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30 August 2018
Jefferson Man Sentenced for Possession of a Firearm by a Convicted FelonRead the Press Release
U.S. Attorney Duane A. Evans announced that TREVOIR JACKSON, age 38, a resident of Jefferson, Louisiana, was sentenced today to one count of possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
U.S. District Judge Eldon E. Fallon sentenced JACKSON to a term of imprisonment of 84 months, a term of supervised release of three years, and a $100 mandatory special assessment.
According to court documents, on April 20, 2016, the Jefferson Parish Sheriff’s Office responded to the scene of a shooting. As officers processed the scene, they observed a blood trail ending on the side of a raised house. The officers looked under the house and saw a loaded semi-automatic handgun. DNA analysis later determined that the blood on the firearm was JACKSON’S.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney J. Ryan McLaren was in charge of the prosecution.
Jefferson County man admits to bank robberyRead the Press Release
MARTINSBURG, WEST VIRGINIA –A Charles Town, West Virginia man has admitted to robbing a Charles Town bank, United States Attorney Bill Powell announced.
Ryan Stepanian, age 26, pled guilty to one count of “Bank Robbery.” Stepanian admitted to taking $14,890 from the City National Bank of Charles Town, West Virginia, on January 22, 2018.
Stepanian faces up to 20 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Anna Z. Krasinski is prosecuting the cases on behalf of the government. The Federal Bureau of Investigation, the Ranson Police Department, and the Charles Town Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
International Arms Exporter Sentenced to PrisonRead the Press Release
DENVER – Katherine O'Neal, age 43, a former member of the United States Army stationed at Fort Carson, was sentenced today by U.S. District Court Judge William J. Martinez to serve 36 months in federal prison, followed by 3 years on supervised release for smuggling goods from the United States, specifically exporting firearms to the Dominican Republic. The U.S. Attorney’s Office was joined by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On September 1, 2015 a federal grand jury indicted O’Neal for numerous firearm and illegal financing type charges. A superseding indictment was handed down on November 20, 2016, with a second superseding indictment returned on December 5, 2017. A jury found O’Neal guilty on March 6, 2018. O'Neal was acquitted on other counts alleging false information on firearm purchase forms and money laundering.
At trial, before United States District Court Judge William J. Martinez, the Government introduced evidence showing that O'Neal made multiple trips to the Dominican Republic shortly after purchasing firearms in Denver and Colorado Springs, including one trip where she flew from Denver to the Dominican Republic with 11 firearms in her luggage in early June 2015. She declared the firearms to the airline, but did not obtain the required State Department export license. Her bags had been misdirected by the airline and were not on her flight. When the bags arrived later, Dominican Republic officials noticed the handguns during an examination of the baggage. When she arrived at the airport to claim her luggage, she was arrested. The Dominican Republic has a ban on all imported firearms. A Denver jury found her guilty of violating 18 U.S.C. § 554(a), which prohibits smuggling goods from the United States.
“Illegally exporting firearms comes with stiff consequences,” said U.S. Attorney Bob Troyer. “Her consequence was 3 years in federal prison.”
“This is a prime example of how greed and an opportunity to make a quick profit motivate some people to criminal actions,” said Steven Cagen, Special Agent in Charge of HSI Denver. “With 67 offices located in 50 countries, HSI is especially well-equipped to investigate criminal cases around the world.”
“This case was a coordinated effort to put a firearms trafficker behind bars,” ATF Denver Special Agent in Charge Debbie Livingston said. “She is very deserving of this sentence.”
The case was investigated by the U.S. Immigration and Customs Enforcement's Homeland Security Investigations and the Bureau of Alcohol, Tobacco and Firearms, as well as the Dominican Republic, where charges are pending her extradition to that country.
Assistant United States Attorneys Robert Brown and Kurt Bohn are prosecuting this matter for the United States.
Illegal Alien Sentenced to Prison for Illegally Reentering the United States Following DeportationRead the Press Release
A Guatemalan man who illegally returned to the United States after being deported was sentenced today to more than three months in federal prison.
Gerardo Lopez-Mendez, age 32, a citizen of Guatemala illegally present in the United States and residing in Cedar Falls, Iowa, received the prison term after a July 3, 2018, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Lopez-Mendez admitted he had previously been deported from the United States in 2014 and illegally reentered the United States without the permission of the United States government. Lopez-Mendez was found by immigration agents in Cedar Falls in May 2018 following a traffic stop of a vehicle containing six illegal aliens.
Lopez-Mendez was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Lopez-Mendez was sentenced to 98 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Lopez-Mendez is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2028-LRR. Follow us on Twitter @USAO_NDIA.
Human Trafficking Awareness Event St. Croix, USVIRead the Press Release
What: The U.S. Department of Homeland Security, in partnership with the Office of the U.S. Attorney for the Virgin Islands, will be hosting a one-day human trafficking training. Topics will include:
o Human Trafficking Overview
o Encountering Victims of Crime
o Blue Campaign
Trainers will be: Scott Santoro, FLETC Sr. Training Advisor & Crystal Gregory, HSI Forensic Interview Specialist
When: Friday, September 7, 2018, 9:00am to 1:00pm
Where: Virgin Islands Port Authority Conference Room, Henry Rohlsen International Airport
Who should attend: Open to anyone who wants to learn more about Human Trafficking and the DHS Blue Campaign.
RSVP: Antoinette James, DOJ, Office of the U.S. Attorney for the Virgin Islands, [email protected]
Harahan Man Charged with Damaging Government PropertyRead the Press Release
U.S. Attorney Duane A. Evans announced that CHAZ TYLER, age 32, was charged on August 29, 2018, in a one-count bill of information with misdemeanor damage to government property, in violation of Title 18, United States Code, Section 1361.
According to the bill of information, TYLER damaged property belonging to the United States Custom House, a National Historic Landmark owned and maintained by the General Services Administration. TYLER faces a maximum term of imprisonment of 1 year, a maximum fine of $100,000, a maximum term of supervised release of one year, and a mandatory $25 special assessment.
U.S. Attorney Evans reiterated that a bill of information is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Federal Protective Service in investigating this matter. Assistant United States Attorney J. Ryan McLaren is in charge of the prosecution.
Guatemalan Man Sentenced to Prison for Illegally Reentering the United StatesRead the Press Release
A Guatemalan man who illegally returned to the United States after being deported was sentenced today to more than two months in federal prison.
Diego Eduardo Brito-Garcia, age 24, a citizen of Guatemala illegally present in the United States and residing in Dubuque, Iowa, received the prison term after a July 13, 2018, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Brito-Garcia admitted he had previously been deported from the United States in 2014 and illegally reentered the United States without the permission of the United States government in 2015. Brito-Garcia was found by immigration agents at the Dubuque County Jail in May 2018 following Brito-Garcia’s arrest for domestic abuse assault causing bodily injury. That matter remains pending. Brito-Garcia also used a fraudulent Social Security card and a fraudulent permanent resident card, also known as a “green card,” when he completed an employment form on March 9, 2016, at a business in Dubuque.
Brito-Garcia was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Brito-Garcia was sentenced to 67 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Brito-Garcia is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1022-LRR.
Follow us on Twitter @USAO_NDIA.
Greenville Woman Guilty of Fraud Involving ImmigrationRead the Press Release
Columbia, South Carolina –------- United States Attorney Sherri A. Lydon announced today that Latoya Sanders, age 30, of Greenville, South Carolina, entered a plea of guilty as charged in Greenville, South Carolina, before United States District Judge A. Marvin Quattlebaum, Jr. Sanders pled guilty to two counts of Wire Fraud, each of which count carries a penalty of up to 20 years in prison, and four counts of Aiding and Abetting the Impersonation of a Federal Official, each of which count carries a penalty of up to three years in prison. Sentencing will occur after the preparation of a Presentence Report by the United States Probation Office.
The case was investigated by the Greenville City Police Department and the Department of Homeland Security. Assistant United States Attorney David C. Stephens prosecuted the case. United States Attorney Lydon stated that there is a co-defendant named in the Indictment whose case has not yet been resolved and therefore no statements will be made regarding the facts of the case.
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Greenbrier County Man Sentenced on Drug ChargeRead the Press Release
BECKLEY, W.Va. – United States Attorney Mike Stuart announced that a Greenbrier County man was sentenced yesterday to 18 months in federal prison for distributing oxymorphone. Cody Reed Godfrey, 26, pled guilty in May to distributing oxymorphone pills to an informant in Alderson, where Godfrey was residing at the time. The case was investigated by the Greenbrier Valley Drug and Violent Crime Task Force.
“More than 1,000 died in West Virginia last year from overdose,” said United States Attorney Mike Stuart. “The illicit sale of prescription pills is still a major concern in the majority of our southern counties because those pills can cause great harm and even death. My team will prosecute pill dealers like Godfrey every day of the week and twice on Sundays until we shut down pill trafficking.”
Godfrey admitted that he distributed, or possessed with the intent to distribute, 49 ½ oxymorphone pills and a small quantity of methamphetamine between June 9 and June 13, 2017.
Assistant United States Attorney John File prosecuted the case. United States District Judge Irene C. Berger imposed the sentence.
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Four Individuals Charged in Widespread Scheme to Defraud Medicare and Other Health Insurance Providers Through Fraudulent Medical Corporations and False Billing Resulting in Tens of Millions of Dollars in LossesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney, Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Scott J. Lampert, Special Agent in Charge of the New York Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), Thomas P. DiNapoli, the New York State Comptroller, and Carl E. DuBolis, Orange County Sheriff, announced the unsealing today of an indictment charging JAMES SPINA, JEFFREY SPINA, ANDREA GROSSMAN, and KIMBERLY SPINA with participating in a widespread health care fraud scheme through their fraudulent operation of Dolson Avenue Medical (“DAM” or the “Practice”), a multi-disciplinary medical clinic located in Middletown, New York. The defendants were all arrested today, and presented in federal district court in White Plains. This case has been assigned to U.S. District Court Judge Kenneth M. Karas.
Berman also today announced the guilty plea of CHARLES BAGLEY, a licensed medical doctor formerly affiliated with DAM and other businesses, to conspiracy to commit health care fraud, charged in a separate Information unsealed today.
U.S. Attorney Geoffrey S. Berman said: “As alleged, these four defendants purported to run a legitimate medical clinic that provides care and rehabilitation to patients. Instead, the defendants allegedly put aside their medical and fiduciary obligations for greed, attempting to bilk insurance companies and federally-funded Medicare out of more than $80 million. Thanks to the coordinated efforts of federal and state investigative agencies, the defendants will have to answer for their alleged crimes.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Patients go to a doctor hoping they will help them get better. The subjects in this investigation allegedly performed treatments patients didn’t need, double billed for procedures and up-coded. The FBI New York agents and our law enforcement partners uncovered tens of millions of dollars in losses. This type of fraud eventually ends up costing all patients more money when they seek medical attention. We will continue to work tirelessly to stop health care fraudsters hoping to make millions while the patients they should be treating continue to suffer.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “This indictment should serve as a warning to any health care provider that dares to put personal profit ahead of proper patient care. HHS-OIG, along with our law enforcement partners, will continue to aggressively pursue those who seek to undermine the federally funded health care programs intended for our most vulnerable Americans.”
New York State Comptroller Thomas P. DiNapoli said: “The Spinas and their associates allegedly swindled tens of millions of dollars by fraudulently billing health insurers including the NYS Health Insurance Program and the State Insurance Fund. An alleged theft of this magnitude is appalling when so many hard-working people experience rising health care costs. Now, their alleged scams have been exposed, thanks to my partnership with U.S. Attorney Berman, the FBI, the U.S. Department of Health and Human Services Inspector General and the Orange County Sheriff's Office.”
Orange County Sheriff Carl E. DuBois said: "The Orange County Sheriff’s Office is dedicated to the collaboration with its federal partners in combating crime in the region. We are committed to our partnership with the FBI in the relentless pursuit of justice."
According to the allegations in the Indictment unsealed today in White Plains federal court:[1]
From 2011 through September 2017, DAM was a registered medical service corporation in New York State that purported to provide a variety of pain management and rehabilitation services including physical medicine and rehabilitation, chiropractic services, physical therapy, diagnostic testing, and acupuncture. DAM primarily provided treatment services from its clinic located at 201 Dolson Avenue, Middletown, New York.
