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Friday 1 June 2018
Four Years in Federal Prison for Corson County Man Convicted of Domestic Assault by an Habitual Offender and Tampering with VictimRead the Press Release
United States Attorney Ron Parsons announced today that a Corson County, SD, man was sentenced to 47 months of imprisonment and 3 years of supervised release by U.S. District Judge Roberto A. Lange. Alexander James Oka was sentenced to federal prison following his convictions by a federal jury in Aberdeen, SD, for Domestic Assault by an Habitual Offender and for Tampering with a Victim. Oka also served four additional months in tribal custody.
According to court documents and evidence produced at trial, on July 5, 2017, Oka unlawfully committed a domestic assault upon the victim, when at the time of the domestic assault, Oka had a final conviction of at least two separate prior occasions, for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse and intimate partner. During this assault, Oka smacked the victim’s head and then kicked the victim in the back while she was not looking and while she was feeding the baby she shares with Oka. The kick caused the victim significant pain and bodily injury. After being arrested for the assault, Oka sent a letter from jail to the victim instructing her not to cooperate and not to show-up for court proceedings. Oka had been previously convicted in multiple cases of domestic abuse. These prior convictions took place in tribal and federal court.
The investigation was conducted by the Bureau of Indian Affairs-Office of Justice Services. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Oka was immediately remanded to custody to continue serving his sentence.
Fort Collins Women Sentenced for Conspiring to Distribute Fentanyl Resulting in Three Overdose DeathsRead the Press Release
DENVER – Chelsea Leonowicz, 28, of Fort Collins, Colorado, was sentenced on today’s date to serve 100 months in federal prison following her August 23, 2017 entry of a guilty plea to Conspiracy to Distribute Fentanyl, a Schedule II Controlled Substance, the use of which resulted in death. The proceedings were held before U.S. District Judge Christine M. Arguello. Leonowicz’ guilty plea followed a February 2017 indictment with co-conspirator Jessica Rud, 29, also of Fort Collins, Colorado. Rud previously pled guilty to that same charge. In February of this year, she was sentenced to serve 121 months in the Federal Bureau of Prisons. Both sentences will be followed by a five-year term of federal supervised release.
Court documents indicate that fentanyl distributed by the co-conspirators resulted in the overdose death of one individual in Fort Collins on December 1, 2016. Days later, on December 3, 2016, two more individuals overdosed and died in Loveland, Colorado as a result of the continued distribution of that substance by Rud and Leonowicz. Although the drug was sold as “White China” heroin, in actuality it was almost 100% pure fentanyl.
Following their respective sentencing hearings, both defendants were remanded into the custody of the U.S. Marshal’s Service.
The investigation in this case was conducted by the Northern Colorado Drug Task Force, the Fort Collins Police Services (FCPS), the Loveland Police Department (LPD) and the Fort Collins Resident Agency of the Federal Bureau of Investigation. The prosecution was handled by Julia Martinez and Bradley W. Giles, Assistant U.S. Attorneys, District of Colorado, Denver.
Former Seattle Resident Sentenced to Prison for use of ‘Molotov Cocktail’ at May Day 2016 ProtestRead the Press Release
A former Seattle resident was sentenced today in U.S. District Court in Seattle to 37 months in prison for unlawful possession of a destructive device, in particular, for making and throwing bottles filled with gasoline at police officers on May 1, 2016, announced U.S. Attorney Annette L. Hayes. WIL CASEY FLOYD, 33, of Elkhart Lake, Wisconsin, was arrested in April 2017, after a lengthy investigation that linked him to a so-called ‘Black Bloc’ of protestors who threw unlit incendiary devices at Seattle Police during a May Day protest. At the sentencing hearing Chief U.S. District Judge Ricardo S. Martinez said it was an extremely serious crime. “Throwing gasoline filled bottles during a protest – there are all sorts of people out there, old people, young people … it could have caused serious injury or death.”
“This prosecution sends a clear message – we will not tolerate attacks on the women and men in law enforcement who do the hard work of keeping us all safe,” said U.S. Attorney Annette L. Hayes. “After all, the SPD officer who was injured by the defendant was protecting our cherished First Amendment rights. No matter the disguise – black bloc or otherwise – we will identify and hold to account those who cross the line from peaceful protest to criminal assault.”
According to the plea agreement and other records in the case, FLOYD went online to research building Molotov cocktails. He purchased the necessary supplies and constructed six of the explosive devices using beer bottles. He placed the bottles filled with gasoline in a black bag. FLOYD dressed in black, wore a black hood and a gas mask and joined the protest on the evening of May 1, 2016. FLOYD threw five of the unlit destructive devices at Seattle Police Officers. One of the Molotov cocktails thrown at police shattered at the feet of an officer and ignited his trousers when a flash-bang grenade went off. The officer suffered burns to his leg. FLOYD dropped the bag containing one remaining bottle of gasoline and changed his clothes and appearance before police could arrest him.
The investigation into FLOYD’s communications revealed that nearly two months prior to May Day, on March 8, 2016, Floyd sent a text message stating, “Kill them all with fire,” referring to SPD officers. Following the May Day attack FLOYD posted remarks online, ridiculing images of injured Seattle Police who were treated for injuries caused by “black bloc’ protestors.
In court today, FLOYD said that he had gone along with a group of people, and “realized it was a mistake, but there was no turning back… I never intended anyone to get hurt…. I’ll never do anything like this again.”
Chief Judge Martinez told FLOYD that “this country was founded by protest, it’s as American as apple pie… but there are limits, there are rules of law.” In addition to the prison time, Chief Judge Martinez imposed three years of supervised release following prison with 100 hours of community service to be completed during the first year of his release.
The case was investigated by the FBI’s Joint Terrorism Task Force and the Seattle Police Department, both through its membership on the JTTF and with additional investigative groups.
The case is being prosecuted by Assistant United States Attorneys Todd Greenberg and Tom Woods.
Former Roseville Developer Sentenced to over 4 Years in Prison for $22 Million FraudRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Abolghasseni “Abe” Alizadeh, 59, of Granite Bay, today to four years and eight months in prison, U.S. Attorney McGregor W. Scott announced. Alizadeh was also ordered to pay $15,879,945 in restitution to the victims of his crimes.
On January 12, 2018, Alizadeh pleaded guilty to wire fraud, bank fraud and making false statements to a federally insured financial institution.
According to court documents, Alizadeh, a Sacramento-area commercial real estate developer, restauranteur and owner of Kobra Properties, came up with a scheme to fraudulently purchase land that he planned to develop. Banks usually loan up to 60 to 65 percent of the loan to-value ratio (LTV) on undeveloped commercial property. (LTV ratio is the comparison between the amount of the loan and the value of the property.) To circumvent the banks and fraudulently get a higher level of financing, Alizadeh submitted altered purchase contracts to the banks that greatly inflated the purported purchase price. The banks, which competed for Alizadeh’s business, were unaware that the purchase prices were inflated and sometimes loaned well in excess of the loan-to-value ratio. By concealing the true purchase price from the banks, Alizadeh received substantial amounts of cash, sometimes millions of dollars, at the close of escrow and avoided making the full down payment or, in some instances, any down payment.
Alizadeh was assisted in this scheme by co-defendant Mary Sue Weaver, 64, currently of Scottsdale, Arizona and formerly of Lincoln, California, who was employed at a local title company. According to the plea agreement, Alizadeh would write checks for the down payment, but because he lacked funds to cover the checks, he would call Weaver and ask her to delay depositing the checks until after escrow closed. Once escrow closed, Weaver disbursed funds from the title company’s escrow trust account to Kobra Properties. Kobra Properties then used those funds to cover its down payment and other costs. In this way, it appeared as though Alizadeh was making a substantial down payment when in fact he was not.
On April 29, 2005, Alizadeh submitted a fraudulent purchase contract to Central Pacific Bank, which induced the bank to lend him nearly $4 million for the purchase of 10.3 acres of property. This loan represented over 96 percent loan-to-value ratio. Similarly, on October 21, 2005, Alizadeh received over $22 million in funding and loans to purchase the Turtle Island property, when in actuality, the original purchase price was $10 million. In March 2006, Alizadeh also falsely claimed to Bank of Sacramento that he was paying $36 per square foot for a piece of property where he intended to build a TGI Friday’s restaurant. In reality, Alizadeh was paying only $21 per square foot. This resulted in a $650,000 inflation of the true purchase price. Alizadeh’s entire scheme, involving no fewer than six properties in the Sacramento area, resulted in a loss to various financial institutions of over $22 million.
“The defendant used his reputation as a local business leader to perpetrate a complex fraud scheme to enrich himself at the expense of others,” stated U.S. Attorney Scott. “The U.S. Attorney’s Office will continue to work diligently with its law enforcement partners to expose schemes like this and bring criminals like the defendant to justice.”
“The scope of the fraud is staggering,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “As a well-known real-estate developer, title companies and banks competed for Mr. Alizadeh’s business. He submitted altered purchase contracts that greatly inflated the purchase price. This scheme cost financial institutions over $22 million. While this sentence cannot reverse the damage caused by Alizadeh and his co-defendant, it highlights the ongoing commitment of IRS-CI to hold accountable those involved
in these types of crimes.”“Today’s sentencing holds defendant Alizadeh accountable for causing more than $22 million in losses to the financial institutions, by corruptly inflating the value of property to obtain millions of dollars in fraudulent bank loans,” stated FDIC Inspector General Jay N. Lerner. “This case is a powerful example of law enforcement cooperation to combat fraud and bring such swindlers to justice.”
This case is the product of an investigation by the Federal Bureau of Investigation, the IRS Criminal Investigation, and the Federal Deposit Insurance Corporation, Office of Inspector General. Assistant U.S. Attorneys Michael D. Anderson and Heiko P. Coppola are prosecuting the case.
On December 15, 2017, Weaver pleaded guilty to one count of wire fraud and one count of bank fraud and is scheduled for sentencing on June 22, 2018. She faces a maximum statutory penalty of 30 years in prison on each count and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former North Carolina Physician Pleads Guilty to Drug Distribution, Health Care Fraud, and Aggravated Identity Theft ChargesRead the Press Release
CHARLOTTE, N.C. – R. Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced today that Dr. Michael Alson Smith, 65, a former Mt. Holly, N.C. family practice physician, appeared in federal court today and pleaded guilty to drug distribution, health care fraud, and aggravated identity theft charges, in connection with the illegal distribution of controlled substances to female patients in exchange for sex acts.
According to filed plea documents and today’s plea hearing, Dr. Smith was a licensed solo practitioner, who owned and operated Mt. Holly Family Practice, Inc., located in Mount Holly. In addition to practicing family medicine, Dr. Smith had sought and received approval from the Drug Enforcement Administration (DEA) to operate an office-based opioid treatment program, and treated a large number of patients with pain management and substance abuse issues.
According to court documents, from at least January 2017 to October 2017, Dr. Smith began to solicit sexual encounters from female patients whom he treated for pain management and/or substance abuse. In exchange for the encounters, Dr. Smith prescribed to those patients Schedule II, III, and IV controlled substances, including Percocet and Clonazepam (also known as Klonopin), among others. Dr. Smith admitted in court today that, during the relevant time period, he engaged in sexual encounters with at least seven female patients. Charging documents alleged that Dr. Smith used coercion to induce female patients to engage in sexual acts, including threatening to stop treatment and to stop prescribing medication.
During the same time period, Dr. Smith submitted fraudulent claims to, and received payment from, North Carolina Medicaid and Medicare, for non-existent medical services for the office visits in which he performed and received sex acts from female patients. Also, as a result of his illegal prescriptions, Dr. Smith caused some of these patients to submit claims to Medicaid and Medicare when they filled the prescriptions at area pharmacies.
The Honorable Robert J. Conrad, Jr. presided over Dr. Smith’s guilty plea. Dr. Smith was released on bond following today’s hearing. A sentencing date has not been set.
In making today’s announcement U.S. Attorney Murray commended the work of the DEA, the U.S. Department of Health and Human Services – Office of the Inspector General, the North Carolina State Bureau of Investigation, the North Carolina Medicaid Investigation Division, and the Mt. Holly Police Department for their investigation of this case.
Assistant United States Attorneys Kelli Ferry and Jenny Sugar of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
Former DPNR Officer Gerald Mercer found Guilty of Cocaine Smuggling Conspiracy at Cyril E. King AirportRead the Press Release
St. Thomas, USVI – Former Department of Planning and Natural Resources Officer Gerald Mercer, 43, was found guilty by a jury in federal court on Thursday, May 31, 2018, before District Judge Curtis Gomez of conspiracy to possess with intent to distribute not less than 50 and not more than 150 kilograms of cocaine, United States Attorney Gretchen Shappert announced today.
