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Friday 25 May 2018
Myrtle Beach Man Pleads to Federal Firearm ChargeRead the Press Release
Florence, South Carolina ---- United States Attorney Sherri A. Lydon stated that Michael Jamal Grice, age 35, of Myrtle Beach, plead guilty this week in federal court to being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2), and 924(e). United States District Judge R. Bryan Harwell, of Florence, accepted the guilty plea and will impose sentence after he has reviewed the presentence report, which will be prepared by the United States Probation Office.
Evidence presented in court established that on June 1, 2017, an officer with the Myrtle Beach Police Department was on patrol when he observed Grice make an improper right-hand turn from Canal Street onto Highway 501. A traffic stop was conducted and upon approaching, the officer smelled the odor of marijuana coming from the vehicle. The vehicle was searched and police located a stolen Springfield 9mm handgun.
Grice is prohibited under federal law from possessing firearms and ammunition based upon his prior convictions. Grice has a prior state conviction for possession with intent to distribute marijuana and a prior federal conviction for possession of a firearm by a convicted felon.
Grice faces a maximum of 10 years imprisonment, a fine of $250,000, and 3 years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Myrtle Beach Police Department and was prosecuted as part of Project CeaseFire, a joint federal, state and local initiative focused upon aggressively prosecuting firearm cases in an effort to reduce violent crime and make our neighborhoods safer. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), a crime reduction strategy originally launched in 2001. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority and reinstituted PSN nationwide. Special Assistant United States Attorney David P. Caraker, Jr., of the Florence office handled the case. Caraker is employed by the Fifteenth Circuit Solicitor’s Office as a Senior Assistant Solicitor, and undertook this case in a joint effort with federal authorities to prosecute firearm cases.
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Morgan City man pleads guilty to not reporting more than $250,000 on tax returnRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that a Morgan City man pleaded guilty Wednesday to failing to report more than $250,000 in income on his 2012 tax return.
Victory Nam Ho, 39, of Morgan City, Louisiana, pleaded guilty before U.S. Magistrate Judge Carol Whitehurst to one count of filing a false tax return. The plea will become final when accepted by U.S. District Judge Elizabeth E. Foote. According to the guilty plea, Ho engaged in stock transactions and made $251,196 in 2012, but when he filed his taxes, he reported $14,742 as his income. As a result, he paid no income tax that year, which resulted in a loss of $69,167 to the U.S. Treasury.
The defendant faces up to three years in prison, one year of supervised release, restitution and a $100,000 fine. The court set an August 31, 2018 sentencing date.
The IRS conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger is prosecuting the case.
Michigan Man Charged with Multiple Counts of Heroin DistributionRead the Press Release
United States Attorney Gregory G. Brooker announced a federal indictment charging RAYMOND ANTHONY POOLE, 43, with multiple counts of heroin distribution. POOLE made his initial appearance on May 23, 2018, before Magistrate Judge Hildy Bowbeer in U.S. District Court in St. Paul, Minnesota.
According to the indictment, from April 1, 2016, through February 13, 2017, POOLE distributed and attempted to distribute more than 100 grams of heroin on the Leech Lake Indian Reservation.
This case is the result of an investigation conducted by the Leech Lake Tribal Police Department, the Paul Bunyan Drug Task Force, the Minnesota Bureau of Criminal Apprehension, the Bureau of Indian Affairs, the United States Postal Inspection Service, the Headwaters Safe Trails Task Force, and the Hennepin County Violent Offender Task Force.
Assistant United States Attorney Bradley M. Endicott is prosecuting this case.
Defendant Information:
RAYMOND ANTHONY POOLE, 43
Detroit, Mich.
Charges:
- Conspiracy to distribute heroin, 1 count
- Distribution of heroin, 5 counts
- Attempted distribution of heroin, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Memphis Man Sentenced to 20 Years in Federal Prison for Family Dollar RobberiesRead the Press Release
Memphis, TN – A Memphis man has been sentenced to 20 years in federal prison for committing two armed robberies affecting interstate commerce. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, on September 20, 2016, Tony Holmes, 24, used a sawed-off shotgun to rob two Family Dollar locations within three hours. There were several customers and employees at each location when Holmes robbed the stores.
Holmes pled guilty on March 1, 2018, to two counts of robbery affecting interstate commerce and one count of brandishing a short-barreled shotgun during a crime of violence.
U.S. Attorney D. Michael Dunavant said: "The violent crime rate in Memphis is unacceptably high. Business owners have a fundamental right to be safe from armed robbers who terrorize our communities with their lawlessness. This sentence sends a clear message that there will be a real and significant consequence for such violence, and we will no longer allow gun crime to rule our streets."
On May 24, 2018, U.S. District Judge John T. Fowlkes Jr., sentenced Holmes to 20 years imprisonment and five years supervised release to begin after incarceration.
The Safe Streets Task Force investigated this case.
Assistant U.S. Attorney Elizabeth Rogers prosecuted this case on the government’s behalf.
Massachusetts Woman Sentenced to 120 Months in Prison for Heroin TraffickingRead the Press Release
CONCORD –United States Attorney Scott W. Murray announced that Michell DeJesus, 38, of Lowell, Massachusetts was sentenced to 120 months in federal prison and five years of supervised release for participating in a heroin trafficking conspiracy.
Documents filed with the court established that DeJesus participated in a drug trafficking organization between April 2016 and September 2016. DeJesus took orders for heroin from customers in Massachusetts and New Hampshire and directed runners for the organization to make deliveries to those customers.
DeJesus previously pleaded guilty to conspiracy to distribute, and possess with intent to distribute, heroin.
“The distribution of heroin and other dangerous drugs presents a substantial risk to public safety,” said U.S. Attorney Murray. “We will continue to work collaboratively with our law enforcement partners to identity and prosecute those who profit from the sale of these deadly substances.”
“Opioid abuse is at epidemic levels in the Granite State,” said DEA Special Agent in Charge Brian D. Boyle. “Those responsible for distributing lethal drugs like heroin to the citizens of New Hampshire need to be held accountable for their actions. DEA is committed to aggressively pursuing Drug Trafficking Organizations or individuals who are coming from out of state to distribute this poison in order to profit and destroy people’s lives. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners.”
This matter was investigated by the DEA; Homeland Security Investigations; the Massachusetts State Police; the Haverhill Police Department; the United States Marshals Service; the New Hampshire State Police; the Manchester Police Department; the Lawrence Police Department; the Lowell Police Department, the Methuen Police Department, and the Hillsborough County Drug Task Force. The case was prosecuted by Assistant U.S. Attorney Donald Feith.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies
supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Maryland Man Sentenced to 16 Years in Prison for Killing Man in Southeast WashingtonRead the Press Release
WASHINGTON – Thomas Joyner, 23, of Greenbelt, Md., was sentenced today to a 16-year prison term for killing a man in broad daylight in September 2016 in Southeast Washington, U.S. Attorney Jessie K. Liu announced.
Joyner pled guilty in February 2018, in the Superior Court of the District of Columbia, to a charge of second-degree murder while armed. The plea, which was contingent upon the Court’s approval, called for a prison sentence of 16 years. The Honorable Danya A. Dayson accepted the plea and sentenced Joyner accordingly. Following completion of his prison term, Joyner will be placed on five years of supervised release.
According to the government’s evidence, at about 1:50 p.m. on Sept. 6, 2016, Joyner was in the area of the 2500 block of Pomeroy Road SE, and he was armed with a gun. Prior to the shooting, Joyner was coming down from the top of the stairs that led from Elvans Road to Pomeroy Road and got into an argument with the victim, Joe Cook, over a quantity of marijuana. Joyner than brandished his firearm and shot Mr. Cook in the back. After shooting Mr. Cook, Joyner walked past him, then turned and shot him several more times. Mr. Cook, 35, was unconscious when emergency personnel arrived on the scene and was pronounced dead a short time later at a hospital. An autopsy identified 16 different gunshot wounds on his body.
In the aftermath of the shooting, Joyner confessed to associates both verbally and on social media that he had shot Mr. Cook.
In announcing the plea, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Lornce Applewhite, Victim/Witness Advocate Diana Lim, and Assistant U.S. Attorney Lindsey Merikas, who investigated and prosecuted the matter.
Maryland Man Pleads Guilty to Charges in Shooting That Killed One Man, Wounded AnotherRead the Press Release
WASHINGTON – Demarius Jackson, 25, of Hyattsville, Md., pled guilty today to charges stemming from a shooting in Northwest Washington last year that killed one man and injured another, announced U.S. Attorney Jessie K. Liu.
Jackson pled guilty in the Superior Court of the District of Columbia to charges of voluntary manslaughter while armed and assault with a dangerous weapon. The plea, which is contingent upon the Court’s approval, calls for a sentence between 13 and 16 years in prison. The Honorable Danya A. Dayson scheduled sentencing for Aug. 10, 2018.
According to a factual proffer submitted at today’s hearing, the shooting took place at approximately 2:50 a.m. on Saturday, July 8, 2017. The shooting, in the 3500 block of Water Street NW, in the Georgetown area, followed a verbal altercation between the victims and the occupants of a vehicle. The vehicle was operated by an associate of Jackson’s. The interaction continued for about five minutes and concluded when Jackson walked up to one victim, Kennedy Amaya-Olivares, and shot him three times. He then chased after the other victim, shooting at him multiple times and striking him twice in the torso. Mr. Amaya-Olivares, 19, was shot once in the back of the head and once in the chest. He was pronounced dead a short time later.
Jackson was arrested on Sept. 12, 2017, in Morgantown, W. Va., and extradited to the District of Columbia. He has been in custody ever since.
In announcing the plea, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She expressed appreciation for the assistance provided by the Capital Area Regional Fugitive Task Force. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Lornce Applewhite, Victim/Witness Advocate Jennifer Allen, and Assistant U.S. Attorney Lindsey Merikas, who investigated and prosecuted the matter.
Maryland Man Found Guilty of 16 Charges in Domestic Dispute That Led to Police Pursuit Across Downtown WashingtonRead the Press Release
WASHINGTON – Anthony Smith, 29, of Oxon Hill, Md., has been found guilty by a jury of multiple charges stemming from a violent domestic dispute that led to a high-speed police pursuit last Labor Day weekend that continued along busy streets of the District of Columbia, U.S. Attorney Jessie K. Liu announced today.
Smith was found guilty on May 24, 2018, of seven counts of assault with a dangerous weapon, three counts of destruction of property, and one count each of unauthorized use of a motor vehicle during a crime of violence, felony threats, carrying a dangerous weapon, reckless driving, leaving the scene of a collision, and fleeing police. The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Milton C. Lee scheduled sentencing for July 27, 2018.
According to the government’s evidence, Smith and the victim were involved in a romantic relationship that ended in August 2017. They have a child in common. Between Aug. 30, 2017 and Sept. 1, 2017, Smith’s conduct led the victim to obtain a temporary protection order against him. Despite that order, on Sept. 1, 2017, Smith came to the victim’s home, kicked in the door, took her car keys, and stole her car, a Dodge Avenger.
Two days later, on the afternoon of Sunday, Sept. 3, 2017, the victim, desperate to get back her car, agreed to meet Smith at a restaurant in the 1600 block of North Capitol Street NW. When she got there, Smith refused to give her car back. He started to take off with the car, and the victim jumped into the back seat because she did not want to lose it again. While in the car, Smith tried to stab victim with a knife, while telling her, “Our daughter isn’t going to have a mother anymore.” She was able to break the knife and hop out of the moving car at New Jersey Avenue and K Street NW. There, she used a bystander’s phone to call 911.
One hour later, at approximately 3 p.m., officers with the Metropolitan Police Department (MPD) located Smith and the car at 5th Street and Rhode Island Avenue NE. When they tried to conduct a traffic stop, Smith took off. An MPD watch commander authorized a pursuit that continued for approximately 3.4 miles. During the chase, Smith caused four collisions, including striking a police officer who was involved in the pursuit. Smith was arrested at about 3:15 p.m. at 12th Street and Pennsylvania Avenue NW after he attempted an illegal turn into oncoming traffic and collided with a car carrying a woman and her two children. Smith has been in custody ever since.
In announcing the verdict, U.S. Attorney Liu commended the work of those who responded to and investigated the case from MPD’s First and Fifth Districts. She also expressed appreciation for the assistance provided by 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 Assistant U.S. Attorneys Sharon Marcus-Kurn, Mark O’Brien, Chrisellen Kolb, and Suzanne Curt; Paralegal Specialists Brenda Williams and D’Yvonne Key; Litigation Technology Specialists Anisha Bhatia, Ron Royal, and Paul Howell, and Victim/Witness Advocate Lu Lan.