In addition to DAM, at least eight other corporations, including four other medical corporations, billed Medicare and other health insurance providers (the “Insurance Providers”) from 201 Dolson Avenue (the “Associated Businesses”). On paper, DAM and the Associated Businesses appeared to be separate entities owned by multiple different qualified individuals. But in reality, JAMES SPINA and JEFFREY SPINA, who are doctors of chiropractic - not medical doctors - were the true owners and operators of the different medical service corporations.
According to the indictment, JAMES SPINA and JEFFREY SPINA, together with GROSSMAN, made all corporate decisions for DAM and the Associated Businesses. In particular, JAMES SPINA and JEFFREY SPINA ran the day-to-day operations of the businesses. They controlled payroll, the hiring and firing of employees, corporate expenses, like employee compensation and rent, and billing to Insurance Providers. Further, JAMES SPINA and JEFFREY SPINA were the financial beneficiaries of DAM and its Associated Businesses.
JAMES SPINA and JEFFREY SPINA, however, went to great lengths to conceal their control and ownership of DAM and the Associated Businesses. In particular, JAMES SPINA and JEFFREY SPINA recruited medical doctors and other professionals to serve as the nominee owners of DAM and the Associated Businesses. JAMES SPINA and JEFFREY SPINA further concealed their ownership of DAM and the Associated Businesses by transferring revenues of these companies into other companies they owned. To further disguise these transfers, JAMES SPINA and JEFFREY SPINA drafted fake lease and marketing agreements between DAM and the Associated Businesses and purported real estate and marketing companies they owned and referred to the payments as “rent” or “marketing fees.” The defendants also used phony and non-existent addresses for the corporations so that it would appear that DAM and the Associated Businesses were operating out of separate locations.
As alleged, in operating the multiple fraudulent businesses, JAMES SPINA and JEFFREY SPINA, routinely showed little, if any, regard for which medical services or treatments were medically necessary, or even whether the services were actually provided to patients, and instead operated DAM and billed Insurance Providers to maximize DAM’s reimbursements and ultimately, their own profits. In particular, JAMES SPINA and JEFFREY SPINA, with assistance from GROSSMAN, the bookkeeper for DAM and its Associated Businesses, and KIMBERLY SPINA, an administrator at the Practice: (a) submitted and caused to be submitted claims to Insurance Providers for medically unnecessary services and procedures; (b) submitted and caused to be submitted claims to Insurance Providers for medical services that were not rendered; (c) double billed, i.e., submitted and caused to be submitted multiple claims for the same service to two different Insurance Providers; (d) altered and fabricated medical records; and (e) obstructed and impeded audits by Medicare and other Insurance Providers to conceal their fraud.
As a consequence of the above-described scheme, the majority of the claims submitted by DAM and the Associated Businesses to Medicare and other Insurance Providers were false and fraudulent. The submitted claims during the relevant time period totaled more than $80,000,000, resulting in losses of tens of millions of dollars.
As alleged in a separate Information filed today in White Plains federal court:
CHARLES BAGLEY, a licensed medical doctor affiliated with DAM and the Associated
Businesses, participated in the health care fraud scheme, whereby BAGLEY, a licensed medical doctor, agreed with others to submit, and cause to be submitted, false claims to Medicare and other health care benefit programs to obtain reimbursement to which he and his co-conspirators were not entitled.
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BAGLEY, 69, of Great Neck, New York, pled guilty today to one count of conspiracy to commit health care fraud, which carries a maximum sentence of 10 years in prison. The defendant will be sentenced at a future date. The case is assigned to United States District Judge Nelson S. Román.
JAMES SPINA, 59, of Middletown, New York, JEFFREY SPINA, 56, of Middletown, New York, ANDREA GROSSMAN, 59, of Loch Sheldrake, New York, and KIMBERLY SPINA, 54, of Woodbourne, New York, are each charged with one count of conspiring to commit health care fraud and one count of health care fraud, each of which carries a maximum sentence of 10 years in prison. In addition, JAMES SPINA and JEFFREY SPINA are charged with one count of obstructing and impeding a federal audit, with carries a maximum sentence of five years in prison.
The statutory maximum sentence is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge
Manhattan U.S. Attorney Geoffrey S. Berman praised the outstanding investigative work of the FBI, HHS-OIG, the New York State Office of the State Comptroller, and the Orange County Sheriff’s Office. He also thanked the Orange County District Attorney’s Office, the Sullivan County District Attorney’s Office, the National Insurance Crime Bureau, Liberty Mutual Insurance, and USAA Insurance for their assistance.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Kathryn Martin and Emily Deininger are in charge of the prosecution.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former ride operator at Cleveland children's park indicted for child exploitationRead the Press Release
A Cleveland man who formerly worked as a ride operator at Memphis Kiddie Park was indicted for filming numerous images and videos of an underage girl engaged in sexually explicit conduct.
Miguel L. Wheeler, 33, was indicted on one count of sexual exploitation of a minor and one count of possessing visual depictions of minors engaged in sexually explicit conduct.
Wheeler produced numerous images of a minor engaged in sexually explicit conduct between Feb. 13, and July 25, 2018. He also possessed a Samsung Galaxy Note 8 cell phone with images of child pornography on July 25, 2018, 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 Carol M. Skutnik. The case was investigated by Special Investigator David Frattare, Ohio Internet Crimes Against Children Task Force, with assistance from Homeland Security Investigations.
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 Reading Mayor Vaughn Spencer Convicted of Bribery and Wire FraudRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that former Reading, PA Mayor Vaughn Spencer, 71, of Reading, PA was found guilty today by a jury of one count of conspiracy to commit federal program bribery and honest services wire fraud, nine counts of bribery, and one count of honest services wire fraud.
The defendant was the former Mayor of Reading, Pennsylvania from January 2012 until January 2016. The charges primarily stem from the contracting process in the City of Reading and the defendant’s bid for re-election to a second term. In order to maximize campaign contributions for the Democratic primary in May 2015, the defendant steered engineering contracts to companies that had contributed to him in the past, and promised engineering contracts to companies who agreed to contribute to him in the future. In a further effort to maximize campaign contributions, the defendant offered a bribe to the Reading City Council president, Francisco Acosta, by agreeing to give Acosta’s wife, Reading School District President Rebecca Acosta, a campaign contribution for her district justice race, in exchange for the Acostas’ efforts to secure the repeal of the local campaign finance limits ordinance, so that Spencer could retain contributions he already had received in excess of the limit.
“Elected officials are entrusted to act in the best interests of their residents and not to use their office for their own personal gain,” stated U.S. Attorney McSwain. “Former Mayor Spencer abdicated those duties and responsibilities when he bribed other local officials in order to collect additional political contributions for his re-election campaign. If public officials do not play by the rules, then no one will. We are thankful that the jury reached a fair and just verdict.”
“While Vaughn Spencer was only a one-term mayor, he's done lasting damage to the city of Reading by compromising the public trust,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “Putting his own interests above those of the people he was elected to serve, he repeatedly engineered quid pro quos meant to pad his campaign coffers. The jury's swift verdict is a testament to the strength of the government's case. The FBI is committed to investigating public corruption and holding crooked officials accountable.”
“Today’s verdict underscores our commitment to work in a collaborative effort to promote honest and ethical government at all levels and to prosecute those who violate the public’s trust,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco.
“This case is a great example of hard work and cooperation between state, federal, and local agencies,” said Major Douglas Burig, Director of the Bureau of Criminal Investigation with the Pennsylvania State Police. “Citizens deserve honest work by the public officials that represent them and we thank everyone involved for ensuring justice has been served.”
The charge of bribery concerning programs receiving federal funds carries a maximum sentence of 10 years in prison and a $250,000 fine; the charge of honest services wire fraud carries a maximum sentence of 20 years in prison and a $250,000 fine; and the charge of conspiracy carries a maximum sentence of 5 years in prison and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service - Criminal Investigation and Pennsylvania State Police. The case is being prosecuted by Assistant United States Attorneys Michelle Morgan and Anthony Wzorek.
Former New Mexico State Taxation and Revenue Department employee sentenced to 46 months of Imprisonment for federal extortion convictionRead the Press Release
ALBUQUERQUE – U.S. District Judge Martha Vazquez sentenced Larry Mendoza, a former Revenue Agent of the New Mexico Taxation and Revenue Department, to 46 months of imprisonment for his conviction on Hobbs Act extortion charges in federal court today in Santa Fe, N.M. Mendoza will be on supervised release for three years after completing his prison sentence. Judge Vazquez also ordered Mendoza to pay $43,380 in restitution.
In announcing Mendoza’s sentence, U.S. Attorney John C. Anderson said, “Public employees violate a sacred trust when they use the instruments of government for self-enrichment, and this Office will vigorously pursue and prosecute such abuses.”
“The hard-working people of New Mexico deserve and expect honest public servants who will make sure every tax dollar goes toward making this state a great place to live,” said Special Agent in Charge James C. Langenberg of the FBI’s Albuquerque Division. “While most government employees perform their duties without reproach, the few who seek only to line their own pockets undermine the public’s confidence in our democracy. The FBI hopes this case sends a strong message that civil servants who victimize the people who pay their salaries will be held accountable.”
Mendoza, 45, of Santa Fe, pled guilty on Nov. 17, 2017, to a three-count felony information charging him with Hobbs Act extortion under color of official right. The felony information charged Mendoza abusing his position as a state Revenue Agent between Feb. 2017 and May 2017, to extort $2,500 from a business owner in return for reducing the business owner’s tax liability.
According to court records, the New Mexico State Taxation and Revenue Department employed Mendoza from 2007 through 2017. Beginning in Oct. 2013, Mendoza began working as a Revenue Agent with responsibilities that included collecting outstanding taxes owed by New Mexico business owners. In Feb. 2017, Mendoza approached a business owner with a proposal that the business owner pay him $500 a month in exchange for Mendoza lowering the business owner’s tax obligation to the State of New Mexico.
After the business owner gave Mendoza $500 in Feb. 2017 and another additional $500 in March 2017, Mendoza logged onto his work computer on May 11, 2017 and reduced the business owner’s tax liability to the State of New Mexico by $8,000. On that same day (May 11, 2017), Mendoza solicited another $1,500 from the business owner in exchange for reducing his tax obligation. On May 24, 2017, the business owner gave $1,500 to Mendoza in exchange for Mendoza’s reduction of the business owner’s tax obligation to the State of New Mexico.
In entering his guilty plea, Mendoza admitted that the money he solicited and received from the business owner was for his personal use and benefit, and that he was not entitled to that money. Mendoza also admitted that he engaged in a similar pattern of criminal conduct with other business owners and that his criminal conduct was responsible for losses in excess of $40,000.
The New Mexico State Taxation and Revenue Department placed Mendoza on administrative leave on May 24, 2017, and his employment was terminated shortly thereafter.
The FBI offices in Albuquerque and Santa Fe investigated the case, which was prosecuted by Assistant U.S. Attorney Holland S. Kastrin.
Former NASCAR Driver Convicted of Attempted Enticement of A MinorRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury today found Richard H. Crawford, Jr. (60) guilty of attempted enticement of a minor to engage in sexual activity. Crawford faces a minimum mandatory penalty of 10 years, up to life, in federal prison. His sentencing hearing is scheduled for November 26, 2018.
Crawford had been indicted on March 30, 2018.
According to the evidence presented at trial, from February 10 to February 28, 2018, Crawford engaged in email and text communications, with a person he believed to be the father of a 12-year-old girl, about the possibility of engaging the child in sexual activity. Crawford agreed to pay between $50 and $75 to engage the girl in oral sex and intercourse. Crawford also indicated that he wanted the child to be nude or wearing something with “easy access” at the time of the meeting.
On February 28, 2018, when Crawford arrived at the agreed location to have sex with the girl, he was arrested by federal agents. During a search of Crawford, agents found that he was carrying $80 and had a condom in his pants pocket. The agents also searched Crawford’s truck, finding an emergency contraceptive pill, massage oil, a phallic device, a sexual performance enhancement pill, adult pornography, a DVD player, and condoms. In addition, the agents found Crawford’s cellphone, which was searched. The cellphone contained the emails and text messages between Crawford and the undercover officer acting as the father of a 12-year-old child.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
Former Local Bank Manager Pleads Guilty to EmbezzlementRead the Press Release
Memphis, TN – A local man pleaded guilty to conspiracy and embezzlement, while being employed as a branch manager at Tri-State Bank ("Tri-State") in Memphis. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the guilty plea today.
