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Friday 1 June 2018
Two Memphis Men Sentenced to a Total of 250 Months Imprisonment for Robbing Family Dollar StoreRead the Press Release
Memphis, TN – Two Memphis men have been sentenced to a total of 250 months in federal prison for committing an armed robbery affecting interstate commerce. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentences today.
According to information presented in court, on January 21, 2017, at approximately 9:40 p.m., Trentell Razor, 22, and Lareco Brooks, 21, entered the Family Dollar store at 2912 Coleman in Memphis. The men were dressed in black clothing and their faces were covered. Razor jumped over the counter and headed to the back of the store where he saw a customer with her young daughter. He advised them to stay where they were.
U.S. Attorney D. Michael Dunavant said:" The senselessness of gun violence has a long lasting effect on victims of armed robbery, and also has a corresponding long lasting consequence for such lawless offenders. These sentences make clear that there will always be a reckoning for the commission of violent crimes."
Brooks, armed with a sawed-off shotgun, put the shotgun to the neck of one of the two employees in the store, grabbed her by the shirt, and threw her to the ground. He then grabbed the second employee by the back of her shirt collar, pulled her across the counter and put the shotgun to her temple. He ordered her to open the register. Razor took money from the drawer and the two men fled on foot. A tracking device hidden in the bills enabled law enforcement to track the men to a Kia Spectra. When officers began following the vehicle, the men sped off and a police pursuit ensued. During the police chase, Brooks asked Razor to pull over and let him out. Razor complied and Brooks fled on foot, throwing the sawed-off shotgun in his wake. Razor finally stopped the vehicle and surrendered to police. Brooks was apprehended several days later on an unrelated charge.
On May 24, 2018, U.S. District Judge John T. Fowlkes, Jr. sentenced the men to a total of 250 months imprisonment.
This case was investigated by the FBI’s Safe Streets Task Force.
Assistant U.S. Attorney Karen Hartridge prosecuted this case on the government’s behalf.
Two Dominican Nationals Sentenced for Roles in Lawrence-Based Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – Two Dominican nationals were sentenced in federal court in Boston for their roles in a widespread heroin and fentanyl trafficking conspiracy operating in Lawrence.
Domingo Gonzalez Martinez, 48, was sentenced yesterday by U.S. Senior District Court Judge Douglas P. Woodlock to 54 months in prison and three years of supervised release. Ruddy Rafael Soto Lara, 40, was sentenced today by U.S. District Court Judge Denise J. Casper to 21 months in prison and three years of supervised release. Both defendants will be subject to deportation proceedings. In February 2018, Gonzalez Martinez and Soto Lara each pleaded guilty to one count of conspiracy to possess with intent to distribute fentanyl, heroin and cocaine. Soto Lara also pleaded guilty to one count of illegal reentry of a deported alien.
On May 30, 2017, a large scale law enforcement operation dismantled two Lawrence-based drug trafficking organizations, one allegedly run by Juan Anibal Patrone, and another led by Ramon Gonzalez Nival, who was allegedly a source of supply for Patrone. In May 2017, Gonzalez Martinez was arrested and charged along with Patrone, Gonzalez Nival, and 30 co-conspirators. Soto Lara was already in state custody at the time of the takedown.
Gonzalez Martinez supplied fentanyl to Patrone. Gonzalez Martinez operated out of the Corniel Market, or bodega, in Lawrence, and was one of several suppliers utilized by Patrone.
Soto Lara was a courier of fentanyl and cocaine for Gonzalez Nival. He was arrested on April 13, 2017, with approximately 20 grams of fentanyl, which he was delivering for Nival.
Patrone has pleaded not guilty and is scheduled to stand trial in October 2018. Gonzalez Nival has a change of plea hearing scheduled for June 6, 2018.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Essex County District Attorney Jonathan W. Blodgett; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Lawrence Police Chief Roy P. Vasque made the announcement. Assistant U.S. Attorney Susan Winkler of Lelling’s Narcotics and Money Laundering Unit prosecuted the cases.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Threatening to Blow-Up an Apartment with People Inside Sends Waterloo Man to Federal Prison for Two YearsRead the Press Release
A man who threatened to kill his ex-girlfriend and blow up her home and car was sentenced on May 31, 2018, to two years in federal prison.
Adam Charles Butler, age 25, from Waterloo, Iowa, received the prison term after a November 16, 2017 guilty plea to willfully making threats to kill or injure another by means of an explosive.
At the sentencing hearing, evidence showed that Butler sent several text messages threatening to use three bombs to blow up an Evansdale woman’s car and apartment when she and their young child were at home. Butler made the threat because the woman did not allow him to see their child that day and, according to one of Butler’s text messages, “because she doesn’t get to have all the control.” Butler was seen outside the woman’s home at approximately two in the morning the night after sending the bomb threats in violation of a no-contact order, and was arrested after police officers observed him leaving the area in his car.
Butler also had a history of domestic abuse, including physical assaults, break-ins, vandalism, threatening with guns, repeated verbal and text message death threats, and discharging guns.
Butler was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Chief Judge Strand, noting Butler’s history of domestic violence and the “egregious” nature of the threats, called Butler’s actions “very dangerous” and “disturbing.” Butler was sentenced to 24 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Butler is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Lyndie M. Freeman and Ravi T. Narayan and investigated by the Waterloo Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2074.
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Thirteen people indicted for firearms crimes and related violations as part of Project Safe NeighborhoodsRead the Press Release
Thirteen people from Ohio were indicted or charged in the past week in U.S. District Court in Cleveland for firearms crimes and related violations.
The U.S. Attorney’s Office for the Northern District of Ohio is on pace to file approximately 60 percent more firearms and violent crime indictments in Fiscal Year 2018 as it did in the previous two fiscal years.
“These defendants include those with a long history of violent crime, as well as defendants who have illegally obtained guns for criminals to use in violent crime like carjackings,” said U.S. Attorney Justin E. Herdman. “As part of Project Safe Neighborhoods, we will continue to work with local police and federal law enforcement to target the most dangerous offenders and make our community safer.”
“There is no place in our community for those who use firearms for violent, criminal purposes,” said Trevor Velinor, Special Agent in Charge of ATF’s Columbus Field Division. “ATF will continue to work with our law enforcement partners at the federal, state, and local levels to bring those individuals to justice.”
Indicted are: Tyla Spencer, 21, of Cleveland; Charles Fortney, 32, of Lorain; Rishad S. Bilal, 23, of Cleveland; Sergio D. Watson, 26, of Barberton; Logan Charles Peters, 20, of Wooster; David Crosby, 41, of Cleveland; Thomas O. Taylor, 36, of Cleveland; Demetrion Gross, 38, of Cleveland; Tony Olds, 37, of Boardman; Miquel Jones, 48, of South Euclid; Cory Moore, 25, of Cleveland; Keith Lundy, 43, of Cleveland, and Gregory Horne, 55, of Warren.
Spencer was charged with one count of making a false statement in acquisition of a firearm. Spencer bought a Glock 9 mm pistol and a Glock .40-caliber pistol on Jan. 3 from Cleveland Armory in Valley View.
Spencer went Cleveland Armory with Lashawn Davis and a juvenile and bought the Glocks with cash that Davis and the juvenile got from robbing a check-cashing store in Cleveland the day before. Spencer falsely stated she was the true buyer of the firearms when, in fact, she was purchasing the firearms on behalf of the males. Davis and the juvenile then used the firearms in a bank robbery and carjacking in February, according to court documents and statements in court.
Davis and the juvenile are in jail and awaiting trial for their crimes.
Fortney was charged with one count of possession of a firearm not registered in the National Firearms Registration and Transfer Record. Fortney on March 5 possessed a Kel-Tec 5.56 mm firearm modified with a forward vertical grip which had not been registered to him in the National Firearms Registration and Transfer Record, according to the indictment.
Bilal was charged with being a felon in possession of a firearm and ammunition. He possessed a Glock, Model 26, 9 mm caliber pistol with 15 rounds of ammunition on April 11, after having been previously convicted of drug trafficking, according to the indictment.
Watson was charged with being a felon in possession of firearms and ammunition. Watson on April 19 possessed four pistols loaded with ammunition: a Springfield Armory XD 40 .40 caliber pistol, a stolen Smith and Wesson SW40VE .40 caliber pistol, a Ruger SR9C 9mm pistol and a stolen Titan Manufacturing .25 caliber pistol. Watson had previous convictions for burglary, heroin trafficking, aggravated drug trafficking, having weapons while under disability, cocaine possession and other crimes, according to the indictment.
Peters was charged with being a felon in possession of firearms and ammunition. Peters on March 28 possessed a Ruger 9 mm pistol and 17 rounds of ammunition despite previous convictions for aggravated motor vehicle theft and drug crimes, according to the indictment.
Crosby was charged with being a felon in possession of firearms and ammunition. Crosby on April 22 possessed a Taurus 9 mm caliber pistol with six rounds of ammunition despite having been previously convicted of drug trafficking, robbery and assault on a peace officer, according to the indictment.
Taylor was charged with being a felon in possession of a firearm and ammunition. Taylor possessed a Taurus .40-caliber handgun and ammunition on March 25 despite two prior convictions for drug trafficking, according to the indictment.
Gross was charged with being a felon in possession of firearms and ammunition. On April 5, he possessed a Diamondback 9 mm handgun, a Glock .40-caliber handgun and ammunition, despite previous convictions for felonious assault, drug trafficking and escape, according to the indictment.
Olds was charged with being a felon in possession of a firearm and ammunition. Olds on March 18 possessed a Taurus 9 mm pistol and ammunition despite numerous previous convictions, including a conviction for being a felon in possession of a firearm, according to the indictment.
Jones was charged with being a felon in possession of a firearm. He was arrested on May 23for having a Maverick 12-gauge shotgun, a Ruger 9 mm handgun and 16 rounds of ammunition, despite previous convictions for robbery, burglary and domestic violence, according to court documents.
Moore was charged with one count of making false statements in the acquisition of firearms. Moore purchased a Taurus 9 mm pistol from On Target Firearms on State Road in Parma in July 2015. Moore caused to be made false statements about who was the actual buyer on the firearm.
Lundy was charged with possessing a firearm in furtherance of drug trafficking. Lundy possessed a firearm and approximately 500 grams of fentanyl that he planned to sell, according to the indictment.
Horne was charged with possession of a firearm in relation to drug trafficking, possession with intent to distribute crack cocaine, and being a felon in possession of a firearm and ammunition.
Horne had a Ruger 9 mm pistol and ammunition and 28 grams of crack cocaine on Dec. 15, 2017. He was previously convicted of possession of cocaine, according to the indictment.
These cases are part of Project Safe Neighborhoods, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, Drug Enforcement Administration, Cleveland Division of Police, Cleveland Metropolitan Housing Authority Police, Akron Police Department, Parma Police Department, Youngstown Police Department, Warren Police Department, Ohio State Highway Patrol, U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement, U.S. Postal Inspection Service and the Cuyahoga County Prosecutor’s Crime Strategies Unit.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Tax Return Preparer Arrested for Conspiring to Defraud the United States by Filing False Tax ReturnsRead the Press Release
GREENSBORO, N.C. – A Winston-Salem resident was arrested today on charges of tax fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin of the Middle District of North Carolina.
According to the indictment, which was unsealed today, Claudia Lynette Shivers (“Shivers”) conspired with Shannon DeWayne Patterson (“Patterson”), Kristyn Dion Daney (“Daney”), Rakeem Lenell Scales (“Scales”) and others to defraud the government by preparing false tax returns. Shivers co-owned and operated tax return preparation businesses named Fast Tax of Winston-Salem, Inc. (“Fast Tax”) in Winston-Salem and Quick Taxes LLC (“Quick Taxes”) in Greensboro. Shivers and her co-conspirators agreed to falsify items on clients’ tax returns in order to maximize their refunds. As part of their scheme, Shivers and her co-conspirators would direct clients to hand-write false information on tax forms and other documents to create a false record of information provided to Fast Tax and Quick Taxes for the preparation of the clients’ tax returns. Shivers is also charged with aiding and assisting in the preparation of false tax returns for several clients, as well as filing a false 2014 tax return for herself on which she failed to report all of her income.