Finally, she commended the work of Assistant U.S. Attorneys Bianca Forde and Ryan Creighton, who investigated and prosecuted the case.
Lawyer Who Helped Payday Lenders Collect Hundreds of Millions of Dollars in Unlawful Debt Sentenced to 8 Years’ Imprisonment and Fined $50,000Read the Press Release
PHILADELPHIA – A Delaware attorney who spent nearly a decade helping clients collect hundreds of millions of dollars in illegal payday loans was sentenced Friday to eight years in federal prison, fined $50,000 and ordered to forfeit more than $356,000 in criminal proceeds
Wheeler K. Neff, 69, of Wilmington, was convicted in November of racketeering, conspiracy, and fraud charges. A jury found that Neff and his co-defendant, Charles M. Hallinan, 77, of Villanova, conspired to collect more than $490 million in debt from small short-term loans that were commonly known as “payday loans,” because the customers were supposed to pay them back with their next paychecks.
U.S. District Judge Eduardo C. Robreno ordered Neff to report to prison in 45 days. Hallinan is scheduled to be sentenced on July 6, 2018.
Between 1997 and 2013, Hallinan owned, operated, and financed numerous companies that issued and collected debt from loans that had annual interest rates typically exceeding 780 percent. In Pennsylvania, it is a crime to charge more than 25 percent annual interest on such loans, and more than a dozen other states have interest rate limits of 36 percent or less.
“Payday loans prey on those who can least afford it. That’s why they are illegal in Pennsylvania and many other states,” said U.S. Attorney William M. McSwain. “This defendant has never shown a hint of remorse for his actions nor sympathy for his victims, and during trial he told one lie after another. Perhaps a sentence like this will give him time to seriously consider the lives he has impacted.”
Neff drafted sham contracts designed to give the false impression that Hallinan’s companies were owned by Indian tribes that could claim “sovereign immunity” from laws they did not like. In 2011 and 2012, Neff engaged in a similar scheme with another payday lender, Adrian Rubin, 61, of Jenkintown. In return, Neff received hundreds of thousands of dollars a year in legal fees.
“As an attorney, Mr. Neff should realize that a civilized society requires obedience to the law, including those laws he didn’t happen to like,” said U.S. Attorney McSwain.
Neff also helped Hallinan defraud nearly 1,400 people who had brought a class action lawsuit in Indiana against one of Hallinan’s companies. Neff conspired with Hallinan to make it appear that his company had no assets, employees, or officers, and was owned by an Indian chief living in Canada in order to entice the plaintiffs to accept a discounted settlement on their claims.
The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, and Internal Revenue Service Criminal Investigations. It is being prosecuted by Assistant United States Attorneys Mark B. Dubnoff and James Petkun.
Jefferson County Felon Solicited Others to Purchase Guns Since He Was Prohibited from Buying ThemRead the Press Release
PITTSBURGH, Pa. – A former resident of Jefferson County, Pennsylvania, pleaded guilty yesterday in federal court to charges of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
Peter Digiacomo, 31, formerly of Brockway, Pa., pleaded guilty to four counts before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that on various dates between July 2016 and March 2017, Digiacomo recruited straw purchasers to buy a total of 20 guns, and acquired one additional stolen gun which he later transferred to another individual. Digiacomo admitted to investigators that since he cannot purchase firearms due to prior convictions, including one for domestic violence, he solicited others to purchase firearms. The straw purchasers provided false information on federal forms in order to facilitate the purchase of the firearms. Due to his prior conviction, Digiacomo is prohibited from purchasing or possessing firearms.
Chief Judge Conti scheduled sentencing for August 30, 2018. The law provides, at each count, for a maximum sentence of not more than ten years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses, and the prior criminal history of the defendant.
Judge Conti ordered the defendant to remain detained pending sentencing.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime. The Bureau of Alcohol, Tobacco, Firearms and Explosives, along with a detective from the Allegheny County Sheriff’s Office, conducted the investigation leading to the Indictment in this case. Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
Inmate in Boone County Sentenced to 300 Months for Drug Trafficking that Resulted in Overdose DeathRead the Press Release
COVINGTON, Ky., — Chad H. Prodoehl, 35, of Independence, Ky., was sentenced today, to 300 months in federal prison, by United States District Judge David L. Bunning, for conspiracy to distribute carfentanil resulting in death.
Prodoehl was convicted in December 2017, following a three-day trial. The evidence at trial established that, while he was an inmate at the Boone County Jail work camp, in Burlington, Ky., Prodoehl conspired with others to smuggle drugs into the work camp. Prodoehl was permitted to leave the camp on work release; and on October 15, 2016, he brought drugs, including carfentanil, back to the camp and distributed them. Several inmates used the drugs and one inmate, Timothy Marcum, overdosed and died as a result.
Under federal law, Prodoehl must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), jointly made the announcement.
The investigation was conducted jointly by the DEA and Boone County Sheriff’s Department. The United States was represented by Assistant United States Attorneys Elaine K. Leonhard and Anthony J. Bracke.
Indiana Man Charged in SDTX with Laundering Proceeds of $7 Million International Investment Scam Through Used Car DealershipRead the Press Release
HOUSTON - An Indiana man was arrested yesterday in Indianapolis in connection with allegations he laundered the proceeds of an international advance-fee scheme through a used-car dealership he owned and operated. The scam allegedly involved false promises of investment funding by individuals impersonating U.S. bank officials to victims around the world, who were told they had to make certain payments before they could supposedly receive their funding. In some cases, the perpetrators allegedly met with the victims at local U.S. embassies or consulates and fabricated U.S. government documents to make the victims believe the U.S. government was sponsoring the investment agreements. Proceeds of the scheme were allegedly laundered through U.S. bank accounts and diverted back to the scheme’s perpetrators in Nigeria.
U.S. Attorney Ryan Patrick of the Southern District of Texas (SDTX), Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office and Inspector General Steve A. Linick of the U.S. Department of State made the announcement.
Tochukwu Nwosisi, 47, of Indianapolis, was charged in a superseding indictment filed in U.S. District Court for the Southern District of Texas with one count of conspiracy to launder monetary instruments and one count of concealment money laundering. The superseding indictment includes charges against five other individuals who were previously charged in an indictment filed in February 2018 in connection with the same scheme. Nwosisi made his initial appearance yesterday in the U.S. District Court in Indianapolis.
According to the superseding indictment, Nwosisi owned and operated a used car dealership in Indianapolis called Indyrides LLC. As part of his alleged involvement in the conspiracy, Nwosisi received international and domestic wire transfers from victims of the advance-fee scheme into his business bank accounts. The victims were under the impression that such payments were necessary to receive their investment funding. Nwosisi allegedly used the victims’ payments to, among other things, pay himself a portion of the funds and purchase vehicles that he then shipped to the scheme’s perpetrators in Nigeria. As banks closed his accounts for suspicious activity, Nwosisi continued to open new bank accounts to receive payments from victims.
The FBI and Department of State - Office of Inspector General conducted the investigation. SDTX Assistant U.S. Attorney (AUSA) Suzanne Elmilady is prosecuting the case along with Trial Attorney William E. Johnston of the Criminal Division’s Fraud Section. SDTX AUSA Kristine Rollinson is handling the forfeiture matters.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Indiana Man Charged with Laundering Proceeds of $7 Million International Investment Scam Through Used Car DealershipRead the Press Release
WASHINGTON – An Indiana man was arrested yesterday in Indianapolis in connection with allegations that he laundered the proceeds of an international advance-fee scheme through a used-car dealership he owned and operated. The scam allegedly involved false promises of investment funding by individuals impersonating U.S. bank officials to victims around the world, who were told they had to make certain payments before they could supposedly receive their funding. In some cases, the perpetrators allegedly met with the victims at local U.S. embassies or consulates and fabricated U.S. government documents to make the victims believe the U.S. government was sponsoring the investment agreements. Proceeds of the scheme were allegedly laundered through U.S. bank accounts and diverted back to the scheme’s perpetrators in Nigeria.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Ryan Patrick of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office and Inspector General Steve A. Linick of the U.S. Department of State made the announcement.
Tochukwu Nwosisi, 47, of Indianapolis, was charged in a superseding indictment filed in U.S. District Court for the Southern District of Texas with one count of conspiracy to launder monetary instruments and one count of concealment money laundering. The superseding indictment includes charges against five other individuals who were previously charged in an indictment filed in February 2018 in connection with the same scheme. Nwosisi made his initial appearance yesterday in the U.S. District Court in Indianapolis.
According to the superseding indictment, Nwosisi owned and operated a used car dealership in Indianapolis called Indyrides LLC. As part of his alleged involvement in the conspiracy, Nwosisi received international and domestic wire transfers from victims of the advance-fee scheme into his business bank accounts. The victims were under the impression that such payments were necessary to receive their investment funding. Nwosisi allegedly used the victims’ payments to, among other things, pay himself a portion of the funds and purchase vehicles that he then shipped to the scheme’s perpetrators in Nigeria. As banks closed his accounts for suspicious activity, Nwosisi continued to open new bank accounts to receive payments from victims.
The charges in the superseding indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI and Department of State Office of Inspector General. The case is being prosecuted by Trial Attorney William E. Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Suzanne Elmilady of the Southern District of Texas. Forfeiture is being handled by Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas.
Hedge Fund Founder Pleads Guilty to Fraud in Connection with Bribery of Former Correction Officers Union LeaderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today the guilty plea of MURRAY HUBERFELD to wire fraud conspiracy in connection with funds used to bribe the former president of the nation’s largest municipal correction officers union. Specifically, HUBERFELD, founder of the Platinum Partners hedge fund (“Platinum”), pled guilty to conspiring with an intermediary, Jona Rechnitz, to cause the fund to pay $60,000 to Rechnitz’s company by falsely representing that the money was payment for courtside tickets to eight New York Knicks basketball games. Instead, as HUBERFELD knew, the actual purpose of the payment was to reimburse Rechnitz for having paid Norman Seabrook, then-president of the Correction Officer’s Benevolent Association (“COBA”), for Seabrook’s efforts to get COBA to invest millions of dollars in Platinum. HUBERFELD pled guilty before U.S. District Judge Alvin K. Hellerstein.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Murray Huberfeld caused his former hedge fund to pay tens of thousands of dollars to a criminal partner in order to enable another crime – paying off the head of the correction officer’s union for the investment of millions of its members’ funds. We will continue to work with our law enforcement partners to fight fraud and corruption.”
According to the Superseding Information, Superseding Indictment, Indictment, and Complaint filed in this case, other public filings, statements made during the plea proceeding, and evidence and testimony presented at trial proceedings in October and November of 2017:
HUBERFELD was the founder of Platinum, a hedge fund that he continued to help operate unofficially even after his formal affiliation with the fund had ceased. In late 2013, HUBERFELD and Rechnitz, a real estate businessman who was an acquaintance of HUBERFELD, sought to attract public and institutional investors to the fund. At or around that time, Rechnitz told HUBERFELD that a contact of his – COBA President Norman Seabrook – would likely invest COBA’s money in Platinum. Over the next few months, Seabrook caused COBA to invest approximately $20 million of its funds into Platinum, including $15 million from a retirement benefits program funded by the City of New York that invests money for correction officers’ retirements.
In or around December 2014, arrangements were made to pay Seabrook personally for the millions of dollars the Union had invested over the course of that year. Rechnitz paid Seabrook $60,000 in cash, delivered to Seabrook in a men’s luxury handbag. HUBERFELD and Rechnitz then arranged for Platinum’s management company to receive a fraudulent invoice for $60,000 – generated by Rechnitz – that, on its face, billed Platinum for eight pairs of courtside tickets to New York Knick games given to Platinum by Rechnitz, who owned Knicks season tickets. In truth, and as HUBERFELD knew, the reason given to Platinum was false, and no Knicks tickets had changed hands. The real purpose of the payment was to reimburse Rechnitz, who had paid Seabrook for his efforts in securing COBA’s investments. Three days later, Platinum issued Rechnitz a $60,000 check.
