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Tuesday 22 May 2018
Greenbelt Man Pleads Guilty to Wire Fraud and Money LaunderingRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885Greenbelt, Maryland – On May 21, 2018, Aldrin Fon Fomukong, a/k/a “Albanky,” a/k/a “A.L.,” age 24, of Greenbelt, Maryland, pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Andre Watson of Homeland Security Investigations; and Special Agent in Charge Brian Ebert of the United States Secret Service, Washington Field Office.
According to his plea agreement, between February 2016 and in or about July 2017, Fomukong and his co-conspirators gained access to email accounts associated with the victims and sent false wiring instructions, causing the victims’ financial institutions to wire millions of dollars into drop accounts set up by the defendants. Drop accounts were bank accounts opened or controlled by Fomukong and his co-conspirators that were used to receive fraudulently obtained money from victims. Fomukong then disbursed the money received from the victims’ bank accounts into the drop accounts by, among other transactions, using wires to transfer money to other accounts, by initiating account transfers to other accounts at the same bank, by withdrawing sums of money, by obtaining cashier’s checks, and by writing checks to other individuals or entities.
Over the course of the conspiracy, Fomukong and his co-conspirators stole or attempted to steal over $8.7 million from at least 11 victims. The following co-conspirators have also been charged:
Nkeng Amin, a/k/a “Rapone,” a/k/a “Arnold,” age 30, of Beltsville, Maryland; Carlson Cho, a/k/a “Uncle Tiga2,” age 23, of Braintree, Massachusetts; Izou Ere Digifa, a/k/a “Lzuo Digifa,” a/k/a “Mimi VA,” age 22, of Lynchburg, Virginia; Yanick Eyong, age 26, of Bowie, Maryland; and Ishmail Ganda, a/k/a “Banker TD,” age 31, of College Park, Maryland.
Fomukong, Amin, Cho, Digifa, and Eyong remain detained. Ganda is released under the supervision of pretrial services.
Fomukong faces a maximum sentence of 20 years in prison for conspiracy to commit wire fraud, and a maximum sentence of 20 years in prison for conspiracy to commit money laundering. U.S. District Judge Paul W. Grimm has scheduled sentencing for October 3, 2018 at 2:30 p.m. in U.S. District Court in Greenbelt.
United States Attorney Robert K. Hur praised Homeland Security Investigations and the United States Secret Service for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Kelly O’Connell Hayes, who is prosecuting the case.
Grand Blanc Man and Flint Woman Indicted for Involvement in Fraudulent Investment SchemeRead the Press Release
An indictment was unsealed earlier today charging Larry A. Holley, 61, of Grand Blanc and Patricia Enright, a.k.a. Patricia Gray, 57, of Flint, with conspiracy to commit wire and mail fraud, wire fraud, mail fraud, and money laundering, United States Attorney Matthew Schneider announced today.
Joining Schneider in the announcement was Manny Murial, Special Agent in Charge, Internal Revenue Service – Criminal Investigation Division.
According to the indictment, Enright and Holley, who is a pastor at Abundant Life Ministries in Flint, operated Treasure Enterprise, LLC, which fraudulently purported to provide financial planning and asset management services to investors. Holley and Enright solicited many of the victim investors at financial seminars held at churches throughout Michigan and other states.
The indictment alleges that in order to lure the potential investors, many of whom took their money out of legitimate investments–such as individual retirement accounts (IRAs) and 401Ks–Holley and Enright promised high, guaranteed returns, and the safe return of an investor’s entire principal at the end of the investment period. The money, however, was not invested and did not earn the profits to pay the guaranteed interest payments. Instead, Holley and Enright, and others directed by them, simply deposited the victim investor funds into Treasure’s bank accounts and then used the money for their personal benefit, for the benefit of Abundant Life Ministries, to make interest and principal payments to earlier investors, and to pay other Treasure employees.
The two defendants made their initial appearances in federal court in Flint on Monday.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case is being prosecuted by Assistant United States Attorneys Ann Nee and Anthony Vance.
Four Defendants Indicted in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 62-count indictment charging Frank Giacobbe, 43, of East Amherst, NY; Patrick Ogiony, 34, of Buffalo, NY; Kevin Morgan, 42, of Pittsford, NY; and Todd Morgan, 29, of Rochester, NY, with conspiracy to commit wire fraud and bank fraud, and substantive wire fraud and bank fraud charges. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorneys John D. Fabian and Aaron J. Mango, who are handling the case, stated that according to the indictment, between March 2011 and June 2017, the defendants conspired to defraud financial institutions, such as Arbor Commercial Mortgage, LLC and Berkadia Commericial Mortgage, LLC, and government sponsored enterprises, including Federal Home Loan Mortgage Corporation (Freddie Mac), and the Federal National Mortgage Association (Fannie Mae). The indictment alleges that the defendants conspired to engage in a variety of conduct to induce mortgage lenders to issue loans for residential apartment complexes (1) for greater amounts than they would have issued had they known the truth; and (2) that the lenders would not have issued at the time of issuance had they known the truth.
The defendants are accused of:
• Conspiring to provide lending institutions with false rent rolls suggesting that properties had more occupied units, at higher rental rates, and generated more income than they, in fact, did;
• Conspiring to provide false information about other income received at the complexes. On one occasion, when one defendant asked another where storage space income figures came from, another defendant replied, “Magic;”
• Conspiring to provide lenders with fraudulently altered leases; and
• Conspiring to prevent inspectors touring the properties from discovering vacant units by, among other things, turning on radios inside vacant units, placing mats and shoes outside apartment doors, and, on at least one occasion, hiring someone to stage an apartment as lived in and pretend to be a tenant of an inspected unit.
The indictment alleges fraud at seven different properties, not all of which involved all charged defendants, but which resulted in total loans issued of $167,591,000. The properties are Morgan Ellicott Apartments and Amherst Garden, both in Buffalo, NY; Rugby Square in Syracuse, NY; Avon Commons, in Avon, NY; Rochester Village, Southpointe, and Eden Square, all in the Pittsburgh, PA area.
“The defendants are charged with fraudulently obtaining over $167.5 million worth of loans relating to seven residential apartment complexes located here in New York and in Pennsylvania,” noted U.S. Attorney Kennedy. “Most of those loans were in turn sold to Fannie Mae or Freddie Mac, entities which were created by Congress to perform and an important role in our country’s housing finance system. As a result of the fraudulent conduct alleged in this indictment, defendants’ conduct not only unjustly enriched them but threatened to undercut the very foundations upon which our mortgage banking and investment systems are based.”
“We must protect the tens of thousands of investors who own mortgage backed securities,” said Gary Loeffert, Special Agent-in-Charge of the Buffalo Division. “This investigation is focused on stopping people from undermining the residential and commercial financing industry. Fraud for profit aims to misuse the mortgage lending process to steal cash.”
Some of the defendants are scheduled to be arraigned on May 23, 2018, at 2:00 p.m. before U.S Magistrate Judge H. Kenneth Schroeder.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent-in-Charge Mark P. Higgins.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Four Defendants Indicted in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 62-count indictment charging Frank Giacobbe, 43, of East Amherst, NY; Patrick Ogiony, 34, of Buffalo, NY; Kevin Morgan, 42, of Pittsford, NY; and Todd Morgan, 29, of Rochester, NY, with conspiracy to commit wire fraud and bank fraud, and substantive wire fraud and bank fraud charges. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorneys John D. Fabian and Aaron J. Mango, who are handling the case, stated that according to the indictment, between March 2011 and June 2017, the defendants conspired to defraud financial institutions, such as Arbor Commercial Mortgage, LLC and Berkadia Commericial Mortgage, LLC, and government sponsored enterprises, including Federal Home Loan Mortgage Corporation (Freddie Mac), and the Federal National Mortgage Association (Fannie Mae). The indictment alleges that the defendants conspired to engage in a variety of conduct to induce mortgage lenders to issue loans for residential apartment complexes (1) for greater amounts than they would have issued had they known the truth; and (2) that the lenders would not have issued at the time of issuance had they known the truth.
The defendants are accused of:
• Conspiring to provide lending institutions with false rent rolls suggesting that properties had more occupied units, at higher rental rates, and generated more income than they, in fact, did;
• Conspiring to provide false information about other income received at the complexes. On one occasion, when one defendant asked another where storage space income figures came from, another defendant replied, “Magic;”
• Conspiring to provide lenders with fraudulently altered leases; and
• Conspiring to prevent inspectors touring the properties from discovering vacant units by, among other things, turning on radios inside vacant units, placing mats and shoes outside apartment doors, and, on at least one occasion, hiring someone to stage an apartment as lived in and pretend to be a tenant of an inspected unit.
The indictment alleges fraud at seven different properties, not all of which involved all charged defendants, but which resulted in total loans issued of $167,591,000. The properties are Morgan Ellicott Apartments and Amherst Garden, both in Buffalo, NY; Rugby Square in Syracuse, NY; Avon Commons, in Avon, NY; Rochester Village, Southpointe, and Eden Square, all in the Pittsburgh, PA area.“The defendants are charged with fraudulently obtaining over $167.5 million worth of loans relating to seven residential apartment complexes located here in New York and in Pennsylvania,” noted U.S. Attorney Kennedy. “Most of those loans were in turn sold to Fannie Mae or Freddie Mac, entities which were created by Congress to perform and an important role in our country’s housing finance system. As a result of the fraudulent conduct alleged in this indictment, defendants’ conduct not only unjustly enriched them but threatened to undercut the very foundations upon which our mortgage banking and investment systems are based.”