According to the charging instrument, from calendar years 2015 to 2016, Michael B. Gaines, branch manager of Tri-State, developed a scheme to activate many dormant accounts and withdraw funds from said accounts with the help of another employee. Gaines and the employee used their Tri-State computer and user I.D. to activate and enter the accounts to fraudulently withdraw funds. He gave some of the proceeds to another employee and deposited cash into his personal bank account. During the time of the conspiracy and embezzlement, Tri-State suffered a loss of over $214,000.
U.S. Attorney D. Michael Dunavant said, "The financial fraud and embezzlement committed by the defendant in this case is disturbing and far-reaching. The abuse of his position of trust and authority as a bank manager for his own personal gain had a significant negative impact on the employees and customers of Tri-State Bank. The U.S. Attorney’s Office places a high priority on protecting the security, deposits and assets of financial institutions, and this conviction demonstrates that commitment."
Sentencing is set for December 6, 2018, before U.S. District Court Judge John T. Fowlkes. Gaines pleaded guilty to one count of conspiracy and another count of embezzlement. The maximum penalty for conspiracy is 5 years imprisonment and a $250,000 fine and for embezzlement, 30 years imprisonment and a $1,000,000 fine.
This case was investigated by the United States Secret Service.
Assistant U.S. Attorney Damon Keith Griffin is prosecuting the case on the government’s behalf.
Former Hamtramck, Michigan, Police Officer Indicted for Excessive Use of Force, Obstruction of Justice, and Firearms OffensesRead the Press Release
The Department of Justice today announced that a federal grand jury sitting in the U.S. District Court for the Eastern District of Michigan returned a six-count indictment charging former Hamtramck, Michigan, police officer Ryan McInerney, 42, with civil rights violations, obstruction of justice, and firearms offenses in connection with two civilian arrests on July 22, 2014. McInerney is charged with violating two civilians’ civil rights when he assaulted them with a pistol without justification during separate arrests on the same night. The indictment further charges McInerney with two counts of using a firearm during and in relation to the civil rights offenses, as well as with writing false reports to cover up his excessive uses of force. As a result of the assaults, one of the civilians suffered broken facial bones and lacerations requiring stitches, and the other civilian suffered broken teeth, among other injuries.
The civil rights charges carry a statutory maximum sentence of 10 years in prison for each offense. The obstruction charges carry a statutory maximum sentence of 20 years in prison for each offense. The firearms charges carry a mandatory minimum, consecutive sentence of five to seven years in prison for each offense.
This case is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Frances Lee Carlson of the Eastern District of Michigan and Trial Attorney Risa Berkower of the Justice Department’s Civil Rights Division.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendants are presumed innocent unless and until proven guilty.
Former Georgia medical examiner sentenced for opioid conspiracyRead the Press Release
ATLANTA – Dr. Joseph L. Burton, a former county and state medical examiner and forensic pathologist, has been sentenced to federal prison after pleading guilty to conspiring to illegally distribute opioid painkillers. Dr. Burton was indicted along with seven other individuals in February 2018. Four of Dr. Burton’s co-defendants have already been sentenced, and two more are awaiting sentencing after pleading guilty to similar charges.
“As a medical professional, Dr. Burton violated both his legal and ethical responsibilities when he knowingly wrote hundreds of illegal opioid prescriptions in exchange for sexual favors,” said U.S. Attorney Byung J. “BJay” Pak. “We will continue to work closely with our federal, state, and local law enforcement partners to hold those accountable who unlawfully distribute opioids in our community.”
“Addressing the country’s prescription opioid epidemic continues to be one of DEA’s top priorities,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “Dr. Burton prescribed powerful opiate-based pills outside the normal course of professional practice in exchange for sexual favors. Correspondingly, DEA, its law enforcement partners and the U.S. Attorney’s Office used every available resource to ensure he was brought to justice for his egregious prescribing practices. He will now spend well-deserved time in prison.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: Dr. Burton, a licensed physician, operated as a consulting pathologist to determine the medical causes of diseases and death. Federal agents with the DEA began investigating Dr. Burton after agents with the Georgia Drug & Narcotics Agency and the Georgia Department of Public Health visited him in early 2017 and discovered that he was prescribing painkillers to a large number of patients without operating a medical clinic or regularly seeing patients. Over a roughly two-year period beginning in July 2015, Burton wrote over 1,500 prescriptions for controlled substances – including over 1,100 prescriptions for opioid painkillers such as oxycodone, hydrocodone, and methadone – irrespective of any legitimate medical purpose and outside the normal course of professional practice. These illegitimate prescriptions amounted to over 108,000 individual doses of opioids, including over 66,000 30 mg oxycodone pills. Burton wrote the bulk of these prescriptions to women in exchange for sexual favors and romantic affection. With his knowledge, many of the recipients of these prescriptions, in turn, sold or bartered the prescriptions. The approximate street value of the oxycodone pills that Burton prescribed exceeds $2 million.
Dr. Burton prescribed opioids to individuals without: diagnosing legitimate medical conditions, conducting medical exams, reviewing medical records, taking precautions for proper usage or drug screening, or, on occasion, ever meeting the recipients. Several of Burton’s co-defendants, as well as other individuals who were not federally indicted, each engaged in a sexual relationship with Dr. Burton in exchange for prescriptions in their names, as well as the names of others. These women would fill their prescriptions and sell the pills, and then obtain more prescriptions from Burton for other people, who paid them for getting the prescriptions. Dr. Burton also supplied the co-defendants with blank prescriptions and instructed them on how to fill them out.
Joseph Lawson Burton, 73, of Milton, Georgia, was sentenced to eight years in federal prison, to be followed by three years of supervised release on August 29, 2018. Burton pleaded guilty on May 22, 2018 to conspiracy to unlawfully distribute and dispense controlled substances outside of the normal course of professional practice and without a legitimate medical purpose.
The following co-defendants have also pleaded guilty or been sentenced:
●Jennifer Hunter, 29, of Acworth, Georgia, pleaded guilty to conspiracy to unlawfully distribute and dispense controlled substances on May 2, 2018. Hunter’s sentencing is scheduled for September 11, 2018.
●Tiffany Willis, 26, of Cartersville, Georgia, was sentenced on August 15, 2018, to four years, seven months in prison, to be followed by three years of supervised release. She pleaded guilty to conspiracy to unlawfully distribute and dispense controlled substances on May 2, 2018.
●Michelle Danner, 45, of Acworth, Georgia, was sentenced on August 9, 2018 to five years, 10 months in prison, to be followed by three years of supervised release. She pleaded guilty to conspiracy to unlawfully distribute and dispense controlled substances on May 15, 2018.
●Jerry Stephens, Jr., 30, of Cartersville, Georgia, was sentenced on August 28, 2018 to four years in federal prison, to be followed by three years of supervised release. He pleaded guilty to one count of conspiracy to unlawfully distribute and dispense controlled substances and one count of distribution and dispensation of a controlled substance on May 8, 2018.
●Rodney Kennedy, 63, of Cartersville, Georgia was sentenced on August 9, 2018 to two years, nine months in prison, to be followed by three years of supervised release. He pleaded guilty to conspiracy to unlawfully distribute and dispense controlled substances on May 10, 2018.
This case is being investigated by the DEA. The case is part of a coordinated effort with the Acworth Police Department, Barrow County Sheriff’s Office, Bartow County District Attorney’s Office, Bartow County Sheriff’s Office, Cartersville Police Department, Cherokee County Sheriff’s Office, Cherokee County District Attorney’s Office, Clayton County Police Department, Cobb County Sheriff’s Office, Cobb County District Attorney’s Office, Cobb County Police Department, Fayette County Sheriff’s Office, Floyd County District Attorney’s Office, Floyd County Sheriff’s Office, Georgia Department of Community Supervision, Georgia Composite Medical Board, Georgia Drugs and Narcotics Agency, Gwinnett County Sheriff’s Office, Hall County Sheriff’s Office, Jonesboro Police Department, Oakwood Police Department, Paulding County Sheriff’s Office, and the Rome Police Department.
Assistant U.S. Attorneys John T. DeGenova and C. Brock Brockington, Deputy Chief of the Narcotics & Dangerous Drugs Section are prosecuting the case.
This case was presented as a part of Operation SCOPE, (Strategically Combatting Opioids through Prosecution and Enforcement), an initiative that targets individuals who illegally prescribe opioids and drug traffickers who also distribute these dangerous and addictive drugs.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
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.
Former Delgado Community College Financial Aid Officer Pleads Guilty to Solicitation and Receipt of BribesRead the Press Release
United States Attorney Duane A. Evans announced that DAVIN D. THOMAS (“THOMAS”), age 32, of Ponchatoula, Louisiana, a former Delgado Community College ("DCC") Financial Aid Officer, pled guilty today to a one count Bill of Information charging him with soliciting money from students in exchange for awarding students financial aid.
According to court documents, THOMAS was responsible for the verification of student financial aid applications and for identifying the students who were eligible for financial aid funds. From April 2014 through August 2016, THOMAS solicited funds from three DCC students in exchanged for awarding the students financial aid. THOMAS admitted to federal law enforcement that he accepted $6,700 in exchange for awarding the students financial aid.
THOMAS faces a possible sentence of up to ten (10) years imprisonment, followed by up to three (3) years of supervised release, and a $250,000.00 fine. U.S. District Court Judge Eldon E. Fallon set sentencing for December 20, 2018.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and United States Department of Education, Office of Inspector General. The prosecution of this case is being handled by Assistant U. S. Attorney Julia K. Evans.
Former City of Detroit Employee Sentenced to Prison for Embezzling $265,000 from the CityRead the Press Release
A former City of Detroit employee, Masharn Franklin, 53, of Detroit, was sentenced to 18 months in prison, followed by 3 years supervised release, and ordered to pay $265,573 in restitution to the city of Detroit based on her conviction for embezzlement, United States Attorney Matthew Schneider announced today.
Franklin was employed by the City of Detroit in its audit and payroll department in 2016 and 2017. During that time, Franklin was responsible for overseeing the execution of garnishment orders for the salaries of Detroit city employees. While so employed, Franklin concocted a scheme to embezzle hundreds of thousands of dollars from the city by causing money to be “garnished” from city funds in the names of Franklin’s relatives. Once the city had issued checks in the names of Franklin’s relatives in the amounts dictated by Franklin, Franklin then deposited the checks into bank accounts held jointly by her and her relatives. As a result of her embezzlement scheme, Franklin stole approximately $265,573 from the City of Detroit. The FBI has already seized $58,000 in criminal proceeds from Franklin’s bank accounts.
Besides being sentenced to prison, the Court ordered Franklin to pay restitution to the City of Detroit for the additional $207,000 that she has yet to repay.
Schneider was joined in the announcement by Timothy Slater, Special Agent In Charge of the Detroit Field Office of the Federal Bureau of Investigation.
United States Attorney Schneider said, “Detroit employees who embezzle money from the city steal from all citizens of the city, depriving them of needed public services and projects. The Court’s sentence today vindicates the rule of law and demonstrates that such conduct will not be tolerated as the city continues its comeback.”
“Make no mistake, city employees who exploit their positions of trust in order to enrich themselves at the expense of the taxpayers will be held accountable”, said Timothy R. Slater, Special Agent in Charge, Detroit FBI.
The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney David A. Gardey.
Florida Man Pleads Guilty in Case Targeting Opioid Trafficking on the DarknetRead the Press Release
PITTSBURGH, PA. - A Florida resident pleaded guilty in federal court to charges of conspiracy to distribute 40 grams or more of fentanyl and a quantity of carfentanil, as well as distribution of quantities of methamphetamine, carfentanil, and ecstasy, United States Attorney Scott W. Brady announced today.
Robert M. Gilner, a/k/a Gman19635, 30, of St. Petersburg, FL, pleaded guilty to four counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Gilner conspired with others, in the Western District of Pennsylvania and elsewhere, to distribute 40 grams or more of fentanyl and a quantity of carfentanil. Additionally, on March 10, 2017, he distributed a quantity of methamphetamine and, on March 22, 2017, he distributed a quantity of carfentanil and a quantity of ecstasy to the Western District of Pennsylvania.