According to trial testimony provided by a former security officer at the Office of the Governor, Mercer was the mastermind of a large-scale drug trafficking organization that operated in the Virgin Islands from 2011 through 2016. In 2011, Mercer recruited the security officer and convinced him to use his law enforcement credentials to bypass security screening at Cyril E. King Airport in order to smuggle kilogram quantities of cocaine from St. Thomas to Miami and Fort Lauderdale. Once the cocaine arrived in Florida, Mercer directed the security officer to deliver his cocaine to a coconspirator for distribution in the continental United States at $33,000 per kilogram. Trial testimony also indicated that in 2014, the security officer and Florida coconspirator cut Mercer out of the organization, due to Mercer’s nonpayment of a $70,000 debt. Thereafter, members of the conspiracy continued the cocaine smuggling operation using the system Mercer had originally devised in 2011. After being shut out of the drug smuggling organization, Mercer persistently tried to regain membership, but his coconspirators refused. Trial testimony established that Mercer ultimately decided to expose the organization’s smuggling activities to law enforcement.
According to trial testimony, the smuggling operation was interdicted by federal law enforcement on September 3, 2016, after Mercer contacted a Customs and Border Protection (CBP) agent and reported that one of his former colleagues was traveling through the St. Thomas airport on that day with a quantity of cocaine. Witnesses at trial stated that Mercer instructed the CBP agent not to reveal that he (Mercer) was the source of intelligence information which lead to the apprehension of Mercer’s former colleague, the drug courier. At trial, the U.S. Attorney’s Office presented cell phone records to corroborate that Mercer’s call to the CBP agent was made within minutes of the drug courier’s arrest at the airport with cocaine. CBP agents seized 22 kilograms ofcocaine from the courier’scarryon suitcase, and evidence presented at trial showedthat the last person the courier saw, prior to his apprehension, was infact Mercer.
Other members of the conspiracy have already enteredguilty pleas in this case. As a resultof his conviction, Mercer facesimprisonmentof not less than 10 years and not more than life, anda fine of up to $10,000,000. He wasdetained pending sentencing.
This case was investigated by Homeland SecurityInvestigations, Federal Bureau ofInvestigations and Drug Enforcement Administration and was prosecuted by Assistant United States AttorneysDelia Smith and Meredith Edwards.
Florence Man Sentenced in Federal Court for Failure to Register as a Sex OffenderRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Tayquan Thomas, age 23, of Florence, South Carolina, was sentenced today in federal court in Florence for Failure to Register as a Sex Offender, a violation of Title 18, United States Code, Section 2250(a). United States District Judge Bryan Harwell of Florence sentenced Thomas to 24 months’ imprisonment followed by 5 years of supervised release.
The evidence presented at the guilty plea hearing established that in 2013 Thomas was convicted in Pitt County, North Carolina of Indecent Liberties with Child, which conviction required him to register as a sex offender in any state where he resided, was employed or was a student. Under the law, Thomas was required to inform authorities if he ever changed his address, and if he moved to another state, he was required to notify authorities of both the state he was leaving as well as the state to which he was moving. In September 2017, the Pitt County Sheriff’s Office discovered that Thomas had left his previous address without informing them as required, and they issued a warrant for his arrest. The matter was referred to the United States Marshals Service which soon discovered that Thomas had moved to an address on East Old Marion Highway in Florence, South Carolina. On October 25, 2017, Thomas was located at the East Old Marion Highway address by a task force officer working with the U.S. Marshals Operation Intercept Fugitive Task Force. When the officer attempted to arrest Thomas, he fled in a vehicle, then on foot, but was eventually apprehended after a tracking dog (K-9) was deployed.
The case was investigated by the United States Marshals Service with the assistance of the Florence County Sheriff’s Office and the Pitt County Sheriff’s Office. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Office, 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 identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Fenton Man Pleads Guilty to Making False Claims to the VA Medical CenterRead the Press Release
St. Louis, MO –Vincent DeBlasi, 72, of Fenton, MO, pleaded guilty to making false claims against the United States today. DeBlasi appeared before United States District Judge Audrey G. Fleissig who accepted his plea and set sentencing for September 14, 2018.
DeBlasi admitted to submitting scores of false invoices to the U.S. Department of Veterans Affairs Medical Center at Jefferson Barracks totaling more than $644,000 between 2012 and 2017. He was employed by Applied Maintenance Supplies and Solutions (AMSS) as a salesman of tools and other various commercial and industrial products. One of DeBlasi’s accounts for AMSS was the Jefferson Barracks Medical Facility.
Special Agent in Charge Gregg Hirstein of the VA Office of Inspector General said, “We aggressively investigate cases of individuals or companies who defraud the VA by taking money from the programs and operations meant for our nation’s veterans. We hope this case prompts others aware of fraud against the VA to contact the VA OIG Hotline.”
DeBlasi faces up to 5 years in prison and a fine of not more than $250,000 or both. Restitution to the victim is also mandatory.
The case was investigated by the U.S. Department of Veterans Affairs Office of the Inspector General. Tom Albus is handling the case for the U. S. Attorney’s Office.
Federal Jury Convicts Bailey Boys Gang Leader of Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has convicted Kenneth Pettway, Jr., 34, of Buffalo, NY, of conspiracy to possess with intent to distribute, and to distribute, 280 grams or more of crack cocaine, and possession with intent to distribute heroin and cocaine, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm. The charges carry a mandatory minimum penalty of 40 years in prison, a maximum of life and a fine of $5,000,000.
Assistant U.S. Attorneys Michael P. Felicetta and Seth T. Molisani, who handled the prosecution of the case, stated that the defendant was a leader of the Bailey Boys Gang, a violent criminal gang which operates in an area of the City of Buffalo bounded by Winspear Avenue, the Kensington Expressway, Eggert Road and Main Street. The gang is believed to be responsible for multiple acts of violence, including assaults, shootings, murders, and armed robberies.
As a leader of the Bailey Boys Gang, the defendant supplied illegal narcotics, including crack cocaine, heroin and marijuana, to members and associates of the gang for further distribution in the City of Buffalo. Pettway also provided multiple firearms to members and associates to be used for protection of gang territory, drugs and drug proceeds.
The evidence presented by the government during trial included a rap video entitled “Picked up in a Raid,” which the defendant created and posted to his You Tube account. The video, which purports to be based on a true story, contains images and lyrics related to the defendant’s drug distribution, the silencing of snitches, and the execution of a search warrant by law enforcement officers.
On January 18, 2012, a search warrant was executed at the residence of Demetrius Black residence on Roosevelt Avenue. Officers seized two firearms, heroin, cocaine, marijuana, scales, baggies, and other drug paraphernalia.
Pettway is one of 15 Bailey Boys Gang leaders, members, and associates charged in this case. To date, 14 have been convicted.
“Kenneth Pettway, Jr. was a leader of a neighborhood street gang whose members and associates engaged in narcotics trafficking, robberies, and acts of violence,” stated United States Attorney Kennedy. “Let there be no mistake, my Office, together with our partners in federal, state, and local law enforcement, are making headway in our ongoing effort to wipe out these gangs and the drugs and gun violence which constitute their stock-in-trade. Sooner or later, the young men joining these violent, drug-dealing neighborhood gangs need to realize that it is a big world out there, that they are the captains of their own destiny, and that the only place allegiance to these gangs and their leaders, such as Kenneth Pettway, will take them is to an early grave or to federal prison.”
Today’s verdict is the result of an ongoing investigation into the activities of the Bailey Boys Gang and other criminal gangs that is being conducted by the United States Attorney’s office in close cooperation with the Erie County District Attorney’s Office, under the direction of District Attorney John J. Flynn; and in conjunction with the Buffalo Police Department, under the direction of Police Commissioner Byron Lockwood; the Federal Bureau of Investigation Safe Streets Task Force, under the Direction of Special Agent-in-Charge Gary Loeffert; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
Sentencing is scheduled for September 5, 2018, at 11:00 a.m. before U.S. District Judge Thomas J. McAvoy who presided over the trial.
Elsmere Man Indicted for Pipe BombsRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced today that a federal grand jury charged Mark Consiglio, 48, of Elsmere, Delaware with three counts of illegally possessing a destructive device, commonly known as a pipe bomb. Each charge carries a maximum penalty of 10 years of imprisonment, three years of supervised release, a $10,000 fine, and a $100 special assessment on each count, if convicted.
The allegations against Consiglio include that he detonated a pipe bomb at his estranged wife’s residence in Elsmere in the early morning hours of March 12, 2018. Subsequent searches of Consiglio’s residence yielded additional suspected pipe bombs as well as a .38 caliber revolver. In February, Consiglio was charged with terroristic threatening by the State of Delaware for threatening to kill his wife.
Consiglio made his initial appearance on the indictment before a federal magistrate judge on May 24, 2018. The government filed a motion to detain Consiglio pending trial. He did not contest detention.
U.S. Attorney Weiss offered the following statement, “The use of destructive devices poses a grave threat to the safety of this community. We will treat these threats accordingly and prosecute those who employ such weapons to the fullest extent of the law.”
An indictment is merely an allegation and is not evidence of guilt. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives in coordination with the Office of the State Fire Marshal and the Elsmere Police Department and is being prosecuted by Assistant U.S. Attorney Alexander P. Ibrahim.
El Salvadorian National Charged with Transporting Illegal AliensRead the Press Release
U.S. Attorney Duane A. Evans announced that FRANCISCO ARENIVAR-CASTILLO, age 37, a citizen of El Salvador, was charged yesterday in a one-count bill of information with transporting aliens, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(ii).
According to the bill of information, on March 8, 2018, ICE agents intercepted FRANCISCO ARENIVAR-CASTILLO while he was driving an illegal alien from Houston, Texas to Miami, Florida, through St. Tammany Parish. FRANCISCO ARENIVAR-CASTILLO knew his passenger was illegally present in the United States, yet he nevertheless agreed to transport the individual to a work-site in the Miami area for employment.
If convicted, FRANCISCO ARENIVAR-CASTILLO faces a maximum term of imprisonment of five years, a fine of up to $250,000.00, one year supervised release after imprisonment, and a $100 special assessment.
U. S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
East St. Louis Man Sentenced to Prison for Firearm OffenseRead the Press Release
On May 30, 2018, Arthur Robinson, 30, of East St. Louis, Illinois, was sentenced to serve 188 months in federal prison for being a convicted felon in possession of a firearm, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today. United States District Judge David R. Herndon sentenced Robinson on the conviction, as well as two supervised release revocation cases. Robinson’s prison sentence is to be followed by three years of supervised release. Robinson also agreed to forfeit the illegal firearm that he possessed.
Court proceedings revealed that at approximately four o’clock on the morning of September 18, 2016, an East St. Louis police officer encountered Robinson, a previously convicted felon, passed out behind the wheel of his running truck in the middle of a roadway. The officer observed a Glock handgun loaded with a 30 round magazine laying in Robinson’s lap. The firearm was secured and Robinson was woken up and arrested.
Robinson received an enhanced sentence because of a St. Clair County state court conviction for Aggravated Discharge of a Firearm in 1991, federal court convictions for Conspiracy to Distribute Cocaine Base and Distribution of Cocaine Base in 1992, and federal court convictions for Distribution of Cocaine Base and Possession with Intent to Distribute Cocaine Base in 2002.
The case was investigated by the East St. Louis Police Department and prosecuted by Assistant United States Attorney Christopher Hoell.
Eagle Butte Woman Sentenced on Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman convicted of Distribution of a Controlled Substance (methamphetamine) was sentenced on May 22, 2018, by U.S. District Judge Roberto A. Lange.
Misti Traversie, age 37, was sentenced to 3 months in custody, 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Traversie was indicted by a federal grand jury on November 14, 2017. She pled guilty on March 8, 2018.
Traversie admitted to distributing methamphetamine to another individual for money on August 24, 2016, in Eagle Butte, South Dakota. Traversie further admitted she had distributed methamphetamine on at least one other occasion. Methamphetamine is a Schedule II controlled substance.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Traversie was immediately turned over to the custody of the U.S. Marshals Service.
