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Friday 25 May 2018
Anchorage Man Sentenced for Federal Drug and Firearms OffensesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that James Markus Harries, a/k/a “James Harris,” 33, of Anchorage, was sentenced yesterday by U.S. District Judge Sharon L. Gleason, to serve 110 months in prison, followed by 5 years of supervised release. Harries previously pleaded guilty on Feb. 26, 2018, to possession with intent to distribute controlled substances and being a felon in possession of a firearm.
According to court documents, on May 31, 2017, members of APD’s CAP (Community Action Policing) team were conducting a crime suppression detail, when officers observed multiple traffic violations from a red Chevy Tahoe. APD subsequently conducted a traffic stop and made contact with the driver, later identified as James Harries. Harries initially would not identify himself, denied having any identification on his person, and claimed to not know his social security number.
The investigation revealed that, inside the driver’s door of the Tahoe, Harries possessed a plastic bag containing 88.9 grams of black tar heroin. A black backpack was also found in the vehicle, in which Harries possessed an additional 319.61 grams of heroin, a stolen .40 caliber Smith and Wesson M&P semi-automatic pistol, and a .45 caliber Taurus semi-automatic pistol. The investigation further revealed that Harries intended to distribute the heroin in the Anchorage area.
The Anchorage Police Department (APD), the Federal Bureau of Investigation (FBI), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the successful prosecution of this case. Special Assistant U.S. Attorney James Stinson prosecuted this case.
Amherst Doctor Pleads Guilty to Theft from Insurance CompaniesRead 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 Sreekrishna Cheruvu, 61, of East Amherst, NY, pleaded guilty, during trial, before Senior U.S. District Judge William M. Skretny to theft from a health care benefit program. The charge carries a maximum penalty of one year in prison and a $100,000 fine.
Assistant U.S. Attorneys Maura K. O’Donnell and Elizabeth R. Moellering, who are handling the case, stated that between January 2011 and May 2014, the defendant was a practicing physician in Amherst, NY who submitted claims to Independent Health (IHA), Univera, and Blue Cross and Blue Shield of Western New York (HealthNow) for medical services he purportedly rendered.
Cheruvu was also a participating provider with HealthNow. On August 7, 2012, the defendant submitted a claim form to HealthNow for reimbursement for services provided to patient “K.S.” On the form, Cheruvu claimed he provided services to “K.S.,” when, in fact, the defendant personally provided no services to the patient. As a result, HealthNow reimbursed the defendant $61.23 for the non-rendered service which the defendant converted to his own use.
Between January 2011 and May 2014, IHA, Univera, and HealthNow, lost approximately $196,615 as a result of Cheruvu’s conduct. As part of his plea, Cheruvu agreed to pay restitution in the amount of up to $550,000.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.Sentencing is scheduled for September 5, 2018, at 2:00 p.m. before Judge Skretny.
Albuquerque Felon Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Dakota Cook, 26, of Albuquerque, N.M., pled guilty today in federal court to violating the federal firearms laws by being a felon in possession of a firearm and ammunition.
Cook was indicted on June 28, 2017, and was charged with two counts of being a felon in possession of a firearm and ammunition, and one count of possessing an unregistered firearm. According to the indictment, Cook committed the offenses on June 24, 2016, in Valencia County, N.M. Cook was prohibited from possessing firearms or ammunition because of his prior felony convictions for receiving or transferring a stolen vehicle and aggravated assault on a peace officer.
During today’s proceedings, Cook pled guilty to one count of being a felon in possession of a firearm and ammunition. In entering the guilty plea, Cook admitted possessing a firearm on June 24, 2016, and that a ballistics test connected the firearm to another pending case against him. Cook acknowledged that he was prohibited from possessing firearms or ammunition because of his prior felony convictions.
At sentencing, Cook faces a maximum statutory penalty of ten years of imprisonment. However, if the court determines that Cook is an armed career criminal, he faces an enhanced sentence of a mandatory minimum 15 years to a maximum of life imprisonment.
This case was investigated by the Albuquerque office of the FBI, the New Mexico State Police and the Los Lunas Police Department. Assistant U.S. Attorney Letitia C. Simms is prosecuting the case as part of a federal anti-violence initiative that targets violent, repeat offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution offenders with the goal of making communities in New Mexico safer places for people to live and work.
Thursday 24 May 2018
York County Man Sentenced to Seven Years’ Imprisonment for Child Pornography OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Robert E. Miller, III, age 34, of York County, Pennsylvania, was sentenced on May 23, 2018, by United States District Court Judge John E. Jones, III, to 84 months’ imprisonment, 10 years’ supervised release and to pay a $5,200 special assessment, for being in the possession of images depicting the sexual exploitation of children and receipt of obscene visual representations depicting the sexual abuse of children.
According to United States Attorney David J. Freed, Miller was convicted on December 6, 2017, following a three-day trial. The case originated when the FBI Major Case Coordination Unit sent a lead to the FBI Harrisburg office regarding a user browsing a known child pornography website. After obtaining a search warrant, federal and local law enforcement officers located hundreds of images and videos containing child pornography and obscene material depicting the sexual abuse of children, including violent rape, sodomy, bondage and forcible penetration with an object.
This case was investigated by the Federal Bureau of Investigation and the Northern York County Regional Police Department. Assistant United States Attorneys Daryl Bloom and Carlo Marchioli prosecuted the case.
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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Woman Sent to Prison for Preparing False Income Tax ReturnRead the Press Release
HOUSTON – A local tax return preparer has been ordered to federal prison following her conviction of willfully aiding and assisting in the preparation of a false tax return for a client, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Rick Goss of IRS-Criminal Investigation. Crystal T. Kemp pleaded guilty Oct. 12, 2017.
Today, U.S. District Judge Sim Lake handed Kemp a 30-month sentence to be immediately followed by one year of supervised release. In handing down the sentence, the court noted Kemp’s conduct spanned four years and included the preparation of multiple false tax returns for the same clients.
“Today’s sentencing of Kemp puts an end to the activities of someone who made a living off of defrauding the public. This should send a message to other unscrupulous tax return preparers,” said Goss. “IRS-CI Special Agents and the U.S. Attorney’s office will continue to work vigorously to stop dishonest tax return preparers and their criminal behavior.”
In the plea agreement filed in the record of the case, Kemp admitted she prepared income tax returns for clients of her business in Houston named CQ Tax Preparation. Kemp willfully placed several false items on the tax returns, including false losses from sole proprietorships, false refundable American Opportunity Credits, false earned income credits and false child tax credits.
According to the plea agreement, Kemp admitted she prepared 41 false income tax returns for clients with a combined tax loss to the United States of $429,131. Kemp also prepared a false 2015 income tax return for an undercover IRS agent posing as a taxpayer, claiming a false income tax refund of $5,546 when the tax return should have reflected a tax due and owing of $1,270.
Kemp further admitted in the plea agreement that she claimed a false income tax refund on her 2013 and 2014 personal income tax returns that resulted in a combined tax loss to the United States of an additional $96,608.
Previously released on bond, Kemp was taken into custody following the sentencing today where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.
Wilmington Man Sentenced for Armed Bank RobberyRead the Press Release
BOSTON – A Wilmington man was sentenced today in federal court in Boston for armed bank robbery.
Russell Dinovo, 52, was sentenced by U.S. District Court Judge Richard G. Stearns to 57 months in prison and five years of supervised release. In December 2017, Dinovo pleaded guilty to one count of armed bank robbery.
On Oct. 9, 2015, two individuals, wearing hooded sweatshirts with portions of their faces visible, entered a branch of the Hingham Institute for Savings in Boston. One of the robbers, later identified as Dinovo, vaulted the teller counter, forced open two cash drawers, grabbed money, and put it into a duffel bag. Dinovo then demanded that a bank employee open the vault; the employee did, and Dinovo then removed money from the vault. The other individual, later identified as Anthony Pantone, remained in front of the counter throughout the entire robbery holding what appeared to be a handgun.
After stealing $16,320 from the bank, the two individuals fled on foot, but were captured a short time later in a cab with the duffel bag containing $16,320 and an airsoft gun.
Pantone pleaded guilty and was sentenced in August 2016 to 78 months in prison.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.
Warsaw, Indiana Man SentencedRead the Press Release
SOUTH BEND - Charles William Dove, age 34, of Warsaw, Indiana was sentenced before South Bend District Court Judge Robert L. Miller, Jr. for the crime of possessing a firearm after having been convicted of a felony, announced U.S. Attorney Kirsch.
Dove was sentenced to 51 months imprisonment followed by 3 years of supervised release.
According to documents in this case, on March 28, 2017, Dove possessed a Glock pistol and a Remington shotgun in Milford, Indiana, despite having twelve (12) prior felony convictions. Additionally, Dove had engaged in an argument with a relative by text messages and sent a photograph of himself while holding guns.
This case was investigated by the ATF with assistance from the Warsaw Police Department. The case was handled by Assistant U.S. Attorney Joel Gabrielse.
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Walton Man Sentenced to 264 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
COVINGTON, Ky. – Garret Gadd, 45, of Walton, Kentucky, was sentenced today to 264 months in federal prison, by United States District Judge David L. Bunning, for conspiracy to distribute methamphetamine.