“We must protect the tens of thousands of investors who own mortgage backed securities,” said Gary Loeffert, Special Agent-in-Charge of the Buffalo Division. “This investigation is focused on stopping people from undermining the residential and commercial financing industry. Fraud for profit aims to misuse the mortgage lending process to steal cash.”
Some of the defendants are scheduled to be arraigned on May 23, 2018, at 2:00 p.m. before U.S Magistrate Judge H. Kenneth Schroeder.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent-in-Charge Mark P. Higgins.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Former Valeant Executive and Former Philidor Ceo Convicted for Illegal Kickback SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today the convictions of GARY TANNER, a former executive at Valeant Pharmaceuticals International, Inc. (“Valeant”), and ANDREW DAVENPORT, the former chief executive officer (“CEO”) of Philidor Rx Services LLC (“Philidor”), for engaging in a multimillion-dollar kickback scheme. TANNER and DAVENPORT were convicted on all counts of the Indictment today after a four-week trial before Senior United States District Judge Loretta A. Preska.
U.S. Attorney Geoffrey S. Berman said: “As a unanimous jury has found, Gary Tanner sold his loyalty to Andrew Davenport in exchange for $9.7 million. Tanner was entrusted by his employer to manage Valeant’s relationship with Davenport’s company. Davenport exploited that trust by promising a massive kickback in exchange for betrayal. Unbeknownst to his employer, Tanner became the fox guarding the henhouse. Our commitment to this prosecution shows that corruption of publicly traded companies will be rooted out and met with justice.”
According to the allegations in the charging documents and statements made in court proceedings:
Valeant is a publicly traded pharmaceutical manufacturer headquartered in Canada, with its principal place of business in New Jersey. Philidor was a specialty mail order pharmacy that was formed in or about January 2013 with the assistance of Valeant. During the course of Philidor’s existence, at least 90 percent of the drugs dispensed by Philidor were Valeant-branded drugs.
TANNER was the Valeant executive primarily responsible for managing Valeant’s relationship with Philidor. TANNER was also responsible more broadly for Valeant’s alternative fulfillment (“AF”) program. Through its AF program, Valeant sought to increase doctor prescriptions and patient purchases of Valeant pharmaceuticals instead of generic substitutes or alternatives by helping obtain insurance coverage for those drugs or providing other incentives for prescription and purchase of Valeant drugs. As part of his work at Valeant, TANNER interacted directly with Philidor’s executives, including DAVENPORT, and senior Valeant executives.
Valeant and Philidor began negotiations for Valeant to purchase Philidor, and Valeant ultimately purchased an option to buy Philidor (the “Option”) in exchange for $133 million in payments to Philidor’s owners, and the promise of $100 million in additional milestone payments if Philidor were to meet certain sales targets. Despite the duty of loyalty owed by TANNER to Valeant, during negotiations relating to the Option, TANNER and DAVENPORT secretly made preparations for TANNER to receive a multimillion-dollar kickback out of the money that Valeant was going to pay Philidor’s owners for the Option. Among other things, TANNER and DAVENPORT set up shell company bank accounts in order to launder the kickbacks to TANNER. While these preparations were underway, TANNER secretly advised DAVENPORT on his negotiations with Valeant. TANNER did this in contravention of his duties to Valeant and despite the fact that he was also internally advising Valeant in its negotiations with DAVENPORT about the Option.
In addition to secretly helping DAVENPORT negotiate against Valeant in exchange for the promise of a kickback from DAVENPORT, TANNER took other actions to benefit Philidor and DAVENPORT personally, and against the direction of his supervisors at Valeant. For example, TANNER’s supervisors directed him to identify other pharmacies that Valeant could use to distribute its drugs, in order to minimize the risks of overreliance on Philidor. TANNER deceived his supervisors into believing that he was pursuing their direction in good faith when, in fact, he lied about participating in meetings and doing due diligence on potential competitors to Philidor. In addition, TANNER helped Philidor and DAVENPORT secure favorable payment terms.
In order to keep their scheme hidden from Valeant, TANNER often used a Philidor email account that TANNER maintained in the name of “Brian Wilson” to communicate with DAVENPORT. TANNER also pretended to be Brian Wilson in at least one meeting that he and DAVENPORT participated in on behalf of Philidor.
In December 2014, Valeant acquired the Option. DAVENPORT, through two different entities that he controlled, received approximately $50 million of the $133 million received from Valeant. DAVENPORT transferred $9.7 million of that amount to TANNER through a shell company he controlled, and then to a shell company controlled by TANNER, an entity called Befrielse Consolidated, LLC (“Befrielse”). TANNER concealed his receipt of this money from Valeant, in violation of his fiduciary duties to Valeant, and in violation of Valeant’s conflict of interest policies. Prior to receiving the funds, TANNER had repeatedly certified to Valeant that he was in full compliance with Valeant’s Standards of Business Conduct, which prohibited any conflicts of interest without full disclosure and approval by company management.
After the Option purchase was completed, TANNER continued to use his position at Valeant to advance the interests of Philidor and DAVENPORT, including by resisting Valeant’s efforts to collect payments from Philidor owed to Valeant and pursuing milestone payments under the terms of the Option in which he secretly expected to share. In communications concerning the scheme, using TANNER’s secret Brian Wilson email account, DAVENPORT discussed with TANNER how TANNER would secretly continue to promote DAVENPORT’s interests, even while he purported to represent Valeant’s interests as the Valeant executive responsible for Philidor. Among other things, DAVENPORT stated that he pictured his and TANNER’s “butch and sundance ride into the sunset (or off the cliff as in the flick),” to which TANNER responded, using the secret Brian Wilson account: “[G]ave me a good chuckle when I just saw it. Will have to keep playing the game :).”
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TANNER, 40, of Gilbert, Arizona, and DAVENPORT, 50, of Haverford, Pennsylvania, were convicted of four counts: (1) one count of conspiracy to commit honest services wire fraud, which carries a maximum potential penalty of 20 years in prison; (2) one count of honest services wire fraud, which carries a maximum potential penalty of 20 years in prison; (3) one count of conspiracy to violate the Travel Act, which carries a maximum potential penalty of five years in prison; and (4) one count of conspiracy to commit money laundering, which carries a maximum potential penalty of 20 years in prison.
Mr. Berman praised the work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for its cooperation and assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force and its Complex Frauds and Cyber Crime Unit. Assistant U.S. Attorneys Robert W. Allen, Richard Cooper, and Amanda Kramer are in charge of the prosecution.
Former U.S. Air Force Staff Sergeant Pleads Guilty to Accepting Bribe While Serving in AfghanistanRead the Press Release
A former U.S. Air Force staff sergeant pleaded guilty today to seeking and receiving a bribe from an Afghan contractor while serving in Afghanistan. The sergeant worked at the Humanitarian Aid Yard (HA Yard) at Bagram Airfield in Afghanistan and was involved in the issuance of contracts to replenish supplies at the HA Yard under the Commander’s Emergency Response Program (CERP). The sergeant is the eighth defendant to plead guilty in the investigation of this matter.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney McGregor W. Scott of the Eastern District of California, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office’s Criminal Division, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit (MPFU) and Colonel Kirk B. Stabler, Commander of the Air Force Office of Special Investigations (OSI) made the announcement.
David A. Turcios, 41, currently of San Jose, California, was charged in an indictment filed in July 2017 in the Eastern District of California with two counts of seeking and receiving bribes. The indictment charges him with seeking and receiving $8,500 in bribes from two Afghan contractors who sought contracts for companies with which they were associated. Turcios pleaded guilty to count two of the indictment before U.S. District Court Judge John A. Mendez of the Eastern District of California, in Sacramento. Turcios is scheduled to be sentenced by Judge Mendez on Aug. 28.
Turcios admitted at the time of the guilty plea that, from November 2010 until November 2011, he worked as a U.S. Air Force staff sergeant at the HA Yard. He was the yard supervisor responsible for replenishing supplies such as rice, beans and clothing at the HA Yard and overseeing the loading of trucks that took the supplies off the base. During Turcios’s tenure, approximately nine contracts in which Turcios was involved were awarded to Afghan vendors with a value of over $2 million.
Turcios admitted that as part of his duties at the HA Yard, Turcios worked closely with, among others, an Afghan vendor (the Vendor) who sought to obtain contracts to replenish supplies in the HA Yard for companies with which he was associated. In September 2011, Turcios agreed to allow the Vendor to provide the names of the three companies to be selected on each of the replenishment contracts he oversaw, effectively allowing the Vendor to select the company awarded the respective contract. Because Turcios was nearing the end of his deployment in Afghanistan, he only had time to prepare approximately two contracts with the Vendor and, in October 2011, two contracts in which Turcios was involved were awarded to companies owned by individuals associated with the Vendor.
