Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 20 June 2018
Portland Couple Accused of Interstate Distribution of Marijuana and Firearms CrimesRead the Press Release
PORTLAND, Ore. – Isaiah Lee Holt, 30, and Marjorie Livingston, 37, residents of Portland, were charged today in a five-count indictment alleging the couple engaged in a conspiracy to distribute marijuana and illegally purchased and possessed firearms.
Holt is charged with one count each of conspiracy to distribute and possess with intent to distribute marijuana, possession with intent to distribute marijuana, possession with intent to distribute cocaine, and felon in possession of a firearm.
Holt made an initial appearance today in federal court before U.S. Magistrate Judge Paul Papak. He will appear at an arraignment and detention hearing on June 21, 2018.
Livingston is charged with one count of conspiracy to distribute and possess with intent to distribute marijuana and one count of making false statements during the purchase of a firearm. She is expected to make her first appearance before a federal magistrate judge on or before June 22, 2018.
According to court documents, in February 2018, Livingston is alleged to have illegally purchased a firearm for Holt, a convicted felon, at a licensed federal firearms dealer located in Portland.
ATF agents obtained a search warrant on Holt and Livingston’s NE Portland residence. On April 4, 2018, while surveilling Holt and the residence, agents contacted Holt and conducted a search of his person. Holt possessed two cell phones, two bundles of cash, two sets of keys, and seven small baggies of cocaine weighing approximately 11.5 grams.
Later the same day, agents conducted a search of the residence where they found materials consistent with drug trafficking including digital scales, small baggies, and Inositol, an agent commonly used for “cutting” cocaine. Subsequent searches of the residence revealed a locked safe containing $46,100 in cash, two large plastic totes containing approximately 14 pounds of marijuana, U.S. Postal Service mailing labels, a heat sealer and food saver bags. Agents also found a Ruger AR-556 rifle, a Taurus 9mm pistol and a loaded M&P Shield .40 caliber firearm with an attached Crimson Trace laser.
Searches conducted of Holt and Livingston’s phones revealed numerous text and picture messages referencing marijuana and bank deposits. Messages were exchanged with phone numbers in North Carolina, Georgia, Texas and Florida. These messages included photos of bulk marijuana, shipping receipts, and bank deposit receipts.
An indictment is only an accusation of a crime; defendants are presumed innocent unless and until proven guilty.
Pawtucket Man Sentenced to 81 Months in Federal PrisonRead the Press Release
PROVIDENCE, RI – A Pawtucket man previously convicted on drug trafficking and firearm charges, and who became the focus of a joint Pawtucket Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and ATF Task Force drug trafficking investigation, has been sentenced to more than 6 years in federal prison for being in possession of significant quantities of crack cocaine, marijuana, and Oxycodone, and a loaded firearm.
Estafano J. Lobo, 26, was sentenced by U.S. District Court Chief Judge William E. Smith to 81 months in federal prison, to be followed by four years supervised release. Lobo pleaded guilty on March 20, 2018, to possession with intent to distribute cocaine base, possession with intent to distribute Oxycodone, possession with intent distribute marijuana, and felon in possession of a firearm.
Both the government and the defense recommended the court impose a sentence of 81 months of incarceration. The U.S. Sentencing Guideline imprisonment range in this matter is 92-155 months.
According to information presented to the Court, an investigation into Lobo’s drug trafficking activities by Pawtucket Police detectives, ATF agents, and members of the ATF Task Force, included an undercover purchase of narcotics from Lobo on October 2016. On October 25, 2016, the detectives, agents and members of the ATF Task Force executed a court-authorized search of Lobo’s residence and seized 53.34 grams of cocaine base, 544.15 grams of marijuana, 56 pills each containing 20 milligrams of oxycodone, a .357 caliber revolver with five rounds of hollow point bullets, and $13,316 cash.
According to court records, Lobo was previously convicted on Rhode Island and Massachusetts state court drug trafficking and firearm charges.
Lobo’s sentence is announced by United States Attorney Stephen G. Dambruch, Pawtucket Police Chief Tina Goncalves, and Mickey Leadingham, Special Agent in Charge of the Boston Field Division of ATF.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
###
Owner of Financial Services Business Convicted of Preparing False Tax ReturnsRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted an Annandale man today on charges of conspiracy, aiding in the preparation of false tax returns, mail and wire fraud. The jury also determined that over $1.34 million should be forfeited as proceeds of the crime.
According to court records and evidence presented at trial, Jose Manlapaz, 55, owned and operated a tax preparation business named JBM Financial Services or JBM Financial Group in Falls Church, Virginia. Between 2007 and 2017, Manlapaz prepared thousands of false tax returns for his clients by adding false or inflated items, including education credits, childcare expenses, and fake businesses. Manlapaz knew that the items he added to client returns would cause many clients to be audited, and set up a document mill in the Philippines called TMendoza Accounting Services to fabricate fake receipts and tax forms that he could submit on behalf of his clients to the IRS. Manlapaz made money by charging higher fees for getting clients higher refunds and for preparing fraudulent responses to IRS audit notices. After he learned of the criminal investigation in 2013, Manlapaz and JBM kept preparing false tax returns, but removing his preparer information so it looked like his clients were submitting the returns.
Manlapaz was convicted on Wednesday of conspiracy, aiding in preparation of false tax returns, mail fraud and wire fraud. He faces a maximum sentence of 20 years in prison when sentenced on September 28. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Kelly R. Jackson, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after U.S. District Judge Anthony J. Trenga accepted the verdict. Assistant U.S. Attorneys Katherine L. Wong and Kimberly R. Pedersen are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-115.
Ohio Man Sentenced to 16 Years in Prison for Providing Support to ISIS, Being a Felon in Possession of FirearmsRead the Press Release
Amir Said Rahman Al-Ghazi, 41, aka Robert C. McCollum, of Sheffield Lake, Ohio, was sentenced to 16 years in prison for one count of providing material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, as well as two counts of being a felon in possession of firearms.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Justin E. Herdman for the Northern District of Ohio, and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division made the announcement.
“The National Security Division is committed to identifying and prosecuting those who seek to provide material support to terrorist groups like ISIS.” said Assistant Attorney General Demers. “I want to thank the prosecutors and our partners in law enforcement—including the FBI and its Joint Terrorism Task Force—who ensured that this defendant was held accountable for his crimes.”
“This case is a stark reminder that ISIS is more than an abstract threat,” said U.S Attorney Herdman. “Through social media and other means, ISIS and groups like it seek to radicalize people of all backgrounds into its world of violence.”
“This case demonstrates law enforcement’s number one priority – to keep our communities and our nation safe,” said Special Agent in Charge Anthony. “It is clear that no area is immune from the influence of ISIS and its supporters. We hope this case will serve as a strong message to others who may consider providing support to terrorists. The FBI and our Joint Terrorism Task Force partners are committed to identifying and stopping these individuals.”
Al-Ghazi, who changed his name from Robert McCollum last year, pledged his support to ISIS and Abu Bakr Al-Baghdadi via social media in 2014. From July 2014 to June 2015, Al-Ghazi made multiple statements trying to persuade others to join ISIS. He also expressed his own desire to perpetrate an attack on the United States and had attempted to purchase an AK-47 assault rifle. Al-Ghazi has communicated with individuals he believed to be members of ISIS in the Middle East and took steps to create propaganda videos for ISIS, according to court documents.
This case was investigated by the FBI’s Joint Terrorism Task Force. This case is being prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd of the Northern District of Ohio, with assistance from Trial Attorney Erin Creegan of the National Security Division’s Counterterrorism Section.Opioid Crisis Update:Read the Press Release
SIOUX FALLS, SD – In the ongoing coordinated law enforcement effort to combat the opioid crisis in South Dakota, United States Attorney Ron Parsons announces that two more individuals have been indicted by a federal grand jury and made their initial appearances before federal magistrate judge Veronica L. Duffy on heroin- and fentanyl-related charges.
Andy Ontiveros, age 38, of South Gate, California, was indicted by a federal grand jury for possession with intent to distribute heroin and fentanyl. Ontiveros was found to be in possession of several pounds of heroin and fentanyl by the Minnehaha County Sheriff’s Office and South Dakota Highway Patrol. This is believed to be the largest seizure of both heroin and powdered fentanyl in South Dakota history.
In addition, Corrod Phillips, age 26, of Chicago, Illinois, was indicted by a federal grand jury for possession with intent to distribute heroin. Phillips was arrested by Sioux Falls Area Drug Task Force members in possession of several grams of heroin.
Both men appeared before Judge Duffy in federal district court in Sioux Falls on June 15, 2018. Phillips was returned to the custody of the Minnehaha County Sheriff, and Ontiveros was placed into the custody of the U.S. Marshals. If convicted, Phillips faces a maximum of twenty years in federal prison; Ontiveros faces a mandatory period of 10 years in federal prison and a maximum of life.
The U.S. Attorney’s Office is working closely with the Sioux Falls Area Drug Task Force, Minnehaha County Sheriff’s Office, Sioux Falls Police Department, South Dakota Highway Patrol, South Dakota Division of Criminal Investigation, the Drug Enforcement Administration, and our other federal, state and local law enforcement partners to investigate and prosecute these cases.
“Our local law enforcement partners deserve all of the credit for these investigations and arrests,” said U.S. Attorney Parsons. “They have taken a tremendous amount of these deadly drugs off of the street – enough to kill thousands of people. We owe a debt of gratitude to these dedicated teams of law enforcement professionals who are working hard every day to save lives by keeping this poison out of our communities.”
The charges are merely accusations and these defendants are presumed innocent until and unless proven guilty.
North Providence Dentist Pleads Guilty to Tax EvasionRead the Press Release
PROVIDENCE, RI – A North Providence, RI, dentist pleaded guilty in U.S. District Court in Providence on Tuesday to tax evasion, admitting that he diverted and failed to report as much as $1.2 million dollars in payments made to his business, announced United States Attorney Stephen G. Dambruch and Kristina O'Connell, Special Agent in Charge of Internal Revenue Service Criminal Investigation (IRS-CI).
Appearing before U.S. District Court Chief Judge William E. Smith, Lawrence P. Stephenson, DDS, 72, of Lincoln, RI, whose dental practice is located in North Providence, admitted to the Court that in as early as 2011, he began diverting a portion of his practice’s business receipts by depositing numerous checks from insurance carriers and patients into a personal bank account. An investigation by IRS-CI revealed that Stephenson failed to report approximately $1.2 million dollars paid to his dental practice and deposited elsewhere, thus failing to pay taxes due the IRS.
Over the years Stephenson made significant withdrawals from the personal account, including approximately $530,000 in 2013 and 2014. The funds were transferred to other banks and investment accounts he owned. Some of the funds he withdrew were used to pay personal expenses.
In 2013 alone, Stephenson admitted to underreporting his income to the IRS by more than $320,000.
Stephenson is scheduled to be sentenced on October 12, 2018.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
###
New York Man Pleads Guilty to Attempting to Provide Material Support to ISISRead the Press Release
Parveg Ahmed, 22, of Queens, New York, pleaded guilty today to attempting to provide material support or resources to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Richard P. Donoghue for the Eastern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office, and Commissioner James P. O’Neill of the NYPD, announced the guilty plea, which was accepted by U.S. District Judge Ann M. Donnelly.