Drug traffickers sentenced for distributing 100 kilograms of methamphetamine per week in the Atlanta areaRead the Press Release
ATLANTA - Victor Aguirre-Rodriguez was sentenced today to federal prison for his role in a Mexican methamphetamine and cocaine trafficking organization that distributed approximately 100 kilograms of methamphetamine per week (valued at $1.75 million per week) in the Atlanta area. Aguirre-Rodriguez was convicted by a federal jury on February 16, 2018.
“Aguirre-Rodriguez was a member of an illegal organization that flooded the Atlanta area with $1.75 million of methamphetamine per week while hiding on the other end of a cell phone in Mexico,” said U.S. Attorney Byung J. “BJay” Pak. “These high-level traffickers are not protected by technology or their distance from Atlanta when they send poison into our community.”
“These arrests and convictions are an excellent example of how DEA is committed to working with our state and local partners to eliminate drug trafficking in our local communities, no matter where these criminals try to hide,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “The DEA and its law enforcement partners will work tirelessly to continue to bring justice to those responsible for putting this poison on our streets.”
“The impact of taking down these traffickers is immense,” said Atlanta Police Chief Erika Shields. “We’re glad our joint efforts led to shutting down this high-level operation that was dumping millions of dollars of methamphetamine and cocaine onto our streets. Our relationship with our federal and state partners proves once again to be vital in stopping drug traffickers and detouring others from coming to our city.”
According to U.S. Attorney Pak, the charges and other information presented in court: Victor Aguirre-Rodriguez was a member of a Mexico-based drug-trafficking organization (“DTO”) with a foothold in the Atlanta area that was seeking to establish a large-volume cocaine distribution chain to the U.S. Aguirre-Rodriguez began negotiating on behalf of the DTO via telephone from Mexico with Colombian cocaine suppliers.
Unbeknownst to Aguirre-Rodriguez, the U.S. Drug Enforcement Administration (“DEA”) had infiltrated the Colombian suppliers. As the cocaine negotiations continued, Aguirre-Rodriguez invited the Colombians to expand their business model to include the distribution of methamphetamine. The DTO had been distributing approximately 100 kilograms of methamphetamine per week in the Atlanta area at $17,500 per kilogram, and planned to reinvest those profits into its cocaine distribution line.
DEA agents within the Colombian group agreed to purchase the methamphetamine. Aguirre-Rodriguez and DEA agents set up an initial deal for ten kilograms of methamphetamine in exchange for $175,000. Agents planned to drop off a car at Best Friend Park in Gwinnett County, Georgia, where a DTO member would then pick up the car, load it with the ten kilograms of methamphetamine, and return the drug-laden car in exchange for the cash.
The Georgia State Patrol, working in conjunction with the DEA, intercepted the car and seized all ten kilograms of methamphetamine. DEA agents then arrested the driver, Joaquin Tirado. Agents also executed a federal search warrant for the DTO’s suspected drug stash house in Norcross, Georgia, where an additional seven kilograms of methamphetamine were seized and Nolver Noel Molina-Gonzalez, who was guarding the house, was arrested. DEA agents arrested a third DTO member, Jose Luis Guillen-Torres, a/k/a Primo, who was on his way to collect the $175,000 payment.
At the time of these arrests, Aguirre-Rodriguez could not be located and the DEA issued a worldwide notice for law enforcement to be on the lookout for him. Three years passed before Aguirre-Rodriguez was arrested on cocaine charges in Chicago, Illinois.
Members of the organization who have been sentenced by U.S. District Judge Thomas W. Thrash, Jr. are:
●Victor Aguirre-Rodriguez, 41, of Nayarit, Mexico was sentenced to 20 years in prison, to be followed by 10 years of supervised release. Aguirre-Rodriguez was convicted by a jury of conspiracy to possess with intent to distribute and possession with intent to distribute methamphetamine.
●Jose Luis Guillen-Torres, a/k/a/ Primo, 30, of Guerrero, Mexico was previously sentenced to 24 years and four months in prison, to be followed by five years of supervised released. Guillen-Torres pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on June 4, 2013.
●Joaquin Tirado, 29, of Los Angeles, California was previously sentenced to 15 years in prison, to be followed by 10 years of supervised released. Tirado pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking on June 3, 2013.
●Nolver Noel Molina-Gonzalez, 34, of Guerrero, Mexico was previously sentenced to eight years and one month in prison, to be followed by five years of supervised released. Molina-Gonzalez pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on June 13, 2013.
This case is being investigated by the U.S. Drug Enforcement Administration and the Atlanta Police Department, with valuable assistance from the Georgia State Patrol.
This prosecution was brought as a part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Assistant U.S. Attorneys Ryan M. Christian and Garrett L. Bradford are prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
District Man Sentenced to over 13 Years in Prison for Eight Armed Robberies Committed over Two-Day PeriodRead the Press Release
WASHINGTON – Tyrone Hunter, 25, of Washington, D.C., was sentenced today to 13 years and two months in prison for a series of armed robberies that took place within a two-day period last year in Northwest and Northeast Washington, U.S. Attorney Jessie K. Liu announced.
Hunter was found guilty by a jury in March 2018 of eight counts of armed robbery, as well as conspiracy to commit robbery, fleeing and eluding police, reckless driving, and related weapons offenses and other charges. The verdict followed a five-week trial, with testimony from more than 50 witnesses, in the Superior Court of the District of Columbia. He was sentenced by the Honorable Robert A. Salerno. Following his prison term, Hunter is to be placed on five years of supervised release.
According to the government’s evidence, on Jan. 15, 2017, at approximately 1:30 a.m., a 2016 grey Audi sedan was stolen from a parking garage in the 400 block of K Street NW. Over the next two days, the stolen Audi was used as the getaway vehicle in eight armed robberies in Northwest and Northeast Washington. In each instance, Hunter exited the front passenger seat and robbed the victims at gunpoint of their personal belongings before fleeing in the stolen car. According to the evidence at trial, the first robbery took place before dawn on Jan. 15, 2017, and the crimes continued into the night of Jan. 16, 2017.
On Feb. 8, 2017, law enforcement observed Hunter driving the stolen Audi. Following a brief chase that resulted in the stolen Audi crashing into numerous vehicles, Hunter exited the vehicle and fled from the police. Law enforcement soon located and arrested Hunter. Following his arrest, several victims identified him as the gunman who robbed them. Hunter has been in custody since his arrest.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department (MPD). She also expressed appreciation for the assistance provided by the FBI’s Cellular Analysis Survey Team and the District of Columbia Department of Forensic Sciences. She acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Criminal Investigators John Marsh and Durand Odom; Paralegal Specialists Zoe Antwi and Antoinette Sakamsa; Victim/Witness Advocates Diana Lim and Jennifer Clark; Victim/Witness Services Coordinator Katina Adams-Washington, and Litigation Technology Specialists Leif Hickling, Anisha Bhatia, William Henderson, and Ron Royal. Finally, she commended the work of Assistant U.S. Attorneys Vivien Cockburn and Ellen D’Angelo, who investigated and prosecuted the case.
District Man Sentenced to More Than Five Years in Prison for Assaulting Storeowners in Southeast WashingtonRead the Press Release
WASHINGTON – Avon Thompson, 23, of Washington, D.C., was sentenced today to five years and three months in prison for severely attacking two people with a knife who attempted to prevent him from stealing alcohol from their store in Southeast Washington, U.S. Attorney Jessie K. Liu announced.
Thompson pled guilty in January 2018, in the Superior Court of the District of Columbia, to charges of assault with a dangerous weapon and assault with significant bodily injury. He was sentenced by the Honorable José M. López. Following his prison term, Thompson will be placed on three years of supervised release.
According to the government’s evidence, on the afternoon of Nov. 15, 2017, Thompson entered a store in the 2400 block of Martin Luther King Jr., Avenue SE. After looking around the store, he took a bottle of liquor, put it in his pants and attempted to leave without paying. The first victim, the storeowner, attempted to confront Thompson and call the police to report the theft. However, Thompson turned irate and began striking the victim several times – first with his fist, then with a knife. The second victim, the wife of the storeowner, came out to help defend her husband, but was assaulted as well.
During the assault, Thompson knocked both victims to the floor and continued attacking them. The storeowner had multiple lacerations to his head and had to undergo multiple dental surgeries to repair damaged and missing teeth. The wife of the storeowner also had to have surgery to insert a metal rod in her arm to repair her broken wrist.
Thompson was arrested soon after the attack and has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department (MPD). She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Diana Lim and Assistant U.S. Attorney Emile C. Thompson, who investigated and prosecuted the matter.
District Man Sentenced to Five Years in Prison for Armed RobberyRead the Press Release
WASHINGTON - Anthony Robinson, 26, of Washington, D.C., was sentenced today to five years in prison on a charge of armed robbery stemming from an incident in which he conspired to rob an acquaintance after a party, announced U.S. Attorney Jessie K. Liu.
Robinson pled guilty in April 2018, in the Superior Court of the District of Columbia. He was sentenced by the Honorable Judith Bartnoff. Following his prison term, Robinson will be placed on five years of supervised release.
According to the government’s evidence, on Oct. 15, 2016, at approximately 3:30 a.m., Robinson and another man, having conspired to rob the victim, came to the front of the Baron Hotel in the 1500 block of 22nd Street NW, where a party was being held, to execute their plan. The victim was standing on the sidewalk, talking to occupants of a car parked on the street.
When Robinson and his accomplice arrived, the accomplice immediately pointed a gun to the victim’s head and demanded the man’s backpack. Robinson stood a few feet away. The victim handed his backpack to the accomplice, and Robinson urged him to “come on.”
At this point, one of the passengers in the car stepped out and Robinson’s accomplice fired two shots at him; one of these bullets hit the man below his right ear and exited through his neck. The man survived the gunshot wound. Robinson ran down the block to wait for his accomplice. Robinson took the backpack from the accomplice and both men fled the scene. Robinson was arrested on Nov. 7, 2016. No one else has been charged to date.
In announcing the sentence, U.S. Attorney Liu commended the work of detectives from the Metropolitan Police Department’s Second District, who investigated the case. She also acknowledged the efforts of Assistant U.S. Attorney Nurudeen Elias, who investigated and indicted the case with assistance from Assistant U.S. Attorney John Giovannelli.
Credit Card Fraudster Sentenced to PrisonRead the Press Release
Assistant U.S. Attorney Nicholas W. Pilchak and Matthew J. Sutton (619) 546-9709 and (619) 546-8941
NEWS RELEASE SUMMARY – June 1, 2018
SAN DIEGO – The leader of a credit card fraud ring that stole account information from dozens of San Diego residents and used it to purchase over $70,000 of merchandise at area retailers was sentenced in federal court today to 51 months in prison.
U.S. District Judge John A. Houston sentenced the ringleader, Daniel Stephen Wray, following his January 18, 2018 guilty plea to conspiracy to use counterfeit access devices. Wray was also ordered to pay $76,489.35 in restitution.
As detailed in the plea agreement, indictment, and other publicly-filed court documents, Wray recruited multiple co-conspirators to join his ring of credit card fraudsters in late 2016. Wray then provided these individuals with counterfeit access devices—credit cards bearing altered names, but encoded with real credit card numbers for the accounts of unwitting victims—and drove them to San Diego-area stores.
Investigators believe that many of the victims’ identities and credit card numbers were stolen after Wray and his co-conspirators installed a skimmer at a La Jolla, California gas station. A skimmer is a device capable of reading and recording account information, including customer names, account numbers, and personal identification numbers, from credit and debit cards. After creating the fraudulent credit cards with the stolen credit card numbers, Wray and his co-conspirators then used them to purchase tens of thousands of dollars of merchandise from multiple San Diego retailers, including Costco and Smart N Final.
Wray admitted his role as the leader of the fraudulent scheme, acknowledging that he obtained dozens of counterfeit and unauthorized access devices from multiple victims in San Diego County and then directed his associates to use these fraudulent credit cards to make tens of thousands of dollars in purchases, ranging from Apple iPads, luxury wristwatches, gold and silver, and significant quantities of liquor and energy drinks from large San Diego retailers. According to court filings, Wray rapidly resold or distributed the stolen property on the black market.
Wray also admitted to being previously convicted of illegally possessing 269 counterfeit credit cards in 2014. In fact, according to court records, Wray was on supervised release for his prior credit card fraud conviction when he committed this crime, and even recruited his accomplices from the halfway house where he was serving his supervised release term.
At sentencing this morning, Judge Houston noted Wray’s lengthy and serious prior criminal record, his aggravating role in the offense, and the effect of identity theft on the lives of ordinary citizens. The judge said Wray’s identity theft conduct “destroys lives.”