Gadd pled guilty, in February 2018, and admitted that he conspired with others to distribute more than 150 grams of crystal methamphetamine. Gadd had multiple prior felony convictions relating to methamphetamine distribution. A codefendant, Regina Gripshover, was sentenced to 46 months, in March.
Under federal law, Gadd 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 ten 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, jointly made the announcement. The investigation was conducted by the Northern Kentucky Drug Strike Force and the Drug Enforcement Administration. The United States was represented by Assistant United States Attorney Tony Bracke.
Virginia Pharmacist Indicted for Employment Tax FraudRead the Press Release
A federal grand jury sitting in the Western District of Virginia returned an indictment today charging a Collinsville, Virginia pharmacist with failing to account for and pay over employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Thomas T. Cullen for the Western District of Virginia.
According to the indictment, Jerry R. Harper, Jr., owned and operated Family Discount Pharmacy, Inc. (FDP) in Stanleytown, Virginia, with multiple locations in Stuart, Rocky Mount, Chatham, and Brosville, Virginia. As owner of FDP, Harper was allegedly responsible for collecting and paying over FDP’s employment taxes. The indictment charges that during 2011 to 2014, FDP accrued employment tax liabilities of more than $1.2 million and that Harper withheld those taxes from FDP employees’ wages. He then allegedly failed to fully pay over the amounts withheld to the Internal Revenue Service (IRS).
Instead of providing the employment taxes to the IRS, Harper allegedly caused FDP to pay his personal expenses, including investments in the stock market, payments for his son’s pharmacy school tuition, purchases of real property in Virginia and North Carolina, and purchases of automobiles. The indictment further alleges that in over 15 years Harper only filed one employment tax return with the IRS.
If convicted, Harper faces a statutory maximum of five years in prison on each charge. In addition, he faces a period of supervised release, restitution and monetary penalties. An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Cullen commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney Daniel McGraw and Assistant U.S. Attorney Charlene Day, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Virginia Man Indicted on Multiple Counts of Producing Child PornographyRead the Press Release
A federal grand jury in Alexandria, Virginia returned an indictment today charging a Centreville, Virginia man with multiple counts of production of child pornography.
According to the indictment, Kenneth Wayne Burk, 37, among other things, used, employed, and coerced a child to engage in sexually explicit conduct for the purpose of producing images of that conduct, and he did so on multiple occasions. His arraignment is scheduled on June 8 at 9 a.m. before U.S. District Judge Leonie Brinkema for the Eastern District of Virginia.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Tracy Doherty-McCormick of the Eastern District of Virginia, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office and Fairfax County Chief of Police Colonel Edwin C. Roessler Jr., made the announcement.
The case is being investigated by the FBI and the Fairfax County Police Department. Trial Attorney Kyle P. Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Whitney D. Russell of the Eastern District of Virginia are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Vermont Man Pleads Guilty to Escape ChargeRead the Press Release
CONCORD - William James Dunn, Jr., 35, previously of Burlington, Vermont, pleaded guilty in federal court to escape from the custody of the Bureau of Prisons, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Dunn has been in federal custody since a felony conviction in 2012 in the United States District Court for the District of Vermont for narcotics distribution. In September of 2017, he was transferred from a Bureau of Prisons facility to the Hampshire House in Manchester, New Hampshire in order to start his pre-release programming. On December 23, 2017, he received a nine-hour furlough to attend a family funeral in Burlington, Vermont. Dunn did not return within the prescribed nine hours and his whereabouts were unknown until he turned himself in to the U.S. Marshals in Burlington, Vermont on the morning of December 27, 2017.
Dunn is scheduled to be sentenced on August 30, 2018.
This matter was investigated by the United States Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Charles L Rombeau.
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U.S. Army Lieutenant Colonel Arrested and Charged for Defrauding Insurance ProvidersRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that an officer of the U.S. Army has been charged for allegedly defrauding insurance providers to obtain hundreds of thousands of dollars in fraudulent insurance payments.
Christopher James DeMure, 40, a Lieutenant Colonel in the U.S. Army, has been named in a criminal complaint charging him with mail fraud, wire fraud, and money laundering. DeMure was arrested this morning and is expected to make his initial appearance on the charges tomorrow afternoon.
The complaint alleges that, from September 2014 until February 2018, DeMure engaged in a scheme to defraud USAA Federal Savings Bank (USAA) and American Express (AMEX) to obtain insurance payments by submitting fraudulent claims and other fraudulent documents. DeMure spent much of the insurance payout money to pay off automobile loans, credit cards, mortgage loans, and other personal debts and expenses, including a 2016 Chevrolet Suburban and a 2016 Audi A7. In all, DeMure’s fraudulent insurance claims allegedly sought payments in the amount of approximately $475,000, and that DeMure has actually received approximately $394,000, from USAA and AMEX, combined.
More specifically, it is alleged that DeMure purchased items of value, such as jewelry, performance bicycles, clothing, and electronics that were later the subject of insurance claims that he filed with USAA and/or AMEX. On multiple occasions, DeMure cancelled an online order for or physically returned items for a full refund, and thereafter listed those same items on a fraudulent insurance claim with USAA and/or AMEX, wherein he falsely claimed that the item was lost, misplaced, and/or stolen. Beginning in October 2015, DeMure began to file parallel fraudulent insurance claims for certain items with both USAA and AMEX. In some cases, DeMure provided different explanations for the loss, misplacement, or theft of those items to USAA and AMEX.
DeMure’s scheme to defraud involved at least seven separate loss incidents. For example, in July 2016, DeMure moved from Fort Benning, Georgia, to Joint Base Elmendorf-Richardson, Alaska. The U.S. Army paid for a company to pack and move DeMure’s residential household goods from Georgia to Alaska. Those household goods were packed by the moving company on July 13, 2016. On July 21, 2016, DeMure contacted USAA and claimed that a U-Haul trailer that he had rented had been burglarized in Louisville, Kentucky, where he stopped on the way to Indiana. DeMure claimed the loss amount was $215,317.68. The following day DeMure contacted the Louisville Metro Police Department to report the burglary. In his USAA claim, DeMure identified numerous items as having been stolen from the U-Haul in Louisville, ranging from jewelry to performance bicycles. The jewelry items included a Tiffany & Co. necklace that DeMure told USAA was a family heirloom, which had an appraised value of $35,000. In fact, business records show that DeMure purchased the necklace on June 1, 2016, had it appraised on June 15, 2016, returned it on July 6, 2016, and on July 11, 2016, had it insured by USAA. Altogether, DeMure received an overall payment benefit of $183,339.73 from the claims he filed with USAA and AMEX related to the purported July 20, 2016, U-Haul burglary.
The complaint further alleges that some of the supporting documents that DeMure submitted to USAA and AMEX were fraudulent. For example, in support of an insurance claim, DeMure allegedly submitted a fake Palmer Police Department report to AMEX to evidence the loss incident in question.
If convicted, DeMure faces a maximum sentence of 20 years in prison and a fine of $250,000, or both, for the most serious charges alleged in the complaint. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation (FBI) conducted the investigation leading to the charges in this case, with assistance from the U.S. Army Criminal Investigation Command (commonly known as CID). This case is being prosecuted by Assistant U.S. Attorney Andrea W. Hattan.
A complaint is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Two Tortola Men Arrested at the Cyril E. King Airport for Allegedly Smuggling 11 Kilograms of Cocaine with the intent to DistributeRead the Press Release
St. Thomas, USVI – Jason Frett, 36, and Ashley Warner, 54, both of Tortola, were arrested today on a complaint charging them with possession of cocaine with the intent to distribute, United States Attorney Gretchen C.F. Shappert announced. Frett and Warner made their initial appearance before Magistrate Judge Ruth Miller and were detained pending further proceedings.
According to the complaint, Frett and Warner were stopped by U.S. Customs and Border Protection (CBP) officers at the Cyril E. King airport after it was discovered that Frett and Warner were attempting to smuggle eleven kilograms of cocaine through the airport to the U.S. mainland in coolers. The white powdery substance discovered inside the coolers, field tested positive for cocaine and weighed approximately 11 kilograms.
If convicted of possession of a controlled substance with the intent to distribute, Frett and Warner face a term of imprisonment of not less than 10 years and not more than life and a fine of $10,000,000.00.
The case is being investigated Homeland Security Investigations (HSI) and U.S. Customs and Border Protection (CBP) and prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Two Luzerne County Men Charged with Armed Bank RobberyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Gerald Pambianco, age 29, of Plains Township, Pennsylvania, and Derek Spaide, age 26, of Hanover Township, Pennsylvania, were indicted on May 22, 2018, by a federal grand jury on one count of conspiracy to use firearms in furtherance of a crime of violence, one count of armed bank robbery, one count of brandishing a firearm in furtherance of a crime of violence, and one count of being convicted felons in possession of firearms.