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proved guilty beyond a reasonable doubt.
If convicted, Shivers faces a statutory maximum sentence of five years in prison for the conspiracy count, three years in prison for each count of preparing false tax returns for clients, and three years in prison for the count of filing her own false tax return. She also faces a period of supervised release, restitution and monetary penalties. Patterson, Daney and Scales have all pled guilty to charges of aiding and assisting in the preparation of false tax returns, and are awaiting sentencing. Each faces a statutory maximum sentence of three years in prison, a period of supervised release, restitution and monetary penalties.
“We will prosecute those who cheat on their taxes and those who coach others to cheat on their taxes. It harms all tax-payers and threatens the integrity of our system,” stated U.S. Attorney Martin.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Robert J. Boudreau of the Tax Division and Criminal Division Chief Clifton T. Barrett of the Middle District of North Carolina, who are prosecuting the case. Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Syracuse Man Sentenced for Threatening Death Against A New York Congressman and His FamilyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – United States Attorney James P. Kennedy, Jr. announced today that Patrick D. Angelo, 28, of Syracuse, NY, who was convicted of interstate communication of a threat, was sentenced to time served (seven months in prison) and three years’ supervised release by the Honorable Mae A. D’Agostino, United States District Judge for the Northern District of New York. The defendant was also ordered to have no direct contact with Congressman John Katko.
The conviction is the result of a threat defendant made to New York Congressman John Katko on October 19, 2017. On that date, defendant called the Washington D.C. office of Congressman Katko and left a threatening voice mail that included a death threat to the Congressman and his family. Congressman Katko’s office reported the voicemail to the United States Capitol Police, Threat Assessment Section, which began an investigation in coordination with the Federal Bureau of Investigation. The telephone number that the call originated from traced back to the defendant.
As a result of the threat, security surrounding Congressman Katko was increased. Since Congressman Katko formerly served as Assistant U.S. Attorney in the Northern District of New York, that Office was recused, and the case was prosecuted by the United States Attorney’s Office for the Western District of New York. Assistant U.S. Attorneys Craig R. Gestring and Sean C. Eldridge of the United States Attorney’s Office for the Western District of New York, in Rochester, handled the case.
In sentencing the defendant, Judge D’Agostino characterized the defendant’s conduct as “beyond reprehensible” and indicated that the threat made against the Congressman represented “an assault on government.”
“By threatening to harm Congressman Katko and his family, defendant crossed the line,” noted U.S. Attorney Kennedy. “While the First Amendment protects a broad range of speech and expression, it is not without limits. Hopefully, this prosecution will clearly convey the message that true threats against those in public office are not protected speech and will not be tolerated.”
Today’s sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Vadim Thomas, Special Agent-in-Charge, Albany Office; the New York State Police, under the Major Philip T. Rougeux; and the United States Capitol Police, under the direction of Matthew R. Verderosa.
St. Kitts Man Arrested, Charged with Illegally Re-Entering the United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Andrew Adolphus Hodge, 68, of St. Kitts, was arrested and charged by criminal complaint with making a false official statement and unlawful re-entry into the United States following a conviction for an aggravated felony. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Jonathan P. Cantil, who is handling the case, stated that according to the criminal complaint, on May 29, 2018, at approximately 9:00 p.m., at the Peace Bridge port of entry, a Customs and Border Protection officer conducted a primary inspection of the defendant, who was a passenger on a commercial Greyhound Bus. Hodge presented a United Kingdom Passport and stated that he traveling to Brooklyn, New York to visit family. A primary name query resulted in a positive response indicating that he had been previously deported from the United States as an aggravated felon.
The defendant indicated to the officer that he had never lived in the United States and had never been arrested. Hodge was referred to secondary for further inspection. Subsequent investigation determined that the defendant had been ordered removed by an Immigration Judge on April 28, 2015, after being convicted of Grand Theft in Los Angeles, California in October 1993, and Forgery over $60,000, in Shelby County, Tennessee in October 2009. Hodge was removed from the United States and deported to Saint Kitts in April 2016.
The defendant made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and is being held pending a detention hearing on June 8, 2018.
The criminal complaint is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Six Individuals Arrested on Drug Conspiracy ChargesRead the Press Release
FORT WORTH, Texas — Thomas Cody, of Stephenville, Texas, Chalee Campbell, of Fort Worth, Texas, Jacob Hendricks, aka, “Jake Hendricks, “of Clifton, Texas, Terry McConathy, of Benbrook, Texas, Rebecca Mullins, of Stephenville, Texas, and Christal Walker, of De Leon, Texas, are in federal custody following their arrests May 29, 2018, on federal drug conspiracy charges, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
The defendants were all charged with one count of conspiracy to possess with the intent to distribute a controlled substance, and made their initial appearance Tuesday, May 30, 2018, before U.S. Magistrate Judge Jeffrey Cureton.
According to the Complaint filed on May 10, 2018, from approximately July 2017 through January 2018, the defendants conspired together, and with others, to possess with the intent to distribute 50 grams or more of methamphetamine throughout the Northern District of Texas and elsewhere. Members of the conspiracy had a fluid hierarchy that evolved over time. Some of the money derived from the sale and distribution of the methamphetamine was used to purchase additional quantities of methamphetamine.
A complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The government has 30 days to present the matter to a grand jury for indictment. The maximum statutory penalty for the offense charged is 40 years in federal prison and a $5,000,000 fine.
The Drug Enforcement Administration and Stephenville Police Department are in charge of the investigation and Assistant United States Attorney Shawn Smith is in charge of the prosecution.
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Silver City Felon Charged with Unlawfully Possessing FirearmsRead the Press Release
ALBUQUERQUE – Michael Scott Freeman, 42, of Silver City, N.M., made his initial appearance today in federal court in Las Cruces, N.M., on a criminal complaint charging him with violating the federal firearms laws by unlawfully possessing firearms. The firearms at issue allegedly were stolen during a home burglary in Aug. 2017. Freeman remains in custody pending a preliminary hearing and a detention hearing both of which have yet to be scheduled.
According to the criminal complaint, the Grant County Sheriff’s Office (GCSO) responded to a home burglary in Aug. 2017, during which a number of firearms were stolen from a large gun safe. In Oct. 2017, an individual reported purchasing two firearms and additional cylinders from Freeman. The individual subsequently surrendered the firearms and cylinders to the GCSO, suspecting that the firearms and cylinders were stolen. The serial numbers and descriptions of the firearms matched the serial numbers and descriptions of two of the firearms allegedly stolen during the Aug. 2017, home burglary.
Freeman was prohibited from possessing firearms or ammunition in Aug. 2017 and Oct. 2017, because of his prior convictions for felony offenses including convictions for unlawful taking of a motor vehicle, escape, and use of a phone to terrify, intimidate or threaten.
If convicted of the crime charged in the criminal complaint, Freeman faces a maximum penalty of ten years in federal prison. Charges in criminal complaints are mere accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Las Cruces office of the FBI and the Grant County Sheriff’s Office with assistance from the Silver City Police Department, New Mexico State Police and the 6th Judicial District Attorney’s Office. Assistant U.S. Attorney Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office is prosecuting this case as part of a federal anti-violence initiative that targets violent, repeat offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution offenders with the goal of making communities in New Mexico safer places for people to live and work.
Shreveport felon sentenced to 37 months in prison for possessing pistol, ammunition in carRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today that a Shreveport man previously convicted of a felony was sentenced to 37 months in prison for possessing a pistol and ammunition in his car.
Demond Lamont Hill Sr., 37, of Shreveport, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of possession of a firearm by a convicted felon. He was also sentenced to three years of supervised release. On July 31, 2017, Shreveport Police responded to a call about people dealing drugs on Herndon Street. Officers heard loud music when approaching Hill, and he jumped in his car. Officers approached Hill’s car and saw a gun on the driver’s seat beside the center console. Hill said the gun was not his but knew it was in the car. Hill said he was on parole and a convicted felon. The firearm was a Taurus semi-automatic 9 mm pistol. The officer also found 12 rounds of ammunition. Hill has several felony convictions in Caddo Parish and is prohibited from possessing a firearm. His felony convictions include aggravated battery in 2001, drugs in 2006 and 2007, and firearm possession in 2007.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Mike O’Mara prosecuted the case.
Seventy-Seven Year Old Canadian Man Arrested, Charged with Possession and Importation of MarijuanaRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Nerio Frank Fogazzi, 77, of Canada, was arrested and charged by criminal complaint with possessing with intent to distribute and distributing marijuana, and importing marijuana from Canada into the United States. The charges carry a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Emmanuel O. Ulubiyo, who is handling the case, stated that according to the complaint, on May 21, 2018, at approximately 10:00 p.m., the defendant attempted to enter the United States from Canada at the Peace Bridge port of entry. During primary inspection, Fogazzi, a Canadian Citizen, told the primary Customs and Border Protection Officer that he was coming to the United States to go shopping but could not provide the Officer with an intended shopping destination.
When asked if he was bringing anything into the United States and if he had anything to declare, the defendant said he did not. The officer then asked Fogazzi to unlock the trunk of his vehicle for inspection. The officer opened the trunk and observed an empty black hockey bag laying on top of two other black hockey bags that appeared full. The officer also detected the odor of marijuana emanating from the trunk. The officer then unzipped one of the full hockey bags and observed suspected marijuana inside clear vacuum sealed plastic bags. The defendant was escorted to the security office. Fogazzi’s vehicle was also taken to the secondary area for further inspection during which officers discovered additional suspected marijuana in a second hockey bag as well as in the spare-tire cavity under the hockey bags in the trunk. A total of 96 packages of suspected marijuana, weighing a total of over 104 lbs., were seized.
“Although 77-year-old Canadians who come to the United States to play hockey will be welcomed—and likely even celebrated—here,” stated U.S. Attorney Kennedy, “septuagenarians who use hockey bags to smuggle marijuana into our country will not be given the same reception. Instead, they will be prosecuted to the fullest extent of the law.”
“This is an excellent seizure that demonstrates our officers dedication to enforcing the CBP mission and protecting the public from illegal narcotics,” said Acting Port Director Cary Frieling. “Their vigilance and our excellent working relationship with our partners at Homeland Security Investigations and the U.S. Attorney’s Office prevented these narcotics from entering our country and ensured that the violator will face justice.”
“HSI will continue working with our partners at CBP to ensure that those engaged in smuggling large quantities of illegal drugs into the United States are brought to justice,” said Kevin Kelly, Special Agent-in-Charge of HSI Buffalo. “HSI has the capability to leverage significant seizures into wider investigations that attack every level of a drug smuggling organization, both foreign and domestic.”
The defendant made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder and was released on conditions.
The complaint is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Seven people indicted for conspiracy to distribute heroin, fentanyl, cocaine and crack cocaine around Youngstown and Girard, Ohio, and Farrell, PennsylvaniaRead the Press Release
Seven people were indicted in federal court for their roles in a conspiracy to distribute heroin, fentanyl, cocaine and crack cocaine around Youngstown and Girard, Ohio, and Farrell, Pennsylvania, said U.S. Attorney Justin E. Herdman and DEA Special Agent in Charge Timothy Plancon.
Named in the 39-count indictment are: Cedis R. Martin, 31, of Warren; Zachary E. Bradford, 36, of Girard; Adham Aburhma, 23, of Youngstown; Prentice Miller, 29, of Grove City, Penn.; Eric Murray, 31, of Farrell, Penn.; Ashley Allison, 31, of Grove City, Penn., and Amanda Walker, 23, of New Castle, Penn.