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HUBERFELD, 57, of Lawrence, New York, pled guilty to one count of conspiracy to commit wire fraud. The charge carries a maximum term of five years in prison. HUBERFELD is scheduled to be sentenced on September 14, 2018. The maximum potential penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Trial against Seabrook, on charges of (i) conspiracy to commit honest services wire fraud, (ii) the substantive offense of honest services wire fraud, and (iii) the substantive crime of wire fraud with respect to COBA’s right to control its assets, is scheduled to commence on July 30, 2018, before Judge Hellerstein. As to Seabrook, the charges in the various charging instruments are merely allegations, and Seabrook is presumed innocent unless and until proven guilty.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation and the New York City Police Department, Internal Affairs Division.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Martin S. Bell, Russell Capone, and Lara Pomerantz are in charge of the prosecution.
Hawaii man sentenced to more than six years in prison for conspiracy to ship a ton of marijuana to Ohio from Hawaii, California and Oregon, and then launder the drug profitsRead the Press Release
A Hawaii man was sentenced to more than six years in prison for his role in a conspiracy to ship a ton of marijuana to Ohio from Hawaii, California and Oregon, and then launder the drug profits, law enforcement officials said.
William B. Murphy, 38, of Kealakekua, Hawaii, was sentenced to 80 months in prison. He previously pleaded guilty to conspiracy to distribute marijuana and conspiracy to launder money.
Murphy is the last of six people to be sentenced for their roles in the conspiracy. The others are: Michael W. Spellman, of Kealakekua, Hawaii, and formerly of Geauga County; Peter Reichert, of Lyndhurst; Dustin Robinson, of East Liverpool; Young Hee Park, of Broadview Heights, and So Young Park, of Kealakekua, Hawaii.
According to court documents:
Murphy grew marijuana in Hawaii and procured marijuana in Hawaii, California and Oregon and had it shipped to people in Ohio.
Michael Spellman packaged the marijuana inside five-pound foil coffee bags, which also contained loose coffee beans, and mailed them to various addresses in Northeast Ohio, including a location in Shaker Heights. Murphy paid Spellman $100 for each package he mailed.
Reichert received packages of marijuana in Northeast Ohio, including in Chester Township, mailed from Hawaii, California and Oregon, for further distribution. Robinson received packages of marijuana in Pennsylvania mailed from Hawaii and California.
Robinson also mailed bulk cash to Spellman from East Liverpool. Murphy and Spellman had drug profits mailed to them at several post office boxes in Hawaii and California.
Young Hee Park received cash payments in Ohio from various marijuana customers and then mailed the cash to Murphy in Hawaii. Park mailed the packages containing cash from 25 different post offices in Northeast Ohio to avoid suspicion.
Spellman opened a bank account at Fifth Third Bank in Mentor. He and Murphy directed people in Ohio to deposit cash into the account from at least 15 different bank branches, in order to avoid detection. They used a similar arrangement with accounts opened at PNC Bank.
The defendants deposited at least $348,000 in cash into the accounts between 2014 and 2016. They used the accounts to pay for living expenses and other purchases, including airline tickets from flights between Cleveland and Hawaii totaling $40,959; drones from Drones, Inc. totaling $13,062; a greenhouse in Hawaii for $10,632; a Honda ATV for $11,170, and other purchases.
Overall, Murphy, Spellman and the other conspirators caused approximately 1,113 packages containing marijuana to be shipped to Northeast Ohio between 2014 and 2016. Additionally, they caused approximately 965 packages containing bulk cash to be mailed from Ohio to Hawaii, California and Oregon.
Spellman was previously sentenced to 34 months in prison. Reichert was sentenced to 20 months in prison. Robinson was sentenced to 28 months in prison
“This group mailed thousands of pounds of marijuana to Greater Cleveland from the West Coast and then laundered nearly $350,000 in drug profits,” U.S. Attorney Justin Herdman said. “The leaders of this conspiracy paid for a lavish lifestyle with drug money, but now it will cost them federal prison.”
“From coast to coast the IRS will take every step to ferret out those who attempt to launder the proceeds of illegal drug profits,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations.”
This case is being prosecuted by Assistant U.S. Attorney Aaron Howell following an investigation by the Drug Enforcement Administration, U.S. Postal Inspection Service, Internal Revenue Service and the Lake County Narcotics Agency.
Hancock County woman sentenced for making a false statementRead the Press Release
WHEELING, WEST VIRGINIA – Nichole P. Northcraft, of New Cumberland, West Virginia, was sentenced to six months probation for making a false statement when applying to the United States Small Business Administration (SBA) Small Business and Capital Ownership Development Program, United States Attorney Bill Powell announced.
Northcraft, 44, pled guilty to one count of “False Official Writings.” Northcraft, as a minority, made a false claim about business ownership to benefit from the SBA’s program in February 2018.
The Small Business Administration operates programs to assist socially or economically disadvantaged business operators. The businesses must be unconditionally owned and controlled by the qualifying individuals in order to comply with federal law.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The U.S. Small Business Administration Office of Inspector General, the Defense Criminal Investigative Service, the U.S. Department of Veterans Affairs Office of Inspector General, the U.S. Department of Labor Office of Inspector General, and the Federal Bureau of Investigation investigated.
U.S. District Judge John Preston Bailey presided.
Grand Jury Indicts Man on Federal Carjacking and Firearm Charges for Allegedly Stealing Vehicles at Gunpoint in ChicagoRead the Press Release
CHICAGO — A federal grand jury has indicted a Chicago man on carjacking and firearm charges for allegedly stealing multiple vehicles at gunpoint last month.
EARRIOUS MOORE, 24, stole three cars, attempted to steal two others, and twice discharged a handgun during a series of crimes in Chicago on April 26, 2018, according to a ten-count indictment returned Thursday. The indictment charges Moore with three counts of carjacking, two counts of attempted carjacking, three counts of using, carrying and brandishing a firearm during a crime of violence, and two counts of discharging a firearm during a crime of violence.
Moore was originally charged in a criminal complaint last month. The firearm charges in the indictment each carry a maximum sentence of life in federal prison, while each attempted carjacking is punishable by up to 25 years due to the alleged firearm discharge during the attempts, and each carjacking by up to 15 years. Arraignment in U.S. District Court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Eddie Johnson, Superintendent of the Chicago Police Department; and Celinez Nunez, Special Agent in Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives.
The case was investigated by the Vehicular Hijacking Task Force, a joint federal and state initiative consisting of officers, agents and prosecutors from the U.S. Attorney’s Office, Chicago Police Department, ATF, Federal Bureau of Investigation, Cook County State’s Attorney’s Office, Illinois State Police, and suburban police departments.
“Carjacking is a senseless act of violence that has no place in our society,” said U.S. Attorney Lausch. “Our office is committed to working closely with CPD, ATF and other law enforcement partners to pursue and prosecute violent offenders. The carjacking and gun charges announced today are the direct result of that strong partnership.”
“Today's federal indictment sends a very clear message of just how serious we are taking carjackings throughout Chicago,” said Superintendent Johnson. “U.S. Attorney Lausch continues to be a formidable partner to the Chicago Police Department and shares our commitment and dedication to holding individuals accountable and keeping our streets safe.”
“There is no place in our society for violent criminals targeting innocent people,” said Special Agent-in-Charge Nunez. “Chicago is a great city. Citizens and visitors have the right to feel safe and ATF will continue to work closely with the United States Attorney’s Office and our law enforcement partners to restore peace and bring violent criminals to justice.”
According to the indictment, Moore carjacked two sport-utility vehicles and a sedan, and attempted to carjack two other vehicles. He brandished a loaded .40-caliber pistol during all three carjackings, and he discharged the pistol during the two attempted carjackings. In the final attempted carjacking, an individual sitting in a Mercedes-Benz in the 1400 block of North Lake Shore Drive was shot and wounded and subsequently treated at a hospital, according to the criminal complaint previously filed in the case. Moore ran away from that vehicle and was apprehended by Chicago Police Department officers in the lobby of a nearby building, the complaint states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Matthew L. Kutcher.
Goldsboro Man Arrested for Distribution of Fentanyl Which Resulted in DeathRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that DONTE TERRILL KORNEGAY, A/K/A “BOSTON,” was arrested yesterday, May 24, 2018.
KORNEGAY was named in an Indictment filed on May 22, 2018, charging him with distribution of fentanyl resulting in serious bodily injury and death, and conspiracy to distribute and possess with the intent to distribute heroin and fentanyl. If convicted of the distribution of fentanyl resulting in death charge, he would face a minimum term of imprisonment of 20 years and a maximum term of imprisonment of life, a $1,000,000 fine, and a term of supervised release following any term of imprisonment.
Mr. Higdon commented: “The United States Justice Department and the United States Attorneys’s Office are aggressively pursuing distributors of heroin and fentanyl. These drugs pose a serious danger to the people of Eastern North Carolina and we intend to remove that danger as part of our effort to “Take Back North Carolina” from the drug traffickers and violent criminals.”
The charges and allegations contained in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
Investigation of this case is being conducted by the Onslow County Sheriff’s Office with assistance from the Drug Enforcement Administration’s Wilmington Resident Office. Assistant United States Attorney Lawrence J. Cameron is representing the government.
Former Employee Charged with Defrauding HondaRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Charles Michael Stratton, 61, of Fairborn, Ohio, with multiple counts of wire fraud and money laundering in an indictment returned here yesterday and filed today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges.
According to the indictment, Stratton served as the Facilities Manager for Honda of America Manufacturing, Inc. in Marysville, Ohio from 2008 until March 2015. In his role, he oversaw various vendor contracts, including those for security services, janitorial services, food service and uniform/laundry on behalf of Honda.
Acrux Investigation Agency, located in Lakeview, Ohio, provided physical and personal security services for Honda. Surmount, also located in Lakeview, was a subsidiary of Acrux and provided monitoring services to Honda.
It is alleged that Stratton executed a scheme to defraud Honda using Acrux and Surmount by creating multiple purchase orders for payments in amounts just under $100,000, a threshold in which additional oversight and approval is required. Using these purchase orders, as well as the main labor contract, Stratton allegedly caused Acrux and Surmount to submit false invoices to Honda and instructed them to keep the money in a “future fund.” Money allocated to the future fund was then used, in part, to pay Stratton directly or through his organization, SAFE. Springfield Area Fastball Elites, Inc. (SAFE) was an Ohio non-profit created by Stratton to support local baseball teams; however, SAFE lost its classification as a 501(c)(3) in 2010.
Stratton is also charged with defrauding at least three other Honda vendors through the solicitation of donations for SAFE between 2012 and 2014, when it no longer held its tax-exempt status. Stratton received multiple donation checks, which he would either deposit in part to the SAFE bank account, while keeping a portion of the donation in cash for himself, or deposit the donation check entirely into his personal account. Only a fraction of the funds received through donations were actually spent in furtherance of SAFE’s mission.
Stratton is charged with 38 counts of wire fraud and six counts of money laundering. Wire fraud is punishable by up to 20 years in prison and money laundering carries a potential maximum sentence of 10 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI, and Assistant United States Attorneys Jessica W. Knight and Peter K. Glenn-Applegate, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Former Child Psychologist Sentenced to 78 Months in Prison for Possession of Child Pornography and Contempt of CourtRead the Press Release
OAKLAND – Kenneth Allen Breslin was sentenced today to 78 months in prison for possessing child pornography and contempt of court, announced Acting United States Attorney Alex G. Tse and Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin. The sentence was handed down by the Honorable Yvonne Gonzalez Rogers, U.S. District Judge, following the entry of a guilty plea on March 1, 2018.
According to his guilty plea, Breslin, 69, of Berkeley, Calif., admitted to possessing well over 600 images and videos of child pornography on a variety of electronic devices at his former Lafayette residence and former psychology office in Orinda, including visual depictions of prepubescent children being subjected to sadistic conduct. While released on bond in this case, Breslin, a former child psychologist, also admitted possessing over 300 images and videos of child pornography, with some files depicting prepubescent children being subjected to sadistic conduct.
Further, Breslin admitted he willfully violated conditions of his pretrial release in this case. As a condition of his release, U.S. Magistrate Judge Jacqueline Corley ordered Breslin not to use a computer or access the internet. Nevertheless, Breslin: repeatedly accessed the internet through an Apple iPhone 6; used a laptop computer to access and possess child pornography images and videos; and used a thumb drive to access and possess child pornography material. Breslin was eventually detained pending trial in this case following his violations of pretrial release.
“We applaud today’s sentence as a reflection of our work to seek justice and protect the most vulnerable members of our community,” said Acting U.S. Attorney Tse. “These cases would not succeed but for the cooperation of many of our law enforcement partners. We are grateful to Homeland Security Investigations, the Contra Costa County District Attorney’s Office, and the Silicon Valley Internet Crimes Against Children Task Force.”