According to United States Attorney David J. Freed, the indictment alleges that on May 16, 2018, Pambianco and Spaide traveled to the Luzerne National Bank in Plains Township. Spaide placed a t-shirt over his face, entered the bank and pointed a rifle at a bank employee, demanded money and stole approximately $8,204. Spaide then entered a vehicle driven by Pambianco, who drove away from the bank and engaged in a high-speed vehicle chase with police.
The investigation was conducted by the Federal Bureau of Investigation, the Pennsylvania State Police, the Plains Township Police Department, and the Hanover Township Police Department. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
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.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for the armed bank robbery charge under federal law is 25 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. The charge of brandishing a firearm in furtherance of a crime of violence carries a mandatory minimum sentence of seven years, consecutive to any other sentence. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two Charged with Sex Trafficking by Force – One Defendant Remains at LargeRead the Press Release
PHILADELPHIA – Two men, one from Georgia, the other from California, were charged today with sex trafficking and related crimes, announced U.S. Attorney William M. McSwain.
Kashamba John, 30, of Atlanta, and Tyler Robert Bachtel, 34, of Montclair, California, were charged today by indictment with one count of sex trafficking by means of force, threats of force, fraud and coercion (Count One). John was additionally charged with one count of transporting an individual in interstate commerce with the intent that the individual engage in prostitution (Count Two).
Bachtel remains at large. Anyone with information on his whereabouts should contact local law enforcement or the ICE tip line at 866-DHS-2-ICE.
“The victims of sex trafficking pay a price that lasts a lifetime,” said U.S. Attorney McSwain. “We have to do everything possible to find the offenders and bring them to justice.”
If convicted of sex trafficking, each defendant faces a mandatory minimum term of 15 years’ imprisonment up to a possible sentence of life imprisonment, a minimum of five years up to lifetime of supervised release, and a $250,000 fine. In addition, on Count Two, John faces a maximum of 10 years’ imprisonment as well as up to three years supervised release and a $250,000 fine.
The case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement - Homeland Security Investigations, the Pennsylvania State Police, and the Office of the Attorney General for the Commonwealth of Pennsylvania, and is being prosecuted by Assistant United States Attorneys Melanie Babb Wilmoth and Michelle Morgan.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed
innocent unless and until proven guilty.
Torrington Man Involved in Medicaid Fraud Scheme is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MAURICE SHARPE, 46, of Torrington, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to five years of probation for committing health care fraud.
According to court documents and statements made in court, in February 2011, SHARPE and his mother, Patricia Lafayette, and another individual formed Family First Community Support Services, LLC, a social services agency located in Torrington. SHARPE was the office manager for the agency. Lafayette and the other individual approached Anne Charlotte Silver, a licensed clinical social worker who owned and operated Silver Counseling Services, LLC, in Canton and Bantam. Lafayette and the other individual proposed a scheme to Silver to defraud Medicaid by permitting Lafayette and the other individual to bill Medicaid for psychotherapy services using Silver’s Medicaid provider number. The services were either performed by unlicensed individuals or not performed at all. Under the scheme, Silver kept 25 percent of the proceeds, and paid the remaining 75 percent to Lafayette and the other individual.
Medicaid was defrauded of approximately $1.6 million through this scheme, of which Lafayette received more than $1.2 million.
On December 13, 2016, SHARPE pleaded guilty to one count of health care fraud and admitted that he submitted claims to Medicaid for psychotherapy services that falsely represented that Silver had personally provided the services. SHARPE also admitted that he submitted hundreds of claims to Medicaid for psychotherapy services purportedly provided to SHARPE’s family members, including SHARPE’s children and nieces and nephews, when no such services were ever provided. SHARPE also assisted in the preparation of records that falsely documented the nature and extent of the services received by his family members.
Judge Bolden ordered SHARPE to restitution of $211,131.
Lafayette and Silver also pleaded guilty to health care fraud for their roles in the scheme. On April 27, 2017, Lafayette was sentenced to 21 months of imprisonment and six months of home confinement. On May 8, 2017, Silver was sentenced to 10 months of imprisonment. Lafayette and Silver were ordered to pay restitution of $1.6 million.
This matter is being prosecuted by Assistant U.S. Attorney David J. Sheldon and Auditor Susan Spiegel.
This case has been jointly investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services and the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office, with assistance from the Connecticut Attorney General’s Office. U.S. Attorney Durham thanked the Connecticut Department of Social Services for their role in identifying the fraudulent scheme and supporting the investigation and prosecution of the case.
The U.S. Attorney’s Office, Chief State’s Attorney’s Office and Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the FBI. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Three Plead Guilty to Conspiring to Distribute Heroin, Fentanyl and CrackRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Melina Snead, a/k/a “Lady,” 24, of Rochester, New York, Jeffrey Johnson, 57, of Gardiner, Maine, and Nicole Truman, a/k/a “Coley,” 32, of Augusta, Maine pled guilty in U.S. District Court to conspiracy to distribute heroin, fentanyl and cocaine base, commonly known as “crack.”
According to court records, between June 2015 and March 2017, the defendants conspired with others to acquire heroin, fentanyl and crack in Rochester and transport it to Central Maine for distribution. Snead sold the drugs in Central Maine. Johnson allowed Rochester conspirators to sell drugs from his residence and assisted in distributing, storing and transporting the drugs. Truman transported drugs from storage to residences for distribution.
The defendants face up to 20 years in prison term, a $1,000,000 fine, and between three years and life on supervised release.
The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta, Maine Police Department and was prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Tax Return Preparer Sentenced to A Year in PrisonRead the Press Release
OAKLAND – Eric Oase was sentenced today to 12 months and one day in prison for filing false claims with the United States, and ordered to pay restitution of $357,531.76, announced Acting United States Attorney Alex G. Tse and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The sentence was handed down by the Honorable Yvonne Gonzalez Rogers, U.S. District Judge, following the entry of Oase’s guilty plea to the charges on January 25, 2018.
Oase, 53, of Las Vegas, Nev., pleaded guilty to two counts of filing false claims with the United States. According to his plea agreement, Oase admitted to owning and operating E&K Tax Solutions in San Leandro, Calif., a business under which he prepared and filed false tax returns. In 2012, Oase prepared, and caused to be filed for his clients, tax returns covering varying calendar years between 2008 and 2011. The tax returns reported false wages, false education expenses, or both. Often, Oase caused to be delivered or filed on behalf of his clients tax returns that were preprinted and completed with income and expenses even before the taxpayer provided any income or expense information. By reporting false wages and expenses, Oase generated fraudulent tax refunds and then kept approximately 20% of the fraudulent refund as a fee. In total, Oase prepared tax returns claiming fraudulent tax refunds of $477,333. The IRS actually disbursed $357.531.76 pursuant to Oase’s scheme.
A federal grand jury indicted Oase on January 17, 2017, charging him with multiple counts of filing false claims with the United States, in violation of 18 U.S.C. § 287. Pursuant to his plea agreement, Oase pleaded guilty to two of the counts and the remaining counts were dismissed.
In addition to the prison term, Judge Gonzalez Rogers also ordered Oase to serve three years of supervised release. Judge Gonzalez Rogers ordered the defendant to self-surrender to begin serving his sentence on or before July 16, 2018.
Assistant U.S. Attorney José A. Olivera is prosecuting the case. The prosecution is the result of an investigation by IRS, Criminal Investigation.
Taj Armon Reid Convicted of Conspiracy and Receiving BribesRead the Press Release
SAN FRANCISCO – Taj Armon Reid was convicted of conspiracy and receiving bribes by a federal jury today, announced Acting United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge Jack Bennett. The guilty verdicts followed a four-day jury trial before the Honorable Charles R. Breyer, U.S. District Court Judge.
The jury found that Reid, 47, of Oakland, received bribes on two occasions in connection with business being offered by the California Department of Veterans Affairs, also known as CalVet. The jury also concluded Reid conspired to receive the bribes with Eric Worthen, 46, of Pleasant Hill, who at the time was an employee of CalVet.
Evidence at trial showed that Reid accepted cash from a source on April 18, and again on May 8. In April, Reid offered a developer an inside advantage on two CalVet construction projects in exchange for $10,000 cash. Specifically, Reid offered to use Worthen’s position at CalVet to circumvent the normal bidding process for a residential home project in Ventura, California. The May transaction involved a kitchen remodel project at the veterans’ home in West Los Angeles. On this occasion, Reid and Worthen accepted $2,000 cash in exchange for providing to the developer inside information that the co-conspirator took from the CalVet office. Unbeknownst to Reid and Worthen, the “developer” to whom they were providing an inside track on the CalVet contracts was a source working under the direction of the FBI and posing as a developer willing to pay bribes in order to obtain contracts with public agencies. At the conclusion of the trial, the jury found Reid guilty of conspiracy, in violation of 18 U.S.C. § 371, and two counts of receiving a bribe or reward, in violation of 18 U.S.C. § 666(a)(1)(B).
“Defendant Reid, motivated by the lure of easy money, attempted to take advantage of inside access to state contract,” said Acting U.S. Attorney Tse. “The kind of ‘pay to play’ corruption exposed in this case is unfair to honest government contractors, inflates the cost of public projects, and undermines the public’s confidence in the integrity of government agencies and their employees. Combatting public corruption is and will continue to be a priority of the U.S. Attorney’s Office.”
