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Monday 25 June 2018
Four Arrested in Columbus, More Than 22 Pounds of Fentanyl SeizedRead the Press Release
COLUMBUS, Ohio – Federal agents arrested four individuals today as part of a large-scale, drug-trafficking organization investigation.
Tomas Sandoval, Alvaro Gasca-Cardoso, Salatiel Ramos-Rajos and Alexis Zazueta-Soto have been charged with conspiracy to possess with intent to distribute fentanyl, methamphetamine and heroin.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA) and other members of the DEA’s Task Force announced the charges.
The four defendants appeared in federal court today at 1:30pm for initial appearances before U.S. Magistrate Judge Kimberly Jolson.
As part of the case, investigators executed a search warrant on Friday at a residence on South Napoleon Avenue in Columbus. Law enforcement officials seized 10 kilograms of fentanyl, one kilogram of methamphetamine and 10 ounces of heroin.
This investigation is ongoing.
U.S. Attorney Glassman commended the investigation of this case by the DEA and Assistant United States Attorney Timothy Prichard, who is prosecuting the case. The DEA Columbus office includes full-time task force officers from Ohio State Highway Patrol, Ohio Bureau of Criminal Investigation (BCI), Franklin and Madison county sheriff’s offices, Columbus, Upper Arlington, Westerville and Lancaster police departments, and the Columbus Airport Police Department.
A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.s
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Florida Man Sentenced to 10 Years in Federal Prison on Bomb ChargeRead the Press Release
Joshua Ryne Goldberg, 23, of Orange Park, Florida, was sentenced to 10 years in federal prison, to be followed by a lifetime of supervised release, for attempted malicious damage and destruction by an explosive of a building. Goldberg pleaded guilty on Dec. 20, 2017.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Maria Chapa Lopez for the Middle District of Florida, and Special Agent Charles P. Spencer FBI’s Jacksonville Field Office made the announcement after sentencing by U.S. District Judge Brian Davis.
According to the plea agreement, in the summer of 2015, the FBI and law enforcement officers from Australia began investigating the online name “AusWitness” and determined that it was Goldberg. He had come to the attention of law enforcement due in part to his postings concerning the May 3, 2015, attack by two gunmen at the Muhammad Art Exhibit and Contest in Garland, Texas. Prior to the attack, Goldberg posted a map of the location of the contest and urged anyone in the area to attack the event. Goldberg’s posting was copied by gunman Elton Simpson, one of the two individuals killed during the May 3, 2015, attack. The FBI later located an online posting in which Goldberg took responsibility for inspiring the Garland attack, as well as two other planned attacks.
In late July 2015, an FBI confidential human source (CHS) began exchanging messages with Goldberg as “AusWitness” on social media. Between July and mid-August 2015, Goldberg discussed getting an individual in Melbourne, Australia to carry out a terrorist attack and to have the CHS commit a bombing in the United States. During portions of those conversations, Goldberg sent the CHS five website links containing instructions for making an explosive device, including pipe bombs and other incendiary devices. On Aug. 20, 2015, Goldberg stated that he was thinking of pipe bombs at a large public event and later said that a pressure cooker bomb may be better. Later that month, Goldberg told the CHS that he had found the “perfect place” to target on Sept. 13, 2015, and sent the CHS a link to a Kansas City, Missouri firefighter’s event that memorialized first responders that had been killed in the September 11th attacks. On Aug. 27, 2015, Goldberg instructed the CHS to place the bomb near the crowd at the memorial event and to ensure it was very well hidden.
The following day, Goldberg provided the CHS with a list of items to use in the pressure cooker bomb, including shards of metal, nails and broken glass. He then instructed the CHS to dip screws and other shrapnel in rat poison before putting them in the pressure cooker bomb in order to inflict more casualties. Goldberg stated he would post a video of the bombing. A forensic analysis of the bomb making information determined that it could have been used to make explosives that would cause property damage, personal injury and/or death.
This case was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force (JTTF) and the Clay County Sheriff’s Office. Members of the Jacksonville JTTF include the FBI, the Naval Criminal Investigative Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, U.S. Border Patrol, the Florida Department of Law Enforcement, Florida Highway Patrol, the St. Johns County Sheriff’s Office, and the Jacksonville Sheriff’s Office.
This case was prosecuted by Assistant U.S. Attorney Kevin C. Frein of the Middle District of Florida, with assistance provided by Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section.
Florida Man Sentenced to 10 Years in Federal Prison on Bomb ChargeRead the Press Release
Jacksonville, FL – Joshua Ryne Goldberg, 23, of Orange Park, Florida, was sentenced to 10 years in federal prison, to be followed by a lifetime of supervised release, for attempted malicious damage and destruction by an explosive of a building. Goldberg pleaded guilty on Dec. 20, 2017.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Maria Chapa Lopez for the Middle District of Florida, and Special Agent Charles P. Spencer of the FBI’s Jacksonville Field Office made the announcement after sentencing by U.S. District Judge Brian Davis.
According to the plea agreement, in the summer of 2015, the FBI and law enforcement officers from Australia began investigating the online name “AusWitness” and determined that it was Goldberg. He had come to the attention of law enforcement due in part to his postings concerning the May 3, 2015, attack by two gunmen at the Muhammad Art Exhibit and Contest in Garland, Texas. Prior to the attack, Goldberg posted a map of the location of the contest and urged anyone in the area to attack the event. Goldberg’s posting was copied by gunman Elton Simpson, one of the two individuals killed during the May 3, 2015, attack. The FBI later located an online posting in which Goldberg took responsibility for inspiring the Garland attack, as well as two other planned attacks.
In late July 2015, an FBI confidential human source (CHS) began exchanging messages with Goldberg as “AusWitness” on social media. Between July and mid-August 2015, Goldberg discussed getting an individual in Melbourne, Australia to carry out a terrorist attack and to have the CHS commit a bombing in the United States. During portions of those conversations, Goldberg sent the CHS five website links containing instructions for making an explosive device, including pipe bombs and other incendiary devices. On Aug. 20, 2015, Goldberg stated that he was thinking of pipe bombs at a large public event and later said that a pressure cooker bomb may be better. Later that month, Goldberg told the CHS that he had found the “perfect place” to target on Sept. 13, 2015, and sent the CHS a link to a Kansas City, Missouri firefighter’s event that memorialized first responders that had been killed in the September 11th attacks. On Aug. 27, 2015, Goldberg instructed the CHS to place the bomb near the crowd at the memorial event and to ensure it was very well hidden.
The following day, Goldberg provided the CHS with a list of items to use in the pressure cooker bomb, including shards of metal, nails and broken glass. He then instructed the CHS to dip screws and other shrapnel in rat poison before putting them in the pressure cooker bomb in order to inflict more casualties. Goldberg stated he would post a video of the bombing. A forensic analysis of the bomb making information determined that it could have been used to make explosives that would cause property damage, personal injury and/or death.
This case was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force (JTTF) and the Clay County Sheriff’s Office. Members of the Jacksonville JTTF include the FBI, the Naval Criminal Investigative Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, U.S. Border Patrol, the Florida Department of Law Enforcement, Florida Highway Patrol, the St. Johns County Sheriff’s Office, and the Jacksonville Sheriff’s Office.
This case was prosecuted by Assistant U.S. Attorney Kevin C. Frein of the Middle District of Florida, with assistance provided by Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section.
Final Defendant Sentenced on Federal Conspiracy ChargesRead the Press Release
St. Louis, MO – Yakov Pisman, was sentenced to 87 months in prison for conspiring to traffic in contraband cigarettes and money laundering.
According to court documents, Pisman and others conspired for more than four years to buy contraband cigarettes in St. Louis, Missouri and Atlanta, Georgia, low tax markets, and transport and distribute them in New York, a high tax market. Multiple New York and St. Louis residents and co-defendants including Oleksandr Zyuz, Sergei Kishchenko, Mykalo Zyuz, Volodymr Zyuz have been sentenced to terms ranging between 30 to 60 months imprisonment. Illegal profits from the contraband cigarette sales were laundered through numerous accounts associated with the defendants and their fictitious companies. The amount of laundered money was in excess of $56 million dollars. Pisman was one of the leaders of the organization and guided the operations in St. Louis, Atlanta and New York.
Pisman, 60, of New York, NY, pled guilty on February 21, 2018, 2018 to two felony counts of conspiracy to commit money laundering and trafficking in contraband cigarettes. He appeared today for sentencing in front of U.S. District Judge Ronnie White.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Internal Revenue Service – Criminal Investigation Division, and various state and local authorities.
Federal Court Shuts Down Florida Tax Return PreparerRead the Press Release
Today, a federal court in Miami permanently barred Jessyca Bernard from preparing federal tax returns for others, the Justice Department announced today. The civil injunction order, to which Bernard agreed, was signed by Chief Judge K. Michael Moore of the U.S. District Court for the Southern District of Florida.
The complaint alleges that Bernard, of Lauderhill, Florida, owned and operated Proper Taxes, Inc. in Miami Gardens, Florida. According to the complaint, Bernard fabricated losses for her customers’ side businesses in order to secure refunds to which her customers were not entitled. In one example cited in the complaint, Bernard prepared a customer’s tax returns that reported losses of more than $27,000 and $22,000 based upon fictitious expenditures for supplies, utilities, and medical expenses. Bernard also prepared a customer’s return that fabricated more than $11,000 in losses, including $8,000 in supplies for the customer’s side business of washing cars on weekends, according to the complaint.
Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2018 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on its website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Federal Charges Accuse Owners of Suburban Bulk-Mailing Company of Defrauding the Postal Service out of $16 MillionRead the Press Release
CHICAGO — The owners of a suburban bulk-mailing company swindled the U.S. Postal Service out of at least $16 million by forging documents and secretly using an official date stamp to fraudulently authenticate payment of postage for than 80 million pieces of mail, according to criminal charges filed today by the U.S. Attorney’s Office in Chicago.
YOGESH PATEL and ARVIND LAKKAMSANI owned and operated Prodigy Mailing Services Inc., which was based in Bolingbrook and later in Woodridge. Prodigy assembled bulk mailings from customers and provided the mailings – along with fraudulent payment and verification forms – to the Postal Service for delivery, without paying postage on those mailings. According to the charges, Patel and Lakkamsani schemed with a third defendant, DAVID GARGANO, to fraudulently cause the Postal Service to deliver numerous bulk mailings without payment. The trio forged a Postal Service clerk’s signature on the verification forms and secretly used an official Postal Service date stamp to make it falsely appear that the clerk had authenticated postage, the charges allege.
From 2010 to 2015, the defendants caused a loss to the Postal Service of at least $16 million, according to the charges.
A criminal information charges each of the three defendants – Patel, 58, of Orlando, Fla., Lakkamsani, 57, of Northbrook, Ill., and Gargano, 51, of Barrington, Ill. – with one count of mail fraud. Arraignments in U.S. District Court in Chicago have not yet been scheduled.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and William Hedrick, Acting Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.
According to the charges, Gargano owned Illinois-based Direct Mail Resources Inc., which collected a fee to match customers seeking to make bulk mailings with companies who could perform those services, such as Prodigy. Gargano referred two energy companies to Prodigy for bulk mailing services. The two energy companies provided millions of dollars to the defendants to pay the postage for the companies’ bulk mailings. Instead of using those funds to pay the postage, the defendants split the money amongst themselves and used it for their own benefit, the charges allege.
The information alleges that the defendants made the mailings but kept the postage money from the energy companies without paying postage to the Postal Service. Patel and Lakkamsani fraudulently maintained a key to a Postal Service mail unit, which was located inside Prodigy’s facility, and used the key to secretly access an official date-stamp without the Postal Service’s knowledge or approval, the information states. By forging the Postal clerk’s signature and fraudulently stamping the mailings, the defendants made it falsely appear that the verification forms – which identified the amount of postage paid for the bulk mailings – were authentic and that postage had been appropriately paid, the charges allege.
The public is reminded that an information is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Mail fraud is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Jacqueline Stern.
El Departamento de Justicia Resuelve Denuncias Relacionadas con la Discriminación Presentadas en contra de J.C. PenneyRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con J.C. Penney Corporation, Inc. («J.C. Penney»). El acuerdo resuelve dos investigaciones: la primera para determinar si J.C. Penney rechazó ilegalmente el documento válido de autorización para trabajar de una residente permanente legal, la segunda para comprobar si J.C. Penney vulneró la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al reverificar de forma ilícita la autorización para trabajar de ciertos trabajadores no ciudadanos estadounidenses por motivos de su estatus de ciudadanía.
La primera investigación del Departamento fue el resultado de una denuncia presentada por una residente permanente legal que alegó que J.C. Penney había vulnerado la disposición antidiscriminatoria de la INA al despedirla en agosto del 2016. La investigación halló que J.C. Penney había rechazado, de manera incorrecta, la tarjeta de residencia permanente en vigor de la trabajadora como prueba de su autorización para trabajar, con base en su estatus de ciudadanía. La segunda investigación halló que J.C. Penney, de forma ilícita, había reverificado la autorización para trabajar de ciertos trabajadores no ciudadanos estadounidenses con base únicamente en su estatus de ciudadanía, aunque aquellos que no eran ciudadanos habían presentado el mismo tipo de documentos válidos de autorización para trabajar que presentaron ciudadanos estadounidenses cuando recién fueron contratados. Asimismo, el Departamento descubrió que J.C. Penney había solicitado ilegalmente, documentos migratorios específicos de ciertos trabajadores durante el proceso de reverificación de su autorización para trabajar por motivos de su estatus migratorio. Entre otras cosas, la INA prohíbe que los empleadores: (1) rechacen documentos válidos de autorización para trabajar; (2) limiten los documentos entre los que un trabajador puede escoger para fines relacionados con la verificación o reverificación para el empleo; y (3) sometan a empleados a solicitudes de documentos diferentes o innecesarias, con base en la ciudadanía, estatus migratorio o nacionalidad de origen del empleado.
Conforme los términos del acuerdo, J.C. Penney pagará sanciones civiles a los Estados Unidos que ascienden a $14.430, dará $11.177,60 en pagos retroactivos a la trabajadora que presentó la denuncia, capacitará a su personal general y el de la oficina corporativa, publicará avisos para informar a los trabajadores acerca de sus derechos y se someterá a los requisitos de supervisión y declaración del Departamento.
«Los empleadores no deben imponer cargas discriminatorias e ilícitas en sus empleados por motivos de su estatus migratorio o de ciudadanía durante el proceso de reverificación», declaró John Gore, el Fiscal General Auxiliar en funciones. «Es esencial que todo empleador capacite correctamente a sus empleados en cuanto a los procedimientos correctos para el Formulario I-9, tanto en la contratación inicial como en la reverificación. Estoy muy contento que J.C. Penney haya acordado someterse a tal capacitación».
La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), que anteriormente se conocía como la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración, que pertenece a la División, es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas; y represalias y la intimidación.
Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias, llame a la línea directa de la IER para trabajadores al 1‑800‑255-7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscríbase a un seminario en línea gratuito; mande un correo electrónico a [email protected] o visite la página web de la IER en inglés o español.