“A lengthy prison sentence is appropriate for these crimes, which involve repeatedly and willfully violating the law,” said Special Agent in Charge Spradlin. “What’s most disturbing about this particular case is that Breslin was in a position of public trust as a psychologist and had worked extensively with children in the past. HSI will do whatever it takes to continue investigating these types of crimes to hold people accountable for children being victimized here or abroad.”
On January 18, 2018, a federal grand jury returned a three-count superseding indictment charging Breslin with two counts of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B), and one count of criminal contempt of court, in violation of 18 U.S.C. § 401(3).
In addition to the prison term, Judge Gonzalez Rogers ordered Breslin to serve a 5-year period of supervised release following his custodial sentence. Breslin voluntarily agreed to pay restitution totaling $85,000 to 13 victims in this case, and agreed to deposit that money into the court’s registry prior to his guilty plea, so that the victims will receive the money even while Breslin is serving his sentence. Further, as part of his release conditions, Judge Gonzalez Rogers ordered Breslin to register as a sex offender and participate in sex offender-specific treatment.
Breslin has been in custody since he was remanded due to his pretrial release violations in September of 2017, and he will begin serving the sentence immediately.
Assistant U.S. Attorney Christina McCall is prosecuting the case with assistance from Vanessa Quant. The prosecution is the result of an investigation by HSI, the Contra Costa County District Attorney’s Office, and the Silicon Valley Internet Crimes Against Children Task Force.
Florida Man Pleads Guilty to Identity Theft and Fraud in Scheme Involving Fake Purchases at Fictitious RestaurantsRead the Press Release
BOSTON – A Florida man, who now resides in Melrose, pleaded guilty today in federal court in Boston to making fraudulent charges using stolen credit card information for purchases at fictitious restaurants that he and his co-conspirators created, all in an effort to defraud the credit card processing companies who paid the fraudulent charges.
Charles J. Pedoto, 67, formerly of Naples, Fla., pleaded guilty to one count of conspiracy to commit access device fraud, two counts of access device fraud and one count of aggravated identity theft. U.S. District Court Judge Indira Talwani scheduled sentencing for Sept. 6 2018.
From April 9, 2014 to May 14, 2014, Pedoto and his coconspirators created fictitious restaurants, including Marshalls Steakhouse, Carroll Steak, Richards Steakhouse, MJ Fox Pub, and Robertson Steak, and opened bank accounts in the names of these fictitious restaurants. Pedoto and his coconspirators obtained stolen credit and debit card account numbers and information and then created counterfeit access devices (i.e. debit and credit cards) by re-encoding the magnetic strips from the cards. They then charged purchases at their fictitious restaurants and submitted the fraudulent transactions to credit card processing companies. After the fraudulent transactions were processed and the funds were transmitted to the restaurants’ accounts, Pedoto and his coconspirators withdrew the funds and mailed the proceeds for later pick-up by Pedoto under a fraudulent Massachusetts identification card in the name of Francis P. Rosen.
On May 9, 2014, law enforcement conducted a trash pull at Pedoto’s Naples, Fla., residence, which revealed multiple receipts indicating numerous credit card charges made at the fictitious Robertson Steak. The trash pull also revealed a white plastic card that had two credit card numbers encoded on the magnetic strip, one of which had a fraudulent charge to Carroll Steak and the other a fraudulent charge to Robertson Steak. Two credit card processing companies suffered losses totaling $160,395.
The charge of conspiracy to commit access device fraud provides for a sentence of no greater than five years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of access device fraud provides for a sentence of no greater than 10 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence imposed, one year of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; and Jeff Kelly, Resident Agent in Charge of the U.S. Secret Service, Fort Myers Resident Office made the announcement today. Assistant U.S. Attorney Sandra S. Bower of Lelling’s Major Crimes Unit is prosecuting the case.
Five Men Plead Guilty to Federal Charges Following Investigation of Drug Sales in Southwest WashingtonRead the Press Release
WASHINGTON –Five people, all from Washington, D.C., have pled guilty to federal charges following an investigation into the distribution of drugs near a recreation center in Southwest Washington.
The guilty pleas, in the U.S. District Court for the District of Columbia, were announced by U.S. Attorney Jessie K. Liu, Thomas L. Chittum III, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
The pleas followed an investigation targeting drug sales in the area near the King Greenleaf Recreation Center, in the 200 block of N Street SW. The investigation began in early 2017 after authorities noticed an increase in drug sales and violent activity in the area, which is in MPD’s First Police District. According to the government’s evidence, in addition to the area near the recreation center, drug sales took place in various alleys and corners, including near a church in the 1300 block of First Street SW, near a food market in the 1300 block of Half Street SW, and near a convenience store in the 1100 block of South Capitol Street SW.
The drug trafficking activity admitted to by the defendants took place within a one-block radius of the corner of Half Street SW and Q Street SW, one block west of Nationals Stadium.
Those pleading guilty include
Raymond Boston 26. He pled guilty on May 16, 2018, to one count of conspiring to distribute PCP and faces a statutory maximum of 20 years in prison.
Damion Littman, 32. He pled guilty on May 21, 2018, to one count of distribution of PCP and also faces a statutory maximum of 20 years in prison.
Morriko Washington, 24. He pled guilty on May 22, 2018, to one count of possession of a firearm in furtherance of a drug trafficking crime. He faces a mandatory sentence of five years and a statutory maximum of life in prison.
Jerome Fuller, 33. He pled guilty on May 22, 2018, to one count of distribution of PCP and faces a statutory maximum of 20 years in prison.
Kione Banks, 20. He pled guilty on May 23, 2018, to one count of conspiring to distribute PCP and faces a statutory maximum of 20 years in prison.
According to court documents, Boston sold $1,500 worth of PCP and heroin on behalf of co-defendant Antonio Spencer on June 21, 2017. Boston was also in possession of crack cocaine when he was arrested on March 22, 2018. Littman sold both PCP and crack cocaine on Feb. 24, 2017. Washington sold more than 100 grams of PCP on four separate occasions in August, October, and November of 2017. Washington was also in possession of a firearm and additional crack cocaine when he was arrested on March 22, 2018. Court documents relating to Fuller stated that he sold crack cocaine and PCP on July 20, 2017 and Aug. 10, 2017. According to court documents, Banks sold $1,300 worth of PCP and crack cocaine on behalf of Spencer on May 12, 2017
Three defendants remain charged and all have pled not guilty. They include Antonio Spencer, 24, his brother, Maurice Spencer, 19, and Davon Warren, 21, all of Washington, D.C.
In announcing the pleas, U.S. Attorney Liu, Special Agent in Charge Chittum, and Chief Newsham commended the work of those who investigated the case from the ATF and MPD. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Legal Assistant Katie Cowley. Finally, they commended the work of Assistant U.S. Attorneys Kevin L. Rosenberg and William Schurmann of the Violent Crime and Narcotics Trafficking Section, who are investigating and prosecuting the matter.Five 69’er Motorcycle Club Members Indicted on Federal Racketeering ChargesRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Christopher Brian Cosimano, a/k/a “Durty,” (30, Gibsonton), Michael Dominick Mencher, a/k/a “Pumpkin,” (51, Tarpon Springs), Allan Burt Guinto, a/k/a “Big Beefy,” (27, Brandon), Erick Richard Robinson, a/k/a “Big E,” (45, Zephyrhills), and Cody James Wesling, a/k/a “Little Savage,” (27, Riverview) with multiple violent crimes in aid of racketeering activity, including conspiracy, murder, and assault with a dangerous weapon. They have also been charged with firearms offenses and narcotics trafficking. If convicted of all charges, Cosimano, Mencher, Guinto, and Wesling each face a maximum penalty of life in federal prison. If convicted of all charges, Robinson faces a maximum penalty of 20 years in federal prison. Robinson and Wesling were arrested yesterday and will make their initial appearances today at 2:00 p.m. before United States Magistrate Judge Anthony Porcelli. Cosimano, Mencher, and Guinto are currently in state custody and will make their initial appearances on a later date.
According to the indictment, Cosimano, Mencher, Guinto, Wesling, and Robinson were members of the 69’ers Motorcycle Club, a criminal organization whose members and associates engaged in acts of violence and narcotics distribution. On December 21, 2017, Cosimano, Mencher, Guinto, and Wesling shot and killed Paul Anderson, the president of the Cross Bayou Chapter of the Outlaws Motorcycle Club. Cosimano also shot and wounded James Costa, the president of the St. Petersburg Chapter of the Outlaws Motorcycle Club, on July 25, 2017.
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 Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pasco Sheriff’s Office, the Hillsborough County Sheriff’s Office, the Tampa Police Department, the Pinellas County Sheriff’s Office, the St. Petersburg Police Department, and the State Attorney’s Office for the Sixth Judicial Circuit. It will be prosecuted by Assistant United States Attorneys Carlton C. Gammons and Natalie Hirt Adams.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Federal Jury Convicts Five Syndicato de Nuevo Mexico Prison Gang Members on Racketeering ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Las Cruces, N.M., returned a verdict today finding five defendants guilty of participating in a violent racketeering enterprise known as the Syndicato de Nuevo Mexico (SNM) Prison Gang following a seven-week jury trial before U.S. District Judge James O. Browning. Joe Lawrence Gallegos, 48, of Los Lunas, N.M., Edward Troup, 46, of Albuquerque, N.M., Billy Garcia, 63, of Albuquerque, N.M., Arturo Arnulfo Garcia, 38, of Denver, Colo., and Andrew Gallegos, 50, of Los Lunas, N.M. Two defendants, Allen Patterson, 47, of Silver City, N.M., Christopher Chavez, 42, of Albuquerque, N.M., were acquitted of the charges against them.
The seven defendants and 23 co-defendants were charged with racketeering offenses in a 15-count superseding indictment filed in April 2016. Three of the 23 co-defendants were convicted and a fourth was acquitted on racketeering charges on March 12, 2018, during an earlier federal trial, and 17 others have entered guilty pleas. The remaining co-defendant is a fugitive. A subsequent second superseding indictment added a witness tampering charge against certain defendants.
On April 9, 2018, trial commenced against Joe Lawrence Gallegos, Edward Troup, Billy Garcia, Allen Patterson, Christopher Chavez, Arturo Arnulfo Garcia, and Andrew Gallegos on the superseding indictment, which charged the seven defendants with committing the following offenses for the purpose of gaining entrance into and maintaining and increasing their stature within the SNM prison gang:
- Count 1 – Joe Lawrence Gallegos, Edward Troup and Billy Garcia with murdering a person identified as F.C. on March 26, 2001, in Dona Ana County;
- Count 2 – Christopher Chavez, Allen Patterson and Billy Garcia with murdering a person identified as R.G on March 26, 2001, in Dona Ana County;
- Count 3 – Edward Troup, Arturo Arnulfo Garcia with murdering a person identified as F.S. on June 17, 2007, in Dona Ana County;
- Count 4 – Joe Lawrence Gallegos and Andrew Gallegos with conspiring to murder a person identified as A.B. on Nov. 12, 2012, in Socorro and Valencia Counties;
- Count 5 – Joe Lawrence Gallegos and Andrew Gallegos with murdering a person identified as A.B. on Nov. 12, 2012, in Socorro and Valencia Counties;
- Count 13 – Joe Lawrence Gallegos with assaulting with a dangerous weapon a person identified as J.G. on March 17, 2015, in Valencia County;
- Count 14 – Joe Lawrence Gallegos with conspiring to murder a person identified as J.G. between Feb. 1, 2016 and Feb. 27, 2016, in Otero and Valencia Counties; and
- Count 15 – Joe Lawrence Gallegos with attempting to murder and with assaulting with a dangerous weapon and causing serious bodily injury a person identified as J.G. on Feb. 27, 2016, in Valencia County.
- Count 16 – Joe Lawrence Gallegos with witness tampering.
The trial concluded this afternoon when the jury returned a verdict finding Edward Troup, Billy Garcia, Arturo Arnulfo Garcia and Andrew Gallegos guilty on the charges against them. The jury found Joe Lawrence Gallegos guilty on Counts 1, 4 and 5, and acquitted him on Counts 13, 14, 15 and 16. The jury acquitted Allen Patterson and Christopher Chavez on the charges against them.
At sentencing, Joe Lawrence Gallegos, Edward Troup, Billy Garcia, Arturo Arnulfo Garcia and Andrew Gallegos each face a statutory maximum penalty of life imprisonment. The defendants will remain in custody pending their sentencing hearings, which have yet to be scheduled.