Reid’s sentencing hearing is scheduled for August 29, 2018, before Judge Breyer in San Francisco. The maximum statutory penalty for the violation of 18 U.S.C. § 371 is five years and a fine of $250,000, and the maximum penalty for the violations of 18 U.S.C. § 666(a)(1)(B) is ten years and a fine of $250,000. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Worthen pleaded guilty in August of 2017 to his part in the conspiracy and for taking bribes. His sentencing is scheduled has not yet been scheduled.
The case is being prosecuted by the Special Prosecutions and National Security Unit of the U.S. Attorney’s Office and the FBI, with assistance from the Department of Treasury, Office of Inspector General.
Stockton Man Sentenced to over 5 Years in Prison in Credit Card Fraud and Identity Theft SchemeRead the Press Release
SACRAMENTO, Calif. — Boone B. Khoonsrivong, 41, of Stockton, was sentenced today by U.S. District Judge Troy L. Nunley to five years and five months in prison for conspiracy to commit credit card fraud and aggravated identity theft in connection with a scheme aimed at Target REDcard account holders across the United States involving hundreds of fraudulent transactions and at least 1,000 victims, United States Attorney McGregor W. Scott announced. Khoonsrivong was also sentenced to a concurrent term of three years for destruction of letter boxes in in Wallace, California, charged in a separate indictment.
According to the indictment charging the credit-card fraud conspiracy, between March 2014 and September 2015, Khoonsrivong and eight co-conspirators stole personal information from victims through various methods. The conspirators then used that information to create unauthorized access devices or otherwise used unauthorized access devices to obtain things of value in excess of $1,000. Part of the scheme involved using unauthorized access devices in the form of Target REDcard account numbers to buy large amounts of electronics, pre-paid gift cards, and other goods at Target locations throughout the Sacramento area, northern California, and elsewhere. The indictment further alleged that Khoonsrivong possessed and used device-making equipment with the intent to defraud.
In all, the indictment alleges that more than 300 counterfeit and unauthorized access devices were possessed, used, produced, or trafficked by members of the conspiracy, and over 1,000 victims have been identified to date as having had their identities compromised as a result of the conspiracy. All of Khoonsrivong’s eight co-defendants have pled guilty, six of the co-defendants have already been sentenced, and two await sentencing.
This case is the product of an investigation by the United States Postal Inspection Service and the Stockton Police Department. Assistant United States Attorneys André M. Espinosa and Rosanne L. Rust are prosecuting the case.
Stock Promoter Sentenced to 44 Months’ Imprisonment for $131 Million Market Manipulation SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Louis Petrossi, a former registered broker, was sentenced by United States District Court Judge Brian M. Cogan to 44 months’ imprisonment, to be followed by three years’ supervised release, for his role in the fraudulent market manipulation of ForceField Energy Inc. (ForceField), a publicly-traded company previously listed on the NASDAQ under the ticker symbol “FNRG.” The Court also ordered Petrossi to pay $8 million in restitution and $335,748.78 in forfeiture. On May 2, 2017, following a two-week trial, a federal jury convicted Petrossi of conspiracy to commit securities fraud, conspiracy to commit wire fraud, money laundering conspiracy and securities fraud.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
Between 2009 and 2015, Petrossi and others engaged in a scheme to defraud investors in ForceField, a purported worldwide distributor and provider of LED lighting products and solutions, by artificially controlling the price and volume of traded shares of ForceField through, among other means: (1) using nominees to purchase and sell ForceField stock without disclosing this information to investors and potential investors, (2) orchestrating the trading of ForceField stock to create the misleading appearance of genuine trading volume and interest in the stock, and (3) concealing secret payments to stock promoters and broker dealers who promoted and sold ForceField stock to investors and potential investors while falsely claiming to be independent of the company. The fraudulent scheme caused a loss of approximately $131 million to the investing public.
Specifically, between December 2009 and April 2015, Petrossi received secret cash payments from a ForceField executive in exchange for promoting the sale of ForceField stock to investors while representing himself to investors as the CEO of an investment research firm, “Wealth Research Institute.” He did not disclose these payments. Petrossi also engaged in manipulative trading of ForceField stock at the direction of the same ForceField executive.
On March 9, 2018, Petrossi was convicted in the United States District Court for the Middle District of Pennsylvania of committing a separate fraud scheme, in which he participated from January 2015 through January 2017. This scheme, which involved the misappropriation of over $1 million in investor funds, continued after Petrossi was arrested and placed on pretrial release in the ForceField case.
Today’s proceeding is the eighth sentencing to take place in connection with the fraud in ForceField securities. One remaining defendant awaits sentencing.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Mark E. Bini and Lauren H. Elbert are in charge of the prosecution.The Defendant:
LOUIS PETROSSI
Age: 77
Residence: Reno, NevadaE.D.N.Y. Docket No. 16-CR-234 (BMC)
Stamford Refuse Company Owner Pleads Guilty to Failing to File Tax ReturnsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, announced that WAYNE MARGARUM, SR., 71, of Stamford, pleaded guilty today in Hartford federal court to two counts of willful failure to file an income tax return.
According to court documents and statements made in court, for more than 40 years, MARGARUM has owned and operated Margarum Refuse, providing garbage removal services for customers in the Stamford area and parts of Westchester County, New York. The business services approximately 600 to 700 clients with fees ranging from $25 to $60 per month. Neither MARGARUM nor his business has filed tax returns for the tax years 2004 until the present.
In pleading guilty, MARGARUM has agreed to make $356,330 in restitution to the U.S. Treasury, and to cooperate with the IRS to pay all outstanding taxes, interest and penalties.
MARGARUM is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on September 19, 2018, at which time he faces a maximum term of imprisonment of two years and a maximum fine of approximately $700,000.
MARGARUM is released on bond pending sentencing.
This matter has been investigated by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
St. Louis Resident Sentenced to 14 Years in Federal Prison for Heroin and Cocaine Conspiracy in Southern IllinoisRead the Press Release
A St. Louis resident was sentenced to federal prison on Thursday, May 24, 2018, for his role in the conspiracy to distribute heroin and cocaine in Southern Illinois and elsewhere.
United States Attorney Donald S. Boyce announced the sentence for the Southern District of Illinois. Defendant Charles Christopher Thirdkill, 48, was sentenced to 168 months in prison, 5 years of supervised release, a $2,000 fine, and a $200 special assessment.
An indictment filed on October 18, 2016, charged Thirdkill and co-defendant Marlon Lee in a two-count indictment with conspiracy to distribute, and possess with intent to distribute, controlled substances and a second count of unlawful distribution of heroin. Co-defendant Lee pleaded guilty and subsequently sentenced to 120 months in prison.
This investigation was conducted as part of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative brings federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. The investigation was conducted by agents from the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
St. Francis Man Indicted for Burglary and LarcenyRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for First Degree Burglary and Larceny.
Joseph Abraham Mack, a/k/a Joseph Mack, Jr., age 25, was indicted on March 13, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 23, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 25 years in prison and/or a $250,000 fine, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on January 14, 2018, Mack unlawfully entered the victim’s residence. The Indictment further alleges that Mack stole a pickup truck and belt buckle from the same victim.
The charges are merely accusations and Mack is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Mack was released on bond pending trial. A trial date has not been set.
South Bend, Indiana Men SentencedRead the Press Release
SOUTH BEND - Andrew Jacobs, age 20, of South Bend, Indiana, was sentenced before South Bend District Court Judge Jon E. DeGuilio for brandishing a firearm during a crime of violence, announced U.S. Attorney Kirsch.
Jacobs was sentenced to 84 months imprisonment followed by 2 years of supervised release. In the same case, last month on April 26, 2018, Lorenzo Crawford, age 20, also of South Bend, was sentenced by Judge DeGuilio for the same offense to 84 months in prison followed by 2 years of supervised release.
According to documents in this case, the defendants working together placed an advertisement for escort services on Backpage.com. A man responded by text and arranged to have sex with a fictitious prostitute at a room in a hotel. The defendants waited for the man, grabbed him when he came to the room and proceeded to beat him. One of the defendants brought a Smith & Wesson .38 Special revolver with them which was used to beat the victim. The defendants also took cash, credit cards and a cell phone from the victim. While the victim was at the hotel, one of the defendants also checked the victim’s car for money or other valuables.
This case was investigated by the FBI. The case was handled by Assistant U.S. Attorneys John Maciejczyk and Ken Hays.
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Sixth Member of Reading Area Bank Fraud Ring Charged – Ringleader Transferred Funds to InmatesRead the Press Release
PHILADELPHIA – A Reading man, and sixth member of a Reading area bank fraud ring, was charged with fraud today, announced U.S. Attorney William M. McSwain.
A criminal information[1] was filed charging, Angel Ocasio, Jr., 20, of Reading, Pennsylvania, with one count of bank fraud. Ocasio is alleged to be a member of a bank fraud ring operated by Steven Ronald Randall of Philadelphia.