As detailed in publicly filed court documents, the defendant is a U.S. citizen who traveled to Saudi Arabia in June 2017, purportedly to celebrate an Islamic religious holiday. Upon his arrival in Saudi Arabia, the defendant attempted to travel to Syria to join ISIS. The defendant was apprehended in a country bordering Syria, during his attempted travel to ISIS-controlled territory. Ahmed was deported back to the United States on Aug. 28, 2017, where he was arrested at John F. Kennedy International Airport in New York.
Prior to his travel, the defendant had repeatedly expressed support on social media for ISIS and for individuals who provided support to the foreign terrorist organization’s mission of violent extremism. On July 17, 2017, JTTF agents obtained a search warrant for the defendant’s personal computer, and learned, among other things, that the defendant had viewed or listened to recordings of radical Islamic clerics Anwar al-Awlaki and Abdullah el-Faisal. Al-Awlaki was a U.S.-born cleric and prominent leader of the foreign terrorist organization al-Qaeda in the Arabian Peninsula who was killed on or about Sept. 30, 2011. El-Faisal, a Jamaican-born cleric, was found guilty in the United Kingdom of, among other things, solicitation to commit murder, for preaching to followers to kill individuals, including Americans, because he deemed them to be enemies of Islam. Additionally, agents learned that, on the same day the defendant left the United States for the Middle East, the defendant researched how to erase the data on his computer.
The defendant faces a statutory maximum of 20 years in prison at sentencing. The maximum potential penalty is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Assistant U.S. Attorneys Craig R. Heeren and Margaret E. Lee of the Eastern District of New York are in charge of the prosecution, with assistance from Trial Attorney Joshua Champagne of the National Security Division’s Counterterrorism Section.New York Man Admits Producing Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Pearl River, New York, man today admitted photographing and filming a child engaged in sexually explicit conduct and sharing those images online, U.S. Attorney Craig Carpenito announced.
Richard Murphy, 32, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with sexual exploitation of a minor.
According to documents filed in the case and statements made in court:
Murphy admitted that in December 2016, he persuaded a child to engage in sexually explicit conduct for the purpose of taking photos and videos of that conduct. Murphy also admitted that he took video of the child performing a sex act on him. In addition, Murphy admitted that he shared the sexually explicit images with another individual online.
The sexual exploitation charge carries a mandatory minimum sentence of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine. Sentencing is scheduled for Sept. 25, 2018.
U.S. Attorney Carpenito credited special agents of Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Brian Michael, with the investigation.
The government is represented Assistant U.S. Attorneys Danielle Alfonzo Walsman, Chief of the U.S. Attorney’s Office Public Protection Unit, and Leticia Vandehaar, Chief of Staff to the U.S. Attorney.
Defense counsel: David I. Goldstein, Chestnut Ridge, New York
New Orleans Man Sentenced for Federal Gun and Drug ChargesRead the Press Release
U.S. Attorney Duane A. Evans announced that KENZIE FAULK, age 58, of New Orleans, was sentenced on June 14 by United States District Court Judge Nannette Jolivette-Brown to credit for time served, for violating federal gun and drug laws. The United States Attorney’s Office charged KENZIE FAULK with possessing a firearm while being a convicted felon and conspiracy to possess marijuana with the intent to distribute.
According to court documents, on October 16, 2016, FAULK, a convicted felon, attempted to board a Southwest Airlines flight, departing from Louis Armstrong New Orleans International Airport, while he was in possession of a fully loaded revolver. TSA personnel located the weapon in a bag that FAULK was attempting to carry aboard the plane, which was destined to Los Angeles. TSA personnel became aware that a gun was inside of the bag when the TSA x-ray scan machine alerted to its presence. TSA agents confiscated the gun prior to FAULK boarding the plane.
In the days following his arrest, members of the FBI learned that FAULK was trafficking marijuana though the U.S. postal service. FBI agents conducted a search of FAULK’s residence and located a wooden crate that had been shipped from Los Angeles to New Orleans. After executing a search warrant, FBI agents located and confiscated three cellophane wrapped packages of high-grade marijuana inside of the crate, which was addressed to FAULK.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U.S. Attorney Duane A. Evans praised the work of the Federal Bureau of Investigation and the TSA in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution.
Nationwide Wound Services Provider Agrees to Pay Nearly $400,000 to Resolve False Claims Act AllegationsRead the Press Release
Healogics, Inc., a Florida-based provider of wound care services with clinics across the country, agreed to pay $398,162.69 to resolve False Claims Act allegations pertaining to improper coding. Specifically, the United States alleged that, from January 1, 2012, through June 30, 2017, Healogics submitted claims to Medicare, Medicaid, and Tricare using Modifier 25 to signify that a separate evaluation and management service was performed on the same date as another procedure when no such separate service was performed.
Because a private citizen filed a qui tam, or whistleblower, lawsuit raising the civil allegations, Healogics agreed to pay the citizen’s law firm an additional $48,694.37 in fees. That private citizen is also entitled to receive $91,577.42 of the recovery pursuant to the qui tam provisions of the False Claims Act. Those provisions permit private individuals with knowledge of wrongdoing to bring suit on behalf of the government for false claims and share in any recovery.
“This is yet another example of our office’s commitment to ensuring taxpayer money is well spent and health care providers play on a level playing field,” said United States Attorney Peter E. Deegan, Jr. “We encourage citizens with knowledge of wrongdoing by health care providers to bring those matters to our office’s attention.”
The case was investigated by the Department of Health and Human Services Office of Inspector General. The case file number is 16-cv-3016-MWB.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Follow us on Twitter @USAO_NDIA.
Multiple Defendants Plead Guilty to Drug Conspiracy and Firearms Charges in Federal Gang ProsecutionRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Joshua Randall, age 30, Brandon Randall, age 29, and Lee Tracy Riggins, Jr., age 27, pled guilty to participating in a drug conspiracy that operated in the Florence, Charleston, and Myrtle Beach areas of South Carolina. In addition, Joshua Randall pled guilty to possessing a firearm in furtherance of a drug trafficking crime, and Lee Tracy Riggins, Jr., pled guilty to conspiring to possess firearms in furtherance of a drug trafficking crime. Joshua Randall faces the possibility of life imprisonment as a result of his guilty plea, while Brandon Randall and Lee Tracy Riggins, Jr. face possible sentences of imprisonment of 20 years and 40 years respectively.
Assistant U.S. Attorney Andy Moorman and Assistant U.S. Attorney Everett McMillian are prosecuting the case.
Moorman told the Court during proceedings that these Defendants, working with other co-defendants, distributed heroin, cocaine, and/or marijuana to customers in Florence and Myrtle Beach.
The investigation has targeted members of the Billie East Side Bloods, a set of the United Blood Nation, and others who formed an agreement to distribute heroin, fentanyl, cocaine, and marijuana in South Carolina, and to traffic in and possess firearms for the purpose of advancing the drug conspiracy.
The investigation was and is being conducted by the FBI, the DEA, the Horry County Sheriff’s Office, the Horry County Police Department, the Myrtle Beach Police Department, the North Myrtle Beach Police Department, and the Georgetown Police Department.
#####
Mexican National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Duane A. Evans announced that RAMIRO MARTINEZ-RAMIREZ, age 42, a native of Mexico, was sentenced on June 15, 2018, to time served by U.S. District Court Judge Susie Morgan for illegal reentry of a removed alien.
In addition to being sentenced to time served, MARTINEZ-RAMIREZ was sentenced to one year of supervised release.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement – Enforcement and Removal Operations in investigating this matter. Assistant United States Attorney Chandra Menon was in charge of the prosecution.
Mexican Citizen Sentenced to Prison for Possessing a Firearm to Support of a Drug Trafficking CrimeRead the Press Release
PHOENIX – On June 18, 2018, Patricia Calderon-Monarrez, 47, of Sinaloa, Mexico, was sentenced by U.S. District Judge Douglas L. Rayes to 60 months in prison. Calderon-Monarrez had previously pleaded guilty to possessing a firearm in furtherance of a drug trafficking crime. Calderon-Monarrez does not have legal status in the United States and is subject to removal from the United States when she is released from prison.
On Oct. 5, 2017, federal agents approached Calderon-Monarrez in a parking lot while conducting an investigation into a Phoenix-based drug trafficking organization. A subsequent search of Calderon-Monarrez revealed a loaded firearm and ammunition in her purse. When agents searched the vehicle Calderon-Monarrez arrived in, they located more than 20 pounds of methamphetamine with a street value of more than $500,000, multiple brick-shaped packages containing more than nine pounds of cocaine with a street value of almost $100,000, and a backpack containing more than $64,000 in cash.
The investigation was led by the Drug Enforcement Administration and the Glendale Police Department, with assistance from the Phoenix Police Department, as part an operation supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The prosecution was handled by Matthew Binford, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-1353-PHX-DLR
RELEASE NUMBER: 2018-088_Calderon-Monarrez
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Man Sentenced to Conspiracy to Distribute and Possess with the Intent to Distribute HeroinRead the Press Release
U.S. Attorney Duane A. Evans announced that MICHAEL PENN, age 41, of Tickfaw, was sentenced on June 13 by United States District Court Judge Susie Morgan to a term of imprisonment 72 months for violating a federal drug law, conspiracy to distribute and possession with the intent to distribute heroin.
According to court documents, PENN was the target of a narcotics investigation that was investigated by members of the Drug Enforcement Administration and the Hammond Police Department. On five separate occasions, PENN sold heroin to an undercover officer with the Hammond Police Department at various locations within the Hammond area. Each transaction was audio and video recorded.
U.S. Attorney Duane A. Evans praised the work of the Drug Enforcement Administration and the Hammond Police Department in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution.
Maine Man Sentenced to 48 Months in Prison for Investment Fraud Scheme and Failing to File Federal Tax ReturnsRead the Press Release
CONCORD - William Bischoff, 76, of York, Maine, was sentenced to serve 48 months in prison for operating a multi-million dollar investment fraud scheme and failing to file federal income tax returns, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, from 2009 through September 2017, Bischoff defrauded more than two dozen clients of his financial advisory business by falsely promising to invest their money in real estate, structured legal settlements, high yield notes, and a start-up recycling business. He further guaranteed returns that far exceeded market norms. Bischoff sent many solicitations to the victims of the fraud scheme by e-mail.
In total, Bischoff stole $5,647,446.33 from the defrauded investors. To conceal that conduct, Bischoff used money he received from some victim investors to make payments to other victim investors. He also provided monthly account statements to the victim investors that falsely represented the balance of their (fictitious) investment accounts.
Bischoff’s also failed to file individual federal tax returns for the four-year period from 2011 to 2015, which resulted in a $568,845 tax revenue loss to the U.S. Treasury.
Bischoff pleaded guilty on March 9, 2018, to one count of wire fraud and one count of willfully failing to file federal tax returns.