This case was investigated by Albuquerque Division of the FBI and the New Mexico Corrections Department, with assistance from the New Mexico State Police, Bernalillo County Sheriff’s Office, Metropolitan Correctional Center, Albuquerque Police Department, U.S. Marshals Service, and the El Paso, Phoenix, Denver, Las Vegas and Knoxville FBI Divisions. Assistant U.S. Attorneys of the U.S. Attorney’s Office for the District of New Mexico are prosecuting the case.
Fayetteville Men Sentenced to Lengthy Prison Terms for Hobbs Act Robberies and Firearm OffensesRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, United States District Judge Louise W. Flanagan sentenced CALVIN JAMAL SPEARMAN, 23, of Fayetteville to 174 months imprisonment, followed by 5 years of supervised release and DONTRELL LAMAR WRIGHT, 24, of Fayetteville to 229 months imprisonment, followed by 5 years of supervised release.
The defendants were named in a seven count Indictment on September 21, 2017. On December 14, 2017, SPEARMAN pled guilty to Conspiracy to Commit Hobbs Act Robbery and to Brandishing a Firearm in Furtherance of a Crime of Violence and Aiding and Abetting. On February 20, 2018, WRIGHT pled guilty to the same charges.
On January 5, 2017, officers with the Hope Mills Police Department (HMPD) responded to a reported robbery at a Subway restaurant (Subway) located at 3020 Main Street, Hope Mills, North Carolina. During the robbery, two males, later determined to be WRIGHT and SPEARMAN entered the business just prior to closing. The first to enter the business went into the bathroom. A few seconds later, another male entered the business, locked the front door behind him, put on a mask, then brandished a semiautomatic handgun. The other male then emerged from the bathroom with his face covered. WRIGHT and SPEARMAN subsequently jumped the counter and removed $350 from the register. WRIGHT and SPEARMAN forced the two employees to lie down behind the counter and ordered the employees to “stay down for ten minutes,” and stole the phone from one of the employee’s prior to fleeing the scene.
On January 15, 2017, officers with the Fayetteville Police Department (FPD) responded to a reported robbery at the Subway located at 3771 Ramsey Street, in Fayetteville. Officers determined that two males wearing hoodies and gloves (WRIGHT and SPEARMAN), one armed with a semiautomatic handgun, entered the business. A Subway employee recognized that a robbery was about to be committed and ran from the business. WRIGHT and SPEARMAN pursued the male employee and brought him back to the business at gunpoint. Once back inside, both employees were forced to lie on the ground. WRIGHT and SPEARMAN then took a cash deposit and money from the register totaling $974, demanded the employees to lie on the ground for ten minutes, and then fled the scene.
On January 21, 2017, officers with the FPD responded to a reported robbery at the Pizza Hut restaurant located at 3069 Boone Trail in Fayetteville. Officers determined that two males wearing hoodies (WRIGHT and SPEARMAN), one armed with a semiautomatic handgun with an extended magazine, had entered the business and robbed it of $1,196.95. During the robbery, WRIGHT or SPEARMAN ordered one employee to the ground, while the other approached another employee in the kitchen and ordered him/her to take him (WRIGHT or SPEARMAN) to the manager. Thereafter, WRIGHT or SPEARMAN ordered that employee to the ground and instructed the manager to take him to the safe. At gunpoint, WRIGHT or SPEARMAN subsequently had the manager open the safe and cash registers from which he took $1,196.95. WRIGHT or SPEARMAN also took an employee’s and the manager’s cell phones. Before leaving, SPEARMAN or WRIGHT ordered the employees to “stay down for ten minutes” and then fled the scene.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
In support of PSN, the United States Attorney’s Office for the Eastern District of North Carolina has implemented the Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Hope Mills Police Department, the Fayetteville Police Department, and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney James J. Kurosad handled the prosecution of this case for the government.
Fayetteville Man Sentenced After Conviction for Operation Illegal Gambling BusinessRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that, KIET VO, 50, of Fayetteville, was sentenced by United States District Judge Louise W. Flanagan to 18 months imprisonment for one count of Conspiracy to Conduct an Illegal Gambling Business.
In January 2015, with the assistance of confidential informants (CIs), surveillance, and undercover operations, law enforcement established that a number of illegal gambling businesses were in operation in Cumberland County, North Carolina. Each gambling business had multiple video gaming machines (VGMs) which were owned and supplied by KIET VO and his wife, Phuong Truong. CIs identified multiple co-conspirators who operated the various gambling businesses, or would drop off and/or pick up moneyfrom each location. CIs further noted, and a co-conspirator statement later confirmed, that all of the money made by the illegal gambling operations belonged to VO, and the accounting oraudit sheets, of each machine's monetary transactions was performed by his wife. Investigation revealed that any profit from a gambling business was turned over to VO. In turn, VO would subtract the cost of the VGMs and, in some cases, pay the operating expenses of the establishment. In other cases, the operator of the establishment would be responsible for operating costs. Investigators established that the VO organization, in total, would profit between $25,000 and $60,000 per week.
Between 2015 and 2017, cooperating defendants provided multiple statements confirming the roles and responsibilities of KIET VO and his wife. Statements confirmed that VO controlled anddirected the individuals at each location including the monetary split, the number of machines, and whose name the rent and/or utility bills would be in. VO also directed multiple individuals in addition to his wife, to pick up and deliver money to and from each of the locations. Phuong Truong also directed the operators of each establishment in the collection of the money and while conducting the audits of each machine, including teaching others how to conduct the audits themselves. Additionally, KIET VO recruited other defendants and either encouraged or insisted that they open other illegal gambling businesses and/or maintain more VGMs.
Phuong Truong is scheduled to be sentenced during the July 10, 2018 term of court.
The investigation of this case was conducted by the Cumberland County Sheriff’s Office and the Office of Homeland Security. Assistant United States Attorney Ethan A. Ontjes represented the government in this case.
Fayette County Woman Sentenced to Federal Prison for Her Role in Drug Trafficking ConspiracyRead the Press Release
CHARLESTON, W.Va. – A Fayette County woman was sentenced yesterday to federal prison on drug charges, announced United States Attorney Mike Stuart. Tiffany D. Ramsey, 27, of Boomer, Fayette County, previously entered a guilty plea to conspiracy to distribute and possess with intent to distribute more than 50 grams of methamphetamine, a quantity of heroin, and a quantity of oxycodone. Ramsey was sentenced to 46 months in federal prison.
U.S. Attorney Stuart commended the cooperative investigative efforts of several agencies, led by the Federal Bureau of Investigation and the Raleigh County Drug and Violent Crime Task Force. The Drug Enforcement Administration, the Beckley Police Department, the Raleigh County Sheriff’s Department, the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service also provided assistance throughout the investigation.
“Yet another person in this Fayette County network of drug dealers is going to prison,” said United States Attorney Mike Stuart. “Anyone that would peddle such poisons - meth, pills, heroin, fentanyl – deserves federal time and our accommodations don’t come with turn down services, a chocolate on the pillow or a Michelin rating.”
Ramsey previously admitted that between May 2017 and June 28, 2017, she took part in a drug trafficking conspiracy with multiple participants. During this time period, Ramsey admitted to working with Cheyenne Fragale and others to distribute methamphetamine, heroin, and oxycodone in and around Fayette County. Ramsey admitted that she and Cheyenne Fragale sold the controlled substances from their house near Boomer. Ramsey also admitted that on June 28, 2017, law enforcement officers executed search warrants at various locations related to this drug trafficking conspiracy. During the searches, officers seized over 300 grams of crystal methamphetamine, as well as heroin, fentanyl, and over $29,000 in cash. The methamphetamine was later analyzed and confirmed to be 94% pure. The drug trafficking organization was responsible for distributing oxycodone, methamphetamine, and heroin in and around Fayette County.
Several individuals implicated as a result of this investigation have entered guilty pleas to drug charges and are awaiting sentencing. Four defendants have been sentenced for their involvement in the drug conspiracy. Cheyenne Fragale and Macon Fragale, brothers from Boomer in Fayette County, have been sentenced by United States District Judge Irene C. Berger. Cheyenne Fragale received a sentence of 12 years in federal prison while Macon Fragale will serve 16 years and 8 months. Dominic Copney of Beckley, has been sentenced to two years in federal prison by Senior United States District Judge David A. Faber. Donald Scalise, of Montgomery, was sentenced to three years in federal prison for conspiring to distribute oxycodone. He was also sentenced by United States District Judge Irene C. Berger. Others still awaiting sentencing include Velarian Carter, of Beckley, who faces a mandatory minimum of not less than 20 years and up to life in federal prison when he is sentenced on July 10, 2018. Detria Carter, of Beckley, faces a mandatory minimum sentence of not less than five and up to 40 years in federal prison when she is sentenced on June 5, 2018. Shawn Akiem Anderson, of Mt. Hope, faces up to 10 years in federal prison when he is sentenced on July 11, 2018. Rory White, of Montgomery, faces at least five years and up to 40 years in federal prison when he is sentenced on June 6, 2018.
Karl Funderburk, of Teays Valley, who previously pled guilty to a gun charge, faces at least 5 years and up to life in federal prison for using and carrying a firearm during a drug trafficking crime when he is sentenced on July 10, 2018.
Shaun Jones has entered a guilty plea to possession with intent to distribute more than 100 grams of heroin. Jonathan Moore has entered a guilty plea to possession with intent to distribute more than 500 grams of cocaine. Each faces at least five years and up to 40 years in federal prison when they are sentenced on July 11, 2018.
Corey Larkin previously entered a plea to conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine and more than 100 grams of heroin. He also faces at least five years and up to 40 years in federal prison when he is sentenced on July 11, 2018.
Esau Burnette, of Beckley, has entered a plea to conspiracy to manufacture, distribute, and possess with intent to distribute more than 28 grams of cocaine base and a quantity of cocaine. He faces at least five years and up to 40 years in federal prison when he is sentenced on July 10, 2018. James Rodney Staples, of Woodbridge, Virginia, faces at least 10 years in federal prison and up to life when he is sentenced on July 10, 2018 after entering a plea to conspiracy to distribute or possess with intent to distribute more than five kilograms of cocaine, more than 280 grams of cocaine base, and more than one kilogram of heroin.
George E. Brockman, II, of Montgomery, entered a plea to conspiracy to distribute and possess with intent to distribute more than 100 grams of heroin, a quantity of cocaine, and a quantity of oxycodone. Charles Hill, aka “Unc,” of Beckley, entered a guilty plea to conspiracy to distribute and possess with intent to distribute more than 28 grams of cocaine base, and a quantity of cocaine. They both face at least five years and up to 40 years in federal prison when they are sentenced on July 11, 2018.
Jonathan O. Brockman of Kimberly, Fayette County, previously entered a plea to conspiracy to distribute and possess with intent to distribute more than 100 grams of heroin, a quantity of fentanyl, a quantity of oxycodone, and a quantity of marijuana for remuneration. David Shaun Coleman of Fayette County entered his plea to conspiracy to distribute more than 100 grams of heroin and a quantity of oxycodone. Rashaun Carter, aka “Show,” of Raleigh County, pled guilty to conspiracy to distribute and possess with intent to distribute more than 28 grams of cocaine base, more than 100 grams of heroin, and a quantity of cocaine, and a quantity of fentanyl. Each of these defendants face at least five years and up to 40 years in federal prison when they are sentenced on July 24, 2018.
Derrick L. Staples, of Charleston, entered a plea to conspiracy to distribute or possess with intent to distribute more than five kilograms of cocaine, more than 280 grams of cocaine base, and more than one kilogram of heroin and faces a minimum of 10 years and up to life in federal prison when he is sentenced on July 24, 2018. Shaun L. Givens, of Beckley, entered his guilty plea to conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine and faces at least five years and up to 40 years in federal prison when he is sentenced on July 25, 2018.
Assistant United States Attorney Timothy D. Boggess handled the prosecutions. United States District Judge Irene C. Berger imposed the sentence.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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East Greenwich Man Admits to Trafficking a Mixture of Fentanyl and CocaineRead the Press Release
PROVIDENCE, RI – An East Greenwich man charged during an investigation by North Kingstown Police and the Drug Enforcement Administration (DEA) into drug trafficking in and around a North Kingstown public housing complex has pleaded guilty in federal court to trafficking fentanyl.
