleaded guilty on May 29, 2018.
“Fentanyl is a deadly drug that has damaged communities throughout the Granite State,” said U.S. Attorney Murray. “The U.S. Attorney’s Office works closely with all of our law enforcement partners to pursue federal drug trafficking charges against fentanyl dealers who are endangering our state by selling this dangerous substance.”
This matter was investigated by the Franconia Police Department, with assistance by the Sugar Hill and Littleton Police Departments. The case is being prosecuted by Assistant U.S. Attorney Anna Dronzek.
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Cumberland County, New Jersey, Man Sentenced to 100 Months in Prison for Bank RobberyRead the Press Release
CAMDEN, N.J. – A Cumberland, County, New Jersey, man was sentenced today to 100 months in prison for robbing two banks with an accomplice, U.S. Attorney Craig Carpenito announced.
Quintin L. Jones, 36, of Vineland, New Jersey, previously pleaded guilty before U.S. District Court Judge Renée Marie Bumb to an information charging him with two counts of bank robbery. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On Oct. 11, 2016, Jones and an accomplice robbed a Cape Bank in Upper Deerfield Township, New Jersey. According to bank employees and video surveillance, two men wearing black hooded sweatshirts entered the bank. While one man crouched near the entrance and pointed what appeared to be a black revolver at employees, the other man approached bank tellers and directed them to place cash into a bag.
Both robbers fled the bank. Employees observed a tan or gold vehicle with a black soft-top rapidly exit the parking lot and turn in the direction of Vineland. Security cameras at the bank and an employee also captured pictures of the car. Investigators determined that the car matched the description of a Chrysler Sebring that was stolen on Sept. 22, 2016, during a carjacking in the parking lot of a Walmart in Mays Landing, New Jersey.
On Oct. 15, 2016, troopers with the N.J. State Police responded to a vehicle fire at a parking lot in Parvin State Park in Pittsgrove Township, New Jersey. After fire personnel extinguished the flames, troopers determined that the vehicle was the same car that had been stolen in the carjacking on Sept. 22, 2016.
Subsequent investigation revealed that Jones and the accomplice had purchased a gas can at a Walmart in Vineland and then took a cab to a Wawa gas station near Parvin State Park, where they purchased gas shortly before police responded to the vehicle fire. Investigators also learned that Jones, who had been staying at a local hotel on Oct. 15, 2016, had been observed by an employee placing a large amount of cash in a bag. Acting on this and other information, the State Police later obtained state arrest warrants for Jones and the accomplice along with search warrants for their residences. Law enforcement personnel who searched the accomplice’s residence also found clothing consistent with the outfits worn by the two men during the Cape Bank robbery as well as a toy revolver, cash, gloves, and a car key that appeared to be for the Chrysler Sebring.
Jones also admitted robbing Newfield National Bank in Newfield, New Jersey, on Oct. 7, 2016, with the accomplice. During that robbery, Jones and the accomplice stole cash before fleeing in the same stolen Chrysler Sebring.
In addition to the prison term, Judge Bumb sentenced Jones to three years of supervised release and ordered him to pay restitution of $30,856.
Jones’ accomplice, Nathan L. Wallace of Vineland, pleaded guilty on Jan. 24, 2018, and is scheduled to be sentenced Oct. 9, 2018.
U.S. Attorney Carpenito credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the FBI’s Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s sentencing. He also thanked the Vineland Police Department; the Hamilton Township Police Department; the Newfield Police Department; the Cumberland County Prosecutor’s Office; and the Salem County Prosecutor’s Office for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Company in California Agrees to Pay Clean Water Act Fines, Mitigate Impacts to Sensitive Streams and WetlandsRead the Press Release
Goose Pond Ag, Inc., a Florida corporation, and its manager of operations Farmland Management Services, Inc., an affiliate of the John Hancock Life Insurance Company, have agreed to pay a civil penalty, preserve streams and wetlands, and perform mitigation to resolve violations of the Clean Water Act (CWA) on property near the Sacramento River located in Tehama County, California, the Justice Department announced today. The property in this case was acquired from Duarte Nursery Inc. and adjoins a Duarte site that was the subject of a settlement agreement announced by the Justice Department in August 2017 and approved by a federal judge on December 7, 2017.
Goose Pond Ag and Farmland Management Services have agreed to pay $5.3 million in civil penalties and mitigation for substantial acres of disturbed streams and wetlands on the property that are connected to the Sacramento River. In addition, the settlement requires the companies to permanently preserve hundreds of acres of streams, wetlands, and buffer areas. The agreement allows the companies to continue using the site for cattle grazing, to apply for a CWA permit to conduct other activities in jurisdictional waters on the site, and to seek future determinations concerning jurisdictional waters at the site.
“Today’s agreement constitutes one of the largest settlements ever reached in a case involving the unpermitted filling of streams and wetlands. Importantly, this result also finally draws to a close another chapter in long-running Clean Water Act litigation involving these properties near the Sacramento River in Tehama County,” said Jeffrey H. Wood, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Like the Duarte settlement last year, today’s agreement serves the public interest in enforcement of the Clean Water Act and deterrence of future violations.”
“The Corps is satisfied that this enforcement action has been resolved against these companies,” said Michael Jewell, the Chief of the Regulatory Division for the U.S. Army Corps of Engineers’ Sacramento District. “We encourage members of the public to contact the Corps prior to engaging in activities that are regulated under the Clean Water Act. The Corps is always willing to talk to the public about the Regulatory Program and to provide information on jurisdiction, permit requirements, and any other aspects of the Program.”
This case stems from activities these companies conducted after they purchased property that had laid fallow and unfarmed for more than 20 years. Goose Pond bought the 1,500-acre property in 2012 from Duarte Nursery, Inc. for $8.7 million, and shortly thereafter, Farmland Management Services began operating heavy machinery through streams and wetlands as part of the companies’ efforts to convert the property to a walnut orchard. That machinery included “deep rippers” that drag long metal shanks through the ground to break up or pierce highly compacted, impermeable or slowly permeable surface layers, or other similar kinds of restrictive soil layers. The deep ripping in this case destroyed or significantly degraded the streams and wetlands at the site.
Even before Goose Pond’s purchase of the site, the companies received aerial photographs, advice from environmental consultants, and other information that alerted them to federally-protected streams and wetlands on the property. Despite that information, the companies conducted extensive ripping and other activities in streams and wetlands without a CWA dredge-or-fill permit. The settlement agreement reached today secures a significant penalty and mitigation for these violations, while providing fairness for farmers and other landowners who comply with the applicable laws.
Last year, in resolving a related case against John Duarte and Duarte Nursery, Inc., who had conducted unpermitted ripping activities immediately south of the property at issue here, the United States gave assurances that these cases are not (and will not be used as) a pretext for federal prosecution of farmers who engage in normal plowing on their farms. No federal dredge-or-fill permit is required for plowing as defined in the regulations, and no such permit is required for discharges from "normal farming ... activities," such as plowing, if they are part of an established ongoing farming operation and not for the purpose of converting federally protected waters to new uses. Those protections for farmers remain in the law today and will continue to be recognized.
The proposed consent decree, lodged in the U.S. District Court in Sacramento, is subject to a 30-day comment period and final court approval. A copy of the proposed consent decree is available on the Justice Department Web site at www.usdoj.gov/enrd/Consent_Decrees.html.
Columbia Man Sentenced to 15 Years on Federal Firearms ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated that Marcus Terrelle Marsh, age 34, of Columbia, was sentenced in federal court to 180 months imprisonment (15 years) with 3 years of supervised release to follow. Marsh plead guilty earlier this year to felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2), and 924(e). Chief United States District Judge Terry L. Wooten, of Columbia, imposed the sentence after determining that Marsh was an armed career criminal based upon his extensive prior record.
Evidence presented in court established that on July 25, 2017, at approximately 5:50 pm, an officer with the Benedict College Police Department was on patrol when he observed a black male, later identified as Marsh, walking on the sidewalk of the 2600 block of Elmwood Avenue in front of the Benedict College Business Development Center, approaching Two Notch Road. The officer observed Marsh, who was clad in jean shorts and a white t-shirt, wearing a GPS ankle monitor on his lower leg and noticed what appeared to be a handgun on Marsh’s right hip area underneath the t-shirt. After the officer pulled his car around, Marsh turned and walked in the opposite direction, stopping on the porch of a nearby home[1]. When approached by the officer, Marsh refused a patdown and ran. As Marsh began to flee, the officer’s body cam footage showed the firearm on Marsh’s right hip area. The officer gave chase and observed Marsh discard the firearm. Marsh was apprehended and the firearm was recovered. Marsh provided the officer with his brother’s name, but his identity was later discovered.
Marsh is prohibited under federal law from possessing firearms and ammunition based upon his prior state convictions. Marsh has prior state convictions for unlawful carrying of a weapon, possession of crack cocaine, resisting arrest/assault on an officer while resisting arrest, failure to stop for blue light and siren (3 separate convictions), possession with intent to distribute crack cocaine (2 separate convictions), possession with intent to distribute marijuana within the proximity of a park, possession with intent to distribute marijuana 2nd offense (2 separate convictions), trafficking crack cocaine, possession with intent to distribute crack cocaine within proximity of a park, and possession with intent to distribute ecstacy 2nd offense.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Benedict College Police 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 Stacey D. Haynes of the Columbia office handled the case.
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[1] The resident later advised officers that they did not know Marsh.
Collin County Man Sentenced for Treasury Check TheftRead the Press Release
SHERMAN, Texas – A 46-year-old Richardson, Texas, man has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Christopher Anekwe pleaded guilty on Dec. 11, 2017 to the sale of stolen treasury checks, theft of government property, and aggravated identity theft and was sentenced to 60 months in federal prison on Sep. 11, 2018 by U.S. District Judge Amos Mazzant. Anekwe was also ordered to pay restitution in the amount of $141,469.