All seven defendants conspired from February 2015 through this April to possess with the intent to distribute and to distribute fentanyl, heroin, cocaine and crack cocaine, according to the indictment.
According to the indictment:
Martin supplied cocaine to Murray for distribution in Youngstown, Ohio, and Farrell, Pennsylvania areas; supplied heroin to Bradford and Miller for distribution in the Youngstown, Ohio and Farrell, Pennsylvania areas; and supplied fentanyl to Aburahma for distribution in the Youngstown, Ohio and Farrell, Pennsylvania areas.
Allison and Walker transported heroin from suppliers to Martin for distribution.
It was further part of the conspiracy that cellular telephones, code words and phrases were used by the co-conspirators to facilitate their drug trafficking activities.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration, the Girard Police Department and the Pennsylvania State Police. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Seven Individuals Sentenced to Prison in Multi-Million Dollar International Money Laundering ConspiracyRead the Press Release
On May 30, 2018, Geannis Gonzalez, 31, formerly of Peyton, Colorado, Quiana Velasco, 35, of Miami, Jose Daniel Estrella, 38, of Hallandale, Pedro Reyes, 38, of Hialeah, Robinson Castillo, 32, of Pembroke Pines, and Jamie Vives Castillo, 41, of Pembroke Pines, were sentenced to federal prison for participating in a conspiracy to commit money laundering. Yesterday, conspirator Alfredo Tovar, 36, of Miami Gardens, was also sentenced to prison for his involvement in the criminal scheme. All seven defendants previously pled guilty for their involvement in the conspiracy, in March 2018.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
“The sentences announced today stem from a pernicious scheme that was breathtaking in scope,” stated United States Attorney Benjamin Greenberg. “Unfortunately, the life-blood of this devastating scheme was a steady stream of people who cast aside their respect for the law, in the pursuit of ‘easy money.’ As a result, vulnerable men and women throughout the country were stripped of their life savings. The U.S. Attorney’s Office and our law enforcement partners will continue to bring to justice those individuals who carry out, and recruit for, similar criminal enterprises.”
“Today’s sentencings punish the defendants for their thievery and greed,” said Robert F. Lasky, Special Agent in Charge, FBI Miami. “So-called white collar crimes such as money laundering should not be taken lightly. In this case, there were over 400 victims, including retirees, who were scammed out of tens or hundreds of thousands of their hard-earned dollars. The FBI is continuously adapting our investigative techniques to bring these types of offenders to justice.”
According to stipulated facts filed in court, as well as facts presented at sentencing, the defendants opened bank accounts established in the names of shell corporations to receive the proceeds of various fraudulent schemes, including romance frauds, email hacking schemes, and inheritance and lottery scams, that victimized individuals and corporations across the United States. Once these bank accounts received money wired from a fraud victim, the defendants would wire the money to other accounts overseas. Victims of the fraud schemes included retirees and other individuals whom were defrauded of tens or hundreds of thousands of dollars, including retirement savings and money borrowed from friends and family members.
After banks closed the accounts that the defendants had opened, often on suspicion that the they were being used for fraud or other illegal activity, the defendants would recruit other individuals to act as “money mules,” establishing additional shell corporations in the money mules’ names. The defendants would then instruct the money mules to open new bank accounts throughout South Florida in the names of the new shell corporations. They would also instruct the mules to falsely represent to the banks that the shell corporations were legitimate businesses engaged in the import, export, or sale of various goods. Those accounts would similarly receive proceeds from the same sorts of fraudulent schemes, after which the defendants would instruct their recruits to further wire the money overseas. The defendants received repeated warnings and indications that the funds coming into the shell corporation bank accounts were the proceeds from illegal activity. The bank accounts that were utilized by the defendants and the mules they recruited, received between $3,381,110 to $7,177,442 in proceeds. As a result of their involvement with this scheme, the seven defendants would receive a small percentage of these funds as their commission. Overall, the conspiracy included the participation of dozens of individuals and laundered money was defrauded from more than 400 victims.
United States District Court Judge Ursula Ungaro imposed prison sentences upon all seven defendants, ranging from 108 months in prison for Pedro Reyes and 80 months in prison for Geannis Gonzalez, to 48 months in prison for Jose Estrella, Jamie Vives Castillo, and Robinson Castillo. Quiana Vealsco and Alfredo Tovar were each sentenced to 60 months in prison.
Mr. Greenberg commended the investigative efforts of the FBI in connection with this matter. This case was prosecuted by Assistant U.S. Attorneys Jared M. Strauss and Michael G. Walleisa.
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.
Sentencings for May 29 - June 1, 2018Read the Press Release
OMAR MIRAMONTES-GRANILLO, 26, of Chihuahua, Mexico was sentenced by Federal District Court Judge Alan B. Johnson on May 29, 2018 for illegal re-entry of a previously deported alien into the United States. Miramontes-Granillo was arrested in Laramie County, Wyoming. He received time served plus ten days to allow for deportation proceedings and ordered to pay a $100.00 special assessment at the time of deportation. The U.S. Bureau of Immigration and Customs Enforcement investigated this case.
ROBERTO ROMERO-CALVA, 23, of Hidalgo, Mexico was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 31, 2018 for illegal re-entry of a previously deported alien into the United States. Romero-Calva was arrested in Mills, Wyoming. He received time served plus ten days to allow for deportation proceedings and ordered to pay a $100.00 special assessment at the time of deportation. The U.S. Bureau of Immigration and Customs Enforcement investigated this case.
ANGEL MARTINEZ-GARCIA, 46, of Chihuahua, Mexico was sentenced by Federal District Court Judge Alan B. Johnson on June 1, 2018 for illegal re-entry of a previously deported alien into the United States. Martinez-Garcia was arrested in Johnson County, Wyoming. He received time served plus ten days to allow for deportation proceedings and ordered to pay a $100.00 special assessment at the time of deportation. The U.S. Bureau of Immigration and Customs Enforcement investigated this case.
Santa Barbara County Man Sentenced to More than Twenty Years in Federal Prison for Distribution of Child PornographyRead the Press Release
LOS ANGELES – A federal judge yesterday sentenced a Santa Barbara County man to 246 months’ incarceration for distribution of child pornography.
Christopher Robin Coates, 43, of Carpinteria, met minors in online chat rooms dedicated to youths seeking father figures and manipulated them into sending him child pornography images of themselves. According to court records, Coates would also share the minors’ online "handles" with other persons seeking to exploit children.
When law enforcement officers searched his digital devices, they found more than 1,000 images and 128 videos depicting child pornography. According to court documents, Coates used the Kik Messenger app to distribute child pornography to underage victims. Coates had several prior convictions for possessing child pornography in addition to a conviction for sexual battery on a disabled adult.
In July, 2015, based on a tip to the Postal Inspection Service by the National Center for Missing & Exploited Children, law enforcement officers conducted a parole search of Coates’ residence. During the search, authorities recovered a Samsung tablet under a mattress that contained hundreds of images and videos of child pornography.
Coates was originally arrested and charged with multiple child exploitation crimes in Santa Barbara County by Santa Barbara District Attorney Joyce Dudley. The District Attorney’s Office subsequently dismissed the state charges when the federal indictment was filed.
The case was investigated by the United States Postal Inspection Service and the Federal Bureau of Investigation. The Santa Barbara Sheriff’s Department, the California Department of Corrections and Rehabilitation and the Los Angeles Joint Regional Intelligence Center provided substantial assistance.
The case was prosecuted by Assistant United States Attorneys Devon Myers and Vanessa Baehr-Jones of the Violent and Organized Crime Section.
Sampson County Man Sentenced to More than 17 Years in Prison for RobberyRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Chief United States District Judge James C. Dever, III sentenced JAMES DANIEL MCKOY, 54 from Garland, North Carolina, to 210 months in prison, followed by 5 years of supervised release. JAMES MCKOY was part of a violent drug trafficking organization operating in Sampson County. On February 5, 2018, JAMES MCKOY pled guilty to Conspiracy to Distribute and Possess With Intent to Distribute 5 Kilograms of More of Cocaine, 280 Grams of More of Cocaine Base (Crack), a Quantity of Marijuana, and a Quantity of Heroin; three-counts of Distribution of a Quantity of Cocaine Base while Aiding and Abetting Another; Distribution of a Quantity of Cocaine Base; Possession of a Firearm in Furtherance of a Drug-Trafficking Crime; two-counts of Distribution of 28 Grams or More of Cocaine Base while Aiding and Abetting Another; and Distribution of 28 Grams or More of Cocaine Base and a Quantity of Heroin while Aiding and Abetting Another.
In December 2013, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Sampson County Sheriff’s Office (SCSO) in Clinton, North Carolina, identified a drug-trafficking organization (DTO) led by Antonio Kevin McKoy. This investigation confirmed that within the Eastern District of North Carolina, the DTO distributed significant quantities of marijuana, cocaine, cocaine base (crack), heroin, prescription pain pills, and firearms throughout Eastern North Carolina from at least 2007 until late September 2016. Antonio McKoy utilized dozens of individuals, including his uncle, JAMES MCKOY, to build and sustain this DTO’s operation. Antonio McKoy was convicted in Federal Court on May 22, 2018 following a jury trial and is currently awaiting sentencing.
The investigation utilized a myriad of techniques and tools to gather extensive evidence about the DTO. The collected evidence confirmed Antonio McKoy maintained multiple residences in the Garland, North Carolina, area from where cocaine, crack, heroin, methamphetamine, and prescription pills were stored, packaged, distributed or supplied to others for distribution. These residences were also utilized to manufacture cocaine into crack. JAMES MCKOY’S residence in Garland was utilized for these purposes.
The investigation determined the JAMES MCKOY was accountable for a total of 226.8 grams of marijuana, 31.5 grams of cocaine, 912.395 grams of crack and 225.2 grams of heroin. He is also accountable for possession of a firearm in furtherance of his drug trafficking activity.
The case is a federal Organized Crime Drug Enforcement Task Force (OCDETF) criminal matter being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Sampson County Sheriff’s Office, Internal Revenue Service Criminal Investigation, U.S. Probation Office, the North Carolina State Bureau of Investigation and the North Carolina Departments of Revenue and Emergency Management. Assistant United States Attorneys Brad Knott and Toby Lathan prosecuted the case on behalf of the United States.
Rosebud Man Sentenced for Simple AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man charged with Simple Assault was sentenced on May 25, 2018, by U.S. Magistrate Judge Mark A. Moreno.
Daniel Knoll, age 35, was sentenced to 15 days in custody, $160 in restitution, and a special assessment to the Federal Crime Victims Fund in the amount of $10.
Knoll was charged by criminal complaint on May 23, 2018. He pled guilty on May 25, 2018.
The conviction stemmed from an incident that occurred on May 22, 2018, wherein Knoll assaulted his girlfriend at her residence in Rosebud by pushing her down. He then went outside the residence and broke a window on her vehicle, causing approximately $160 in damage to the vehicle. Knoll was subsequently arrested by the Rosebud Sioux Tribe Law Enforcement Services.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Knoll was immediately turned over to the custody of the U.S. Marshals Service.
Richmond Company Agrees to Settle False Claims Act LawsuitRead the Press Release
RICHMOND, Va. – James River Air Conditioning Company, located in Richmond, has agreed to pay $625,000 to the United States to settle a federal civil fraud lawsuit alleging that it underpaid its workers and submitted false certified payroll reports for work it performed on federal construction and renovation projects.
James River subcontracted to perform plumbing, heating, ventilation and air conditioning (HVAC) work on seven separate federal renovation and construction projects located in and around the Richmond area. The Davis-Bacon Act, together with the Contract Work Hours and Safety Standards Act, requires that contractors on federal projects submit weekly payroll reports certifying that they correctly classified their workers according to work actually performed and that workers be paid not less than prevailing wages and benefits for each classification, as determined by the U.S. Department of Labor. The United States initiated an investigation after a qui tam (or whistleblower) lawsuit was filed under the federal False Claims Act.