In late October or early November 2011, just prior to Turcios’s re-deployment to the United States, the Vendor offered Turcios $3,500 in return for Turcios’s actions on behalf of the Vendor as to HA Yard replenishment contracts, Turcios admitted. Turcios thereafter sent several emails urging U.S. Army officials to approve payments to the Vendor in connection with the Vendor’s HA Yard contracts and obtained from the U.S. Army a voucher authorizing payment to the Vendor. In February 2013, the Vendor wire transferred to Turcios’ wife’s bank account $500 of the $3,500 promised.
This matter was investigated by the FBI, SIGAR, DCIS, Army CID-MPFU and Air Force OSI. Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section is prosecuting the case, with assistance from Assistant U.S. Attorney Matthew Yelovich of the Eastern District of California.
Former Santa Rosa Rancheria Director of Education Charged with Theft of Education FundsRead the Press Release
FRESNO, Calif. — A federal grand jury returned an eight-count indictment against Aurora Cuara, 38, of Lemoore, last Thursday, charging her with theft from an Indian tribal organization, U.S. Attorney McGregor W. Scott announced.
According to court documents, Cuara was the director of the Santa Rosa Rancheria Department of Education in Lemoore, which belongs to the Tachi Yokut tribe. The Rancheria operated a higher education program through its Department of Education that allowed Tachi Yokut tribal members to apply to have their higher education tuition and other costs of school attendance, such as child care and books, paid by Santa Rosa Rancheria.
According to the indictment, while overseeing the reimbursement program, Cuara submitted false documentation in order to receive reimbursement for tuition, childcare, mileage and other costs of attending college between 2012 and 2016, even though she was not a student. To support her reimbursement requests, Cuara submitted falsified documents, including fabricated schedules, grade reports, and receipts.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Richards is prosecuting the case.
If convicted, Cuara faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Michigan Health Care Consultant Charged with Tax CrimesRead the Press Release
A grand jury sitting in the Eastern District of Michigan returned an indictment yesterday charging a former healthcare consultant with wire fraud, mail fraud, corruptly endeavoring to obstruct the internal revenue laws, and tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the indictment, from 2011 through August 2014, Sonja Emery falsely represented her professional status, educational background, and work experience to secure and maintain highly paid consulting positions in the health-care industry. Emery allegedly falsely represented to her employers that she was a registered nurse, had worked in health-care management positions, and had various degrees, including a bachelor of science in nursing, master’s degrees in health administration, and a doctor of philosophy degree. The indictment further alleges that, from 2011 to 2014, Emery earned six-figure salaries, failed to file timely tax returns and failed to pay the substantial income tax due and owing on her income.
If convicted, Emery faces a statutory maximum sentence of 20 years in prison for each mail and wire fraud count, five years in prison for each tax evasion count, and three years in prison for corruptly endeavoring to obstruct the Internal Revenue Service. Emery also 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 commended special agents of IRS Criminal Investigation and Treasury Inspector General for Tax Administration, who conducted the investigation, and Trial Attorneys Jeff McLellan and Jack Morgan of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Medical Assistant Pleads Guilty to Distributing OxycodoneRead the Press Release
ALEXANDRIA, Va. – A Woodbridge woman pleaded guilty today to conspiring with others to distribute oxycodone.
According to court documents, Tatiana Bailey, 31, was employed as a medical assistant at INOVA Bariatric Surgery Medical Practice from at least February 2015 to October 2015, where she had access to blank prescriptions. On multiple occasions, Bailey stole blank oxycodone prescriptions and forged some of them using an INOVA doctor’s name and registration number. She then sold blank and forged prescriptions to others who would fill them and use or distribute the oxycodone. Through the course of the conspiracy, Bailey facilitated the fraudulent filling of over 90 prescriptions, totaling approximately 6,520 oxycodone pills.
Bailey pleaded guilty to conspiracy to distribute controlled substances and faces a maximum penalty of 20 years in prison when sentenced on September 28. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Colonel Gary T. Settle, Virginia State Police Superintendent, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Special Assistant U.S. Attorneys Allison Garnett and Troy A. Edwards, Jr. are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-222.
Former Loan Officer Sentenced to 18 Months in Prison for Role in $6 Million Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A Jackson, New Jersey, man was sentenced today to 18 months in prison for his role in a large-scale mortgage fraud scheme that used phony documents and straw buyers to acquire more than $6 million in loans, U.S. Attorney Craig Carpenito announced.
Joseph DiValli previously pleaded guilty before U.S. District Judge Susan D. Wigenton to a superseding information charging him with one count of conspiracy to commit wire fraud, one count of wire fraud and one count of tax evasion. Judge Wigenton imposed the sentence today in Newark federal court.According to documents filed in this case and statements made in court:
From March 2011 through November 2012, DiValli and other conspirators agreed to fraudulently obtain mortgage loans for properties located in North Jersey. After recruiting “straw buyers” to purchase the properties, DiValli and others submitted false and fraudulent loan applications and supporting documents so the straw buyers could qualify for the loans. DiValli and others also used another conspirator, who worked at a bank, to create misleading certifications showing certain bank accounts held more money than they actually had. DiValli and other conspirators also submitted false appraisal reports, backdated deeds and used unlicensed title agents to close transactions and disburse the mortgage proceeds.
As a loan officer for a North Jersey mortgage lender, DiValli facilitated some of these fraudulent transactions, including a $244,855.26 mortgage on a property located on Smith Street in Elizabeth, New Jersey. Overall, the scheme induced lenders to issue more than $6 million in loans, resulting in several defaults and exposing lenders and the Federal Housing Administration (FHA) to more than $2 million in potential losses.
DiValli also admitted using a separate scheme to modify the mortgage on his personal residence. From March 2011 through June 2012, Divalli used false payroll ledgers and earnings statements to deceive a loan officer into believing that his net earnings were lower than his actual income level.
DiValli also admitted receiving income of more than $450,000 in 2012. In order to avoid taxes of $79,000, DiValli failed to file taxes for 2012 and cashed his paychecks at a check-cashing facility to conceal his income.
In addition to the prison term, Judge Wigenton sentenced DiValli to three years of supervised release and ordered to pay restitution of $2,322,045.
U .S. Attorney Carpenito credited law enforcement agents of the FBI Newark Mortgage Fraud Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie; postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca; special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Steven Perez; special agents of the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), under the direction of Special Inspector General Christy Goldsmith Romero; special agents of IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson; and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, for the investigation leading to today’s sentencing.The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman of the National Security Unit, Andrew Kogan of the Cyber Unit, and Senior Litigation Counsel Barbara Ward of the Asset Recovery and Money Laundering Unit.
Defense counsel: Michael A. Koribanics Esq. Clifton, New Jersey
Five Individuals, Including One-Time Fraud Investigator, Arrested in Health Care Fraud Scheme that Allegedly Sought $20 MillionRead the Press Release
LOS ANGELES – Five people linked to two San Fernando Valley clinics were arrested this morning on federal health care fraud charges for allegedly participating in a scheme that submitted fraudulent claims to health insurance companies and used some of the fraud proceeds to provide patients with “free” cosmetic procedures.
A federal grand jury indictment unsealed this morning alleges that the five defendants – including a former fraud investigator at Anthem Blue Cross – engaged in a multi-year conspiracy to commit health care fraud against at least eight health insurance companies.
Those arrested this morning include the owner and operator of the clinics, Roshanak Khadem, also known as “Roxanne” and “Roxy” Khadem, 50, of Sherman Oaks. Khadem owned and operated the two clinics at the center of the alleged scheme – R&R Med Spa, which was located in Valley Village until early 2016, and its successor company, Nu-Me Aesthetic and Anti-Aging Center, which operated in Woodland Hills.
The indictment alleges that Khadem and others induced patients to visit the clinics to receive free cosmetic procedures – including facials, laser hair removal and Botox injections – which were not covered by insurance. The conspirators obtained the insurance information from the patients and fraudulently billed insurance companies for unnecessary medical services or for services that were never provided. Using the fraudulent proceeds from the insurance companies, Khadem and other conspirators calculated a “credit” that patients could use to receive “free” or discounted cosmetic procedures.
During the course of the conspiracy, Khadem and her conspirators submitted at least $20 million in claims to the insurance companies, which paid approximately $8 million on those claims, according to the indictment.
The other four defendants arrested this morning are:
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Dr. Roberto Mariano, 59, of Rancho Cucamonga, a physician who helped operate the clinics;
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Marina Sarkisyan, 49, of Panorama City, who was the office manager at the clinics;
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Lucine Ilangezyan, 38, of North Hills, an employee and insurance biller for the clinics; and
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Gary Jizmejian, 44, of Santa Clarita, a former senior investigator at the Anthem Special Investigations Unit, the anti-fraud unit within Anthem that is responsible for investigating health care fraud committed against the insurance company.
All five defendants are expected to be arraigned on the indictment this afternoon in United States District Court in downtown Los Angeles.
The indictment alleges that, in return for cash payments, Jizmejian assisted Khadem and others by providing them with confidential Anthem information that helped them submit fraudulent bills to Anthem. In September 2012, Jizmejian gave Khadem insurance billing codes – CPT Codes – that Jizmejian knew could be used to submit fraudulent claims to Anthem without Anthem detecting the fraudulent claims. Jizmejian gave Khadem the billing code for an allergy-related lab test and instructed her to submit to Anthem large numbers of bills with this CPT code. Khadem and other members of the conspiracy used this billing code to submit approximately $1 million in fraudulent claims to Anthem, according to the indictment.