According to information presented in court, Anekwe participated in a scheme using stolen personal identifying information to file false and fraudulent IRS tax returns, causing the government to issue refund checks based on the fraudulent information. On July 30, 2013, an associate of Anekwe sold three checks, which had been obtained from Anekwe. A federal grand jury returned an indictment on July 13, 2016, charging Anekwe with federal violations.
"The U.S. Attorney's Office and Internal Revenue Service-Criminal Investigation take seriously the crimes of theft of government funds, tax return fraud, and identity theft,” said U.S. Attorney Joseph D. Brown. “Each year millions of individuals are affected by this crime, and many millions of dollars are stolen from the federal treasury by criminals using the identifying information of innocent citizens, who are then affected by this crime as well. This office will continue to coordinate with law enforcement agencies including the IRS, in spearheading the investigation and prosecution of these crimes."
“The defendant who perpetrated this scheme defrauded the government and the taxpaying public,” said Kevin Caramucci, IRS Assistant Special Agent in Charge of the Dallas Field Office. “Stealing identities is a serious crime that hurts innocent taxpayers. Today’s sentence should serve as a strong warning to those individuals who seek to willfully defraud the United States Treasury and blatantly disregard the victims of their schemes.”
This case was investigated by the Internal Revenue Service-Criminal Investigation and was prosecuted by Assistant U.S. Attorney Tom Gibson.
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Cold Spring Man Sentenced to 120 Months for Carjacking and Firearms OffenseRead the Press Release
FRANKFORT, Ky. — Christopher D. Pinguely, 35, of Cold Spring, Kentucky, was sentenced today to 10 years in federal prison, by United States District Judge Gregory F. VanTatenhove, for carjacking and possessing a firearm in furtherance of the carjacking.
Earlier this year, Pinguely admitted that, in September 2017, he carjacked a semi-truck in Henry County, by pointing a rifle at the truck driver and threatening to shoot him. Shortly after the carjacking, law enforcement officers, with the Gallatin County Sheriff’s Office and the Kentucky State Police, located Pinguely and the semi-truck in Gallatin County. Pinguely was in possession of a MP-15 rifle.
Under federal law, Pinguely 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 five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowrey, Special Agent in Charge, ATF; Richard Sanders, Commissioner of the Kentucky State Police; and Josh Neal, Gallatin County Sheriff, jointly made the announcement.
The investigation was conducted by the ATF, KSP, and Gallatin County Sheriff’s Office. The United States was represented by Assistant United States Attorney Cynthia T. Rieker.
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 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, local strategies to reduce violent crime.
Cleveland man indicted for armed robbery of Middleburg Heights bankRead the Press Release
A Cleveland man was indicted in federal court for an armed bank robbery in Middleburg Heights.
Kysen Conway, 22, was indicted on one count of armed bank robbery and one count of using a firearm during a crime of violence.
Conway, on April 24, used, carried or brandished a firearm while robbing the Citizens Bank at 15050 Bagley Road, 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 maximum.
This case is being prosecuted by Assistant U.S. Attorney Scott Zarzycki following an investigation by the FBI and Middleburg Heights Police Department.
An indictment is only a charge. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Clackamas Man Accused of Possessing and Transporting Child PornographyRead the Press Release
PORTLAND, Ore. – Nicholas James Stacy, 24, of Clackamas, Oregon, made an initial appearance today in federal court before U.S. Magistrate Judge Stacie F. Beckerman. He was ordered detained pending trial.
The court unsealed a criminal complaint alleging Stacy possessed in excess of 9,000 videos and 20,000 images depicting child pornography on his iPhone and uploaded at least 94 files containing child pornography to his Gmail account. Stacy’s online activities were first identified by Google and the National Center for Missing and Exploited Children (NCMEC).
Stacy was arrested by the Clackamas County Sheriff’s Office on September 11, 2018 and the investigation is being conducted jointly with the U.S. Department of Homeland Security Homeland Security Investigations (HSI).
HSI and the Clackamas County Sheriff’s Office offer this advice to concerned community members:
Parents who have a child who may have come in contact with Stacy should let the child know that Stacy has been arrested for inappropriate behavior. Parents should tell the child that if Stacy did or said anything inappropriate to the child to let the parents know. If a child discloses an incident that did happen to him or her or that the child observed an inappropriate incident happen to someone else, the parent should not ask the child detailed questions about the incident. Instead, please contact the Clackamas County Sheriff’s Office Tip Line at (503) 723-4949 or call HSI at (360) 693-7712.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
2013 image of Nicholas Stacy March 2018 Image of Nicholas Stacy Current Image of Nicholas StacyCitizen of Ukraine Sentenced to 16 Months in Federal Prison for Fraud SchemeRead the Press Release
CONCORD – Yuriy Khalabuda, 37, of Ukraine, was sentenced to 16 months in prison for conspiracy to commit wire fraud, announced United States Attorney Scott W. Murray.
According to court documents, in April and May 2017, Khalabuda and another person used scanned images of gift cards on their cell phones to buy merchandise from the Best Buy store in Salem, New Hampshire. The gift cards were stolen from individuals through an internet-based fraud scheme that targeted individuals who were looking for employment.
Khalabuda was arrested on May 13, 2017, after an employee of the Best Buy Store saw him use stolen gift cards to buy merchandise worth more than $2,000. While executing a warrant to search Khalabuda’s cell phone, investigators from the Salem Police Department and the Federal Bureau of Investigation recovered numerous text messages that implicated Khalabuda in the criminal conspiracy.
Khalabuda pleaded guilty on May 30, 2018. After serving his sentence, he faces possible deportation.
“The criminal conduct involved in this case caused serious financial harm to many innocent victims,” said U.S. Attorney Murray. “People who commit these types of crimes should understand that they will be identified and prosecuted. I want to commend Salem Police Department and the FBI for their collective and persistent effort to bring this defendant to justice.”
"We're pleased to see that Mr. Khalabuda is finally being held accountable for deceiving and defrauding local businesses," said Harold H. Shaw, Special Agent in Charge of the FBI Boston Division. "Anyone who tries to follow in his footsteps by using technology to perpetrate similar schemes should know that we will continue to work with our law enforcement partners to put a stop to their criminal behavior."
The case was investigated by the Salem Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Robert M. Kinsella
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Cheatham County Jail Supervisor Pleads Guilty to Making False Statements to the FBIRead the Press Release
NASHVILLE, Tenn. – September 12, 2018 – Gary Ola, 54, a sergeant at the Cheatham County Jail in Ashland City, Tennessee, pleaded guilty late yesterday in U.S. District Court to two counts of making false statements to FBI agents, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Ola was indicted on June 26 and the charges resulted from false statements about his knowledge of an incident in which another corrections officer used a Taser to stun a restrained detainee inside the Cheatham County Jail. The other corrections officer was charged in a separate indictment with two counts of deprivation of rights under color of law and two counts of obstruction of justice and his trial is scheduled for early 2019. He is presumed innocent until proven guilty.
In his plea agreement, Ola admitted to making false statements during two separate interviews with federal agents investigating the Taser incident. In the first interview in August 2017, Ola falsely told agents with the FBI and the Tennessee Bureau of Investigation that, after he helped secure a detainee in a restraint chair in the Cheatham County Jail on Nov. 5, 2016, he walked away and did not see another corrections officer deploy a Taser and stun the detainee. In a second interview with the FBI in May 2018, Ola stated that he did not see the corrections officer stun the detainee after officers placed the detainee in handcuffs. Ola admitted that he made these false statements because he feared retaliation if he reported that the corrections officer had used his Taser in violation of the jail’s policy and training.
Ola faces a maximum sentence of five years in prison and a $250,000 fine on each count. A sentencing date has yet to be scheduled.
This case was investigated by the FBI and the Tennessee Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Sara Beth Myers of the Middle District of Tennessee and Civil Rights Division Trial Attorney Michael J. Songer.
California Drug Trafficker Sentenced to 35 Years in Federal Prison for Transporting Heroin and Cocaine to Chicago Aboard Amtrak TrainsRead the Press Release
CHICAGO — A federal judge has sentenced a California man to 35 years in prison for overseeing an international drug-trafficking organization that used Amtrak trains to ship heroin and cocaine to Chicago from Los Angeles.
EDGAR ROQUE, 32, of Paramount, Calif., was the leader of an extensive network of drug dealers that moved thousands of kilograms of narcotics aboard the trains from 2010 to 2016. At his direction, hundreds of packages were shipped from California to Chicago, St. Louis and elsewhere, each carrying at least three kilograms of cocaine and sometimes significantly more. Roque worked with an insider at Amtrak to facilitate the shipments and avoid detection by law enforcement.
Roque pleaded guilty earlier this year to drug and money laundering charges. U.S. District Judge Virginia M. Kendall imposed the sentence Tuesday in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; and Gabriel L. Grchan, Special Agent-in-Charge of the Chicago office of the Internal Revenue Service Criminal Investigation Division. Substantial assistance was provided by the Amtrak Inspector General’s Office and the Amtrak Police Department. Assistant U.S. Attorneys Paul H. Tzur and Kavitha Babu represent the government.
“This is criminal conduct of the worst kind,” Mr. Tzur argued in the government’s sentencing memorandum. “Edgar Roque’s leadership role directing the mass movement of heroin and cocaine into the Chicago area and elsewhere showed that he had absolutely no regard for the safety and well-being of addicts and the communities into which he delivered the drugs.”
Authorities uncovered Edgar Roque’s drug-trafficking operation through a multi-year investigation dubbed “Operation Derailed.” The investigation was conducted under the umbrella of the Organized Crime Drug Enforcement Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking and money laundering organizations.
Edgar Roque was personally responsible for importing the drugs from Mexico into California via multiple cartel-level suppliers. His organization involved more than a dozen people in California, Illinois and elsewhere. After picking up the drugs at Union Station in Chicago, the group stored the narcotics at stash houses, including a home in the Gage Park neighborhood of Chicago and an apartment in northwest suburban Streamwood. After selling the drugs throughout the Chicago area, Edgar Roque or members of his crew periodically flew west on commercial airlines with the cash proceeds, often carrying $150,000 per person.