“It is hard to comprehend the emotional and financial harm that Mr. Bischoff inflicted on the victims of his criminal conduct,” said U.S. Attorney Murray. “It is my sincere hope that the prosecution of this case will deter other people from engaging in similar conduct. Those who commit financial crimes should understand that we will aggressively prosecute them and will not hesitate to recommend substantial prison sentences.”
“Mr. Bischoff betrayed his unsuspecting clients and defrauded them out of millions of dollars through an elaborate scheme he devised for his own personal gain,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “The FBI is committed to working with our law enforcement partners in rooting out those who engage in financial crimes like this. Those who abuse their positions of trust to illegally enrich themselves will be held accountable for their actions.”
The Deputy Director of the New Hampshire Bureau of Securities Regulation, Jeffrey Spill, said, "The Bureau was pleased to do its part in this coordinated investigation. When the fraud was uncovered, the agencies acted quickly to shut the scheme down which prevented further losses."
"The role of IRS Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel," said Special Agent in Charge Kristina O’Connell of Internal Revenue Service Criminal Investigation, Boston Field Office. "The federal tax laws are routinely violated in these cases which can add additional jail time. “
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division, and the New Hampshire Bureau of Securities Regulation. Assistant United States Attorney Robert Kinsella prosecuted the case, which was originally handled by former Assistant U.S. Attorney Bill Morse.
###
Madison County Man Pleads Guilty as Convicted Felon Trying to Buy Gun with Counterfeit MoneyRead the Press Release
HUNTSVILLE – A Madison County man pleaded guilty today in federal court to being a convicted felon and trying to buy a pistol with counterfeit money, announced U.S. Attorney Jay E. Town, U.S. Secret Service Special Agent in Charge Michael Williams and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
MONTREZ CHEBEIR MARTIN, 33, pleaded guilty before U.S. District Judge Abdul Kallon to one count of passing counterfeit obligations or securities and one count of being a convicted felon in possession of a firearm. His sentencing is scheduled Oct. 2.
“Felons who desire to buy firearms will be aggressively prosecuted and should concern all of us. Felons who desire to buy firearms with counterfeit bills exacerbate our concerns even more,” Town said. “Thanks to the victim’s quick action in reporting the crime to police, and to the dedicated work of ATF and the Secret Service, this felon will serve federal punishment in a federal facility under the federal guidelines.”
“This individual was prevented from illegally purchasing a firearm with counterfeit currency,” Williams said. “This case highlights one of the many ways the U.S. Secret Service collaborates with local, state, and federal agencies to combat financial crimes affecting our communities.”
“This court action demonstrates ATF’s commitment to target illegal firearms trafficking in all forms, to include the use of the internet,” Watson said. “ATF’s Crime Gun Intelligence leverages technology to reduce violent firearms-related crimes.”
According to Martin’s plea agreement with the government, he attempted his gun purchase with counterfeit money as follows:
Martin answered an individual’s advertisement of a Smith & Wesson .40-caliber pistol and 450 rounds of ammunition for sale on the website, armslist.com, in September 2017. Martin and the seller agreed to meet in a Decatur business parking lot so Martin could buy the gun.
The seller first asked Martin if he were a felon, which Martin said he was not, and the seller then gave Martin the pistol and ammunition. The agreed price for the gun was $450. Martin gave the seller $400 and as he began counting it, Martin started walking quickly away. The seller realized the money was counterfeit, seeing Chinese characters on three $100 bills.
The seller pulled a pistol and jumped in front of the vehicle Martin was in, telling Martin to open the door and place the pistol and ammunition on the ground, and Martin complied before driving away.
The seller reported the incident to police and later picked Martin out of a photo lineup.
The maximum penalty for passing counterfeit obligations is 20 years in prison and a $250,000 fine, and the maximum penalty for being a felon in possession of a firearm is 10 years in prison and a $250,000 fine.
The Secret Service and ATF investigated the case in conjunction with the Decatur and Huntsville police departments. Assistant U.S. Attorney Davis Barlow is prosecuting the case.
###
Louisiana Man Pleads Guilty to Attempting to Purchase Cocaine with Intent to DistributeRead the Press Release
Gulfport, Miss. – Saul Guzman Ontiveros, age 42, of Terrytown, Louisiana, pled guilty yesterday before U.S. District Judge Louis Guirola, Jr. to attempting to purchase 5 kilograms of cocaine with intent to distribute, announced U.S. Attorney Mike Hurst and DEA Assistant Special Agent in Charge J. Derryle Smith.
In January and February of this year, a confidential source was approached by Guzman Ontiveros about purchasing cocaine from the source. Guzman Ontiveros agreed to purchase 5 kilograms of cocaine for $105,000. The government was able to seize $104,000 over the course of several days prior to the arrest of the defendant.
Guzman Ontiveros will be sentenced on September 27, 2018 by Judge Guirola, and faces a maximum penalty 40 years in prison and a $5 million fine.
The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John Meynardie.
Long Island Man Sentenced for Cyberstalking and Sending Drugs to Ex-GirlfriendRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.--U.S. Attorney James P. Kennedy, Jr. announced today that Thomas Traficante, 23, of Long Island, NY, who was convicted of cyberstalking and distribution of a controlled substance, was sentenced to 48 months by U.S. District Judge David G. Larimer
Assistant U.S. Attorneys Melissa M. Marangola and Richard A. Resnick, who are handling the case, stated that between October 2017 and December 2017, the defendant sent numerous threatening text messages to his ex-girlfriend (the Victim), her college classmates, and her housemates. The messages stated “its not safe out there tonight,” “there are various people among different orgs who have hurt me. My plan is to hurt them,” and “the only thing that helps is revenge.” Traficante also sent the Victim’s housemates numerous threatening voicemails, including one with a voice disguising device that stated, “I’m in the house.” The Victim changed her telephone number in order to avoid the defendant but he contacted her new telephone and her housemates, stating, “your all crazy if you think I’m not still out there.”
In addition, posing as the Victim, Traficante created a false prostitution advertisement on Backpage.com, which included the Victim’s new telephone number. The Victim received over 60 telephone calls from men seeking sexual encounters. Traficante also hacked into the Victim’s email and social media accounts, cellular telephone, as well as her and college account, which contained her grades, tests and assignments.
On one occasion, the defendant sent the Victim a message asking where she was together with a screenshot of her physical location. Such communications caused the Victim emotional distress. Traficante also hacked the Victim’s Amazon account and purchased a book about stalking, titled “I’m Watching You,” and sent it to her.
In November 2017, Traficante used a BB gun to shoot out the window of the Victim’s parents’ vehicle parked outside of their home as well as a window in their house.
Also, the defendant sent cocaine, a Schedule II controlled substance, to the Victim’s college mailbox on November 2 and anonymously contacted university police to advise them a package containing cocaine was being mailed to the Victim. Then, on November 8, 2017, Traficante mailed MDMA, a Schedule I controlled substance, to the Victim. On November 20, 2017, the defendant mailed a third package to the Victim which once again contained cocaine.
Judge Larimer admonished the defendant for terrorizing the Victim and the campus of Geneseo with threats that would result in “as much destruction as possible” and possibly death to the students attending Geneseo. Assistant U.S. Attorney Marangola told the court that, although there is no way to determine whether Traficante would have actually shot up the campus, a loaded AR 15 rifle was located in his residence at the time of his arrest. Marangola argued the verbal threats, the possession of the firearm and his escalating behavior were extremely concerning and that his arrest may have stopped a tragedy.
“I applaud the efforts of the members of the Geneseo University Police who did a tremendous job is tracking down the source of threatening text messages sent to students,” said U.S. Attorney Kennedy. “Their efforts very well may have prevented an unspeakable act of violence from occurring resulting in tragedy and heartbreak.”
The investigation also identified a prior victim who Traficante subjected to similar digital harassment in 2014-2015.
Today’s sentencing is the result of an investigation by the Geneseo University Police, under the direction of Chief Thomas Kilcullen, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
Lockesburg Man Sentenced to 30 Years in Federal Prison for Receiving Child PornographyRead the Press Release
Texarkana, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Nathan Karl Thomas, age 25, of Lockesburg, Arkansas was sentenced today to 360 months in federal prison followed by ten years of supervised release on two counts of Receipt of Child Pornography. Thomas was also ordered to pay $3,163.96 in restitution. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Texarkana.
According to court records, the York Regional Police Special Victims Unit in Canada initiated an investigation in 2014 of the distribution of child pornography, based on information that a Canadian citizen had uploaded to his computer images of minors engaged in sexually explicit conduct. Law enforcement officers in Canada learned that the images received by the Canadian citizen were sent from an internet protocol (IP) address associated with a residence in Texarkana, Texas.
Federal law enforcement officials in Texas identified the user of the IP address that sent the contraband images to the Canadian citizen. In December 2014, a search warrant was executed at Thomas’s residence in Lockesburg, Arkansas. Thomas’s cell phone and other electronic communication devices were seized pursuant to the search warrant and examined. The forensic examination of Thomas’s phone resulted in the recovery of Kik Messenger chat logs between Thomas and a minor female that contained sexually explicit conversations as well as photographs of the minor female engaged in sexual poses.
In addition to the images recovered from Thomas’s phone of the minor female engaged in sexually explicit conduct, forensic examiners discovered on Thomas’s cell phone a video depicting an adult female sexually abusing a two-year-old male. Law enforcement officers were able to identify the adult female as Haidy Branson, a Texas resident. Branson told law enforcement officers that she produced the video and sent it via the internet to Thomas at his request. Branson was prosecuted in the Eastern District of Texas for her production of the video containing images of the sexual abuse of the two-year-old child. Branson is serving a 21-year sentence in the federal Bureau of Prisons.
Thomas plead to an information in March of 2016.
This case was investigated by the Texarkana Child Advocacy Center, National Center for Missing and Exploited Children, the Arkansas State Police Cybercrimes Unit, the Department of Homeland Security, and the Arkansas Internet Crimes Against Children Taskforce. Assistant United States Attorneys Kyra Jenner and Ben Wulff prosecuted the case for the United States.
Last Defendant of the Meth Ring Pleads GuiltyRead the Press Release
St. Louis - The last of 52 defendants charged in a wide-ranging methamphetamine conspiracy entered a guilty plea before United States District Judge Catherine D. Perry on Wednesday, June 13, 2018. Defendant Israel Angeles-Moctezuma, also known as “Amigo,” entered his plea on the morning his Federal conspiracy trial was scheduled to begin. Without benefit of a plea agreement, Angeles-Moctezuma, 41, of Stockton, California, admitted to conspiring with others to transport methamphetamine into the St. Louis Metro area for distribution. He is scheduled to be sentenced in September 2018. He faces a mandatory minimum term of imprisonment of 10 years, and a maximum sentence of life.
The Drug Enforcement Administration’s investigation into Angeles-Moctezuma’s organization spanned some two years, and resulted in the seizure of nearly 200 pounds of methamphetamine, most of which was nearly 100% pure. In addition, the DEA seized at least 18 firearms and over $300,000 in cash, all of which has been forfeited to the United States.