The indictment further alleges that Jizmejian worked to prevent the insurance companies from detecting the fraud at the clinics, which included helping Khadem to avoid responding to inquiries from fraud investigators, diverting attention of other Anthem SIU investigators away from the clinics, and closing Anthem investigations into fraud that was being committed at the clinics.
In September 2015, based on confidential information obtained from Anthem, Jizmejian tipped Khadem off about a federal criminal investigation into the clinics, according to the indictment.
The scheme involving the two clinics allegedly defrauded the International Longshore and Warehouse Union, Pacific Maritime Association Benefit Plan, which is the health benefit plan that covers longshore workers in Southern California and their dependents, according to the indictment. Another victim was the Federal Employees Health Benefits Program, which provides health insurance for federal employees.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
All five defendants are charged with one count of conspiracy to commit health care fraud and 13 counts of health care fraud. The indictment contains criminal forfeiture allegations that seek forfeiture of the ill-gotten gains derived from the offense.
Each count charged in the indictment carries a statutory maximum sentence of 10 years in prison.
This case was investigated by the United States Department of Labor, Office of Inspector General; the United States Department of Labor, Employee Benefits Security Administration; and the Office of Personnel Management, Office of Inspector General. The United States Marshals Service is providing assistance relating to the asset forfeiture investigation. Anthem Blue Cross has been cooperating with the investigation involving its former employee.
The case is being prosecuted by Assistant United States Attorney Alexander F. Porter of the Major Frauds Section.
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Felon in Possession of Stolen Firearm Sentenced to Federal PrisonRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. District Judge John W. deGravelles sentenced LAKEITHDRICK HARRIS, a 25-year-old resident of Baton Rouge, to 46 months in federal prison as a result of his conviction for possessing a firearm while a convicted felon and possessing a stolen firearm. The Court further sentenced HARRIS to three years of supervised release following his term of imprisonment.
On April 21, 2017, a Baton Rouge City Police Department Officer conducted a traffic stop of a vehicle operated by HARRIS near Ardenwood Drive in Baton Rouge. After observing an unrestrained infant on the back seat of the vehicle and marijuana inside of the vehicle, the officer conducted a search of the vehicle and recovered a .40 caliber semiautomatic handgun between the driver’s seat and center console of the vehicle. An investigation of the firearm revealed that it had been reported stolen from a private residence in Ascension Parish. HARRIS admitted to purchasing the weapon knowing that it was stolen. Prior to the traffic stop, HARRIS had been convicted of illegal use of a weapon and aggravated assault with a firearm, both felony offenses. On February 8, 2018, HARRIS pled guilty to one count of possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1); and one count of possession of a stolen firearm, in violation of Title 18, United States Code, Section 922(j).
U.S. Attorney Fremin stated, “This case is yet another example of our unrelenting effort to aggressively pursue convicted felons who possess firearms. In striving for a peaceful community, we must and will directly address those who present the greatest dangers to such peace. Armed convicted felons certainly fall into that category. I commend those in my office, the ATF, and the BRPD who worked together on this important matter.”
ATF Resident Agent-in-Charge Antonio L. Pittman stated, “The Bureau of Alcohol, Tobacco, Firearms, and Explosives will continue to work closely with our federal, state, and local partners to provide a safe environment for everyone to live. ATF is proud to work with the United States Attorney’s Office to take a potentially violent offender from our streets and neighborhoods.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Baton Rouge Police Department. It was prosecuted by Assistant United States Attorney Paul L. Pugliese.
Felon from Laguna Pueblo Sentenced to Prison for Unlawfully Possessing FirearmRead the Press Release
ALBUQUERQUE – Michael Shane Riley, 45, an enrolled member and resident of Laguna Pueblo, N.M., was sentenced today in federal court in Albuquerque, N.M., to 37 months in prison for violating the federal firearms laws by unlawfully possessing a firearm. Riley will be on supervised release for three years after completing his prison sentence.
Riley was arrested on Jan. 23, 2017, on an indictment charging him with being a felon in possession of a firearm on May 30, 2016, in Cibola County, N.M. According to the indictment, Riley was prohibited from possessing firearms or ammunition because he previously had been convicted of assault and battery with a dangerous weapon.
On Oct. 27, 2017, Riley pled guilty to the indictment and admitted that on May 30, 2016, he possessed a firearm while on the Pueblo of Laguna in Cibola County. Riley acknowledged that he was prohibited from possessing a firearm because he previously had been convicted of assault and battery with a dangerous weapon in 2002.
This case was investigated by the Laguna/Acoma Agency of the BIA Office of Justice Services, the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Laguna Pueblo Tribal Police Department. Assistant U.S. Attorney Novaline D. Wilson prosecuted the case.
Fairbanks Man Indicted on Federal Gun ChargesRead the Press Release
Fairbanks, Alaska – U.S. Attorney Bryan Schroder announced today that a Fairbanks man has been indicted on federal gun charges in connection with the October 2016 shooting of Fairbanks Police Officer Sergeant Allen Brandt.
Anthony Jenkins-Alexie, 30, of Fairbanks, was named in the indictment charging him with using a firearm during a crime of violence, stealing a firearm, and for being a felon in possession of a firearm. Jenkins-Alexie was arraigned on the federal charges earlier today before U.S. Magistrate Judge Scott Oravec.
According to the indictment, on Oct. 16, 2016, in Fairbanks, Jenkins-Alexie allegedly used and brandished firearms while forcefully stealing Sgt. Brandt’s police vehicle. It is further alleged that Jenkins-Alexie had forcibly taken one of these firearms from Sgt. Brandt, as well as stealing his vehicle. Jenkins-Alexie has a previous felony conviction with the State of Alaska, and was therefore prohibited from possessing firearms.
Currently, Jenkins-Alexie is also under indictment by the State of Alaska on murder charges arising out of the October 2016 shooting.
The Fairbanks Police Department, the North Pole Police Department, the Alaska State Troopers (AST), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Federal Bureau of Investigation (FBI) conducted the investigation leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorney Stephen Cooper.
An indictment 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.
District Court Permanently Enjoins Two Individuals and One Company Responsible for a Florida-Based Mail Fraud SchemeRead the Press Release
A federal court in Florida entered a consent decree of permanent injunction against two individuals and one corporation preventing them from operating an alleged mail-fraud scheme, the Department of Justice, including the U.S. Attorney’s Office for the South District of Florida, announced today.
The permanent injunction signed by United States District Court Judge Jose E. Martinez of the Southern District of Florida arises from a complaint filed in February 2018. That complaint alleged that Art Masters LLC, which does business as Palm Beach Liquidation Gallery, and its principal Eugene Marotta, of Fort Lauderdale, Florida, and William Clutter, who does business as Edge Graphics, of North Las Vegas, Nevada, mailed fraudulent solicitations styled as personalized notifications that the recipient won a large package of cash and prizes worth more than $350,000, but needed to pay a fee of $161.25 to claim the package.
According to the complaint, victims who sent the fee received no prize. Instead, defendants mailed them a list of publicly-advertised sweepstakes and an ink-jet printed reproduction of an artwork. The United States alleged that in the eighteen months the scheme operated, defendants mailed more than 150,000 fraudulent solicitations and victims lost more than one million dollars.
“Individuals who prey upon the most vulnerable members of our society, including the elderly, will be held accountable,” said United States Attorney Benjamin G. Greenberg for the Southern District of Florida. “Fraud schemes will not be tolerated. Our Office will continue to protect consumers through both civil and criminal prosecutions. We remind everyone to be wary and exercise extreme caution when they receive a call or notification of an award offer that is just ‘too good to be true.’ Legitimate operators will not demand payment for prizes.”
“The Department of Justice will pursue those who defraud Americans through false promises and fraudulent schemes,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “Schemes like this often target the elderly and vulnerable, and shutting them down remains a top priority for the Department.”
"The Postal Inspection Service is dedicated to protecting our customers and their hard-earned money from fraudsters,” said Assistant Inspector in Charge Nicole Davis for the US Postal Inspection Service, Criminal Investigations Group. “We strongly urge people to do their research before responding to solicitations like the ones in this case and remember "if it looks too good to be true, it probably is.”
The consent decree permanently enjoins the defendants from mailing solicitations promising delivery of a prize, offering for sale information on sweepstakes or lotteries, or making other deceptive representations. Defendants are also precluded from creating, renting, or selling lists of victims who responded to defendants’ mailings. Finally, the consent decree authorizes the U.S. Postal Inspection Service to return any victim money or personal checks sent to the defendants and detained by the Postal Inspection Service.
This matter was handled by Assistant U.S. Attorney James A. Weinkle of the U.S. Attorney’s Office for the Southern District of Florida and Trial Attorney Jacqueline Blaesi-Freed of the Civil Division’s Consumer Protection Branch, in connection with the United States Postal Inspection Service.