More than 20 defendants were charged during the investigation, and several have pleaded guilty to their roles in Edgar Roque’s organization. PHILLIP DIAZ, of Paramount, Calif., ensured delivery of narcotics and maintained bank accounts to launder drug proceeds. Judge Kendall on Tuesday sentenced Phillip Diaz to 20 years and ten months in prison. ANTHONY KOON, of Pueblo, Colo., delivered nearly 20 kilograms of heroin – with a wholesale value of at least $1 million – to the Chicago area in August 2014. Judge Kendall previously sentenced Koon to nine years in prison. GERARDO SANCHEZ, of Los Angeles, Calif., helped launder drug proceeds through various bank accounts, and he accepted delivery of Koon’s heroin in a hotel room in Tinley Park. Judge Kendall previously sentenced Sanchez to 17 and a half years in prison. JORGE LUIS OCHOA-CANELA, of Paramount, Calif., helped move hundreds of thousands of dollars of drug proceeds back to drug suppliers. Judge Kendall previously sentenced Ochoa-Canela to five years and ten months in prison. An Amtrak employee, ROY J. GRIFFIN, of Calumet City, admitted scheming to steal a package of cocaine that had arrived at Union Station in Chicago. U.S. District Judge Andrea R. Wood previously sentenced Griffin to 18 months in prison.
Defendants who have pleaded guilty and are awaiting sentencing include RICHARD ROQUE, of Paramount, Calif. (scheduled to be sentenced on Sept. 27, 2018); ANGELICA CERVANTES, of Chicago (Nov. 19, 2018); JUAN J. CERVANTES, of Chicago (Nov. 21, 2018); and OMAR RAMIREZ, of Compton, Calif. (Dec. 18, 2018).
CEO of Lab Testing Company and Marketing Representative Sentenced to Federal Prison in Pain Management Clinic Kickback SchemeRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Konstantin Bas, age 41, of Brooklyn, New York, and co-conspirator Mubtagha Shah Syed, age 49, of Jersey City, New Jersey, today to a year and a day, and three months in prison, respectively, each followed by three years of supervised release, for a scheme in which a Maryland pain management practice referred urine specimens to Bas’s testing lab in return for $1.37 million in kickbacks. Chief Judge Bredar also ordered Bas to forfeit $241,600 and to pay a fine of $5,000. Chief Judge Bredar ordered that Syed serve the first three months of his supervised release in home detention with electronic monitoring, and ordered that Syed forfeit $23,400 and pay a fine of $4,000.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Acting Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; and Special Agent in Charge Bret D. Mastronardi, Investigative Operations, U.S. Office of Personnel Management Office of the Inspector General.
According to their plea agreements and other court documents, Bas was the owner and CEO of Accu Reference, a medical testing laboratory with corporate offices in New Jersey. In late 2010 or early 2011, Bas began using Mubtagha Shah Syed to market Accu Reference’s services. In February 2011, Syed had a meeting with Muhammad Ahmad Khan, the chief administrative officer (CAO) of a group of Maryland-based pain management medical clinics that were incorporated as Advanced Pain Management Services but that operated under the name of American Spine Center (APMS/ASC). The clinics were owned and operated by Drs. Atif Malik and Sandeep Sherlekar. APMS/ASC required patients who were prescribed pain relief medications to submit urine samples for testing in order to monitor the levels of pain medication or other narcotics in their bodies.
During their February 2011 meeting, Syed and Khan discussed the possibility of APMS/ASC referring its patients’ urine toxicology specimens to Accu Reference for testing in return for the payment of kickbacks. Khan discussed the plan with Malik and Sherlekar who assigned Vic Wadhwa, APMS/ASC’s Chief Financial Officer (CFO), to conduct additional discussions concerning the arrangement. Syed arranged for a meeting between Bas and Wadhwa during which they agreed that Accu Reference’s profits from the urine toxicology tests would be equally divided between Accu Reference and APMS/ASC personnel. In addition, Bas agreed to pay Syed a 5% share of the proceeds for his role in putting the transaction together. Unknown to Bas, Wadhwa told Malik and Sherlekar that he and Bas had agreed on a figure of $35 per specimen cup for the kickbacks, which was significantly lower than the amount of the kickbacks Bas would actually be paying under his agreement with Wadhwa. This allowed Wadhwa and Khan to skim off approximately 60% of the kickback payments for themselves. Starting in the spring of 2011, APMS/ASC also referred patients for back braces to another company that Bas operated, in exchange for kickbacks to APMS/ASC.
Each month from April 2011 through July 2012, APMS/ASC referred between 700 and 1,300 patient urine specimens to Accu Reference in return for kickbacks. Accu Reference received approximately $4.4 million in payments from claims submitted to Medicare and private insurers for testing the specimens submitted by APMS. Bas caused his companies to pay kickbacks totaling approximately $1.37 million to Wadhwa and his co-conspirators.
Co-Defendants: Sandeep Sherlekar, age 52, of Germantown, Maryland, died before his scheduled initial appearance and arraignment. The charges were dismissed after his death.
Atif Babar Malik, age 48, of Germantown, Maryland, was sentenced to eight years in prison, followed by three years of supervised release. The sentence was imposed for his trial conviction on 26 counts arising from the $1.376 million kickbacks scheme and a fraudulent billing scheme, as well as his guilty plea to a conspiracy to defraud the United States of more than $2.1 million in taxes. Malik was also ordered to pay a fine of $75,000; to pay restitution of $175,000; and to forfeit $241,976.
Vic Wadhwa, 41, of Frederick, Maryland, pleaded guilty to violating the Anti-Kickback Act.
Scheduled to be sentenced on September 26, 2018 at 4:00 p.m.Muhammad Ahmad Khan, age 44, charged with the kickbacks conspiracy and conspiracy to defraud the United States. He is a fugitive.
United States Attorney Robert K. Hur commended the FBI, the Department of Health and Human Services – OIG, IRS - Criminal Investigation, the Defense Criminal Investigative Service, and the Office of Personnel Management – OIG for their work in the investigation. Mr. Hur also thanked Assistant U.S. Attorneys Jefferson M. Gray and Sean Delaney, who prosecuted the case.
Buffalo Man Charged in Second Superseding Indictment with Selling Heroin and Fentanyl That Resulted in A DeathRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury returned a second superseding indictment charging Jawayne Watkins, 29, aka Weezy, of Buffalo, NY, with possession with intent to distribute, and distribution of, heroin and 4-fluoroisobutyryl fentanyl, causing serious bodily injury to, and the death an individual identified as A.C. Watkins, if convicted, faces a mandatory minimum penalty of 20 years in prison and a maximum of life.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the second superseding indictment, between November 9, 2017, and November 10, 2017, Watkins distributed heroin and 4 fluoroisobutyryl fentanyl causing the death of an individual identified as A.C.
Watkins was on New York State parole and living in a halfway house at the time of his arrest in November 2017.
4 fluoroisobutyryl fentanyl is a rare, dangerous form of fentanyl which was allegedly distributed by Watkins.
The second superseding indictment is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Brother and Sister Sentenced to Federal Prison for Attempting to Steal $3.7 Million with Phony Invoice SchemeRead the Press Release
TRENTON, N.J. – A brother and sister from New Jersey were sentenced today to federal prison terms for their respective roles in running a multi-million dollar fraudulent invoice scheme, U.S. Attorney Craig Carpenito announced.
Shevandra Verasawmi, 38, of Matawan, New Jersey, was sentenced to 87 months in prison and Vishallie Verasawmi, 37, of Green Brook, New Jersey, was sentenced to 48 months in prison. Both were found guilty of all four counts of an indictment charging them with one count of conspiracy to commit mail fraud and three counts of mail fraud. The defendants were convicted following a one-week trial before U.S. District Judge Freda L. Wolfson in Trenton federal court. The jury deliberated for one hour before returning its verdict.
According to documents filed in this case and the evidence at trial:
From April 2016 through August 2016, Shevandra and Vishallie Verasawmi defrauded an entity identified in the indictment as “Victim Company 1” into paying shell companies that were incorporated by Shevandra Verasawmi. Despite the fact that the shell companies never had contracts for goods or services with Victim Company 1, Vishallie Verasawmi used her position as an employee of Victim Company 1 to cause the shell companies to be added to Victim Company 1’s accounts payable system.
Shevandra and Vishallie Verasawmi then submitted dozens of fraudulent invoices to Victim Company 1 and ultimately deposited the fraud proceeds into bank accounts they controlled. In total, Shevandra and Vishallie Verasawmi attempted to divert millions of dollars belonging to Victim Company 1 and spent the proceeds on personal expenses, including a luxury car and credit card payments.
The indictment seeks forfeiture of Shevandra and Vishallie Verasawmi’s proceeds from the scheme, including $1,066,830 and a 2016 BMW 750Li xDrive sedan.
In addition to the prison terms, Judge Wolfson sentenced the both of the defendants to three years of supervised release and ordered them both to pay restitution of $1,066,830. Vishallie Verasawmi was also ordered to forfeit the BMW.
The investigation was led by special agents with the U.S. Attorney’s Office, District of New Jersey.
The government is represented by Senior Litigation Counsel Daniel V. Shapiro of the U.S. Attorney’s Office Economic Crimes Unit and Assistant U.S. Attorney Dara Aquila Govan of the U.S. Attorney’s Office Cybercrime Unit. Senior Litigation Counsel Barbara A. Ward and Special Assistant U.S. Attorney Kathleen Robeson of the U.S. Attorney’s Office Asset Recovery and Money Laundering Unit are handling the forfeiture aspects of the case.
Boston Man Sentenced for Distributing Drugs in and Around Public Housing DevelopmentRead the Press Release
BOSTON – An identified Boston gang member was sentenced today in federal court in Boston for distributing drugs in and around the Mildred C. Hailey Apartments in Jamaica Plain.