Included among the seizures was a 56-pound load of methamphetamine recovered in South St. Louis in April 2016, believed to have been the largest single seizure of methamphetamine in the history of the Eastern District of Missouri. Eight individuals were arrested and charged at that time, all of whom entered guilty pleas in a separate case. Two female couriers were also arrested after they were discovered to be carrying 10 pounds of methamphetamine through O’Fallon, Missouri in July 2016. Both women subsequently pled guilty. The government has alleged that Angeles-Moctezuma was responsible for hiring the couriers to transport these shipments to St. Louis, where the methamphetamine was distributed through a network of people acting at his direction. Angeles-Moctezuma and the remaining 41 co-conspirators were indicted by a Federal Grand Jury in September 2016. Angeles-Moctezuma was arrested in Stockton, California in October 2016 after investigators learned that he was preparing to flee the United States.
Most of Angeles-Moctezuma’s co-conspirators have already been sentenced. Notable sentences include:
Alan Cardenas, 27, of Stockton, CA --- 262 months
Michael Chandler, 35, of Kansas City, MO – 240 months
Amanda Young, 39, of O’Fallon, MO -- 228 months
Holly Politte, 40, of DeSoto, MO – 180 months
Mark Huse, 34, of St. Louis, MO – 188 months
Kenneth Karrenbrock, 39, of Arnold, MO -- 192 months
Nearly all of the 52 defendants have significant criminal histories, with some having previously served Federal sentences for drug offenses.
The Office of the United States Attorney and the Drug Enforcement Administration extend their thanks to the St. Francois County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Overland Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, all of which assisted in the investigation.
Jury Convicts Vero Beach Attorney of Conspiracy and Making False Statements to a Federally Insured InstitutionRead the Press Release
On June 15, 2018, a federal jury in West Palm Beach, Florida, convicted Vero Beach attorney Eric B. Granitur, 60, of participating in a criminal conspiracy and making false statements to a federally insured institution.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Gavin Gumbinner, Resident Agent in Charge, Fort Pierce, Florida, Federal Bureau of Investigation, (FBI); and Edwin Bonano, Special Agent in Charge, Tampa, Florida, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG) made the announcement.
Granitur was convicted, at trial, of one count of conspiracy to commit the offense of making false statements to a federally insured institution, in violation of Title 18, United States Code, Section 371; and two counts of making a false statement to a federally insured institution, in violation of Title 18, United States Code, Section 1014. Granitur’s co-conspirators, George Heaton, Deborah Dentry Baggett, and Stephen McKenzie, have already pled guilty and are awaiting sentencing.
According to the evidence presented at trial, in 2009, Eric Granitur, a member of the Florida Bar, owned and operated Live Oak Title, which conducted two real estate closings for the purchase of five condominiums at the Vero Beach Hotel and Spa. The seller and developer of the Vero Beach Hotel and Spa, George Heaton, offered numerous incentives to buyer Stephen McKenzie to purchase the condominiums. Heaton agreed to pay the “cash-to-close” amount that the buyer McKenzie was expected to bring to closing. Additionally, Heaton paid for the closing costs and paid McKenzie additional incentives.
Granitur’s title company, Live Oak Title, conducted the closings for the sales of the Vero Beach Hotel and Spa condominium units sold to buyer Stephen McKenzie. As an escrow agent, Granitur was required to truthfully and accurately prepare and distribute a settlement statement to the financial institutions, known as a “HUD-1,” in preliminary form for review by the financial institution, prior to the closing of escrow. The closing statement was required to accurately reflect, among other information, the sales price, the closing funds provided by the borrower and all of the seller’s contributions. As an escrow agent, Granitur was responsible for receiving and holding in trust, in an escrow account, the mortgage loan proceeds from the financial institutions that financed the purchase of the condominium units, and he was responsible for disbursing those loan proceeds only after final approval by the financial institutions.
On two occasions, Granitur knowingly caused a false closing statement to be transmitted to a federally insured financial institution. The HUD-1 closing statements failed to truthfully disclose seller credits and incentives. Additionally, the closing statements failed to disclose that the seller was paying the buyer’s “cash-to-close.” The financial institutions relied upon the closing statement in authorizing the release of funds.
Sentencing will take place before United States District Judge Robin L. Rosenberg, in West Palm Beach. A sentencing date has not yet been set.
Mr. Greenberg commended the investigative efforts of the FBI and FHFA-OIG. This case is being prosecuted by Special Assistant United States Attorney Joseph A. Capone and Assistant United States Attorney Daniel E. Funk.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Jackson Man Pleads Guilty under Project EJECT to Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Shane Christopher Williams, 25, of Jackson, pled guilty yesterday before U.S. District Judge Carlton Reeves to possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On August 12, 2016, the Jackson Police Department stopped a vehicle on Capitol Street near Longino Street for making an illegal U-turn. Williams was the front seat passenger. The officer observed Williams looking back and reaching into the back seat prior to the car stopping. The officer had to give both the driver and Williams commands over the loud speaker to place their hands on the dashboard of the car before the officer could approach. A Hi-Point .380 caliber pistol was recovered from under the front passenger’s seat where Williams had been sitting.
Judge Reeves will sentence Williams on August 19, 2018 at 9:30 a.m. Williams faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and prosecuted by Assistant U.S. Attorney Glenda R. Haynes.
Intermediary in Fraudulent Money Order Cashing Scheme Sentenced to 20 Months in PrisonRead the Press Release
CAMDEN, N.J. – A Knoxville, Tennessee, man was sentenced today to 20 months in prison for recruiting individuals to cash fraudulent money orders that he received from a former South Jersey U.S. Postal Service (USPS) employee, U.S. Attorney Craig Carpenito announced.
Eugene Bowen, 35, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of transmitting and presenting unlawfully issued USPS money orders with intent to defraud the United States. Judge Rodriguez imposed the sentence today in Camden federal court.
According to the documents filed in this case and statements made in court:
Bowen admitted that Marc Saunders, 40, of Sicklerville, New Jersey, a former employee at the USPS branch in New Lisbon, New Jersey, provided him with stolen money orders and told him to recruit others to cash them. Bowen admitted that he recruited individuals to cash the money orders and paid them a small fee, while keeping the rest of the money for Saunders and himself.
In addition to the prison term, Judge Rodriguez sentenced Bowen to three years of supervised release and ordered to pay restitution of $18,470.
On Dec. 12, 2017, Saunders pleaded guilty to his role in the scheme, including producing the money orders with a stolen imprinting machine and giving them to others to cash. His sentencing is scheduled for July 24, 2018.
Acting U.S. Attorney Carpenito credited special agents of the USPS, Office of the Inspector General, under the direction of Acting Special Agent in Charge Kenneth M. Cleevely of the Eastern Area Field Office, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Alyson M. Oswald of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: John Brennan Esq., Marlton, New JerseyIndictment: Three Wichita Men Paid for Athletic Shoes with Counterfeit MoneyRead the Press Release
WICHITA, KAN. – Three Wichita men were indicted Tuesday on charges of making counterfeit money and using it to pay for athletic shoes, U.S. Attorney Stephen McAllister said.
Douglas D. Blocker, 21, Wichita, Kan., Cornelius D. Wilson, 22, Wichita, Kan., and Traevon A. McGairty, 22, Wichita, Kan., are charged with one count of counterfeiting and one count of passing counterfeit currency. In addition, Blocker is charged with another count of passing counterfeit currency.
The indictment alleges the defendants used a photocopy machine to make counterfeit $20 bills. In one count, Blocker is alleged to have met a victim at the Towne West shopping center and paid him $480in counterfeit bills for four pairs of Jordan athletic shoes. In another count, the three defendants are alleged to have met another victim at Towne West and paid him $520 in counterfeit bills for three pairs of athletic shoes.
If convicted, they face a penalty of up to 20 years in federal prison and a fine up to $250,000 on each count. The U.S. Secret Service investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
OTHER INDICTMENTS
Zoanna Bohrer, 44, Erie, Kan., is charged with 13 counts of wire fraud and one count of embezzlement. The indictment alleges she stole an amount exceeding $5,000 from the company where she worked, Professional Insurers of Erie, LLC. She made unauthorized wire transfers from the company’s account to pay her personal credit card bills.
If convicted, she faces up to 20 years in federal prison and a fine up to $250,000 on the wire fraud counts and up to 10 years and a fine up to $250,000 on the embezzlement count. The FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Jackson Lee Andrews, 33, Coffeyville, Kan., is charged with one count of possession with intent to distribute methamphetamine (count one), one count of unlawful possession of a firearm following a felony conviction (count two), one count of unlawful possession of a firearm in furtherance of drug trafficking (count three) and one count of distributing methamphetamine (count four). The crimes are alleged to have occurred in 2017 in Allen County, Kan.
If convicted, he faces up to 20 years in federal prison and a fine up to $1 million on counts one and four, up to 10 years and a fine up to $250,000 on count two, and not less than five years and a fine up to $250,000 on count three. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney David Lind is prosecuting.
Craig Harms, 29, Bel Aire, Kan., is charged with two counts of making false statements to the FBI and one count of falsifying a document with intent to impede an FBI investigation. The crimes are alleged to have occurred in September and October 2016 in Wichita, Kan.
If convicted, he faces up to five years in federal prison and a fine up to $250,000 on the charges of making false statements and up to 20 years and a fine up to $250,000 on the charge of falsifying records in a federal investigation. The FBI, the Wichita Police Department and the Internal Revenue Service investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
Santos Larios-Ajualat, 32, a citizen of Guatemala, is charged with unlawfully re-entering the United States after being deported. He was found Dec. 29, 2017, in Seward County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated.
Agustin Gaona Serrano, 34, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found in November 2017 in Montgomery County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated.
Leonel Delgado-Jaquez, 47, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported (count one) , one count of misusing a Social Security number (count two), one count of using false information to obtain a driver’s license (count three) and one count of aggravated identity theft (count four). He was found June 18, 2018, in Saline County, Kan.
If convicted, he faces up to two years in federal prison and a fine up to $250,000 on count one, up to five years and a fine up to $250,000 on count two, up to 15 years and a fine up to $250,000 on court three, and a mandatory two years (consecutive) on count four. Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney David Lind is prosecuting.
David Hernandez-Rueda, 34, a citizen of Mexico, is charge with unlawfully re-entering the United States after being deported. He was found June 11, 2018, in Sedgwick County, Kan.
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney David Lind is prosecuting.
Josue Asael Barron-Rivera, 19, who is not a citizen of the United States, is charged with unlawful possession of a firearm. The crime is alleged to have occurred May 24, 2018, in Wichita, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to
$250,000. Immigration and Customs Enforcement and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Illegal alien from Honduras pleads guilty to possessing pistol after West Monroe arrestRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced that an illegal alien from Honduras pleaded guilty last week to possessing a pistol after being arrested in West Monroe.
Medardo Zuniga, 36, of Honduras, pleaded guilty June 13, 2018 before U.S. District Judge Terry A. Doughty to one count of possession of a firearm by an illegal alien. According to the guilty plea, a West Monroe police officer conducted a traffic stop on a truck Zuniga was a passenger in on September 15, 2017. Three individuals were in the vehicle including Zuniga. After a search of the vehicle, an empty pistol magazine was found on Zuniga, and a Taurus pistol, model Millenium G2, caliber 9mm with an obliterated serial number was found on the floorboard where he had been sitting. After his arrest, he admitted to being in the United States illegally and to possessing the pistol. The defendant was arrested in 2007 for driving unlawfully and was deported on November 14, 2007.