The False Claims Act permits the government time to investigate allegations in qui tam complaints and to intervene in such lawsuits. Based on its investigation of the allegations, the United States intervened, the case was unsealed and the Government filed a complaint. The alleged conduct occurred between 2012 and 2015.
The False Claims Act also permits whistleblowers to receive a share of any recovery. The whistleblower in this case will receive $106,250 from the settlement. The case is captioned United States ex rel. Nathan Kirchgessner v. James River Air Conditioning Company, Civil No. 3:16-cv-232 (JAG).
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia, the Department of Labor Office of Inspector General, the Army Criminal Investigation Command, Department of Defense Criminal Investigative Service, and the Department of Veterans Affairs Office of Inspector General.
The matter was investigated by Assistant U.S. Attorney Robert McIntosh. The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Repeat Dubuque Drug Dealer Sentenced to over Two Decades in Federal PrisonRead the Press Release
A Dubuque man who was found in possession of over 660 grams of ice methamphetamine was sentenced May 31, 2018, to more than 23 years in federal prison.
Scott Harry, age 42, from Dubuque, Iowa, received the prison term after a December 20, 2017, jury verdict finding him guilty of possessing 50 grams or more of pure methamphetamine with the intent to distribute it after having a previous conviction for a felony drug offense.
Evidence at trial showed that Harry was stopped by Dubuque Police Department while in possession of over 660 grams of pure methamphetamine hidden in a PVC pipe in the bed of the truck he was driving. Evidence also showed that Harry had been selling methamphetamine in the Dubuque area. In 1998, Harry was convicted of delivery of cocaine in state court.
Harry was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Harry was sentenced to 280 months’ imprisonment. He must also serve a 10-year term of supervised release after the prison term. There is no parole in the federal system. Harry is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Ravi Narayan and Patrick Reinert and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Dubuque Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-01017-LTS. Follow us on Twitter @USAO_NDIA.
Repeat Drug Offender Pleads Guilty to Gun Charges in Federal CourtRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated that Richard Stewart, age 42, of Lancaster, SC, pled guilty on in federal court in Columbia, to Felon in Possession of a Firearm, a violation of Title 18, United States Code, Section 922(g). United States Senior District Judge Cameron Currie, of Columbia, accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that on June 6, 2017, Lancaster Sheriff’s Office (LCSO) Deputies executed a search warrant at Stewart’s mother’s residence in Lancaster, SC. During the search, deputies found multiple firearms including a Taurus Judge handgun. Stewart was arrested shortly after the search and admitted to owning the Taurus firearm.
Stewart is prohibited under federal law from possessing firearm based upon his prior felony convictions for possession of crack cocaine and manufacturing crack cocaine.
Stewart faces a maximum possible penalty of ten (10) years, a fine of $250,000, and up to three (3) years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Lancaster County Sheriff’s Office and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Will Lewis of the Columbia office handled the case. Project CeaseFire is 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.
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Registered Sex Offender Pleads Guilty to Gun Charges in Federal CourtRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Jason Rivers, age 30, of Lexington, SC, pled guilty on in federal court in Columbia, to Felon in Possession of a Firearm, a violation of Title 18, United States Code, Section 922(g). United States Senior District Judge Cameron Currie, of Columbia, accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that on January 29, 2018, Lexington County Sheriff’s Office (LCSO) Deputies tracked Rivers to his residence in order to execute an arrest warrant on Rivers for Failure to Update his Residence as a Registered Sex Offender. Upon entering the residence, Deputies encountered Rivers at the door and immediately detained him. When Deputies first saw Rivers he was wearing a backpack and before deputies could detain him, Rivers attempted to throw the backpack into the residence. Deputies seized the backpack and searched it finding a loaded Ruger .380 caliber pistol. After Deputies detained Rivers, he admitted to owning the Ruger pistol.
Rivers is prohibited under federal law from possessing a firearm due to prior felony convictions for assault and battery of a high and aggravated Nature and committing a lewd act upon a child under sixteen (16).
Rivers faces a maximum possible penalty of ten (10) years, a fine of $250,000, and up to three (3) years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Lexington County Sheriff’s Office and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Will Lewis, of the Columbia, office handled the case. Project CeaseFire is 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.
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Randallstown Man Pleads Guilty to Sexual Exploitation of A ChildRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885Baltimore, Maryland – On May 31, 2018, Kenneth M. Smith, age 39, of Randallstown, Maryland, pleaded guilty today to two counts of sexual exploitation of a child.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge Cardell Morant of ICE Homeland Security Investigations; Chief Terrence B. Sheridan of the Baltimore County Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and State’s Attorney Scott Shellenberger of the Baltimore County State’s Attorney’s Office.
According to his plea agreement, on September 8, 2015, an electronic communications service reported to the National Center for Missing and Exploited Children (“NCMEC”) that one of its users had uploaded an image of known child pornography. It was determined that an account with the same username as an e-mail account associated with Smith’s accounts was active on an image-sharing website that contains child pornography and erotica. The IP address used to access the account was assigned to Smith’s mother’s residence in Randallstown, Maryland, where he was living at the time.
On October 12, 2015, the Baltimore County Police Department secured a warrant to search the residence and discovered Smith’s laptop, which was powered on and had an anonymous file-sharing platform open on the screen. The file-sharing program was active and downloading child pornography files when agents made contact with the defendant’s computer. A downloads folder was also open and contained numerous files of child pornography.
During an interview with investigators, Smith admitted to sexually abusing a seven-year-old boy, and taking pictures of the abuse with his smartphone. Investigators located the photographs of Smith engaged in sexually explicit conduct with the boy. Investigators also recovered thousands of other videos and images of children being sexually abused, including images and videos of the rape of children, including infants and toddlers. Smith also used his e-mail accounts to send and receive child pornography.
Smith also admitted to the prior abuse of a minor girl in Washington County. He was tried and convicted in Washington County in September 2017 of sex offenses against the minor girl, and in November was sentenced to 16 years in prison on those charges.
Smith faces a minimum sentence of 15 years in prison and a maximum sentence of 60 years in prison. U.S. District Judge George L. Russell has scheduled sentencing for October 12, 2018.
United States Attorney Robert K. Hur commended the FBI, HSI, the Baltimore County Police Department, the Maryland State Police, the Baltimore County State’s Attorney’s Office, the Washington County State’s Attorney’s Office, and the Washington County Sheriff’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Zachary A. Myers and Jeffrey Izant, who are prosecuting the case.
Raleigh Man Sentenced for Manufacturing Xanax in Storage Unit and Several Other ChargesRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, Chief United States District Judge James C. Dever, III sentenced MATTHEW LEE YENSAN, 25, of Raleigh, to 78 months of imprisonment followed by 5 years of supervised release.
January 23, 2018, YENSAN pled guilty to a five-count Criminal Information, specifically Possession with the Intent to Distribute a Quantity of Alprazolam, a Schedule IV Controlled Substance, Distribution of a Quantity of Alprazolam by Means of the Internet, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, Engaging in a Monetary Transaction in Property Derived From Specified Unlawful Activity, and International Money Laundering.
In July 2017, DEA agents in Raleigh received information that YENSAN was mass producing Xanax by utilizing pill presses, and selling them on the Dark Net. The Dark Net is a section of the internet that is accessed through a special browser required to locate hidden websites. The browser obfuscates the user’s identity, making it a haven for illegal activity, to include drug distribution. Through continued investigation, agents identified YENSAN’S Raleigh residence, as well as a nearby storage unit being utilized by YENSAN.
Based upon their investigation, agents served a search warrant on September 12, 2017 of YENSAN’S residence and recovered the following items: Four loaded firearms, $269,068, multiple Bitcoin wallets, 480 grams of marijuana and other items associated with illegal drug distribution.
On that same date, agents seized the following items from YENSAN’S storage unit, where YENSAN had set up a clandestine pill manufacturing plant: approximately 80,000 dosage unit of Xanax; the ingredients needed to manufacture approximately 300,000 dosage units of Xanax to include two to three pounds of Alprazolam; a computer, the browser of which was open to the Dark Net; and multiple items associated with illegal manufacturing and distribution. Later agents used computer forensic tools to discover that YENSAN possessed approximately $1,489,235.000 in virtual currency.
The investigation uncovered that YENSAN also engaged in money laundering using U.S. currency derived from his drug trafficking activities. YENSAN sent $1,200 in U.S. currency to the Postal Savings Bank of China in Yongkang, China, to purchase pill presses and Xanax molds in an act of international money laundering.
The defendant possessed multiple firearms in connection with his drug trafficking activities and maintained a premises for the purpose of manufacturing or distributing a controlled substance. He obstructed justice by attempting to procure another person to conceal evidence material to the investigation. Lastly, the defendant distributed a controlled substance through mass-marketing by means of an interactive computer service, by utilizing a vendor page on the Dark Net to advertise and sell quantities of Xanax.
The investigation was conducted by the Drug Enforcement Administration, the Wake County Sheriff’s Office and the Postal Inspection Service.
Pittsburgh-Area Man Sentenced to 5 Years in Prison for Defrauding Investors of $2.2 MillionRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, PA, has been sentenced by a federal district court judge in Pittsburgh, Pennsylvania to 60 months in prison on charges of wire fraud and tax evasion, United States Attorney Scott W. Brady announced today.
Albert P. Majkowski, Jr., 59, went to trial in January and was found guilty by a jury of wire fraud and tax violations set forth in a seven-count indictment.
According to the evidence presented during trial, Majkowski defrauded potential investors over nearly a decade by, among other things, making false statements about his own success in "incubating" start-up businesses, misrepresenting his own personal wealth and producing a series of false documents that inflated the assets of his company and the funding he was supposedly receiving from outside sources. He also evaded his income tax obligations for the years 2007 through 2010 by a variety of means including failing to file tax returns, putting his assets into the names of other persons and manipulating a series of checks made out in blank or to cash. The evidence produced at trial showed that he evaded nearly $200,000 in federal income tax on income of more than $700,000. The presiding judge, U.S. District Court Judge Reggie Walton, made a finding at the time of sentencing that various investors had lost more than $2.2 million that they had entrusted to Majkowski.
At the sentencing proceeding Majkowski was given 60 months in prison to be followed by three years of supervised release and ordered to pay more than $2.2 million to defrauded investors as well as restitution to the IRS of $181,456.
The Internal Revenue Service, Criminal Investigations, and the United States Postal Inspection Service conducted the investigation leading to the charges in this case.
Pittsburgh Woman Sentenced Probation After Arranging for an Elderly Person’s Painkillers to be Sold to DealersRead the Press Release
PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to four years of probation on her conviction of conspiring to commit health care fraud and conspiring to distribute oxymorphone, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Mildred Rainey, 61.
According to information presented to the court, Rainey participated in a criminal network of drug dealers by obtaining opiate painkillers prescribed to an elderly person and arranging for the sale of that medication to individuals who illicitly distributed the medication to individuals addicted to the medication. In addition, a taxpayer funded insurance program paid for the medication that Rainey arranged to distribute illegally.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Office of the Attorney General, the Pittsburgh Bureau of Police, and the Allegheny County Police Department for the investigation leading to the successful prosecution of Rainey.
Orange County Resident Indicted for Bankruptcy FraudRead the Press Release
Orlando, FL – United States Attorney Maria Chapa Lopez announces the return by a grand jury of an indictment charging Christopher Coburn (33, Winter Garden) with six counts of bankruptcy fraud. If convicted, he faces a maximum penalty of 30 years in federal prison.