Joe Simmons, a/k/a “Profit,” 30, was sentenced by U.S. District Court Judge Denise J. Casper to seven years in prison and six years of supervised release. In June 2018, Simmons pleaded guilty to distribution of controlled substances within 1,000 feet of a public housing facility.
Following a two-year investigation, Simmons and eight others were charged in January 2018 in connection with illegal drug distribution and firearm possession within and near the Mildred C. Hailey Apartments in Jamaica Plain, formerly known as the Bromley Heath Housing Development. On May 11, 2017, Simmons, an alleged member of the Heath Street Gang, sold cocaine base, also known as crack cocaine, to a cooperating witness inside the development. Simmons told the cooperating witness that he could supply him with “eight balls all day” and would “take care” of him. According to court documents, Simmons’ criminal record includes convictions for assault and battery, possession of a firearm, resisting arrest, and drug possession, among other charges.
The investigation and arrests sought to reduce violence and improve the quality of life in and around the Mildred C. Hailey Apartments for residents by removing individuals who distributed drugs and/or were actively involved in violence and gang disputes.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William Gross made the announcement. Assistance was also provided by the Boston Housing Authority’s Department of Police and Public Safety.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bolivia Man Sentenced to 18 Years After Conviction of Narcotics OffensesRead the Press Release
GREENVILLE – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, DAVIN LAMONT SMITH, 43, of Bolivia, was sentenced by Senior United States District Judge Malcolm J. Howard for possession with intent to distribute cocaine. Judge Howard sentenced SMITH to 216 months of imprisonment followed by 6 years of supervised release.
SMITH was charged in a six-count superseding indictment on March 22, 2017, and pled guilty to four counts on April 11, 2018.
Beginning in April 2016, SMITH distributed cocaine in and around Bolivia, North Carolina. Between July and September 2016, a confidential informant (CI) purchased cocaine from SMITH four times. Other informants reported seeing the defendant possess firearms. Federal Bureau of Investigation (FBI) agents obtained a search warrant for SMITH’s residence, where they found firearms, ammunition, and marijuana. Later, SMITH admitted to another informant that he had additional firearms and had previously shot at law enforcement officers.
SMITH was previously federally convicted of distribution of 3.5 grams of cocaine base, possession of a firearm by a felon, and using and carrying a firearm in relation to a drug trafficking crime and sentenced to 138 months’ imprisonment.
The investigation of this case was conducted by the Federal Bureau of Investigation and the Brunswick County Sheriff’s Office. The case was handled by Assistant United States Attorney Erin Blondel for the Government.
Bergen County, New Jersey, Man Sentenced to 61 Months in Prison for Defrauding Two International Companies of $3 Million and Failing to Pay More Than $880,000 in TaxesRead the Press Release
NEWARK, N.J. – A Park Ridge, New Jersey, man was sentenced today to 61 months in prison for using shell companies and phony invoices to scam both his and his wife’s employers out of millions of dollars, U.S. Attorney Craig Carpenito announced.
Philip Charles de Gruchy, 64, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to Count One and Counts 10 through 15 of a superseding indictment charging him with conspiracy to commit mail fraud and subscribing to false individual and corporate tax returns. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From August 2007 through April 2, 2010, de Gruchy’s then-wife Barbara Brown was employed by “Company A,” a toy and juvenile products retailer headquartered in Wayne, New Jersey, first as director of customer relationship management and then as director of global customer relations management. She had authority to hire and pay contractors. Brown caused Company A to enter into a business relationship with CEM Inc., an entity that she and de Gruchy secretly controlled. From Nov. 5, 2007, through March 4, 2010, CEM submitted approximately 170 invoices to Company A totalling more than $3 million for alleged marketing consulting work that was ultimately unnecessary, worthless, or never completed.
Although the checks that Company A issued to CEM were mailed to various Canadian addresses, the checks were ultimately deposited by de Gruchy into a CEM account at bank branches located in Park Ridge. De Gruchy wrote checks out of the CEM account payable directly to either de Gruchy, Brown or two companies affiliated with de Gruchy: Silk Farm Inc. and Ontario LLC. De Gruchy and Brown then used the money for personal purposes, including home renovations, mortgage payments on the Park Ridge residence that Brown and de Gruchy shared, and credit card expenses.
From July 2010 through Nov. 11, 2011, de Gruchy was employed as the director of global relations management by “Company B,” an international manufacturer and retailer of luxury suitcases and accessories, headquartered in South Plainfield, New Jersey. He was responsible for a data migration project designed to assist Company B with identifying customer purchasing patterns. De Gruchy obtained verbal approval from Company B to hire Brown to assist him on the migration project. At no time did de Gruchy reveal his personal and financial relationship with Brown.
From November 2010 until November 2011, Brown submitted invoices in her own name or the name of her company, BI Insights, totaling more than $300,000 for purported work related to the data migration project. De Gruchy approved all of the invoices submitted by Brown and BI Insights. The work was ultimately unnecessary, worthless, or never completed. Checks from Company B totaling $216,825 were sent to one of the Canadian addresses used to receive checks from Company A and deposited into a Canadian bank account. Certain funds from the Canadian bank account were thereafter transferred to de Gruchy and Brown’s joint personal bank accounts in the United States.
De Gruchy also admitted that he filed false federal tax returns, Forms 1040, for the calendar years 2009 and 2010, in which he knowingly overstated expenses and understated gross receipts, including receipts from the fraudulent conduct involving Company A and Company B. De Gruchy further admitted that he filed false federal corporate income tax returns, Forms 1120, for the calendar years 2009 and 2010 for CEM Inc. and Silk Farm Inc., in which he falsely claimed certain payments as business expenses. De Gruchy acknowledged at the plea hearing that he owes the IRS $882,844 in additional taxes for 2009 and 2010.
Brown, who was charged with de Gruchy in the superseding indictment, passed away in May 2017, and the charges against her were dismissed.
In addition to the prison term, Judge Wigenton sentenced de Gruchy to three years of supervised release. Restitution will be determined at a later date.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and IRS-Criminal Investigation, under the direction of Special Agent in Charge John Tafur in Newark, with the investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel Leslie F. Schwartz of the U.S. Attorney’s Office Special Prosecutions Division, and Assistant U.S. Attorney Sarah Devlin of Asset Recovery and Money Laundering Unit, in Newark.
Bassfield Man Pleads Guilty to Bomb Threat Against Veterans Nursing HomeRead the Press Release
Hattiesburg, Miss. – Terry L. Magee, 38, of Bassfield, pled guilty yesterday before U.S. District Judge Keith Starrett to threatening to bomb the Veterans Administration Nursing Home in Collins, Mississippi, announced U.S. Attorney Mike Hurst and Special Agent in Charge James Ross with the Veterans Administration - Office of Inspector General.
On February 17, 2018, Magee called the main phone line at the Veterans Administration Nursing Home in Collins and told the person who answered the phone that he was going to blow the place up. Magee was indicted on May 2, 2018.
"These charges underscore the Veterans Affairs Office of Inspector General’s commitment to the safety of the Veteran Affairs’ patient population, as well as its employees, guests, and facilities," said VA OIG Special Agent in Charge James Ross.
Magee will be sentenced by Judge Starrett on November 27, 2018, at 9:30 a.m., and faces a maximum sentence of 10 years in federal prison and a $250,000 fine.
This case was investigated by the Veterans Administration - Office of Inspector General, the Federal Bureau of Investigation Joint Terrorism Task Force, Mississippi Homeland Security, and the City of Collins Police Department. Assistant U.S. Attorney Erin Chalk is prosecuting the case.
Bank Manager Admits Embezzling $879,000 from CD AccountsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that STEPHEN CARBONELLA, 59, of Hamden, pleaded guilty today in Hartford federal court to embezzling funds from his employer, Webster Bank Corporation, where he served as bank manager of the Orange branch office.
According to court documents and statements made in court, between approximately 2003 and 2017, CARBONELLA withdrew $879,016.48 from approximately 20 account holders’ certificate of deposit (CD) accounts at Webster Bank, without the knowledge or consent of the account holders, and used the embezzled funds for his own purposes. He also took steps to conceal his misconduct, including by forging signatures and falsifying documents.
CARBONELLA pleaded guilty to one count of embezzlement by a bank officer or employee, an offense that carries a maximum term of imprisonment of 30 years. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on December 4, 2018.
CARBONELLA has been released on a $200,000 bond since his arrest on July 3, 2018.
This matter is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Appeals Court Upholds 70-Month Prison Sentence for Heroin TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that the Third Circuit Court of Appeals today affirmed the 70-month prison sentence of Sean Griffin, age 24, that was imposed by U.S. District Court Judge Malachy E. Mannion on May 2, 2017.
According to United States Attorney David J. Freed, the Court ruled that Griffin, who used the street name of “Kritical” and who pleaded guilty in November 2016 to conspiracy to distribute heroin, was not entitled to a reduction in his sentence for being a minor participant in the drug conspiracy.
Griffin argued on appeal that he was less culpable than other members of the conspiracy and therefore was entitled to a “minor role” adjustment in his prison sentence. The Court disagreed, reasoning that “multiple witnesses identified Griffin as a key distributor of heroin for the [Black P-Stone’s] local squads—a ‘four-star general’ in the parlance of the conspiracy.” Griffin, the Court noted, “distributed large quantities of drugs throughout Maine and Pennsylvania, and his efforts were a vital part of the conspiracy’s success.”
Griffin was indicted by a federal grand jury in September 2015, and later in a superseding indictment in October 2016, as a result of an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police from Monroe County into the drug trafficking and sex trafficking activities of a gang known as the “Black P-Stones.” Griffin admitted in his guilty plea that he and other members of the gang distributed heroin in both Pennsylvania and Maine.
Assistant United States Attorney Francis P. Sempa prosecuted the case and handled the appeal for the government.