Zuniga faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of October 2, 2018.
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 out neighborhoods safe for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Session announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The ATF and West Monroe Police Department conducted the investigation. Assistant U.S. Attorney J. Aaron Crawford is prosecuting the case.
Illegal Aliens Sentenced in Federal Court for Illegal Re-entryRead the Press Release
Columbia, South Carolina---- United States Attorney Sherri A. Lydon stated today that the following defendants were sentenced in federal court after previously entering guilty pleas for Reentry of a Removed Alien:
Juan Arturo Ramirez-Rojo, age 39, of Columbia, South Carolina;
Mario Almarez-Juarez, age 24, of Leesville, South Carolina;
Hugo Rolando Canenguez-Montes, age 37, of Rock Hill, South Carolina; and,
Carmen Flores-Bautista, age 39, of Columbia, South Carolina.
United States District Judge J. Michelle Childs sentenced all of the defendants to time served, resulting in a sentence of approximately 2 months for Ramirez-Rojo, 5½ months for Almarez-Juarez, 6 months for Canenguez-Montes, and 2 days for Flores-Bautista. No supervised release was ordered as the defendants are subject to deportation upon completion of their sentences.
Evidence presented at the change of plea and sentencing hearings established that Ramirez-Rojo is a Mexican citizen who had previously been deported at least two times. He was encountered by ICE – Enforcement and Removal Operations Deportation Officers on January 10, 2018, at the Alvin S. Glenn Detention Center after being arrested for Trafficking Cocaine.
Almarez-Juarez is a Mexican citizen who had previously been deported at least 5 times. He was encountered by ICE – Enforcement and Removal Operations Deportation Officers on December 31, 2017, at the Lexington County Detention Center after being arrested for Hit and Run and Driving Without Insurance.
Canenguez-Montes is a citizen of El Salvador who had previously been deported. He was encountered by ICE – Enforcement and Removal Operations Deportation Officers on December 24, 2017, at the York County Detention Center after being arrested for Criminal Sexual Conduct- 1st Degree and Kidnapping.
Flores-Bautista is a Mexican citizen who had previously been deported at least 2 times. She was encountered by ICE – Enforcement and Removal Operations Deportation Officers at the Alvin S. Glenn Detention Center on December 7, 2016, after being arrested for Homicide by Child Abuse.
Agents of ICE – Enforcement and Removal Operations investigated these cases. Assistant United States Attorney William E. Day, II, of the Columbia office is prosecuting these cases.
#####
Illegal Alien Sentenced in Columbia for Illegal Re-entryRead the Press Release
Columbia, South Carolina---- United States Attorney Sherri A. Lydon stated today that Ulises Martinez-Garcia, age 31, of Columbia, South Carolina, was sentenced in federal court in Columbia, South Carolina, for Reentry of Removed Alien, a violation of 8 U.S.C. § 1326. United States District Judge Mary Geiger Lewis, Jr., of Columbia, sentenced Martinez-Garcia to time-served (approximately 6 months imprisonment) with no supervised release as he is subject to deportation upon the completion of his sentence.
Evidence presented at the change of plea hearing established that Martinez-Garcia is a Mexican citizen who had previously been deported at least four times. He was encountered by ICE – Enforcement and Removal Operations Deportation Officers on December 27, 2017 at the Alvin S. Glenn County Detention Center after being arrested for Driving Under the Influence.
Agents of ICE – Enforcement and Removal Operations investigated this case. Assistant United States Attorney William E. Day, II, of the Columbia office is prosecuting the case.
#####
Huntsville Man Sentenced to 15 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
BIRMINGHAM – U.S. District Judge Abdul K. Kallon today sentenced a Huntsville man to 15 years in prison followed by a lifetime of supervised release for attempting to provide material support to the Islamic State of Iraq and al-Sham, or ISIS, a designated foreign terrorist organization.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp Jr. announced the sentence.
AZIZ IHAB SAYYED, 23, pleaded guilty in March to the terrorism charge. He acknowledged that he bought bomb-building ingredients in 2017, that he stated his aspirations to conduct ISIS-inspired attacks on police stations and Redstone Arsenal, and that he attempted to form a cell to conduct violent acts within the United States.
“We will not tolerate threats to our national security from terrorist groups like ISIS, which continues to radicalize and encourage terrorists through the internet,” Demers said. “The defendant, a citizen of this country, plotted to carry out attacks on his fellow Americans in our country, but was thwarted by the close cooperation of our partners in law enforcement. This successful outcome should send a clear message to any other would-be terrorists that the National Security Division will find them and bring them to justice.”
“Aziz Sayyed was inspired by ISIS to kill or harm Americans and he has earned every bit of his prison term,” Town said. “This case, and this investigation, serves as the gold standard for what is possible when federal, state and local law enforcement agencies work together. The FBI did an outstanding job ensuring this investigation was successful by cultivating those layers of law enforcement necessary in cases like this.”
“The FBI’s Joint Terrorism Task Force is dedicated to identifying and bringing to justice those individuals who attempt to provide material support to foreign terrorist organizations, promote violent extremism, and threaten our national security,” Sharp said. “Today’s sentence is a culmination of the tireless efforts of our JTTF, and the invaluable partnership we have with the Huntsville Police Department.”
According to Sayyed’s plea agreement with the government, he attempted to provide services and personnel, namely himself, to ISIS, knowing that the group is a designated foreign terrorist organization
Between January and June of 2017 in Madison County, Sayyed, a U.S. citizen, obtained and viewed ISIS propaganda videos depicting ISIS forces committing bombings, executions by gunshot and beheading, and other violent acts. Sayyed shared the videos and expressed his support for ISIS and for ISIS terrorist attacks around the world, according to his plea agreement.
Sayyed researched and learned how to make triacetone triperoxide (TATP), a highly volatile and extremely dangerous explosive material. He then purchased the necessary ingredients for the explosive and professed his aspiration to use TATP in an explosive belt or a car bomb.
On June 13, 2017, Sayyed met with an individual he understood to be an ISIS member. In fact, the person was an undercover employee of the FBI. Sayyed and the undercover employee discussed the danger of TATP, ISIS’s preference for the use of certain explosives, and Sayyed’s desire to assist ISIS, according to the plea agreement. In that meeting, Sayyed offered to personally carry out attacks on behalf of ISIS.
The FBI investigated the case in conjunction with the Huntsville Police Department, Madison County District Attorney’s Office, Madison County Sheriff's Office, U.S. Army 902 MI Group, Redstone Arsenal’s Garrison Command, University of Alabama at Huntsville Police Department, Alabama Law Enforcement Agency, U.S. Immigration and Customs Enforcement, and Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Henry Cornelius and Davis Barlow prosecuted the case with the assistance of Trial Attorney Joseph Attias of the National Security Division’s Counterterrorism Section.
###
Holyoke Men Charged with Crack Cocaine and Heroin OffensesRead the Press Release
BOSTON – Three Holyoke men were arrested today and charged in federal court in Springfield with distributing drugs.
Pedro Colon Amadeo, 35, and Jean Carlos Rivera, 29, were charged in separate indictments with distribution and possession with intent to distribute cocaine base, also known as crack cocaine. Anthony Rivera, 35, was charged in a third indictment with distribution and possession with intent to distribute heroin.
According to the indictments that were unsealed today, each defendant distributed the drugs in Holyoke between November of 2017 and January of 2018. The indictments are the result of a seven month law enforcement investigation into cocaine and heroin trafficking in Holyoke by members of La Familia gang.
Colon- Amadeo faces up to 40 years in prison, up to a lifetime of supervised release, and a fine of up to $1 million; Anthony Rivera faces up to 30 years in prison, up to a lifetime of supervised release, and a fine of up to $2 million; and Jean Carlos Rivera faces up to 20 years in prison, a lifetime of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Holyoke Police Chief James M. Neiswanger made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Office is prosecuting the cases.
The details contained in the indictments are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Holly Hill Man Pleads Guilty to Conspiracy to Smuggle WildlifeRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Steven Verren Baker, age 38, of Holly Hill, pled guilty to Conspiracy to Smuggle Wildlife, a violation of Title 18, United States Code, § 371. Senior Judge Joseph F. Anderson, Jr., accepted the plea and will sentence Baker at a later date.
Evidence presented at the hearing established that Baker was the ringleader of an international syndicate of wildlife smugglers exchanging turtles protected by international agreements back and forth between the United States and China. The activity took place from January through June 2016. Baker obtained protected turtles from Hong Kong to distribute here in the United States, and he shipped protected turtles from the United States to Asia.
The transactions were set up using the Facebook text messaging feature. Shipments were made internationally through the United States Postal Service. Several packages were intercepted entering the United States at John F. Kennedy International Airport
The maximum penalty faced by Baker is imprisonment for five years, with a potential fine up to $250,000.
The United States Fish and Wildlife Service, the United States Postal Inspection Service, and the South Carolina Department of Natural Resources investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
#####
Heroin Dealer Pleads Guilty to Leading Drug Trafficking OrganizationRead the Press Release
NEWPORT NEWS, Va. – A Hampton man pleaded guilty today to leading a family-run heroin trafficking conspiracy which distributed large quantities of heroin in Virginia.
“Mr. Joe led a large-scale heroin trafficking conspiracy for many years in Hampton Roads,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Investigating and prosecuting heroin and fentanyl trafficking crimes is a top priority of this office as we continue to battle this deadly epidemic. I want to thank our investigative partners at U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Norfolk for their terrific work on this important case.”
According to court documents, William Arthur Joe, aka Pops, aka Unc, aka Rudy K, 67 of Hampton, was the leader of a large heroin trafficking organization on the Virginia Peninsula. The organization received heroin from sources of supply in New York and New Jersey and would then sell it in the Hampton Roads area. As head of the organization, Joe employed multiple family members and acquaintances to distribute the heroin. Joe’s organization was the focus of a two-year investigation involving controlled purchases of heroin, law enforcement surveillance and multiple court authorized wire taps. The Joe organization operated from at least 2014 until Joe’s arrest in June 2017 and was responsible for distributing more than three kilograms of heroin.
Joe pleaded guilty to continuing criminal enterprise and faces a mandatory 20 years in prison when sentenced on September 24. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea. Assistant U.S. Attorney Eric M. Hurt is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-65.
Healogics Agrees to Pay up to $22.51 Million to Settle False Claims Act Liability for Improper Billing of Hyperbaric Oxygen TherapyRead the Press Release
The Justice Department announced today that Healogics, Inc. has agreed to pay up to $22.51 million to settle allegations that it violated the False Claims Act by knowingly causing wound care centers to bill Medicare for medically unnecessary and unreasonable hyperbaric oxygen (“HBO”) therapy. Healogics, a Florida-based company, manages nearly 700 hospital-based wound care centers across the country.