Aquellos postulantes o empleados que creen haber sido sometidos a otros requisitos documentales por motivos de su nacionalidad de origen o su estatus migratorio o de ciudadanía en los procesos de contratación, despido o reclutamiento o recomendación por comisión deben llamar a la línea directa de la IER para trabajadores para pedir ayuda.
Eight Arrested in Africa-Based Cybercrime and Business Email Compromise ConspiracyRead the Press Release
Memphis, TN – In accordance with the Justice Department’s recent efforts to disrupt business email compromise (BEC) schemes that are designed to intercept and hijack wire transfers from businesses and individuals, including many senior citizens, the Department announced Operation Keyboard Warrior, an effort coordinated by United States and international law enforcement to disrupt online frauds perpetrated from Africa. Eight individuals have been arrested for their roles in a widespread, Africa-based cyber conspiracy that allegedly defrauded U.S. companies and citizens of approximately $15 million since at least 2012.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney D. Michael Dunavant of the Western District of Tennessee, Executive Assistant Director David T. Resch of the FBI and Acting Special Agent in Charge William C. Hoffman of the FBI Memphis Field Office, made the announcement today.
Five individuals were arrested in the United States for their roles in the conspiracy including Javier Luis Ramos Alonso, 28, a Mexican citizen residing in Seaside, California; James Dean, 65, of Plainfield, Indiana; Dana Brady, 61, of Auburn, Washington; Rashid Abdulai, 24, a Ghanaian citizen residing in the Bronx, New York, who has been charged in a separate indictment; and Olufolajimi Abegunde, 31, a Nigerian citizen residing in Atlanta, Georgia. Maxwell Atugba Abayeta aka Maxwell Peter, 26, and Babatunde Martins, 62, of Ghana and Benard Emurhowhoariogho Okorhi, 39, a Nigerian citizen who resides in Ghana, have been arrested overseas and are pending extradition proceedings to face charges filed in the Western District of Tennessee.
The indictment also charges Sumaila Hardi Wumpini, 29; Dennis Miah, 34; Ayodeji Olumide Ojo, 35, and Victor Daniel Fortune Okorhi, 35, all of whom remain at large. Abegunde had his detention hearing today before U.S. District Court Judge Sheryl H.
Lipman of the Western District of Tennessee, who ordered him detained pending trial, which has been set for October 9, 2018.
"The defendants allegedly unleashed a barrage of international fraud schemes that targeted U.S. businesses and individuals, robbing them to the tune of approximately $15 million," said Acting Assistant Attorney General Cronan. "The Department of Justice will continue to work with our international partners to aggressively disrupt and dismantle criminal enterprises that victimize our citizens and businesses."
U.S. Attorney D. Michael Dunavant said: "Frauds perpetrated through the Internet cause significant financial harm to businesses and individuals in our District and throughout the United States. Because those committing Internet fraud hide behind technology, the cases are difficult – but not impossible – to investigate. We will continue to deploy our resources to take on these difficult cases and seek justice for citizens harmed by Internet scammers."
"The devastating effects that cybercrime and business email compromise have on victims and victim companies cannot be understated, and the FBI has made it a priority to work with our law enforcement partners around the world to end these fraud schemes and protect the hard-earned assets of our citizens," said William C. Hoffman, Acting Special Agent in Charge of the Memphis Field Office of the Federal Bureau of Investigation. "These charges are the result of the diligence, hard work and tenacity of the best and smartest investigators and prosecutors, to overcome the challenges faced when dealing with sophisticated efforts to hide criminal activity that involves numerous people in multiple countries, and should send a signal that criminals will not go undetected and will be held accountable, regardless of where they are."
The indictment was returned by a grand jury in the U.S. District Court for the Western District of Tennessee on Aug. 23, 2017, and charges the defendants with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, conspiracy to commit computer fraud, and aggravated identity fraud.
The indictment alleges that the Africa-based co-conspirators committed, or caused to be committed, a series of intrusions into the servers and email systems of a Memphis-based real estate company in June and July 2016. Using sophisticated anonymization techniques, including the use of spoofed email addresses and Virtual Private Networks, the co-conspirators identified large financial transactions, initiated fraudulent email correspondence with relevant business parties, and then redirected closing funds through a network of U.S.-based money mules to final destinations in Africa. Commonly referred to as business email compromise, or BEC, this aspect of the scheme caused hundreds of thousands in loss to companies and individuals in Memphis.
In addition to BEC, the Africa-based defendants are also charged with perpetrating, or causing to be perpetrated, various romance scams, fraudulent-check scams, gold-buying scams, advance-fee scams, and credit card scams. The indictment alleges that the proceeds of these criminal activities, both money and goods, were shipped and/or transferred from the United States to locations in Ghana, Nigeria, and South Africa
through a complex network of both complicit and unwitting individuals that had been recruited through the various Internet scams. The defendants are also charged with concealing their conduct by, among other means, stealing or fraudulently obtaining personal identification information (PII) and using that information to create fake online profiles and personas. Through all their various schemes, the defendants are believed to have caused millions in loss to victims across the globe.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI led the investigation. The FBI’s Transnational Organized Crime of the Eastern Hemisphere Section of the Criminal Investigative Division, Major Cyber Crimes Unit of the Cyber Division, and International Organized Crime Intelligence and Operations Center all provided significant support in this case, as did INTERPOL Washington, the U.S. Marshals Service, and the U.S. Attorney’s Offices of the Northern District of Georgia, Western District of Washington, Central District of California, Southern District of New York, and the Northern District of Illinois.
Senior Trial Attorney Timothy C. Flowers of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Debra L. Ireland of the U.S. Attorney’s Office for the Western District of Tennessee are prosecuting the case, with significant assistance from the Department of Justice’s Office of International Affairs.
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Eight Arrested in Africa-Based Cybercrime and Business Email Compromise ConspiracyRead the Press Release
In accordance with the Justice Department’s recent efforts to disrupt business email compromise (BEC) schemes that are designed to intercept and hijack wire transfers from businesses and individuals, including many senior citizens, the Department announced Operation Keyboard Warrior, an effort coordinated by United States and international law enforcement to disrupt online frauds perpetrated from Africa. Eight individuals have been arrested for their roles in a widespread, Africa-based cyber conspiracy that allegedly defrauded U.S. companies and citizens of approximately $15 million since at least 2012.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney D. Michael Dunavant of the Western District of Tennessee and Executive Assistant Director David T. Resch of the FBI, made the announcement today.
Five individuals were arrested in the United States for their roles in the conspiracy including Javier Luis Ramos Alonso, 28, a Mexican citizen residing in Seaside, California; James Dean, 65, of Plainfield, Indiana; Dana Brady, 61, of Auburn, Washington; Rashid Abdulai, 24, a Ghanaian citizen residing in the Bronx, New York, who has been charged in a separate indictment; and Olufolajimi Abegunde, 31, a Nigerian citizen residing in Atlanta, Georgia. Maxwell Atugba Abayeta aka Maxwell Peter, 26, and Babatunde Martins, 62, of Ghana and Benard Emurhowhoariogho Okorhi, 39, a Nigerian citizen who resides in Ghana, have been arrested overseas and are pending extradition proceedings to face charges filed in the Western District of Tennessee.
The indictment also charges Sumaila Hardi Wumpini, 29; Dennis Miah, 34; Ayodeji Olumide Ojo, 35, and Victor Daniel Fortune Okorhi, 35, all of whom remain at large. Abegunde had his detention hearing today before U.S. District Court Judge Sheryl H. Lipman of the Western District of Tennessee, who ordered him detained pending trial, which has been set for Oct. 9.
“The defendants allegedly unleashed a barrage of international fraud schemes that targeted U.S. businesses and individuals, robbing them to the tune of approximately $15 million,” said Acting Assistant Attorney General Cronan. “The Department of Justice will continue to work with our international partners to aggressively disrupt and dismantle criminal enterprises that victimize our citizens and businesses.”
“Today, the FBI and our partners are announcing indictments as part of Operation Keyboard Warrior,” said FBI Executive Assistant Director Resch. “Following the success of Operation WireWire in early June, these indictments continue to demonstrate the FBI’s commitment to working with our partners around the globe to disrupt and dismantle criminal enterprises that target Americans and their businesses. This should stand as a warning that our work is not over, and we will continue to work together with our law enforcement partners to put an end to these fraud schemes. I want to thank all the agents and analysts at the FBI, our partners at the Department of Justice, and our Ghanaian partners at the Economic and Organised Crime Office for all their tireless work to continue to pursue this issue at every turn.”
The indictment was returned by a grand jury in the U.S. District Court for the Western District of Tennessee on Aug. 23, 2017, and charges the defendants with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, conspiracy to commit computer fraud, and aggravated identity fraud.
The indictment alleges that the Africa-based coconspirators committed, or caused to be committed, a series of intrusions into the servers and email systems of a Memphis-based real estate company in June and July 2016. Using sophisticated anonymization techniques, including the use of spoofed email addresses and Virtual Private Networks, the coconspirators identified large financial transactions, initiated fraudulent email correspondence with relevant business parties, and then redirected closing funds through a network of U.S.-based money mules to final destinations in Africa. Commonly referred to as business email compromise, or BEC, this aspect of the scheme caused hundreds of thousands in loss to companies and individuals in Memphis.
In addition to BEC, some of the Africa-based defendants are also charged with perpetrating, or causing to be perpetrated, various romance scams, fraudulent-check scams, gold-buying scams, advance-fee scams, and credit card scams. The indictment alleges that the proceeds of these criminal activities, both money and goods, were shipped and/or transferred from the United States to locations in Ghana, Nigeria, and South Africa through a complex network of both complicit and unwitting individuals that had been recruited through the various Internet scams. Some of the defendants are also charged with concealing their conduct by, among other means, stealing or fraudulently obtaining personal identification information (PII) and using that information to create fake online profiles and personas. Through all their various schemes, the defendants are believed to have caused millions in loss to victims across the globe.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI led the investigation. The FBI’s Transnational Organized Crime of the Eastern Hemisphere Section of the Criminal Investigative Division, Major Cyber Crimes Unit of the Cyber Division, the Legal Attaché in Accra, and International Organized Crime Intelligence and Operations Center all provided significant support in this case, as did the Ghanaian Economic and Organised Crime Office, INTERPOL Washington, the U.S. Marshals Service, and the U.S. Attorney’s Offices of the Northern District of Georgia, Western District of Washington, Central District of California, Southern District of New York, and the Northern District of Illinois.
Senior Trial Attorney Timothy C. Flowers of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Debra L. Ireland of the U.S. Attorney’s Office for the Western District of Tennessee are prosecuting the case, with significant assistance from the Department of Justice’s Office of International Affairs.
Disbarred Attorney Sentenced to 4 Years in Federal Prison in Million-Dollar Mortgage Modification Scam Targeting O.C. HomeownersRead the Press Release
SANTA ANA, California – A disbarred California attorney who previously pleaded guilty in a mortgage modification scheme that defrauded about 75 distressed Orange County homeowners out of more than $1 million was sentenced today to four years in federal prison.
Moses S. Hall, 63, a resident of Blackwood, New Jersey, who formerly had a law practice in Fullerton, was sentenced in the fraud scheme by United States District Judge Cormac J. Carney.
Hall pleaded guilty in July 2017 to one count of wire fraud and one count of obstructing the due administration of the IRS.
According to court documents, Hall operated his mortgage modification scheme from 2008 until 2012 through his law office, as well as businesses called “Salva Casas” and “Loan Modifications of America.” As part of his guilty pleas, Hall admitted that he told distressed homeowners to stop making their mortgage payments, and instead direct their monthly mortgage payments to him, purportedly so he could use that money to negotiate with the banks. Instead, Hall used the victims’ money for himself.
According to evidence in the case, Hall concealed from victims that he was using their money to pay for personal expenses and that he was a previously convicted felon who had served years in state prison in New Jersey prior to being admitted as an attorney in California.
By pleading guilty to obstructing the IRS, Hall admitted that he failed to file tax returns for the years 2008 through 2012. During those years, Hall conducted many cash transactions, including withdrawing more than $1 million in cash from 2008 to 2011, often on the same day from multiple different locations and different accounts. Moreover, Hall admitted that when he was interviewed in December 2015, he lied to IRS Special Agents about his use of that money.
During today’s sentencing hearing, several victims addressed the court and highlighted that they had lost their homes after following Hall’s advice. One of those victims paid more than $400,000 to Hall. During today’s hearing, Judge Carney noted that Hall had “betrayed the trust” of his clients.
In 2012, Hall was disbarred for as a result of the mortgage modification scheme, and the State Bar of California paid 12 victims a total of $340,000.
“Hall stipulated to nine counts of misconduct in three loan modification matters,” according to a summary of the case published by the State Bar of California. “In each case, he advised his clients to stop making mortgage payments and they lost their homes to foreclosure. All the clients were current on their mortgage payments when they hired Hall.”
In addition to the 48-month prison term, Judge Carney today ordered Hall to pay restitution to the victims and the Internal Revenue Service. The exact amount of restitution will be determined at a future hearing.
The investigation into Hall was conducted by IRS Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the United States Secret Service. The State Bar of California, Office of Chief Trial Counsel, provided assistance during the investigation
Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office prosecuted this case.
Charlotte Investment Fund Operator Sentenced to 7.5 Years for Securities Fraud and Tax EvasionRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad, Jr. sentenced Richard Wyatt Davis, Jr. 41, formerly of Cornelius, N.C., to 90 months in prison and two years of supervised release for securities fraud and tax evasion, announced the U.S. Attorney’s Office for the Western District of North Carolina.
Reginald DeMatteis, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, and Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) join the U.S. Attorney’s Office in making today’s announcement.
According to filed documents and today’s court proceedings, between 2010 and February 2015, Davis defrauded approximately 75 victims of $9.3 million, by inducing them to invest in investment funds Davis controlled, such as DCG Real Assets, as well as other investments, including H2O, LLC and Basalt Exploration. According to court records, Davis recruited his victim-investors by making a series of false and fraudulent representations about where their money would be invested. For example, Davis told investors that he would use their funds to invest in natural resources and assets such as real estate, gold mines, and water production, and touted these investments as a safe alternative to the stock market.
In reality, Davis used investor funds to pay for administrative and overhead expenses and to repay other investors. Davis also used some of the money to make direct and indirect payments to himself. Court records show that Davis assured victims that their assets were growing in value despite lacking sufficient financial information to make these claims.
According to court records, Davis generally targeted investors residing in and around Charlotte. His clients included professional athletes and individuals Davis recruited through his church. Davis also spoke at events for “preppers” and survivalists, thereby targeting victim-investors who were fearful of the stock market and the banking system. Davis preyed upon these investors’ fears of traditional financial markets and took advantage of their trust into someone who shared their religious views. Court records show that a number of Davis’s victim investors had rolled over their entire retirement savings into his funds.