Randall previously pled guilty on March 15, 2018 to one count of bank fraud and five counts of aggravated identity theft before U.S. District Judge Joseph F. Leeson, Jr. As part of his guilty plea Randall admitted that he was a leader of a scheme to defraud First National Bank and used persons to open bank accounts and obtain ATM debit cards so that their bank accounts could be used to deposit fraudulent checks and withdraw cash before FNB determined that the checks were fraudulent. Randall had also admitted that FNB sustained actual losses in excess of $76,519, with intended losses of in excess of $115,782, as a result of this scheme. Randall had also admitted that he transferred funds from the accounts opened by his co-schemers to inmates incarcerated within the Pennsylvania Department of Corrections.
The information filed today alleges that Ocasio opened an account at FNB that he knew would be used to deposit fraudulent checks and withdraw cash before the bank discovered that the checks were fraudulent, in return for a share of the fraud proceeds.
“This was a sophisticated scheme that took excellent investigative work to unravel,” said U.S. Attorney McSwain. “Punishing financial fraud – as well as identity theft – is and will continue to be a top priority of my office.”
Ocasio faces a maximum sentence of 30 years’ incarceration, a five-year period of supervised release, and a fine of $1,000,000.
Ocasio is the sixth member charged as part of this group. In addition to Ocasio and Randall, the other members of the bank fraud ring previously charged are Jaylen Jefferson, 19, of Reading, Dawson Thomas, 19, of Mohnton, Rebecca Ilie, 25, of Reading, and Linda Pacheco, 40, of Reading.
The case was investigated by the United States Postal Inspection Service, the Federal Bureau of Investigation, and the Cumru Township Police Department and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
[1] An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty
Salvadoran national charged with stealing identity of Puerto Rican manRead the Press Release
A federal Grand Jury returned a two-count indictment charging Oscar Armando Amaya-Melendez, 32, a citizen of El Salvador, with stealing the identity of a Puerto Rican man to conceal his illegal presence in the United States.
Amaya-Melendez stole the identity of a Puerto Rico resident in order to obtain an Ohio driver’s license. This took place between 2010 and 2018, according to the indictment.
Assistant U.S. Attorney Brad J. Beeson is prosecuting the case following an investigation by United States Border Patrol, the Department of Homeland Security.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt
Salvadoran National Sentenced for Unlawful ReentryRead the Press Release
BOSTON – A Salvadoran national pleaded guilty yesterday and was sentenced in federal court in Boston for illegally reentering the United States after being deported.
Jose Menjivar-Mancia, 39, pleaded guilty to one count of unlawful reentry of a deported alien before U.S. Senior District Court Judge Douglas P. Woodlock, who immediately sentenced Menjivar-Mancia to time served and one year of supervised release. Menjivar-Mancia will be subject to deportation proceedings.
On March 2, 2018, Menjivar-Mancia was encountered by law enforcement and determined to be illegally present in the United States; he has been in the custody of Immigration and Customs Enforcement since. Menjivar-Mancia was previously deported on May 31, 2007.
United States Attorney Andrew E. Lelling and Thomas P. Brophy, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement. Assistant U.S. Attorney Kenneth Shine of Lelling’s Major Crimes Unit prosecuted the case.
Roswell woman sentenced for distributing counterfeit oxycodone pills containing fentanyl & synthetic opioidsRead the Press Release
ATLANTA - Cathine Lavina Sellers was sentenced to three years in federal prison for possession with intent to distribute fentanyl and two synthetic opioids, furanyl-fentanyl and U-47700.
“This drug dealer deliberately disguised pills to make them look like oxycodone tablets, laced them with deadly fentanyl and two synthetic opioids, and then sold the fake pills out of her residence in Roswell,” said U.S. Attorney Byung J. “BJay” Pak. “These counterfeit pills posed a particular danger to our communities, as they are comparably 50 times more potent than prescription oxycodone and present a substantially higher risk of overdose.”
“The dangerous substance fentanyl is 50 to 100 times more potent than morphine and 30 to 50 times more potent than heroin,” said “Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “Furanyl-fentanyl was designed by foreign chemists, as an effort to subvert the controlled substances laws, but nonetheless is extraordinarily powerful. These dangerous substances, when added to street pills, have caused scores of deaths across this nation. DEA’s job is to protect its citizens from these substances. The true spirit of federal, state and local law enforcement cooperation led to the successful prosecution of this case.”
According to U.S. Attorney Pak, the charges and other information presented in court: On June 13, 2017, Sellers sold approximately 100 pills for $1,400 in cash from her Roswell townhouse to a confidential source working with the DEA. Later that night, DEA agents searched Sellers’s townhouse and retrieved the money from the earlier transaction, and they found approximately 100 more counterfeit pills concealed in a dietary supplement bottle. Agents also found a loaded Glock handgun and two magazines. DEA agents arrested Sellers that night. A DEA lab test revealed the counterfeit pills contained furany-fentanyl, U-47700 and fentanyl; none of these substances are present in legitimate oxycodone tablets. The counterfeit pills are similar in appearance to a legitimate 30mg Roxicodone tablet, except they are a slightly lighter color of blue than the regular pills.
Cathine Lavina Sellers, 39, of Roswell, Georgia has been sentenced to three years in prison to be followed by three years of supervised release. Sellers was convicted on these charges on January 30, 2018, after she pleaded guilty.This case is being investigated by the Drug Enforcement Administration.
Assistant U.S. Attorney John T. DeGenova prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Rosebud Man Charged with Failure to Appear and EscapeRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Failure to Appear and Escape from Custody.
Anthony One Star, Jr., a/k/a Tony One Star, age 30, was indicted on May 15, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 23, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction for each count is up to 5 years in prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
One Star was previously indicted for Assaulting, Resisting and Impeding a Federal Officer. On November 1, 2017, he pled guilty to that charge and was ordered detained in the custody of the U.S. Marshals Service pending sentencing. The Indictment alleges that on March 23, 2018, One Star, who had been released from custody to attend a treatment program, failed to return to custody as ordered. The Indictment further alleges that on April 2, 2018, One Star failed to appear for his scheduled sentencing hearing.
The charges are merely accusations and One Star is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
One Star was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Roseboro Man Charged with Carjacking on Interstate 95Read the Press Release
WILMINGTON– The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that a Federal grand jury in Wilmington has returned an indictment against RAYMOND LEE BRYANT, JR, of Roseboro, North Carolina. BRYANT is charged with carjacking, carrying and brandishing a firearm during and in relation to the carjacking, possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime.
If convicted of these charges, BRYANT would face a statutory minimum of fifty-five years imprisonment and a term of supervised release following any term of imprisonment.
According to law enforcement, BRYANT, is alleged to have committed multiple carjackings on Interstate 95 in Dunn, North Carolina on May 3, 2018. BRYANT is alleged to have approached a semi-truck and trailer, forced the driver and passenger out of the truck at gunpoint after firing a round and attempted to drive the truck away. As BRYANT was backing up the truck, it jack-knifed and blocked the northbound lanes of Interstate 95. BRYANT exited the truck and attempted to carjack another semi-truck and trailer, however the driver of that truck exited the vehicle as he saw BRYANT approach, locked the door and ran. BRYANT then approached a third truck, brandished a firearm and carjacked that truck. BRYANT sped north on Interstate 95 and was later arrested by the North Carolina Highway State Patrol in Nash County.
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 charge and allegations contained in the Indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the North Carolina State Highway Patrol and the Harnett County Sheriff’s Office investigated this case.
Rochester Man Sentenced for Drug and Gun PossessionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Thomas Lewis, 28, of Rochester, NY, who was convicted of possession of heroin with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime, was sentenced to 87 months in prison by Senior U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that on October 27, 2016, Rochester Police Officers executed a search warrant at 1254 North Clinton Avenue, Apartment 2, in Rochester. During the search, officers recovered a bundle of heroin (containing 10 individually-packaged white envelopes), two bags of cocaine, and a Bersa Thunder .380 caliber handgun. The handgun was loaded with seven rounds in the magazine and one round in the chamber. Officers also recovered a box of .380 caliber ammunition, paraphernalia used to process heroin and cocaine for sale, and $349 in cash.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Rapid City Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Bradley Makes Room For Them, age 33, was indicted on May 15, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 23, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Makes Room For Them was convicted of Aggravated Sexual Abuse in September 2003. As a result of this conviction, he is required to register as a sex offender. It is alleged that between April 6, 2018, and April 28, 2018, Makes Room For Them, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender.
The charge is merely an accusation and Makes Room For Them is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Makes Room For Them was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rapid City Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Patrick Black Spotted Horse, age 28, was indicted on May 15, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 23, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Black Spotted Horse was convicted of Sexual Abuse of a Minor in March 2010. As a result of this conviction, he is required to register as a sex offender. It is alleged that between March 11, 2018, and May 3, 2018, Black Spotted Horse, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender.
The charge is merely an accusation and Black Spotted Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Black Spotted Horse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Raleigh Man Sentenced to More Than 21 Years for Manufacturing Child PornographyRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, Chief United States District Judge James C. Dever, III sentenced ADAM GEOFFREY FRANKEL, 33, of Cary, North Carolina, to 295 months of imprisonment followed by ten years of supervised release for production of multiple videos containing child pornography.