Judge Bissoon scheduled sentencing for January 17, 2019 at 10 a.m. The law provides for a total sentence of five years and up to life in prison, a fine of $13,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
"Gman19635 is the fifth defendant investigated and charged in Western Pennsylvania since Attorney General Jeff Sessions announced the creation of the Joint Criminal Opioid Darknet Enforcement (J-CODE) initiative in Pittsburgh earlier this year," said U.S. Attorney Brady. "Through our office’s expertise in opioids and cybercrime, we are aggressively targeting drug trafficking of fentanyl and other opioids on the Darknet."
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
This case was investigated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and U.S. Immigration and Customs enforcement/Homeland Security Investigations as part of the Joint Criminal Opioid Darknet Enforcement (J-CODE) initiative.
Federal jury finds Abbeville man guilty of marijuana shipping schemeRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that a federal jury found an Abbeville man guilty Wednesday of shipping marijuana to himself.
Jabori Huntsberry, 36, of Abbeville, Louisiana, was found guilty of one count of conspiracy to possess with intent to distribute marijuana, one count of unlawful use of a communication facility, one count of possession with intent to distribute marijuana, and one count of possession of a firearm by a convicted felon. United States District Judge Elizabeth E. Foote presided over the trial, which started Monday and ended Wednesday. The jury returned a guilty verdict after deliberating for approximately one hour and 45 minutes.
Evidence admitted at trial revealed that the defendant conspired to receive packages of marijuana from a California source using U.S. mail from October 2011 to February 2014. United States Postal Inspectors discovered that, at multiple times and using different addresses and names, Huntsberry shipped marijuana to himself. He had money transferred to a California contact before each package was sent. Law enforcement agents conducted a controlled delivery of one of the packages on February 14, 2014, to a residence next to Huntsberry’s home in Abbeville. After an occupant took the package, agents searched both homes. A search of Huntsberry’s home produced a notebook documenting drug activity, U.S. Postal Service mail labels, money transfer receipts, a Ruger model P-89, 9 mm semiautomatic pistol, and a Romarm Model CUGIR, 7.62X39 semiautomatic rifle.
The defendant shipped approximately 200 kilograms of marijuana to himself and electronically transferred nearly $300,000 to the source in California during the conspiracy.
The defendant faces 10 years to life in prison, at least five years of supervised release and a $10 million fine. Sentencing has been set for December 6, 2018.
The ATF, U.S. Postal Inspection Service and Vermilion Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Jamilla A. Bynog and John Luke Walker are prosecuting the case.
Federal Grand Jury Indicts St. Clair County Trio as Operators of Moody Pill MillRead the Press Release
BIRMINGHAM – A federal grand jury on Wednesday indicted a Springville couple and a Moody physician on charges they operated a pill mill in St. Clair County for four years, announced U.S. Attorney Jay E. Town, Drug Enforcement Administration Assistant Special Agent in Charge Bret Hamilton and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Thomas J. Holloman.
A 20-count indictment filed in U.S. District Court charges CINDY LOUISE HYCHE DUNN, 53, her husband, THOMAS MASON DUNN, 56, and Dr. JOHN LADD BUCKINGHAM, 85, in a conspiracy to operate a clinic in Moody for the main purpose of illegally distributing or dispensing controlled substances outside the usual course of professional practice and not for a legitimate medical purpose. The object of the conspiracy was for the participants to enrich themselves, according to the indictment. The group ran Cindy Dunn & Dr. Buckingham, M.D., Weight Loss Clinic and Pain Management (CDPM) from January 2012 through December 2015.
“Personal greed motivates the people who operate illegal pain clinics, mass-prescribing opioids without medical justification and with no regard to the larger pain they bring to individuals, families and communities,” Town said. “The Department of Justice is determined to stamp out the operation of illegal pain clinics by all legal means as part of the fight against opioid abuse, and the Northern District of Alabama is fully committed to the fight. As one of 12 districts across the county participating in the department’s pilot Opioid Fraud and Abuse Detection Unit, we are taking advantage of data collection and analysis and joining together federal, state and local law enforcement to investigate and shut down illegal pill mills for good.”
“The abuse of prescription drugs is a serious problem in our communities – leading to addiction, shattered lives, and even death,” Hamilton said. “For the health and safety of our citizens, DEA and our law enforcement partners will continue to target those who illegally obtain and distribute these potentially dangerous drugs. We hope that these indictments serve as a reminder to anyone who might illegally divert pharmaceuticals that they will be held accountable for the harm they cause.”
“This was a classic example of a pill mill and these individuals will be held accountable,” Holloman said. “We will continue to work with our law enforcement partners in tackling the opioid epidemic head on in the state of Alabama. In following the money, you can trace the drug proceeds to the beneficiaries and bring the entire conspiracy ring to justice.”
The indictment includes 16 counts charging Cindy Dunn and Buckingham with unlawfully dispensing a controlled substance, all containing opioids. As part of the conspiracy and in disregard for usual standards of professional medical practice, Cindy Dunn, Buckingham and other co-conspirators prescribed more than 13,500 methadone-based pills to one patient and more than 8,200 oxycodone-based pills to another patient, according to the indictment. They also prescribed more than 7,900 oxycodone-based and methadone-based pills, collectively, to a single patient, and 7,700 oxycodone-based and methadone-based pills, collectively, to a different patient, the indictment says.
Cindy Dunn, owner and president of CDPM, operated the clinic, including hiring and directing physicians and staff and making financial decisions. She mainly hired relatives as clerical staff and, for the vast majority of the clinic’s operation, did not employ formally trained nurses or medical assistants, according to the indictment. Cindy Dunn had no known medical education of her own.
Thomas Dunn performed various administrative and financial duties for CDPM and received prescriptions for opioids from the clinic, according to the indictment. Buckingham was a licensed physician in Alabama, but was not a certified pain management specialist.
CDPM typically charged a $25 patient application fee, a $200-$300 clinic visit fee for new patients, then a $90-$125 monthly fee for follow-up visits, according to the indictment. The clinic did not accept insurance, requiring cash or credit payments. Patient examinations were “infrequent, and were typically minimal and cursory,” and Cindy Dunn and CDPM staff often issued controlled substance prescriptions that were pre-signed by Buckingham or other physician co-conspirators, according to the indictment.
The indictment charges Cindy Dunn and Buckingham with maintaining a drug-involved premises, and charges all three defendants with participating in a money-laundering conspiracy by opening bank accounts for the clinic and conducting financial transactions with illegally obtained funds in order to keep the illicit business operating.
The final count of the indictment charges Cindy Dunn with engaging in a monetary transaction involving criminally derived property valued at more than $10,000. The charge cites a $25,000 deposit into a CDPM account at Regions Bank with money from a clinic account at Metro Bank.
Both the conspiracy to distribute controlled substances outside the usual course of professional practice charge and each substantive count of illegally distributing controlled substances carry a maximum penalty of 20 years in prison and a $1 million fine. The charge of maintaining a drug-involved premises carries a maximum penalty of 20 years in prison and a $500,000 fine. Money-laundering conspiracy carries a maximum penalty of 20 years in prison and a $250,000 fine. Engaging in monetary transactions involving criminal proceeds carries a maximum penalty of 10 years in prison and a $250,000 fine.
DEA and IRS-CI investigated the case, which Assistant U.S. Attorney Mohammad Khatib is prosecuting.
Federal Grand Jury Indicts Separate Fraud Conspiracies Targeting Sam’s ClubsRead the Press Release
BIRMINGHAM – A federal grand jury on Wednesday indicted two Tampa men and a Georgia trio in similar fraud conspiracies targeting Sam’s Club membership stores, announced U.S. Attorney Jay E. Town and U.S. Secret Service Special Agent in Charge Michael Williams.
Both cases involve counterfeit access devices – debit or credit cards – used at a wide range of Sam’s Club locations to purchase goods or pre-paid gift cards. The Georgia defendants are charged with using counterfeited cards at Sam’s Clubs trailing from Indiana to Alabama, with excursions to Las Vegas and Oklahoma.
“The defendants in both of these cases are facing federal charges because of the collaborative work of the Secret Service Financial Crimes Task Force, Regions Bank and Walmart Global Investigations,” Town said. “We appreciate their work and recognition of the fact that when businesses suffer financial loss from criminal activity, oftentimes the community will incur higher costs and fees,” Town said.
“These indictments will serve as a strong deterrent to criminals who travel across state lines to commit financial crimes in the Northern District of Alabama,” Williams said.
A three-count federal indictment charges SWIFT OGDEN SPEER, 48, and EMERALD SANDERS-JACKSON, 28, both of Atlanta, and CHAKERA DENISE RICHARDSON, 27, of Austell, Ga., with conspiring between January and March in Jefferson County to traffic in counterfeit access devices by using them to obtain money, goods and services. The indictment also charges them with separate counts of using a counterfeit device and possessing device-making equipment on March 16 in Jefferson County.
As part of the conspiracy, Speer and Sanders-Jackson used four different Sam’s Club membership accounts as they visited stores in six states between Jan. 18 and March 16, buying goods and pre-paid gift cards with counterfeit credit and debit cards. They hit stores in Bloomington, Ind., Lexington and Bowling Green, Ky., Nashville, Memphis and Chattanooga, Tenn., and Huntsville and Florence, Ala., before showing up in a Las Vegas store on Feb. 26, according to the indictment. Speer and Sanders-Jackson next made fraudulent purchases at Sam’s Clubs in Homewood and Trussville, Ala., and in Edmond, Okla., before returning to stores in Trussville and Hoover, Ala., on March 16. According to the indictment, Richardson drove Speer and Sanders-Jackson to the Hoover and Trussville stores on March 16.
A separate three-count indictment charges PARALTA CHACON, 27, and LAZARO MARTINEZ QUINTANA, 24, both of Tampa, Fla., with conspiring between May and June in Jefferson County to traffic in counterfeit access devices by using them to obtain money, goods and services. The indictment also charges them with separate counts of using the counterfeit devices to make purchases and with possessing device-making equipment on June 21.
As part of the conspiracy, Chacon and Quintana created a Sam’s Club account in a name different from theirs and used counterfeit cards to make purchases on that account at stores in Columbus, Ga., Auburn, Homewood, Hoover and Trussville, Ala., and in Tampa.
The maximum penalty for the conspiracy charge is five years in prison and a $250,000 fine. The maximum penalty both for making purchases with the counterfeit access devises and for possessing device-making equipment is 10 years in prison and a $250,000 fine.
The Secret Service Financial Crimes Task Force investigated the cases in conjunction with Regions Bank and Walmart Global Investigations. Assistant U.S. Attorney Robin Beardsley Mark is prosecuting the cases.
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Ex-Director of Facilities for the Municipality of Toa Baja Pleads Guilty to Bribery and Conspiracy to DefraudRead the Press Release
SAN JUAN, P.R. – On August 30, 2018, Edgar Arroyo-Amezquita pleaded guilty before Magistrate Judge Silvia Carreño-Coll to bribery and conspiracy to obtain property by fraud from a program receiving federal funds, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
As a part of the guilty plea, Arroyo admitted that he served as Director of Facilities for the Municipality of Toa Baja during the time of the conspiracy, which was from May 2011 through May 2013. In his position as Director of Facilities, Arroyo conspired to defraud the municipality and accepted multiple bribes, paid in cash and totaling $39,999, in exchange for causing contracts to be awarded and payments to be made by the Municipality of Toa Baja to enrich co-defendant Luis Serrano Perdigon.
As a part of the conspiracy, Arroyo personally submitted fraudulent quote documentation to the purchasing office of the Municipality of Toa Baja using a fictitious company named Professional Sales & Service. In doing so, Arroyo utilized, without consent or legal authority, the name and signature of a real person on the fraudulent quote documentation submitted to the municipality. Arroyo then caused checks to be issued by the municipality to Professional Sales & Service, which were deposited into a bank account in the name of ALS Electronic Service, a company alleged to be controlled by co-defendant Luis Serrano Perdigon.
Sentencing has been scheduled before the Honorable Carmen C. Cerezo on December 5, 2018. Arroyo and the United States have agreed to recommend a sentence of imprisonment for a term of 30 months and restitution in the full amount of $39,999. Arroyo faces a maximum sentence of five years of imprisonment for the conspiracy to obtain property by fraud from a program receiving federal funds and a maximum sentence of 10 years imprisonment for bribery concerning programs receiving federal funds. The case is being prosecuted by Assistant United States Attorney Seth Erbe and was investigated by the Federal Bureau of Investigation.