According to filed documents and today’s court proceedings, for tax years 2009 through 2012, Davis transferred more than $5 million of investor funds into bank accounts in his own name and in the names of Richard Davis Enterprises and Davis Financial, Inc. Davis used some of these funds, as well as funds directly out of other accounts of Davis’s businesses, on personal expenditures totaling over $2 million. However, Davis filed false tax returns for 2009 and 2011, which reflected negative total income and failed to file individual income tax returns for 2010 and 2012.
In announcing today’s sentence, Judge Conrad said that the defendant engaged in “very significant fraudulent conduct” for a long period of time, causing harm to many and noted that he put “victims in a position from which they can never recover.” Judge Conrad emphasized the need for the sentence to reflect the seriousness of the offense, but he also considered the need to avoid unwarranted sentencing disparities.
The investigation was handled by the USSS and IRS-CI. Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte and Assistant U.S. Attorney Daniel Bradley of the U.S. Attorney’s Office in Asheville prosecuted the case.
Caris Agrees to Pay $8.5 Million to Settle False Claims Act Lawsuit Alleging That it Billed for Ineligible Hospice PatientsRead the Press Release
WASHINGTON – Caris Healthcare, L.P. and its wholly-owned subsidiary, Caris Healthcare, LLC (“Caris Healthcare”), have agreed to resolve allegations that they violated the False Claims Act by knowingly submitting false claims, and knowingly retaining overpayments, for the care of patients who were ineligible for the Medicare hospice benefit because they were not terminally ill, the Department of Justice announced today. Under the settlement agreement, Caris Healthcare, a for-profit hospice chain that operates in Tennessee, Virginia, and South Carolina, has agreed to pay $8.5 million.
The settlement resolves allegations that Caris Healthcare admitted and recertified patients for hospice care that were ineligible for the hospice benefit. The government’s complaint alleged that, in an effort to meet the aggressive admissions and census targets set by the company, Caris admitted patients whose medical records did not support a terminal prognosis. The government’s complaint further alleged that when Caris was alerted to the ineligibility of these patients—via internal audits, concerns raised by its Chief Medical Officer, and recommendations of its nurse employees who actually examined the patients—Caris not only continued to submit hospice claims to Medicare for the patients, but also took no meaningful action to determine whether it had previously received improper payments for these and other patients that should have been returned to Medicare.
“Today’s settlement is an important reminder that compliance programs and activities cannot exist in name only. When a healthcare provider is put on notice that a patient is ineligible for a particular Medicare benefit or service, the healthcare provider cannot turn a blind eye to that information but, instead, must take reasonable steps to stop the improper conduct and to determine whether that conduct resulted in prior overpayments,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Moreover, when internal audit results or other information reveals the existence of a compliance issue that is not limited to a particular claim, as was the case here, it is incumbent on providers to exercise due diligence to determine how widespread the problem is and to return any overpayments.”
“It is completely unacceptable for providers to retain overpayments from Medicare after being put on notice of the likelihood of such overpayments. Under the law, providers must go beyond merely conducting audits and providing forums for employee concerns. Rather, when Medicare rule violations have been revealed, the provider must take meaningful action to correct them, including repaying Medicare for funds they improperly received. Such corrective actions are vital to the integrity of the Medicare program, and the U.S. Attorney’s Office will continue to use the resources available to it to ensure the government is properly reimbursed for funds it is owed,” said J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee.
“We have significant expertise in investigating hospice fraud, as this part of the country unfortunately has seen more than its share of these schemes,” said Special Agent in Charge Derrick L. Jackson for the Office of Inspector General for the region including Tennessee. “When hospices increase their bottom lines by billing taxpayers for unneeded services, they are diverting money from vulnerable, terminally-ill individuals. Worse yet, these patients may not be receiving care for medical needs that would otherwise be covered in a non-hospice setting.”
The settlement resolves allegations filed in a lawsuit by Barbara Hinkle, a registered nurse who formerly worked for Caris Healthcare, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. The whistleblower’s share will be $1,402,500.
This matter was handled on behalf of the government by the U.S. Attorney’s Office for the Eastern District of Tennessee, the Justice Department’s Civil Division, and the Department of Health and Human Services Office of the Inspector General.
The case is captioned United States ex rel. Hinkle v. Caris Healthcare, L.P., et al., Case No. 3:14-cv-212 (E.D. Tenn.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Caris Agrees to Pay $8.5 Million Court Settle False Claims Act Lawsuit Alleging That it Billed for Ineligible Hospice PatientsRead the Press Release
KNOXVILLE, Tenn. – Caris Healthcare, L.P. and its wholly-owned subsidiary, Caris Healthcare, LLC (“Caris Healthcare”), have agreed to resolve allegations that they violated the False Claims Act by knowingly submitting false claims, and knowingly retaining overpayments, for the care of patients who were ineligible for the Medicare hospice benefit because they were not terminally ill, the Department of Justice announced today. Under the settlement agreement, Caris Healthcare, a for-profit hospice chain that operates in Tennessee, Virginia, and South Carolina, has agreed to pay $8.5 million.
The settlement resolves allegations that Caris Healthcare admitted and recertified patients for hospice care that were ineligible for the hospice benefit. The government’s complaint alleged that, in an effort to meet the aggressive admissions and census targets set by the company, Caris admitted patients whose medical records did not support a terminal prognosis. The government’s complaint further alleged that when Caris was alerted to the ineligibility of these patients—via internal audits, concerns raised by its Chief Medical Officer, and recommendations of its nurse employees who actually examined the patients—Caris not only continued to submit hospice claims to Medicare for the patients, but also took no meaningful action to determine whether it had previously received improper payments for these and other patients that should have been returned to Medicare.
“Today’s settlement is an important reminder that compliance programs and activities cannot exist in name only. When a healthcare provider is put on notice that a patient is ineligible for a particular Medicare benefit or service, the healthcare provider cannot turn a blind eye to that information but, instead, must take reasonable steps to stop the improper conduct and to determine whether that conduct resulted in prior overpayments,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Moreover, when internal audit results or other information reveals the existence of a compliance issue that is not limited to a particular claim, as was the case here, it is incumbent on providers to exercise due diligence to determine how widespread the problem is and to return any overpayments.”
“It is completely unacceptable for providers to retain overpayments from Medicare after being put on notice of the likelihood of such overpayments. Under the law, providers must go beyond merely conducting audits and providing forums for employee concerns. Rather, when Medicare rule violations have been revealed, the provider must take meaningful action to correct them, including repaying Medicare for funds they improperly received. Such corrective actions are vital to the integrity of the Medicare program, and the U.S. Attorney’s Office will continue to use the resources available to it to ensure the government is properly reimbursed for funds it is owed,” said J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee.
“We have significant expertise in investigating hospice fraud, as this part of the country unfortunately has seen more than its share of these schemes,” said Special Agent in Charge Derrick L. Jackson for the Office of Inspector General for the region including Tennessee. “When hospices increase their bottom lines by billing taxpayers for unneeded services, they are diverting money from vulnerable, terminally-ill individuals. Worse yet, these patients may not be receiving care for medical needs that would otherwise be covered in a non-hospice setting.”
The settlement resolves allegations filed in a lawsuit by Barbara Hinkle, a registered nurse who formerly worked for Caris Healthcare, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. The whistleblower’s share will be $1,402,500.
This matter was handled on behalf of the government by the U.S. Attorney’s Office for the Eastern District of Tennessee, the Justice Department’s Civil Division, and the Department of Health and Human Services Office of the Inspector General.
The case is captioned United States ex rel. Hinkle v. Caris Healthcare, L.P., et al., Case No. 3:14-cv-212 (E.D. Tenn.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Bridgeville Suboxone Clinic Owner Pleads Guilty to Filing False Tax ReturnsRead the Press Release
PITTSBURGH, PA - A resident of Washington County, Pennsylvania, pleaded guilty in federal court to charges of false income tax returns, United States Attorney Scott W. Brady announced today.
Allan W. Clark, M.D. pleaded guilty to three counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Clark was the owner and operator of the South Hills Recovery Project (SHRP), a strictly cash based suboxone clinic located in Bridgeville, Pa. A patient’s first visit fee during the relevant times was $250. The follow up monthly visits were $150. Over the course of 2011, 2012 and 2013, Clark hired approximately 11 different doctors to work part time at SHRP to assist him in handling the follow up visits. Of the $150 collected from the patient for the follow up visit, the 11 doctors were paid approximately half, or $75, and SHRP kept the other $75. Clark did not report all of the cash collected, and used some of it for personal expenses such as improvements on his home.
Judge Schwab scheduled sentencing for November 13, 2018. The law provides for a maximum total sentence per count of three years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigations conducted the investigation leading to the information filed in this case.
Beaumont Federal Inmate Guilty of Assaulting Fellow PrisonerRead the Press Release
BEAUMONT, Texas – A 36-year-old federal inmate has pleaded guilty to assaulting another prisoner in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Joseph Young, of Ripley, TN, pleaded guilty to assault with a deadly weapon on June 22, 2018 before U.S. Magistrate Judge Keith F. Giblin.
According to information presented in court, on June 26, 2016, while an inmate with the Bureau of Prisons, Young assaulted another inmate by stabbing him several times in the abdomen, back, arms and leg, with a metal object of about seven inches in length that had been sharpened to a point into a homemade knife. The victim survived the attack and Young was indicted by a federal grand jury on Feb. 7, 2018 and charged with assault.
Under federal statutes, Young faces up to 10 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Federal Bureau of Prisons and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
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Baltimore Heroin Dealer Sentenced to 14 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Stanley Rodgers, age 60, of Baltimore, Maryland today to 14 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration (DEA) - Washington Field Division; and Colonel Woodrow Jones, Chief of the Maryland Transportation Authority Police.
According to his plea agreement, on February 6, 2018, Rodgers took delivery of 10 kilograms of heroin in Howard County, Maryland, then returned to his residence. Shortly thereafter, Lindell Robinson arrived at Rodgers’ residence and took custody of the 10 kilograms of heroin. Robinson then drove with the drugs to downtown Baltimore, where he was arrested by DEA agents and the heroin was recovered from his car. The wholesale value of the heroin was approximately $700,000.
Rodgers must also forfeit the following assets seized from his residence on March 12, 2018, which are believed to have been acquired as a result of, or used to facilitate Rodgers’ drug distribution: jewelry with an approximate value of $150,000; and two Jeep Cherokee vehicles.
On May 3, 2018, Lindell Robinson, age 46, of Pacoma, California, pleaded guilty to conspiracy to distribute and possess with intent to distribute heroin, and is scheduled to be sentenced on July 11, 2018 at 11:30 a.m.
United States Attorney Robert K. Hur praised the DEA and Maryland Transportation Authority Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys James G. Warwick and David Metcalf, who prosecuted the case.
Allentown Lawyer Sentenced to Prison for Tax FraudRead the Press Release
Reading, PA – U.S. Attorney William M. McSwain announced that Douglas M. Marinos, 56, a licensed attorney, was sentenced on June 22 to serve one year in federal prison for tax fraud.
On January 18, 2018, Marinos pled guilty to one count of willfully failing to collect, truthfully account for, and pay over to the United States taxes owed by his Allentown law firm. He was sentenced by U.S. District Judge Jeffrey L. Schmehl.
From 2008 to 2015, Marinos misrepresented to his firm’s employees that money he had withheld from their paychecks had been paid to the IRS to fund their Social Security and Medicare contributions.
In total, Marinos failed to pay $229,548.92 in required payroll taxes on behalf of his firm.
“When he entered the practice of law, the defendant swore to ‘obey and defend’ the laws of Pennsylvania and the United States,” said U.S. Attorney McSwain. “Instead, the defendant abused the trust placed in him by his employees and broke the law by using this money to pay his own creditors.”
The case was investigated by the IRS Criminal Investigation Division and prosecuted by Assistant United States Attorney Sean P. McDonnell.
11 Individuals Charged with Running Narcotics RingRead the Press Release
CINCINNATI – A federal grand jury has charged 11 individuals in a narcotics and money-laundering conspiracy, which also involves allegations of operating drug involved premises, wire fraud and structuring, through a 20-count superseding indictment returned here Thursday and unsealed today.
Two defendants, Derwin Gadson and Ronnie Parrott, remain at large. The other nine were arrested late last week.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office and Cincinnati Police Chief Eliot K. Isaac announced the charges.
According to the indictment, from at least August 2012 until April 2017, the defendants allegedly operated a narcotics conspiracy and distributed fentanyl, ketamine, cocaine and heroin in the Cincinnati region.
Those charged include:
Name
Age
City of Residence
John T. Moore, Jr.
33
Cincinnati
Ricardo Campbell
33
Cincinnati
Teron Campbell
26
Cincinnati
*Derwin Gadson
22
Cincinnati
Patricia O’Neal
37
Cincinnati
Timothy Mosely
34
Cincinnati
*Ronnie Parrott
33
Cincinnati
Keiron Ashurst
53
Cincinnati
Vernon Coffee
Cincinnati
Shanda Green
39
Cincinnati
Jeronda Kelley
36
Cincinnati
* Fugitives
The indictment also formally charges Campbell with operating a drug involved premises at 5520 Silverpointe Drive in Cincinnati.
Sixteen additional homes are named in the indictment as properties potentially purchased with drug proceeds or through other illicit means, including homes in Cincinnati on Montana, Lowry, Mystic, Wilson, Crestline, Wyoming, Simpson, Cleveland and Blair avenues, Saffer and Dillward streets, Woodcrest and Sarvis courts, Rapid Run and Montgomery roads, a home in Fairfield on Flaig Drive, and a home in West Chester on Tarragon Court.
Moore – who solely owned and operated both John T. Moore Construction, LLC and Lieutenant Dan, LLC (a real estate company) – purchased four of the properties by allegedly defrauding mortgage lenders.
He allegedly lied on loan applications in order to secure loans and enter into purchase agreements, including, $20,000 for 2620 Montana Avenue in Cincinnati, $20,500 for 3973 Lowry Avenue in Cincinnati, $147,000 for 5945 Flaig Drive in Fairfield and $42,250 for Rapid Run Road in Cincinnati.
The superseding indictment alleges Moore falsified bank statements to inflate the available balance and overstated the value of other properties he claimed to own. Moore also allegedly did not disclose that certain loans were to purchase residential property as opposed to a Business Equity Line of Credit.
Additionally, Moore, Green and Kelley are charged with structuring financial transactions to evade tax requirements and with money laundering.
For example, between July and November 2016, the trio allegedly made cash deposits of various monetary denominations totaling in excess of $270,000 into seven bank accounts. Likewise, it is alleged they deposited more than $230,000 into various accounts in a little over a month in 2017.
“We are on a mission to rid the Southern District of Ohio of criminal organizations that traffic fentanyl and other deadly drugs,” said U.S. Attorney Glassman. “In carrying out that mission, we’re seeking not only to hold perpetrators criminally responsible, but also to take away the fruits of the crime. We want to make sure that drug trafficking doesn’t pay.”