According to the indictment, Coburn solicited homeowners whose mortgages were in default and offered to rescue their homes from foreclosure. In order to prevent the Federal National Mortgage Association (“Fannie Mae”) and multiple financial institutions holding mortgages from lawfully foreclosing on homeowners’ properties, Coburn engaged in a bankruptcy fraud scheme whereby he filed or caused to be filed fraudulent bankruptcy petitions in the name of homeowners, without their knowledge or consent, just prior to the scheduled foreclosure sale dates. These fraudulent bankruptcies triggered the automatic stay provision of the bankruptcy code, preventing Fannie Mae and the financial institutions from conducting lawful foreclosure sales and obtaining title to the properties. The fraudulent petitions enabled Coburn to collect fees and allowed him to refer the properties to real estate agents in order to obtain ill-gotten referral fees.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Housing Finance Agency, Office of Inspector General. The Office of the United States Trustee for the Middle District of Florida (Orlando Division) also provided substantial assistance. It will be prosecuted by Special Assistant United States Attorney Chris Poor.
Omaha Man Sentenced for Possessing a FirearmRead the Press Release
United States Attorney Joseph P. Kelly announced that Anthony D. Gordon, age 28, of Omaha, Nebraska, was sentenced today by the Honorable Robert F. Rossiter having previously pled guilty to being a felon in possession of a firearm. Gordon was sentenced to 5 years, 10 months’ imprisonment and 3 years of supervised release when his prison sentence is completed.
On August 4, 2017, at approximately 12:08 a.m., officers of the Omaha Police Department came upon a vehicle in the eastbound lane of Taylor Street, near 24th Street, blocking traffic. Traffic was heavy due to Native Omaha Days celebrations. The car was parked approximately 5 feet from the curb and the driver, Anthony D. Gordon, was on his cellphone trying to order food. When Gordon was asked to step from his car, one of the officers saw a handgun on the front seat where Gordon had been sitting. Gordon had prior felony convictions for assault and robbery. As a result of those convictions, he is prohibited from possessing firearms.
The case was investigated by the Omaha Police Department.
Olney Man Sentenced to Three Years in Federal Prison for Wire FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge George J. Hazel sentenced Mehlek Dawveed, age 51, of Olney, Maryland to three years in prison, followed by three years of supervised release, for wire fraud stemming from the filing of fraudulent tax returns, in which he received one fraudulent refund of more than $970,000.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Acting Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service – Criminal Investigation.
According to his plea agreement, in March 2011, Dawveed filed a fraudulent income tax return for 2010 that resulted in him receiving a refund in the amount of $977,558. For Dawveed to receive the funds, the IRS wired the money from a bank in Kansas City, Missouri to Dawveed’s account in Maryland.
Using part of the fraudulently obtained funds, Dawveed paid the remaining $83,837 balance on the mortgage for his residence in Olney, Maryland and deposited a $250,000 check into a bank account controlled by Dawveed’s wife. Dawveed wrote several other checks into accounts controlled by him or close associates and wrote checks to various individuals and family members and for his own personal expenses.
Subsequently, on February 18, 2012, Dawveed filed a fraudulent income tax return for 2011 in which he requested a refund in the amount of $1,324,961. This falsely requested refund was not issued. On February 27, 2012, Dawveed then filed a 2010 Form 1040X, Amended U.S. Individual Income Tax Return, in which he changed his taxable interest income from $1,486,902 to $0 and stated: “we now beckon you to accept our humblest apology for the ‘Unintentional Errors’ made during our 1040 filing for Tax Year 2010 for they were not done with ‘Malicious Intent.’” The form falsely stated: “In ‘Good Faith’ we submitted a Payment of $5,000,000 Million Dollars to the IRS on January 31, 2012 in hopes of settling the remaining ‘Debt’ from our 1040 Tax Filing for Year 2010.” No such $5,000,000 payment was ever made.
Judge Hazel also ordered a forfeiture and restitution order in the amount of $788,991. Dawveed was also ordered to forfeit his Olney residence, the mortgage for which he paid off with the fraudulent tax refund money.
United States Attorney Robert K. Hur commended the IRS for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Sean R. Delaney and Kelly O. Hayes, who are prosecuting the case.
Nurse Practitioners Arrested and Indicted for Unlawful Distribution of Prescription Opioids and Health Care FraudRead the Press Release
LAS VEGAS, Nev. – Three Southern Nevada residents, including two nurse practitioners, have been arrested and charged in a 29-count indictment for unlawful distribution of prescription opioids and Medicare/Medicaid fraud, announced U.S. Attorney Dayle Elieson for the District of Nevada.
The defendants were arrested this morning and had their initial court appearance before U.S. District Magistrate Judge George Foley Jr. A jury trial has been set for July 30, 2018. The defendants and their criminal charges in the indictment are:
• Robert D. Harvey, a surgical technician, 45, of Henderson, is charged with one count of conspiracy to distribute a controlled substance, three counts of distribution of controlled substance, and one count of conspiracy to commit health care fraud;
• Alejandro “Alex” Incera, aka Alexander Jiminez-Incera, an Advance Practice Registered Nurse, 48, of Las Vegas, is charged with one count of conspiracy to distribute a controlled substance, three counts of distribution of controlled substances, eight counts of distribution of controlled substances, one count of conspiracy to commit health care fraud, eight counts of health care fraud, one count of fraudulent concealment involving a federal health care program, and one count of false statements relating to a health benefit program; and
• Leslie Kalyn, aka Leslie Feth, an Advance Practice Registered Nurse, 35, of Las Vegas, is charged with one count of conspiracy to commit health care fraud and six counts of health care fraud.
According to the allegations contained in the indictment, the defendants engaged in a conspiracy to distribute prescription opioids and to commit health care fraud. Incera and Harvey, using a prescription pad belonging to an unnamed physician, distributed Hydrocodone and Oxycodone to patients without a legitimate medical purpose in exchange for cash. Incera and Kalyn further prescribed Lidocaine, Modafinil, and Diclofenac Sodium to patients without a legitimate medical purpose, many of which were billed to Medicare/Medicaid by a pharmacy that filled the prescriptions. Harvey, Incera, and Kalyn were all paid cash kickbacks for their patient referrals to the unnamed pharmacy.
The maximum penalty is five years in prison and a $250,000 for each count of conspiracy to distribute a controlled substance, distribution of a controlled substance, and false statements relating to a health benefit program charges, and the maximum penalty is 10 years in prison and a $250,000 fine for each count of health care fraud and fraudulent concealment involving a federal health care program.
An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case is being investigated by the FBI, the Office of Inspector General of the U.S. Department of Health and Human Services, and the Nevada Attorney General’s Office Medicaid Fraud Control Unit. Assistant U.S. Attorney Kilby Macfadden is prosecuting the case.
This is the third indictment in Nevada since Attorney General Jeff Sessions announced the formation of the Opioid Fraud and Abuse Detection Unit, a program that utilizes data to help combat the devastating opioid crisis. The District of Nevada was selected as one of 12 districts nationally to participate in the pilot program. The District of Nevada has assigned a prosecutor that focuses solely on investigating and prosecuting health care fraud related to medical professionals who prescribe opioids, that unlawfully divert of dispense prescription opioids for illegitimate purposes.
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North Carolina Tax Return Preparer Indicted for Conspiring to File False Tax ReturnsRead the Press Release
A federal grand jury has returned an indictment, which was unsealed today, charging a Winston-Salem resident with conspiring to file false tax returns, aiding and assisting in the preparation of false tax returns, and filing a false personal tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G. T. Martin for the Middle District of North Carolina.
According to the indictment, Claudia Lynette Shivers conspired with others to defraud the government by preparing false tax returns. Shivers allegedly co-owned and operated two tax return preparation businesses: Fast Tax of Winston-Salem, Inc. in Winston-Salem and Quick Taxes LLC in Greensboro. The indictment alleges Shivers falsified items on her clients’ tax returns, such as dependents and Schedule A deductions, in order to fraudulently maximize their refunds and allegedly directed her clients to hand-write false information on tax forms and other documents used in the preparation of their returns. The indictment further charges Shivers with aiding and assisting in the preparation of false tax returns for several clients, as well as filing a false 2014 tax return for herself on which she is alleged to have failed to report all of her income.
If convicted, Shivers faces a statutory maximum sentence of five years in prison for conspiracy, three years in prison for each count of preparing false tax returns, and three years in prison for the count related to her own tax return. She also faces a period of supervised release, restitution and monetary penalties. An indictment is an accusation. A defendant is presumed innocent until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin thanked special agents of IRS Criminal Investigation, who conducted the investigation, Tax Division and Trial Attorney Robert J. Boudreau and Criminal Division Chief Clifton T. Barrett of the Middle District of North Carolina, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New York Man Arrested and Charged with Extensive Cyberstalking CampaignRead the Press Release
A New York man was arrested today and charged in U.S. District Court in the Southern District of New York with conducting an extensive cyberstalking and threats campaign that targeted a woman he dated for several months in 2013 and 2014. The victim’s name is being withheld to protect her privacy.
Acting Assistant Attorney John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Geoffrey S. Berman of the Southern District of New York made the announcement.
David Waldman, 50, of New York, New York, was charged in a criminal complaint with one count of cyberstalking and two counts of sending interstate threats. Waldman will have his initial court appearance later today before U.S. Magistrate Judge Sarah Netburn in courtroom 5A in U.S. District Court in Manhattan.
According to the affidavit in support of the complaint, Waldman is charged with engaging in an extensive cyberstalking campaign targeting a woman he briefly dated. The campaign began in April 2014, shortly after Waldman and the victim ended their relationship, and continued intermittently until the date of Waldman’s arrest. Over the course of almost four years, Waldman sent the victim hundreds of text messages, voicemail messages, and e-mail messages, and made voluminous posts on a variety of online platforms, in which he claimed, among other assertions, that she had been diagnosed with bipolar and narcissistic personality disorder, used drugs, and fabricated claims that she had been a victim of child sexual abuse. In his online communications, Waldman also repeatedly threatened to show up at the victim’s apartment and office and threatened to injure, torture, and sexually assault her. Waldman also sent email messages to the victim’s employers, accusing her of being a “habitual drug user” and claiming that he would sue her for defamation, theft, illegal trespass, violating HIPAA, and engaging in other “illegal behaviors.”
Over the course of the alleged cyberstalking campaign, the victim obtained multiple state court orders of protection against Waldman.
The case was investigated by special agents with the U.S. Attorney’s Office for the Southern District of New York. Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Nicholas Chiuchiolo of the Southern District of New York are prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New York Man Arrested and Charged with Extensive Cyberstalking CampaignRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and John P. Cronan, Acting Assistant Attorney General for the Criminal Division, announced that DAVID WALDMAN was arrested today and charged with conducting an extensive cyberstalking and threats campaign that targeted a woman he dated for several months in 2014. WALDMAN will be presented this afternoon before U.S. Magistrate Judge Sarah Netburn in Manhattan federal court.
As alleged in the Complaint unsealed today in Manhattan federal court[1]:
Beginning in April 2014 and shortly after WALDMAN and the victim ended their relationship, WALDMAN began an extensive cyberstalking campaign that continued intermittently until the date of WALDMAN’s arrest. Over the course of almost four years, WALDMAN sent the victim hundreds of text messages, voicemail messages, and email messages, and made voluminous posts on a variety of online platforms, in which he claimed, among other assertions, that she had been diagnosed with bipolar and narcissistic personality disorder, used drugs, and fabricated claims that she had been a victim of child sexual abuse. In his online communications, WALDMAN also repeatedly threatened to show up at the victim’s apartment and office and threatened to injure, torture, and sexually assault her. WALDMAN also sent email messages to the victim’s employers, accusing her of being a “habitual drug user,” and claiming that he would sue her for defamation, theft, illegal trespass, violating HIPAA, and engaging in other “illegal behaviors.”
Over the course of the alleged cyberstalking campaign, the victim obtained multiple state court orders of protection against WALDMAN.