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El Salvadoran National Pleads Guilty to Transporting Illegal AliensRead the Press Release
U.S. Attorney Duane A. Evans announced that FRANCISCO ARENIVAR-CASTILLO, age 37, a citizen of El Salvador, pled guilty yesterday to a one-count bill of information with transporting aliens, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(ii).
According to the bill of information, on March 8, 2018, ICE agents intercepted FRANCISCO ARENIVAR-CASTILLO while he was driving an illegal alien from Houston, Texas to Miami, Florida through St. Tammany Parish. FRANCISCO ARENIVAR-CASTILLO knew his passenger was illegally present in the United States, but nevertheless agreed to transport the individual to a work-site in Miami.
FRANCISCO ARENIVAR-CASTILLO faces a maximum term of imprisonment of five years, a fine of up to $250,000.00, up to three years of supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Martin L.C. Feldman set sentencing for November 14, 2018.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Eagle Butte Woman Charged with TheftRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Theft from an Indian Tribal Organization.
Memoree Ducheneaux, age 27, was indicted on August 14, 2018. She appeared before U.S. Magistrate Judge Mark A. Moreno on August 24, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between November 2016 and August 2017, Ducheneaux did willfully and knowingly steal, embezzle and convert to her own use, goods and assets in an amount greater than $1,000 belonging to the Lakota Thrifty Mart, in Eagle Butte, which is an Indian tribal organization.
The charge is merely an accusation and Ducheneaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Ducheneaux was released on bond pending trial. A trial date has not been set.
The case was brought as part of The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the United States Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Eastern District of Michigan Announces Record-Setting Hospital Drug Diversion Civil Penalty Settlement with the University of Michigan Health SystemRead the Press Release
The United States Attorney’s Office for the Eastern District of Michigan announced today that the University of Michigan Health System (UMHS) has agreed to pay the United States $4.3 million as part of a settlement resolving allegations that UMHS violated certain provisions of the Controlled Substances Act (CSA), 21 U.S.C. §§ 801-904. The settlement, which is civil in nature, resulted from a years-long Drug Enforcement Administration (DEA) investigation of UMHS’s handling of controlled substances. It is the nation’s largest settlement of its kind involving allegations of drug diversion at a hospital.
DEA began its investigation after two tragic incidents occurred in December 2013 involving two UMHS employees – a nurse and an anesthesiology resident. Both overdosed on opioids, including fentanyl, at a UMHS facility. The nurse’s overdose was fatal.
Following its investigation, DEA concluded that a number of the hospital’s practices concerning controlled substances were in violation of the CSA. For example, UMHS failed to secure DEA registrations for 15 off-site ambulatory care locations throughout Ann Arbor and Southeast Michigan, each of which received narcotics from the main hospital’s pharmacy and dispensed them to patients. The failure to secure DEA registrations rendered unlawful all of the narcotics distributions from the main hospital to the unregistered off-site locations, as well as the unregistered locations’ subsequent dispensing of these narcotics to their patients. DEA also determined that UMHS committed a number of significant recordkeeping violations, some of which included failing to maintain complete and accurate records of certain controlled substances that it received, sold, delivered or otherwise disposed of, and failing to notify DEA in a timely manner regarding certain instances of thefts or significant losses of controlled substances. DEA concluded that UMHS’ deficient recordkeeping negatively impacted UMHS’ ability to guard against the theft and diversion of controlled substances.
“Every professional and every institution throughout our health care system has a responsibility to comply with the laws governing the regulation of controlled substances,” said United States Attorney Matthew Schneider. “Even the University of Michigan Health System, which does great work every single day, has an obligation to its patients, to its employees, and to the public to responsibly control its drug inventory.”
DEA Special Agent in Charge Timothy Plancon stated, “Through rigorous investigation, DEA Diversion Investigators uncovered system-wide violations within the University of Michigan Health System, highlighting the fact that anything short of full compliance can have grave public health consequences. This case should alert all health systems – large or small – that complying with the Controlled Substance Act is not only their legal responsibility but also a matter of public trust.”
As part of the settlement, UMHS has entered into a three-year Memorandum of Agreement with DEA, which prescribes the hospital’s drug-handling responsibilities going forward. That Memorandum also recognizes the substantial steps that UMHS has already taken to address deficiencies in its handling of controlled substances.
A main objective of the CSA is controlling illegitimate traffic in controlled substances. To prevent the diversion of controlled substances, the CSA regulates persons, companies and other entities that manufacture, distribute and dispense controlled substances. The government’s investigation and resolution of this matter illustrates the government’s emphasis on combating the prescription opioid crisis.
This matter was investigated by Diversion Investigator Brian Bishop from DEA’s Detroit Field Division and Assistant U.S. Attorneys Peter Caplan and Caroline Burgunder from the United States Attorney’s Office for the Eastern District of Michigan.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Downingtown Man Convicted of Exploiting USDOT Disadvantaged Business ProgramRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Stamatios “Tom” Kousisis, 60, of Downingtown, PA, and his employer Alpha Paining and Construction, Inc., were found guilty today by a jury of one count of conspiracy to commit wire fraud, three counts of wire fraud, and ten counts of making false statements. He was acquitted of two counts of wire fraud. The illegal scheme involved exploiting the U.S. Department of Transportation Disadvantaged Business Enterprise (“DBE”) Program, which is a program designed to provide small businesses owned and controlled by economically disadvantaged individuals with a fair opportunity to compete for federally funded transportation contracts.
A co-defendant, Emanouel “Manny” Frangos, 41, of Campbell, OH was acquitted of five counts of wire fraud, and a jury was unable to reach a verdict on the remaining 11 counts against him regarding conspiracy to commit wire fraud and making false statements.
Kousisis was the Project Manager of Alpha Painting & Construction Co., Inc., of Baltimore MD, and Frangos was an owner of Liberty Maintenance, Inc., of Youngstown, OH, which were both bridge painting contractors, although neither was a certified DBE in Pennsylvania. The scheme involved Alpha-Liberty JV, a joint venture between Liberty Maintenance and Alpha Painting, and Markias, Inc., a now-defunct certified DBE.
Kousisis concocted a scheme to obtain and keep two Pennsylvania Department of Transportation (“PennDOT”) contracts to rehabilitate two bridges in the Philadelphia area, the Girard Point Bridge and the 30th Street Station Bridge. These contracts required Kousisis to use a qualified DBE to provide supplies for those projects. Operating through a joint venture between Liberty Maintenance and Alpha Painting, Kousisis employed a pass-through company, Markias, to give the appearance that they had contracted with a legitimate minority “regular dealer” when, in reality, Markias performed no legitimate or economically useful function.
Without any involvement from the purported DBE “regular dealer,” Kousisis and his employees directly ordered supplies from third-party vendors, arranged for those vendors to deliver those supplies to the defendant’s job-sites, and directly negotiated the prices and other terms of those supplies with the third-party vendors. To falsely give the appearance that Markias was performing an economically useful function, Kousisis arranged for the true suppliers to send invoices to Markias, which marked the invoices up by 2.25% and forwarded them to the Kousisis. In turn, Kousisis issued two sets of checks to Markias: one to pay Markias’ fee for acting as a bogus pass-through, and the other for Markias to forward to the true suppliers to pay for the goods. Kousisis also used Markias as a vehicle through which to funnel out-of-state expenses to give the appearance that those expenses had been incurred in connection with the two Philadelphia-area bridge projects. Kousisis caused a total of approximately $4.5 million of false claims for DBE credits to be submitted to PennDOT, based on Markias’ fraudulent invoices.
Joyce Abrams, the owner of Markias, has previously pleaded guilty to conspiring to defraud PennDOT and the U.S. Department of Transportation with respect to this scheme.
“The purpose of the DBE program is noted in its title: to help disadvantaged businesses in Pennsylvania,” said U.S. Attorney McSwain. “When people like Kousisis undermine the DBE rules by cheating the system, not only is it a crime, but also it serves to harm certified DBE owners who are playing by the rules and who should be benefitting from the program. Our Office will continue to hold individuals and businesses accountable when they choose to circumvent the law for their own gain.”
“Today’s convictions demonstrate how DBE fraud harms the integrity of the DBE program and law-abiding contractors, including many small businesses, by defeating efforts to ensure a level playing field in which all firms can compete fairly for contracts,” said Douglas Shoemaker, Regional Special Agent-in-Charge of the U.S. Department of Transportation (DOT) Office of Inspector General. “Our special agents will continue to work with Federal, State, and local law enforcement and prosecutorial partners to expose and shut down DBE fraud schemes that adversely affect public trust and DOT-assisted highway programs throughout Pennsylvania and elsewhere.”
Kousisis faces a statutory maximum sentence of 130 years in prison, a possible fine, supervised release, and a $1400 special assessment. Sentencing has not yet been scheduled by the Honorable Wendy Beetlestone.
The case was investigated by the U.S. Department of Transportation Office of Inspector General, the FBI, the Department of Labor Office of Inspector General, and Amtrak Office of Inspector General. It is being prosecuted by Assistant United States Attorneys Paul Shapiro and David Troyer.
Detroit Man Sentenced to 7 Years in Prison for Involvement in Easter ShootingRead the Press Release
A Detroit man was sentenced to 7 years (84 months) in federal prison on the charge of being a felon in possession of a firearm, announced United States Attorney Matthew Schneider.
Vincent Samuel Hill, Jr., was sentenced yesterday before United States District Judge Arthur J. Tarnow in Detroit, Michigan.
Hill pleaded guilty on July 9, 2018, to one count of being a felon in possession of a firearm. Hill had illegally possessed a stolen firearm on Easter Day when he brandished the firearm at Dane’s Social Club on W. McNichols. Detroit Police Department Officers responded to a shooting at Dane’s Social Club on Easter Day where Hill was shot multiple times. Initial reports were that Hill was shot in the crossfire when with his girlfriend, who rushed him to the hospital. Upon further investigation, Detroit Police Officers learned that those reports were not true. Surveillance video showed that Hill was shot only after brandishing a firearm with a laser sight into the crowd. Detroit Police Department executed a search warrant of Hill’s home following their investigation and recovered the firearm with the laser sight. Hill was arrested at that time. Hill also has a pending domestic violence case in Wayne County and a federal supervised release violation in federal court.
“Keeping guns out of the hands of felons is a priority of our office,” stated United States Attorney Schneider. “Felons and violent offenders should take notice that they will go to prison if they illegally possession firearms.”
“Today’s sentence is another example of ATF’s relentless effort to reduce violent crime in the City of Detroit and we will continue to work with our law enforcement partners to target dangerous individuals,” Special Agent in Charge James Deir said.
Hill’s case signals the commitment by ATF and the United States Attorney’s Office to take violent individuals off the streets. This case was a joint investigation by the Detroit Police Department, Wayne County Prosecutor’s Office, special agents of the ATF and prosecuted by Assistant United States Attorney Mitra Jafary-Hariri in conjunction with the Project Safe Neighborhood initiative.
Delaware County Convicted Murderer, Opioid Dealer, and Armed Robber Sentenced to Life in PrisonRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that his office secured a life sentence today in a case involving a Delaware County man convicted of murder through the use of a firearm and conspiracy to distribute oxycodone. Michael Vandergrift, 31, of Chester, was sentenced by U.S. District Judge Gerald J. Pappert to a life sentence for murder, and an additional 240 months for the drug conspiracy conviction. In December 2017, Vandergrift and Anthony Vetri, 30, of Essington, were convicted after trial of conspiracy to distribute oxycodone from 2008 until June 4, 2013. During the conspiracy, Vetri illegally obtained large sums of oxycodone from a registered pharmacist, Mitesh Patel, who owned and operated three pharmacies in the greater Philadelphia area. Vetri then supplied Vandergrift with oxycodone, and both distributed the drugs throughout Delaware and Philadelphia Counties. During the course of the conspiracy, over 400,000 oxycodone tablets were distributed by Vetri, Vandergrift, and the other conspirators, earning over a million dollars in drug proceeds.