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Another Texas Businessman Pleads Guilty to Participating in Multi-Million Dollar Fraud Scheme that Exploited Big Crow Program Office at Kirtland Air Force BaseRead the Press Release
ALBUQUERQUE – Arturo Vargas, 55, a businessman from El Paso, Texas, pleaded guilty today in federal court in Albuquerque, N.M., to participating in a fraudulent scheme to defraud the United States out of millions of dollars through contracts involving the now defunct Big Crow Program Office at Kirtland Air Force Base in Bernalillo County, N.M.
Vargas entered the guilty plea to one of the conspiracy charges in the 46-count indictment charging him with conspiring to defraud the United States with respect to claims. Vargas’s plea agreement, attached to this press release, includes a five-page admission of facts in which he acknowledges and accepts responsibility for the criminal conduct attributed to him in the indictment.
Vargas remains on conditions of release pending his sentencing hearing, which has yet to be scheduled. Under the terms of the plea agreement, Vargas will be sentenced to a term of imprisonment within the range of 0 to 21 months, and the Court will determine any fine, restitution, and the length and conditions of supervised release imposed on Vargas. The United States has agreed to move to dismiss the remaining charges against Vargas after he is sentenced.
Vargas’s business partner, Jose Diaz, 59, also of El Paso, previously entered a guilty plea and admitted his involvement in the fraudulent scheme in April 2018. Diaz pled guilty to three counts, a conspiracy charge and two fraud charges, of the indictment and acknowledged the criminal conduct attributed to him in the indictment. Diaz remains on conditions of release pending his sentencing hearing, which has yet to be scheduled. His sentencing exposure is discussed below. The United States will move to dismiss the remaining charges against Diaz after he is sentenced.
Summary of the Indictment
Vargas, Diaz, and their co-defendants, Milton Boutte, 73, of Moriarty, N.M., and George Lowe, 56, of Fort Washington, Md. were indicted in Nov. 2017, in a 46-count indictment charging them with perpetuating a fraudulent scheme to defraud the United States from Oct. 2004 through Feb. 2009, in Bernalillo County, N.M., and elsewhere. The indictment generally alleged that the defendants perpetuated their scheme by submitting fraudulent invoices to federal agencies and fraudulently participating in a government program intended to promote minority-owned small businesses. According to the indictment, beginning in fall 2004, Boutte, who was then the Director of the Big Crow Program Office, and Lowe, a lobbyist, conspired and schemed with Diaz and Vargas, owners of minority-owned small businesses who had contracts with the Big Crow Program Office, to pay lobbyists, consultants and contractors with funds fraudulently obtained from the United States. The defendants allegedly did so even though the Big Crow Program Office was not authorized to lobby or to expend appropriated funds for lobbying activities under the contracts they were operating under.
The indictment alleged that the defendants facilitated their fraudulent scheme by exploiting a U.S. Small Business Administration (SBA) program intended to promote the development of small businesses owned by socially and economically disadvantaged individuals by making them eligible to obtain sole-source contracts from government agencies without competitive bidding. In April 1995, Diaz enrolled his company, Miratek, in the SBA program and in 2004 Miratek received a sole-source contract to provide technical and managerial support for the Big Crow Program Office. After the sole-source contract was awarded to Miratek, the defendants allegedly conspired fraudulently to misapply funds to pay Lowe and other lobbyists for lobbying on Big Crow’s behalf, allegedly diverting at least $529,000 of the contract funds to pay Lowe and his firm, Broadcreek Associates. This allegedly violated the conditions of the SBA program and of Miratek’s contract because lobbying services were not within the authorized scope of work and because Lowe was not an employee of Miratek. In furtherance of their alleged frauds, the defendants allegedly disguised the nature of the claims for services purportedly provided by Lowe and other lobbyists.
The indictment alleged that, in April 2004, after Miratek’s eligibility for the SBA program expired, the defendants created a joint venture to take its place in the fraudulent scheme. According to the indictment, Diaz and Vargas created a joint venture known as Vartek, LLC, to afford Diaz the ability to continue to have access to sole-source contracts under the SBA program and to enable the defendants to continue to perpetuate their scheme to defraud the United States. The SBA relied on the promises and representations of Diaz and Vargas and approved the Vartek joint venture on Dec. 20, 2005. Vartek was awarded two sole-source contracts, valued at approximately $3,209,116 and $3,847,939, respectively, to provide technical and analytical support for the Big Crow Program Office similar to the contracts previously awarded to Miratek.
The indictment further alleged that Diaz and Vargas misappropriated funds authorized under the Vartek contracts to pay Lowe and other unauthorized lobbyists, consultants and contractors at Boutte’s direction. Diaz and Vargas submitted fraudulent invoices to the U.S. Army Contracting Agency containing claims for payment for services purportedly provided by Lowe and other lobbyists, consultants and contractors. To conceal and disguise the nature of those payments, Diaz and Vargas misrepresented in those invoices that Lowe and other lobbyists, consultants and contractors were Vartek employees. To further disguise the diversion of large sums, Diaz and Vargas made fictional claims for work purportedly performed under the contracts by other persons. Diaz and Vargas fabricated the hours that those purported employees worked on the contracts. Diaz and Vargas falsely represented that the lobbyists and consultants were “project managers” and billed the government at or near the highest rate allowed under the contracts. In aggregate, Diaz and Vargas fraudulently claimed and obtained payments under the Vartek contracts totaling more than $5,800,000 for lobbyists, consultants and unauthorized contractors, of which at least $506,000 was diverted and paid to Lowe and his firm, Broadcreek Associates. Diaz also falsified and fabricated the hours that he himself worked under those contracts.
The indictment includes forfeiture provisions requiring that the defendants forfeit to the United States any property, real or personal, which constitutes or is derived from proceeds of their crime if the defendants are convicted of the offense of conspiracy to commit wire fraud.
Statutory Penalties for Charges in Indictment 17-CR-3338-JB
Count 1 charges Boutte, Diaz, Vargas and Lowe with conspiracy to defraud the United States with respect to claims, in violation of 18 U.S.C. § 286, and carries a maximum penalty of ten years of imprisonment and a fine of not more than $250,000 or twice the pecuniary loss or gain.
Count 2 charges Boutte, Diaz, Vargas and Lowe, with conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and carries a maximum penalty of 20 years of imprisonment and a fine of not more than $250,000 or twice the pecuniary loss or gain.
Counts 3 and 4 charge Boutte, Diaz and Vargas with fraud against the United States, in violation of 18 U.S.C. § 1031, and aiding and abetting such fraud, in violation of 18 U.S.C. § 2. Each charge carries a maximum penalty of 20 years of imprisonment and a fine not more than $5,000,000 if the loss is less than $500,000, but not to exceed $10,000,000 in the aggregate.
Counts 5 through 46 charge certain of the defendants with making false, fictitious and fraudulent claims, in violation of 18 U.S.C. § 287, and aiding and abetting the making of such claims, in violation of 18 U.S.C. § 2. Each charge carries a maximum penalty of five years of imprisonment and a fine of not more than $250,000. Counts 5 through 9 charge Boutte, Diaz and Lowe; Counts 10 through 22 charge Boutte, Diaz, Vargas and Lowe; Counts 23 through 24 charge Boutte, Diaz and Vargas; and Counts 25 through 46 charge Boutte, Diaz and Vargas.
Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case was investigated by the Major Procurement Fraud Unit of the U.S. Army Criminal Investigations Command, Defense Criminal Investigations Services, Defense Contract Audit Agency – Investigative Support, and U.S. Small Business Administration Office – Office of Inspector General, and General Services Administration – Office of Inspector General. Assistant U.S. Attorneys Timothy S. Vasquez and Jeremy Peña are prosecuting the case.
Vargas Plea AgreementAkron men indicted following arrest with 14 firearms, stolen police body armor and 1,000 grams of methamphetamineRead the Press Release
Two Akron men were indicted in federal court after police arrested them with 14 firearms, stolen police body armor and more than 1,000 grams of methamphetamine.
Indicted are Justin D. Martin and Brandon L. Sheridan, both 32.
They are both charged with one count of conspiracy to possess with intent to distribute methamphetamine and one count of possession of firearms in furtherance of drug trafficking crimes.
Martin and Sheridan were using the house at 106 Lake Street at the base of their drug trafficking operations. A search of the house by the Akron SWAT team resulted in the discovery of approximately 1,039 grams of methamphetamine, 14 firearms (four of which were reported stolen), ammunition and $7,125 in cash, according to court documents.
Authorities also recovered law enforcement-issued body armor previously reported stolen from a Cuyahoga Falls police officer during a residential burglary, according to court documents.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than maximum.
This cases is being prosecuted by Assistant U.S. Attorney Aaron P. Howell following an investigation by the Akron Police Department and Federal Bureau of Investigation.
An indictment is only a charge. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
10 Members and Associates of Manhattan Robbery Crews Charged in Manhattan Federal Court with Racketeering, Robbery, Narcotics, Burglary, and Firearms OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James J. Hunt, the Special Agent-in-Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), James P. O’Neill, the Commissioner of the Police Department for the City of New York (“NYPD”), and George P. Beach II, the Superintendent of the New York State Police (“NYSP”), announced the unsealing today of a Superseding Indictment charging 10 members and associates of Manhattan robbery crews with racketeering, narcotics, robbery, burglary, and firearms offenses. Six of the charged defendants are members of a street gang known as the 200, operating in and around northern Manhattan. One of those defendants is also charged with the 2014 murder of Orlando Rivera in furtherance of the 200 gang.
A total of five defendants were taken into custody today; one other defendant was already in federal custody. Five of the 10 defendants will be presented and arraigned before U.S. Magistrate Judge Kevin N. Fox later today. The case is assigned to U.S. District Judge Laura Taylor Swain.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged in the Indictment, the defendants wreaked havoc on their northern Manhattan neighborhood for years through a litany of crimes that harmed local businesses, injured robbery victims, and killed an innocent man. Thanks to the extraordinary work of the DEA, the NYPD, and the State Police, the defendants will now face justice for their crimes.”