“Identity thieves cannot victimize citizens of our district with impunity,” said U.S. Attorney Adam L. Braverman. “To anyone who considers credit card fraud a quick and easy payday: this office will investigate and prosecute you, and you will face the consequences.”
“Today’s sentencing is a reminder that financial crimes are not victimless crimes,” said United States Secret Service Special Agent in Charge Brian S. Christensen. “The defendant and his conspirators victimized the community of San Diego for their own personal gain by taking advantage of multiple local merchants. The U.S. Secret Service and its law enforcement partners will continue to investigate and pursue prosecution of those who engage in identity theft or financial fraud.”
The San Diego Regional Fraud Task Force (SDRFTF), conducted the investigation that led to the successful prosecution of this defendant. The SDRFTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in San Diego County. Partnering in this effort are the United States Attorney's Office for the Southern District of California, the United States Secret Service, the San Diego Police Department, and the San Diego County District Attorney’s Office, along with other state and local partners. The case is being prosecuted by Assistant U.S. Attorneys Nicholas W. Pilchak and Matthew J. Sutton.
DEFENDANT Case Number 17CR3856-JAH
Daniel Stephen Wray Age: 29 San Diego, California
SUMMARY OF CHARGES
Conspiracy to Commit Access Device Fraud, in violation of Title 18 U.S.C. § 1029; Term of custody including 20 years in prison, $250,000 fine and 3 years supervised release and mandatory restitution.
AGENCIES
San Diego Regional Fraud Task Force:
- United States Secret Service
- San Diego Police Department
- San Diego District Attorney’s Office
Columbus Woman Pleads Guilty to Tax FraudRead the Press Release
COLUMBUS, Ohio – Tawnya Writesel, also known as Tawnya Rutan, 39, of Columbus, pleaded guilty to conspiracy to submit false claims for income tax refunds with the Internal Revenue Service (IRS). Writesel filed at least 100 false income tax returns in an attempt to receive more than half a million dollars in fraudulent tax returns.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office, announced the guilty plea offered before U.S. Magistrate Judge Norah McCann King.
According to court documents, between April 2012 and September 2015, Writesel conspired to defraud the IRS by filing approximately 100 false income tax returns in an attempt to obtain fraudulent income tax refunds totaling approximately $548,382.00. As a result of the false income tax return filings, a total of $226,677.50 in fraudulent income tax refunds was released by the IRS to Writesel and/or other coconspirators.
Writesel used the identification of real people, including names, social security numbers and dates of birth, and used the identifying information as either the taxpayers or the dependents on the false income tax returns. The majority of these false tax returns contained fictitious information including false Schedule C income and expenses, and fraudulently claimed education and Earned Income Credits.
Co-defendants Michael (also known as Mickey) A. Prisley, Amy K. France and Denard T. Nelson were also charged in relation to this case.
Prisley was an attorney licensed to practice law in the State of Ohio and had served as an assistant prosecuting attorney for Athens County, Ohio from approximately August 2011 through January 2014. He pleaded guilty in April 2018 to one count of conspiracy to submit false claims and is awaiting sentencing.
France pleaded guilty in June 2016 to one count of conspiracy to submit false claims and one count of identity theft and was sentenced in January to 37 months in prison. France was also ordered to pay nearly $467,000 in restitution.
Nelson pleaded guilty in September 2015 to one count of identity theft and was sentenced in May 2016 to five years of probation. He was also ordered to pay more than $87,000 in restitution.
“This is the last defendant to plead guilty in this conspiracy, one in which they all chose to line their pockets with stolen income tax refunds,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, and Assistant United States Attorney Jessica H. Kim, who is prosecuting the case.
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Colorado Springs Man Sentenced to 18 Months in Federal Prison for Illegal Reentry into the United States and Illegal Alien in Possession of a FirearmRead the Press Release
DENVER – Jose De Jesus Cordova-Saldana, 29, of Colorado Springs, Colorado, was sentenced yesterday to serve 18 months in federal prison following his March 5, 2018 entry of a guilty plea to Illegal Alien in Possession of a Firearm and Illegal Reentry into the United States, both felonies. The proceedings were held before U.S. District Judge Raymond P. Moore. Cordova-Saldana’s guilty plea followed a January 2018 indictment.
Court documents indicate that on the day after Thanksgiving, November 24, 2017, Cordova-Saldana engaged in a drunken joy ride with friends through the residential streets of Colorado Springs firing weapons in the air, including a Beretta Nano 9mm firearm, a Glock 9mm handgun, and an American Tactical AR-15 assault rifle. The defendant was later found by local police slumped over and passed out in the back seat of a Chevrolet Silverado pick-up truck with a host of weapons, live ammunition, and discarded shell casings. All firearms and ammunition were confiscated by authorities. Previously, in January 2014, Cordova-Saldana was convicted of 3rd Degree Assault, causing injury to the victim, and later deported to Mexico that same year after serving a state jail sentence.
Following his sentencing hearing, Cordova-Saldana was remanded into the custody of the U.S. Marshal’s Service and is expected to be deported again to his native country of Mexico after serving his sentence.
The investigation in this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) along with the Colorado Springs Police Department. The prosecution was handled by Wayne Paugh, Special Assistant U.S. Attorneys, District of Colorado, Denver.
Chief Digital Officer of Cable Network Sentenced to 51 Months in Prison for Defrauding His Former Employer of More Than $7 MillionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that EMIL RENSING was sentenced today to 51 months in prison for his scheme to defraud his former employer, a premium cable network (the “Network”), of more than $7 million through false statements about purported services to be provided to the Network by companies RENSING owned and controlled, which services were, in large part, never performed. RENSING was sentenced by U.S. District Judge Victor Marrero, who previously accepted RENSING’s guilty plea.
U.S. Attorney Geoffrey S. Berman said: “Emil Rensing defrauded his employer out of more than $7 million by causing the network to pay Rensing-controlled companies for services that were never rendered. Rensing used false and stolen identities and dummy email accounts to conceal his role in the payments, and then lied to company lawyers who questioned him about the evident fraud. Today he has been sentenced to prison for his crime.”
According to the allegations in the Indictment to which RENSING pled guilty, a criminal complaint filed against RENSING, statements made during the plea, and other court proceedings:
EMIL RENSING, who served as the chief digital officer of the Network, defrauded the Network of more than $7 million over the course of his five-year employment with the Network. Specifically, through his position as chief digital officer of the Network, RENSING caused the Network to contract with vendor companies owned and controlled by RENSING to perform digital media services for the Network and to perform those services through vendor personnel identified in the contracts. In truth and in fact, the services promised by RENSING were, in large part, never performed, and the vendor personnel designated in the contracts to perform the services – which included several of RENSING’s former professional associates and business partners – never performed services for the Network. Indeed, the individuals identified by RENSING as vendor personnel were unaware that their names were being used by RENSING in this manner.
RENSING concealed his fraudulent scheme by, among other things, using false and stolen identities to hide his own involvement in the scheme. As to one of the vendors RENSING used to perpetrate the scheme (“Vendor-1”), RENSING provided the Network with a false name and email address as the “contact” to be used by the Network to communicate with Vendor-1. As to a second vendor (“Vendor-2”), RENSING provided the Network with the name of a personal acquaintance as a “project manager” and “contact” for Vendor-2 when, in truth and in fact, this acquaintance had nothing to do with Vendor-2. Unbeknownst to this personal acquaintance, RENSING also established an email account in that acquaintance’s name, which RENSING, posing as the acquaintance, regularly used to communicate with the Network about the vendor’s billing and other administrative matters.
After the Network learned of RENSING’s fraudulent scheme, RENSING was interviewed by attorneys for the Network. During this interview, which was recorded at the request of RENSING and his counsel, RENSING made multiple false statements to further conceal his fraudulent scheme.
* * *
In addition to the prison term, RENSING, 44, of Manhattan, was sentenced by Judge Marrero to three years of supervised release, and was ordered to forfeit $7,774,469.52 and to pay $7,774,469.52 in restitution to the Network plus the expenses the Network incurred during its participation in the Government’s investigation and criminal prosecution.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Elisha J. Kobre is in charge of the prosecution.
Canadian Woman Sentenced for Smuggling Thousands of Dollars at the Peace BridgeRead 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 Liliya Dzyuba, 42, a Ukraine National and citizen of Canada, who was convicted of bulk cash smuggling, was sentenced to time served by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney, Aaron J. Mango, who handled the case, stated that on January 25, 2018, the defendant attempted to enter the United States from Canada at the Peace Bridge Port of Entry. During her primary inspection, Dzyuba stated that she was traveling with $5,000 in U.S. Currency. The defendant signed the CBP Customs Declaration Form indicating that she was not carrying over $10,000. During a secondary inspection, CBP Officers told Dzyuba that she was going to be patted down and was asked again if she had any additional money on her. The defendant then admitted that she was carrying $35,000.00 around her waist and hidden in her pants. Dzyuba was searched and officers recovered four black zipper pouches concealed around her waist, which contained a total of $37,000. In addition, $5,373 was found in the defendant’s wallet, for a total amount of $42,373.
The sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations under the direction of Special Agent-in-Charge Kevin Kelly, and Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
CEO Gets More Than 19 Years for $18 Million Health Care Fraud SchemeRead the Press Release
HOUSTON – The CEO of Team Work Ready (TWR) has received a significant federal sentence for conspiracy, health care fraud, wire fraud and money laundering, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Christopher Cave of the U.S. Postal Service - Office of Inspector General (USPS-OIG), Special Agent in Charge Steven Grell of the U.S. Department of Labor (DOL) – OIG, Assistant Special Agent in Charge Ramsey Covington of IRS-Criminal Investigation (CI), Special Agent in Charge James Werner of the Department of Veterans Affairs (VA) – OIG and Special Agent in Charge David J. Green of the Department of Homeland Security (DHS) – OIG.
A federal jury convicted Jeffrey Eugene Rose Sr., 56, along with his wife - chief financial officer (CFO) Pamela Annette Rose, 56 - and the clinic’s vice president of operations Frankie Lee Sanders, 56, following 14 hours of deliberation on Oct. 17, 2016.
Today, U.S. District Judge Ewing Werlein Jr., who presided over the trial, sentenced Rose to 233 months in federal prison and ordered him to pay $14,537548.54 in restitution to the DOL, Office of Worker’s Compensation Program (OWCP) which administered the Federal Employees Compensation Act health care benefit program known as FECA. In arriving at the sentence, Judge Werlein considered the seriousness of the offense and the $18,354,971 in fraudulent claims submitted from Rose’s 10 TWR clinics located in Texas, Louisiana, Georgia, Memphis and Alabama, including clinics in Houston, San Antonio, and McAllen. Rose will also be required to serve three years supervised release upon completion of the prison term.
“The sentence imposed today serves as a clear deterrent to those engaging in fraud against federal benefit programs,” said Cave. “USPS-OIG, along with our law enforcement partners, will continue to aggressively pursue these investigations and exhaust all efforts in uncovering these fraud schemes.”
Pamela Rose and Sanders were previously sentenced July 21, 2017, to 120 and 300 months, respectively.
During the trial, the jury heard testimony from 38 witnesses including former patients of TWR clinics, former employees of TWR clinics, various experts and special agents from USPS-OIG and IRS-CI. According to testimony, TWR submitted millions in false and fraudulent claims for physical therapy services.
“Jeffrey Rose orchestrated a fraudulent scheme to submit more than $18 million in claims for services never provided to injured federal workers to DOL-OWCP using the health care clinics he owned in multiple states,” said Grell. “We will continue to work with our law enforcement partners to protect the integrity of department programs and safeguard taxpayer money.”
“Our system of health care is founded on the trust of the public in its health care professionals and the outstanding services they provide. The health care fraud and money laundering activities committed by Jeffrey Rose and his co-conspirators harms all Americans, as we all have to pay our fair share for government services and protections that we enjoy,” said Covington. “IRS-CI agents along with our law enforcement partners remain committed to ending healthcare fraud conspiracies and seeking justice for those involved in these crimes.”
Patients testified at trial that they did not receive the one-on-one physical therapy services for which DOL-OWCP paid under FECA. Rather, they stated they exercised independently on treadmills, bicycles, elliptical machines and with the Nintendo Wii game as well as other pieces of exercise equipment. One patient described an electronic massage chair in the San Antonio clinic, while another patient testified that unlicensed staff told him to do exercises on both of his arms, although he only injured his left elbow and to use the electronic massage chair and the treadmill for his injury. Similarly, a patient from Houston testified that she was asked to do some exercises that had nothing to do with her carpal tunnel wrist injury, specifically walking on a treadmill.