Jason Palmer, 43, pleaded guilty on Thursday, as charged in a federal indictment, to distribution of fentanyl, announced United States Attorney Stephen G. Dambruch, North Kingstown Police Chief Patrick Flanagan, and Albert P. Angelucci, Acting Special Agent in Charge of the DEA’s New England Field Division.
According to information presented to the Court, during the summer of 2017, in an effort to stem drug trafficking in and around certain North Kingstown public housing complexes, North Kingstown Police and DEA agents established an apartment in the Heritage House complex to house an individual assisting law enforcement with the investigation. The individual took up residence in the apartment with the intent of befriending individuals allegedly trafficking illegal narcotics.
IIn August 2017, the individual assisting law enforcement met and spoke with Palmer, and inquired about obtaining 5 grams of heroin. Palmer agreed to sell the individual heroin at a cost of $100 per gram. On August 24, 2017, Palmer sold the individual what Palmer said was 5 grams of heroin. DEA laboratory tests showed that Palmer actually sold the individual approximately 4.2 grams of a mixture containing fentanyl and cocaine.
Palmer, who is detained in federal custody, is scheduled to be sentenced by United States District Court Chief Judge William E. Smith on September 14, 2018. Distribution of fentanyl is punishable by statutory penalties of up to 20 years imprisonment followed by a term of supervised release of 3 years to life, and a fine of up to $1,000,000.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
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Dominican National Charged with Aggravated Identity Theft and Stealing Government BenefitsRead the Press Release
BOSTON – A Dominican national was indicted yesterday in federal court in Boston with identity theft, aggravated identity theft, theft of public money, and illegally reentering the United States after being deported.
Isidro Viscaino-Soto, a/k/a Ysidro Vizcaino, 58, a Dominican national residing in Boston, was indicted on one count each of identity theft, aggravated identity theft, theft of public money and illegal reentry of a deported alien. Viscaino-Soto was arrested and charged by complaint on April 17, 2018, and has been in custody since.
According to court documents, law enforcement officers in Boston discovered Viscaino-Soto on April 12, 2018, and determined him to be illegally present in the United States. Viscaino-Soto was previously deported on July 31, 2000, following a conviction for drug offenses. Court documents further allege that Viscaino-Soto used the Social Security number of a U.S. citizen from Puerto Rico in order to receive unemployment insurance, and in so doing, stole approximately $9,000 in federally-funded MassHealth benefits.
Aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence imposed, one year of supervised release, and a fine of $250,000. The identity theft charge provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss, whichever is greater. The charge of theft of public funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss, whichever is greater. The charge of illegal reentry provides for a sentence of no greater than two years in prison, one year of supervised release, a fine of $250,000. Viscaino-Soto will be subject to deportation upon completion of his sentence. 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; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations; and, Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts, made the announcement. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Doctor Convicted in $8.9 Million Health Care Fraud SchemeRead the Press Release
A federal jury found a physician guilty today for her role in a scheme involving approximately $8.9 million in fraudulent Medicare claims for home health care and other physician services that were procured through the payment of kickbacks, were not medically necessary, not actually provided or, in some cases, were provided by the defendant, who was not a licensed physician during the conspiracy.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Timothy Slater of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Millicent Traylor, 47, of West Bloomfield, Michigan, was convicted of one count of conspiracy to commit health care fraud, one count of conspiracy to pay and receive kickbacks in connection with Medicare beneficiaries, and five counts of health care fraud following a four-day trial. Sentencing has been scheduled for Sept. 27, before U.S. District Judge Robert Cleland of the Eastern District of Michigan, who presided over the trial.
According to evidence presented at trial, from 2011 to 2016, Traylor and her co-conspirators engaged in a scheme to defraud Medicare of approximately $8.9 million through fraudulent home health and physician claims. The evidence showed that Traylor, who was unlicensed at the time, acted as a physician for these companies, providing services that were not medically necessary and that were billed to Medicare as if they were provided by a licensed physician. The evidence further showed that Traylor conspired to cause billing to Medicare for services that were not rendered. To make it appear that these services were medically necessary and were provided, Traylor and her co-conspirators falsified medical records and signed false documents. Additionally, the evidence at trial showed that Traylor and her co-conspirators paid and received kickbacks in exchange for referring Medicare beneficiaries to serve as patients at the clinics. The trial evidence also revealed that Traylor fraudulently signed the names of licensed physicians on prescriptions for opioid medications, such as oxycodone, as a means of inducing patient participation in the scheme.
Four defendants were charged in this matter. Jacklyn Price, 33, of Shelby Township, Michigan, and Muhammad Qazi, 47, of Bloomfield Hills, Michigan, pleaded guilty in April 2017 and are awaiting sentencing. Christina Kimbrough, M.D., 39, of Wayne, Michigan, pleaded guilty in November 2017 and is awaiting sentencing.
This case was investigated by the HHS-OIG and the FBI. Trial Attorneys Stephen Cincotta and Steven Scott of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
DEA Targets Opioid Crisis with Operation Safe HavenRead the Press Release
Memphis, TN - The Drug Enforcement Administration this week launched Operation Safe Haven, a sweeping enforcement action spanning three states. DEA Special Agents, working closely with their state and local law enforcement partners throughout Kentucky, Tennessee, and West Virginia targeted a variety of bad actors, ranging from healthcare workers and distributors, to street-level drug dealers in a coordinated effort to attack the opioid crisis head-on in the region.
Kentucky, Tennessee and West Virginia have been hit particularly hard by the opioid crisis, according to James Catalano, Resident Agent in Charge of DEA’s Memphis Office. "Through operations like Safe Haven, the dedicated men and women of DEA, with help from our state and local counterparts, are working hard to make these communities safer by getting dangerous drugs off of our streets and bringing those who distribute them to justice," Catalano said.
Operation Safe Haven is the culmination of several months-long investigations. DEA Special Agents and Diversion Investigators from the Louisville Field Division, with support from local law enforcement agencies across the region, made 93 arrests, and seized over $1,000,000.00 in cash, 40 firearms, as well as significant quantities of heroin, fentanyl, and other drugs. Additionally, over 60 administrative actions were carried out against a range of healthcare providers.
Combatting opioid abuse is a top priority for DEA. In conjunction with Operation Safe Haven’s enforcement activities, DEA Diversion Investigators visited more than 100 pharmacies in 70 cities throughout Kentucky, Tennessee, and West Virginia to deliver pharmacist manuals and contact information for the Louisville Division’s Diversion Program. These visits mark the beginning of an on-going campaign to remind pharmacy staff of their compliance duties and ethical responsibilities.
The DEA’s Louisville Field Division covers Kentucky, Tennessee, and West Virginia, under the direction of Special Agent In Charge D. Christopher Evans. The Division was created in 2018 to better synchronize DEA’s efforts with regional law enforcement partners in a part of the country among those hardest hit by America’s opioid epidemic.
Cuban Citizen Sentenced to 5 Years in Prison for Trafficking Heroin in the New Ken AreaRead the Press Release
PITTSBURGH, Pa. - A former resident of Plum, Pennsylvania, has been sentenced in federal court to 62 months’ imprisonment, followed by four years of supervised release on a charge of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence yesterday on Radames Perez, age 46, and a citizen of Cuba.
According to information presented to the court, a wiretap investigation into drug trafficking in the New Kensington area from January to May 2015 revealed that the defendant was involved in a drug trafficking conspiracy. During the investigation, law enforcement learned that Perez received between 700 and 1000 grams of heroin from a source of supply in New York City, which he later distributed in Western Pennsylvania.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) comprised of members drawn from the Drug Enforcement Administration, the Allegheny County Sheriff’s Department, the Baldwin Borough Police Department, the Duquesne Police Department, Homeland Security Investigations, the Munhall Police Department, the Pennsylvania State Police, the City of Pittsburgh Bureau of Police, the Scott Township Police Department, and the West Homestead Police Department, along with assistance from the City of New Kensington Police Department and the Pennsylvania Attorney General’s Office, conducted the investigation leading to the prosecution of Perez. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Convicted Felon Sentenced to More Than 17 Years for Drug Dealing and Gun PossessionRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Chauncey Gregory (33, St. Petersburg) to 17 years and 6 months in federal prison for possessing 500 grams or more of cocaine with the intent to distribute it, and for being a felon in possession of a firearm and ammunition. Gregory pleaded guilty on February 6, 2018.
According to court documents, Gregory was an illegal narcotics dealer in a residential neighborhood in St. Petersburg, Florida. On August 24, 2017, law enforcement executed a search warrant at Gregory’s residence. As they arrived, one of Gregory’s “customers” was at the home to make a purchase from him. During the search, law enforcement recovered approximately 1 kilogram of cocaine, 8.5 ounces of ecstasy, 15.5 grams of crack cocaine, 743 grams of marijuana; a cocaine press, a narcotics scale, drug baggies, cash ,and a loaded .38 caliber revolver, which was next to Gregory’s passport.
As a previously convicted felon, Gregory is prohibited under federal law from possessing a firearm or ammunition.
While on pretrial release, Gregory attempted to retaliate against the law enforcement officers who investigated the case against him. His bond was then revoked. The court granted the government’s motion for a substantial upward variance from the advisory Sentencing Guidelines, an additional 7 ½ years, to reflect the seriousness of his offense and his post-arrest retaliation attempt.
“Putting this major local drug supplier behind bars for 17 plus years significantly reduces the drug supply on the street,” said St. Petersburg Chief of Police Anthony Holloway. "It also sends a message to criminals that retaliation against law enforcement officers who dedicate their lives to ensure the quality of life for our residents will not be tolerated.”
"We will continue to adapt to the challenges that today’s technology can pose when fighting violent crime,” said ATF Special Agent in Charge Daryl McCrary, “particularly when it pertains to retaliation against another law enforcement partner.”
This case was investigated by the St. Petersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorneys Thomas N. Palermo and Diego F. Novaes.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Citizen of Mexico Sentenced to 3 Years for Trafficking Heroin and Fentanyl, Illegally Reentering U.S.Read the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JESUS GOMEZ-VALDIVIA, 39, a citizen of Mexico, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 36 months of imprisonment for drug trafficking and immigration offenses.
According to court documents and statements made in court, on October 12, 2017, the Drug Enforcement Administration received information that GOMEZ was couriering narcotics on a flight that had departed Los Angeles International Airport and would be arriving at Tweed New Haven Airport later that day. DEA Agents traveled to Tweed New Haven Airport and, after the flight landed, identified two pieces of luggage that GOMEZ had checked. Agents then met GOMEZ in the baggage claim area after he retrieved his luggage. GOMEZ was arrested after investigators discovered that nearly two kilograms of heroin and approximately 500 grams of fentanyl had been sewed into one of the suitcases.
The investigation also revealed that GOMEZ was deported from the U.S. to Mexico in November 2001, and subsequently reentered the U.S. illegally.
On December 13, 2017, GOMEZ pleaded guilty to one count of possession with intent to distribute controlled substances and one count of reentry of a removed alien.
GOMEZ has been detained since his arrest. He will be deported to Mexico when he is released from prison.
This matter was investigated by the Drug Enforcement Administration with the assistance of the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
Charlotte Man Sentenced to 30 Years on Child Pornography ChargesRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. sentenced late yesterday Jason Reid, 30, of Charlotte, to 30 years in prison on child pornography charges, announced the U.S. Attorney’s Office for the Western District of North Carolina. In addition to the prison term imposed, Judge Conrad also ordered Reid to serve thirty years of supervised release and to register as a sex offender after he is released from prison.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation in Charlotte; Chief Kerr Putney, of the Charlotte-Mecklenburg Police Department; and Chief Tim W. Ledford of the Mint Hill Police Department are also making today’s announcement.
According to court documents and court proceedings, in September 2015, law enforcement became aware that an individual with the username “Dodecahedron88” was using the website www.Omegle.com (Omegle), and later the chat application “Kik,” to exchange nude videos and images with a 12-year-old male (Child Victim 1). The FBI identified the individual as Jason Reid, and on November 20, 2015, FBI agents executed a federal search warrant at Reid’s residence in Charlotte. According to court records, Reid admitted to using Omegle and Kik to contact Child Victim 1.
Court records show that law enforcement also discovered text messages between Reid and a 13-year-old female (Child Victim 2). During these chats, Reid told the minor victim, who has a developmental disorder, that one of his fetishes was young girls. Reid admitted in plea related documents that he and Child Victim 2 traded sexually explicit images, and that he enticed Child Victim 2 to engage in illegal sexual activity, knowing that she was not above the age of consent.