DEA Special Agent-in-Charge James J. Hunt said: “DEA’s investigations have a knack for exposing violent crime; evident in our arrests of MS-13 members, Trinitarios, Sinaloa Cartel members and today’s 200 Crew. The 200 Crew’s alleged reign of terror is responsible for a rap sheet of crimes ranging from robbery to racketeering and murder. I commend the New York Drug Enforcement Task Force REDRUM unit and U.S. Attorney’s Office Southern District of New York on today’s arrests.”
NYPD Commissioner James P. O’Neill said: “Dismantling violent street gangs and ending the criminal activities that support them will always be a priority for the NYPD and our law enforcement partners. I thank the detectives, special agents, and others involved in this important case, and commend the DEA and the Southern District for sharing our vision of a New York City in which all those we serve become more safe each year, and feel more safe in every neighborhood, as well.”
NYSP Superintendent George P. Beach II said: “These charges are a direct result of the hard work and cooperation among law enforcement at all levels and I applaud all of our partners for their dedication to fighting organized crime. The disruption of this alleged illegal operation serves as a strong reminder that gang and related activities such as racketeering, drug trafficking, burglary, and the violence that is perpetuated by such crimes, will not be tolerated.”
As alleged in the Superseding Indictment unsealed today in Manhattan federal court and in other court papers[1]:
From 2014 through September 2018, in the Southern District of New York and elsewhere, MILTON CHARDON, a/k/a “Blanquito,” CHRISTIAN PABON, a/k/a “Banga,” BRYAN CASTILLO, a/k/a “True,” GEORGE CITRONELLE, a/k/a “CY,” a/k/a “BY,” JEREMY ESTEVEZ, a/k/a “Jerm Racks,” and YASMIL FERTIDES, a/k/a “Little Half,” were all members and associates of the 200 street gang. In order to fund the gang, protect its territory, and promote its standing, members of the 200 engaged in, among other things, narcotics trafficking, robbery, and other acts of violence, including murder. 200 members sold heroin, cocaine, marijuana, and OxyContin in the gang’s territory, possessed shared firearms, and engaged in shootings as part of their gang membership.
In particular, on October 2, 2014, PABON murdered Orlando Rivera in the vicinity of 1653 Saint Nicholas Avenue in Manhattan, in order to maintain and increase his status in the 200 gang. Additionally, on December 17, 2015, CHARDON and FERTIDES shot at and attempted to kill an individual in the vicinity of the intersection of Sickles Street and Sherman Avenue in Manhattan, and on November 21, 2016, CITRONELLE shot at victims of a robbery he carried out with other 200 members and associates in the vicinity of the intersection of Academy Street and Nagle Avenue in Manhattan.
Members of the 200 gang also participated with others in a conspiracy to commit robberies, a conspiracy to commit pharmacy burglaries, and a conspiracy to distribute oxycodone, all between 2011 and 2018. CHARDON and FERTIDES participated in these conspiracies with SAMANTHA BATISTA, NOEL MARTINEZ, a/k/a “Crazy,” DOMINGO TOLENTINO, a/k/a “Juvi,” and JUAN CALDERON, a/k/a “Priva.” BATISTA, MARTINEZ, and TOLENTINO robbed a marijuana dealer on or about November 8, 2016, at 510 West 188th Street in Manhattan, during which a firearm was discharged. The pharmacies that the crew targeted included a pharmacy in the vicinity of 1985 University Avenue in the Bronx, which CHARDON and CALDERON targeted on October 8, 2016; a pharmacy in the vicinity of 1985 University Avenue in the Bronx, which FERTIDES and CALDERON targeted on June 15, 2017; and a pharmacy in the vicinity of 212 Nagle Avenue in Manhattan, which CHARDON, TOLENTINO, and CALDERON targeted on October 10, 2016.
* * *
Defendants CHARDON, CASTILLO, CITRONELLE, MARTINEZ, and CALDERON were arrested in New York yesterday and today. They will be arraigned later this afternoon in Manhattan federal court. FERTIDES will be arraigned September 21, 2018, before Judge Swain.
Charts containing the names, charges, and maximum and minimum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the DEA’s New York Drug Enforcement Task Force, comprising agents and officers of the DEA, NYPD, and NYSP, and the Special Agents of the United States Attorney’s Office for the Southern District of New York. Mr. Berman also thanked the Manhattan District Attorney’s Office for its assistance in the investigation.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Hagan Scotten, Margaret Graham, Maurene Comey, and Karin Portlock are in charge of the prosecution.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
CHARGE
DEFENDANTS
MAXIMUM AND MINIMUM PENALTIES
1
Racketeering
Conspiracy
18 U.S.C. § 1962(d)
MILTON CHARDON, 25
CHRISTIAN PABON, 26
BRYAN CASTILLO, 23
GEORGE CITRONELLE, 23
JEREMY ESTEVEZ, 21
YASMIL FERTIDES, 29
Maximum (Pabon):
Life
Maximum
(other defendants):
20 years in prison
2
Murder in Aid of
Racketeering
18 U.S.C. §§ 1959(a)(1) and 2
CHRISTIAN PABON
Minimum:
Death, or Life in prison
3
Causing Death through Use of a Firearm
18 U.S.C. §§ 924(j) and 2
CHRISTIAN PABON
Maximum:
Death, or Life in prison
Minimum:
5 years in prison
4
Violent Crime in Aid of Racketeering
18 U.S.C. §§ 1959(a)(5) and 2
MILTON CHARDON
YASMIL FERTIDES
Maximum:
10 years in prison
5
Firearms Offense
18 U.S.C. §§ 924(c)(1)(A)(iii) and 2
MILTON CHARDON
YASMIL FERTIDES
Maximum:
Life in prison
Minimum:
10 years in prison
6
Violent Crime in Aid of Racketeering
18 U.S.C. §§ 1959(a)(6) and 2
GEORGE CITRONELLE
Maximum:
3 years in prison
7
Firearms Offense
18 U.S.C. §§ 924(c)(1)(A)(iii) and 2
GEORGE CITRONELLE
Maximum:
Life in prison
Minimum:
10 years in prison
8
Narcotics
Conspiracy
21 U.S.C. § 846
MILTON CHARDON
GEORGE CITRONELLE
YASMIL FERTIDES
Maximum (Fertides):
Life in prison
Minimum (Fertides):
10 years in prison
Maximum
(other defendants):
40 years in prison
Minimum
(other defendants):
5 years in prison
9
Robbery Conspiracy
18 U.S.C. § 1951
MILTON CHARDON
YASMIL FERTIDES
SAMANTHA BATISTA, 26
NOEL MARTINEZ, 23
DOMINGO TOLENTINO, 24
JUAN CALDERON, 29
Maximum:
20 years in prison
10
Robbery
18 U.S.S. §§ 1951 and 2
SAMANTHA BATISTA
NOEL MARTINEZ
DOMINGO TOLENTINO
Maximum:
20 years in prison
11
Firearms Offense
18 U.S.C. §§ 924(c)(1)(A)(iii) and 2
SAMANTHA BATISTA
NOEL MARTINEZ
DOMINGO TOLENTINO
Maximum:
Life in prison
Minimum:
10 years in prison
12
Narcotics Conspiracy
21 U.S.C. § 846
SAMANTHA BATISTA
NOEL MARTINEZ
DOMINGO TOLENTINO
Maximum:
5 years in prison
13
Pharmacy Burglary Conspiracy
18 U.S.C. § 2118(d)
MILTON CHARDON
YASMIL FERTIDES
SAMANTHA BATISTA
NOEL MARTINEZ
DOMINGO TOLENTINO
JUAN CALDERON
Maximum:
20 years in prison
14
Narcotics Conspiracy
21 U.S.C. § 846
MILTON CHARDON
YASMIL FERTIDES
SAMANTHA BATISTA
NOEL MARTINEZ
DOMINGO TOLENTINO
JUAN CALDERON
Maximum:
20 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
11 September 2018
Wirt County Man Sentenced to 12 Years in Federal Prison for Child Pornography and Firearm OffensesRead the Press Release
Defendant has a prior conviction for sexual abuse of a minor
CHARLESTON, W.Va. – A Wirt County man was sentenced to 12 years in federal prison today for a child pornography crime and a firearms offense, announced United States Attorney Mike Stuart. Dusten Shawn Cottrell, 40, of Palestine, previously pled guilty to possessing child pornography and being a prohibited person in possession of firearms. Stuart commended the investigative efforts of the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, the Parkersburg Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
“Child pornographer. Meth user. Convicted felon in possession of firearms,” said United States Attorney Mike Stuart. “West Virginia parents should sleep a little sounder tonight knowing that Cottrell has been taken off the streets and will be spending more than a decade in prison. We are working tirelessly with our law enforcement partners to put child predators behind bars.”
Cottrell admitted that on December 7, 2017, he possessed images and videos of prepubescent minors engaged in sex acts. The investigation revealed that Cottrell was using a cell-phone application, Kik, to access, download, and distribute child pornography. Cottrell further admitted to possessing over 600 images and videos of minors engaged in sex acts, and that some of those images involved sadistic conduct. Cottrell also admitted that on December 7, 2017, he was in possession of at least two firearms. Cottrell was not permitted to possess these firearms based upon a 1999 conviction in Jackson County, West Virginia, for first degree sexual abuse of a minor. Defendant was also prohibited from possessing the firearms based upon his admitted weekly use of methamphetamine.
Upon his release from prison, Cottrell will be required to serve a term of supervised release of 20 years. He will also be required to register as a sex offender.
First Assistant United States Attorney Lisa G. Johnston and Assistant United States Attorney Jennifer Rada Herrald are handled the prosecution. United States District Judge John T. Copenhaver, Jr. imposed the sentence.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Wilson Man Sentenced to 10 Years for Possession of a Firearm by a FelonRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, Senior United States District Judge Malcolm J. Howard sentenced KELLY SHADROME ANDERSON, 33, of Wilson, North Carolina to 120 months of imprisonment followed by 3 years of supervised release.