Testimony from former TWR employees revealed that the Houston clinic had as many as 30 – 60 patients a day and that employees did not know what the patients were doing in the main treatment area because they were busy in the back doing massages, electrical stimulation treatments and ultrasound treatments. Patients at the New Orleans clinic were instructed to go back to the therapy room to begin doing exercises by themselves. Employees testified that they did not perform all the one-on-one services documented on patient treatment notes and admitted they frequently completed the patient treatment notes at the end of the day by following a “cheat sheet” and asking each other and the patients what activities had been done. Various individuals described the treatment as “like a gym.”
Undercover federal agents posed as patients at two of the TWR clinics. The jury watched portions of covertly made recordings that supported the employee and patient testimony about clinic activities. The jury also heard several recordings a TWR employee made demonstrating how the defendants tried to coerce her into ordering medically unnecessary treatment so the clinics could profit.
As explained during the trial by DOL-OWCP’s chief fiscal officer, FECA does not pay for professional services performed by unlicensed aides. Under FECA rules, a chiropractor can only be paid when they treat spinal subluxation or when they personally perform physical therapy under the direction of, and as prescribed by, a medical doctor. They also cannot direct unlicensed individuals to perform skilled physical therapy services. Specifically, in relation to this case, TWR falsely and fraudulently submitted claims for skilled one-on-one physical therapy services provided by a licensed chiropractor when, in reality, the services were not provided as described.
Rose and his wife were also convicted of money laundering after another TWR employee testified about the pair moving $700,000 out of TWR accounts to hide it from the federal government in July 2013, while federal agents executed search warrants at multiple TWR locations.
Rose has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
USPS - OIG, DOL - OIG, IRS - CI, Department of Veterans Affairs - OIG, and Department of Homeland Security – OIG conducted the investigation. Assistant U.S. Attorneys (AUSA) Julie Redlinger and Daniel Rodriguez prosecuted the case. AUSA Kristine Rollinson handled the forfeiture matters.
Burbank Elementary School Teacher Indicted for Producing Child Pornography and Enticement for Engaging in Sexual Conduct with Former StudentRead the Press Release
LOS ANGELES – A federal grand jury yesterday named a Burbank teacher in a criminal indictment that accuses him of sexually exploiting a fifteen-year-old former student for purposes of producing child pornography images of the minor.
Sean David Sigler, 53, of Burbank – who previously taught fifth-grade students at Bret Harte Elementary School in Burbank and at Gardner Street Elementary School in Los Angeles – was indicted Thursday on eleven counts including obtaining custody and control of a minor with intent to produce child pornography, production of child pornography, enticement of a minor, and possession of child pornography. The United States Attorney’s Office previously filed a criminal complaint against Sigler charging him with production of child pornography.
According to the complaint, Sigler inserted himself into the victim’s life shortly after the child left Sigler’s classroom and used his position as former teacher, mentor, and father-figure to gain the trust of the victim and her parent. Sigler then exploited that trust to gain sexual access to the minor victim. Over the course of 15 months, Sigler regularly transported the victim to his home, where he would give her alcohol and pills and then photograph and film his sexual activity with her. Sigler began having sex with the minor victim when she was just fifteen.
Sigler’s digital devices contained numerous images and videos of his sexual acts with the victim, as well as thousands of images of child pornography depicting unknown pre-pubescent minors, non-pornographic images of minor female students in Sigler’s classroom, and images copied and saved from the social media accounts of former students.
The violation of obtaining custody and control of a minor with intent to produce child pornography carries a mandatory minimum prison sentence of 30 years and a maximum of life imprisonment. The charges of producing child pornography each carry a mandatory minimum prison sentence of 15 years and a statutory maximum sentence of 30 years in federal prison. The charge of enticement carries a mandatory minimum prison sentence of 10 years and a maximum of life imprisonment. The charges of possessing child pornography each carry a statutory maximum sentence of 10 years in federal prison.
A complaint and indictment contain allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Sigler is currently in federal custody and will be arraigned on the indictment in the coming weeks.
The case was investigated by Homeland Security Investigations and the Burbank Police Department.
The case is being prosecuted by Assistant United States Attorneys Damaris Diaz and Devon Myers of the Violent and Organized Crime Section.
Buffalo Man Sentenced for Possession of Child PornographyRead 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 Michael V. Secchiaroli, 32, of Buffalo, NY, who was convicted of possession of child pornography involving a prepubescent minor, was sentenced to 72 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that on March 29, 2016, the defendant possessed images of child pornography which were obtained over the internet and stored on a laptop computer. On December 28, 2015, a Special Agent with the FBI, acting in an undercover capacity, logged onto a peer-to-peer file-sharing program and downloaded seven images of child pornography from an individual sharing those images from particular IP address. Further investigation revealed that the IP address was associated with the Secchiaroli’s residence. The defendant admitted that he had been using publicly available peer-to-peer software to download, possess, and view child pornography. Secchiaroli’s electronic devices were found to contain 31 images of child pornography, some of which depicted pre-pubescent children and violence.
The sentencing is the result of an investigation by agents of the Federal Bureau of Investigation, at the direction of Gary Loeffert, Special Agent-in-Charge.
Buffalo Man Pleads Guilty to Child Pornography ChargeRead 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 Joshua Zak, 40, of Buffalo NY, pleaded guilty to receipt of child pornography, before U.S. District Judge Lawrence J. Vilardo. The charge carries a mandatory minimum penalty of five year in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that in September 2015, Federal Agents searched Zak’s residence after determining he had accessed a website dedicated to the exploitation of children. Agents seized various electronics, and a forensic examination revealed that Zak was in possession of images and videos of child pornography.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary A. Loeffert
Sentencing is scheduled for September 7, 2018, at 11:00 a.m. before Judge Vilardo.
Boston Man Pleads Guilty to Distributing Drugs in and around Public Housing DevelopmentRead the Press Release
BOSTON – An identified Boston gang member pleaded guilty yesterday in federal court in Boston to distributing drugs in and around the Mildred C. Hailey Apartments in Jamaica Plain.
Joe Simmons, a/k/a “Profit,” 30, pleaded guilty to distribution of controlled substances within 1,000 feet of a public housing facility. U.S. District Court Judge Denise J. Casper scheduled sentencing for Sept. 12, 2018.
Following a two-year investigation, Simmons and eight others were charged in January 2018 in connection with illegal drug distribution and firearm possession within and near the Mildred C. Hailey Apartments in Jamaica Plain, formerly known as the Bromley Heath Housing Development. Simmons. Simmons, an alleged member of the Heath Street Gang sold cocaine base, also known as crack cocaine, to a cooperating witness inside the development on May 11, 2017. Simmons told the cooperating witness that he could supply him with “eight balls all day” and would “take care” of him. According to court documents, Simmons’s criminal record includes convictions for assault and battery, possession of a firearm, resisting arrest, and drug possession, among other charges.
The investigation and arrests sought to reduce violence and improve the quality of life in and around the Mildred C. Hailey Apartments for residents by removing individuals who trafficked drugs and who were actively involved in violence and gang disputes. Simmons is the fourth defendant to plead guilty in this case.
The charge of distribution of controlled substances within 1,000 feet of a public housing development provides for a mandatory minimum sentence of one year and no greater than 40 years in prison, a minimum of six years and up to a lifetime of supervised release, and a fine of $2 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement. Assistance was also provided by the Boston Housing Authority’s Department of Police and Public Safety.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Barbour County man admits to firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – A Philippi, West Virginia man has admitted to possessing a stolen firearm, United States Attorney Bill Powell announced.
Gregory Smith, age 54, pled guilty today to one count of “Possession of a Stolen Firearm.” Smith, admitted to having a stolen .22-caliber derringer in January 2018 in Barbour County.
Smith is facing up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.Bank Employee Sentenced for Theft of the First State Bank Graham, TexasRead the Press Release
ABILENE — Edalia Martinez Oliver, 44, of Woodson was sentenced Friday, May 25, 2018, by Senior U.S. District Judge Sam R. Cummings to serve a total of 12 months in federal prison, and ordered to pay restitution in the amount of $41,992.20, following her guilty plea in February 2018 to Bank Theft from the First State Bank Graham (Texas), in Woodson Texas, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Oliver pleaded guilty to one count of Bank Theft; that is, to take and carry away, with intent to steal and purloin, money in an amount exceeding $1,000.00 belonging to, and in the care, custody, control, management, and possession of First State Bank Graham (Texas), Woodson, Texas, a bank whose deposits were insured by the Federal Deposit Insurance Corporation.
According to documents filed in the case, on June 29, 2017, FSB management conducted a surprise teller and vault cash audit at its Woodson branch. Oliver told FSB management that there would be money missing out of the vault. Upon completion of the cash audit, FSB learned that $38,592.20 was missing. On June 29 and 30, 2017, Oliver admitted to FSB management and the Sheriff of Throckmorton County, Texas that she had stole the money to gamble and had a gambling problem.
The FBI and Throckmorton County Texas Sheriff’s Office investigated the case. Assistant U.S. Attorneys Jeffrey Haag and Beverly Chapman were in charge of the prosecution.
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Alaskan Husband and Wife Plead Guilty to Willful Failure to Pay TaxesRead the Press Release
A husband and wife pleaded guilty yesterday to two counts of willfully failing to pay their income taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Bryan Schroder for the District of Alaska.
According to court documents, Archie W. Demmert III, 57, and Roseann L. Demmert, 60, both of Klawock, Alaska, held commercial fishing permits and earned six-figure incomes in 2013 and 2014 from commercial fishing, on which they failed to timely pay the required income taxes due. In addition, from 2006 to 2012, the Demmerts also did not timely pay in full the taxes they owed to the Internal Revenue Service. As a result, the total tax loss to the IRS arising from their conduct is more than $300,000.
Chief U.S. District Judge Timothy M. Burgess scheduled sentencing for October 4, 2018. The Demmerts each face a statutory maximum sentence of two years in prison, as well as a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Schroder thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney Lori Hendrickson and Assistant U.S. Attorney Andrea Steward who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts can be found on the division’s website.
Alaskan Commercial Fishing Couple Plead Guilty to Willful Failure to Pay Taxes on Income Earned from FishingRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that an Alaskan couple pleaded guilty yesterday in Juneau for willfully failing to pay their individual income taxes.
Archie W. Demmert III, 57, and Roseann L. Demmert, 60, both of Klawock, Alaska, pleaded guilty yesterday before Chief U.S. District Judge Timothy M. burgess to two counts of willful failure to pay income tax. As part of the plea agreement, the Demmerts have agreed to jointly pay restitution to the IRS, which will be determined at sentencing.
According to court documents, Archie Demmert and Roseann Demmert both had commercial fishing permits for herring spawn on kelp, and Archie had an additional commercial fishing permit for a salmon purse seine. The Demmerts admitted in court that they earned income from commercial fishing but willfully did not pay their taxes for 13 separate tax years, for which they owed over $300,000, excluding penalties and interest.
The sentencing hearings have been scheduled for Oct. 4, 2018. The Demmerts each face a statutory maximum sentence of two years in prison, as well as a period of supervised release, restitution and monetary penalties.
IRS Criminal Investigation (IRS-CI) conducted the investigation which led to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney Andrea Steward and Trial Attorney Lori Hendrickson of the Tax Division.
Thursday 31 May 2018
Waterloo Man with Multiple Previous Convictions Sentenced to Federal Prison for Selling Crack CocaineRead the Press Release
A Waterloo man who had previously been convicted of more than 30 crimes as an adult and who trafficked crack cocaine was sentenced May 30, 2018, to more than 17 years in federal prison.
Samuel Landfair, age 39, from Waterloo, Iowa, received the prison term after a December 15, 2017, guilty plea to conspiracy to distribute crack cocaine, four counts of distribution of crack cocaine, and possession with intent to distribute crack near a protected location.
At the guilty plea, Landfair admitted selling crack cocaine on four separate occasions during November 2016 and possessing crack for the purpose of distributing it within 1,000 feet of George Washington Carver Academy in Waterloo, Iowa. Landfair’s criminal history includes more than 30 adult convictions, including a conviction for possession of a simulated controlled substance with intent to distribute and three separate convictions for possessing a controlled substance with intent to distribute.
Landfair was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Landfair was sentenced to 213 months’ imprisonment. He must also serve an 8-year term of supervised release after the prison term. There is no parole in the federal system.