* * *
WALDMAN, 50, of Inwood, New York, is charged with one count of cyberstalking, which carries a maximum sentence of five years, and one count of sending interstate threats, which carries a maximum sentence of five years.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the Special Agents with the United States Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Nicholas Chiuchiolo and Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Native of Mexico Pleads Guilty to Illegally Re-Entering the United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Juan Felix Andres, 20, of Mexico, pleaded guilty to illegal reentry after deportation following conviction of an aggravated felony before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that on April 16, 2016, the defendant was convicted in Texas of aiding and abetting the transportation of illegal aliens for financial gain, an aggravated felony. Following that conviction, Andres was ordered removed to Mexico from the United States.
On February 27, 2018, while an order of removal was still in effect, the defendant was found in the United States at the Lewiston Bridge Port of Entry in Lewiston, NY. An automated scan of the defendant’s fingerprints were obtained for comparison and matched the fingerprints on file with the FBI and confirmed that Andres was the same person who was convicted in Texas. The defendant did not obtain the consent of the Attorney General of the United States or his successor, the Secretary for Homeland Security, to re-enter the United States.
Today’s plea is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
Sentencing is scheduled for September 7, 2018, at 12:30 p.m. before Judge Richard J. Arcara.
Native of Mexico Charged with Illegally Re-Entering the United States and Possessing Counterfeit DocumentsRead 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 Everardo Donoteo-Reyes, a/k/a, Alberto Ebarado Gutierrez-Reyes, 26, of Mexico, was charged by criminal complaint with possession of a counterfeit social security card and alien registration card, and illegal re-entry after deportation. The charges each carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that according to the complaint, in September 2016, Immigration and Customs Enforcement, Enforcement and Removal Operations (ERO), administratively arrested the defendant in Gretna, Louisiana and in October 2016, he was ordered removed from the United States. Upon his departure, Donoteo-Reyes was advised that he could not re-enter the United States without the permission of the United States Attorney General, or his Successor, the Secretary of Homeland Security.
On March 01, 2017, United States Border Patrol the defendant in the United States and administratively arrested him in Laredo, Texas. On March 03, 2017, Donoteo-Reyes pleaded guilty to unlawfully entering the United States and was sentenced to 15 days confinement. On March 15, 2017, the defendant was physically removed from the United States to Mexico. Donoteo-Reyes was once again advised that he could not re-enter the United States without permission.
On May 24, 2018, the defendant was arrested by the Wayne County Sheriff’s Office on New York State criminal charges. The sheriff’s office sent Donoteo-Reyes’s fingerprints to Immigration and Customs Enforcement (ICE). An immigration records check determined that the defendant has no valid immigration status and is again illegally present in the United States.
During the course of a missing person investigation, the Wayne County Sheriff's Office located fraudulent documents belonging Donoteo-Reyes, including a counterfeit alien registration card in the name "Alberto Gutierrez" and a photograph of the defendant. Donoteo-Reyes was also found to be in possession of a fraudulent social security card. According to the Department of Homeland Security, no such social security number exists.
The defendant will make an initial appearance on June 4, 2018, at 3:00 p.m. before U.S. District Judge Jonathan W. Feldman.
The complaint is the result of an investigation by agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Monmouth County, New Jersey, Man Sentenced to 10 Years in Prison for Illegally Possessing Firearm During Drive-By ShootingRead the Press Release
TRENTON, N.J. – An Asbury Park, New Jersey, man was sentenced today to 10 years in prison for being a felon in possession of a firearm while serving as the driver in a drive-by shooting in Asbury Park, U.S. Attorney Craig Carpenito announced.
Roosevelt Dante Harris, 39, of Asbury Park, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of being a felon in possession of a firearm. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Harris admitted that despite having one or more prior felony convictions in Monmouth County, he knowingly possessed a Taurus, model PT709 Slim, 9 mm pistol on Nov. 24, 2016, in Asbury Park. Harris admitted that three days earlier he accompanied another individual to a firearms dealer in South Carolina, where the other individual purchased three firearms –including the Taurus pistol that Harris possessed – on Harris’ behalf. Harris transported the three firearms from South Carolina to New Jersey.
Harris admitted that on Nov. 24, 2016, while he was driving a black minivan in Asbury Park, he possessed the Taurus pistol, which was located behind the glove compartment of the black minivan. Harris admitted that another individual shot a firearm out of the black minivan while Harris was driving.
In addition to the prison term, Judge Sheridan sentenced Harris to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge John B. Devito in Newark, New Jersey; officers of the Monmouth County Prosecutor’s Office, under the direction of Monmouth County Prosecutor Christopher J. Gramiccioni; and officers of the Asbury Park Police Department, under the direction of Deputy Chief David Kelso, with the investigation. U.S. Attorney Carpenito also thanked officers of the Lakewood Police Department, under the direction of Chief Gregory Meyer, for their assistance in the case.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Andrea D. Bergman Esq., Assistant Federal Public Defender, Trenton
Milan Man Sentenced to 84 Months Imprisonment for Defrauding Medicare, Medicaid and TricareRead the Press Release
Jackson, TN – Following his conviction at trial by a federal jury of conspiracy and wire fraud, Bryan Bailey, 39, of Milan, Tenn. was sentenced by Chief United States District Judge S. Thomas Anderson to 84 months imprisonment, followed by three years of supervised release, and a $200 special assessment. Bailey was also order to pay more than $1.9 million in restitution to Medicare, Medicaid and private insurance companies.
Bryan Bailey was convicted following more than three weeks of trial in February 2018 of both counts charging him in the indictment. His mother, Sandra Bailey, 67, of Jackson, was convicted of 16 counts, including conspiracy, health care fraud, and paying illegal kickbacks in connection with health care services. His father, Calvin Bailey, 67, of Jackson, was convicted of conspiracy. The jury returned guilty verdicts on all 17 counts alleged in the indictment.
U.S. Attorney D. Michael Dunavant said: "Dishonest criminals are using more creative and disturbing fraudulent schemes to victimize vulnerable citizens and the American taxpayers for their own selfish gain. This case represents our commitment to expose these fraudulent schemes, protect the integrity of the Medicaid system, hold offenders accountable for their dishonest criminal conduct, and to recover ill-gotten proceeds on behalf of the government. The U.S. Attorney’s Office is willing and able to go to any lengths in our pursuit of justice in healthcare fraud cases."
Evidence at trial revealed Sandra Bailey and Calvin Bailey sold durable medical equipment including power wheelchairs and back braces. From November 2009 to September 2011, they were both employed at Jaspan Medical Systems ("JMS"), a durable medical equipment company with an office in Jackson, Tenn. Durable medical equipment is designed for repeated use and legitimate medical purposes. Following their employment at JMS, the couple was employed by other medical supply companies in West Tennessee, Kentucky, and Mississippi. Calvin Bailey is also the former principal at Medina Elementary School in Medina, Tenn. Bryan Bailey, was the operations and sales manager at Jaspan from October 2009 to July 2013.
While employed at JMS, the Baileys began to market wheelchairs to patients and represented them as paid fully by Medicare, and at no cost to the patients. To market the equipment, the Baileys used an extensive network of illegally paid recruiters to find eligible patients. After finding the patients, Sandra and Bryan Bailey would forge and falsify documents to make it appear that the patients qualified for the equipment. They also enlisted a local physician and nurse practitioner to order the equipment without the required physical examinations to determine if the equipment was medically necessary. To facilitate this scheme, Sandra Bailey paid illegal kickbacks to the medical providers.
Numerous patients testified that Sandra Bailey offered the equipment at no cost, and that they never saw the doctor or nurse practitioner before the Baileys delivered the back braces and power wheelchairs. Many also testified that they never used the power wheelchairs, and that the power wheelchairs were too large to be used in their homes. Even though most of the patients could walk, drive vehicles, and care for themselves without the need for a power wheelchair, the Baileys would falsify medical records to make it appear that the patients were qualified. In order to qualify the patients to receive the equipment at no cost, Bryan Bailey falsified and directed others to falsify patients’ income and expenses to make it appear that they were indigent.
"Kickbacks pervert medical decision-making by encouraging health care providers to order things that patients do not need," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of the Inspector General in Atlanta. "This defendant pushed the sale of expensive power wheelchairs by paying patient recruiters and others which was a blatant violation of the law."
In 2010, Bryan Bailey expanded JMS’s sales into North Mississippi, and hired a sales representative named Dennis Sensing to sell power wheelchairs. Sensing paid illegal kickbacks to patient recruiters to find Medicare and Medicaid patients under the direction of Bryan Bailey. Bryan Bailey received sales commissions for the power wheelchairs sold by Sensing. In order to bill Medicare and Medicaid for the equipment, Sensing forged the signature of a nurse practitioner with Bryan Bailey’s knowledge and approval. Bryan Bailey directed Sensing to falsify patients’ income and expenses to make it appear that they were indigent. Sensing sent via facsimile the forged and falsified documents to Bryan Bailey, who caused the claims to be submitted for payment. Sensing, who previously had pleaded guilty to conspiracy to commit healthcare fraud and pay illegal kickbacks, testified in the government’s case.
During the time the Baileys worked at JMS and the other companies, they received more than $1.2 million in salary and sales commissions. Chief Judge Anderson found the 84-month sentence warranted because the American taxpayers were victimized by the fraudulent behavior of Bryan Bailey and the other defendants.
Sandra Bailey and Calvin Bailey are scheduled to be sentenced on August 3, 2018 before Chief Judge Anderson.
"Protecting taxpayer dollars is the heartbeat of the Tennessee Bureau of Investigation’s Medicaid Fraud Control Unit," said TBI Acting Director Jason Locke. "Working alongside our local, state, and federal partners, we will continue to pursue those who are defrauding the Medicaid system and taking advantage of vulnerable Tennesseans in need of these services."
"Health care fraud drives up health care costs, wastes taxpayer money, undermines the Medicare, Medicaid and Tricare programs, and sadly, has infected every facet of our health care system," said Michael T. Gavin, Special Agent in Charge of the Memphis Field Office of the Federal Bureau of Investigation. "Health care fraud is a crime that hurts all of us and each dollar taken from programs that help the sick and the suffering is one dollar too many. The FBI is committed to fighting fraud and protecting taxpayer dollars, and with our law enforcement partners we will continue to identify and investigate the criminals who, driven by greed, target the systems each of us depends on in our most vulnerable moments."
"We always appreciate the opportunity to work with multi-state law enforcement agencies to combat healthcare fraud and protect our citizens’ resources and tax dollars," said Jim Hood, Attorney General of Mississippi.
This investigation was conducted by the U.S. Department of Health and Human Services - Office of the Inspector General, the Federal Bureau of Investigation, the Tennessee Bureau of Investigation, and the Attorney General’s Office for Mississippi.
Assistant U.S. Attorneys Stuart Canale and Matt Wilson prosecuted this case on behalf of the government.
Mexican Man Pleads Guilty to Illegal Use of a Social Security NumberRead the Press Release
ADRIAN CONTRERAS-VARELAS, age 18, a citizen of Mexico pleaded guilty today to a one-count indictment for illegal use of a Social Security number, in violation of Title 42, United States Code, Section 408(a)(7)(B).
According to court documents, CONTRERAS-VARELAS used a Social Security number, which was not assigned to him by the Social Security Administration, to register for a safety training course that he was required to complete before he could work for an insulation contractor.
CONTRERAS-VARELAS’s sentencing immediately followed his guilty plea. United States District Judge Jane Triche Milazzo sentenced him to time served.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Marijuana Dealer Sentenced to Federal Prison for Possessing Sawed-Off ShotgunRead the Press Release
A Waterloo man who illegally possessed a sawed-off shotgun was sentenced on May 31, 2018, to more than two years in federal prison.
Traeves Dashonn Bowers, age 33, from Waterloo, Iowa, received the prison term after a December 27, 2017, guilty plea to possessing an unregistered sawed-off shotgun.
In a plea agreement, Bowers admitted that during March 2017, he was selling marijuana from his home on Shilliam Avenue in Waterloo. Waterloo Police searched his Shilliam Avenue residence that month and found over 26 grams of marijuana, a sawed-off shotgun, and a rifle.