“Medicare beneficiaries are entitled to care based on their clinical needs and not the financial goals of healthcare providers,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “All providers of taxpayer-funded federal healthcare services, whether contractors or direct billers, will be held accountable when their actions knowingly cause false claims for medically unnecessary services to be submitted.”
Medicare covers HBO therapy, a modality in which the entire body is exposed to oxygen under increased atmospheric pressure, as an adjunctive therapy to treat certain chronic wounds. The settlement announced today resolves allegations that from 2010 through 2015, Healogics knowingly submitted or caused the submission of false claims to Medicare for medically unnecessary or unreasonable HBO therapy.
Under the settlement, Healogics has agreed to pay $17.5 million, plus an additional $5.01 million if certain financial contingencies occur within the next five years, for a total potential payment of up to $22.51 million.
“Civil healthcare fraud enforcement has always been a core part of the mission of our office,” said United States Attorney Maria Chapa Lopez for the Middle District of Florida. “With this settlement, our Civil Division confirms its commitment to our nation’s critical struggle against practices that put public health programs at risk.”
In addition to resolving its False Claims Act liability, Healogics has entered into a five-year Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General which includes, among other things, a claims review and a systems review – both to be conducted by an Independent Review Organization.
“When greed is the primary factor in performing medically unnecessary health care procedures on Medicare beneficiaries, both patient well-being and taxpayer funds are compromised,” said Special Agent in Charge Shimon R. Richmond of HHS OIG. “We will continue to thoroughly investigate health care companies that engage in such fraudulent schemes.”
The allegations resolved by this settlement arose from a lawsuit filed by James Wilcox, a former Director for Research and Quality for Medical Affairs at Healogics, and a separate lawsuit filed by Dr. Benjamin Van Raalte, Dr. Michael Cascio, and John Murtaugh, two doctors and a former program director who worked at Healogics-affiliated wound care centers. The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens with knowledge of fraud against the government to bring an action on behalf of the United States and to share in any recovery. The settlement provides for a whistleblower share of up to $4,276,900.
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the United States Attorney’s Office for the Middle District of Florida, and the Department of Health and Human Services Office of Inspector General.
The cases are captioned United States ex rel. Van Raalte, et al. v. Healogics, Inc., 14-cv-283 (M.D. Fla.) and United States ex rel. Wilcox. v. Healogics, Inc., et al., 15-cv-1510 (M.D. Fla.).
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Healogics Agrees to Pay up to $22.51 Million to Settle False Claims Act Liability for Improper Billing of Hyperbaric Oxygen TherapyRead the Press Release
Orlando, FL – The Justice Department announced today that Healogics, Inc. has agreed to pay up to $22.51 million to settle allegations that it violated the False Claims Act by knowingly causing wound care centers to bill Medicare for medically unnecessary and unreasonable hyperbaric oxygen (“HBO”) therapy. Healogics, a Florida-based company, manages nearly 700 hospital-based wound care centers across the country.
“Medicare beneficiaries are entitled to care based on their clinical needs and not the financial goals of healthcare providers,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “All providers of taxpayer-funded federal healthcare services, whether contractors or direct billers, will be held accountable when their actions knowingly cause false claims for medically unnecessary services to be submitted.”
Medicare covers HBO therapy, a modality in which the entire body is exposed to oxygen under increased atmospheric pressure, as an adjunctive therapy to treat certain chronic wounds. The settlement announced today resolves allegations that from 2010 through 2015, Healogics knowingly submitted or caused the submission of false claims to Medicare for medically unnecessary or unreasonable HBO therapy.
Under the settlement, Healogics has agreed to pay $17.5 million, plus an additional $5.01 million if certain financial contingencies occur within the next five years, for a total potential payment of up to $22.51 million.
“Civil healthcare fraud enforcement has always been a core part of the mission of our office,” said United States Attorney Maria Chapa Lopez for the Middle District of Florida. “With this settlement, our Civil Division confirms its commitment to our nation’s critical struggle against practices that put public health programs at risk.”
In addition to resolving its False Claims Act liability, Healogics has entered into a five-year Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General which includes, among other things, a claims review and a systems review – both to be conducted by an Independent Review Organization.
“When greed is the primary factor in performing medically unnecessary health care procedures on Medicare beneficiaries, both patient well-being and taxpayer funds are compromised,” said Special Agent in Charge Shimon R. Richmond of HHS OIG. “We will continue to thoroughly investigate health care companies that engage in such fraudulent schemes.”
The allegations resolved by this settlement arose from a lawsuit filed by James Wilcox, a former Director for Research and Quality for Medical Affairs at Healogics, and a separate lawsuit filed by Dr. Benjamin Van Raalte, Dr. Michael Cascio, and John Murtaugh, two doctors and a former program director who worked at Healogics-affiliated wound care centers. The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens with knowledge of fraud against the government to bring an action on behalf of the United States and to share in any recovery. The settlement provides for a whistleblower share of up to $4,276,900.
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the United States Attorney’s Office for the Middle District of Florida, and the Department of Health and Human Services Office of Inspector General. The case was handled by Assistant United States Attorneys Randy Harwell and Jeremy Bloor, and by Department of Justice Civil Division Trial Attorney Chartey Quarcoo.
The cases are captioned United States ex rel. Van Raalte, et al. v. Healogics, Inc., 14-cv-283 (M.D. Fla.) and United States ex rel. Wilcox. v. Healogics, Inc., et al., 15-cv-1510 (M.D. Fla.).
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Gretna man sentenced to more than 10 years for controlled substance, firearms offenses in LafayetteRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that a Gretna man was sentenced Monday to 121 months in prison for possessing with the intent to distribute more than 500 grams of methamphetamine after Lafayette police officers recovered multiple controlled substances and a weapon from his former residence.
Don Edmond Washington, 29, of Gretna, Louisiana, was sentenced by U.S. District Judge Dee D. Drell on one count of possession with intent to distribute a controlled substance and possession of a firearm and ammunition by a previously convicted felon. He was also sentenced to five years of supervised release. According to the March 15, 2018 guilty plea, law enforcement agents searched Washington’s former home in Lafayette on May 17, 2017 and found methamphetamine, heroin, buprenorphine, Oxycodone, Alprazolam, one HK USP compact .45 caliber pistol with one magazine, six .45 caliber rounds and $440.
The DEA, ATF, Lafayette Metro Narcotics Task Force and Lafayette Police Department conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
Greenville Woman Sentenced to Three Years' Imprisonment in Mail Theft ConspiracyRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Casey A. Raines, age 38, of Greenville, was sentenced to three years’ imprisonment for her involvement in a mail theft conspiracy, a violation of Title 18, United States Code, Section 371. United States District Judge Bruce Howe Hendricks, of Charleston, imposed the sentenced, ordered that Raines pay $7,581.32 in restitution, and sentenced her to three years of supervised release once she has completed the sentence in the Bureau of Prisons.
Evidence presented at the change of plea hearing established that Raines and others stole mail in and around Greenville County in an effort to obtain bank account numbers, routing numbers, and identification information. Once in possession of this material they would create counterfeit checks and negotiate them to obtain money for methamphetamine.
On June 10, 2016, a search warrant was executed in connection with this investigation at the Greenville home of co-conspirator Cary L. Wright, age 38, who has already been sentenced to 51 months in the Bureau of Prisons for his participation in the offense. Items recovered from the residence included, but was not limited to, numerous pieces of mail belonging to others, checks stolen from the mail, financial transaction cards, blank check stock, counterfeit checks, and a computer used for check counterfeiting.
Records recovered showed that Raines opened multiple bank accounts which were used by the conspiracy to deposit stolen and counterfeit checks. Raines and the other would then withdraw the money and split the proceeds among themselves.
The case was investigated by agents with the United States Postal Inspection Service, the Greenville County Sheriff’s Office, and the Greenville City Police Department. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
#####
Gary Man Sentenced to 135 Months in PrisonRead the Press Release
HAMMOND – Deshalone Davis, 21 years old, of Gary, Indiana, was sentenced by U.S. District Court Judge Joseph S. Van Bokkelen on his plea of guilty to Hobbs Act Robbery and brandishing a firearm during and in relation to a crime of violence, announced U.S. Attorney Thomas L. Kirsch II.
Davis was sentenced to 135 months in prison, followed by 3 years of supervised release. He was also ordered to pay $17,011.05 in restitution.
“Committing a brazen act of violence, in the middle of a crowded store during the early evening hours when many people are around will never be tolerated in this District. The sentence today shows the seriousness of this type of offense. We will continue to focus on crimes like the one above and other violent crimes to make sure justice is served to criminals like Mr. Davis,” said U.S. Attorney Kirsch.
According to documents in this case, on August 1, 2017, Davis and three others robbed a wireless store in Munster, Indiana. They entered the store during the afternoon rush hour, at approximately 5:45 pm. While holding employees and customers at gunpoint, they forced employees to empty cabinets of phones and demanded all of the cash from the register. The gunmen men fled the store in a getaway vehicle driven by Vondell Henry, Jr. Mr. Henry pled guilty in this case as is awaiting sentencing. His hearing is set for September 5, 2018.
This case is the result of the investigative efforts of the FBI with the assistance of Hammond, Munster and Gary Police Departments. This case was handled by Assistant U.S. Attorney Jennifer Chang.
###
Former Oregon State University Student Charged for Threatening Campus ShootingRead the Press Release
EUGENE. Ore. – Christopher Adam Strahan, 22, a resident of Corvallis, Oregon, was indicted today for threatening a campus shooting at Oregon State University (OSU).
The indictment alleges Strahan threatened to shoot classmates at OSU in a series of tweets on February 27, 2018. He is charged with a single count of making threatening communications in violation of 18 U.S.C. § 875.
Strahan was previously detained as a flight risk and danger to the community when he made his initial appearance in federal court on a criminal complaint on March 27, 2018. Strahan will be arraigned on the indictment on June 27, 2018 before U.S. Magistrate Judge Jolie A. Russo.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Anyone who witnesses imminent threats of violence in any form made via internet or another means should call 9-1-1 immediately. Non-emergency tips can be submitted by contacting the FBI’s Portland Field Office at (503) 224-4181 or visiting the SafeOregon website at www.safeoregon.com.
Former Kinloch Police Captain Pleads Guilty to Stealing Federal Disability BenefitsRead the Press Release
St. Louis, MO – Everett James, 60 of St. Louis, Missouri, pleaded guilty to making a false statement to the Social Security Administration and theft of government funds. James appeared this morning in before Richard Webber and sentencing is set for September 18, 2018.
According to court documents, James applied for Social Security Administration disability benefits January 2014 claiming that his medical condition rendered him unable to work as a corrections officer. However, he failed to report that he was working as a private security guard at the time of his application. After being approved for benefits, James worked as a private security guard and as a part-time police officer.
The Social Security Administration learned that while James received the federal disability benefits, he was employed in various capacities that included serving as: Kinloch, Missouri Police Captain; Wellston, Missouri Police Sergeant; a private security guard; and, a Hillsdale, Missouri patrol officer. When the City of Hillsdale hired James in March 2017, he informed his employer that the amount of hours he could work and his hourly wage needed to be adjusted to preserve his receipt of federal disability benefits. He turned down the city’s offer of a higher salary and more hours to offset the loss of benefits, but volunteered to work without a salary if he was needed. As a result, the Hillsdale Police Department paid James less per hour than officers who performed similar duties.