Court documents and information related to this case may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
District Court Permanently Enjoins Two Individuals and One Company Responsible for a Florida-Based Mail Fraud SchemeRead the Press Release
A federal court in Florida entered a consent decree of permanent injunction against two individuals and one corporation preventing them from operating an alleged mail-fraud scheme, the Department of Justice announced today.
The permanent injunction signed by United States District Court Judge Jose E. Martinez of the Southern District of Florida arises from a complaint filed in February 2018. That complaint alleged that Art Masters LLC, which does business as Palm Beach Liquidation Gallery, and its principal Eugene Marotta, of Fort Lauderdale, Florida, and William Clutter, who does business as Edge Graphics, of North Las Vegas, Nevada, mailed fraudulent solicitations styled as personalized notifications that the recipient won a large package of cash and prizes worth more than $350,000, but needed to pay a fee of $161.25 to claim the package.
According to the complaint, victims who sent the fee received no prize. Instead, defendants mailed them a list of publicly-advertised sweepstakes and an ink-jet printed reproduction of an artwork. The United States alleged that in the eighteen months the scheme operated, defendants mailed more than 150,000 fraudulent solicitations and victims lost more than one million dollars.
“The Department of Justice will pursue those who defraud Americans through false promises and fraudulent schemes,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “Schemes like this often target the elderly and vulnerable, and shutting them down remains a top priority for the Department.”
“Individuals who prey upon the most vulnerable members of our society, including the elderly, will be held accountable,” said United States Attorney Benjamin G. Greenberg for the Southern District of Florida. “Fraud schemes will not be tolerated. Our Office will continue to protect consumers through both civil and criminal prosecutions. We remind everyone to be wary and exercise extreme caution when they receive a call or notification of an award offer that is just ‘too good to be true.’ Legitimate operators will not demand payment for prizes.”
"The Postal Inspection Service is dedicated to protecting our customers and their hard-earned money from fraudsters,” said Assistant Inspector in Charge Nicole Davis for the US Postal Inspection Service, Criminal Investigations Group. “We strongly urge people to do their research before responding to solicitations like the ones in this case and remember "if it looks too good to be true, it probably is.”
The consent decree permanently enjoins the defendants from mailing solicitations promising delivery of a prize, offering for sale information on sweepstakes or lotteries, or making other deceptive representations. Defendants are also precluded from creating, renting, or selling lists of victims who responded to defendants’ mailings. Finally, the consent decree authorizes the U.S. Postal Inspection Service to return any victim money or personal checks sent to the defendants and detained by the Postal Inspection Service.
This matter was handled by Trial Attorney Jacqueline Blaesi-Freed of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney James A. Weinkle of the U.S. Attorney’s Office for the Southern District of Florida, in connection with the United States Postal Inspection Service.
Defendant sentenced for attempted child enticement and possession of child pornographyRead the Press Release
ATLANTA – Jeffrey E. Roberts was sentenced to 10 years in federal prison for attempted enticement of a minor and possession of child pornography.
“Through their constant vigilance, our federal and state law enforcement partners have stopped yet another individual who attempted to prey on a minor through the internet,” said U.S. Attorney Byung J. “BJay” Pak. “Those who target children should know they will be exposed and prosecuted.”
“It is fortunate that Roberts’s predatory efforts connected him to an undercover agent and not an innocent child,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The lengthy prison sentence he received reflects the seriousness of his crimes and the threat he posed to the community.”
“This conviction illustrates the great work of law enforcement to investigate and prosecute crimes against children,” said Director Vernon Keenan of the Georgia Bureau of Investigation. “The GBI is committed to working with our local, state, and federal partners in pursuing those who use the internet to prey upon and exploit child victims.”
According to U.S. Attorney Pak, the charges and other information presented in court: On May 4, 2017, Roberts was arrested after he corresponded with an undercover agent regarding a planned sexual encounter with an adolescent female. The investigation began on April 20, 2017 when Roberts responded to an ad posted on Craigslist.
In subsequent communications, Roberts claimed he had experience with sexual encounters with children and made plans to meet the fictitious adolescent. On May 4, 2017, Roberts travelled to meet the minor child for the planned sexual encounter. A laptop computer, which Roberts brought with him to the encounter, was seized at the time of his arrest and later found to contain child pornography.
Jeffrey E. Roberts, 48, of Woodstock, Georgia was sentenced to 10 years in prison to be followed by 10 years of supervised release on May 16, 2018, by U.S. District Judge Mark H. Cohen. Roberts was convicted on these charges on February 14, 2018, after he entered a guilty plea.
This case was investigated by the Federal Bureau of Investigation and Georgia Bureau of Investigation.
Assistant U.S. Attorney Jessica Morris prosecuted the case.
To report information regarding child sexual exploitation, including child pornography or online enticement of children for sex acts, please contact the CybertipLine at www.cybertipline.com or by calling 1-800-843-5678.
This case was brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Davenport Man Sentenced to Prison for Firearm OffenseRead the Press Release
DAVENPORT, Iowa-- On May 21, 2018, United States District Court Judge Stephanie M. Rose sentenced Detavion Marques Levi, age 21, of Davenport, to 37 months in prison for a drug user in possession of a firearm charge, announced United States Attorney Marc Krickbaum. Levi was ordered to serve three years of supervised release following his term of imprisonment and pay $100 to the Crime Victims’ Fund. Additionally, Levi was ordered to forfeit the two firearms involved in the offense.
On May 2, 2017, Davenport Police officers conducted a traffic stop on a vehicle in which Levi was the front passenger. Levi fled, but was eventually apprehended by police after a short foot pursuit. Officers found a Rohm RG10 .22 caliber revolver containing one spent casing and an ISSC M22 handgun with a laser sight, loaded with ten rounds, under the front passenger seat of the vehicle. Officers also recovered a bag belonging to Levi that contained marijuana, a digital scale, 32 .22 caliber rounds, alprazolam and ecstasy. At the time Levi possessed the two firearms, he was a drug user.
This matter was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives and the Davenport Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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.
Columbia Heights Restaurant Owner Pleads Guilty to Visa Fraud and Harboring an Illegal WorkerRead the Press Release
United States Attorney Gregory G. Brooker today announced the guilty plea of PISANU SUKHTIPYAROGE, a/k/a “Pat,” 71, owner of the Royal Orchid Restaurant, to one count of visa fraud and one count of alien harboring. SUKHTIPYAROGE entered his guilty plea earlier today before Judge Wilhelmina M. Wright in United States District Court in St. Paul, Minnesota.
“Pisanu Sukhtipyaroge has pleaded guilty to visa fraud and alien harboring and will now face sentencing,” said Special Agent in Charge Tracy J. Cormier, of HSI St. Paul. “HSI is proud of the work we’ve accomplished with the Anoka County Sheriff’s Office in this case and will continue to leverage our law enforcement partnerships to investigate and prosecute those who seek to exploit the most vulnerable in our communities.”
According to the defendant’s guilty plea and documents filed in court, in July 2015, SUKHTIPYAROGE assisted in the procurement of an F-1 student visa for an individual identified as A.M., a citizen of the Dominican Republic whom the defendant met and befriended. At the time, SUKHTIPYAROGE was very familiar with the F-1 student visa process and knew that an F-1 student visa is a temporary, non-immigrant visa that does not permit employment in the United States. SUKHTIPYAROGE used false statements in preparing the visa application and instructed A.M. as to what he should and should not say during the visa interview.
According to the defendant’s guilty plea and documents filed in court, October 15, 2015, upon arrival in the United States, A.M. lived with the defendant and the defendant’s family in Maplewood and attended Edison High School until May 2016. At some point during this time, A.M. began living and working at the Royal Orchid Restaurant in Columbia Heights. At the restaurant, A.M. was subjected to poor living and working conditions. SUKHTIPYAROGE told A.M. he would be paid $500 per month in cash for his labor; however, A.M. did not receive the promised pay each month, as SUKHTIPYAROGE deducted the costs incurred in bringing A.M. to the United States. A.M. also worked at SUKHTIPYAROGE’S home in Maplewood without pay. SUKHTIPYAROGE admitted to engaging in a sexual relationship with A.M. shortly after he brought A.M. to the United States.
SUKHTIPYAROGE has also been charged in Anoka County with one felony count of third degree criminal sexual conduct and one felony count of labor trafficking.
This case is the result of an investigation conducted by Homeland Security Investigations, the Anoka County Sheriff’s Office, U.S. Department of State Diplomatic Security Service, and U.S. Department of Labor Wage and Hour Division.
The District of Minnesota is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team (ACTeam), through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
Assistant U.S. Attorneys Melinda A. Williams and Laura M. Provinzino are prosecuting the case.
Defendant Information:
PISANU SUKHTIPYAROGE, a/k/a “Pat,” 71
Maplewood, Minn.
Convicted:
- Visa fraud, 1 count
- Alien harboring, 1 count
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Colorado Springs Man Sentenced to 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
DENVER – Michael Lyle Blair, age 64, of Colorado Springs, Colorado, was sentenced late last week by U.S. District Court Judge Christine M. Arguello to serve 120 months (10 years) in federal prison for possession of child pornography, U.S. Attorney Bob Troyer and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Denver Division Special Agent in Charge Steven W. Cagen announced. Following his prison sentence, Blair was ordered to serve 7 years on supervised release and pay restitution totaling $21,000. The defendant, who appeared at the sentencing on bond, was remanded into custody immediately after the hearing.