FRANKEL was named in a twelve-count Superseding Indictment on September 8, 2017. On December 11, 2017, FRANKEL pled guilty pursuant to a plea agreement to manufacturing child pornography.
In October of 2014 Cary Police Department began an online investigation relating to the distribution and receipt of child pornography through file sharing programs. During the course of the investigation, FRANKEL was identified downloading and distributing child pornography from an IP address associated with his home. A search warrant was issued for FRANKLE’s home and law enforcement seized multiple computers, external hard drives, cellular phones and media storage devices. The forensic examination of the items collected contained multiple videos created by FRANKEL, he communicated with underage females and solicited them to perform sexual acts on video. The forensic examination also uncovered the defendant’s collection of child pornography of a least 136,350 images.
In addition to the prison sentence, FRANKEL agreed to the forfeiture of his residence located on Belrose Drive in Cary along with several pieces of computer equipment, all of which were used to commit the charged offense.
Mr. Higdon commented: “The twenty-one and a half year sentence imposed by the Court certainly matches the horrible nature of the crime in this case. This defendant victimized several children with his production of pornography as well as his distribution and receipt of an incredible volume of pornography produced by others. This sentence should be a warning to others engaged in this horrendous conduct – we will not tolerate the victimization of our children and we will seek lengthy sentences as punishment for this behavior and as a means of ensuring you cannot prey upon others.”
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
The Cary Police Department conducted the criminal investigation of this case. Assistant United States Attorney Melissa Belle Kessler handled the prosecution of this case for the United States.
Raleigh Man Sentenced for Receipt and Possession of Child PornographyRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that in federal court, Chief United States District Judge James C. Dever, III sentenced STEPHEN GLENN BATTS, 48, of Raleigh, North Carolina, to 151 months of imprisonment followed by 10 years of supervised release.
BATTS was named in a ten-count Indictment on September 8, 2017. On January 23, 2018, BATTS pled guilty to nine counts of Receipt of Child Pornography and one-count of Possession of Child Pornography.
In December 2016, a detective with the Cary Police Department, conducted an online investigation looking for offenders sharing child pornography. The investigation focused on an Internet Protocol (IP) because it was sharing known images of child pornography. The detective located files being shared by this IP address. Officers connected to the target computer and downloaded 735 files. A review of those files showed that 598 were child pornography while the other were child erotic in nature but not sexual conduct. The majority of the 598 files downloaded by investigators were of sexual acts with infants, toddlers, and children under 6 years old. This information was relayed to Homeland Security Investigations in Raleigh for further investigation. Further along in the investigation, agents identified the address associated with that IP address and obtained a search warrant.
On February 1, 2017, a search warrant was executed by agents at BATTS’ residence. BATTS was present at the time of the search. During their search, investigators found several computer devices belonging to BATTS. BATTS provided a statement to agents, first denying but later admitting, that he searched and downloaded child pornography from his laptop computers. BATTS advised agents that he began looking at child pornography in 2002. BATTS said he also viewed child pornography in webinars. He acknowledged that he received child pornography over the internet.
A complete forensics examination of the files obtained from BATTS’ computer devices revealed approximately 962 videos and 39,078 images of child pornography. A review of the hard drive included numerous known internet search terms associated with child pornography.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
The Cary Police Department and Homeland Security Investigations conducted the criminal investigation of this case. Assistant United States Attorney James C. Kurosad handled the prosecution of this case for the United States.
Ponchatoula Man Indicted for Receipt of Materials Involving the Sexual Exploitation of MinorsRead the Press Release
NEW ORLEANS – DANIEL JUSTIN MAHAN, age 42, a resident of Ponchatoula, Louisiana, was indicted today for receipt of materials involving the sexual exploitation of minors, announced U.S. Attorney Duane A. Evans.
MAHAN was arrested on March 15, 2018, by Special Agents of the Federal Bureau of Investigation (FBI) subsequent to the execution of a search warrant at his home. The FBI’s investigation revealed that MAHAN was in possession of a laptop computer which contained images depicting the sexual victimization of prepubescent children.
If convicted, MAHAN faces a mandatory minimum five-year term of imprisonment and a maximum sentence of 20 years imprisonment to be followed by up to a life term of supervised release, and a $250,000.00 fine.
U. S. Attorney Duane A. Evans reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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.”
This case was investigated by the Federal Bureau of Investigation. The prosecution is being handled by Assistant United States Attorney Tracey N. Knight.
Pfizer Agrees to Pay $23.85 Million to Resolve Allegations that it Paid Kickbacks Through a Co-Pay Assistance FoundationRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that pharmaceutical company Pfizer Inc. has agreed to pay $23.85 million to resolve allegations that it violated the False Claims Act by paying kickbacks to Medicare patients through a purportedly independent charitable foundation.
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or Part D, the beneficiary may be required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively “co-pays”). These co-pay obligations may be substantial for expensive medications. Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs.
As part of today’s settlement, the government alleged that Pfizer used a foundation, which claims 501(c)(3) status for tax purposes, as a conduit to pay the co-pay obligations of Medicare patients taking three Pfizer drugs, Sutent and Inlyta, which both treat renal cell carcinoma, and Tikosyn, which treats arrhythmia in patients with atrial fibrillation or atrial flutter. The government alleged that, in order to generate revenue and instead of giving Sutent and Inlyta to Medicare patients who met the financial qualifications of Pfizer’s existing free drug program, Pfizer worked with a third-party specialty pharmacy to transition some portion of those patients to the foundation, which covered the patients’ Medicare copays and caused Medicare claims to result from the filling of the patients’ Sutent and Inlyta prescriptions. In connection with this initiative, according to the government’s allegations, Pfizer made donations to the foundation and thereafter received data from the foundation, via the specialty pharmacy, confirming that the foundation funded the Medicare copays of Sutent and Inlyta patients. With respect to Tikosyn, Pfizer raised the wholesale acquisition cost of a package of forty .125 mg capsules of the drug by 44 percent during the last three months of 2015. Knowing the price increase would increase Medicare beneficiaries’ copay obligations for Tikosyn, which could result in more Medicare patients needing financial assistance to fill their Tikosyn prescriptions, Pfizer allegedly worked with the foundation to create and finance a fund for Medicare patients being treated for arrhythmia with atrial fibrillation or atrial flutter. According to the allegations in the settlement agreement, Pfizer coordinated the timing of the opening of the fund for these patients with the implementation of a Tikosyn price increase, and Pfizer then began referring to the foundation any Medicare patients who needed financial assistance to meet their newly-increased copays for the drug. For the next nine months, Tikosyn patients accounted for virtually all of the beneficiaries of the fund.
“Pfizer used a third party to saddle Medicare with extra costs,” said United States Attorney Andrew E. Lelling. “According to the allegations in today’s settlement agreement, Pfizer knew that the third-party foundation was using Pfizer’s money to cover the co-pays of patients taking Pfizer drugs, thus generating more revenue for Pfizer and masking the effect of Pfizer’s price increases. The Anti-Kickback Statute exists to protect Medicare, and the taxpayers who fund it, from schemes like these. At the same time, we commend Pfizer for stepping forward to resolve these issues in a responsible manner.”
“Kickbacks undermine the independence of physician and patient decision-making, and raise healthcare costs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “As today’s settlement makes clear, the Department will hold accountable drug companies that pay illegal kickbacks—whether directly or indirectly—to undermine taxpayer funded healthcare programs, including Medicare.”
“Today’s settlement demonstrates the FBI’s commitment to making sure patients receive, and the government pays for, health care that is not compromised by kickbacks,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “What Pfizer is accused of doing in this case—masking charitable contributions to increase company profits-- violates the basic trust patients extend to the healthcare system and threatens the financial integrity of the Medicare program.”
Pfizer also has entered into a corporate integrity agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG). The five-year CIA requires, among other things, that Pfizer implement measures designed to ensure that arrangements and interactions with third-party patient assistance programs are compliant with the law. In addition, the CIA requires reviews by an independent review organization, compliance-related certifications from company executives and Board members, and the implementation of a risk assessment and mitigation process.
“Our corporate integrity agreement promotes independence between Pfizer and any patient assistance programs to which it may donate,” said Gregory E. Demske, Chief Counsel to the Inspector General for the United States Department of Health and human Services. “Without true independence, as we have seen in this case, drug companies may use patient assistance programs as conduits for improper payments that harm Medicare.”
U.S. Attorney Lelling, Acting Assistant Attorney General Readler, HHS-OIG Chief Counsel Demske, and FBI SAC Shaw made the announcement today. This matter was investigated by HHS-OIG, the Federal Bureau of Investigation, the United States Postal Inspection Service, and the United States Department of Veterans Affairs Office of Inspector General. The matter was handled by Assistant U.S. Attorneys Gregg Shapiro, Abraham George, and Deana El-Mallawany of Lelling’s Office, and by Trial Attorneys Augustine Ripa and Sarah Arni of the Justice Department’s Civil Division.