During the drug conspiracy, Patel illegally provided oxycodone to others, including his business partner, Gbolahan Olabode. Beginning in the fall of 2011, Vetri and Vandergrift conspired to eliminate Olabode as a competitor to boost Vetri and Vandergrift’s oxycodone supply from Patel. Vetri and Vandergrift ultimately decided to murder Olabode, and Vandergrift recruited Michael Mangold and Allen Carter to assist. On January 4, 2012, Vandergrift, Mangold, and Carter went to Olabode’s residence in Lansdowne, Pennsylvania and waited for Olabode to return home. When Olabode returned, Vandergrift and Mangold each used a firearm to fire 27 shots at Olabode as he carried groceries into his home. The assailants struck the victim 13 times in his head and body, killing him.
Patel, Mangold, and Carter all previously pled guilty to charges for their respective involvement in drug distribution, the murder of Olabode, and other offenses. In earlier proceedings, Judge Pappert sentenced Patel to a term of 15 years imprisonment, Mangold to a term of 35 years imprisonment, and Vetri received a life sentence. Carter is awaiting sentencing.
Today, Vandergrift was also sentenced for his involvement in a separate crime. On April 9, 2018, Vandergrift pled guilty to committing an armed robbery of a suspected drug dealer, “R.D.” In that incident, Vandergift lured R.D. to a home in Philadelphia with a promise of a lucrative drug transaction. Once inside the residence, R.D. was struck in the head with a firearm and held at gun point as he was robbed by Vandergrift and others of approximately $20,000. As R.D. was being led away from the scene of the robbery, he fired a concealed firearm in the direction of his robbers. No one was struck by R.D.’s shots. Vandergrift’s robbery conspirators and R.D. were convicted and sentenced in earlier proceedings.
“The defendant is a danger to the community in every sense of the word,” said U.S. Attorney McSwain. “Drug trafficking is dangerous and violent, and there is no doubt that the defendant’s victims continue to struggle with opioid addiction because of his crimes. Not only did Vandergrift flood the streets with illegal drugs, but also he murdered one drug rival in cold blood and held up another in an armed robbery. We are all safer with the defendant spending the rest of his life behind bars.”
"Michael Vandergrift and his buddies were prolific pill-pushers, cashing in on our area's opioid crisis," said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. "To maximize their profits, they moved to minimize their competition--ambushing and brutally murdering a drug rival. There were 27 shots fired, 13 that hit, and just one motive: sheer greed."
The cases were investigated by the Federal Bureau of Investigation, the U.S. Drug Enforcement Administration, the Internal Revenue Service’s Criminal Investigation Division, the Philadelphia Police Department, the Organized Crime Drug Enforcement Task Force, the Lansdowne Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorneys Jonathan B. Ortiz and David. E. Troyer are prosecuting the case.
Cuban National Pleads Guilty to Conspiring to Steal Credit Card Numbers from Gas PumpsRead the Press Release
A Cuban national who had been residing in Miami, Florida pleaded guilty yesterday, to conspiracy to commit access device fraud, U.S. Attorney Duane A. Evans announced today. ALAYN ALVAREZ CASTRO, age 29, was arrested in December 2017 in Miami, Florida and later ordered detained pending trial in New Orleans. As part of his guilty plea today, CASTRO admitted that he agreed with others to obtain credit and debit card numbers that had been skimmed from gas pumps.
According to the factual basis filed in the case, CASTRO directed others to the location of skimmers installed in the Baton Rouge and New Orleans areas. YUSNIEL HERNANDEZ PEREZ, age 32, YADIER ALUIJAS FERNANDEZ, age 31, and HENRY DAVID MARTINEZ, age 23, have previously pleaded guilty in this case. These defendants, who are awaiting sentencing, admitted that they traveled to the Eastern District of Louisiana from Texas in July 2017. They then went to locations in Louisiana where skimmers had been previously installed, returned to Texas, and then came back to Louisiana with counterfeit access devices, which they used to make purchases as a local merchant. For his part, CASTRO further admitted that he flew to Phoenix Arizona as part of the conspiracy and sent the addresses of Houston, Texas-area gas stations to a coconspirator.
Judge Feldman set sentencing for CASTRO for November 14, 2018. At sentencing, he faces a statutory maximum sentence of five years in prison, along with monetary penalties, supervised release, and mandatory restitution.
U.S. Attorney Evans commended special agents of the United States Secret Service, as well as Jefferson Parish Sheriff’s Deputies, who investigated the case and Assistant U.S. Attorney Hayden Brockett, who is prosecuting this case.
Colombians Charged with Trafficking CocaineRead the Press Release
U.S. Attorney Duane A. Evans announced that JHON ALBEIRO PINEDA JIMENEZ, age 36, and PEDRO ANTONIO JIMENEZ, age 64, citizens of Colombia, were charged today in a two-count Indictment with conspiracy to distribute five kilograms or more of cocaine and possession with intent to distribute five kilograms or more of cocaine, while on board a vessel subject to the jurisdiction of the United States. If convicted, each defendant faces a mandatory minimum sentence of 10 years and a maximum possible penalty of life in prison for each count.
U. S. Attorney Evans reiterated that an Indictment is merely a charge and that the guilt of each defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement, and the United States Coast Guard in investigating this matter. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
Cleveland men indicted for armed robberies in Cleveland Heights and Richmond HeightsRead the Press Release
Two Cleveland men were indicted in federal court for using firearms while robbing a Cleveland Heights store and attempting to rob a bank in Richmond Heights last month.
Otis Pamplin, 18, and Joseph Kyle Sanders, 19, are charged with one count of attempted bank robbery, one count of violating the Hobbs Act, and two counts of using a firearm in a crime of violence.
Pamplin, Sanders and someone identified in court documents as R.E. used a firearm on July 11 in attempting to rob the Ohio Savings Bank at 720 Richmond Road on July 11. Later that day, the three used a firearm to rob LoanMax at 13216 Cedar 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 part of Project Safe Neighborhoods, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This cases is being prosecuted by Assistant U.S. Attorney Scott Zarzycki following an investigation by the FBI, Cleveland Heights Police Department and Richmond Heights Police Department.
A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Clairton Woman Sentenced to Prison for Conspiring to Distribute HeroinRead the Press Release
PITTSBURGH, PA – A resident of Clairton, Pennsylvania, has been sentenced in federal court to 12 months and one day’s imprisonment, followed by two years’ supervised release on her conviction of conspiracy to distribute narcotics, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Jean Hull, 52.
According to information presented to the court at the time she entered a guilty plea, Hull regularly purchased heroin from her codefendant, Skyler Carter, for further distribution, and was responsible for the distribution of between 20 and 40 grams. Hull is the seventh of the 21 defendants charged in the conspiracy to be sentenced.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Chicago Man Charged with Lying to Federal Authorities After Alleged Fake Abduction ReportRead the Press Release
United States Attorney Erica H. MacDonald today announced a criminal complaint charging ALEJANDRO MARIO CORTES, 45, with one count of making false statements to federal authorities after allegedly claiming he was abducted from his home in Chicago, Illinois earlier this spring. CORTES was arrested yesterday and made his initial appearance today before Magistrate Judge Jon T. Huseby in U.S. District Court in Saint Paul, Minnesota.
According to a criminal complaint, in the early morning hours of April 17, 2018, law enforcement officers responded to a report by a snowplow driver that he discovered a man near Randolph Avenue in St. Paul, Minnesota whose hands were bound and had duct tape over his mouth. Law enforcement officers located the individual, who later identified himself as CORTES.
CORTES told responding officers that he had been kidnapped from Chicago several days earlier by several unknown men. During the alleged abduction, CORTES claimed that a bag was put over his head, and he was held for several days and threatened with death. He further claimed that he was finally thrown out of a vehicle and into a snowbank after being told he would be killed if he contacted the police.
In a later meeting with FBI agents, CORTES further described his abduction, the circumstances surrounding his confinement, and details of the threats made against him and his family. CORTES claimed to have received threatening text messages, some in Spanish and some in English. These text messages made reference to CORTES’ relatives and included photos of his residence in Chicago.
During follow up interviews with CORTES, he admitted to FBI investigators that he often used false identities to avoid detection after a prior DUI arrest and was living illegally in the United States.
According to the complaint, law enforcement traced the alleged threatening text messages to Pinger, an online texting application, and determined the IP address used to create the text messages belonged to an associate of CORTES. After an interview with investigators, the associate indicated that CORTES faked his own kidnapping in ordered to be considered a crime victim so he could obtain a visa to stay in the United States and gain citizenship.
According to the complaint, CORTES asked the associate to facilitate the kidnapping, even asking the associate to allow him to stay in a storage facility with food, water, a sleeping bag and heater during his alleged abduction. To complete the abduction and kidnapping ruse, CORTES instructed the associate to place duct tape on his mouth and his wrists before dropping him off in St. Paul.
This case is the result of an investigation conducted by the FBI and the Saint Paul Police Department.
Assistant U.S. Attorney Angela Munoz-Kaphing is prosecuting the case.
Defendant Information:
ALEJANDRO MARIO CORTES, 45
Chicago, Ill.
Charged:
- False Statement or Representation Made to an Agency of the United States, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the criminal complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
California Woman Pleads Guilty to Federal Drug Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Tracy Estelle Fuentez, 43, of Fresno, Calif., pled guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge.
The DEA arrested Fuentez in April 2017, after seizing approximately 1.5 kilograms (3.31 pounds) of methamphetamine from her luggage during an interdiction investigation on April 27, 2017, in Albuquerque. Fuentez was indicted on May 24, 2017, and was charged with possession of methamphetamine with intent to distribute on April 27, 2017, in Bernalillo County, N.M.
During today’s proceedings, Fuentez pled guilty to a felony information charging her with possession of methamphetamine with intent to distribute. In entering the guilty plea, Fuentez admitted possessing methamphetamine while traveling through Albuquerque on April 27, 2017, and that she intended to distribute the methamphetamine to other individuals.
At sentencing, Fuentez faces a statutory mandatory minimum penalty of five years and a maximum of 40 years in federal prison. She remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Howard R. Thomas.
California Man Pleads Guilty to Fentanyl Trafficking OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that OMAR VILLARREAL, 27, of La Puente, California, pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to fentanyl trafficking offenses.
According to court documents and statements made in court, on December 21, 2016, law enforcement officers stopped a tractor trailer on Route 34 in Derby. A search of the cab of the tractor trailer revealed a box that contained 25 kilograms of fentanyl. The driver of the vehicle, Erick Crespo-Escalante, was placed under arrest. The investigation revealed that Crespo-Escalante was delivering the shipment of fentanyl to a location in Waterbury.
In pleading guilty, VILLARREAL admitted that, in October 2016, he traveled from California to Connecticut for the purpose of overseeing the shipment of the narcotics to Connecticut, took up residence in Waterbury for approximately two months for the purpose of coordinating the delivery, and established a “stash” location in Waterbury to which the shipment could be delivered. After returning to California, VILLARREAL engaged in multiple phone calls with Crespo-Escalante to arrange the delivery via tractor trailer to Connecticut.
VILLARREAL pleaded guilty to one count of aiding and abetting the possession of fentanyl with intent to distribute, an offense that carries a maximum term of imprisonment of 20 years, and one count of traveling in interstate commerce to promote an unlawful activity, an offense that carries a maximum term of imprisonment of five years.
Judge Thompson scheduled sentencing for November 28, 2018.
VILLARREAL has been detained since his arrest on May 15, 2017.
On April 4, 2017, Crespo-Escalante pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, fentanyl. He awaits sentencing.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force and prosecuted by Assistant U.S. Attorney Dave Vatti.
California Man Charged with Making Violent Threats Against Boston Globe EmployeesRead the Press Release
BOSTON – A California man was arrested today and charged with making violent threats against Boston Globe employees in retaliation for the newspaper’s editorial response to political attacks on the media.
Robert D. Chain, 68, of Encino, California, is charged with one count of making threatening communications in interstate commerce. Chain will appear in federal court in Los Angeles this afternoon and be transferred to Boston at a later date.
“In the past few months, this office has charged people with threatening to bomb a minority commencement ceremony at Harvard, threatening to shoot people at a Second Amendment rally, offering money to anyone who kills a federal agent, and mailing white powder and threatening notes to certain public figures,” said U.S. Attorney Andrew Lelling. “Anyone – regardless of political affiliation – who puts others in fear for their lives will be prosecuted by this office. In a time of increasing political polarization, and amid the increasing incidence of mass shootings, members of the public must police their own political rhetoric. Or we will.”