U.S. Attorney Glassman commended the investigation of this case by the FBI, IRS-CI and Cincinnati Police Department, as well as Assistant United States Attorney Christy Muncy, who is prosecuting the case.
If you have information on the whereabouts of Gadson or Parrott, please call the FBI at (513) 421-4310.
A superseding indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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Friday 22 June 2018
Wilmington Man Sentenced to More Than 10 Years for Drug Distribution ChargeRead the Press Release
ELIZABETH CITY – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that, United States District Judge Terrence W. Boyle sentenced LEWIS ALEXANDER HINES, 26, of Wilmington to 120 months of imprisonment followed by 5 years of supervised release.
HINES was named in a five-count Superseding Indictment filed on July 25, 2017. On October 5, 2017 HINES pled guilty to Possession with Intent to Distribute 28 Grams or More of Cocaine Base.
In January 2017, agents with the Federal Bureau of Investigation Safe Streets Task Force (FBI) and the Wilmington Police Department Gang Unit (WPD) initiated an investigation into the drug distribution activities of HINES. A confidential source (CS) advised authorities that he/she could purchase drugs from HINES. Between January 9, 2017 and February 2, 2017 the CS at the direction of law enforcement made four undercover purchase of drugs from HINES. The CS purchased 251 bindles of heroin (5.02 grams of heroin) for $1,120, 147 bindles of heroin (2.9 grams of heroin) for $675, 29 grams of cocaine base (crack) for $1,400 and 14 grams of crack cocaine for $700. All of the sales occurred in Wilmington, North Carolina.
On February 6, 2017, law enforcement served a search warrant at HINES’ residence. The search uncovered 36 grams of crack cocaine, digital scales, 1 Glock magazine, various rounds of ammunition, and empty bindles of heroin.
HINES has prior convictions in North Carolina State Court for discharging a weapon into an occupied property and possession with intent to sell and deliver cocaine and a prior Federal conviction for possession of a firearm by a convicted felon.
The investigation was conducted by the Wilmington Police Department Gang Unit and the Federal Bureau of Investigation’s Safe Street’s Task Force which is comprised of the Wilmington Police Department, New Hanover County Sheriff’s Office, North Carolina Highway Patrol, Onslow County Sheriff’s Office,
Jacksonville Police Department, Onslow County Sheriff’s Office and the Carteret County Sheriff’s Office. Assistant United States Attorney Timothy M. Severo handled the prosecution of this case for the government.
Westbrook Man Charged with Interfering with Commerce by RobberyRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Travis Jonathon Card, 38, of Westbrook, Maine, was charged today by criminal complaint in U.S. District Court with interference with commerce by robbery.
According to the complaint, the charge arises from an investigation into eleven armed robberies in the greater Portland area in March and April, 2018. One of these robberies occurred at a Gulf Mart, in Westbrook, on April 6, 2018. On that date, Card entered the store, approached the clerk, brandished what appeared to be a black firearm, and directed the clerk to open the register and give him money. He absconded with over $500.
If convicted, Card faces up to 20 years in prison and a $250,000 fine.
The defendant is currently being held in state custody on related charges. His initial appearance in U.S. District Court in Portland has not yet been scheduled.
The ongoing investigation is being conducted by the FBI, in conjunction with the Portland, Westbrook, Falmouth, Cumberland, South Portland, and Old Orchard Beach Police Departments.
A criminal complaint is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.
Watervliet Man Indicted for Sexual Exploitation of a ChildRead the Press Release
ALBANY, NEW YORK – Aaron Vroman, age 28, of Watervliet, New York, was indicted yesterday for sexual exploitation of a child by making pornographic images, distribution of child pornography, and possession of child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
According to the indictment, Vroman sexually exploited a child from September 2015 through December 2017, used file-sharing software to distribute child pornography over the internet in April 2017, and possessed child pornography on a laptop computer and flash drive.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Vroman has been in custody since December 15, 2017 and will be arraigned at a later date. If convicted of all charges, Vroman faces at least 15 years and up to 30 years in prison, as well as post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by HSI, with assistance from the New York State Police and the Colonie Police Department, and is being prosecuted by Assistant U.S. Attorney Joseph A. Giovannetti.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is 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 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 https://www.justice.gov/psc.
United States Files Complaint to Stop Louisiana Company and its Owners from Distributing Adulterated FoodRead the Press Release
WASHINGTON – The United States filed a civil complaint against Freshy Foods, LLC of Elmwood, Louisiana, its co-owner and Chief Executive Officer Floyd D. James, and its co-owner and President Ida M. James (defendants) to stop them from manufacturing and distributing adulterated food in violation of federal law, the Department of Justice announced today.
According to the complaint, defendants prepare, manufacture, process, pack, label, hold, and distribute refrigerated, ready-to-eat (RTE) food, including sandwiches, wraps, salads, fruit cups, and snack cups. The complaint, filed in the U.S. District Court for the Eastern District of Louisiana, alleges that the RTE food that defendants prepare, manufacture and/or distribute is adulterated in that it has been prepared, packed, or held under insanitary conditions whereby the food may have been contaminated with filth or rendered injurious to health. The allegations in the complaint apply to RTE food regulated by the U.S. Food and Drug Administration (FDA).
The Department filed the complaint at the request of the FDA.
“The Department of Justice is committed to ensuring that food manufacturers and distributors comply with laws designed to protect consumers,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice continues to work actively with the FDA to ensure that consumers are protected from potentially unsafe food.”
The complaint alleges that a July 2017 inspection by FDA of Freshy Foods’ facility established that RTE food that defendants prepare, manufacture and/or distribute is adulterated. Specifically, according to the complaint, FDA found evidence of a resident strain of Listeria monocytogenes (L. mono) in the facility. The complaint alleges that in addition to the July 2017 inspection, federal and state government agencies have found L. mono in Freshy Foods’ facility or in defendants’ RTE sandwiches on six separate occasions.
According to the complaint, the Florida Department of Agriculture and Consumer Services (FDACS) found L. mono in one of defendants’ sandwiches in 2013 and in another of defendants’ sandwiches in 2016. In addition, the complaint alleges that the U.S. Department of Agriculture (USDA) inspected Freshy Foods’ facility in June 2017, collected environmental subsamples from the facility, with three subsamples testing positive for L. mono.
The complaint states that FDA compared positive L. mono samples collected by FDA in July 2017, April 2017, and April 2016; by USDA in June 2017; and by FDACS in March 2016 and December 2013. According to the complaint, lab analysis identified a resident strain of L. mono, which has persisted in Freshy Foods’ facility since at least 2013, as well as a second, non-resident strain of L. mono at the facility.
As noted in the complaint, L. mono is one of several bacteria contained within the Listeria species. According to the complaint, L. mono can causes listeriosis, a disease commonly contracted by eating food contaminated with the bacterium. The complaint notes that Listeriosis can be serious, even fatal, for vulnerable groups such as newborns and those with impaired immune systems, and that the most serious forms of listeriosis can result in meningitis and septicemia.
The complaint alleges that defendants violated the Federal Food, Drug, and Cosmetic Act by causing adulterated food to be introduced into interstate commerce or delivered for introduction into interstate commerce. It also alleges that the defendants further violated the law by causing food to become adulterated while it was being held for sale after the shipment of one or more of its components in interstate commerce.
“Southeast Louisiana is famous for its delicious food and regardless of where it is ultimately consumed, food originating from our District should be safe,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “This complaint furthers the Eastern District of Louisiana’s mission to protect and improve the quality of life for consumers both here and throughout the states where Freshy Foods, LLC’s products are distributed.”
“We have an obligation to make sure that foods are safe for people to consume. The conditions that this company was holding ready-to-eat food in were unacceptable,” said FDA Associate Commissioner for Regulatory Affairs Melinda K. Plaisier. “FDA investigators repeatedly found Listeria monocytogenes at Freshy Food’s facility, and the company should stop operations until they can demonstrate to the FDA that their products are safe.”
The government is represented by Trial Attorney Kathryn Schmidt of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney K. Paige O’Hale of the U.S. Attorney’s Office for the Eastern District of Louisiana, with the assistance of Associate Chief Counsel for Enforcement Anna K. Thompson of the FDA, Office of General Counsel, and Department of Health and Human Services.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of Louisiana, visit its website at http://www.justice.gov/usao-edla.
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18-XXX
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United States Files Complaint to Stop Louisiana Company and its Owners from Distributing Adulterated FoodRead the Press Release
WASHINGTON – The United States filed a civil complaint against Freshy Foods, LLC of Elmwood, Louisiana, its co-owner and Chief Executive Officer Floyd D. James, and its co-owner and President Ida M. James (defendants) to stop them from manufacturing and distributing adulterated food in violation of federal law, the Department of Justice announced today.
According to the complaint, defendants prepare, manufacture, process, pack, label, hold, and distribute refrigerated, ready-to-eat (RTE) food, including sandwiches, wraps, salads, fruit cups, and snack cups. The complaint, filed in the U.S. District Court for the Eastern District of Louisiana, alleges that the RTE food that defendants prepare, manufacture and/or distribute is adulterated in that it has been prepared, packed, or held under insanitary conditions whereby the food may have been contaminated with filth or rendered injurious to health. The allegations in the complaint apply to RTE food regulated by the U.S. Food and Drug Administration (FDA).
The Department filed the complaint at the request of the FDA.
“The Department of Justice is committed to ensuring that food manufacturers and distributors comply with laws designed to protect consumers,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice continues to work actively with the FDA to ensure that consumers are protected from potentially unsafe food.”
The complaint alleges that a July 2017 inspection by FDA of Freshy Foods’ facility established that RTE food that defendants prepare, manufacture and/or distribute is adulterated. Specifically, according to the complaint, FDA found evidence of a resident strain of Listeria monocytogenes (L. mono) in the facility. The complaint alleges that in addition to the July 2017 inspection, federal and state government agencies have found L. mono in Freshy Foods’ facility or in defendants’ RTE sandwiches on six separate occasions.
According to the complaint, the Florida Department of Agriculture and Consumer Services (FDACS) found L. mono in one of defendants’ sandwiches in 2013 and in another of defendants’ sandwiches in 2016. In addition, the complaint alleges that the U.S. Department of Agriculture (USDA) inspected Freshy Foods’ facility in June 2017, collected environmental subsamples from the facility, with three subsamples testing positive for L. mono.
The complaint states that FDA compared positive L. mono samples collected by FDA in July 2017, April 2017, and April 2016; by USDA in June 2017; and by FDACS in March 2016 and December 2013. According to the complaint, lab analysis identified a resident strain of L. mono, which has persisted in Freshy Foods’ facility since at least 2013, as well as a second, non-resident strain of L. mono at the facility.
As noted in the complaint, L. mono is one of several bacteria contained within the Listeria species. According to the complaint, L. mono can causes listeriosis, a disease commonly contracted by eating food contaminated with the bacterium. The complaint notes that Listeriosis can be serious, even fatal, for vulnerable groups such as newborns and those with impaired immune systems, and that the most serious forms of listeriosis can result in meningitis and septicemia.
The complaint alleges that defendants violated the Federal Food, Drug, and Cosmetic Act by causing adulterated food to be introduced into interstate commerce or delivered for introduction into interstate commerce. It also alleges that the defendants further violated the law by causing food to become adulterated while it was being held for sale after the shipment of one or more of its components in interstate commerce.
“Southeast Louisiana is famous for its delicious food and regardless of where it is ultimately consumed, food originating from our District should be safe,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “This complaint furthers the Eastern District of Louisiana’s mission to protect and improve the quality of life for consumers both here and throughout the states where Freshy Foods, LLC’s products are distributed.”
“We have an obligation to make sure that foods are safe for people to consume. The conditions that this company was holding ready-to-eat food in were unacceptable,” said FDA Associate Commissioner for Regulatory Affairs Melinda K. Plaisier. “FDA investigators repeatedly found Listeria monocytogenes at Freshy Food’s facility, and the company should stop operations until they can demonstrate to the FDA that their products are safe.”
The government is represented by Trial Attorney Kathryn Schmidt of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney K. Paige O’Hale of the U.S. Attorney’s Office for the Eastern District of Louisiana, with the assistance of Associate Chief Counsel for Enforcement Anna K. Thompson of the FDA, Office of General Counsel, and Department of Health and Human Services.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of Louisiana, visit its website at http://www.justice.gov/usao-edla.
U.S. Attorney's Office for the Eastern District of Arkansas Indicts 73 Cases in June, Including 39 Gun CasesRead the Press Release
LITTLE ROCK—Following a week in which more than 50 defendants appeared before United States Magistrate Judge Joe J. Volpe for their first appearance in federal court, today Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced the filing of 73 indictments in the month of June.
Thirty-nine of the 73 indictments involve gun crimes, filed as part of the Project Safe Neighborhoods (PSN) initiative. Hiland’s announcement illustrates his office’s commitment to prosecuting gun crimes and removing dangerous criminals from the streets.
“As I said back in February, when I announced that our office’s top priorities will include the successful prosecution of gun crimes, we will not slow down or back off our commitment to take dangerous individuals off the streets and put them in prison by any means available to us under federal law,” Hiland said. “The days of dangerous criminals illegally possessing guns with impunity are over. I am proud of the partnership and hard work between our office and the federal, state and local agencies we work with every day. These indictments are a product of that hard work and a reflection of the cooperative relationship necessary to turn these cases into indictments.
“It’s important to note the work is just beginning. Law enforcement will continue to make cases and we will continue to process them for prosecution. We’re anxious for these criminals to face justice in the federal system where parole is not an option.”
In 2017, the U.S. Attorney’s Office (USAO) for the Eastern District of Arkansas (EDAR) indicted 62 cases in which a gun charge was the primary crime charged. Throughout 2017, the highest number of PSN indictments filed in any one month was 15 in July. By contrast, through the first six months of 2018, the EDAR has indicted 89 PSN cases, with June’s 39 indictments being the highest one-month total so far. In 2017, the USAO EDAR opened a total of 106 PSN cases; 174 PSN cases have been opened in the office in the first six months of 2018, with more indictments expected. The USAO EDAR opened a total of 438 cases in 2017. Through June, Hiland’s office has opened 456 cases in 2018.
Hiland’s office is receiving aid in handling this additional caseload by the addition of 12 Special Assistant United States Attorneys (SAUSAs). Four SAUSAs who have completed their background checks have been assigned 15 cases thus far.
Additionally, Hiland announces the hiring of Gerald “Bart” Dickinson to serve as a violent crimes prosecutor. Dickinson is currently chief counsel at the Arkansas Office of Medicaid Inspector General and previously served as a gang and violent crimes prosecutor in Little Rock from 2001 through 2007. He also served as chief deputy prosecutor in Lonoke County, and worked for the Arkansas Attorney General’s office. Dickinson, who has been assisting as a SAUSA, will begin full-time work when cleared by the Department of Justice.
PSN is 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 of Justice’s renewed focus on targeting violent criminals, and directed all U.S. Attorney’s Offices to work in partnership with federal, state, and local law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Each of these PSN cases is first opened by the USAO for investigation in consultation with a local or federal law enforcement partner. Following investigation, an Assistant U.S. Attorney presents the case to a grand jury for potential indictment. A federal indictment is a formal charging document that is presented to a grand jury, which then determines whether probable cause exists for the alleged crimes.