Blair was indicted by a federal grand jury in Denver on March 16, 2017. He pled guilty before Judge Arguello on November 3, 2017. He was sentenced on May 17, 2018.
The testimony given during the sentencing hearing, as well as court documents filed in this case, demonstrated the defendant collected more than 700,000 images of child pornography and was involved in a decades-long pattern of sexual abuse against minors. Blair came to law enforcement attention when his wife, Sona Blair, was the target of a Homeland Security Investigations (HSI) money-laundering investigation. HSI had reason to believe she was deriving money from the international trafficking of Asian females and their prostitution. A state search warrant was executed at the Blair residence in December, 2013. During the search warrant execution, agents seized an external hard drive. A later forensic review of the drive showed it stored images of child pornography. Two additional state search warrants were obtained for evidence of child pornography. One was for the hard drive and the second was for the residence. The residence was searched again in January 2014 and a second computer was seized. A forensic review of the hard drive revealed that the defendant had downloaded approximately 700,000 images of child pornography including images of prepubescent children being bound or sexually abused. The images were stored in multiple folders with names containing descriptions such as “Hardcore Childporn”. The hard drive also contained hundreds of pages of stories that described the abduction or sexual abuse of children.
"Blair stole more than innocence with the 700,000 images he obtained. For years he left a trail of silent victims," said U.S. Attorney Bob Troyer. "With this sentence, those victims are finally heard. And Blair will pay every day for the next ten years in federal prison."
“Considering the traumatic impacts on victims of child pornography, the resulting federal prison sentences following a conviction are justifiably significant,” said Steve Cagen, special agent in charge of HSI Denver. “The 700,000 child pornography images that Blair collected involved numerous young and innocent traumatized victims. HSI and the U.S. Attorney’s Office worked together to provide justice to these victims, while protecting other potential victims by removing Blair from the community and from cyberspace.”
This case was investigated by Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Alecia Riewerts, the office’s Project Safe Childhood Coordinator. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section of the Department of Justice’s Criminal Division, 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.
Colombian Cocaine Trafficker Pleads Guilty for Role in 490-Kilogram SeizureRead the Press Release
ALEXANDRIA, Va. – A Colombian national pleaded guilty today to his involvement in trafficking 490 kilograms of cocaine bound for the United States from Colombia.
According to court documents, Marco Antonio Robayo Barbosa, 64, was a cocaine trafficker who worked with brokers to coordinate multi-hundred kilogram shipments of cocaine from sources in Colombia to destinations around the world. Robayo Barbosa’s sources of supply included cocaine “laboratories” controlled by members of the Fuerzas Armadas Revolucionarias de Colombia (also known as the “FARC”), a group designated by the United States as a Foreign Terrorist Organization. Robayo Barbosa was personally involved in the distribution of approximately 490 kilograms of cocaine, which the DEA seized in Costa Rica in October 2013, and which Robayo Barbosa intended to be smuggled into the United States.
Robayo Barbosa pleaded guilty to conspiracy to distribute cocaine for the purpose of importation into the United States and faces a mandatory minimum of ten years in prison when sentenced on August 24. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea. Assistant U.S. Attorney Katherine E. Rumbaugh and Trial Attorney Michael Waits of the Narcotic & Dangerous Drug Section are prosecuting the case.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Perdition. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-168.
Camp Verde Man Sentenced to 36 Months in Prison for Assault with a Dangerous WeaponRead the Press Release
PHOENIX – Yesterday, Jose Manuel Lara, Jr., 20, of Camp Verde, Ariz., was sentenced by U.S. District Judge David G. Campbell to 36 months in federal prison, followed by three years of supervised release. The original sentence of 45 months was reduced by nine months to reflect credit for time Lara Jr., served in tribal custody for the same offense. Lara, Jr. had previously pleaded guilty to one count of assault with a dangerous weapon.
On June 25, 2017, Lara, Jr., an enrolled member of the Yavapai-Apache Nation, assaulted the victim, also a member of the Yavapai-Apache Nation, by running him over with a vehicle. The victim suffered serious bodily injury and required multiple surgeries.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Yavapai-Apache Nation Police Department. The prosecution was handled by Christina Covault, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-8203-PCT-DGC
RELEASE NUMBER: 2017-069_Lara
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
California Resident Receives 33 Months in ID Theft CaseRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces today that United States District Judge William H. Steele sentenced Eddie Garcia, 33, a resident of Kern County, California, to 33 months imprisonment in an identification theft case. The judge ordered that Garcia undergo three years of supervised release after finishing his term of imprisonment, receive substance abuse treatment, and pay a $200 mandatory special assessment. Garcia has an extensive criminal history, which includes offenses involving theft, burglary, and narcotics.
On March 31, 2016, K.Q. tried to buy items using a payment card. When the card was denied, K.Q. called The First, a Mississippi-based bank, to determine why the card was not working. The bank said that someone (later determined to be Garcia) had used a card issued to K.Q. at the Cougar Oil gas station in Foley, Alabama and had also bought something from Google. Both charges occurred on March 31, 2016 and were successful. Moreover, the bank told K.Q. that someone had tried (unsuccessfully) to use the card at Wendy’s in Foley and had also tried (unsuccessfully) to use the card at the Magnolia Springs Speedway gas station. K.Q. had never received the card in question in the mail and suspected it was taken from K.Q.’s mailbox and unlawfully activated. The First issued the payment card to K.Q. on March 23. Since the card contained a chip, whomever called to activate the card presumably knew K.Q.’s social security number.
Investigators determined that from around March 2016 through around April 2016, Garcia schemed to defraud K.Q. for his own personal gain. Garcia fraudulently obtained and opened mail not belonging to him, including a letter sent by Capitol One to K.Q. dated March 25, 2016. As part of his scheme, Garcia fraudulently possessed and used K.Q.’s payment card without K.Q.’s knowledge or authorization. For example, around April 1, 2016 Garcia used the card to engage in a financial transaction for around $50.80 at Walmart in Foley, Alabama. Video surveillance obtained from Walmart showed Garcia swiping the stolen card in an attempt to purchase a pre-paid telephone card. The charge was eventually declined.
On October 26, 2017, a federal grand jury for the Southern District of Alabama indicted Garcia on three counts of wire fraud, three counts of aggravated identity theft, and two counts of postal theft. On February 15, 2018, Garcia pleaded guilty before Judge Steele to one count of wire fraud and one count of aggravated identity theft.
The Federal Bureau of Investigation and the Baldwin County Sheriff’s Office investigated the case. Assistant United States Attorney Sinan Kalayoglu prosecuted the case.
Bronx Man Pleads Guilty to Facilitation of Sex Trafficking, Drug Trafficking, Firearms, and Identity Theft ChargesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Ashan M. Benedict, the Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced today that KEVIN PINNOCK, a/k/a “Kev Savage,” a/k/a “Sav,” pled guilty before U.S. District Judge Deborah A. Batts to using the internet to facilitate sex trafficking, possessing crack cocaine with intent to distribute, possessing a firearm in furtherance of drug trafficking, and possessing stolen identification documents.
U.S. Attorney Geoffrey S. Berman said: “Kevin Pinnock used violence and coercion to force women to engage in commercial sex for his own profit. With Kevin Pinnock’s guilty plea today, we seek to deliver justice to victims of sex trafficking and other forms of commercial exploitation and to deter others from engaging in this profoundly harmful criminal conduct. Protecting the public from sex trafficking crimes remains a top priority for us and our law enforcement partners.”
ATF Special Agent-in-Charge Ashan M. Benedict said: “Kevin Pinnock was allegedly involved in a multitude of criminal activities, which included using a firearm to protect his position on the street as a dealer in narcotics. Through the efforts of the Agents and Detectives of the ATF/ NYPD Joint Firearms Task Force (JFTF) working alongside Agents of HSI, Kevin Pinnock will be forced to contemplate his alleged crimes while serving a substantial sentence in prison. I would like to thank all of the law enforcement agencies that worked collaboratively to further this case. I would also like to extend my gratitude to the United States Attorney’s Office for their work in prosecuting the case.”
HSI Special Agent-in-Charge Angel M. Melendez said: “This man admitted his guilt in forcing women to perform sexual acts by threatening violence and abuse. Pinnock was in for making a profit any way he can, with his crimes becoming more brazen; from robbery and ID theft to drug dealing and sex trafficking. The plea today is only the beginning for Pinnock, who will now need to face the consequences of this actions.”
According to the Complaint, Indictment, Superseding Indictment, and other documents filed in the case, as well as statements made during PINNOCK’s plea proceedings:
In 2015 and 2016, PINNOCK posted online advertisements to solicit customers to engage in commercial sex with women PINNOCK forced into prostitution by violence, abuse, and coercion. PINNOCK retained virtually all of the profits from his sex trafficking business.
In at least November 2016, PINNOCK sold crack cocaine and possessed a loaded firearm, which had been stolen, in order to protect his drug dealing business. He also possessed dozens of stolen identification cards – including driver’s licenses and Social Security cards – which he sold to other individuals who were engaged in identity theft and fraud. Many of the identification cards had been obtained through the commission of robberies.