Landfair 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 Attorney Emily K. Nydle 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 Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Iowa Division of Narcotics Enforcement, the Tri-County Drug Enforcement Task Force, the Waterloo Police Department, the Black Hawk County Sheriff’s Office, the Cedar Falls Police Department, the Cedar Rapids Police Department, the Iowa City Police Department, the Linn County Sheriff’s Office, and the Iowa State Patrol.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-2047.
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Waterloo Man Sentenced to Prison for Illegally Possessing a Gun with a Large Capacity MagazineRead the Press Release
A Waterloo man who possessed a loaded Springfield XD pistol with a sixteen round magazine was sentenced May 30, 2018, to more than five years in federal prison.
Durius Antwan Davis, age 26, from Waterloo, Iowa, received the prison term after a November 13, 2017, guilty plea to possession of a firearm by a felon. At the guilty plea, Davis admitted that he possessed the loaded Springfield XD pistol in January 2017. Davis had previously been convicted of willful injury causing serious injury in 2010 and robbery in 2011. The willful injury conviction stemmed from an incident where Davis shot another man in the abdomen multiple times.
Davis was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Davis was sentenced to 63 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Davis 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 T. Narayan and Emily K. Nydle and were investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Iowa Division of Narcotics Enforcement, the Tri-County Drug Enforcement Task Force, the Waterloo Police Department, the Black Hawk County Sheriff’s Office, the Cedar Falls Police Department, the Cedar Rapids Police Department, the Iowa City Police Department, the Linn County Sheriff’s Office, and the Iowa State Patrol.
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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-2049.
Follow us on Twitter @USAO_NDIA.
Waterbury Man Pleads Guilty to Federal Child Exploitation OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that HARRY BRIGHT, also known as “Buddy Bright,” 78, of Waterbury, waived his right to be indicted and pleaded guilty today in Hartford federal court to one count of distribution of obscene matter to a minor.
According to court documents and statements made in court, in November 2017, the National Center for Missing and Exploited Children (NCMEC) contacted Homeland Security Investigations (HSI) to report that NCMEC had been notified by Facebook’s Trust and Safety team that BRIGHT was enticing a 15-year-old female through Facebook instant messaging to engage in sexual activity, and was planning on traveling to the Philippines on December 4, 2017, to meet the minor victim. The investigation revealed that BRIGHT started communicating with the minor victim in late August 2017, sent her sexually explicit messages and requested that she send him nude photographs of herself. In September 2017, BRIGHT sent the minor victim nude pictures of himself.
The investigation further revealed that BRIGHT had engaged in sexually explicit conversations with at least two other 15-year-old females in the Philippines through Facebook, and that he sent one of those minor victims a nude picture of himself.
BRIGHT was arrested on a federal criminal complaint on December 4, 2017.
BRIGHT is scheduled to be sentenced by U.S. District Judge Michael P. Shea on September 11, 2018, at which time he faces a maximum term of imprisonment of 10 years. He is released on a $75,000 bond pending sentencing.
This matter is being investigated by Homeland Security Investigations and is be being prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
United States Attorney William M. McSwain Names Final Two Members of his Executive Management TeamRead the Press Release
Alison Kehner, who once clerked alongside U.S. Attorney McSwain for the Honorable Marjorie O. Rendell of the U.S. Court of Appeals for the Third Circuit, has joined the Office as Counsel to the U.S. Attorney. Kehner will report directly to the U.S. Attorney and will lead the Office’s effort to disseminate written material to the media and public. Kehner will also advise U.S. Attorney McSwain in a variety of areas and will be doing criminal case work.
“I am privileged to join the ranks of the dedicated and talented public servants in the U.S. Attorney’s Office for the Eastern District of Pennsylvania,” said Kehner. “The threats to our community are many, and I share U.S. Attorney McSwain’s commitment to always seeking justice for the people of the Eastern District.”
Most recently, Kehner was a senior lecturer in legal practice skills at the University of Pennsylvania. Prior to that, she was an assistant professor of legal methods at Widener University. Kehner has also served as a litigation associate at Dechert LLP. Prior to her clerkship for Judge Rendell, she clerked for the Honorable Morton I. Greenberg of the U.S. Court of Appeals for the Third Circuit, and for the Honorable Mary Cooper of the District of New Jersey. She graduated first in her class from Villanova University School of Law and received her undergraduate degree from the University of Delaware.
U.S. Attorney McSwain has also welcomed Clare Pozos back to the Office. Pozos, who has previously served as an Assistant U.S. Attorney in both Philadelphia and Washington D.C., will now serve as Senior Advisor to the U.S. Attorney. Pozos will advise the U.S. Attorney on new office initiatives and focus on strengthening Office relationships with law enforcement and community partners. Pozos will also assist the U.S. Attorney in his communications with the public and the media. In addition to her strategic role, she will also prosecute cases for the Criminal Division.
“The U.S. Attorney’s Office in the Eastern District of Pennsylvania is a national leader within the Department of Justice,” said Pozos. “From the devastating effects of the opioid crisis to the debilitating toll of public corruption, this Office is at the forefront of the most pressing issues facing our country. It is an honor to work with U.S. Attorney Bill McSwain, this entire Office, and our law enforcement partners to confront these challenges, and to protect our community here in the Eastern District.”
Pozos graduated from the University of Pennsylvania Law School after earning her undergraduate degree from Harvard College. After law school, Pozos clerked for the Honorable Michael M. Baylson of the Eastern District of Pennsylvania, and worked at Skadden, Arps, Slate, Meagher & Flom in Washington D.C.
Kehner and Pozos now join the other members of the executive management team: First Assistant U.S. Attorney Jennifer Williams, Deputy U.S. Attorney Louis Lappen, Criminal Chief Denise Wolf and Civil Chief Gregory David.
"I'm delighted that Clare and Alison have joined my leadership team,” said U.S. Attorney McSwain. “I have known them both for over a decade, and they are immensely talented lawyers with excellent judgment. They share my commitment to public safety, and I look forward to working with them on a daily basis. They will strengthen our Office and help us to better serve the citizens of this District."
United States Attorney Announces the Hiring of Three New Federal ProsecutorsRead the Press Release
U.S. Attorney Trent Shores announced today the appointment of Victor A. S. Regal, Thomas E. Duncombe, and Melody Noble Nelson as Assistant United States Attorneys in the Criminal Division of the United States Attorney’s Office for the Northern District of Oklahoma. As Criminal Division AUSAs, they will represent the United States of America in the prosecution of criminal cases. They are scheduled to be sworn in today at 3:00 p.m. at the United States District Courthouse by Chief United States District Court Judge Gregory K. Frizzell.
Mr. Regal joins the U.S. Attorney’s Office from the U.S. Air Force JAG Corps, where most recently he was an Area Defense Counsel. Previously, he served as a military prosecutor. Mr. Regal received his undergraduate degree from Harvard College and his J.D. from Harvard Law School.
Mr. Duncombe joins the U.S. Attorney’s Office from the Western District of Virginia, where he served as a Special Assistant United States Attorney specializing in narcotics and violent crimes prosecutions. Previously, he spent three years as an associate at Goodwin Procter LLP in Boston, Massachusetts, specializing in securities litigation. Mr. Duncombe received his undergraduate degree from Boston University and his J.D. from the Georgetown University Law Center.
Ms. Nelson rejoins the U.S. Attorney’s Office from the Eastern District of Oklahoma where she proudly served as an AUSA in the Criminal Division. Ms. Nelson has over 21 years of white collar prosecutorial experience. She received her undergraduate degree from the University of Central Arkansas and her J.D. from the William H. Bowen School of Law.
“I am excited that Victor, Tom and Melody have joined our team here at the Northern District of Oklahoma.” said U.S. Attorney Shores. “They each possess the talent, work ethic and experience to make a positive impact in our community and achieve our mission of enforcing the laws of the United States.”
Two Suburban Chicago Residents Charged with Illegally Selling Narcotics over the Internet; Law Enforcement Seizes WebsitesRead the Press Release
CHICAGO — Two suburban Chicago residents have been charged with federal drug offenses for illegally selling fentanyl or fentanyl precursors over the internet, and authorities have seized their websites.
LIANGFU “LARRY” HUANG used his company, Ark Pharm Inc., to sell controlled substances – including a fentanyl precursor – over the internet, despite not registering with federal or state authorities, according to a criminal complaint and affidavit filed in federal court in Chicago. Ark Pharm, which is based in Arlington Heights, Ill., offered various drugs for sale on its website (http://www.arkpharminc.com). Huang, 53, of Northbrook, Ill., was arrested Wednesday night after arriving at O’Hare International Airport in Chicago on a flight from China. He is charged with one count of conspiracy to knowingly and intentionally possess with intent to distribute, and to distribute, a controlled substance.
In a related case, WEI XU, also known as “Scarlett Hsu,” used her company, 1717 CheMall Corp., to illegally sell fentanyl and other controlled substances without registering with federal or state authorities, according to the complaint against her. 1717 CheMall Corp., which is based in Mundelein, Ill., offered various drugs for sale on its website (http://www.1717chem.com), including the opioids ocfentanil, oxycodone and hydrocodone, the complaint states. Visitors to the website could search for a drug and order it from the site’s “estore,” the complaint states. Xu, 52, of Vernon Hills, Ill., was arrested Wednesday. She is charged with one count of knowingly distributing a controlled substance.
Also Wednesday, law enforcement agents carried out court-authorized searches of Ark Pharm’s and 1717 CheMall’s businesses and seized their websites.
The charges were announced by Attorney General Jeff Sessions; John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; and Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago. Valuable assistance was provided by the U.S. Food and Drug Administration; U.S. Customs and Border Protection; Mundelein, Ill., Police Department; Arlington Heights, Ill., Police Department; Skokie, Ill., Police Department; Northern Illinois Police Alarm System (NIPAS); and Weapons of Mass Destruction Special Response Team North.
“Synthetic opioids killed 20,000 Americans in 2016--more than any other kind of drug," said Attorney General Sessions. “The vast majority of these drugs originated in China and then either shipped through the mail or smuggled across our porous Southwest Border. Under President Trump's strong leadership, the Justice Department has taken historic new steps to target Chinese drug traffickers, and today's indictments are our next step. I want to thank DEA, U.S. Attorney John Lausch, Assistant U.S. Attorney Devlin Su, our partners with CBP, IRS, and the FDA and especially our state and local law enforcement partners who helped make this possible. The Department of Justice will remain relentless in our efforts to keep these deadly drugs out of our country and finally put an end to this unprecedented drug epidemic.”
“The charges announced today are the result of an exhaustive and far-reaching investigation,” said U.S. Attorney Lausch. “Whether it’s online or on the streets, our office is committed to aggressively stopping the flow of illegal drugs.”
“Powerful pharmaceutical medications, fentanyl and fentanyl-related substances are creating a chokehold on our society,” said Special Agent-in-Charge McKnight. “Today’s enforcement actions send a clear message to those who utilize the internet to poison our communities: We will find you and you will be held accountable.”
“There is no room in the Chicagoland area for the illegal selling of fentanyl and other pharmaceuticals,” said Special Agent-in-Charge Grchan. “IRS Criminal Investigation is committed to using its resources and financial expertise to partner with all law enforcement agencies in order to keep our communities safe from the illegal distribution and usages of these and other dangerous drugs.”
Huang and Xu appeared today before U.S. Magistrate Judge Mary M. Rowland, who ordered them to remain in federal custody. A detention hearing is set for June 5, 2018, at 11:00 a.m.
According to the complaint, authorities at the U.S. border seized a dozen packages of crystal meth and other controlled substances that had been shipped from China to Ark Pharm’s headquarters. The shipments purported to contain routine goods such as plastic toys. From November 2016 to earlier this month, law enforcement surreptitiously corresponded with email accounts belonging to Ark Pharm, and conducted five undercover purchases of controlled substances from the company. The drugs were shipped via FedEx, often with Huang’s name listed as the sender, the complaint states.
Authorities performed similar controlled purchases of narcotics at 1717 CheMall Corp. from August 2017 to earlier this month. During the ordering process, agents corresponded via email and phone with Xu, who was using her “Scarlett Hsu” alias, according to the complaint. The drugs from 1717 CheMall were shipped via FedEx, with Xu’s name listed as the sender, the charges allege.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charges against Huang and Xu each carry a maximum sentence of 20 years. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Assistant U.S. Attorney Devlin N. Su represents the government.