Following indictment, a defendant will appear before a United States Magistrate Judge. The Magistrate Judge then informs the defendant of the charges against him, the possible punishment, and determines whether the defendant will remain detained, or released on bond.
In addition to the 39 gun cases filed in June, the U.S. Attorney’s office indicted 13 cases involving drug-trafficking crimes, 10 involving immigration crimes, 4 involving crimes against children, 2 fraud cases, and 1 identity theft case.
The new gun cases primarily originated in Little Rock and surrounding Pulaski County. Charges include felon in possession of firearms, possession of a firearm in furtherance of a drug-trafficking crime, and unlawful drug user in possession of firearms.
The Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF) has been a key partner with the U.S. Attorney’s office in developing these PSN cases. In addition, many of the 39 new PSN cases began as state cases following arrests by the Little Rock Police Department, North Little Rock Police Department, Pulaski County Sheriff’s Office, Arkansas State Police, and other local agencies. The FBI, through its GET Rock gang task force, and Arkansas Community Correction has also provided significant resources and assistance to this prosecution push. Throughout this initiative, which will continue indefinitely, the U.S. Attorney’s office has been working closely with Larry Jegley and the Sixth Judicial District Prosecuting Attorney’s office, as well as other state prosecutor’s offices.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available on-line at
http://www.justice.gov/edar
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@EDARNEWSTwo Individuals Sentenced for Possession of Electronic Image of U.S. ObligationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Brandon Everett Barker, age 36, of Austin, Texas, and Michelle Denise Carson, age 39, of Indianapolis, Indiana, were sentenced to 21 months imprisonment and 3 years supervised release, and to 12 months imprisonment and 3 years supervised release, respectively, for Possession Of An Electronic Image Of An Obligation Of The United States, in violation of Title 18 United States Code, Sections 474(a) and 2. The charge arose from an investigation by the Atoka Police Department and the United States Secret Service.
The Indictment alleged that on or about September 17, 2017, in the Eastern District of Oklahoma, the defendants unlawfully and with intent to defraud, had in in their control, custody, and possession, a digital and electronic image of an obligation or other security of the United States, a one hundred dollar bill.
“The defendants possessed the digital image of a one hundred dollar bill and equipment to create counterfeit United States currency with the intent to defraud others. Ultimately, the end result when a fraudulent intent is carried out and counterfeit currency is passed, an unsuspecting victim exchanges goods or services for a worthless piece of paper that appears to be legitimate U.S. currency,” United States Attorney Brian J. Kuester said. “Thanks to the heads-up police work by the Atoka Police Department and the United States Secret Service, the defendants’ were stopped from carrying out their fraudulent intent and an untold number of people did not become their victims.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Rob Wallace represented the United States. The defendants will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentences will be served.
Two Connecticut Residents Charged with Operating Extensive Immigration Marriage Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations (HSI) in Boston, and Christopher W. Fonda, Supervisory Immigration Officer for U.S. Citizenship and Immigration Services, Office of Fraud Detection and National Security, today announced the unsealing of a 14-count indictment charging JODIAN STEPHENSON, also known as “Jodian Gordon,” 34, of Bridgeport, and DONOVAN LAWRENCE, 62, of Milford, with various federal offenses related to an extensive immigration marriage fraud scheme.
The indictment was returned on June 5 and STEPHENSON and LAWRENCE were arrested today. They appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and were released on bonds in the amount of $350,000 and $100,000, respectively.
As alleged in the indictment, STEPHENSON has operated Stephenson Immigration and Legal Services, LLC, in Bridgeport, and LAWRENCE has operated Donovans Accounting Services, LLC, in Bridgeport. Between approximately July 2012 and July 2017, STEPHENSON, LAWRENCE and others conspired to arrange sham marriages between U.S. citizens and non-citizens residing in the U.S. for the purpose of the non-citizens’ applying for and obtaining “lawful permanent residence” status, also known as a “green card.” As part of the alleged scheme, STEPHENSON and LAWRENCE made and filed with U.S. Citizenship and Immigration Service false documents, including fraudulent green card applications and false tax returns in the names of the allegedly “married” couples.
The indictment identifies nine false marriages that resulted in the filing of fraudulent green card applications. During the investigation, is it alleged that STEPHENSON offered to arrange a sham marriage for a federal law enforcement agent working in an undercover capacity, and help obtain a green card for the undercover agent, in exchange for a proposed fee of $20,000. STEPHENSON then introduced the undercover agent to a U.S. citizen, advised them about the ways they could create the appearance that they were validly married and living together as husband and wife, and helped the undercover agent obtain a marriage license in exchange for a cash payment of $5,000 from the undercover agent.
The indictment charges STEPHENSON and LAWRENCE with one count of conspiracy to commit immigration marriage fraud and make false statements, and six counts of making false statements. These charges carry a maximum term of imprisonment of five years on each count. The indictment also charges STEPHENSON with seven counts of immigration documents fraud, an offense that carries a maximum term of imprisonment of 10 years on each count.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by Homeland Security Investigations and U.S. Citizenship and Immigration Service, Office of Fraud Detection and National Security. The case is being prosecuted by Assistant U.S. Attorney Henry K. Kopel.
Two Brunswick Men Sentenced to Serve More Than a Decade in Prison for Distributing Kilogram Quantities of CocaineRead the Press Release
BRUNSWICK, GA: Rafeal Lateef Baker, also known as “Channel 4,” age 43, of Brunswick, Georgia, was sentenced to more than 16 years’ imprisonment, and Kenneth Anthony Moore, also known as “Smooth,” age 48, of Freeport, Texas, was sentenced to 14 years imprisonment, for their roles in a conspiracy to distribute five kilograms or more of cocaine.
The prosecution of Baker and Moore was part of “Operation Bloody Prince,” an Organized Crime Drug Enforcement Task Force (OCDETF) operation targeting gang activity and drug trafficking in and around Brunswick. Baker and Moore were among over twenty defendants in the Brunswick area convicted in this operation. The OCDETF Program is the centerpiece of the United States Attorney General's drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations.
The evidence at their sentencing hearings established that beginning in or about 2014, Baker purchased kilogram quantities of cocaine from Moore, who was residing at the time in Freeport, Texas, and that Baker then distributed that cocaine in and around Brunswick, Georgia. Baker and Moore took various steps to arrange the shipment of approximately 2 kilograms of cocaine per trip, from Texas to Georgia, and engaged in a variety of activities to evade detection by law enforcement. In all, the amount kilograms totaled a conservative 40 kilos of cocaine.
“Criminal street gangs and illegal drug distribution networks take note: you will be given no quarter in the Southern District of Georgia!” states Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “Side by side with the FBI and our law enforcement partners in coastal Georgia, we will pursue you until you are brought to justice.”
“The fact that Baker and Moore will no longer be on the streets bringing drugs into our community and threatening our citizens is a direct result of the collaborative efforts of the FBI and its partners who are part of the FBI’s Coastal Georgia Safe Streets Gang Task Force,” said J. C. Hacker, Acting Special Agent in Charge (A/SAC) of the FBI Atlanta field office. “This is an example of our commitment to invest significant resources toward dismantling these types of criminal enterprises that do so much harm to our communities.”
The investigation of Baker and Moore and Atkinson was led by the FBI’s Coastal Georgia Violent Gang Task Force, the Glynn County Police Department, and the Brunswick Police Department, with assistance from the FBI in Houston, as well as the Houston Police Department. For any questions, please contact the United States Attorney’s Office at (912) 652-4422.
Trinity Man Sentenced for Worker’s Compensation FraudRead the Press Release
Tampa, FL – U.S. District Judge James D. Whittemore has sentenced Gary W. Rochevot (72, Trinity) to five years’ probation, with the first six months to be served on home detention, for making a false statement in connection with his worker’s compensation benefits. As part of Rochevot’s sentence, the court also ordered him to pay $123,434.89 in restitution. He pleaded guilty on March 23, 2018.
According to court documents, Rochevot was placed on the United States Department of Labor, Office of Worker’s Compensation Program’s (“OWCP”) long-term periodic role in February 2005, due to a 2004 work-related injury at the Orlando International Airport. Thereafter, he received a tax-free payment from the OWCP of approximately $5,500 per month. As a benefit recipient, Rochevot was required to complete and submit an OWCP CA-Form 1032 annually. The Department of Labor uses this form to determine whether an individual is entitled to receive OWCP benefits and/or whether such benefits should be adjusted. The form includes a specific warning that a false or evasive answer to any question, or the omission of an answer, could be grounds for forfeiting the compensation benefits and could subject the individual to civil liability. The warning language also specifically notes that a fraudulent answer could, among other consequences, result in criminal prosecution.
In September 2016, Rochevot completed and submitted the annual CA-Form 1032, as required. In response to one of the form’s questions concerning volunteer work, he answered that he had not performed any volunteer work during the previous 15 months. That material answer was false because Rochevot had previously worked as a volunteer “cart driver/greeter” for a large hospital, where he had routinely worked one day per week, including during September 2016. In addition, federal agents observed Rochevot engaging in routine physical activity throughout 2016, including yardwork, automobile maintenance, house maintenance, and routine errands (some of which involved heavy lifting). In October 2016, shortly after submitting the false CA-Form 1032, Rochevot also provided false answers to direct questions concerning his health status during a telephone call with a federal agent.
This case was investigated by the Transportation Security Administration Investigations. It was prosecuted by Assistant United States Attorney Jay G. Trezevant.
Toledo man indicted on drug and firearms chargesRead the Press Release
A Toledo man was indicted on firearms and drug charges, said U.S. Attorney Justin E. Herdman.
Antoine Kennedy, 20, was indicted on charges of Kennedy with being a felon in possession of a firearm and possession with the intent to distribute cocaine and marijuana.
Kennedy on Nov. 6, 2016 possessed cocaine, marijuana and a FNS 40-caliber pistol, despite a prior conviction for trafficking cocaine that made it illegal for him to have a firearm, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agencies in this case are the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Toledo, Ohio and the Toledo Police Department. Assistant U.S. Attorney Michael J. Freeman is handling the case.
This case is being prosecuted as part of "Project Safe Neighborhoods," a gun violence reduction program administered by the Department of Justice, U.S. Attorney's Office for the Northern District of Ohio. The program targets armed criminals for federal prosecution.
An indictment is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
Three MS-13 Members Charged with Racketeering and Illegal Possession of Firearms and AmmunitionRead the Press Release
BOSTON – Three MS-13 members have been indicted on charges of racketeering and illegal possession of firearms and ammunition.
Nelson Cruz Rodriguez Cartagena, a/k/a “Inquieto,” 24, a Salvadoran national illegally residing in Everett, was indicted on one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, commonly referred to as RICO conspiracy. Cartagena, who was previously deported, was arrested yesterday in Everett after law enforcement determined that he had reentered the United States. Cartagena was detained following an initial appearance in federal court in Boston. In a separate indictment, Nery Rodriguez Diaz, 18, and Elmer Alfaro Hercules, 19, both Salvadoran nationals, were each charged with one count of being illegal aliens in possession of firearms and ammunition.
As alleged in court documents, MS-13 is a violent, transnational criminal organization whose branches, or “cliques,” operate throughout the United States, including Massachusetts. MS-13 members are required to commit acts of violence to maintain membership and discipline within the group. Most of the MS-13 cliques in Massachusetts, including the Everett Loco Salvatrucha (ELS) clique, belonged to MS-13’s East Coast Program, and that these cliques worked both independently and cooperatively to engage in criminal activity and to assist one another in avoiding detection by law enforcement.
Cartagena is alleged to be a full member, or “homeboy,” in MS-13’s Everett Loco Salvatrucha (ELS) clique. On recorded prison calls with a detained ELS clique leader, Cartagena discussed buying guns for the Everett clique, maintaining and supervising the clique’s marijuana trafficking business, the need to collect dues from clique members, the need to send money to MS-13 leaders in El Salvador due on the 13th of each month, and reporting on the clique’s day-to-day racketeering activities.
When the clique leader began to suspect that a member of the ELS clique had cooperated with law enforcement leading to his arrest, he allegedly enlisted Cartagena’s help to ferret out the informant. Cartagena provided the true names of two young Everett clique members, and the leader concluded that one of them, Jose Aguilar Villanueva, a/k/a “Fantasma,” was the clique member responsible for his arrest. Once ELS (incorrectly) identified Villanueva as an informant, members of the Everett clique, including Cartagena, allegedly met at the clique’s “destroyer house” – a residence where clique members stored knives, machetes, marijuana, and money – and met to discuss gang business and plan the murder of Villanueva. Ultimately, on the night of July 5, 2015, two young ELS probationary members, or “chequeos,” lured Villanueva into a park in Lawrence and stabbed him to death. Villanueva was 16-years-old.
Diaz and Hercules were charged in a separate indictment in connection with being illegal aliens in possession of firearms and ammunition. Specifically, on May 22, 2018, Diaz and Hercules were arrested in possession of loaded firearms in Bremen Street Park in East Boston, a location where numerous MS-13 gang members have been observed and where gang-on-gang violence frequently occurs. As Diaz was escorted to a waiting police cruiser to be transported for booking, Diaz allegedly shouted “La Mara! La Mara!” to a person in the park.
Diaz and Hercules each separately and unlawfully entered the United States in 2014 as unaccompanied minors. In April 2015, an immigration judge ordered Hercules deported in absentia. On May 11, 2017, Diaz was charged as a juvenile youthful offender with armed assault with intent to murder and assault and battery with a dangerous weapon. According to incident reports, Diaz and two other men allegedly held a juvenile victim down in a wooded area in Everett and stabbed him twenty-two times. On March 18, 2018, the case against Diaz was dismissed when the victim did not appear in court.
The charge of RICO conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of being an alien in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The defendants also face deportation proceedings upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw; Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement today.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Three Jacksonville Residents Arrested, Charged with Possession, Conspiracy to Distribute MethRead the Press Release
SPRINGFIELD, Ill. – Three Jacksonville, Ill., residents made their respective initial appearances in federal court this morning after they were arrested on June 20, 2018. Nathaniel L. Stone, 40, of the 800 block of S. East Street; Jeremie D. Stone, 32, of the 1100 block of S. Diamond Street; and Amber R. Davis, also of the 1100 block of S. Diamond Street, are charged in a federal criminal complaint.
The complaint charges the three with conspiracy to distribute 50 grams or more of methamphetamine, and possession with intent to distribute 50 grams or more of methamphetamine. In addition, Nathaniel Stone is charged with being a felon in possession of a firearm and possession of a firearm during and in furtherance of a drug trafficking crime.
At today’s court appearance, before U.S. Magistrate Judge Tom Schanzle-Haskins, Jeremie Stone waived detention and preliminary hearing and was ordered to remain detained in the custody of the U.S. Marshals Service. Detention and preliminary hearings were continued and are scheduled for Nathaniel Stone on June 27. Amber Davis was released on her own recognizance.