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PINNOCK, 22, of the Bronx, New York, was arrested on January 5, 2017, in the Bronx, and has been in federal custody since. PINNOCK pled guilty to one count of possession with intent to distribute cocaine base, which carries a maximum sentence of 10 years in prison; one count of possession of a firearm in furtherance of drug trafficking, which carries a mandatory minimum sentence of five years in prison to be imposed consecutively to any other sentence and a maximum sentence of life in prison; possession with intent to use or transfer five or more identification documents or authentication features, which carries a maximum sentence of 15 years in prison; aggravated identity theft, which requires a two-year prison term to be imposed consecutively to any other sentence; and use of interstate commerce to promote unlawful activity, which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
PINNOCK is scheduled to be sentenced by Judge Batts on September 23, 2018.
Mr. Berman praised the outstanding investigative work of the ATF and HSI, and thanked the United States Secret Service, the Social Security Administration’s Office of the Inspector General, the New York City Police Department, and the Bronx County District Attorney’s Office for their assistance.
This case is being prosecuted by the Office’s General Crimes Unit. Assistant U.S. Attorney Robert B. Sobelman is in charge of the prosecution.
Biotech Company CEO and Associate Indicted on Securities Fraud ChargesRead the Press Release
BOSTON –The chief executive officer of PixarBio Corp., a Boston-based biotech company, and an associate, were indicted today on securities fraud charges in connection with a scheme to defraud investors and engage in trade manipulation of the company’s shares.
Frank Reynolds, 55, of Newton, and M. Jay Herod, 51, of Cambridge, were indicted on two counts each of securities fraud and manipulative trading. They were previously charged by criminal complaint and arrested on April 24, 2018.
As alleged in the charging document, beginning in approximately August 2013, Reynolds and Herod engaged in a scheme to defraud PixarBio investors by making false and misleading statements about the company - its prospects, its financing, and the background and track record of Reynolds - and by engaging in manipulative trading of its shares.
For example, the indictment alleges that in a December 2015 email and memorandum to potential investors, Reynolds promised investors “a HUGE return on investment (ROI) for any investors in PixarBio’s NeuroRelease.” He told investors: “The value of our portfolio on Wall Street is soaring with excitement around our sales partnership. At only $1,000,000,000 right now, as we prepare to replace morphine in the clinic in late 2017 or early 2018, and we expect our valuation to long-term trend UP.” In reality, the government alleges, PixarBio did not have a market value of $1 billion, or a product to end “thousands of years of morphine and opiate addiction.” Rather, the indictment alleges, the prospective drug, carbamazepine, is not a treatment for opiate addiction at all, but an existing drug for which PixarBio purported to have developed an additional means of delivery, via injection, in a time-release form.
The indictment further alleges that, beginning in or about December 2016, Herod engaged in manipulative trades in PixarBio stock that simulated market interest in the stock and artificially pushed up the trading price. These trades included overlapping orders to buy and sell PixarBio stock at the same price per share (a manipulative technique known as “matched trading”), small purchases to boost the trading price submitted shortly before trading closed at 4:00 p.m. (a technique known as “marking the close”), and orders to buy at a price much higher than the price of the preceding market transaction. Herod allegedly shared the proceeds of his trading with Reynolds and PixarBio itself.
The charges of securities fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Carl W. Hoecker, Inspector General of the U.S. Securities and Exchange Commission Office of Inspector General, made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Economic Crimes Unit is prosecuting the case.
The details contained in the complaint are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Baltimore County Tax Preparer Found Guilty of Filing False Tax Returns and Identity TheftRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On May 22, 2018, a federal jury has convicted Dawn Chapelle Cottman, age 45, of Owings Mills, Maryland of fourteen counts of filing false tax returns, wire fraud and aggravated identity theft. Cottman owned a tax preparation business called 40 AM Tax Service, which she operated from her residence in Owings Mills.
The conviction was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service – Criminal Investigation; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
Evidence presented at trial showed that from January 2009 until March 2013, Cottman electronically filed hundreds of tax returns, then had the tax refunds for those returns directly deposited into her bank account instead of having the refunds sent to the taxpayers. Many of the returns she filed contained materially false information to increase the size of the tax refunds. The false information included fictitious personal income amounts and dependent information that qualified taxpayers for the Earned Income Tax Credit and American Opportunity Education Credit.
Cottman also prepared and filed income tax returns using the personal identifiers of other people without their knowledge and consent in order to fraudulently obtain a tax refund to which she was not entitled. Cottman paid money to various individuals to obtain the identities of other people in whose names she filed the false returns. Cottman had the resulting tax refunds directly deposited into her bank account.
Cottman was also convicted of filing a false personal tax return for 2011. Cottman falsely claimed in her tax return that her tax preparation business had gross receipts of $152,100 when, in fact, more than $1 million of other people’s tax refunds were wired into her bank account. Cottman also falsely claimed to have earned a net income of approximately $17,000 when, in fact, she spent more than $250,000 that year on personal expenses, including trips to Disneyland, Las Vegas, Busch Gardens and Atlantic City.
Cottman faces a maximum sentence of twenty years in prison for wire fraud, five years for filing false claims, three years for filing a false tax return, and a two-year consecutive sentence for aggravated identity theft. U.S. District Judge George L. Russell, III, has scheduled sentencing for August 10, 2018, at 2:00 p.m. in Baltimore.
United States Attorney Hur commended the Internal Revenue Service – Criminal Investigation and the FBI for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Martin Clarke and Sean Delaney, who prosecuted this case.
Attorney General Sessions Meets with Prime Minister of BulgariaRead the Press Release
A Department of Justice official released the following statement at the conclusion of Attorney General Jeff Sessions' meeting with Bulgarian Prime Minister Boyko Borissov:
"On Tuesday, May 22, 2018, Attorney General Jeff Sessions met with Bulgarian Prime Minister Boyko Borissov at the Prime Minister's office at the Council of Ministers in Sofia, Bulgaria. The dialogue focused on the nations' shared commitment to fighting international terrorism, cybersecurity, drug trafficking, and human trafficking. The Attorney General and Prime Minister also discussed other areas of law enforcement cooperation between the two countries, including extradition and mutual legal assistance.”
Atlanta man sentenced for shooting U.S. Marshals Service task force officerRead the Press Release
ATLANTA – Titus Bates has been sentenced to 30 years in prison for assaulting a federal officer, discharging a firearm during a crime of violence, possession with intent to distribute marijuana, and being a felon in possession of a firearm after he shot a member of the U.S. Marshals Services’ Southeast Regional Fugitive Task Force (“SERFTF”) who was attempting to execute search and arrest warrants at his residence.
“Titus Bates has no regard for the law or life. He is a seven-time convicted felon who nearly killed officers attempting to arrest him and search his residence,” said U.S. Attorney Byung J. “BJay” Pak. “We are thankful that the Marshals Service Task Force Officer survived the shooting and we are reminded of the dangers our law enforcement partners encounter every day.”
“We appreciate the efforts of the U.S. Attorney’s Office and the ATF in obtaining this conviction for Bates, who is a career offender with gang affiliations. This event reemphasizes the danger all law enforcement personnel face every day in an effort to keep communities safe from violent criminals. Violence against those who swear an oath to protect the public will not be tolerated” said Chief Inspector Keith Booker with the U.S. Marshals.
“Titus Bates is a very violent individual who displays a total lack of concern for the lives of others. This sentence represents the seriousness of his crime,” said Special Agent in Charge Arthur Peralta. “This sentence also ensures that Bates will not be able to hurt or terrorize anyone else for a very long time.”
According to U.S. Attorney Pak, the charges, and evidence presented at trial: On November 21, 2013, members of the U.S. Marshals Services’ SERFTF attempted to execute arrest and search warrants issued by Fulton County for Bates’s residence in Atlanta. An entry team knocked and announced their presence, but Bates did not answer. As Marshals attempted to make entry into the residence, Bates shot twice through the closed door. One of the shots hit a neighbor’s house, and the other shot struck a U.S. Marshal Task Force Officer in the leg. The law enforcement team at the residence did not return fire. Instead they focused on removing the task force officer from the scene and rushing him to the hospital. They also continued with their mission to apprehend Bates.
Inside the house, Bates tossed a .45 caliber pistol with an extended clip, which he used to shoot the task force officer, down a vent in the living room. ATF agents searched Bates’s home, and found over seven pounds of marijuana, scales, cash, and other drug-related items.
Titus Bates, 43, of Atlanta, Georgia was sentenced to 30 years in prison to be followed by 3 years of supervised release on May 17, 2018. A jury convicted Bates of assaulting a federal officer with a deadly weapon and discharging a firearm during a crime of violence on December 14, 2017. Prior to trial, Bates pleaded guilty to being a felon in possession of a firearm and possession with intent to distribute marijuana on November 9, 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Assistant U.S. Attorneys Phyllis Clerk and Ryan K. Buchanan prosecuted the case.
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.
Monday 21 May 2018
“Winter Hat” Robber Convicted of Seven Bank RobberiesRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – A federal jury has convicted Harrison Lewis, III, age 54, of Catonsville, Maryland of six counts of bank robbery and one count of attempted bank robbery.