Bowers was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Bowers was sentenced to 30 months’ imprisonment. He must also serve a two‑year term of supervised release after the prison term. There is no parole in the federal system.
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.
Bowers is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department and was prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-02081-LTS.
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Managing Partner and Principal of Accounting Firm Charged with Aiding and Abetting Union Embezzlement Scheme and Making False Filings with the U.S. Department of LaborRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Michael C. Mikulka, Special Agent-in-Charge, New York Region, U.S. Department of Labor (“DOL”) Office of Inspector General, announced today the arrests of SALVATORE ARMAO, the founder and managing partner of an accounting firm (the “Firm”), and KAREN AUER, a principal at the Firm, for aiding and abetting the embezzlement of over $100,000 from a labor union (the “Union”) and its employee welfare benefit plan (the “Plan”), and for making false filings with DOL to conceal the embezzlement scheme. AUER was also charged with making false statements to a DOL agent during the investigation of the embezzlement scheme. Both defendants surrendered this morning in Manhattan and are expected be presented today before U.S. Magistrate Judge Sarah Netburn.
U.S. Attorney Geoffrey S. Berman said: “Salvatore Armao and Karen Auer are professional accountants who allegedly facilitated and concealed a long-running union embezzlement scheme by knowingly submitting false filings with the Department of Labor and the Internal Revenue Service. Accountants and auditors like Armao and Auer are supposed to serve as safeguards against labor fraud, not facilitate it.”
DOL-OIG Special Agent-in-Charge Michael C. Mikulka said: “The Office of Inspector General is responsible for identifying and reducing labor racketeering and corruption in employee benefit plans, labor-management relations, and internal union affairs. We will continue to work with our law enforcement partners to investigate these types of allegations.”
According to the allegations in the Complaint[1]:
From at least in or about 2010 through in or about 2014, the president of the Union, who also served as a trustee of the Plan (the “President-Trustee”), repeatedly used Union funds to pay for his personal expenses, including payments for spa treatments, a gym membership, a second car, medical charges, unrelated union dues for an actors’ union, purchases from retail establishments, payments to personal credit cards, and ATM cash withdrawals. The President-Trustee used his Union credit card to pay for personal expenses and then “reimbursed” the Union with funds transferred from the Plan. In total, the President-Trustee embezzled over $100,000 from the Union over approximately three years.
During the period of the embezzlement, the Firm served as the accountant and auditor for the Union and the Plan. To facilitate and conceal the President-Trustee’s embezzlement, ARMAO and AUER falsely classified as “loans” the personal expenses for which the President-Trustee paid using Union and Plan funds in accounting records and on DOL filings for the Union. ARMAO falsely classified the President-Trustee’s personal expenses as loans for at least five years, while AUER did so for at least one year. ARMAO and AUER also provided false information on DOL filings for the Plan, concealing from DOL the President-Trustee’s prohibited transfers of tens of thousands of dollars from the Plan to the Union which, in turn, facilitated and concealed the President-Trustee’s use of Union funds to pay his personal expenses. ARMAO repeatedly caused these false filings to be made to DOL despite being a Certified Fraud Examiner.
During the DOL’s investigation of the embezzlement scheme, ARMAO and AUER were interviewed by DOL. ARMAO admitted that he was aware of the President-Trustee’s use of Union assets to pay for personal expenses based upon his review of records that showed that the President-Trustee used Union funds to pay for his family vacations and his wife’s car payments, and then used the Plan to reimburse the Union. During her interview, AUER lied about a false response on a DOL form that AUER and ARMAO caused to be filed with the DOL.
* * *
SALVATORE ARMAO, 64, of Howard Beach, New York, and KAREN AUER, 47, of Bethpage, New York, are each charged with one count of aiding and abetting embezzlement from a labor organization, one count of conspiracy to make false statements in employee benefit plan records and reports, and one count of making false statements in employee benefit plan records and reports. AUER is also charged with making false statements to a federal agent. Each of the four counts carries a maximum sentence of five years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman thanked the DOL’s Office of Inspector General, Employee Benefits Security Administration, Office of Chief Accountant, and Office of Labor-Management Standards for their outstanding work on this investigation. Mr. Berman also expressed gratitude to the Federal Bureau of Investigation and the Department of Justice’s Labor-Management Racketeering Unit of the Organized Crime and Gang Section for their assistance. Mr. Berman added that the investigation is continuing.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Man Sentenced to Prison for Child PornographyRead the Press Release
ALEXANDRIA, Va. – A Fairfax man was sentenced today to five years in prison for downloading videos depicting the sexual abuse of children.
According to court documents, Gabriel Lin, 25, used a peer-to-peer file-sharing network to search for and download child pornography videos. Lin also stored more than 600 videos and 10,000 images of children being sexually abused on electronic devices in his residence. Some of this material depicted children as young as infants and toddlers.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Special Assistant U.S. Attorney Kyle P. Reynolds prosecuted 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-278.
Man Admits to String of Armed Robberies in Hampton RoadsRead the Press Release
NORFOLK, Va. – A Norfolk man pleaded guilty yesterday to armed robbery and firearms charges in relation to his participation in several armed robberies in Hampton Roads.
According to court documents, Lorenzo E. Roscoe, 30, admitted to committing armed robberies of two Dollar General stores, two 7-Eleven stores and one Family Dollar store located in Norfolk, Chesapeake and Portsmouth.
Roscoe pleaded guilty to Hobbs Act robbery and brandishing a firearm during a robbery. He faces a mandatory minimum sentence of 7 years in prison and a maximum sentence of life when sentenced on September 6. 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 Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Assistant U.S. Attorney William D. Muhr 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. 2:18-cr-57.
Maine Man Pleads Guilty to Resisting Federal OfficerRead the Press Release
BOSTON – A Maine man pleaded guilty today in federal court in Springfield to resisting a federal officer.
Thomas G. Walker, 43, of Pemaquid, Maine, pleaded guilty to one count of resisting a federal officer. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Dec. 12, 2018. Walker has been in custody since his arrest on June 30, 2017, for his role in a federal drug conspiracy.
On July 24, 2017, Walker was brought to federal court in Worcester for a hearing to determine whether he should be held in custody while facing a pending drug charge. Walker was brought into the courtroom by two Deputy U.S. Marshals (“Marshals”) and a corrections officer. Walker’s handcuffs were removed, and he was seated next to his attorneys. While waiting for the judge, Walker turned around and began speaking with a relative in the courtroom gallery. The Marshals directed Walker to face forward and stop speaking with anyone in the gallery. Walker stood up and challenged the Marshals, saying: “Who the ** are you?” and “What the ** are you going to do to me?” The Marshals and the corrections officer approached Walker to restrain him. Walker swung at one of the Marshals and missed. He swung a second time with his open hand and hit the Marshal in the face. Walker’s resistance resulted in all four individuals going down to the floor in a scuffle. Eventually the Marshals, the officer, and a courtroom security officer were able to gain control of Walker, handcuff him, and remove him from the courtroom.
The charge provides for a sentence of no greater than eight years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; U.S. Marshal John Gibbons for the District of Massachusetts; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.
Mableton man charged in “sextortion” of young girlsRead the Press Release
ATLANTA - Benjamin Jenkins, a/k/a “Rei,” a/k/a “Reithe8th,” a/k/a “Dani Domo,” has been arraigned on federal charges for producing and distributing child pornography after he allegedly lured more than 100 young girls into sending him explicit photographs and videos. In retaliation against the girls who opposed his demands, Jenkins made violent threats against the victims, posted pornographic pictures of them on social media, and sent sexually-explicit photos to their friends and family.
“Jenkins allegedly used various social media sites to lure young girls into sending him child pornography,” said U.S. Attorney Byung J. “BJay” Pak. “He is accused of acting as a predator who terrorized his young victims by threatening to post their photographs online, unless they sent him more sexually-explicit videos and pictures. Parents and children should continually be aware of the masked dangers predators pose on social media.”
“Homeland Security Investigations will continue to fight child sexual exploitation as one of its highest priorities and will track any individual who chooses to prey on the most vulnerable in our society with every tool at our disposal,” said Atlanta Homeland Security Investigations Special Agent in Charge Nick S. Annan. “This case should also serve as a reminder to all that online predators are always searching for new victims.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Beginning in 2015, Jenkins allegedly used different identities to contact girls between the ages of 12 and 16 years. To lure the girls, he would send them a pornographic photo and persuade them to send a sexually-explicit photo of themselves in return. After a girl sent him a photo, Jenkins would threaten her into sending him more photos and videos. Jenkins instructed the girls on what body parts to show, what poses to make, and what objects to insert into their bodies. Jenkins further humiliated his victims by coercing them to send him videos of them drinking their own urine or licking toilets. He also forced his victims to watch him masturbate.
When a girl blocked Jenkins online, he sent her explicit photos to her parents and friends. On one occasion, he posted a compromising photo of a girl to her high school Twitter page. Jenkins also posted his victim’s nude photos and contact information online with messages for men to contact the girls directly for more photos. In total, Jenkins sextorted more than 100 girls.
Benjamin Jenkins, a/k/a “Rei,” a/k/a “Reithe8th,” a/k/a “Dani Domo,” 23, of Mableton, Georgia was charged with 13 counts of producing child pornography and five counts of distributing child pornography. Jenkins was indicted by a federal grand jury on May 23, 2018. The court ordered that Jenkins be kept in custody until trial.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Division.
Assistant U.S. Attorneys Paul R. Jones and L. Skye Davis are prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Louisiana Contractor Pleads Guilty to Filing a False Tax ReturnRead the Press Release
The owner of general contracting business pleaded guilty yesterday to filing a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Duane A. Evans, for the Eastern District of Louisiana.
According to court documents, Wade Ybarzabal, of Mandeville, Louisiana, owned a general contracting business, Ybarzabal Contractors LLC. On his 2012 tax return, Ybarzabal underreported his business’s gross receipts by more than $475,000, resulting in an additional tax liability of more than $160,000. Ybarzabal also underreported his business’ gross receipts on his 2013 and 2014 tax returns. The total tax loss resulting from Ybarzabal’s fraudulent conduct for is more than $250,000.
Sentencing is scheduled for August 29, 2018. Ybarzabal faces a statutory maximum sentence of three years in prison. He also faces a term of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Duane A. Evans commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Edward J. Rivera and Tax Division Trial Attorney Grace E. Albinson, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Kansas Tax Return Preparer Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
A Holcomb, Kansas tax return preparer was sentenced yesterday to 21 months in prison for filing a fraudulent income tax return and aiding and assisting in the preparation of fraudulent tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Stephen R. McAllister for the District of Kansas.
According to documents and information provided to the court, Marcelino Almaraz owned Accounting Services, a business that provided tax preparation services. Almaraz fraudulently sought to obtain refunds for individuals by including false filing statuses such as head of household and adding phony dependents in an effort to trigger and inflate child tax credits. Almaraz also falsified his own income tax returns for 2010 and 2011 by underreporting his income.
In addition to the term of imprisonment, Chief U.S. District Court Judge Julie A. Robinson ordered Almaraz to serve one year of supervised release and to pay $397,552 in restitution to the Internal Revenue Service.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney McAllister commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney John T. Mulcahy and Assistant U.S. Attorney Jabari Wamble, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Husband and Wife Charged with Fraud Scheme Relating to Nursing Services at A Bronx-Based HospitalRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced the unsealing of a Complaint charging BETSY MONTALVO and EDWARD GONZALEZ with a wire fraud conspiracy, wire fraud, and aggravated identity theft in connection with a fraudulent scheme to provide of nursing services at a Bronx-based hospital. Both defendants were arrested yesterday in New York and presented before United States Magistrate Judge Sarah Netburn in Manhattan federal court.