“Everyone has a right to express their opinion, but threatening to kill people, takes it over the line and will not be tolerated,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s arrest of Robert Chain should serve a warning to others, that making threats is not a prank, it’s a federal crime. All threats are taken seriously, as we never know if the subject behind the threat intends to follow through with their actions. Whether potentially hoax or not, each and every threat will be aggressively run to ground. These investigations are expensive and are costly to the taxpayers, can put innocent people at risk, divert law enforcement from responding to actual emergencies, and cause undue stress to victims. I commend the great work of the Boston and Los Angeles Joint Terrorism Task Forces for their diligence and professionalism, and continue to seek the public’s support to immediately report threats or suspicious activity to law enforcement.”
On Aug. 10, 2018, the Boston Globe announced that it was requesting that other newspaper publications around the country publish a coordinated editorial response to political attacks on the media. The coordinated editorial response was to be published on Thursday, Aug. 16, 2018.
According to court documents, immediately following the announcement, Chain began making threatening calls to the Boston Globe’s newsroom. In the calls, Chain referred to the Globe as “the enemy of the people” and threatened to kill newspaper employees. In total, it is alleged that Chain made approximately 14 threatening phone calls to the Globe between August 10 and 22, 2018.
It is further alleged that on Aug. 16, 2018, the day the coordinated editorial response was published in the Boston Globe, Chain called the Globe newsroom and threatened to shoot Globe employees in the head “later today, at 4 o’clock.” As a result of that call, local law enforcement responded to the Globe’s offices and maintained a presence outside the building to ensure the safety of the employees.
The charge of making threatening communications in interstate commerce provides for a sentence of no greater than five years, one year of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling and FBI SAC Shaw made the announcement today. Valuable assistance was provided by the Bureau of Alcohol Tobacco, Firearms and Explosives, Los Angeles Field Division; the Drug Enforcement Administration, Los Angeles Division; the U.S. Postal Inspection Service, Los Angeles Division; the California Highway Patrol; and the Los Angeles Police Department. Assistant U.S. Attorney George P. Varghese of Lelling’s National Security Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
California Man Arrested for Heroin, Fentanyl TraffickingRead the Press Release
BOSTON – A California man was arrested yesterday in connection with drug trafficking activities that resulted in the seizure of approximately 11 kilograms of narcotics, including four kilograms of suspected heroin and five kilograms of suspected fentanyl.
Daniel Hernandez Ixta, 37, of Rancho Santa Margarita, Calif., was charged today with possession with intent to distribute and distribution of one kilogram or more of heroin and 400 grams or more of fentanyl. He made an initial appearance in federal court in Boston this afternoon and was detained pending a probable cause and detention hearing on Tuesday, Sept. 4, 2018.
According to court documents, an individual arranged to purchase four kilograms of heroin, five kilograms of fentanyl, and 5,000 pills from a narcotics distributor for a total purchase price of $517,000. The distributor agreed to arrange to have the drugs transported and delivered to the individual in North Andover. On Aug. 29, 2018, Hernandez, an associate of the distributor, allegedly met with the individual in an industrial warehouse park in North Andover near the Lawrence Municipal Airport to complete the transaction. After giving the individual a black duffle bag, agents responded to the scene and arrested Hernandez. It is alleged that nine kilograms of suspected narcotics were found in the duffle bag, and two additional kilograms of suspected narcotics and approximately 5,000 pills were found in Hernandez’s truck.
The charge of possession with intent to distribute and distribution of one kilogram or more of heroin and 400 grams or more of fentanyl carries a mandatory minimum sentence of 10 years in prison and up to life, at least five years and up to a lifetime of supervised release, and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Jared Dolan of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
California Man Charged with Making Violent Threats Against Boston Globe EmployeesRead the Press Release
BOSTON – A California man was arrested today and charged with making violent threats against Boston Globe employees in retaliation for the newspaper’s editorial response to political attacks on the media.
Robert D. Chain, 68, of Encino, California, is charged with one count of making threatening communications in interstate commerce. Chain will appear in federal court in Los Angeles this afternoon and be transferred to Boston at a later date.
“In the past few months, this office has charged people with threatening to bomb a minority commencement ceremony at Harvard, threatening to shoot people at a Second Amendment rally, offering money to anyone who kills a federal agent, and mailing white powder and threatening notes to certain public figures,” said U.S. Attorney Andrew Lelling. “Anyone – regardless of political affiliation – who puts others in fear for their lives will be prosecuted by this office. In a time of increasing political polarization, and amid the increasing incidence of mass shootings, members of the public must police their own political rhetoric. Or we will.”
“Everyone has a right to express their opinion, but threatening to kill people, takes it over the line and will not be tolerated,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s arrest of Robert Chain should serve a warning to others, that making threats is not a prank, it’s a federal crime. All threats are taken seriously, as we never know if the subject behind the threat intends to follow through with their actions. Whether potentially hoax or not, each and every threat will be aggressively run to ground. These investigations are expensive and are costly to the taxpayers, can put innocent people at risk, divert law enforcement from responding to actual emergencies, and cause undue stress to victims. I commend the great work of the Boston and Los Angeles Joint Terrorism Task Forces for their diligence and professionalism, and continue to seek the public’s support to immediately report threats or suspicious activity to law enforcement.”
On Aug. 10, 2018, the Boston Globe announced that it was requesting that other newspaper publications around the country publish a coordinated editorial response to political attacks on the media. The coordinated editorial response was to be published on Thursday, Aug. 16, 2018.
According to court documents, immediately following the announcement, Chain began making threatening calls to the Boston Globe’s newsroom. In the calls, Chain referred to the Globe as “the enemy of the people” and threatened to kill newspaper employees. In total, it is alleged that Chain made approximately 14 threatening phone calls to the Globe between August 10 and 22, 2018.
It is further alleged that on Aug. 16, 2018, the day the coordinated editorial response was published in the Boston Globe, Chain called the Globe newsroom and threatened to shoot Globe employees in the head “later today, at 4 o’clock.” As a result of that call, local law enforcement responded to the Globe’s offices and maintained a presence outside the building to ensure the safety of the employees.
The charge of making threatening communications in interstate commerce provides for a sentence of no greater than five years, one year of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling and FBI SAC Shaw made the announcement today. Valuable assistance was provided by the Bureau of Alcohol Tobacco, Firearms and Explosives, Los Angeles Field Division; the Drug Enforcement Administration, Los Angeles Division; the U.S. Postal Inspection Service, Los Angeles Division; the California Highway Patrol; and the Los Angeles Police Department. Assistant U.S. Attorney George P. Varghese of Lelling’s National Security Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Broward Resident Sentenced to Prison for Theft of Government MoneyRead the Press Release
On August 28, 2018, a Broward resident was sentenced to 36 months in prison, to be followed by three years of supervised release, and was ordered to pay $988,175 in restitution for theft of government money.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Anthony Charles Dwight Box, 57, of Plantation, Florida, previously pled guilty to one count of theft of government money, in violation of Title 18, United States Code, Section 641.
According to court documents, in late 2012, a federal income tax return was filed on behalf of Box for tax year 2011 that included a fake Form W-2G claiming gross gambling winnings of $3,775,000 from a poker tournament and claiming federal tax withholdings of $1,057,000. The defendant’s Form 1040 also claimed $3,525,266 in gambling losses, which were used to offset Box’s purported income from gambling winnings, thereby generating a claimed refund of $986,618.
The IRS approved payment of Box’s refund and applied over $250,000 to Box’s 2005 and 2006 tax liabilities and to non-IRS debt. The remainder of the refund was sent to Box via a United States Treasury check in the amount of $735,463.69. Box endorsed and deposited the check knowing that he was not entitled to the refund and that it did not belong to him.
The IRS determined that Box’s 2011 federal income tax return was fraudulent and the claimed gambling winnings, withholdings, and losses were false. The fraudulent misrepresentations on Box’s tax return resulted in a loss of $988,175 to the IRS.
Mr. Greenberg commended the investigative efforts of IRS-CI and the FBI. This case was prosecuted by Assistant U.S. Attorney Daya Nathan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bridgeport Felon Pleads Guilty to Possessing FirearmsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TYESHON KING, 31, of Bridgeport, pleaded guilty today in New Haven federal court to one count of possession of firearms and ammunition by a convicted felon.
According to court documents and statements made in court, on March 24, 2017, members of the FBI’s Bridgeport Safe Streets Task Force and Bridgeport Police Department conducted a court-authorized search of KING’s Bridgeport residence and seized a loaded 9mm semi-automatic pistol and a loaded .40 caliber semi-automatic pistol that had been reported stolen in Bridgeport in 2015. Investigators also seized items used to process and package narcotics for street sale.
KING’s criminal history includes a state conviction in May 2007 for attempted assault in the first degree. He received a sentence of 15 years of incarceration, suspended after three years, on that conviction.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
KING has been detained since his federal arrest on July 13, 2017. He is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on November 19, 2018, at which time he faces a maximum term of imprisonment of 10 years.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force, DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, and Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorneys Joseph Vizcarrondo and Dave Vatti.
Bleckley County Man Sentenced to Thirty Months Imprisonment for Making Threats Against Two United States SenatorsRead the Press Release
MACON: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Jason Kenneth Bell, age 41, of Cochran, Georgia, was sentenced to serve 30 months in prison on two counts of Anonymous Telecommunications Harassment. The sentence was handed down by U.S. District Court Judge Marc T. Treadwell on August 30, 2018.
In his plea agreement, Mr. Bell admitted that on March 1, 2017, he called the office of U.S. Senator Charles Schumer. Mr. Bell left several messages after first speaking with an intern. Mr. Bell did not identify himself in these calls, but he said he wished Senator Schumer did not have personal protection, and said that “I would hit you until I couldn’t lift my arms anymore.”
Mr. Bell further admitted that on October 23, 2017, he called the office of U.S. Senator Timothy Scott and, without identifying himself, stated that he was going to kill Senator Scott. During that call, Mr. Bell also asked “are we as a white people supposed to just stand for this injustice or do we do what Dylann Roof did” referring to the self-declared white supremacist convicted of murdering nine African-American worshipers and attempting to murder more at Emanuel African Methodist Episcopal Church in Charleston, South Carolina in 2015.
Following his release from prison, Mr. Bell will be placed under the supervision of the United States Probation office for a period of one year. He is prohibited from contacting Senator Schumer, Senator Scott, any of their respective offices, or any member of their staff.
“Mr. Bell’s repeated threatening, abusive, and harassing phone calls landed him a deserving place in federal prison,” said United States Attorney Charles E. Peeler. “Everyone has the right to express their views, no matter how distasteful, under the First Amendment, but no one has the right to threaten, abuse, or harass those they disagree with. When civil discourse crosses the line to criminal activity, my office will vigorously prosecute those who violate the law.”
The case was investigated by the Macon Office of the Federal Bureau of Investigation with assistance from the United States Capitol Police in Washington, D.C. Assistant United States Attorney C. Shanelle Booker prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Belmont Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
CONCORD - Joseph C. Callahan, 35, of Belmont, New Hampshire, pleaded guilty in federal court to possession of methamphetamine with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on July 31, 2017, the Belknap County Drug Task Force executed a search warrant at defendant Callahan's residence in Belmont, New Hampshire. During the search, officers recovered more than 30 grams of methamphetamine, three stolen firearms, drug paraphernalia, and $13,122 in cash that was subsequently forfeited.
Callahan is scheduled to be sentenced on December 6, 2018.
“Methamphetamine is a dangerous and deadly drug that is appearing in New Hampshire with increased frequency” said U.S. Attorney Murray. “This deadly substance poses a serious threat to our community and those who distribute it will be prosecuted aggressively. I commend the law enforcement officers whose efforts protected the public by stopping this individual’s drug dealing and also recovering several stolen guns.”
This matter was investigated by the Belknap County Drug Task Force, Belmont Police Department, Tilton Police Department, U.S. Drug Enforcement Administration, U.S. Marshals Service, Merrimack County Department of Corrections, Metro Las Vegas Police Department, and the Nevada Highway Patrol. The case is being prosecuted by Assistant U.S. Attorneys John S. Davis and Shane B. Kelbley.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Beckley Man Sentenced on Federal Gun ChargeRead the Press Release
BECKLEY, W.Va. – United States Attorney Mike Stuart announced that a Beckley man was sentenced yesterday to 36 months in federal prison on a gun charge. James David Morris Jr., 39, pled guilty in May to being a felon in possession of a firearm.