Over the course of the investigation, law enforcement recovered multiple text messages, images, and videos containing sexually explicit content between Reid and at least 12 underage male and female victims.
According to court documents, on several occasions, Reid tricked the underage victims into trading sexually explicit videos and images by posing as a teenage boy. In some instances, Reid used fake videos of teenage boys to entice the victims to video chat and send him sexually explicit images.
Court records show that Reid also used the Kik application to receive and distribute child pornography, including some of the images he received from the child victims described above, with various Kik chat groups and individuals that were trading child pornography.
According to court records, a 12-year-old female (identified as Child Victim 12) told law enforcement that after she had traded sexually explicit images with Reid, he had threatened to hurt her if she ever told anyone. Court records show that Reid traded a picture of this victim to another Kik user.
A forensic analysis of Reid’s computer, external hard drive and cellular phones seized from his residence revealed they contained at least 400 videos and 179 images of child pornography, some of which depicted sadistic, masochistic or other violent sexual conduct, and some of which were of minors under the age of 12.
In announcing the sentence, Judge Conrad stated that Reid’s case was one of the worst he had seen in 15 years on the bench.
Reid is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The FBI, CMPD and Mint Hill Police investigated the case. Assistant U.S. Attorney Cortney Randall with the U.S. Attorney’s Office in Charlotte prosecuted the case.
Catron County Man Sentenced for Federal Misdemeanor Wildlife Violation Arising Out of Killing of Mexican Gray WolfRead the Press Release
ALBUQUERQUE – U.S. Attorney John C. Anderson and Acting Special Agent in Charge Phillip Land of the U.S. Department of the Interior, Fish and Wildlife Service, Office of Law Enforcement of the Southwest Region, announced that Craig Thiessen pleaded guilty yesterday to a federal misdemeanor wildlife violation arising out of the taking of a Mexican gray wolf. Immediately after entering the guilty plea, Thiessen was sentenced to a one-year term of probation and was ordered to pay $2,300 in restitution to the Mexican Wolf Recovery Program.
In announcing the guilty plea and sentence, U.S. Attorney John C. Anderson said, “Mexican wolves were listed as an endangered species in 1976, prompting recovery efforts to save the species from extinction. The Justice Department is committed to working with the U.S. Fish and Wildlife Service and our other law enforcement partners to protect the Mexican gray wolf and other vulnerable species so they remain on our planet for future generations.”
“The U.S. Fish and Wildlife Service works closely with our partners to protect imperiled species both at home and abroad,” said Acting Special Agent in Charge Phillip Land of the U.S. Department of Interior, Fish and Wildlife Service, Office of Law Enforcement of the Southwest Region. “This defendant knowingly took a Mexican gray wolf, the rarest subspecies of gray wolf in North America. The defendant's guilty plea should serve as a deterrent to those who choose to knowingly harass and take wildlife unlawfully. We will continue to work with the Department of Justice and others to bring these offenders to justice.”
During yesterday’s proceedings, Thiessen, 46, of Catron County, N.M., entered a guilty plea to an information charging him with the taking of threatened wildlife. In entering the guilty plea, Thiessen admitted that in Feb. 2015, in Catron County, N.M., he intentionally captured a Mexican gray wolf in a trap on his grazing allotment in the Gila National Forest and hit the wolf with a shovel. Thiessen admitted knowing that the animal was a Mexican gray wolf because it bore a tracking collar, which is affixed to all Mexican gray wolves in the area.
This case was investigated by the U.S. Department of the Interior, Fish and Wildlife Service, Office of Law Enforcement of the Southwest Region, and is being prosecuted by Assistant U.S. Attorney John Balla of the U.S. Attorney’s Las Cruces Branch Office.
Caputa Man Sentenced for Illegally Possessing a SilencerRead the Press Release
United States Attorney Ron Parsons announced that a Caputa, South Dakota, man convicted of Possession of an Unregistered Firearm was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Mason Hamm, age 21, was sentenced on May 22, 2018, to 8 months of imprisonment, followed by 3 years of supervised release, ordered to pay a $100 special assessment to the Federal Crime Victims Fund, and to perform 100 hours of community service.
Hamm was charged on December 21, 2016. The charge related to Hamm illegally being in possession of a Lane, LLC, model Scorpion Magnum, .30 caliber silencer. The silencer was attached to a .308 rifle. Hamm illegally baited and killed a mountain lion at night using the silenced .308 rifle while trespassing on private property.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the South Dakota Department of Game, Fish, and Parks, and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
California Man and Tucson Woman Each Sentenced to 4 Years Prison for Smuggling Ammunition into MexicoRead the Press Release
TUCSON, Ariz. – On May 25, 2018, Miguel Ochoa-Ruiz, 39, of Concord, Calif., was sentenced by U.S. Senior District Judge Frank R. Zapata to 48 months’ (4 years) imprisonment. Ochoa-Ruiz had been previously been found guilty following a trial of smuggling goods from the United States and conspiracy. Ochoa-Ruiz’s co-defendant, Ana Guadalupe Carillo-Villa, 23, of Tucson, Ariz., had also previously been sentenced to a total of 48 months’ imprisonment by U.S. Chief District Court Judge Raner C. Collins, after pleading guilty to smuggling goods from the United States, conspiracy, and possession of ammunition by a convicted felon.
On July 7, 2016, Ochoa-Ruiz purchased 2,000 rounds of rifle ammunition and 248 high-capacity rifle magazines in Phoenix. He and Carillo-Villa transported these items to Nogales, Ariz., where Carillo-Villa attempted to smuggle them across the border into Mexico. Customs and Border Protection officers stopped Carillo-Villa at the Port of Entry and intercepted the ammunition and magazines in her vehicle. Ochoa-Ruiz returned to Phoenix the next day and purchased an additional 11,000 rounds of ammunition, which he again drove to Nogales in attempt to smuggle it into Mexico. Law enforcement agents stopped Ochoa-Ruiz before he attempted to leave the United States and seized the ammunition. Evidence obtained in the subsequent investigation established that Ochoa-Ruiz and Carillo-Villa had conspired to smuggle ammunition into Mexico on at least four prior occasions.
The investigation in this case was conducted by the Department of Homeland Security – Homeland Security Investigations, with assistance from Customs and Border Protection, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The prosecution was handled by Angela W. Woolridge, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-16-1475-TUC-FRZ
RELEASE NUMBER: 2018-072_Ochoa-Ruiz
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
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Buffalo Woman Sentenced for Cocaine DistributionRead 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 Elisa Rivera Ortiz, 36, of Buffalo, NY, who was convicted attempted possession of cocaine with intent to distribute, was sentenced to serve 46 months in federal prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that on April 8, 2017, United States Postal Inspectors intercepted a package during a routine inspection of incoming parcels that contained cocaine. The package was addressed to the defendant. On June 29, 2017, the Postal Inspectors seized a second package, which was also addressed to the defendant, and found cocaine.
On July 6, 2017, a controlled delivery of a package containing sham cocaine and a monitoring device was conducted at the defendant’s Warren Avenue residence. Once the monitor alerted investigators that the package had been opened, they entered the residence and executed a search warrant. Ortiz attempted to run out the side door but was taken into custody. During the search, investigators located the package of sham cocaine, drug packaging materials, a digital scale with suspected cocaine residue, and a small bag of marijuana. Ortiz’s son and three other minor children were in the residence at the time.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the U.S. Postal Inspection Service, under the direction of Boston Division Acting Inspector-in-Charge Delany E. De Leon-Colon.
Buffalo Man Sentenced on Gun and Drug ChargesRead 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 Terry Wilson, 39, of Buffalo, NY, who was convicted of possession with intent to distribute crack cocaine, and being a felon in possession of a firearm, was sentenced to serve 60 months in federal prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that on June 26, 2017, the defendant was pulled over by Buffalo Police Officers after he was observed driving at a high rate of speed on Bailey Avenue. During the traffic stop, the defendant was found in possession of a 9 mm semi-automatic pistol which was loaded with 11 rounds of ammunition. After stopping the vehicle, officers recognized Wilson from previous contacts with him and knew that he did not have a valid driver’s license. The officers patted the defendant down and recovered nearly four grams of crack cocaine from his pockets.
In July 2012, Wilson was convicted in Erie County Court of Criminal Possession of a Controlled Substance in the Fifth Degree. Previously, in June 2005, the defendant was convicted in Federal court of being a felon in possession of a firearm. As a result of these convictions, Wilson is legally prohibited from possessing a firearm.
The sentencing is the result of an investigation by Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.Buffalo Man Pleads Guilty to Selling HeroinRead 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 Jose Ramos Escalera, 30, of Tonawanda, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to possession with intent to distribute heroin. The charge carries a maximum penalty of 30 years in prison and a $2,000,000 fine.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that between July 24, 2015, and September 26, 2017, the defendant sold heroin on seven separate occasions to individuals working with the Drug Enforcement Administration.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Sentencing is scheduled for August 30, 2018 before Judge Geraci.
Buffalo Man Arrested, Charged with Selling FentanylRead 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 Brennen Bryant, Jr., 25, of Buffalo, NY, was arrested and charged by criminal complaint with possession with intent to distribute butyryl fentanyl. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Seth T. Molisani, who is handling the case, stated that according to the complaint, on September 26, 2017, Orchard Park Police detectives recovered a cellular telephone from a deceased individual believed to have died of an overdose. While examining the contents of the victim's phone, detectives discovered text messages between the victim and a telephone number linked to the defendant. Those text messages involved the purchase of heroin.Between November 1, 2017, and December 5, 2017, law enforcement officers conducted six undercover heroin purchases from Bryant.
The defendant made an initial appearance before U.S Magistrate Judge H. Kenneth Schroeder and is being detained.
The complaint is the result of an investigation by the Orchard Park Police Department, under the direction of Chief Mark Pacholec; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major David Krause, and Lieutenant Kevin Reyes; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Bucks County Real Estate Investor Guilty on All Counts in Fraud CaseRead the Press Release
PHILADELPHIA – A federal jury found Dean Rossi, 49, of Warrington, Pennsylvania, guilty yesterday of bank, mail and loan fraud in connection with a mortgage scheme, announced U.S. Attorney William M. McSwain.
Rossi, who owned numerous low-income properties throughout the Philadelphia area, misappropriated more than $643,000 from real estate closings. Specifically, after obtaining bank loans to purchase or refinance residential properties, Rossi teamed up with corrupt title/closing agents to divert a substantial portion of the loan proceeds, and then he pocketed cash from the settlements which should have been used to pay off prior mortgages and tax liens. In addition, to prevent the scheme from being detected, Rossi continued to cause payments to be made on the prior existing mortgages years after those loans were supposed to have been paid in full.
“Our investigators and trial team did a phenomenal job of following a trail of evidence that goes back more than a decade,” said U.S. Attorney McSwain. “The defendant went to great lengths to cover his tracks, but due to the hard work of our agents and prosecutors, his long-running scheme was exposed.”
The defendant faces a maximum possible sentence of 120 years’ imprisonment, five years of supervised release, and a $4 million fine.
The case was investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Joel Goldstein.
Brazilian National Sentenced for Possessing FirearmsRead the Press Release
BOSTON – A Brazilian national, who entered the United States illegally in 2002, pleaded guilty and was sentenced to time served yesterday in federal court in Boston for possessing firearms and ammunition.
Acemar Damaceno, 38, who formerly resided in Weymouth, pleaded guilty to one count of being an alien in possession of a firearm and ammunition, before U.S. District Court Judge Denise Casper, who sentenced Damaceno to time-served (approximately 13 months in prison).
Law enforcement authorities received information that a man known as “Marcus” was offering to sell firearms to a confidential informant (CI). On March 11, 2017, the CI visited Marcus’ home in Weymouth where Marcus stated that he would kill anybody for a fee. Marcus proceeded to show the CI a .45 caliber handgun, a shotgun, and a bag containing various amounts of ammunition that Marcus hid in the basement of his home. Marcus also offered to sell the .45 caliber handgun to the CI for $1500. The CI cooperated with law enforcement officers and identified Marcus as Acemar Damaceno.
On April 7, 2017, law enforcement officers stopped Damaceno in his vehicle as he left his home, at which time Damaceno admitted that he was not a citizen and that he was illegally present in the United States. Damaceno was administratively arrested. During a search of his residence, a .45 caliber Kimber Ultra Ten II pistol loaded with ten .45 caliber rounds of ammunition and an Iver Johnson Champion shotgun were recovered. A trace of the Kimber pistol determined that it was reported stolen in Connecticut in October 2011.