Pensacola Tax Preparer Found Guilty of Preparing False Tax ReturnsRead the Press Release
PENSACOLA, FLORIDA – Benell English, 57, of Pensacola, was found guilty of 18 counts of preparing false tax returns yesterday following a three-day federal jury trial in Pensacola. The verdict was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
English, the tax return preparer at Select Tax Service on E Street in Pensacola, was found guilty of preparing and filing false tax returns with the Internal Revenue Service between 2013 and 2017. English fraudulently represented that the taxpayers had Schedule A itemized deductions, Schedule C business losses or profits, and/or household employee income without the taxpayers’ knowledge. English earned approximately $10,600 for preparing the 18 false returns. As a result, the Internal Revenue Service paid $182,887 in refunds that should not have been paid.
The maximum penalty for each count is three years in prison. Sentencing is scheduled for August 19, 2018, at the United States Courthouse in Pensacola.
This case resulted from an investigation by the Internal Revenue Service-Criminal Investigation and the Social Security Administration-Office of Inspector General. Assistant United States Attorney Alicia H. Forbes is prosecuting the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Owner of Milton Roofing Business Pleads Guilty to Failing to Report $2.1 Million in Business ReceiptsRead the Press Release
BOSTON – The owner of George H. Richard & Son Roofing in Milton, Mass., pleaded guilty today in federal court in Boston to filing a false tax return which failed to disclose substantial business receipts.
Harry S. Richard, 68, pleaded guilty to one count of filing a false individual tax return. U.S. District Judge Nathaniel M. Gorton scheduled sentencing for Sept. 11, 2018.
Richard owned and operated Richard Roofing, a business established by his great-grandfather in 1865. From 2010 through 2013, Richard deposited the bulk of the payments he received for roofing services into his personal bank accounts and failed to disclose those receipts to his tax return preparer or on his tax returns. Many of the checks he received from his customers were made payable to Richard personally, at his direction. Over the course of four years, Richard failed to report more than $2.1 million in business receipts on his tax returns, and thereby avoided paying taxes totaling about $353,246.
The charge of filing a false tax return provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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 and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Mark J. Balthazard of Lelling’s Economic Crimes Unit is prosecuting the case.
Operator of bogus charity pleads guilty to defrauding multiple companiesRead the Press Release
ATLANTA – Kai Brockington pleaded guilty in federal court to mail fraud and tax fraud for running a bogus charity that duped multiple large corporations into sending him hundreds of thousands of dollars.
“Brockington defrauded a number of companies that were seeking to better their communities through charitable donation matching programs,” said U. S. Attorney Byung J. “BJay” Pak. “Rather than using the money to provide healthcare for low- income individuals, he selfishly spent the money on himself and his family.
“Legitimate charities rely on the generosity of donors to carry out their humanitarian missions. Because of his audacity to seek personal benefit, Brockington’s undermined the benevolent intentions of every charity,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The FBI hopes his upcoming sentencing will send a message to anyone with similar intentions.”
“It is our mission to deter the illegal use of the mail for any criminal activity,” said Craig Goldberg, Postal Inspector in Charge of the Denver District. “We are committed to working together with our law enforcement partners to bring to justice those who would attempt to mask their criminal activity through the use of the mail.”
“Conspiring to defraud the government with an elaborate scheme to falsify charitable deductions is unlawful,” stated Gabriel L. Grchan, Acting Special Agent in Charge of the IRS Criminal Investigation St. Paul Field Office. “Mr. Brockington’s plea serves as an important reminder that the U.S. Attorney's Office and IRS Criminal Investigation are committed to bringing to justice those who commit and undertake such fraudulent schemes. Corporate officials hold positions of trust not only in their companies, but also in the eyes of the public. IRS CI will do everything we can to hold individuals accountable to the same tax laws that they are subject to, ensuring that our tax system is fair to everyone."
According to U.S. Attorney Pak, the charges, and other information presented in court: Brockington was the primary operator of “Our Genesis Project,” a non-profit entity that supposedly provided healthcare to underprivileged recipients. In reality, Our Genesis Project never conducted actual charitable work. Beginning in 2013, Brockington caused employees of several large companies to falsely tell their employers that they had donated money to Our Genesis Project. These large companies had programs that permitted their employees to donate money to a charity and request that the company match those donations.
From 2013 through 2017, these large companies donated approximately $668,000 to Our Genesis Project through charitable matching programs. Instead of using the donations for charitable endeavors, Brockington spent the funds on himself and his family members to purchase jewelry, expensive clothing, trips to Italy and Disney World, as well as making renovations to his family home and paying for other living expenses.
During this time period, Brockington repeatedly filed false tax returns with the IRS. This included false federal income tax returns that failed to account for the money he was earning from this scheme, as well as charity returns that falsely claimed Our Genesis Project was donating these funds for community grants, community activities, and community expenses. Additionally, Brockington filed for personal bankruptcy in 2015 and failed to disclose the substantial sums of money he earned from this fraud scheme.
Kai Brockington, 36, of Dallas, Georgia, pleaded guilty on May 23, 2018 to mail fraud and willfully filing a false federal income tax return. His sentencing is scheduled for August 22, 2018.
This case is being investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, and the U.S. Postal Inspection Service.
Assistant U.S. Attorney Thomas J. Krepp is prosecuting the case. Assistant U.S. Attorney Timothy C. Rank, of the District of Minnesota, provided invaluable assistance during the course of the investigation.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Ocala Man Sentenced to 20 Years in Prison for Conspiracy to Traffic Methamphetamine and FentanylRead the Press Release
Ocala, Florida – Senior U.S. District Judge James D. Whittemore today sentenced Tirso Hernandez-Astudillo (35, Ocala) to 20 years in federal prison for conspiracy to possess with the intent to distribute 500 grams or more of methamphetamine and possession with the intent to distribute 400 grams or more of fentanyl. A federal jury found him guilty on February 21, 2018. Also, co-conspirator Simon Rodriguez-Flores (48, Ocala) was sentenced to 11 years in federal prison for conspiracy to possess with intent to distribute 500 grams of more of methamphetamine. He pleaded guilty on February 7, 2018.
According to court documents, on May 24, 2017, in a parking lot in Ocala, Rodriguez-Flores sold approximately 4 ounces of crystal methamphetamine to a cooperating witness. On June 2, 2017, at the same location, Rodriguez-Flores delivered 2 kilograms of crystal methamphetamine to the same individual and was arrested by DEA agents. At the time of the incident, Hernandez-Astudillo was a passenger in Rodriguez-Flores’s car.
Immediately after the arrest, a search warrant was executed at the residence Hernandez-Astudillo shared with his cousin and co-defendant, Gilberto Astudillo-Carbajal (34, Ocala), during which agents recovered items used in the manufacture and packaging of crystal methamphetamine. From another trailer across the street, where Hernandez-Astudillo had been earlier in the day, agents recovered a suspicious package containing approximately 1 kilogram of an undetermined powdery substance. Subsequent analysis of the substance revealed that it contained fentanyl. The sentencing hearing for Astudillo-Carbajal has not yet been set.
This case was investigated by the Gainesville Resident Office of the Drug Enforcement Administration, assisted by task force officers from the Gainesville Police Department, the Alachua County Sheriff’s Office, the Ocala Police Department, the Levy County Sheriff’s Office, and the Union County Sheriff’s Office. The Marion County Unified Drug Enforcement Strike Team assisted in the execution of the search warrant and the arrests. The case is being prosecuted by Assistant United States Attorney Dale R. Campion.
Non-Indian Man from Albuquerque Sentenced for Assaulting Federally Commissioned Tribal OfficerRead the Press Release
ALBUQUERQUE – Daniel A. Mendoza, 21, a non-Indian man from Albuquerque, N.M., was sentenced today in federal court to 33 months in prison for assaulting a federally commissioned tribal police officer. Mendoza will be on supervised release for two years after completing his prison sentence.
The BIA arrested Mendoza on Nov. 22, 2016, for assaulting a federal officer based on his assault of an officer of the Pueblo of Isleta Tribal Police Department, who was commissioned as a Special Law Enforcement Officer by the BIA’s Office of Justice Services. According to the complaint, Mendoza assaulted the officer by running his vehicle into the officer’s vehicle while attempting to evade arrest. Mendoza committed the offense on Sept. 22, 2016, on the Isleta Pueblo in Bernalillo County, N.M.
Mendoza subsequently was indicted on Dec. 20, 2016, and was charged with assaulting a federal officer with a deadly and dangerous weapon, a vehicle, on Sept. 22, 2016, in Bernalillo County.
On Dec. 13, 2017, Mendoza pled guilty to the indictment and admitted that on Sept. 22, 2016, in order to avoid arrest, he backed his truck into an Isleta Pueblo Police patrol vehicle that was being operated by an Isleta Pueblo Police Sergeant who was commissioned as a Special Law Enforcement Officer by the BIA. Mendoza admitted intentionally driving his truck forward and reversing a second time at a high rate of speed into the Isleta Pueblo Police Sergeant’s patrol vehicle.
This case was investigated by the Pueblo of Isleta Tribal Police Department and the Northern Pueblos Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Newport Man Sentenced to 150 Months for Conspiracy to Distribute Heroin and FentanylRead the Press Release
COVINGTON, Ky. – Frederick D. Lewis, 38, of Newport, Kentucky, was sentenced today to 150 months in federal prison, by United States District Judge David L. Bunning, for conspiracy to distribute heroin and fentanyl.