Had the Social Security Administration been aware of James’ ability to work, it would not have approved him to receive disability benefits. His concealment of his abilities caused the federal government to pay him more than $68,000.00 in disability benefits to which he was ineligible.
“This office will prosecute individuals who violate federal law regardless of their position,” said United States Attorney Jeff Jensen.
Making a false statement carries a penalty of not more than five years in prison and/or a fine of $250,000 or both and theft of government funds carries a penalty of not more than 10 years in prison and/or a fine of $25,000 or both.
The case was investigated by the Social Security Administration. Assistant U.S. Attorney Tracy Berry is handling the case for the government.
Former Greater Eastern Credit Union CEO Pleads GuiltyRead the Press Release
GREENEVILLE, Tenn. – On June 20, 2018, Sherry Ann Allen, 49, of Johnson City, Tennessee, pleaded guilty to an information charging her with embezzling $1,195,596.00 from Greater Eastern Credit Union and tax evasion. Sentencing is set for 9:00 a.m., September 26, 2018, in U.S. District Court in Greeneville.
Allen faces a maximum term of 30 years in prison and will have to pay restitution to Greater Eastern Credit Union and the Internal Revenue Service.
This plea was the result of an investigation by the FBI, Internal Revenue Service - Criminal Investigation and the Johnson City Police Department. Assistant U.S. Attorney Robert Reeves represented the United States in court proceedings.
###
Former Employee of Allegheny County Drug Laboratory Charged with Stealing more than $78,000 in Drug EvidenceRead the Press Release
PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, has been charged in federal court with stealing federal drug evidence from the Allegheny County Office of the Medical Examiner (ACOME), United States Attorney Scott W. Brady announced today.
Matthew Ieraci, 29, of Pittsburgh, Pennsylvania, was charged by criminal Information with one count of theft concerning a program receiving federal benefits.
According to the Information, on multiple occasions between on or about February 8, 2017, and on or about February 27, 2017, Ieraci stole a total of approximately 52.45 grams of powder alprazolam, a Schedule IV controlled substance, from ACOME, where he was employed as a laboratory scientist. The information further alleges that Ieraci stole the evidence from a larger quantity of alprazolam that the United States Postal Inspection Service had submitted to ACOME for chemical analysis in connection with an ongoing multi-jurisdiction, multi-agency federal drug-trafficking investigation. According to the charging document, Ieraci, the scientist assigned to analyze the evidence on behalf of ACOME, had received training in proper evidence-handling techniques and was aware of the consequences of evidence tampering, including the possibility that such evidence would not be admissible at trial. The street value of the alprazolam Ieraci is alleged to have stolen was at least $78,675.
The law provides for a maximum total sentence of not more than 10 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 offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Eric G. Olshan and Rachael L. Dizard are prosecuting this case on behalf of the government. The Federal Bureau of Investigation conducted the investigation of Ieraci.
A criminal Information is an accusation.
A defendant is presumed innocent unless and until proven guilty. The filing of an Information generally indicates that the defendant intends to enter a guilty plea.
Former Costco Employee Pleads Guilty to Embezzling Nearly $290,000 by Making False Entries in Customer AccountsRead the Press Release
A 20-year Costco employee pleaded guilty today in U.S. District Court in Tacoma to wire fraud in connection with her five-year scheme to steal nearly $290,000 from her employer, announced U.S. Attorney Annette L. Hayes. ROBIN G. CLINE, 54, of Puyallup, Washington, was employed as an Accounts Receivable Clerk at Costco’s Fife, Washington facility from 1996 until she resigned in 2016. CLINE was indicted in January 2018, following an investigation that revealed that between 2011 and 2016, she had manipulated entries in business customer accounts to steal from both Costco and its customers. U.S. District Judge Benjamin H. Settle scheduled sentencing for September 17, 2018.
According to records filed in the case, as a Clerk in Accounts Receivables CLINE had authority to process payments, refunds and other credits for Costco business customers. Beginning in 2011, the investigation revealed that CLINE made false entries into customer accounts such as credits, refunds or charges. CLINE then used these false entries to funnel money from Costco and Costco business customers into her bank accounts and a bank account associated with her son. CLINE used false entries to steal money in multiple ways. She made false entries indicating a customer had returned an item or disputed a purchase resulting in a credit balance on the customer account. CLINE then funneled the credit balance to her bank account, not back to the business customer. Another way CLINE embezzled was to double bill customers for merchandise, and then ‘correct’ the double billing by refunding money to the customer – however, CLINE arranged for the refund to be funneled into her bank accounts or her son’s bank account.
In all, CLINE posted more than 290 false entries involving more than 100 customer accounts. CLINE has agreed to pay restitution of $289,975.
Prosecutors will recommend a two year prison term for CLINE. The ultimate sentence will be determined by Judge Settle based on a number of sentencing factors set forth in federal law.
The case was investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Stephen P. Hobbs.
Former Controller Pleads Guilty to Wire FraudRead the Press Release
St. Louis, MO – Jennifer L. Saake pled guilty to wire fraud related to her scheme to defraud the St. Louis-based company she worked for as a controller.
According to court documents, between April 2010 and November 2017, Saake embezzled more than $1.4 million from her employer. As part of her scheme, Saake fraudulently initiated more than 200 automated transfers of corporate funds into her personal bank accounts. Saake concealed her scheme by marking the transactions as “confidential” in the banking software records, by creating false journal entries, and by making false payable and bank reconciliation adjustments in the accounting records. Saake used the fraud proceeds for personal gain, including to purchase equity interests in investments offered by her employer, to purchase a condo in Branson, Missouri, and to pay for living expenses.
Saake, 52, of St. Louis County, pled guilty to one felony count of wire fraud before U.S. District Judge Catherine D. Perry. Sentencing has been set for September 21, 2018.
She now faces a penalty range of up to 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Secret Service. Assistant United States Attorney Kyle T. Bateman is handling the case for the U.S. Attorney’s Office.
Former Cameron company office manager pleads guilty to stealing more than $91,000Read the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that a former office manager of a Cameron company pleaded guilty last week to stealing more than $91,000 from her employer.
Belinda Miltenberger, 47, of Cameron, Louisiana, pleaded guilty June 13, 2018 before U.S. Magistrate Judge Kathleen Kay to one count of wire fraud. According to the guilty plea’s factual basis, Miltenberger was the office manager for a seafood processing and wholesale company located in Cameron. Her supervisors were in Seattle, Washington. Starting in January 2016 until about February 2017, Miltenberger stole cash from seafood sales. Instead of depositing certain cash sales into the company’s bank account, she kept the money for personal use. She then falsified business records to cover her abuse. When the company became concerned about account balances, they asked Miltenberger to prepare an end-of-year financial statement. In response, she created fraudulent financial reports and sent them to her supervisors to continue to conceal her scheme. She embezzled a total of $91,846.25 during the course of the scheme.
Miltenberger faces up to 20 years in prison, five years of supervised release and a $250,000 fine. The court set sentencing for October 1, 2018.
The FBI conducted the investigation. Supervisory Assistant U.S. Attorney Richard A. Willis is prosecuting the case.
Former Beaumont Tax Preparer Sentenced for Income Tax FraudRead the Press Release
BEAUMONT, Texas – A 36-year-old Mt. Vernon, Texas man has been sentenced to prison for federal tax violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Charles Maull, II, pleaded guilty on Feb. 21, 2018 to six counts of willfully aiding in the preparation and filing of a false income tax return and was sentenced to 30 months in federal prison today by U.S. District Judge Thad Heartfield. Maull was also ordered to pay restitution of $674,730.68 to the Internal Revenue Service.
According to information presented in court, from 2010 to 2017, while operating a tax return preparation business in Beaumont, Maull knowingly falsified business income, overstates withholding taxes, fraudulently claimed education credits and fraudulently claimed dependents that taxpayers were not entitled to claim.
“The hearing today sends a clear message to unscrupulous return preparers who break the law and abuse the tax system,” said Special Agent in Charge Tamera Cantu of the IRS-Criminal Investigation’s Dallas Field Office. “Intentionally falsifying documents filed with the IRS is a crime and IRS-Criminal Investigation is committed to pursuing those return preparers who enrich themselves while cheating their clients and the U.S. Treasury.”
Maull was ordered to report to the Federal Correctional Institution in Texarkana on July 24, 2018 to begin serving his sentence.
This case was investigated by Internal Revenue Service – Criminal Investigation Division and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Florida Man Charged with Defrauding Local InvestorRead the Press Release
PEORIA, Ill. – A federal grand jury today indicted Timothy Herman, 57, of Lake Mary, Fla., of defrauding a Peoria area victim of approximately $600,000.
The indictment alleges that Herman falsely represented to the victim that he had investment opportunities that would earn greater returns than could be earned from banks. Beginning in or about 2013, Herman represented that he had been in the garbage business for several years and had been very successful. Herman did not disclose that, in fact, in May 2013, he had notified his home mortgage holder that he had not received a paycheck since May 2012 and had depleted his savings.
The indictment alleges that Herman advised the victim that he would invest funds in a “Rewards Program,” which one of his companies was developing with Republic Services, a waste management company in Arizona. Herman represented that he was going to retire in two years and expected a $17 million payout at that time.
After Herman represented the profitability and safety of the funds, the victim loaned $200,000 to Herman’s company, Delta Direct. Herman allegedly transferred the funds amongst his various business accounts before transferring the funds to his personal account. As part of the scheme, Herman used the victim’s funds to make monthly payments to the victim as provided in the promissory notes. After receiving the monthly payments, the victim loaned more money to Herman over a period of time.
Instead of investing the funds as represented, the indictment alleges that from 2013 to December 2017, Herman used the victim’s funds to make payments to the victim, to make mortgage payments, to pay tax liens, to make marital settlement payments and to otherwise use the victim’s money for his personal use and benefit. Herman continued his deception and to conceal his fraudulent conduct, made false statements to others, including the victim and federal law enforcement agents.
The charges are the result of investigation by the FBI and the U.S. Postal Inspection Service. Supervisory Assistant U.S. Attorney Darilynn J. Knauss is prosecuting the case.
The U.S. Clerk of the Court will schedule a date for Herman to appear for arraignment in federal court in Peoria.
If convicted, the statutory maximum penalty for each count of mail fraud (four counts) and wire fraud (nine counts) is 20 years in prison, and a fine of up to $250,000; for making a false statement, the maximum penalty is five years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Five Sentenced in Heroin Distribution ConspiracyRead the Press Release
The remaining five defendants in a multi-state heroin trafficking conspiracy were sentenced to federal prison yesterday, including three from middle Tennessee and two from Chicago, Illinois, announced U.S. Attorney Don Cochran of the Middle District of Tennessee. Eight persons were indicted on charges of conspiring to distribute heroin and all pleaded guilty.