ANDERSON was charged in a single-count Indictment on June 22, 2017, with possession of a firearm as a convicted felon. On April 14, 2018, ANDERSON was found guilty by a jury.
In the early evening of September 24, 2016, Wilson Police Department was called to respond to a hostage situation at a home in Wilson, NC. Witnesses stated that a black male, later determined to be ANDERSON, ran into the home with a gun and locked himself inside with the homeowner’s niece, a four year-old child. The Wilson Police Department responded to the call and engaged in hostage negotiations with ANDERSON, who eventually released the child, and then surrendered himself. Wilson Police Department conducted a search of the home and found a firearm hidden in the cushions of the living room couch. Further investigation indicated that ANDERSON was involved in an altercation in a nearby neighborhood, where he fired a weapon and then fled on foot and arrived at the victim’s home.
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 Wilson Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the criminal investigation of this case. Assistant United States Attorney Melissa Belle Kessler handled the prosecution of this case for the United States.
West Plains Man Sentenced to 15 Years for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A West Plains, Mo., man was sentenced in federal court today for receiving and distributing thousands of images of child pornography over the internet.
Steven Edward Moffis, 31, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years and six months in federal prison without parole. The court also sentenced Moffis to a lifetime of supervised release following incarceration.
Moffis, who pleaded guilty on April 23, 2018, came to the attention of law enforcement during an investigation of individuals making child pornography files available to others on the BitTorrent peer-to-peer file sharing program. According to court documents, Moffis admitted that he had been addicted to child pornography for seventeen years. Moffis admitted to law enforcement officers that he had an uncontrollable problem with child pornography. Law enforcement located images and videos of child pornography on Moffis’s cellular phone.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the West Plains Police Department and the Southwest Missouri Cyber Crimes Task Force.
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."
Washington, D.C. Man Sentenced to 10 Years in Federal Prison for Robbing a Prince George’s County Business at GunpointRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Antonio Raymond Leach, age 45, of Washington, D.C., on September 10, 2018, to 10 years in prison, followed by five years of supervised release, for armed commercial robbery and for using, carrying, and brandishing a firearm during and in relation to a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Baltimore Field Division; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
According to his plea agreement, on April 2, 2017, Leach and two co-conspirators robbed a business in District Heights, Maryland. Leach and one co-conspirator entered the store, while the second co-conspirator drove the get-away car. After entering the store, Leach pointed the loaded gun at one victim, while the co-conspirator made the second victim open the both cash registers. The co-conspirator took cash from both registers and Leach and the co-conspirator fled in the waiting car. Prince George’s County Police officers stopped the car and located the $195 stolen from the business in the car. Near the car, officers located the 7.62-caliber semi-automatic handgun used during the robbery and the blue latex gloves worn by the co-conspirator. The gun was loaded with five rounds of ammunition in the magazine and one round in the chamber. Leach and his co-conspirators were arrested. The co-conspirators were convicted on related state charges.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended the ATF and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Gregory Bernstein and Ray D. McKenzie, who prosecuted the case.
United States Attorney announces settlement with St. Landry Parish head start nonprofit over grantsRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced today that a settlement was reached with a St. Landry Parish Head Start administrator over its use of federal grants.
According to the court documents filed in the case, Child Development Council of Acadiana Inc. (CDCAI) operated the Head Start program at 11 facilities in St. Landry Parish. In 2010, the organization constructed a central administration building in Opelousas for $1.2 million using grant money, without the approval of the U.S. Department of Health and Humans Services’ Administration for Children and Families (ACF). Because of the disputed use of the grant money, CDCAI’s contract was not renewed in 2015. Instead, it was awarded to an interim grantee, the Community Development Institute Head Start (CDI). In 2017, CDCAI began changing door locks at Head Start buildings in St. Landry Parish and demanded back rent for use of the buildings from CDI. The U.S. Attorney filed a restraining order in September of 2017 against CDCAI for CDI to gain access to the buildings again.
As part of the settlement agreement, the CDCAI agreed to offset its interest in the Head Start properties to the ACF in exchange for CDCAI’s debt owed for the unapproved use of grant funds.
“Providing early education and child development services to the community is central to the Head Start and Early Head Start programs,” Joseph stated. “The U.S. Attorney’s Office is prepared to seek legal action to ensure that the Administration for Children and Families is able to meet its mission.”
Assistant U.S. Attorney Karen J. King and the U.S. Department of Health and Human Services, Office of the General Counsel handled the case.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Two Sentenced in Bank Fraud SchemeRead the Press Release
HOUSTON – Three Houston residents have been ordered to federal prison for perpetrating a scheme to obtain two loans totaling $1.3 million, announced U.S. Attorney Ryan Patrick along with Special Agent-in-Charge Laurie L. Younger of the Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG). Hugo Lafuente, 59, pleaded guilty Aug. 29, 2016, while Rick Hajdik, 54, pleaded guilty Nov. 14, 2016.
Today, U.S. District Judge Keith Ellison, who accepted the guilty pleas, handed Lafuente a 25-month sentence, while Hajdik was ordered to serve a 20-month sentence. Each was further ordered to pay $735,758 in restitution.
“The FDIC-OIG, along with its law enforcement partners, is dedicated to pursuing those who commit schemes to defraud the nation’s federally insured financial institutions,” said Younger.
With the help of a tax preparer, Lafuente, and Hajdik devised a scheme to fraudulently obtain two loans from a local bank. The first was a Small Business Administration loan made to Lafuente for $250,000 and the second was a construction loan for $1,080,000.
The bank approved and funded both loans based on fraudulent and falsified income tax returns and false information in Lafuente’s personal financial statements. Hajdik, who was Lafuente’s loan officer at the bank, came up with the inflated and false numbers that Lafuente needed to show on his income tax returns in order to obtain the loans.
Both loans defaulted and the bank’s loss from the two loans after sale of land collateral was $735,758.
The FDIC-OIG and The Office of the Special Inspector General for the Troubled Asset Relief Program conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
Three Individuals Plead Guilty to Large-Scale Drug TraffickingRead the Press Release
Prosecution involved more than five kilograms of cocaine, 200 grams of fentanyl, and $100,000 in seized currency
LEXINGTON, Ky. – Three people have pleaded guilty, in the U.S. District Court in Lexington, for their roles in distributing cocaine and fentanyl. Shontail M. Hocker, 42, of Lexington, pleaded guilty to conspiracy to distribute five kilograms or more of cocaine and to distribution of 40 grams or more of fentanyl. David Dewayne Morris, 48, and Kim Davis, 47, both of Louisville, Kentucky, pleaded guilty to distributing 2 kilograms of cocaine.
On February 9, 2018, while they were conducting surveillance of the defendants, agents with the Drug Enforcement Administration (DEA) observed a drug transaction. With the assistance of the Kentucky State Police, agents seized 2 kilograms of cocaine from the defendants in Shelby County, Kentucky. DEA agents and Lexington Police then obtained a search warrant for the residence of Shontail Hocker in Fayette County, where they seized more than 200 grams of fentanyl, $105,880.00 in U.S. currency, and metal presses used to process large quantities of controlled substances.
“The defendants in this case were dealing in massive quantities of dangerous drugs,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Without the outstanding work of our law enforcements partners, this prosecution would not have been possible. Their efforts removed these drugs from our streets, made our communities safer, and saved lives. Prosecuting those who deal in this scourge to our community will continue to be a core priority of our Office.”
Robert M. Duncan, Jr, United States Attorney for the Eastern District of Kentucky; Darrell Christopher Evans, Special Agent in Charge, DEA Louisville; Richard Sanders, Commissioner of the Kentucky State Police, and Lawrence Weathers, Chief of Police, Lexington-Fayette County Division of Police, jointly made the announcement.
Sentencing hearings for all three defendants are scheduled for December 10, 2018 at the federal courthouse in Lexington. Hocker and Morris each face 10 years to life in prison, while Davis faces 5 years to life. The U.S. District Court will impose their sentences, after its consideration of the U.S. Sentencing Guidelines and the applicable federal statutes.
Spatara Painting Proprietor Sentenced to Probation, with Fines and Community Service, for Filing False Tax ReturnsRead the Press Release
PITTSBURGH - A resident of Mercer County, Pennsylvania, has been sentenced in federal court to two years of probation, a $5,000 fine and 500 hours of community service on his conviction of filing a false tax return, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed sentence on Daniel A. Spatara.
In connection with sentencing, the court was advised that Spatara willfully made and subscribed to a false 2012 1040 tax return in violation of Title 26, United States Code, Section 7206(1). He accepted responsibility for also filing false tax returns for years 2010, 2011 and 2013.
According to information provided during the sentencing hearing, Spatara was the sole proprietor of Spatara Painting. Spatara filed false 1040 tax returns for 2010, 2011, 2012 and 2013 in that he failed to report all of the gross receipts of Spatara painting. The total tax loss was $49,643.
Assistant United States Attorney Mary McKeen Houghton prosecuted the case on behalf of the government.
United States Attorney Brady commended the Internal Revenue Service, Criminal Investigation, for the investigation leading to the successful prosecution of Spatara.
Six Illegal Aliens Guilty in Federal Court of Social Security Number FraudRead the Press Release
Columbia, South Carolina –------- United States Attorney Sherri A. Lydon announced today that six individuals, illegally in the United States, entered pleas of guilty before District Judge Donald C. Coggins, Jr., in Spartanburg, South Carolina. The names of the Defendants are as follows:
From Honduras:
Luis Alberto Isaguirre-Cortes
Jose Santos Martinez
Noe De La Cruz Galvez-Munguia
From Guatemala:
Fredin Orlando Cordon-Gonzalez
Julio Cesar Rojas Vasquez
Josue Eduardo Maas-Aparicio
Each Defendant entered a plea of guilty to one count of using a false Social Security number in order to acquire health insurance in violation of Title 42, United States Code, Section 408. Sentencing will occur after the preparation of a Presentence Report by the United States Probation Office. Each Defendant faces a possible sentence of up to five (5) years in prison.