The charges are the result of investigation by the Jacksonville Police Department, DEA, the Central Illinois Enforcement Group, the Morgan County Sheriff’s Office, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Matthew Z. Weir is prosecuting the case.
If convicted, for the offenses of conspiracy to distribute 50 grams or more of methamphetamine and for possession with intent to distribute 50 grams or more of methamphetamine, the statutory penalty is 10 years to life in prison. For possession of a firearm during and in relation to a drug trafficking offense, the penalty is a mandatory minimum five years in prison to be served consecutive to any sentence ordered for the related drug offense. Possession of a firearm by a felon carries a statutory maximum penalty of 10 years in prison.
Members of the public are reminded that a complaint is merely an accusation; each defendant is presumed innocent unless proven guilty.
Three Charged in Vegas-to-Columbus Oxy CasesRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged three individuals with crimes related to a Las Vegas-to-Columbus oxycodone ring in two indictments returned here yesterday and filed today.
James A. Stone, 39, and David L. Pryor, 28, both of Columbus, are charged in one indictment with conspiracy to possess with intent to distribute oxycodone and conspiracy to commit money laundering. Arthur G. Pirtle, Sr., 66, of Las Vegas, was charged with the same two crimes in a separate indictment.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office, and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), announced the charges.
According to the indictments, between 2012 and 2015, defendants conspired together and with others to distribute Oxycodone.
They would allegedly conceal the drug proceeds in carryon luggage, checked luggage and/or parcel packages to transport the illegal proceeds to and from Las Vegas and Columbus, Ohio. For example, Stone was interdicted by law enforcement during a trip from Columbus to Las Vegas and $21,000 of drug proceeds was discovered inside pairs of pants in his luggage.
The indictments also allege Stone, Pryor and Pirtle wired approximately $300,000 in drug proceeds.
Additionally, in 2013, Pirtle opened a bank account in the name Another Beginning LLC and that account received multiple cash deposits in the Southern District of Ohio that were allegedly proceeds from the sale of Oxycodone. Between November 2012 and October 2015, the account received more than $400,000 in cash deposits.
Since 2014, Pryor’s debit cards have been used to purchase numerous airline tickets for members and associates of the drug trafficking organization, including Maisha Caples, Marquis Pryor and Marcus Pryor, all of whom were prosecuted and convicted in the Southern District of Ohio. Marcus Pryor was sentenced to 140 months in prison, Marquis Pryor was sentenced to 93 months in prison and Caples was sentenced to 45 months in prison for charges related to the drug and money-laundering conspiracy.
Conspiracy to possess with intent to distribute Oxycodone and conspiracy to commit money laundering are each crimes punishable by up to 20 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the IRS CI and DEA, and Deputy Criminal Chief Michael Hunter, who is prosecuting the case.
Indictments merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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Three Charged in Separate Illegal Re-Entry CasesRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced three separate indictments charging individuals with illegally re-entering the United States.
Efrain Tellez-Perez, a/k/a “Efrain Tellez,” of Philadelphia, PA, was charged by indictment yesterday with illegal reentry after deportation. The indictment alleges that on or about May 14, 2018, Tellez-Perez, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about January 29, 2010, March 6, 2011, and March 11, 2011.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Josh A. Davison.
Wilken Rahames Antigua-Diaz, a/k/a “Christopher Serrano,” of Philadelphia, PA, was charged by indictment yesterday with illegal reentry after deportation. The indictment alleges that on or about May 11, 2018, Antigua-Diaz, an alien, and native and citizen of the Dominican Republic, was found in the United States after having been deported and removed from the United States on or about February 23, 2011 and May 29, 2013.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Roberta Benjamin.
Antonio Frutos-Zavala, of Reading, PA, was charged by indictment yesterday with illegal reentry after deportation. The indictment alleges that in March, 2018, Frutos-Zavala, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about November 15, 1998, March 28, 2008, March 26, 2008, and November 8, 2017.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Josh A. Davison.
If convicted, each defendant faces a maximum possible sentence of two years.
Texas Tax Return Preparer Sentenced to Prison for Tax and Identity Theft CrimesRead the Press Release
A former Killeen, Texas resident was sentenced to 42 months in prison today for aiding and assisting in the preparation and filing of a false tax return and aggravated identity theft, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, Shermin Marshall devised a scheme to file false federal income tax returns on behalf of his clients. Marshall falsified specific items on his clients’ tax returns in order to fraudulently increase their tax refunds. Marshall directed clients’ refunds to be deposited into financial accounts that he controlled and, unbeknownst to his clients, Marshall stole a portion of those refunds. To facilitate the diversion of the stolen funds, Marshall opened financial accounts in his clients’ names, without their permission.
In addition to the term of imprisonment, U.S. District Court Judge Lee Yeakel ordered Marshall to serve three years of supervised release and to pay $397,367 in restitution to the Internal Revenue Service.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Robert A. Kemins and David Zisserson, who are prosecuting the case and the U.S. Attorney’s Office for the Western District of Texas (Waco Division) for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts can be found on the division’s website.
Texas Physician and Two Texas Nurses Convicted for Roles in Home Health Care Fraud SchemeRead the Press Release
A federal jury found one physician and two nurses guilty today of health care fraud, and one physician and one nurse guilty of conspiracy to commit health care fraud, all for their roles in a home health fraud scheme.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region, Special Agent in Charge Eric Jackson of the FBI’s Dallas Field Office and Director of Law Enforcement David Maxwell of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
After a five-day trial, Kelly Robinett, M.D., 70, of Denton County, Texas; and Kingsley Nwanguma, 47, of Dallas County, Texas were each convicted of one count of conspiracy to commit health care fraud. In addition, Robinett and Nwanguma were each convicted of three counts of health care fraud, and Joy Ogwuegbu, 42, of Collin County, Texas was convicted of four counts of health care fraud. Sentencing before U.S. District Judge Reed O’Connor of the Northern District of Texas, who presided over the trial, has not yet been scheduled.
“Medical professionals Kelly Robinett, Kingsley Nwanguma, and Joy Ogwuegbu engaged in a multimillion-dollar scheme to defraud the taxpayer-funded Medicare program by certifying patients for medically unnecessary home health services and falsifying medical records to hide their crimes,” said Acting Assistant Attorney General Cronan. “The Criminal Division and our law enforcement partners are committed to protecting taxpayer dollars by vigorously pursuing medical professionals and anyone else who seeks to profit off our federal health programs through fraud and deceit.”
“The significance of this case highlights the responsibility healthcare workers, especially physicians and nurses, have to protect not only their patients, but prevent fraud against any federal health insurance program during the performance of their duties,” said Eric K. Jackson, FBI Dallas Special Agent-In-Charge. “Their decision to undertake this level of fraud against the government is something that the FBI will always make a priority to investigate and bring to justice those who would use their influential positions and their access for personal gains.”
“All patient care decisions must be based on legitimate assessments of medical need,” said CJ Porter, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “In this case, decisions revolved around a fraud scheme to enrich the defendants. The Office of Inspector General, with our enforcement partners, will continue to pursue prosecutions of this nature to protect federal health care program dollars.”
According to evidence presented at trial, from 2007 through 2015, Robinett, Nwanguma, and others, engaged in a scheme to defraud Medicare by submitting and causing the submission of false and fraudulent claims to Medicare, through Timely Home Health Services Inc. (Timely), a home health agency, and Boomer House Calls, a physician house call company. The evidence presented at trial showed that Robinett, a doctor of osteopathic medicine, certified Medicare beneficiaries—whom he had never seen and did not care to see—for medically unnecessary home health services that were often not provided. The evidence further established that Ogwuegbu, a registered nurse, falsified nursing assessments and Nwanguma, a licensed vocational nurse, falsified nursing notes, to make it appear as if Medicare beneficiaries were qualified for and were provided skilled nursing services.
Evidence at trial demonstrated that Timely billed Medicare for over $11.3 million for home health services purportedly provided to Timely’s patients, some of which was attributable to certifications Robinett signed. Robinett’s company Boomer House Calls billed Medicare approximately $1 million for medically unnecessary home health certifications and services and physician’s home visits.
Four other defendants, have been convicted in this matter and in a related case. Shawn Chamberlain, PA, 48, of Collin County; Angel Claudio, MD, 61, of Hood County; Usani Ewah, RN, 59, of Dallas County; and Patience Okoroji, 60, of Dallas County, previously pleaded guilty and are awaiting sentencing.
This case was investigated by the HHS-OIG, FBI, and MFCU. Assistant Deputy Chief Adrienne Frazior and Trial Attorneys Aleza Remis and Christina Liu of the Criminal Division’s Fraud Section are prosecuting the case.
The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Texas Drug Traffickers Sentenced to 19 Years in Federal Prison for Conspiring to Distribute Methamphetamine in the Western District of ArkansasRead the Press Release
Texarkana, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that three Texarkana, Texas methamphetamine traffickers were sentenced for Conspiracy to Distribute Methamphetamine. Demetrius Allah Stanley aka “Cuzo,” age 42, of Texarkana, Texas was sentenced on June 20, 2018 to 96 months in federal prison followed by 3 years of supervised release, Amy Darlene Bryant, age 39, of Texarkana, Texas, was sentenced on June 20, 2018 to 21 months in federal prison followed by 3 years of supervised release, and James Ruble Little, age 32, originally of Fouke, Arkansas was sentenced today to 120 months in federal prison followed by 3 years of supervised release. The Honorable Susan O. Hickey presided over the sentencing hearings in the United States District Court in Texarkana.
According to court records, in January of 2016, investigators working with the Texas Department of Public Safety ("TX DPS") began an investigation into a local methamphetamine trafficking group operating on the Texas side of Texarkana in Bowie County. During that investigation, TX DPS investigators utilized a confidential informant (CI) to arrange for multiple purchases of methamphetamine from James Little ("Little") from his home in Texarkana, Texas. During one of the transactions, Amy Bryant was seen driving from her Texas home to Little’s place of work at a tire shop in Texas. Bryant picked up Little and transported him in her vehicle to an apartment complex in Texarkana, Texas, where they then picked up, Demetrius Stanley ("Stanley").
Law Enforcement then followed Bryant as she drove Stanley and Little to the home of a known methamphetamine distributor at a residence on the Arkansas side of Texarkana. While at that home, Stanley exited the vehicle and met with his source of methamphetamine and then rejoined, Little and Bryant. After the meeting, Stanley, Little, and Bryant all drove to an arranged meet location. Once there Bryant dropped off Little. Little then provided the CI an ounce of methamphetamine. The suspected methamphetamine was sent to the Arkansas State Crime Laboratory where it was determined to be a total of 27.61 grams of methamphetamine.
On October 19, 2016, Little’s bond was revoked in his federal case after he attempted suicide after learning that he was under investigation for the sexual assault of minors. On May 21, 2018, Little pled guilty to state charges of Rape in Miller County Circuit Court in Miller County, Arkansas. He is scheduled to be sentenced on that offense on June 26, 2018.
Stanley, Bryant and Little were all indicted by a federal grand jury in August 2016 and pled guilty in 2017.
This case was investigated by Texas Department of Public Safety (TXDPS). Assistant United States Attorney Ben Wulff prosecuted the case for the United States.
Texarkana Man Sentenced to over 12 Years in Federal Prison for Firearms ViolationRead the Press Release
Texarkana, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Keith Morgan Block, age 51, of Texarkana, Texas was sentenced yesterday to 155 months in federal prison followed by three years of supervised release on one count of Felon in Possession of a Firearm. The Honorable Susan O. Hickey, United States District Judge, presided over the sentencing hearing in Texarkana.
According to court records, in April 2016, law enforcement officers stopped a vehicle in Texarkana for failing to use a turn signal. The vehicle contained two occupants, a driver and a passenger, later identified as Block. The driver of the vehicle was arrested on an outstanding unrelated warrant. An officer then attempted to search Block for officer safety purposes, but Block fled on foot. During the chase, a firearm fell from Block’s clothing. Block was apprehended after a brief chase in the parking lot and he was taken into custody.
A federal grand jury indicted Block in April 2016, and he pled guilty in July 2017.
This case was investigated by Texarkana Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Graham Jones prosecuted the case for the United States.
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.
Texarkana Man Sentenced to over 12 Years in Federal Prison for Distribution of MethamphetamineRead the Press Release
Texarkana, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Christopher Whistle, age 40, of Texarkana, Arkansas, was sentenced today to 100 months in federal prison followed by three years of supervised release on one count of Distribution of Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Texarkana.
According to court records, in December 2015, agents with the Bi-State Narcotics Task Force (BSNTF) and the Federal Bureau of Investigation (FBI) began an investigation into methamphetamine distribution in the Texarkana area. This investigation allowed law enforcement to identify Whistle as a distributer of methamphetamine in the area. After learning this, agents with the BSNTF and the FBI conducted a controlled purchase of methamphetamine from Whistle. The methamphetamine was sent to the Arkansas State Crime Laboratory for analysis. The substance was determined 11.57 grams of actual methamphetamine.
Whistle was indicted by a federal grand jury in December 2015, and entered a guilty plea to distribution of methamphetamine in December 2017.
This case was investigated by Bi-State Narcotics Task Force and the Federal Bureau of Investigation. Assistant United States Attorney Brice White prosecuted the case for the United States.
Tax preparers plead guilty to conspiring to defraud the government of more than $3,500,000Read the Press Release
ATLANTA - Joseph Racine and Arnouse Merlien have pleaded guilty to conspiracy to violate the federal income tax laws by purposely misrepresenting to the IRS that their clients were qualified to receive certain tax credits and deductions on their federal tax returns. Racine is the owner of JSR Westend Tax Services, located in Atlanta, Georgia and JSR Tax Services, located in Greenacres, Florida.
“These defendants defrauded taxpayers of over $3,500,000 by falsely claiming tax credits and expenses on tax returns,” said U.S. Attorney Byung J. “BJay” Pak. “Tax preparers and others who steal from the public fisc by deliberately devising schemes to cheat the system will be vigorously prosecuted.”
“The IRS uses all of its investigative resources to uncover abusive tax return preparers who knowingly file fraudulent tax returns for the benefit of themselves and others,” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation. “The IRS is actively pursuing these bad return preparers and are holding them accountable for their criminal actions.”
According to U.S. Attorney Pak, the charges and other information presented in court: In December 2016, Internal Revenue Service - Criminal Investigation (IRS-CI) identified JSR Westend Tax Services as potentially filing fraudulent returns for tax years 2013 through 2015. The investigation revealed that Racine was filing fraudulent returns involving multiple credits and deductions, including the fuel tax credit, refundable education credit, and unreimbursed employee business expenses. Racine requested refunds on 99 percent of the returns, a rate significantly higher than the average over the same years. In March 2017, IRS-CI determined that JSR Tax Services in Florida, where Merlien primarily worked, was filing federal tax returns displaying the same patterns of fraud as those prepared at JSR Westend Tax Services in Atlanta.