Two Members of the Jacksonville City Council Indicted for Fraud and Money LaunderingRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Katrina Brown (37, Jacksonville) and Reginald Brown (56, Jacksonville) with one count of conspiracy to commit mail and wire fraud, twenty-six counts of aiding and abetting mail and wire fraud, and six counts of aiding and abetting money laundering. Each faces up to 20 years in federal prison for the conspiracy count and for each count of aiding and abetting mail and wire fraud; they face up to 10 years in federal prison for each count of aiding and abetting money laundering. The indictment also charges Katrina Brown with two counts of attempted bank fraud and two counts of making false statements to a federally insured financial institution; each count carries a maximum penalty of 30 years in federal prison. The indictment also charges Reginald Brown with failure to file a tax return; the maximum penalty for this charge is one-year imprisonment.
The indictment notifies both defendants that the United States intends to seek forfeiture of at least $754,613.10, which is alleged to be traceable to the offenses.
According to the
indictment , in late 2013, Katrina Brown began to operate as the primary principal for two businesses (Basic Products, LLC and CoWealth, LLC) that had obtained a loan from the Small Business Administration (SBA) in 2011 for $2.652 million, as well as a loan of $380,000 and grant of approximately $260,000 from the City of Jacksonville (COJ), to fund a business that specialized in manufacturing, bottling, and selling barbecue sauce.Katrina Brown’s family had been in the barbecue business in Jacksonville for many years. The loan/grant money was supposed to fund an expansion of Basic Products and help to create permanent manufacturing jobs in Northwest Jacksonville. Each time Katrina Brown sought money for Basic Products from SBA-approved lender BizCapital, she prepared a Loan Reimbursement Form that included the purported business expenses for which Basic Products sought reimbursement.
In late 2013, when the barbecue business was not meeting financial projections, Katrina Brown approached Reginald Brown about incorporating two businesses, A Plus Training and Consultants, LLC and RB Packaging, LLC, with the Florida Division of Corporations. Katrina Brown worked together with Reginald Brown to submit fake invoices from A Plus Training and RB Packaging to BizCapital claiming that the businesses performed work for Basic Products requiring reimbursement, when the businesses had not.
When BizCapital sent the reimbursement checks for A Plus Training and RB Packaging to Reginald Brown’s home, or his mother’s home, Reginald Brown deposited them into the bank accounts for the businesses. He then withdrew a significant portion of the funds and provided them back to Katrina Brown who, either kept them or deposited the funds back into the Basic Products bank account that she controlled.
During this process, from late 2013 to early 2015, Reginald Brown and RB Packaging served as a conduit to receive $251,919.04 in SBA loan proceeds from BizCapital, and then funneled at least $166,500.00 back to Basic Products. Reginald Brown kept the difference in the RB Packaging account and used the majority of the money for personal expenses.
Reginald Brown never filed a tax return for tax year 2014, and he failed to disclose to the IRS that he had received tens of thousands of dollars from the SBA.
In December 2014, BizCapital sent all of the loan draw information to the City of Jacksonville, which included the numerous fraudulent A Plus Training and RB Packaging invoices. This information induced the City of Jacksonville to send $210,549.99 in grant money to BizCapital for the intended use of Basic Products. Katrina Brown and Reginald Brown failed to inform BizCapital that Basic Products fraudulently obtained at least $251,919.04 in loan payments made to Reginald Brown’s shell companies (A Plus Training and RB Packaging).
After BizCapital informed Katrina Brown that the SBA loan was in default status in January 2015, she attempted to obtain two bank loans by submitting doctored and false bank statements to loan brokers seeking loans to infuse cash into her and her family’s businesses. She falsified the statements in an attempt to make it appear that the businesses were creditworthy, when in fact they were not.
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 Bureau of Investigation and the Internal Revenue Service - Criminal Investigation. It will be prosecuted by Assistant United States Attorneys Tysen Duva and Michael Coolican.
Two Las Vegas Residents Plead Guilty to Conspiracy to Commit Marriage FraudRead the Press Release
LAS VEGAS, Nev. – Two Las Vegas residents pleaded guilty in federal court to assisting others to enter into a sham marriage for the purpose of obtaining U.S. citizenship, announced U.S. Attorney Dayle Elieson for the District of Nevada and Assistant Special Agent in Charge Michael Harris for Homeland Security Investigations (HSI) in Las Vegas.
Jennifer Hamoy, 58, pleaded guilty today to one count of conspiracy to commit marriage fraud, and co-defendant Antonio Ybanez, 76, pleaded guilty on May 8, to the same criminal charge. United States District Judge James C. Mahan accepted their individual guilty pleas. A sentencing hearing for Hamoy and Ybanez are scheduled on August 30, and August 8, 2018, respectively. The maximum statutory penalty is five years in prison and a $250,000 fine.
According to the indictment and individual plea agreements, from December 10, 2013 to July 10, 2015, Hamoy and Ybanez conspired to assist others to enter into marriage for the purpose of evading U.S. immigration laws without intending to establish a life together as husband and wife. They arranged a sham marriage so that the non-citizen immigrant could obtain permanent resident status. The defendants instructed couples on how to make the marriage appear genuine by opening joint bank accounts, filing joint tax returns, obtaining driver’s licenses with the same address, and taking photos together.
In addition, Ybanez, who is not an attorney, introduced Hamoy as his paralegal who assisted him in filing fraudulent immigration paperwork with the U.S. Citizenship and Immigration Service (USCIS), which she did for a fee. They filed a visa petition and application that contained false and misleading statements to the USCIS for adjustment of citizenship status.
The case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Brandon Jaroch is prosecuting the case.
If you suspect someone is committing marriage fraud, contact the HSI Tip Line at 1-866-347-2423 or at www.ice.gov/tips. For more information on marriage fraud, visit https://www.ice.gov/identity-benefit-fraud.
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Two Cincinnati Individuals Sentenced for Conspiring to Sex Traffic a ChildRead the Press Release
CINCINNATI – Eric Zyn Ho, 25, and Bryan Mathew Otero, 27, of Cincinnati, were each sentenced in U.S. District Court today for their roles in the sex trafficking of a minor. Ho was sentenced to 30 years in prison, followed by 10 years of supervised release and Otero was sentenced to 10 years in prison, followed by 10 years of supervised release.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Union Township Police Chief Scott Gaviglia and other members of the FBI’s Child Exploitation Task Force announced the sentences imposed today by U.S. District Judge Susan J. Dlott.
In May 2017, the defendants conspired to harbor a 14-year-old female and caused her to engage in a commercial sex act.
Both defendants were charged by criminal complaint and arrested on May 4, 2017. They have remained in custody since. They were indicted by a federal grand jury in the same month.
In December 2017, Ho and Otero each pleaded guilty to one count of conspiracy to sex traffic a child. Ho also pleaded guilty to one count of conspiracy to produce child pornography.
Pursuant to the Child Victims’ and Child Witnesses’ Rights Act, additional specific details of the case remain under seal.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Union Township Police, as well as Assistant United States Attorney Kyle J. Healey, who is prosecuting the case.
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Two Brockton Men Sentenced for Trafficking Crack CocaineRead the Press Release
BOSTON – Two Brockton men were sentenced in federal court in Boston for drug trafficking charges.
Curtis Silva, a/k/a “Piff,” 31, was sentenced today by U.S. District Court Chief Judge Patti B. Saris to 10 years in prison and five years of supervised release. Mannie Myers, 39, was sentenced yesterday by Judge Saris to 35 months in prison and five years of supervised release. In September 2017, Silva and Myers each pleaded guilty to one count of conspiracy to distribute cocaine base, also known as crack cocaine.
During an investigation into a network of street gangs trafficking illegal firearms and drugs, investigators identified Luis Rivera as a Brockton-based source of supply for cocaine and cocaine base for members and associates of the Boylston Street Gang, as well as other drug dealers in Brockton, including Silva and Myers, who were repeat drug customers of, and distributors for, Rivera.
On May 17, 2018, Rivera was sentenced to 10 years in prison, five years of supervised release and ordered to pay a fine of $5,000.
The defendants are two of 53 defendants indicted in June 2016 on federal firearms and drug charges following an investigation into a network of street gangs that created alliances to traffic weapons and drugs throughout Massachusetts and to generate violence against rival gang members. According to court documents, the defendants, who are leaders, members, and associates of the 18th Street Gang, East Side Money Gang and the Boylston Street Gang, were responsible for fueling a gun and drug pipeline across a number of cities and towns in eastern Massachusetts. During the course of the investigation, over 70 firearms were seized.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; John Gibbons, U.S. Marshal for the District of Massachusetts; Maura Healey, Attorney General of Massachusetts; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Evans; Chelsea Police Chief Brian Kyes; and Brockton Police Chief John Crowley made the announcement today. The U.S. Attorney’s Office also acknowledges the assistance of the Suffolk and Middlesex County Sheriff Departments and the Malden, Revere and Everett Police Departments.
Three people indicted for illegally re-entering the U.S. after previous deportationsRead the Press Release
Three people were indicted in federal court for illegally re-entering the United States after previous deportations.
Indicted are: Jose Gregorio De Refugio Cruz, 50, a citizen of Mexico; Jermaine Willis, 39, a citizen of Jamaica; Saul Reyes-Murcia, 45, a citizen of El Salvador,
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.
These cases were investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, and U.S. Border Patrol. They are being handled by Assistant U.S. Attorneys Alissa M. Sterling, Brad Beeson.
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.
Three Pharmacists, a Doctor and Patient Recruiters Charged in a $9.6 Million Illegal Opioid Distribution ConspiracyRead the Press Release
An indictment was unsealed today charging three pharmacists, one doctor and two other individuals with conspiracy to illegally distribute prescription drugs, U.S. Attorney Matthew Schneider announced today.
Attorney General Jeff Sessions joined U.S. Attorney Schneider in the announcement, along with Michael Bouchard, Oakland County Sheriff, Special Agent in Charge Timothy J. Plancon, U.S. Drug Enforcement Administration, Detroit Field Division; Special Agent in Charge Manny Muriel, Internal Revenue Service, Criminal Investigations; and Special Agent in Charge Timothy R. Slater, Federal Bureau of Investigation, Detroit Division.
Charged in the indictment are:
Pharmacist Enitan Sodiya-Ogundipe, 42, of Novi
Pharmacist Amir Rafi, 49, of Farmington Hills
Pharmacist Abiodun Fabode, 56, of Chesterfield Township
Dr. Vasan Deshikachar, 50, of Boca Raton, Florida
Niesheia Tibu, 44, of Canton
Andrei Tibu, 30, of Canton
The indictment alleges that from January 2015 through March 2018, these pharmacists and doctor conspired with the other defendants to issue and dispense a large number of prescription opioids for supposed patients, who did not have a legitimate medical need for the drugs. Deshikachar primarily prescribed oxycodone and oxymorphone, two of the most addictive opioids that have high street value. The Tibus would take the supposed patients to Precare Pharmacy, Global Health Pharmacy and Friendz Pharmacy, where Sodiya-Ogundipe, Rafi and Fabode would dispense the drugs. The Tibus then obtained the drugs and sold them on the street.
According to the indictment, the pharmacies dispensed more than 344,737 dosage units of Schedule II opioid prescriptions during the course of the conspiracy. These controlled substances had a conservative street value in excess of $9,600,000.
“It's incredible but true that we have seen that some of our trusted doctors, pharmacists, and medical professionals have chosen to violate their oaths and exploit our unprecedented drug crisis for profit,” Attorney General Jeff Sessions said. “Last summer, I sent a dozen of our top federal prosecutors to focus solely on the problem of opioid-related health care fraud in places where the epidemic was at its worst—including Eastern Michigan. Under the leadership of U.S. Attorney Matthew Schneider, our prosecutors in the Eastern District of Michigan have already made great progress in this effort—and today we continue that progress. In this case, three pharmacists and one doctor allegedly conspired to distribute nearly $10 million worth of opioids into the community, potentially spreading addiction and causing untold damage to Michigan families. I want to thank the FBI, DEA, our fabulous prosecutors Brandy McMillion and Brant Cook, the IRS, the Oakland County Sheriff’s office and all of our state and local partners for their hard work on this case. As this indictment makes clear, we are determined to reduce opioid fraud and to ultimately end the drug epidemic.”
“Diversion of prescription pills to the street market is a direct cause of the current opioid epidemic facing our country,” U.S. Attorney Schneider said. “We are focusing on charging doctors, pharmacists and the networks that are contributing to the opioid problem in our district.”
“As we are in the midst of the worst opioid epidemic in our lifetime, it is important we team up with our federal partners and target those who peddle this death,” said Sheriff Michael J. Bouchard. “We will go after street dealers, physicians, and pharmacists who choose to violate the law. I am proud of this team who went after this illegal operation and held those responsible accountable for their dangerous criminal behavior.”