According to the allegations in the Complaint[1]:
MONTALVO and GONZALEZ were principals of a Bronx-based nursing company (“Nursing Company-1”) that provided temporary nursing services to client companies in the New York City area. From March 2015 to March 2017, one of Nursing Company-1’s clients was a Bronx-based hospital (“Hospital-1”), and Nursing Company-1 provided and scheduled registered and licensed practical nurses on a temporary basis to fill the staffing needs of Hospital-1.
As alleged in the Complaint, in May 2015, a factoring company (“Factoring Company-1”) entered into a contractual relationship with Nursing Company-1 to purchase Nursing Company-1’s accounts receivable (invoices) owed to it by Hospital-1. The Complaint alleges that MONTALVO, GONZALEZ, and a co-conspirator not named as a defendant in the Complaint engaged in a scheme in which they presented to Factoring Company-1 false, fraudulent, and inflated invoices that did not reflect the nursing services for Hospital-1 that had been performed by Nursing Company-1. In some instances, the identities of nurses who performed no services for Nursing Company-1 or Hospital-1 were listed on the fraudulent invoices. Relying on the fraudulent invoices, Factoring Company-1 paid Nursing Company-1 a percentage of the fraudulent invoices.
The Complaint alleges that the attempted losses associated with the fraud scheme are $664,761.
* * *
MONTALVO, 49, and GONZALEZ, 47, both of Bronx, New York, are each charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years; one count of wire fraud, which carries a maximum sentence of 20 years; and one count of aggravated identity theft, which carries a mandatory minimum sentence of two years. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the Special Agents with the United States Attorney’s Office for the Southern District of New York.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Aline R. Flodr and Nicholas W. Chiuchiolo are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Howard Hoisington Sentenced to 24 Years in Prison in Fatal Arson CaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Howard Hoisington, age 34, formerly of Berlin, Vermont was sentenced on May 31, 2018 on charges of arson with death resulting and conspiracy to commit robbery stemming from the fatal arson that occurred in Northfield, Vermont in December 2015. United States District Judge Christina Reiss sentenced Hoisington to a 24-year term of incarceration, followed by five years of supervised release. Hoisington was also ordered to pay restitution to the victims of his offenses in the amount of $620,025.92.
As described at Hoisington’s sentencing and in court records, in the fall of 2015, Howard Hoisington, Jonathan Zampieri, Tammy Wilder, Kevin Atwood, and Kim Hoisington committed a series of robberies of drug dealers in the Washington County area of Vermont. Some of these robberies involved a scheme of dousing a person selling drugs with gasoline and threatening them with a lighter to rob them of their drugs. The last of these robberies resulted in a fire that destroyed a building in Northfield and killed innocent bystander Brittany Burt.
As also described at Hoisington’s sentencing and in court records, on December 14, 2015, Howard Hoisington, Zampieri, Tammy Wilder, Kim Hoisington, and Amanda Wilder drove in Zampieri’s vehicle to pick up Atwood in Montpelier. They all drove to the Cumberland Farms in Northfield where Zampieri filled two mason jars with gasoline. From there, the group drove to the apartment of Efren Serrano on Union Street in Northfield, Vermont, from whom they had arranged to purchase crack cocaine. Zampieri, Howard Hoisington, and Atwood went to Serrano’s apartment and kicked in the front door. They found Serrano and Serrano’s girlfriend, Brittany Burt, in the bedroom. Serrano and Burt were doused with gasoline and the men demanded Serrano’s drugs. When Serrano did not respond, Zampieri pulled out a lighter. The lighter went off, igniting the gasoline vapors and causing the room to burst into flames. Zampieri, Howard Hoisington, and Atwood fled the building. At some point, Serrano was able to run from the building on fire. Serrano sustained life threatening injuries, but he survived. Brittany Burt could not escape the building. She died on the bedroom floor.
Howard Hoisington’s co-defendants, Jonathan Zampieri, Tammy Wilder, Kim Hoisington, and Richard Hoisington have all pleaded guilty to various charges. They await sentencing.
This case provides an example of the United States Attorney’s Office Violent Crime Initiative, aimed at pursuing federal prosecutions involving the intersection of drug trafficking and violence. United States Attorney Christina Nolan commended the efforts of Vermont State Police, Vermont Drug Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as the Northfield Police Department, Barre City Police Department, and Berlin Police Department. The United States Attorney’s Office worked in partnership with the Washington County State’s Attorney Scott William to investigate and resolve this important matter.
United States Attorney Nolan added, “To describe this crime as senseless and abhorrent would be an understatement. It is a stark example of the horrific violence that too often arises from the trafficking of crack cocaine and other dangerous drugs. Federal prosecutors will work tirelessly with our federal, state, and local law enforcement partners to demonstrate zero tolerance for crimes of such depravity. Resolution and justice for the victims and their families was achieved through the collaborative efforts of our federal, state, and local investigators, and through the teamwork of state and federal prosecutors. We will continue to come together to achieve justice for victims, and peace and security for Vermonters. There is no place for such horrific violence in our state and our charging priorities will so reflect.”
ATF Assistant Special Agent in Charge Lawrence Panetta said, “Arson is a crime of extreme violence that puts the lives of the public and first responders in grave danger. ATF is committed with our local, state, and federal public safety partners to ensure our communities remain free from the dangerous acts arsonists commit and utilize all the necessary resources to bring these individuals to justice.”
“Howard Hoisington’s sentencing is an important first step in resolving this case and bringing closure to the Burt family and the other victims of these crimes,” added Lieutenant Todd Baxter of the Vermont State Police. “VSP remains committed to preventing and investigating violent crime throughout the State of Vermont, and bringing those who commit violent crimes to justice.”
Howard Hoisington is represented by Steven Barth and Elizabeth Quinn of the Federal Public Defender’s Office. The United States is represented by AUSAs Paul Van de Graaf and John Boscia.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Hot Springs Man Sentenced to Twenty Years for Attempted Enticement of Minor Using InternetRead the Press Release
United States Attorney Ron Parsons announced that a Hot Springs, South Dakota, man convicted of Attempted Enticement of a Minor Using the Internet was sentenced on May 25, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.
James Sides, age 32, was sentenced to 20 years of imprisonment and 20 years of supervised release and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Sides was charged on March 21, 2017. The charge relates to Sides communicating with someone he believed to be the father of a 14 year-old girl, who was in fact an undercover agent, and attempting to arrange a meeting in order to engage in sexual contact with the minor.
The case was investigated by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Honduran Man Who Planned to Detonate Explosive at Miami Mall Sentenced to 210 Months for Attempting to Provide Material Support to ISISRead the Press Release
Vicente Adolfo Solano, 53, a citizen of Honduras residing in Miami, was sentenced to 210 months in prison, to be followed by a lifetime of supervised release, for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, after planning to detonate an explosive device at a Miami mall. Solano pleaded guilty on March 14, 2018.
U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Assistant Attorney General for National Security John C. Demers, and Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office made the announcement after sentencing by U.S. District Judge Paul C. Huck.
“Any individual who plots to support a foreign terrorist organization puts our local community at risk and this threat remains a top priority for our U.S. Attorney’s Office and our law enforcement partners,” stated U.S. Attorney Greenberg. “Today’s sentence speaks to those who harbor extremist ideals – your terroristic agenda will be thwarted and your punishment of years in prison will be your only lasting legacy.”
“The efforts of the dedicated women and men of the FBI and the South Florida Joint Terrorism Task Force have kept the people of Miami safe from this ISIS supporter and ensured Solano will go to prison,” said Assistant Attorney General Demers. “I am grateful for our law enforcement partners, and I applaud our prosecutors for today’s successful outcome and the message it sends: we will not tolerate threats to our country or its people.”
"Solano dreamed of detonating an explosive device in a crowded Miami area mall, but he was denied his terroristic aspirations by the outstanding work and team effort of the South Florida Joint Terrorism Task Force,” said Special Agent in Charge Lasky. “This is a job well done by a group of professionals who must remain eternally vigilant.”
According to the stipulated factual basis filed with the Court, in early 2017, Solano told an individual, who later became a Confidential Human Source (CHS) for the government, that he was upset with the United States and wanted to conduct an attack in Miami. Later, Solano told this CHS that he wanted to join ISIS.
Solano planned to place and detonate an explosive device in a crowded area of a popular Miami mall. Solano discussed his plot with the CHS and two undercover FBI employees. According to the complaint, Solano provided three videos to the CHS, in which Solano makes pro-ISIS statements and expresses anti-U.S. sentiments. Just prior to his arrest, Solano took possession of what he believed was an explosive device, took steps to arm it, and walked toward a mall entrance in order to carry out his attack. Unbeknownst to Solano, the device was inert and did not pose a risk to the public. Solano was taken into custody prior to entering the Mall.
Judge Huck imposed a sentence below the statutory maximum recommended by the advisory sentencing guidelines and advocated by the government, noting that the defendant is currently in removal proceedings and will be returned to his native country of Honduras following his prison term. Solano had been residing in the United States under Temporary Protected Status. His protected status has since been revoked.
Mr. Greenberg commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force. This case was prosecuted by Assistant U.S. Attorney Karen E. Gilbert for the Southern District of Florida and Trial Attorney Jolie Zimmerman of the National Security Division’s Counterterrorism Section.
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.
Honduran Man Who Planned to Detonate Explosive at Miami Mall Sentenced to 210 Months for Attempting to Provide Material Support to ISISRead the Press Release
Vicente Adolfo Solano, 53, a citizen of Honduras residing in Miami, was sentenced to 210 months in prison, to be followed by a lifetime of supervised release, for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, after planning to detonate an explosive device at a Miami mall. Solano pleaded guilty on March 14.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, and Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office made the announcement after sentencing by U.S. District Judge Paul C. Huck.
“The efforts of the dedicated women and men of the FBI and the South Florida Joint Terrorism Task Force have kept the people of Miami safe from this ISIS supporter and ensured Solano will go to prison,” said Assistant Attorney General Demers. “I am grateful for our law enforcement partners, and I applaud our prosecutors for today’s successful outcome and the message it sends: we will not tolerate threats to our country or its people.”
“Any individual who plots to support a foreign terrorist organization puts our local community at risk and this threat remains a top priority for our U.S. Attorney’s Office and our law enforcement partners,” stated U.S. Attorney Greenberg. “Today’s sentence speaks to those who harbor extremist ideals – your terroristic agenda will be thwarted and your punishment of years in prison will be your only lasting legacy.”
“Solano dreamed of detonating an explosive device in a crowded Miami area mall, but he was denied his terroristic aspirations by the outstanding work and team effort of the South Florida Joint Terrorism Task Force,” said Special Agent in Charge Lasky. “This is a job well done by a group of professionals who must remain eternally vigilant.”
According to the stipulated factual basis filed with the Court, in early 2017, Solano told an individual, who later became a Confidential Human Source (CHS) for the government, that he was upset with the United States and wanted to conduct an attack in Miami. Later, Solano told this CHS that he wanted to join ISIS.
Solano planned to place and detonate an explosive device in a crowded area of a popular Miami mall. Solano discussed his plot with the CHS and two undercover FBI employees. According to the complaint, Solano provided three videos to the CHS, in which Solano makes pro-ISIS statements and expresses anti-U.S. sentiments. Just prior to his arrest, Solano took possession of what he believed was an explosive device, took steps to arm it, and walked toward a mall entrance in order to carry out his attack. Unbeknownst to Solano, the device was inert and did not pose a risk to the public. Solano was taken into custody prior to entering the Mall.
Judge Huck imposed a sentence below the statutory maximum recommended by the advisory sentencing guidelines and advocated by the government, noting that the defendant is currently in removal proceedings and will be returned to his native country of Honduras following his prison term. Solano had been residing in the United States under Temporary Protected Status. His protected status has since been revoked.
Mr. Demers and Mr. Greenberg commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force. This case was prosecuted by Assistant U.S. Attorney Karen E. Gilbert for the Southern District of Florida and Trial Attorney Jolie Zimmerman of the National Security Division’s Counterterrorism Section.