The investigation revealed that Racine and Merlien engaged in this scheme to increase the amount of money they could charge their clients for preparing their returns. The investigation further revealed that the fraud perpetrated by Racine and Merlien resulted in losses to the U.S. Government in excess of $3,500,000.
Sentencings for Joseph Racine, 37, and Arnouse Merlien, 40, both of Boynton Beach, Florida, have been scheduled for September 6, 2018, before U.S. District Judge Leigh M. May.
This case is being investigated by the Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney Michael Herskowitz is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Tampa Man Sentenced to Ten Years in Federal Prison for Attempted Enticement of A MinorRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody today sentenced Danni McNaughton (45, Tampa) to 10 years in federal prison for attempted enticement of a minor. The court also ordered him to forfeit a cellphone that he had used in committing the offense.
According to court documents, between March 28, 2017, and October 11, 2017, McNaughton communicated online with an undercover officer, whom he believed to be a 13-year-old girl, and continually requested that the “child” send him pictures of herself. To induce such actions, McNaughton sent the “child” numerous images of his genitalia, as well as pictures of child erotica and a photo of child pornography. He also instructed the “child” on how to masturbate and discussed what types of sexual acts he would like to perform on her.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Diego F. Novaes.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Texas Physician and Two Texas Nurses Convicted for Roles in Home Health Care Fraud SchemeRead the Press Release
DALLAS – A federal jury found one physician and two nurses guilty today of health care fraud, and one physician and one nurse guilty of conspiracy to commit health care fraud, all for their roles in a home health fraud scheme.
U.S. Attorney Erin Nealy Cox of the Northern District of Texas, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region, Special Agent in Charge Eric Jackson of the FBI’s Dallas Field Office and Director of Law Enforcement David Maxwell of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
After a five-day trial, Kelly Robinett, M.D., 70, of Denton County, Texas; and Kingsley Nwanguma, 47, of Dallas County, Texas were each convicted of one count of conspiracy to commit health care fraud. In addition, Robinett and Nwanguma were each convicted of three counts of health care fraud, and Joy Ogwuegbu, 42, of Collin County, Texas was convicted of four counts of health care fraud. Sentencing before U.S. District Judge Reed O’Connor of the Northern District of Texas, who presided over the trial, has not yet been scheduled.
“Medical professionals Kelly Robinett, Kingsley Nwanguma, and Joy Ogwuegbu engaged in a multimillion-dollar scheme to defraud the taxpayer-funded Medicare program by certifying patients for medically unnecessary home health services and falsifying medical records to hide their crimes,” said Acting Assistant Attorney General Cronan. “The Criminal Division and our law enforcement partners are committed to protecting taxpayer dollars by vigorously pursuing medical professionals and anyone else who seeks to profit off our federal health programs through fraud and deceit.”
“The significance of this case highlights the responsibility healthcare workers, especially physicians and nurses, have to protect not only their patients, but prevent fraud against any federal health insurance program during the performance of their duties,” said Eric K. Jackson, FBI Dallas Special Agent-In-Charge. “Their decision to undertake this level of fraud against the government is something that the FBI will always make a priority to investigate and bring to justice those who would use their influential positions and their access for personal gains.”
“All patient care decisions must be based on legitimate assessments of medical need,” said CJ Porter, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “In this case, decisions revolved around a fraud scheme to enrich the defendants. The Office of Inspector General, with our enforcement partners, will continue to pursue prosecutions of this nature to protect federal health care program dollars.”
From 2007 through 2015, Robinett, Nwanguma, and others, engaged in a scheme to defraud Medicare by submitting and causing the submission of false and fraudulent claims to Medicare, through Timely Home Health Services Inc. (Timely), a home health agency, and Boomer House Calls, a physician house call company. The evidence presented at trial showed that Robinett, a doctor of osteopathic medicine, certified Medicare beneficiaries—whom he had never seen and did not care to see—for medically unnecessary home health services that were often not provided. The evidence further established that Ogwuegbu, a registered nurse, falsified nursing assessments and Nwanguma, a licensed vocational nurse, falsified nursing notes, to make it appear as if Medicare beneficiaries were qualified for and were provided skilled nursing services.
Evidence at trial demonstrated that Timely billed Medicare for over $11.3 million for home health services purportedly provided to Timely’s patients, some of which was attributable to certifications Robinett signed. Robinett’s company Boomer House Calls billed Medicare approximately $1 million for medically unnecessary home health certifications and services and physician’s home visits.
Four other defendants, have been convicted in this matter and in a related case. Shawn Chamberlain, PA, 48, of Collin County; Angel Claudio, MD, 61, of Hood County; Usani Ewah, RN, 59, of Dallas County; and Patience Okoroji, 60, of Dallas County, previously pleaded guilty and are awaiting sentencing.
This case was investigated by the HHS-OIG, FBI, and MFCU. Assistant Deputy Chief Adrienne Frazior and Trial Attorneys Aleza Remis and Christina Liu of the Criminal Division’s Fraud Section are prosecuting the case.
The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
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Six from Northeast Ohio with convictions for violent crimes indicted for firearms offensesRead the Press Release
Six people from Northeast Ohio were indicted in federal court for firearms crimes.
All six are charged with being felons in possession of firearms and ammunition. They are: John Lewis Chapple, 31, of Cleveland; Anthony L. Norman, 35, of Cleveland, Miquel Jones, 48, of Cleveland; Marwan Little, 42, of Elyria, Clifton D. McCarty, 38, of Cleveland, and Tequan Rushton, 23, Youngstown
“These defendants are all people who are illegally carrying guns and who have committed violent crimes in the past,” U.S. Attorney Justin Herdman said.
“ATF’s mission is reducing violent gun crime in our country,” said ATF Special Agent in Charge Trevor A. Velinor. “We are committed to working with our federal, state, and local partners to follow the gun and remove the most violent criminals from our streets.”
Chapple was arrested on May 10 with a Czech cal-st-alb-et, 7.62 caliber semi-automatic handgun and ammunition, despite prior convictions on two counts of aggravated robbery, two counts of kidnapping and two counts of felonious assault; additional convictions for kidnapping, felonious assault and aggravated robbery, according to the indictment.
Norman was arrested on May 6 with a Springfield Arms .45-caliber handgun and ammunition, despite previous convictions for felonious assault with a firearm specification, carrying a concealed weapon and intimidation of a crime victim or witness
Jones was arrested on May 23 with a Ruger 9 mm handgun, a Maverick 12-gauge shotgun and 16 rounds of 9 mm ammunition despite previous convictions for robbery, domestic violence, burglary and other crimes.
Little was arrested on April 4 with a Amadeo Ross .38-caliber revolver and five rounds of ammunition despite a prior conviction for felonious assault.
McCarty was arrested on March 17 with a Taurus 9 mm handgun and 20 rounds of ammunition, despite prior convictions which made it illegal for him to have a firearm, including multiple drug trafficking crimes, attempted felonious assault of a peace officer, and attempted felonious assault with repeat violent offender specification.
Rushton was arrested on March 14 with a SCCY 9 mm pistol and ammunition despite a prior felony conviction for assault, according to the indictment.
This case is being prosecuted as part of "Project Safe Neighborhoods," a gun violence reduction program administered by the Department of Justice, U.S. Attorney's Office for the Northern District of Ohio. The program targets armed criminals for federal prosecution.
These cases were investigated by the Bureau of Alcohol, Tobacco and Firearms, the Cleveland Division of Police, the Ohio State Highway Patrol, the Ohio Adult Parole Authority, the Elyria Police Department, the Youngstown Police Department and the Bureau of Immigration and Customs Enforcement.
They are being prosecuted by Assistant U.S. Attorneys Brian S. Deckert, Payum Doroodian, Danielle K. Angeli and David M. Toepfer.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Simi Valley Man Pleads Guilty to Impersonating ICE AgentRead the Press Release
LOS ANGELES – A Simi Valley man has pleaded guilty to impersonating a special agent with U.S. Immigration and Custom Enforcement’s Homeland Security Investigations and, in that false persona, ordering a teenage boy out of a car before seizing and searching the minor’s cellphones without permission.
Farad Gharagozlou Bell, 63, pleaded guilty on Thursday to one count of false impersonation of a federal officer before United States District Judge S. James Otero.
By pleading guilty, Bell admitted that on December 2, 2017, he confronted a 15-year-old boy in the parking lot of the Pacific View Mall in Ventura. Bell was angry that the boy had sold a guitar that Bell had wanted to buy after seeing it offered for sale in an online advertisement. At the time, Bell was displaying a badge purporting to identify him as a “Special Agent” of “ICE” and bearing the purported seal of the U.S. Department of Homeland Security.
Bell ordered the boy out of a vehicle in which he was sitting with his family, pushed him against the car and patted him down for weapons. Bell seized the boy’s cellphones and looked through them without permission. A witness called the police, and when Ventura Police officers arrived, Bell told the officers that he was an agent with Homeland Security and that he worked with ICE. Bell also told the officers that he had formerly worked with the Drug Enforcement Agency. When asked for photo identification showing that he was a federal agent, Bell showed them a card bearing the words “UNITED STATES IDENTIFICATION” and three purported seals of the U.S. Department of Homeland Security.
In a plea agreement filed in United States District Court, Bell admitted that he was not employed by the U.S. Department of Homeland Security, and that the badge and identification card he showed to the boy and to Ventura Police Officers were fraudulent. He also admitted that he had never been employed by the DEA.
As a result of today’s guilty plea, Bell faces a statutory maximum sentence of three years in federal prison when he is sentenced by Judge Otero on October 1. As part of the plea agreement, prosecutors have agreed to recommend a sentence of home detention and community service.
This case was investigated by Homeland Security Investigations.
This matter is being prosecuted by Assistant United States Attorney Ranee A. Katzenstein, Chief of the Major Frauds Section
Sex Trafficker Sentenced to Federal Prison TimeRead the Press Release
Charleston, South Carolina---- United States Attorney Sherri A. Lydon stated today that defendant Damon Jackson (aka “D”, aka “Daddy Frost”) was sentenced to 40 years imprisonment in United States District Court in Charleston for his role in a conspiracy to force underage girls and young women into sex trafficking by means of force and threats of force throughout the southeast.
Defendant Jackson was previously convicted at trial in March 2017 along with two co-defendants Bakari McMillan, a/k/a “Bizzle”, age 25, of Columbia, and Corey Miller, a/k/a “Clow”, a/k/a “C”, a/k/a “OG P”, age 44, of Orangeburg. McMillan was sentenced to 40 years imprisonment for his conviction on one count charging Conspiracy to Commit Sex Trafficking, in violation of 18 U.S.C. §§ 1591(a)(1), (a)(2), and 1594(c) along with one count of Trafficking of a Minor for Sex Involving Force, Fraud, and Coercion, in violation of 18 U.S.C. §§ 1591(a)(1) and (b)(1). Mr. Miller, also convicted of the Conspiracy Count, was sentenced to 20 years imprisonment for Sex Trafficking by Force, Fraud, or Coercion, in violation of 18 U.S.C. §§ 1591(a)(1), (b)(1), and 2.
The remaining defendants previously pled guilty to one count of Conspiracy to Commit Sex Trafficking.
Defendant Tremel Black, a/k/a “Sincere”, a/k/a “New York”, age 33, of New York, was sentenced to 25 years imprisonment.
Defendant Robert Black, a/k/a “Kareem Banks”, a/k/a “Nino Black”, a/k/a “Black”, age 47, of New York, received a sentence of 20 years imprisonment.
Defendant Desmond Singletary, a/k/a “Six”, age 32, of Florence, was sentenced to 15 years imprisonment.
Defendant Kerry Taylor, a/k/a “KJ”, age 23, of Columbia, was sentenced to 11 years imprisonment.
Defendant Ryan Turner, a/k/a “Gotti” , a/k/a “Qweezy”, age 25, of Columbia, was sentenced to 10 years imprisonment.
Defendant Da’Shun Curry, a/k/a “Dae Dae”, age 25, of Columbia, was sentenced to 9 years imprisonment.
Defendant Howard Parker, a/k/a “Poppa”, age 25, of Columbia was sentenced to 6 years imprisonment.
Evidence presented at the trial and sentencing hearings established that the defendants preyed on over 100 vulnerable female victims, many minors, forcing them on an almost a daily basis to have sex with numerous “Johns” a night from 2014 through the summer of 2016. The defendants used brutal tactics, including physical beatings, brandings, supplying and withholding of drugs, threats, and various other forms of psychological manipulation in order to ensure their victims complied with a series of rules that were imposed upon them.
As part of their sentences, all of the defendants were given lifetime supervision, mandatory registration as a sex offender, and participation in a computer/internet monitoring program, amongst other conditions imposed on convicted sex offenders.
“These sentences send the clear message that human trafficking will not be tolerated in South Carolina,” said United States Attorney Sherri A. Lydon. “The defendants in this case preyed on some of the most vulnerable among us. Without the coordinated effort of the investigative team, these atrocities may never have come to light.”
“Human trafficking is a form of modern-day slavery, and the threats and abuse inflicted on these particular victims only adds to the heinous nature of the crime,” said Special Agent in Charge of Homeland Security Investigations Atlanta Nick S. Annan. “HSI is committed to working with our federal, state and local partners to find and prosecute criminal traffickers while ensuring the victims of this terrible crime are rescued and get the care they need.”
The case was investigated by Special Agent Shawn Caines with Homeland Security Investigations and Detective Charlie Benton with the City of North Charleston Police Department’s Human Trafficking Unit. Assistant United States Attorneys Matt Austin and Rhett Dehart of the Charleston office prosecuted the case.
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Salvadoran National Indicted on Immigration and Voter Fraud Violations in East TexasRead the Press Release
BEAUMONT, Texas –A 57-year-old Salvadoran national has been indicted on federal immigration violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Mario Obdulio Orellana was named in a five-count indictment returned by a federal grand jury on June 6, 2018 charging him with two counts of false representation of U.S. citizenship, false statement in application for a passport, unauthorized use of a Social Security number, and voter fraud. Orellana made an initial appearance before U.S. Magistrate Judge Keith Giblin on June 21, 2018.
According to the information presented in court, Orellana is alleged to have illegally entered the United States from El Salvador in the early 1980s. In 1987, while illegally residing in Shelby County, Texas, Orellana is alleged to have used falsified documents to obtain a birth certificate showing he was born in the United States; a passport as a U.S. citizen; and a social security number and register to vote as a U.S. citizen. Furthermore, Orellana is alleged to have fraudulently voted in the November 2016 election.
Under federal statutes, Orellana faces up to 10 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the U.S. Department of State, Bureau of Diplomatic Security and prosecuted by Assistant U.S. Attorney Lauren Gaston.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Sacramento Area Woman Charged with Forcing Victims to Provide Labor and Related OffensesRead the Press Release
The Justice Department today announced that Firdos Sheikh, 58, of Elk Grove, California, was indicted by a federal grand jury in the U.S. District Court for the Eastern District of California on two counts of forced labor, two counts of alien harboring for financial gain, one count of obstructing a forced labor investigation, and one count of making false statements to federal agents. The announcement was made by Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division.