Those sentenced yesterday were: Steven Allen, 52, of Chicago, Illinois and David Fletcher, 49, of Nashville, Tennessee were each sentenced to 180 months in prison; Travis Jones, 49, of Chicago, was sentenced to 108 months in prison; Maurice Jenkins, 52, of Nashville, was sentenced to 35 months in prison; and Garrette Butler, 64, of Nashville, was sentenced to 6 months in a half-way house.
Previously sentenced in November 2017 were: Charlie Diggs, 46, of Nashville, was sentenced to 72 months in prison; Amanda Morris, 34, of Nashville, was sentenced to 49 months in prison; and Jill Bradley, 54, of Joelton, Tennessee, was sentenced to 3 days in custody.
According to court documents, in late 2014, Fletcher, Diggs, and Jones conspired to acquire multiple kilograms of heroin from Allen and others in Chicago, Illinois and then transport the heroin to middle Tennessee for distribution. Members of the conspiracy transported the heroin to Nashville, Tennessee where it was diluted, packaged for resale and stored at the homes of Butler and Diggs in Nashville. Members of the conspiracy also sold the heroin and recruited others to sell it as well. Law enforcement officers ultimately seized over $38,000 in cash, business properties and several cars from members of the conspiracy.
This case was investigated by the Drug Enforcement Administration; the Tennessee Bureau of Investigation; the Metropolitan Nashville Police Department; and the Cheatham County Sherriff’s Office. The case was prosecuted by Assistant U.S. Attorney Ahmed A. Safeeullah.
Fitchburg Woman and Saugus Man Sentenced for Roles in Counterfeit Steroid ConspiracyRead the Press Release
BOSTON – A Fitchburg woman and a Saugus man were sentenced today in federal court in Boston for their roles in a steroid trafficking conspiracy.
Elizabeth Green, 30, was sentenced by U.S. District Court Judge Allison D. Burroughs to two years of probation. In December 2017, Green pleaded guilty to one count of conspiracy to distribute controlled substances. Brian Petzke, 49, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to two years in prison and two years of supervised release. In February 2018, Petzke pleaded guilty to one count of conspiracy to distribute controlled substances. Petzke and six others, including Green’s sister, were charged in April 2017 for their roles in the conspiracy. Green was later charged by Information.
From approximately May 2015 until April 12, 2017, the conspirators manufactured steroid products made from raw materials that they purchased overseas and marketed as “Onyx” steroids using “Onyx” labels that were also ordered from overseas suppliers. Onyx, now owned by Amgen Inc., is a legitimate pharmaceutical company that does not manufacture steroids.
The defendants sold the steroids to customers across the United States using email and social media platforms, collected payment through money remitters, such as Western Union and MoneyGram, and used false identifications and multiple remitter locations to pick up the proceeds. Some of the defendants laundered proceeds from the steroid sales through Wicked Tan LLC, a tanning business in Beverly, which they owned and operated specifically to launder the proceeds of the steroid operation.
Green’s role in the conspiracy was to collect customer payments from money remitters using false identifications and provide those proceeds to another member of the organization. Green retrieved more than $220,000 in customer payments for steroid purchases.
Petzke’s principal roles in the conspiracy were receiving packages containing raw steroid powder; shipping steroids to customers throughout the United States at the direction of co-defendants Tyler Baumann and Phillip Goodwin; and picking up steroid proceeds from money remitters at the direction of Baumann and Goodwin.
Baumann and Goodwin each pleaded guilty and were sentenced in March 2018 to 10 years and 130 months in prison, respectively.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Delany De Leon-Colon, Acting Inspector in Charge of the U.S. Postal Inspection Service; and Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office, made the announcement. Assistant U.S. Attorneys Amy Harman Burkart and David J. D’Addio of Lelling’s Cybercrime Unit are prosecuting the cases.
Federal Jury Convicts Illegal Alien of Sexual Exploitation of a Minor and Possession of Child PornographyRead the Press Release
United States Attorney Brandon J. Fremin announced today the conviction of an illegal alien who coerced and enticed a child victim to engage in sexually explicit conduct and send him images of such conduct over the internet. The defendant, VICTOR ZELAYA-FUNEZ, a Honduran national residing in Zachary, Louisiana, was indicted by a federal grand jury on July 12, 2017 and charged with sexual exploitation of a minor, in violation of Title 18, United States Code, Section 2251(a) and (3), and possession of child pornography, in violation of Title 18, United States Code, Section 2252A(a)(5)(B).
ZELAYA-FUNEZ, now 38 years old, proceeded to trial on June 18, 2018, before Chief U.S. District Judge Brian A. Jackson. After a three-day trial, the jury unanimously convicted ZELAYA-FUNEZ of both counts. As the evidence at trial demonstrated, ZELAYA-FUNEZ possessed sexually explicit photos and attempted to coerce the victim into taking additional sexually explicit photographs of herself and creating sexually explicit videos of herself and sending them directly to ZELAYA-FUNEZ. In private messages, he sent to the victim, ZELAYA-FUNEZ threatened to tell the victim’s parents about images of her if she did not comply with his demands; in other private messages, the defendant told the victim he cared for her and promised to take her to the movies.
As a result of his conviction for sexual exploitation of a minor, ZELAYA-FUNEZ now faces a mandatory minimum sentence of 15 years in federal prison. The defendant also faces a significant term of imprisonment for the possession of child pornography count, significant fines, restitution, and supervised release, and deportation following his release from federal prison.
ZELAYA-FUNEZ also faces a separate federal indictment charging him with illegal re-entry into the United States by a removed alien. Both indictments were returned in the Middle District of Louisiana.
United States Attorney Fremin stated, “The aggressive prosecution of illegal aliens engaged in the sexual exploitation of children is a top priority of the U.S. Department of Justice generally and this office in particular. I commend the victim for her incredible courage and strength throughout these proceedings, and I thank the jury for their considered and thoughtful decision. I also greatly appreciate the outstanding efforts of the prosecutors and agents who worked tirelessly to bring this defendant to justice.”
This investigation was conducted by the U.S. Department of Homeland Security, Homeland Security Investigations and Enforcement Removal Operations, and the East Baton Rouge Parish Sheriff’s Office, with assistance from the East Baton Rouge Parish District Attorney’s Office. The matter is being prosecuted by Assistant United States Attorney Ryan Rezaei and Assistant United States Attorney Rene I. Salomon, who serves as the office’s Senior Litigation Counsel.
Federal Grand Jury Indicts West Virginia Supreme Court of Appeals JusticeRead the Press Release
Supreme Court Justice Charged with Obstruction of Justice and other federal Crimes
CHARLESTON, W.Va. -- United States Attorney Mike Stuart announced today that West Virginia Supreme Court of Appeals Justice Allen H. Loughry II, 47, of Charleston, West Virginia, was charged by a federal grand jury in a 22-count Indictment that was unsealed today. Loughry is a Justice on the West Virginia Supreme Court of Appeals, who was elected in November 2012 and sworn in on January 1, 2013. The 22-count Indictment charges Loughrywith numerous fraud, false statements, and witness tampering offenses.
“A federal grand jury has charged a Justice on the state’s highest court with numerous and serious federal crimes,” said United States Attorney Mike Stuart. “This is a solemn day for all West Virginians. On this day—West Virginia Day—the people of our great state deserve better. They have worked too hard and too long to tolerate misconduct that strikes at the heart of the public’s trust by their elected officials. I intend to do all that I can to ensure that our people have the honest government they deserve.”
Loughry is accused of using a government vehicle and submitting mileage claims for reimbursement; using a government vehicle and credit card on personal trips; and unlawfully converting to his own use a historically significant piece of furniture – a Cass Gilbert desk. Justice Loughry was also indicted for attempting to corruptly obstruct and influence testimonial evidence of a Supreme Court employee in an imminent grand jury investigation.
"Public corruption is a top investigative priority for the FBI," said Assistant Special Agent in Charge Nick Boshears. "It erodes public confidence and undermines the Rule of Law. We want the people we serve to know the FBI will hold those accountable who betray the public's trust."
This morning, at approximately 7:30 a.m., Justice Loughry was arrested at his home by the FBI and brought to the Robert C. Byrd Courthouse in Charleston, West Virginia for processing and to schedule arraignment. The arrest of Justice Loughry was without incident and it is not expected he will be detained pending trial in this matter.
“For the past several weeks, public officials across West Virginia have been quick to condemn Justice Loughry, perhaps with the hope that the crisis in public confidence with the Supreme Court could be expediently resolved by lodging all culpability on just one person – Justice Loughry,” said United States Attorney Mike Stuart. “That may or may not, however, be the case. Our work continues on many fronts, including additional areas of corruption. I urge public officials and the public to respect this process and allow the process to play out.”
“I want to praise the hard and thorough work of several law enforcement partners, agencies and individuals,” said United States Attorney Mike Stuart. “The amazing work of the FBI, the West Virginia Legislative Commission on Special Investigations, the Internal Revenue Service—Criminal Investigation Division, and Assistant United States Attorneys Philip H. Wright, L. Anna Forbes, and Eric Bacaj. Late nights, long weekends, and hours and hours of investigative work – the FBI, WV-CSI, and my prosecutors are to be strongly commended.”
The 22-count Indictment charges Loughry with sixteen counts of mail fraud (Counts 2, 3, 4-17), which carry a penalty of up to 20 years for each count; two counts of wire fraud (Counts 1 and 18), which carry a penalty of up to 20 years for each count; three counts of making false statements to a federal agent (Counts 19-21), which carry a penalty of up to 5 years for each count; and one count of witness tampering (Count 22), which carries a penalty of up to 20 years. If convicted on all counts in the Indictment, Loughry faces a possible sentence of up to 395 years in prison, a fine of $5.5 million, and a term of supervised release of up to 3 years.
A copy of the indictment can be found
here .Please note: An Indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Follow us on Twitter: @SDWVNews and @USAttyStuart
###
Enforcement Operation Nets Multiple Federal Drug & Violent Crime DefendantsRead the Press Release
MEDIA ADVISORY
WHEN: Thursday, June 21, 2018 at 2:00 PM
WHERE: Nash County Commissioners Room
120 W. Washington Street
Nashville, NC 27856
Re: Enforcement Operation Nets Multiple Federal Drug & Violent Crime Defendants
Take Back North Carolina Initiative Results in 17 Arrests by the Tar River Regional Drug Task Force, Greenville Regional Drug Task Force & Other Partners
RALEIGH – The United States Attorney’s Office announces a press conference to discuss the results of a warrant enforcement operation centered on cocaine and heroin distribution and violent crime in Nash, Edgecombe, Wilson, and Pitt Counties. These Organized Crime Drug Enforcement Task Force (OCDETF) and violent crime enforcement operations are part of the recently announced Take Back North Carolina Strategy to combat violent and drug crime in the Eastern District of North Carolina. This initiative will bring the full weight and resources of the federal court system in the fight against crime in those counties. The United States Attorney’s Office is working in partnership with District Attorneys’ Offices and federal, state, and local law enforcement.
In addition to United States Attorney Robert J. Higdon, Jr., we anticipate members of federal, state, and local law enforcement agencies involved with this operation to be present at this event.
Credentialed members of the media are invited to attend. For additional information please e-mail Don Connelly at [email protected]. Please RSVP your intentions to attend the event.