At the guilty plea hearing Assistant United States Attorney David C. Stephens advised the Court that in the course of a wide ranging investigation the personnel records of the Defendants’ employer were reviewed. During this review it was discovered that the six were working under false Social Security numbers and that using these numbers each had applied for and received health insurance. Stephens declined to go further in to details of the referenced investigation. Stephens further advised the Court that each of the six Defendants were cooperating with the Government concerning their employment and their use of false Social Security numbers.
USA Lydon stated that the case had been investigated by agents from the Department of Labor, Department of Transportation, and ICE-Homeland Security Investigations and she commended all of them for their hard work and close cooperation and support for each other.
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Santa Rosa County Inmate Sentenced to 8 Years in Federal Prison for Anthrax Threat to JudgeRead the Press Release
PENSACOLA, FLORIDA – Craig T. Pope, 30, was sentenced to 8 years in federal prison today, consecutive to a state sentence currently being served, after pleading guilty June 7 to mailing threatening communications and threatened use of a weapon of mass destruction. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In April and May 2017, Pope, while serving a state prison sentence for crimes out of Hillsborough County, sent two threatening letters from the Santa Rosa Correctional Institution to a Hillsborough County judge who presided over his plea and/or post conviction matters.
The first letter stated: “You have exactly 48 hours to get me back in court or someone in your courtroom will die and not only that, there will be an outbreak of anthrax in your courthouse who knows where I will send it first . . . time is ticking.”
The second letter stated: “here is a gift of Anthrax and when you receive this letter you will have exactly 4 hours before the courthouse explodes. The bomb is already in place, your security is no match to my brotherhood. Today you will understand that America will never be as powerful as my ISIS Family.” The letter contained a white powder, which triggered the Tampa Fire Rescue Hazardous Materials Response Team to respond to the courthouse and secure the evidence and potential weapon of mass destruction. Testing eventually provided a negative response for a biothreat, but all security protocols were initiated for those who could have been contaminated.
This case resulted from an investigation by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Hillsborough County Sheriff’s Office, and the Tampa Police Department. Assistant United States Attorney David L. Goldberg prosecuted the case.
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 available 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.
San Felipe Pueblo Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Jordan Sandoval, 34, an enrolled member and resident of San Felipe Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to an assault charge. Sandoval entered his guilty plea without the benefit of a plea agreement.
Sandoval was arrested in April 2018, on an indictment charging him with assaulting a woman, resulting in serious bodily injury. According to the indictment, Sandoval committed the offense on the San Felipe Pueblo in Sandoval County, N.M.
Sandoval was remanded into custody after entering his guilty plea and will remain detained pending his sentencing hearing. At sentencing, Sandoval faces a maximum statutory penalty of ten years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and the Sandoval County Sheriff’s Office. Assistant U.S. Attorney Joseph M. Spindle is prosecuting the case.
Romanian National Pleads Guilty in Multi-State ATM Card Skimming SchemeRead the Press Release
A Romanian man pleaded guilty today in U.S. District Court in Springfield, Massachusetts to conspiracy to commit bank fraud, bank fraud, and aggravated identity theft in connection with a multi-state card skimming scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Andrew E. Lelling of the District of Massachusetts, Special Agent in Charge Stephen Marks of the U.S. Secret Service (USSS) Boston Field Division, Special Agent in Charge Peter C. Fitzhugh of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) New England Division, Medford Police Chief Leo Sacco and East Meadow, Massacusetts Police Chief Jeffrey Dalessio made the announcement today.
Bogdan Viorel Rusu, 38, of Romania and formerly residing in Queens, New York, pleaded guilty to an Information that charged him with one count each of conspiracy to commit bank, bank fraud, and aggravated identity theft. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Dec. 11. Rusu was arrested on Nov. 14 2016, and initially charged by complaint in the District of New Jersey and has been in custody since.
According to the agreed-upon statement of facts in Rusu’s plea agreement, between approximately Aug. 3, 2014 until his arrest on Nov. 14, 2016, Rusu engaged in a widespread bank fraud conspiracy that targeted various banks in Massachusetts, New York, and New Jersey. As set forth below, Rusu and his co-conspirators captured payment card account information from customers as they accessed their accounts through automatic teller machines (ATMs) and then used that information to steal money from the customers’ bank accounts.
Rusu admitted that to capture the account information, he and his co-conspirators installed electronic devices (i.e., “skimming devices”) that surreptitiously recorded customers’ bank account information on the banks’ card-readers at the vestibule door, the ATM machine, or both. In addition, Rusu and his co-conspirators installed other devices (generally either pinhole cameras or keypad overlays) in order to record the keystrokes of bank customers as they entered their personal identification numbers to access their bank accounts. After enough customers accessed the ATM machine, Rusu and/or his co-conspirators removed the skimming devices. They then transferred the illegally obtained information from the skimming devices and pinhole cameras to counterfeit payment cards. Finally, they visited other ATM machines with the counterfeit cards to obtain cash from the skimmed bank accounts before the bank or the customers became aware of their illicit conduct.
Pursuant to his plea agreement, Rusu admitted that he and his co-conspirators caused losses of $364,419 in Massachusetts and $75,715 in New York (totaling $440,134 from 531 individual accounts), in addition to losses in New Jersey of $428,581.
The case was investigated by USSS, HSI, the Medford Police Department and the East Longmeadow Police Department. The case is being prosecuted by Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Steven H. Breslow of the Springfield Branch Office.
Romanian National Pleads Guilty in Multi-State ATM Card Skimming SchemeRead the Press Release
BOSTON - A Romanian national pleaded guilty today in federal court in Springfield in connection with a multi-state ATM card skimming scheme.
Bogdan Viorel Rusu, 38, a Romanian national formerly residing in Queens, N.Y., pleaded guilty to an Information that charged him with one count each of conspiracy to commit bank fraud, bank fraud, and aggravated identity theft. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Dec. 11, 2018. Rusu was arrested on Nov. 14, 2016, and initially charged by complaint in the District of New Jersey and has been in custody since.
From approximately Aug. 3, 2014, until his arrest on Nov. 14, 2016, Rusu engaged in a widespread bank fraud conspiracy that targeted various banks in Massachusetts, New York, and New Jersey. Rusu and his co-conspirators captured payment card account information from customers as they accessed their accounts through ATMs and then used that information to steal money from the customers’ bank accounts.
To capture the account information, Rusu and/or his co-conspirators installed electronic devices, i.e., skimming devices, which surreptitiously recorded customers’ bank account information on the banks’ card-readers at the vestibule door, the ATM machine, or both. In addition, Rusu and/or his co-conspirators installed other devices (generally either pinhole cameras or keypad overlays) in order to record the keystrokes of bank customers as they entered their personal identification numbers to access their bank accounts. After enough customers accessed the ATM machine, Rusu and/or his co-conspirators removed the skimming devices. They then transferred the illegally obtained information from the skimming devices and pinhole cameras to counterfeit payment cards. Finally, they visited other ATM machines with the counterfeit cards to obtain cash from the skimmed bank accounts before the bank or the customers became aware of their illicit conduct.
As a result of the scheme, $364,419 was lost in Massachusetts and $75,715 in New York (totaling $440,134 from 531 individual accounts), and another $428,581 was stolen in New Jersey.
The charges of bank fraud and bank fraud conspiracy each provide for a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of up to $1 million. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, to be served consecutive to any other sentence imposed, one year of supervised release, and a fine of up to $250,000, or twice the gross gain or loss and restitution.
United States Attorney Andrew E. Lelling; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Stephen Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; East Longmeadow Police Chief Jeffrey Dalessio; and Medford Police Chief Leo Sacco made the announcement today. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office and Trial Attorney Marianne Shelvey of the Justice Department’s Organized Crime and Gang Section are prosecuting the case.
Ricardo Viera and Luis Raul Hernandez-Ugando Sentenced to Serve Time in Federal Prison for Wire Fraud and Aggravated Identity TheftRead the Press Release
GREENEVILLE, Tenn. – On September 11, 2018, two co-conspirators in a wire fraud and aggravated identity theft conspiracy involving credit card skimmers were sentenced by the Honorable Leon Jordan, U.S. District Judge, to serve time in federal prison. Ricardo Viera, 49, of Homestead, Florida, was sentenced, to serve a total of 40 months. Luis Raul Hernandez-Ugando, 37, of Coral Gables, Florida, was sentenced to serve a total of 48 months. Upon their release from prison, each will be supervised by U.S. Probation for three years. Additionally, both Viera and Hernandez-Ugando were ordered to pay restitution in the amount of $1943.76.
In May 2018, Viera and Hernandez-Ugando each pleaded guilty to three counts of an August 2017 federal indictment. Details of the scheme are outlined in the plea agreements on file with the U.S. District Court. According to these plea agreements, Viera and Hernandez-Ugando, installed “skimmers” on gas pumps at various gas stations in northeast Tennessee to steal hundreds of credit card and debit card account numbers. They then re-encoded that stolen account information on gift cards, effectively changing the gift cards into stolen credit cards. After re-encoding the gift cards with the stolen credit card and debit card account information, Viera and Hernandez-Ugando used the newly encoded cards to make purchases at various retail outlets in Greeneville, Johnson City, Kingsport, Morristown, Elizabethton, and Rogersville, Tennessee and elsewhere. Viera and Ugando also admitted to engaging in these same schemes in other states throughout the country, including Virginia, Ohio, Nebraska, and Minnesota.
On July 10, 2017, police approached Viera and Hernandez-Ugando while they were swiping unlawfully re-encoded credit cards at a Walmart in Kingsport, Tennessee. They arrested Viera, who was in possession of numerous re-encoded credit cards. Hernandez-Ugando was also arrested after a pursuit.
This investigation was conducted by the U.S. Secret Service and Kingsport Police Department. Assistant U.S. Attorney TJ Harker represented the United States in court proceedings.
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