According to the indictment, between October 2008 and June 2013, the defendant harbored and concealed two victims on her property and other locations and forced them to provide labor and services for her financial benefit. In July 2013, the defendant lied to federal agents and attempted to hide one of the victims from the agents in order to obstruct their investigation.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty. If convicted, the defendant faces a maximum sentence of 20 years in prison, a $250,000 fine, and mandatory restitution to the victims.
The case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Trial Attorneys William E. Nolan and David Reese of the Civil Rights Division’s Criminal Section and Human Trafficking Prosecution Unit, with assistance from Trial Attorney Amanda Wick of the Criminal Division’s Money Laundering and Asset Recovery Section.
Rochester Felon Charged with Drug Distribution, Illegal Possession of FirearmsRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging RASHAD DARNELL NORWOOD, 38, with illegal possession of firearms and distribution of methamphetamine and cocaine. NORWOOD, who is currently in custody in Olmstead County on state charges, made his initial appearance earlier today before Magistrate Judge Jon T. Huseby in U.S. District Court in Saint Paul, Minnesota.
As alleged in the indictment, NORWOOD has three prior felony convictions, including drug possession in Dodge County and Ramsey County, and second-degree murder in Blue Earth County, which prohibit him from owning or possessing a firearm. NORWOOD was also charged with one count each of methamphetamine and cocaine distribution.
This case is the result of an investigation conducted by the FBI and the Rochester Police Department.
This case is being by Assistant U.S. Attorney Bradley M. Endicott.
Defendant Information:
RASHAD DARNELL NORWOOD, 38
Rochester, Minn.
Charges:
- Felon in possession of firearms, 1 count
- Possessing firearms in furtherance of drug-trafficking crime, 1 count
- Possession with intent to distribute methamphetamine, 1 count
- Possession with intent to distribute cocaine, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Remarks by U.S. Attorney William M. McSwain at the Delaware Valley Intelligence Center Regional RoundtableRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain was honored to speak today at the Delaware Valley Intelligence Center Regional Roundtable in Philadelphia, PA. The Delaware Valley Intelligence Center (DVIC) was established to create cross-jurisdictional partnerships between agencies and serves as the informational fusion center for the Delaware Valley region. U.S. Attorney McSwain’s remarks are below.
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Thank you all for gathering here today. I would especially like to thank Inspector Walter Smith, Executive Director of the Delaware Valley Intelligence Center, Philadelphia Police Department, and Stacy Irving, Senior Advisor, Homeland Security Planning & Strategic Partnerships, Delaware Valley Intelligence Center, Philadelphia Police Department, for inviting me to speak. It was not too long ago that many of us were gathered in this same place for the 2018 Anti-Terrorism Advisory Council Conference, which was an in-depth and highly educational program that helped all of us to further our collective mission of keeping our country safe.
Safeguarding our national security is critically important to the U.S. Attorney’s Office, just as it is for everyone here today. It is also, without question, the number one priority of the U.S. Department of Justice. The Department of Homeland Security has prioritized state and major urban area fusion centers such as this one, because they know that intelligence collection and information sharing are critical in this fight. That is why the Delaware Valley Intelligence Center is so important. This cross-jurisdictional partnership between local, state, and federal agencies, as well as private sector participants, ensures that the Delaware Valley region has a community-focused public safety strategy. Everyone benefits from a continuous flow of intelligence and information to assist public safety field operations.
Our region has already seen firsthand how these relationships can help. For example, on May 12, 2015, an Amtrak Northeast Regional Train derailed after departing Philadelphia on its way to New York, which was the worst train disaster that our area has experienced in decades. Moments after the crash, emergency calls went out across the area, and scores of first responders from federal, state, and local law enforcement authorities responded. There is no doubt that authorities knew who to call that day because of relationships built through groups like this one.
We can only succeed with the collaboration and partnership of each of you. And those partnerships cannot be built in a day. We all need to work together when times are good so that we know what to do and who to call when they are not. To this end, one of my first initiatives after I became U.S. Attorney in April was to visit the nine counties that make up the Eastern District of Pennsylvania and meet with their district attorneys and local law enforcement leaders. It is a priority of my Office to continue to foster these relationships and always keep our lines of communication open. These personal connections are crucial to successful prosecutions everywhere across this region.
Additionally, I want law enforcement to know how much my Office appreciates them. The first public speech that I gave after becoming U.S. Attorney was to the Philadelphia Police Department leadership and to recruits at the Police Academy. As I said to them, no prosecutor has ever prosecuted any case without the help of an outstanding law enforcement partner, whether that is at the federal, state, or local level. There are no greater heroes than those in law enforcement who have dedicated their lives to keeping our communities safe – to the point that they’re willing to risk their own lives to do it. And there is no better way to support law enforcement than to make sure that they have the assistance needed to protect our community from terrorism.
I am aware of some of the difficulties in prosecuting national security cases. There are many law enforcement partners to consult and so many levels of review in the Department of Justice that it often may feel difficult to see a prosecution through to its natural conclusion. I want to share with you that the Department of Justice is working to eliminate some of those hurdles. DOJ has put new procedures in place to streamline the review process to make sure that if a national security prosecution is the correct approach, DOJ will have the most efficient process in place to pursue these significant cases.
My Office has had great success in the past few years in our efforts to prosecute national security cases and hold people accountable for terrorism, violations of the Armed Export Control Act, and cybercrime. For example, Keonna Thomas, a Philadelphia woman who was charged and pled guilty to one count of attempting to provide material support to a terrorist organization, was sentenced to eight years in federal prison. Thomas plotted to travel to Syria to join the Islamic State and told another individual that taking part in a martyrdom operation “would be amazing.” This case, prosecuted by First Assistant U.S. Attorney Jennifer Williams and a colleague from the Counterterrorism Section in the Justice Department’s National Security Division, was investigated by the FBI’s Joint Terrorism Task Force and the Philadelphia Police Department.
And many terrorism cases involve agency partnerships not only at home, but also abroad. Ali Charaf Damache, also known as “Theblackflag,” was indicted in the Eastern District of Pennsylvania in 2011 and extradited from Spain last year for his involvement in conspiring to provide material support and resources to terrorists. He is currently awaiting trial. Two of his co-conspirators, Colleen LaRose (also known as “Jihad Jane”) and Jamie Paulin Ramirez (also known as “Jihad Jamie”), have previously pled guilty and are serving ten years and eight years in prison, respectively. Again, First Assistant U.S. Attorney Williams prosecuted these cases in conjunction with the Counterterrorism Section of the Justice Department’s National Security Division, the Office of International Affairs in the Justice Department’s Criminal Division, the FBI’s Joint Terrorism Task Force in Philadelphia, the FBI Field Divisions in New York, Baltimore, Washington D.C., and authorities in Ireland and Spain. Sometimes it takes many hands and many minds across the globe to get the job done right.
Our National Security section in the U.S. Attorney’s Office does not only focus only on traditional terrorism cases. For example, we uphold the Arms Export Control Act, which prohibits the export of high tech military technology that is critical to the national security and foreign policy interests of the United States. We must keep important technology out of the hands of potential adversaries. In United States v. Baltutski, we charged a group of individuals who conspired to purchase and unlawfully export night vision devices to Belarus. Baltutski arranged for hundreds of thousands of dollars to be secretly wired, via offshore shell companies, to purchase these items, pay for shipping, and pay his network of buyers. For his efforts, Baltutski received a sentence of 15 years’ incarceration, which is one of the longest sentences under the Armed Export Control Act in U.S. history. This case was prosecuted by Assistant U.S. Attorney Robert Livermore and colleagues from DOJ’s Organized Crime and Gang Section, and the National Security Division, and was investigated by the U.S. Immigration and Customs Enforcement, Homeland Security Investigations and the FBI. That case took extensive and dedicated investigative work to result in such a significant sentence.
We also continue to defend ourselves from cybercrime attacks. More and more criminals are exploiting the convenience and anonymity of the Internet to commit crimes and cause serious interruptions and destruction across the United States and around the world. It is my belief that cybercrime will only become more sophisticated, as technology advances and criminals seek to invade and destroy our financial markets, electrical power grids, emergency response systems, and nuclear plants, often from the comfort of their own homes. In the last few years, the U.S. Attorney’s Office has successfully prosecuted numerous cybercrimes, including individuals who hacked into everything from a gas company’s computers, to systems that read utility meters remotely, to Comcast’s server. We are dedicated to continuing our efforts in this field.
And this really just scratches the surface. As you all know, so many of our cases and investigations are not currently public. And many matters do not end in prosecution, but instead produce new investigative leads and sources of information that can be equally (if not more) valuable than a case in the court system.
As we have been sadly reminded by recent events, not all terrorism is international. Far too often in this country, we as a nation have grieved the brutal murders of innocent people as a result of mass shootings and domestic terrorism. Americans should be safe from such terror, no matter who or where they are. Studying in school or going to work, worshiping at church or cheering for friends at a marathon, relaxing at a movie theater or enjoying an evening at a night club – all of these activities should be safe-havens for every American. But as we know, places like these have turned into horrific crime scenes over the past few years where innocent lives have been lost. One more mass shooting is one too many.
The U.S. Attorney’s Office takes seriously every threat of gun violence in our community and will do everything in our power to prevent tragedy from occurring. As but one example, we recently charged An-Tso Sun by federal complaint with possessing ammunition while being in the United States on a nonimmigrant visa, which is a felony under federal law. According to the complaint, on or about March 26, 2018, Sun told a fellow student, “Hey, don’t come to school on May 1st . . . I’m going to come here armed and shoot up the school.” Then he added: “Just kidding.” But this was no laughing matter, as the complaint alleges that multiple items were recovered from Sun’s bedroom, including stockpiles of ammunition, and various firearm accessories and shooting equipment. This case is on-going.
I am proud to say that this was another example of numerous investigative and operational bodies working together. From the student who first reported the alleged threat, to the Upper Darby Police Department and the Delaware County District Attorney’s Office, to the Department of Homeland Security, Homeland Security Investigations and my Office, we worked together to successfully prevent a potential school tragedy.
But we cannot do it alone. I recently addressed the media about the An-Tso Sun case and I urged all parents and citizens to take notice of what is going on around them. We need to remind people that law enforcement is not the first line of defense. That duty belongs to our citizens. They are the ones who will see the first clues that something is amiss in their everyday lives. They are the ones who might get a bad feeling about something at their schools, in their offices, during their social activities, and who will need to pick up the phone. As a group, we need to continue to encourage people to make that call. There are too many stories of parents, of teachers, of neighbors, who belatedly say they “always knew something was wrong” about someone in their lives, but they didn’t sound the alarm and instead chose to stick their heads in the sand. We need them to make the call.
When they do make the call, they will call one of us. And because of the partnerships built through cooperative intelligence centers like DVIC, we will be ready.
Thank you for your partnership with my Office, thank you for all that you do for our community, and God Bless you.
Registered Nurse Formerly Employed by Hospice Care Provider Sentenced to Three Years for Prescription Opioid ConvictionRead the Press Release
ALBUQUERQUE – A registered nurse, formerly employed by an Albuquerque-area hospice care provider, was sentenced yesterday afternoon in federal court in Albuquerque, N.M., for her conviction on a prescription opioid conspiracy charge. Desiree Ulibarri, 32, of Albuquerque, will serve 36 months in federal prison followed by three years of supervised release.
Ulibarri and co-defendant Annabel Debari, 37, also of Albuquerque were charged in August 2016, in a two-count indictment with conspiracy to distribute oxycodone, and conspiracy to acquire and obtain oxycodone by fraud and deceit. According to the indictment, the two women committed the crimes in Bernalillo County, N.M., between April 2016 and July 2016.
The investigation of this case began on July 21, 2016, after Ulibarri’s employer, a hospice care provider, contacted DEA to report suspicions that Ulibarri was engaged in prescription pill diversion. The employer became suspicious because Ulibarri was documenting patients’ prescriptions in a way that made it difficult to reconcile the medications and because Ulibarri was picking up patients’ prescription pills at Federal Express instead of having the medication delivered to the patients.
On July 22, 2016, DEA agents seized 80 10-mg oxycodone pills from Ulibarri, which she obtained from packages she retrieved from Federal Express. When DEA agents conducted a consensual search of Ulibarri’s cellular phone, they allegedly found evidence that Ulibarri had been conspiring with a co-worker, who is also a registered nurse, to illegally distribute prescription pills since April 2016. Additionally, a review of records of missing packages revealed that at least 3,870 pills, an aggregate of 42,150 mgs of oxycodone, had been diverted during the course of the conspiracy.
On June 15, 2017, Ulibarri pled guilty to the indictment. In her plea agreement, Ulibarri admitted that she was a registered nurse in March 2016, when she was hired by a hospice care provider, and in April 2016, she began to abuse her position to divert prescription medications from their intended recipients. She acknowledged that she recommended oxycodone prescriptions for patients who did not need oxycodone with the intention of selling the pills to others. Ulibarri admitted arranging for a courier service to hold packages of oxycodone intended for patients for pickup instead of delivering the medication to the patients, and picking up the medication herself so she could divert the oxycodone for distribution and her own personal use. Ulibarri also admitted recommending that her employer hire Debari, who was also a registered nurse, so that Debari could assist her in diverting and distributing oxycodone pills in New Mexico.
Debari entered a guilty plea to similar charges on Dec. 9, 2016. In entering her guilty plea, Debari admitted that she personally diverted at least 750 10-milligram oxycodone pills in furtherance of Ulibarri’s diversion scheme. As part of that scheme, on June 7, 2016, Ulibarri called the courier service and pretended to be the intended recipient of the oxycodone pills, and requested that the courier service release the medication to Debari. Debari also admitted that on July 18, 2016, she helped Ulibarri conceal their diversion scheme from their employer by arranging for another person to call their employer and falsely claim to be an employee of the courier service who was reporting that the oxycodone pills had gone missing.
Debari’s sentencing hearing has yet to be scheduled.
This case was investigated by the Tactical Diversion Squad of the DEA in Albuquerque. DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
Assistant U.S. Attorneys Alexander M. Uballez and Kristopher N. Houghton are prosecuting the case pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Rapid City Man Sentenced to Sixty Years in Prison for Attempted Sexual Exploitation of MinorsRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted on two counts of Attempted Sexual Exploitation of a Minor was sentenced on June 18, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Chance Garrett Williams, age 38, was sentenced to 30 years in prison on each count, to run consecutively, for a total sentence of 60 years in prison, followed by lifetime supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Williams was charged on June 20, 2017. The conviction stems from Williams’ molestation and production of child pornography of multiple children, one starting when she was approximately 4-5 years old.
“This defendant committed unimaginably horrendous crimes against these brave young children,” said U.S. Attorney Parsons. “As they grow up and try to build lives for themselves, they will at least be secure with the knowledge that the person who did this to them is locked up in a federal prison where he surely belongs.”
The case was investigated by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.