United States Attorney Andrew E. Lelling and Peter C. Fitzhugh Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Major Crimes Unit prosecuted the case.
Brazilian Couple Convicted for International Kidnapping of GrandsonRead the Press Release
HOUSTON – A federal jury has convicted an international businessman and his wife of international parental kidnapping, announced U.S. Attorney Ryan K. Patrick and Special Agent in Charge Perrye K. Turner of the FBI. The jury deliberated for more than two days following a 10-day jury trial before convicting Carlos Otavio Guimaraes, 67, and Jemima Guimaraes, 66.
“International parental kidnapping is a terrible crime,” said Patrick. “This jury of 12 heard heart-wrenching evidence of a father who just wants to see his little boy. I applaud today’s verdict and want everyone to know that our office will not rest until the mother is back on U.S. soil to face her own kidnapping charges.”
The jury heard that the child’s grandparents helped illegally retain the child in Brazil away from his father in Houston. The mother and minor child traveled to Brazil to attend a family event in July 2013, but were supposed to return to Houston no later than July 20, 2013. The child was never returned to the United States.
“The FBI is committed to investigating those who remove or attempt to remove a child from the United States, or retain a child outside the United States, with the intent to obstruct another parent's custodial rights,” said Turner.
During trial, the jury heard how the child’s mother allegedly orchestrated a plan to travel to Brazil for her brother’s wedding via an agreed travel agreement as part of the pending divorce. While in Brazil, she went to a Brazilian state court and obtained custody of the minor. From that moment forward, the father of the child was limited in his ability to visit with his son. The visits he did have were supervised by a guard hired by the child’s mother. Currently, despite a Harris County divorce ruling in 2015 favorable to the father, his ability to maintain a relationship with his son has been incredibly difficult. The child no longer speaks English, and the father had to learn Portuguese to navigate the Brazilian legal system and communicate with his son.
The child’s father testified and told the jury that all he ever wanted was for his son to return to Houston so he could be a constant presence in his life.
Evidence was also presented which included the fact that the grandparents support their daughter by providing housing and employment. Additionally, when the father would visit Brazi, Jemima was present for most of the exchanges of the child. Video evidence showed both Carlos, Jemima, the hired guard and their Brazilian attorney at one of the exchanges.
The defense attempted to convince the jury that the Brazilian court rulings should be respected despite the fact they disregard the father’s position. The rulings found the United States was not the place to raise a child in the “egotistical profile of the American family.”
The defense provided an expert on the Hague Convention to testify, but that expert was unable to give even one example of a child that has been returned from Brazil when the abducting parent was alive and domiciled in Brazil. Further, the expert acknowledge the U.S. State Department has found Brazil to be non-compliant with the provisions of the Hague Convention on the Civil Aspects of International Child Abduction since 2006.
The defense claimed the mother was fleeing from domestic violence, but evidence failed to support that claim. The jury ultimately found Carlos and Jemima Guimaraes guilty of international parental kidnapping.
A sentencing date is expected to be set at later date. At that time, the couple faces up to three years in federal prison.
They were permitted to remain on bond pending that hearing.
The child’s mother - Marcelle Guimaraes, 40 - is also charged but remains a fugitive in Brazil. She is presumed innocent unless and until convicted through due process of law.
The FBI conducted the investigation. Assistant U.S. Attorneys Sherri L. Zack and Kimberly Ann Leo are prosecuting the case.
“We thank AUSAs Zack and Leo for their commitment to bringing justice and a successful conclusion to this unique case,” said Turner. “Prosecutors generally have no control over the custodial decisions affecting the child or whether foreign authorities will order the return of the child.”
If you are a parent or legal custodian who has been deprived of your child through abduction, please see the Department of Justice’s International Parental Kidnapping webpage for more information.
Brandenburg Man Pleads Guilty to Attempted Online Enticement and Distribution of Obscene Material to A MinorRead the Press Release
LOUISVILLE, Ky. – A Brandenburg, Kentucky, man pleaded guilty to two child exploitation offenses on Tuesday, May 22, 2108, in United States District Court, announced United States Attorney Russell M. Coleman.
Jeffrey Adam Stone, 31, admitted to online communications with a person he believed to be a 15-year-old girl for the purpose of meeting her to engage in sexual conduct. He also admitted to sending obscene material to the girl.
According to the Plea Agreement and other court records, law enforcement officials became aware of Stone’s conduct as the result of an online undercover operation. In November 2016, an investigator with the Kentucky Attorney General’s Department of Criminal Investigations placed an ad on Craigslist. That same day, Stone responded to the ad. During their initial communications, the investigator advised that he was a 15-year-old girl. Stone continued the communications and directed them to a sexual nature. Specifically, on numerous occasions, he requested to meet the girl to engage in sex acts. He also sent sexually explicit pictures of himself to the person he thought was a 15-year-old girl.
Stone will be sentenced on August 15, 2018, at 10:30 a.m. before United States District Judge David J. Hale. Stone faces a statutorily mandated sentence of 10 years in prison and at least five years of Supervised Release. There is no parole in the federal system. Stone remains in the custody of the United States Marshals Service.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Kentucky Office of Attorney General’s Department of Criminal Investigations conducted the investigation with assistance from the United States Secret Service.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Bowling Green Man Pleads Guilty to Violating Federal Drug and Gun LawsRead the Press Release
LOUISVILLE, Ky. – A Bowling Green, man pleaded guilty to multiple drug and firearm offenses yesterday in United States District Court, announced United States Attorney Russell M. Coleman.
Christopher Michael Compton, 40, admitted to aiding and abetting the knowing and intentional possession with the intent to distribute methamphetamine and marijuana. He also admitted attempting to knowingly and intentionally manufacture methamphetamine and being a prohibited person in possession of firearms and ammunition.
According to the Plea Agreement and other court records, law enforcement officials became aware of Compton’s criminal conduct on November 22, 2016, after his wife left the scene of an automobile accident and went to their home. While conducting an investigation concerning the accident, a Warren County Deputy Sheriff went to the home and smelled marijuana coming from inside. In consultation with the Warren County Commonwealth’s Attorney’s Office, the Deputy Sheriff obtained a state search warrant. During execution of the search warrant, law enforcement officials discovered methamphetamine, marijuana, drug paraphernalia and the remnants of a methamphetamine “cook.” Later forensic testing confirmed a weight of 32.580 grams of marijuana and 7.002 grams of methamphetamine.
In addition to the drugs and related items, law enforcement officials also discovered seven firearms and assorted ammunition. The weapons included four handguns, two rifles and one shotgun. Prior to November 22, 2016, Compton had been convicted of four felony offenses in Butler County, KY. Those convictions involved drug possession, drug trafficking, methamphetamine manufacturing and carrying a concealed deadly weapon. Additionally, Compton was an unlawful user of controlled substances. Due to his drug use and prior felony convictions, he was prohibited from possessing the firearms and ammunition under federal law.
Compton will be sentenced on August 27, 2018, at 9:30 a.m. before United States District Greg N. Stivers. Compton faces potential penalties of 65 years in prison, a fine of up to $2,750,000.00, and at least three years of Supervised Release. There is no parole in the federal system. Compton remains in the custody of the United States Marshals Service.
Assistant United States Attorney Jo E. Lawless prosecuted the case with assistance from the Warren County Commonwealth’s Attorney’s Office. The Bureau of Alcohol, Tobacco, Firearms & Explosives conducted the investigation in conjunction with the Warren County / Bowling Green Drug Task Force. The Task Force is made up of law enforcement officials representing federal, state and local entities. One such agency member, the Warren County Sheriff’s Office initiated the investigation.
Attorney General Sessions Meets with Croatian Prime Minister and PresidentRead the Press Release
A Department of Justice official released the following statement at the conclusion of Attorney General Jeff Sessions ' meetings with Croatian Prime Minister Andrej Plenković and President Kolinda Grabar-Kitarović:
"Attorney General Sessions today met with Croatian Prime Minister Andrej Plenković and President Kolinda Grabar-Kitarović. The Attorney General thanked President Grabar-Kitarović for Croatia's participation in NATO missions and logistical support in the fight against ISIS. Attorney General Sessions also committed to building the U.S.-Croatia relationship, including through increased law enforcement cooperation. On other defense issues, Attorney General Sessions encouraged President Grabar-Kitarović to announce a credible plan to meet the full intent of the Wales Pledge by 2024, which includes 2 percent of GDP spending on defense and 20 percent of defense spending on major new equipment. The Attorney General expressed the Trump Administration’s support for Croatia’s intended completion of the Croatian Liquefied Natural Gas terminal off the Adriatic Coast, which the Attorney General urged the Prime Minister and President to push forward on, in order to increase regional energy security."
Attorney Convicted of Obstructing Federal Grand Jury Investigation of His Client by Altering RecordsRead the Press Release
John Servider, an attorney admitted to practice law in the State of New York since 1988, was convicted today by a federal jury in Brooklyn of two counts of an indictment charging him with conspiracy to alter, and alteration of, records for use in a grand jury investigation in the Eastern District of New York. The verdict followed a seven-day trial before United States District Judge Eric N. Vitaliano. When sentenced, Servider faces up to 20 years’ imprisonment as to each count of the indictment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the verdict.
“Servider served as the fixer in a corrupt attorney-client scheme to obstruct a federal grand jury investigation by falsifying evidence,” stated United States Attorney Donoghue. “This Office, together with our law enforcement partners, will hold accountable attorneys who violate their oaths and the law by obstructing justice.”
Mr. Donoghue expressed his thanks to the agents and investigators of the Internal Revenue Service-Criminal Investigation, New York Field Office; the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud; the Federal Bureau of Investigation, New York Field Office; and the Port Authority of New York and New Jersey, Office of Inspector General, for their outstanding investigative work in the case.
The evidence at trial established that between March 2013 and April 2015, Servider learned that his client Vincent Vertuccio, who secretly controlled the activities of a construction company called Crimson Corp. (Crimson), was the subject of a grand jury investigation. Several law enforcement agencies, including the IRS, were investigating the flow of funds from Crimson to businesses that had supplied goods and services to Vertuccio. Vertuccio had not reported those goods and services as taxable income on his federal personal income tax return. After a grand jury subpoena was served on the jewelry store where Vertuccio purchased jewelry with Crimson funds, Servider and Vertuccio agreed to falsify the jewelry store receipts and invoices by removing any mention of Vertuccio’s name.
In April 2017, Vertuccio pleaded guilty to filing a false tax return and conspiracy to obstruct justice. He is awaiting sentencing.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Tanya Hajjar and Jonathan P. Lax are in charge of the prosecution.
The Defendant:
JOHN SERVIDER
Age: 56
Residence: Patterson, New YorkE.D.N.Y. Docket No. 15-CR-174 (ENV)
Arkansas Man Sentenced to 27 Months for FraudRead the Press Release
LEXINGTON, Ky. – A Cabot, Arkansas man, who previously admitted paying hundreds of thousands of dollars in bribes to receive millions of dollars of construction work, was sentenced today to 27 months in prison.
U.S. District Court Judge Danny C. Reeves sentenced 50-year-old Rocky Williams for the crime of conspiracy to commit honest services fraud.
Williams previously admitted that he conspired with James Newton, an employee at Saint Joseph Hospital in Lexington, Kentucky, between 2009 and 2012. Williams admitted that he paid over $500,000 in bribes to Newton, concealing them as payments of credit card and fuel bills, vehicle and rent payments, and gifts such as a motorcycle, an all-terrain vehicle, vacations, golf club memberships, a pool table, furniture, and home furnishings. In exchange, Newton, the Executive Director of Facilities responsible for assigning Saint Joseph Hospital’s general contracting work, steered over $8,000,000 of construction jobs to Williams’s company, ZaneRock Construction.
Williams pleaded guilty to conspiracy to defraud Saint Joseph Hospital, on December 17, 2017. Newton, 52-years-old and most recently living in Pace, Florida, had previously pleaded guilty to the same charge, on September 15, 2017. Williams and Newton were both given sentences of 27 months in federal prison, and both will share responsibility for repaying $532,660 in restitution to Saint Joseph Hospital. Williams will report to prison on August 27, 2018. Newton began his prison sentence on March 12, 2018.
Under federal law, Williams and Newton must serve 85 percent of their prison sentences; and upon their release, they will both be under the supervision of the U.S. Probation Office for three additional years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Amy Hess, Special Agent in Charge, Federal Bureau Investigation, jointly announced the sentence. The investigation was conducted by the FBI. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Neeraj Gupta.