Lewis pled guilty, in February 2018, and admitted that he led a conspiracy of five or more people responsible for distributing more than 100 grams of heroin and more than 160 grams of fentanyl. Lewis was on federal supervised release, for a 2011 conviction for conspiracy to distribute crack cocaine, when he committed his new offense. The 150-month prison term includes a sentence of 30 months for violation of the terms of his supervised release.
Under federal law, Lewis 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 ten years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Amy Hess, Special Agent in Charge, Federal Bureau of Investigation; and Robert Nader, Chief of the Covington Police Department, jointly made the announcement.
The investigation was conducted by the Covington Police Department and the Federal Bureau of Investigation’s Safe Streets Task Force. The United States was represented by Assistant United States Attorney Tony Bracke.
New York City Man Pleads Guilty to Trafficking Heroin, Fentanyl, Cocaine and CrackRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Ambrose Wan, a/k/a “Ambrose Won,” a/k/a “Bruno,” 33, of New York, New York, pled guilty today in U.S. District Court to conspiracy to distribute heroin, fentanyl, cocaine and cocaine base, commonly known as “crack;” possession with the intent to distribute cocaine, crack and heroin; and possession with intent to distribute fentanyl, heroin and cocaine.
According to court records, between July and September 2017 Wan conspired with others to distribute the drugs in Central Maine. The drugs were obtained from sources in New York and distributed throughout Central Maine by a network of dealers. On September 6 and 28, 2017, police recovered drugs from two hotel rooms in Waterville intended for distribution by Wan and others.
The defendant faces between 10 years and life in prison, a $10,000,000 fine and between eight years and life on supervised release. Wan faces enhanced penalties by virtue of a prior conviction for a felony drug offense. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Waterville Police Department and the U.S. Drug Enforcement Administration, with the assistance from the Maine Drug Enforcement Agency, and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
New Orleans Man Charged with Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that PATRICK SCHEXNAYDER, a/k/a “Pat,” a/k/a “Red,” age 27, of New Orleans, was charged on May 24, 2018 in a one-count Indictment with being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1).
According to the Indictment, PATRICK SCHEXNAYDER was found in possession of a .45 caliber semi-automatic Beretta handgun on February 23, 2018. PATRICK SCHEXNAYDER had previously been convicted in Orleans Parish of a state-law felony.
If convicted, PATRICK SCHEXNAYDER faces a maximum term of imprisonment of ten years, a fine of up to $250,000.00, three years supervised release after imprisonment, and a mandatory $100 special assessment.
U.S. Attorney Evans reiterated that the Indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department. Assistant United States Attorneys Maria M. Carboni and Matthew R. Payne are in charge of the prosecution.
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New Orleans East Resident Indicted in Heroin-Trafficking ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that ARTHUR JOHNSON, age 40, of New Orleans East, has been charged in a seven-count Indictment. The lead charge (Count 1) is a conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 846. If found guilty of this offense, JOHNSON faces a mandatory minimum sentence of ten years imprisonment, a maximum life sentence, a fine of up to $10,000,000, and at least five years of supervised release.
JOHNSON is also charged with five counts (Counts 2-6) of distributing a quantity of heroin, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). If found guilty of any of these offenses, JOHNSON faces a maximum sentence of twenty years in prison, a fine up to $1,000,000, and at least three years of supervised release.
Finally, JOHNSON is charged with one count (Count 7) of possessing with intent to distribute one kilogram or more of heroin, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A). If found guilty of this offense, JOHNSON faces a mandatory minimum sentence of ten years imprisonment, a maximum life sentence, a fine of up to $10,000,000, and at least five years of supervised release.
U.S. Attorney Evans reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the FBI’s New Orleans Gang Task Force in investigating this matter. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
Navajo Man from Breadsprings, N.M., Sentenced to 15 Years for Federal Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Brian Lee, 31, an enrolled member of the Navajo Nation who resides in Breadsprings, N.M., was sentenced today in federal court in Albuquerque, N.M., to 15 years in prison for his conviction on child sexual abuse charges. Lee will be on supervised release for ten years after completing his prison sentence. He also will be required to register as a sex offender.
Lee was arrested on July 13, 2017, on a two-count indictment charging him with sexually abusing a child under the age of 12 on two separate occasions between July 2012 and July 2016, on the Navajo Indian Reservation in McKinley County, N.M.
On Sept. 18, 2017, Lee pled guilty to a two-count felony information charging him with aggravated sexual abuse and sexual abuse. In entering the guilty plea, Lee admitted that between July 2012 and July 2016, he engaged in sexual acts with the victim on two separate and distinct occasions at his home in Breadsprings on the Navajo Indian Reservation.
This case was investigated by the Gallup office of the FBI. Assistant U.S. Attorney Kyle T. Nayback prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Mortgage Loan Officer Sentenced for Role in Sweeping Mortgage Fraud ConspiracyRead the Press Release
BOSTON – A mortgage loan officer was sentenced yesterday in federal court in Boston in connection with a sweeping conspiracy to defraud banks and mortgage companies by engaging in sham “short” sales of residential properties in Merrimack Valley.
Vanessa Ricci, 41, of Methuen, a mortgage loan officer, was sentenced to six months in prison, three years of supervised release and ordered to pay restitution of $963,730. In March 2018, Ricci pleaded guilty to one count of conspiracy to commit bank fraud.
Co-defendants Jasmin Polanco, 37, a real estate closing attorney, previously pleaded guilty to one count of conspiracy to commit bank fraud and is scheduled to be sentenced on June 21, 2018; Greisy Jimenez, 50, pleaded guilty to two counts of bank fraud and one count of conspiracy to commit bank fraud and is scheduled to be sentenced on June 6, 2018; Hyacinth Bellerose, 51, a real estate closing attorney, was sentenced in March 2017 to time served and one year of supervised release to be served in home detention after pleading guilty to conspiracy to commit bank fraud.
The charges arose out of a scheme to defraud various banks via bogus short sales of homes in Haverhill, Lawrence and Methuen in which the purported sellers remained in their homes, with their debt substantially reduced. A short sale is a sale of real estate for less than the value of any existing mortgage debt on the property. Short sales are an alternative to foreclosure that typically occur only with the consent of the mortgage lender. Generally, the lender absorbs a loss on the loan and releases the borrower from the unpaid balance. By their very nature, short sales are intended to be arms-length transactions in which the buyers and sellers are unrelated, and in which the sellers cede their control of the subject properties in exchange for the short-selling bank’s agreement to release them from their unpaid debt.
The conspiracy began in approximately August 2007 and continued through June 2010, a period that included the height of the financial crisis and its aftermath. Home values in Massachusetts and across the nation declined precipitously, and many homeowners found themselves suddenly “underwater” with homes worth less than the mortgage debt they owed. As part of the scheme, Jimenez, Polanco, Ricci, Bellerose and others submitted materially false and misleading documents to numerous banks in an effort to induce them to permit the short-sales, thereby releasing the purported sellers from their unpaid mortgage debts, while simultaneously inducing the purported buyers’ banks to provide financing for the deals. In fact, the purported sellers simply stayed in their homes, with their debt substantially reduced.
The conspirators falsely led banks to believe that the sales were arms-length transactions between unrelated parties; in fact, the buyers and sellers were frequently related, and the sellers retained control of (and frequently continued to live in) the properties after the sale. The conspirators also submitted phony earnings statements in support of loan applications that were submitted to banks in order to obtain new financing for the purported sales. In addition, the defendants submitted phony “HUD-1 Settlement Statements” to banks that did not accurately reflect the disbursement of funds in the transactions. (HUD-1 Settlement Statements are standard forms that are used to document the flow of funds in real estate transactions. They are required for all transactions involving federally related mortgage loans, including all mortgages insured by the Federal Housing Administration.)
United States Attorney Andrew E. Lelling; Christina Scaringi, Special Agent in Charge of the Department of Housing and Urban Development, Office of Inspector General, New York Field Office; and Christy Goldsmith Romero, Special Inspector General of the Troubled Asset Relief Program, made the announcement. Assistant U.S. Attorney Stephen E. Frank, Chief of Lelling’s Economic Crimes Unit, and Assistant U.S. Attorneys Sara Miron Bloom and Victor A. Wild, also of the Economic Crimes Unit, prosecuted the cases.
Mishawaka Man ConvictedRead the Press Release
SOUTH BEND –Carlos Maez, age 40, of Mishawaka, Indiana was convicted of all counts, early evening on Wednesday, before District Court Judge Jon E. DeGuilio, announced U.S. Attorney Kirsch.
The jury convicted Maez on one count of armed bank robbery, one count of using a firearm during a crime of violence and one count of being a felon in possession of a firearm.
According to records in the case, on October 16, 2015, Maez robbed a bank located in South Bend using a firearm while having previous felony convictions.
This case was investigated by the FBI with the assistance of the South Bend Police Department. This case was prosecuted by Assistant United States Attorney Molly E. Donnelly and Frank E. Schaffer.
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