“Investigators uncovered the hidden layers of illegal pharmaceutical trafficking conducted by members of the Tibu organization,” stated Special Agent in Charge Plancon. “These dealers illegally prescribed and sold OxyContin and other opioids and will now be held responsible for the devastation caused to families in southeastern Michigan and beyond. The DEA will continue to target all large scale drug traffickers especially those contributing to the opioid epidemic in America.”
“IRS Criminal Investigation contributes our resources and financial expertise working together with our law enforcement partners to fight the opioid epidemic,” stated IRS-Criminal Investigation Special Agent in Charge Manny Muriel. “We will continue to fight this crisis, disrupting any financial benefit received from the sale of dangerous prescription drugs that plague our communities.”
Sodiya-Ogudipe was also charged with money laundering for engaging in monetary transactions with the criminal cash proceeds from her illicit pharmacy business.
This case is being prosecuted by Assistant United States Attorneys Brandy R. McMillion and A. Brant Cook. The Eastern District of Michigan is one of the twelve districts included in the Opioid Fraud Abuse and Detection Unit, a Department of Justice initiative created by Attorney General Sessions, that uses data to target and prosecute individuals that are contributing to the nation’s opioid crisis.
The case was investigated by special agents and task force officers of the DEA, the Oakland Country Sheriff’s Office, the Internal Revenue Service, and the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Men Sentenced to Prison for Crimes Involving Counterfeit Currency and FirearmsRead the Press Release
TUCSON, Ariz. – On May 29, 2018, Osmar Bustamante-Figueroa, 21, of Tucson, Ariz., was sentenced by U.S. District Judge Jennifer G. Zipps to 65 months’ imprisonment. Bustamante was the third of three defendants convicted of crimes involving producing and passing counterfeit U.S. currency and unlawfully possessing firearms. Bustamante’s co-defendants, Clinton Young, 43, of Irving, Texas, and Jose Manuel Valenzuela, 19, of Tucson, Ariz., had previously pleaded guilty and been sentenced to 15 and 16 months in prison, respectively, for conspiracy to pass or possess counterfeit currency.
Beginning in early 2016, Bustamante and Young began counterfeiting Federal Reserve Notes, which Bustamante and Valenzuela used to purchase firearms from private individuals selling firearms via online advertisements. Between March and June of 2016, Bustamante and his co-conspirators passed more than $50,000 worth of counterfeit currency to at least sixteen identified victims in exchange for various firearms. At the time of these transactions, Bustamante was under indictment on State (Arizona) felony drug charges.
The investigation in this case was conducted by the United States Secret Service and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Tucson Police Department. The prosecution was handled by Rosaleen O’Gara and Angela W. Woolridge, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-17-00486-TUC
RELEASE NUMBER: 2018-073_Bustamante-Figueroa etal
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Third Cuban National Sentenced to Prison for Identity Theft and Credit Card Fraud Scheme with 54 VictimsRead the Press Release
The third of three Cuban nationals who traveled across sixteen Iowa counties in 2017 and used at least fifty-four stolen identities and card numbers to make fraudulent purchases were sentenced to federal prison yesterday.
Liliany de Armas Mena, 21, resident of Kentucky, was sentenced to three years in prison after a guilty plea to conspiracy to commit access device fraud and aggravated identity theft. Pedro Alvarez Rodriguez, age 36, and Dunieski Santana Moreno, age 27, residents of Florida, were both previously sentenced in April to 42 months and 40 months in federal prison, respectively, after guilty pleas to the same offenses.
“Identity theft plagues Americans and financial institutions across the country and has a real impact on people’s everyday lives,” said United States Attorney Peter Deegan. “We will continue working with our law enforcement partners to protect innocent Iowans from these schemes and hold the perpetrators accountable.”
“This sentencing sends a strong message to those who attempt to defraud honest citizens and businesses in our communities without consequences.” said Tracy J. Cormier, Special Agent in Charge of HSI St. Paul. “I am proud of the work done by HSI special agents and the Waverly Police Department during this investigation and commend their efforts to put these criminals out of business.”
According to plea agreements and other information presented in court, de Armas Mena, Alvarez Rodriguez, and Santana Moreno perpetrated an identity theft and credit card fraud spree across the state of Iowa, using counterfeit credit cards containing at least fifty-four “skimmed” account numbers of victims. They used these fake cards to purchase gift cards and gift card reloads at Wal-Mart stores.
The scheme was designed to evade detection by moving across county borders to stay ahead of authorities, using self-checkout registers to make their repetitive transactions with multiple victims’ cards, and using locally “skimmed” numbers of mostly Iowa victims. De Armas Mena, Alvarez Rodriguez, and Santana Moreno visited Wal-Mart stores in West Burlington, Mount Pleasant, Ottumwa, Grimes, Altoona, Ames, Boone, Denison, Sioux City, Le Mars, Sioux Center, Spencer, Spirit Lake, Mason City, Cedar Falls, and Waverly over the span of only four days in January and February 2017. Alvarez Rodriguez had previously been convicted in 2015 of attempted robbery in Cuyahoga County, Ohio, after another incident at a Wal-Mart involving counterfeit cards and stolen account numbers. Santana Moreno had previously been convicted in 2015 of financial transaction card theft in Sumter County, South Carolina.
De Armas Mena was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand to 36 months’ imprisonment and two years of supervised release to follow. All three have been ordered to make $5,655.08 in joint and several restitution to victims. There is no parole in the federal system.
In sentencing the defendants, Chief Judge Strand condemned the “extremely disturbing” crimes, commenting that the defendants were parasites motivated by greed, who made the decision over and over to steal and make their livings off others’ hard-earned money.
De Armas Mena is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lyndie M. Freeman and investigated by Homeland Security Investigations and the Waverly Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2044.
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Tax Preparer Sentenced to Five Years in Prison for Filing Fraudulent ReturnsRead the Press Release
BIRMINGHAM - A federal judge today sentenced long-time tax preparer SANDRA LENORA GREEN, 61, of York, Ala., to five years and three months in prison for aiding and abetting the filing of false tax returns, announced U.S. Attorney Jay E. Town and Internal Revenue Service Criminal Investigation Special Agent in Charge Thomas J. Holloman.
“The federal government is funded by people who pay the taxes that they owe. When unscrupulous tax preparers like Green make their living filing false returns that seek unjustified payouts, they end up stealing money from the taxes paid by those Americans who follow the law,” Town said. “Tax crimes negatively impact every aspect of the public fisc, from national security to our interstates, and will not be tolerated.”
“Today’s sentencing is another example of what happens to abusive tax preparers who seek to produce false tax returns for higher client fees and refunds,” Holloman said. “IRS-Criminal Investigation will continue to serve the American taxpayer by ensuring unscrupulous tax preparers are brought to justice.”
Green pleaded guilty in November to her role in filing false tax returns in the names of three people, who were not charged. According to her plea agreement, Green falsely claimed credits and losses on clients’ tax returns in order to inflate the amount of the tax refund they would receive. By doing this, Green increased the profit for the tax-preparation service by increasing the number of clients or increasing the fees from clients. Green agreed to pay restitution of $247,174 to the IRS and admitted that her crimes involved actual or intended losses of $1.5 million to $3.5 million.
At the time of her guilty plea, U.S. District Judge L. Scott Coogler told Green not to prepare any tax returns other than her own between then and her sentencing date. During the sentencing hearing, the government presented evidence that Green had ignored the court order and had served as a tax preparer during this year’s tax-filing season – again submitting false tax returns in her clients’ names.
IRS-CI investigated the case, which Assistant U.S. Attorney Melissa K. Atwood prosecuted.
Stilwell Man Sentenced to 188 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that James Paul Brown, age 47, of Stilwell, Oklahoma, was sentenced to 188 months imprisonment and 5 years supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2), and 924(e)(1). The sentences on each count were ordered to run concurrently. The charges arose from an investigation by the District 27 Drug Task Force, the Stilwell Police Department, the Cherokee Nation Marshal Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on or about May 18, 2017, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance. Additionally the indictment alleged that the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, an FMK Firearms, Model 9C1G2, 9x19 caliber pistol, serial number BP3233, and a Yugoslavia, Model 59/66, 7.62x39 caliber rifle, serial number M-477781, firearms which had been shipped and transported in interstate commerce.
“It is not unusual to find weapons in the possession of people in the business of dealing methamphetamine. Firearms are a tool of the trade because drug distribution is inherently violent. The defendant in this case possessed methamphetamine and guns. Federal defendants, such as Brown, who possess firearms after having three convictions for a violent felony or a serious drug offense are sentenced as “armed career criminals” and face a mandatory minimum of 15 years imprisonment,” United States Attorney Brian J. Kuester said. “This investigation and resulting prosecution demonstrates how agencies tasked with public safety can maximize their efforts by working together. I commend the District 27 District Attorney’s Office and its Drug and Violent Crime Task Force, the Stilwell Police Department, the Cherokee Marshal Service, the ATF, and members of this office for working together to make our communities safer.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Christopher Wilson represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Springfield Man Sentenced for Crack Cocaine DistributionRead the Press Release
BOSTON – A Springfield man was sentenced today in federal court in Springfield for distributing crack cocaine.
Andrew Cruz, 26, was sentenced by U.S. District Court Judge Mark G. Mastroianni to three years in prison and three years of supervised release. On June 15, 2016, Cruz pleaded guilty to distribution and possession with intent to distribute cocaine base. He has been in custody since his arrest.
Cruz sold a cooperating witness cocaine base, also known as crack, on two occasions in July 2015.
Cruz is currently in custody on firearms and drug offenses charged in the District of Vermont. He faces two five-year mandatory minimum sentences, to be imposed consecutively, for distributing more than 28 grams of cocaine base, cocaine, and oxycodone – while possessing a 9mm Beretta handgun – and distributing heroin and cocaine base on two more occasions. The sentence imposed today will be served concurrent to whatever sentence is imposed in the pending cases in the District of Vermont.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Springfield Police Commissioner John Barbieri; and Holyoke Police Chief James M. Neiswanger made the announcement today. Assistant U.S. Attorney Todd Newhouse of Lelling’s Springfield Branch Office prosecuted the case.
Special Counsel’s Office Statement of Expenditures: October 1, 2017 – March 31, 2018Read the Press Release
Please find the link to the Special Counsel’s Office Statement of Expenditures, October 1, 2017 to March 31, 2018 HERE. This statement has also been provided to the Senate Committee on the Judiciary and the House Committee on the Judiciary, and the Senate and House Appropriations Committees.
Today’s statement reflects the Special Counsel’s spending within the approved budget. The Justice Management Division will conduct a similar review every six months. The next Statement of Expenditures will be released after September 30, 2018.Son of House-stealing Scheme Mastermind Sentenced to 119 Months in Federal PrisonRead the Press Release
PHILADELPHIA – Terrell Hampton who, along with his father and several other family members, defrauded the City of Philadelphia, the Commonwealth of Pennsylvania, and innocent owners and purchasers of Philadelphia real estate, was sentenced to 119 months in prison today, announced U.S. Attorney William M. McSwain.
Hampton, 37, along with his father Kenneth and other family members, stole vacant homes in Philadelphia that belonged to people who could not afford to defend their properties. Kenneth Hampton was convicted and sentenced to 200 months in prison in November.
At the direction of his father, who was in prison at the time, Terrell looked for vacant properties to target, created and filed fraudulent deeds, sought buyers for the stolen properties, and kept Kenneth apprised of scheme developments. They communicated through phone calls, emails, and letters, as well as through Kenneth’s fiancée, co-conspirator Roxanne Mason.
The participants in the scheme moved into the stolen properties under the cover of fake leases that purported to grant them the right to occupancy. They then found ways to profit from the stolen properties, either by selling the homes to good faith purchasers, by saddling them with debt, or by taking advantage of government programs designed to aid legitimate homeowners.
“This defendant stole from people who didn’t have the resources to fight back, often resulting in victim battling against victim, homeowner against good faith purchaser,” said U.S. Attorney McSwain. “He lived up to the low example set by his father, and I am proud that the talented case team has put both of them behind bars.”
The case was investigated by the United States Secret Service, Department of Homeland Security - Office of the Inspector General, Federal Bureau of Investigation, and the Office of the Inspector General, City of Philadelphia. The case was prosecuted by Assistant United States Attorneys Paul G. Shapiro and Sarah M. Wolfe