“Another felon with a firearm,” said United States Attorney Mike Stuart. “You would think the message would be clear – prohibited persons with guns will be prosecuted federally and put behind bars.”
Morris admitted that on October 14, 2017, he was riding a motorcycle in Harper Heights when he was stopped by a Raleigh County Sheriff’s Deputy, who found that Morris had a revolver in the waistband of his pants. The revolver was stolen. Morris was prohibited from possessing a firearm by virtue of his 2013 federal conviction of being an unlawful drug user in possession of a firearm.
The case was investigated by the Raleigh County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney John File prosecuted the case. United States District Judge Irene C. Berger imposed the sentence.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Beckley Man Pleads Guilty to Federal Drug and Gun ChargesRead the Press Release
BECKLEY, W.Va. – A Beckley man pled guilty yesterday to a federal methamphetamine distribution and gun crime, announced United States Attorney Mike Stuart. Jason Cook, 33, entered his guilty plea to distribution of methamphetamine and possession of a firearm during and in relation to a drug trafficking crime. U.S. Attorney Stuart commended the investigative efforts of the Beckley/Raleigh County Drug and Violent Crime Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
“Unfortunately, we see it far too often – a previously convicted felon selling firearms and drugs,” said United States Attorney Mike Stuart. “In partnership with ATF and state and local law enforcement, we have successfully prosecuted a significant number of these types of cases so far this year. This United States Attorney is committed to reducing the drug and violent crime that has plagued our communities for far too long.”
Cook admitted that on January 29, 2018, he sold methamphetamine, that he had manufactured himself, to a confidential informant working with the Beckley/Raleigh County Drug and Violent Crime Unit. At the same time that he sold the methamphetamine to the informant, he also sold a Taurus, Model 66, .357 caliber revolver handgun. Cook further admitted that he knew this was illegal, because he was a convicted felon and was not supposed to possess any firearms. Cook also admitted to selling heroin and methamphetamine to the same informant on different dates.
Cook faces up to 20 years in federal prison for the distribution of methamphetamine to be followed by a mandatory consecutive sentence of not less than 5 years for possessing the firearm during a drug trafficking offense when he is sentenced on December 5, 2018.
Assistant United States Attorneys Miller Bushong and Timothy D. Boggess are responsible for the prosecution. The plea hearing was held before United States District Judge Irene C. Berger.
This case is being prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Bay Area Medical Professionals Indicted for Kickback SchemeRead the Press Release
SAN JOSE - A federal grand jury in San Jose indicted three doctors and three additional health care workers with conspiracy to pay and receive kickbacks for health care referrals and the receipt and payment of kickbacks for health care referrals, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. One defendant also was charged with obstruction of justice.
According to the indictment, filed August 16, 2018, and unsealed today, between April 2013 and May 2017, three doctors, Abdelsalam Mogasbe, 51, of San Jose, Jaime Cortes, 52, of Vacaville, and James Nickolopous, 70, of San Leandro, conspired to receive kickback payments, and did receive such payments, in exchange for referring Medicare patients to Medics Choice Home Health, Inc, a Milpitas home health care agency. The indictment also alleges that three employees of Medics Choice, Felina Roque, 62, of Sunnyvale, Loreta Dario, 57, of Hayward, and Lorena Gerisomav, 40, of Vacaville, conspired with the doctors to pay, and actually did pay, kickbacks.
All six defendants were charged with one count of conspiracy to pay and receive remuneration for the referral of Medicare beneficiaries, in violation of 18 U.S.C. § 371. Cortes Mogasbe, and Nickolopoulos were each charged with three counts of receipt of remuneration for referral of a Medicare patient, in violation of 42 U.S.C. § 1320a-7b(b)(1)(A). Roque, the owner of Medics Choice, was charged with 16 counts of payment of remuneration for referral of a Medicare patient, in violation of 42 U.S.C. § 1320a-7b(b)(2)(A), and Dario and Gerisomav were each charged with three counts under the same statute.
The indictment also alleges that Roque obstructed an investigation into Medics Choice that was being conducted by the FBI. Specifically, the indictment alleges Roque threatened former employees of Medics Choice who were voluntarily interviewed by FBI agents. Roque was charged with one count of obstruction of justice, in violation of 18 U.S.C. § 1512(b)(3).
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum sentence of 5 years imprisonment and a fine of $250,000, plus restitution for each violation of 18 U.S.C. § 371; 5 years imprisonment and a fine of $25,000, plus restitution for each violation of 42 U.S.C. § 1320a-7b(b)(1)(A) and (2)(A); and 20 years imprisonment and a fine of $250,000, plus restitution for obstruction of justice, in violation of 18 U.S.C. § 1512(b)(3). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Patrick R. Delahunty is prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of an investigation by the FBI.
Aurora Man Sentenced for Fraud and Money LaunderingRead the Press Release
DENVER -- Justin Manning, age 40, of Aurora, Colorado, was sentenced to serve 22 months of incarceration followed by 3 years of supervised release by U.S. District Court Judge Wiley Y. Daniel for wire fraud and money laundering. Manning was also ordered to pay restitution of $830,000. The sentence was announced by U.S. Attorney Bob Troyer and IRS Criminal Investigation Special Agent in Charge Steven Osborne.
According to information contained in the indictment, between 2012 and 2015, Manning was employed as an asset protection manager and assistant store manager at a local Walmart. In those job positions, Manning had access to blank Money Network Checks used in Walmart’s Money Network System. Beginning in approximately October 2013 and continuing through January 2015, Manning fraudulently filled out money network checks, and caused others to fill out the checks, in the name of third parties in order to deceive other Walmart employees into believing they were legitimate checks. Manning used his management positions to access the store’s deposit bundles in a safe at the store and took cash from those deposit bundles. To hide the fact that he took the cash, defendant Manning created fake loans to one of the store’s cash registers. Manning then placed in those cash registers fraudulent Money Network Checks totaling the same amount as the cash taken so that the total balance would be correct and other Walmart employees would not realize cash had been taken from the safe. Manning also knowingly engaged in a financial transaction utilizing the proceeds of the wire fraud. Specifically, Manning transferred funds between accounts at a financial institution.
“I don’t suggest messing with our white collar prosecutors or IRS Criminal Investigators,” U.S. Attorney Bob Troyer said. “There’s no future in it. Except prison.”
"The role of IRS Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel," said Steven Osborne, Special Agent in Charge, Denver Field Office. “This sentence shows there are detrimental consequences for individuals who engage in financial fraud.”
This case was investigated by Internal Revenue Service – Criminal Investigation (IRS CI). This case was prosecuted by Assistant U.S. Attorney Pegeen Rhyne.
Asheville, N.C. Man Sentenced to Nine Years for Possessing and Receiving Child Pornography from the Dark WebRead the Press Release
ASHEVILLE, N.C. – Carl Jack Hall, 51, of Asheville, N.C. was sentenced today by U.S. District Judge Martin Reidinger to 108 months in prison on charges of possession and receipt of child pornography, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Judge Reidinger ordered Hall to serve a lifetime of supervised release and to register as a sex offender.
According to court documents, the prosecution of this case stems from the FBI’s investigation into “Playpen,” a sophisticated child pornography website that operated on the anonymous “TOR” network. Using the dark web, Playpen’s more than 150,000 total members, anonymously stored and shared with each other videos and images that depicted children being sexually abused. Court records show that the website also included discussion forums pertaining to the sexual exploitation of children, including tips for grooming children and avoiding detection by law enforcement.
Court documents show that, over the course of the investigation, the FBI identified a member of the website who went by the name “Amoura,” later determined to be Hall. In July 2015, law enforcement conducted a search warrant at Hall’s residence and seized his laptop. A forensic analysis of the laptop revealed that Hall possessed hundreds of images of children being sexually abused. A web browser for the TOR network was also located on the computer, and contained a bookmark for the Playpen website. Hall initially lied to an FBI agent about his knowledge of TOR, and denied any knowledge of child pornography or of the Playpen website on his device.
On January 19, 2018, a federal jury convicted Hall of possession and receipt of child pornography.
In making today’s announcement, U.S. Attorney Murray commended the work of the FBI and highlighted the success of this operation which to date has led to the arrest of at least 350 U.S.-based individuals nationwide, the prosecution of 25 producers of child pornography, and the prosecution of at least 51 alleged hands-on abusers. Also, 55 American children who were subjected to sexual abuse have been rescued.
The U.S. Attorney’s Office in Asheville prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Armed Robbers Sentenced to 15+ Years in PrisonRead the Press Release
WILMINGTON, Del. – Two men who robbed twenty stores in Delaware, Pennsylvania, and Maryland were sentenced today. Chief U.S. District Court Judge Leonard P. Stark sentenced Michael Kolmonen to 15 years in prison and Brian Branch to 16½ years in prison.
In the summer and fall of 2016, Branch and Kolmonen combined to rob twenty (20) stores, almost all of them together. In almost every robbery, Branch entered the store, brandished a gun, and demanded money from the register. The two men victimized thirty (30) people, most of whom were teenagers or the elderly. The victims were as young as 17 and as old as 76 years old. They robbed:
1. BP, 2360 Pulaski Highway, New Castle, DE
2. Walgreens 4114 Ogletown-Stanton Rd, Newark, DE
3. Walgreens 1500 Beaverbrook Plaza, New Castle, DE
4. Walgreens 2608 Naamans Creek Road, Boothwyn, PA
5. Walgreens 19 Marrows Road, Newark, DE
6. Rite Aid 738 Pulaski Highway, Elkton, MD
7. Walgreens 2719 Pulaski Highway, Newark, DE
8. Walgreens 372 Possum Park Road, Newark, DE
9. CVS 366 East Chestnut Hill Road, Newark, DE
10. CVS 1545 Pulaski Highway, Bear, Newark, DE
11. Dunkirk Liquors 2 Dunlinden Drive, Wilmington, DE
12. Walgreens 1508 Philadelphia Pike, Wilmington, DE
13. Walgreens 1120 Pulaski Highway, Bear, Newark, DE
14. Walgreens 2608 Naamans Creek Road, Boothwyn, PA
15. Walgreens 301 East Pulaski Highway, Elkton, MD
16. Rite Aid 501 East Basin Road, New Castle, DE
17. Papa John’s 529 East Basin Road, New Castle, DE
18. Rite Aid 4607 Stanton-Ogletown Road, Newark, DE
19. CVS 366 East Chestnut Hill Road, Newark, DE
20. Valero Shore Stop, 796 N. Old Baltimore Pike, New Castle, DE
In sentencing the defendants, Chief Judge Stark stated that the defendants engaged in a “reign of terror for several months and both defendants had equal roles in it.”
“These robberies were particularly brazen; the defendants robbed stores in broad daylight and their victims were often the most vulnerable among us—employees whose only crime was trying to make a living,” U.S. Attorney Weiss said. “This case was cracked because of the outstanding work of the Delaware State Police and the FBI Baltimore, Wilmington Office. They, like our office, are dedicated to rooting out violent crime and catching anyone who threatens our communities.”
Colonel Nathaniel McQueen Jr., Superintendent of the Delaware State Police shared, “The sentencing hearings were centered around the victims, and the lasting effect that these violent crimes had and will continue to have on their lives going forward. The investigation, arrest and successful prosecution of these individuals was a direct result of our continued partnerships with federal, state, and local jurisdictions in Delaware, Maryland, and Pennsylvania. There is no doubt that the open communication and coordination of resources throughout these agencies prevented others from being victimized.”
"Serial armed robbers like Mr. Kolmonen and Branch require more than ever close collaboration between the FBI and our local and state law enforcement partners to bring them to justice," said Gordon B. Johnson, Special Agent in Charge of the Baltimore FBI. “I am extremely proud of the collaborative effort put forth in order to ensure these defendant were brought to justice and will no longer be able to terrorize or threaten the hardworking citizens and businesses in both Delaware and Pennsylvania. The citizens of Delaware have the FBI’s commitment that we will work with our local, state and federal partners to remove violent criminals from their neighborhoods.”
This case was investigated by the FBI Baltimore, Wilmington Office, the Delaware State Police, Upper Darby (PA) Police Department, and Elkton (MD) Police Department. Assistant U.S. Attorney Alexander S. Mackler prosecuted the case.