The conviction was announced by United States Attorney for the District of Maryland Robert K. Hur; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
The federal jury convicted Lewis of robberies that occurred on December 28, 2016, January 5, 2017, January 6, 2017, January 11, 2017 in Catonsville; a robbery and an attempted robbery that were both committed on January 19, 2017 in Ellicott City; and a robbery that was committed on January 30, 2017 in Phoenix, Maryland. The jury was unable to reach a verdict on charges relating to robberies that took place on December 31, 2016 in Sykesville and January 10, 2017 in Ellicott City.
According to evidence presented at trial, between December 28, 2016 and January 30, 2017, Lewis entered each bank wearing a hat and sunglasses, approached the teller, passed the teller a note that demanded U.S. currency, and then fled the bank after the teller complied and handed over cash. The notes referenced an armed partner outside the bank, and instructed the tellers to not use any security measures such as alarms, dye packs, bait money, or tracking devices. Lewis also demanded the notes back from the tellers.
Moreover, as to the January 19, 2017 attempted robbery, Lewis, entered a bank wearing a disguise, including a hat and sunglasses, passed a note, and then fled the bank after the teller told him that she could not read it. Minutes later, while wearing the same disguise, Lewis walked less than 100 yards down the street to another bank, again passed a note demanding United States currency, and fled after the teller complied and handed over cash.
In 2002, Lewis was convicted of federal bank robbery, and was sentenced to 150 months in prison on that charge. As part of his guilty plea in 2002, Lewis admitted to robbing 19 banks over the course of three months in 2001, using a demand note.
Lewis faces a maximum sentence of 20 years in prison per count.
United States District Judge Marvin J. Garbis has scheduled sentencing for Lewis on August 20, 2018 at 10 a.m.
United States Attorney Hur commended the FBI, the Baltimore County Police Department, the Howard County Police Department, and the Maryland State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Paul Budlow and Paul Riley, who prosecuted this case.
Woman Involved in Meth Conspiracy Sentenced to PrisonRead the Press Release
A woman who hid in locations in Florida, Texas, California and Arizona to avoid prosecution before being found and arrested in California was sentenced May 21, 2018, to nearly 4 years in federal prison.
Angela Suzanne Nichols, 43, from Sioux City, Iowa, received the prison term after a February 15, 2018, guilty plea to conspiracy to distribute methamphetamine.
At the guilty plea, Nichols admitted her involvement in a conspiracy that distributed more than 5 grams of actual (pure) methamphetamine from January through June 2016. Nichols further admitted she aided and abetted Andre Brown in the distribution of more than 40 grams of ice methamphetamine to individuals cooperating with law enforcement in January 2016.
Nichols was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Nichols was sentenced to 45 months’ imprisonment. She must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system. Nichols is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Mikala M. Steenholdt and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-4041. Follow us on Twitter @USAO_NDIA.
Windsor Locks Man Pleads Guilty to Federal Drug Trafficking and Money Laundering OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that OSCAR MONTOYA, 62, of Windsor Locks, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to drug trafficking and money laundering offenses related to the distribution of heroin and various prescription medications.
According to court documents and statements made in court, beginning in approximately 1998, MONTOYA’s wife, Christina Miles, who is a retired nurse, illegally possessed, dispensed and sold prescription medication and other controlled substances. MONTOYA knew of Miles’ illegal activity and, at Miles’ direction, dispensed pills to at least one of Miles’ drug customers. MONTOYA also was aware that family members outside of Connecticut were mailing pills to Miles at their Windsor Locks residence, and that his wife was selling the pills for profit.
On August 4, 2016, members of the North Central Narcotics Task Force and the DEA conducted a court-authorized search of Miles and MONTOYA’s residence at 350 North Street in Windsor Locks and seized a large quantity of various prescription medications, approximately two pounds of marijuana, $10,093 in cash and more than $13,000 in gift cards. Miles and MONTOYA were arrested on state charges after the search.
The investigation revealed that, through this drug trafficking conspiracy, Miles and MONTOYA amassed more than $700,000 in a number of individual and jointly held bank accounts. The investigation also revealed that, in April 2017, Miles and MONTOYA used $17,359 of drug proceeds to purchase 11 U.S. Postal Service money orders and a bank cashier’s check payable to a New Jersey-based moving company for a planned move from Connecticut to New Mexico.
Miles and MONTOYA were arrested on federal charges on November 16, 2017. On February 2, 2018, another court-authorized search of their North Street residence revealed additional drug evidence and $41,904 in cash.
MONTOYA pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin, oxymorphone, hydrocodone and alprazolam, an offense that carries a maximum term of imprisonment of 20 years, and one count of engaging and attempting to engage in a monetary transaction affecting interstate commerce, involving criminally derived property of a value greater than $10,000, an offense that carries a maximum term of imprisonment of 10 years.
In pleading guilty, MONTOYA agreed to forfeit his interest in the Windsor Locks residence and $767,056.74 seized from the residence and multiple bank accounts.
Judge Meyer scheduled sentencing for September 4, 2018. MONTOYA has been detained since his federal arrest.
Miles pleaded guilty to the same charges on May 15, 2018, and is detained while awaiting sentencing. She also has agreed to forfeit her interest in the Windsor Locks residence and the seized money.
This matter is being investigated by the Drug Enforcement Administration’s Tactical Diversion Squad and the U.S. Marshals Service with the valuable assistance of the North Central Narcotics Task Force and the Windsor Locks, Enfield, Vernon, East Windsor, Manchester and Suffield Police Departments. The case is being prosecuted by Assistant U.S. Attorneys David X. Sullivan and Patrick F. Caruso.
Wernersville Man Convicted of Bank Robberies in York, Lebanon, and Berks CountiesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Derek Pelker, age 28, of Wernersville, Pennsylvania, was convicted on May 18, 2018, by a jury on four counts of armed bank robbery, four counts of conspiracy to commit armed bank robbery, two counts of brandishing a firearm in relation to a crime of violence; and, two counts of possession of a firearm by a felon. Pelker represented himself during the five-day trial held before United States District Court Judge Yvette Kane.
According to U.S. Attorney David J. Freed, the jury returned a verdict of guilty after approximately two-days of deliberations and convicted Pelker of robbing the Susquehanna Bank in East Prospect, Pennsylvania on April 24, 2015; the BB&T Bank in Valley View, Pennsylvania on November 17, 2015; the Gratz Bank in Valley View, Pennsylvania on January 14, 2016; and, the M&T Bank in Lebanon, Pennsylvania on April 5, 2016.
Pelker’s co-defendants pled guilty in relation to these robberies and are awaiting sentencing:
- Andrew Ishman, age 31, Wrightsville, pled guilty to the East Prospect bank robbery on October 3, 2016;
- Ryan Miller, a/k/a “Otis,” age 25, Robinson Township, pled guilty to the East Prospect robbery and a separate bank robbery on December 6, 2016;
- Keith Pelker, age 28, Wernersville, pled guilty to the Lebanon bank robbery on October 3, 2016;
- Shannon Gadzouris, age 24, Shillington, pled guilty to the Lebanon bank robbery on October 3, 2016;
- Ryan Martin, age 27, of Reading pled guilty to the two Valley View bank robberies on December 1, 2017; and
- Kelsie Bair, age 28, and Lindsey School, age 27, both of Lebanon, pled guilty to accessory after the fact after they disposed of the weapon used in the Lebanon bank robbery off a pier in Ocean City, New Jersey. The weapon was ultimately recovered by the FBI scuba diving team.
One co-defendant was sentenced:
- William Papoutsis, Pelker’s uncle, age 35, of Reading, pled guilty to obstruction of justice in relation to these robberies and was sentenced to six months’ imprisonment;
The investigation was conducted by the Federal Bureau of Investigation Capital City Violent Crimes Task Force, the Pennsylvania State Police, the South Lebanon Township Police Department, the U.S. Marshals Fugitive Task Force, and the Lebanon and York County District Attorney’s Offices. The Capital City Violent Crimes Task Force consists of representatives from the FBI’s Harrisburg Field Office and the Harrisburg Police Department. Assistant U.S. Attorneys Scott R. Ford and Chelsea Schinnour prosecuted 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.
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 offenses is life imprisonment, a term of supervised release following imprisonment, and a $1,250,000 fine. 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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Waterloo Man Sentenced to Federal Prison after Attempting to Shoot a Waterloo Police OfficerRead the Press Release
A man who possessed a firearm as a felon and fired a shot at a Waterloo police officer was sentenced today to ten years in federal prison.
Miquelle Miller, age 23, from Waterloo, Iowa, received the prison term after an October 19, 2017 guilty plea to possessing a firearm and ammunition as a felon.
Evidence at the sentencing showed that on May 21, 2017, Miller and his associates discharged a firearm within the city limits of Waterloo. Police received a 911 call regarding the shots and several officers responded to investigate. One officer located Miller walking down the 800 block of West Parker. The officer turned his vehicle around in order to ask Miller if he had seen or heard anything. As he was doing so, Miller took off running. The officer drove up to Miller and began exiting his vehicle when Miller turned, raised his arm, and fired one shot towards the officer. Miller ran again and threw the gun in a nearby backyard. Miller was arrested later that evening and police recovered the gun.
Miller was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Miller was sentenced to 120 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
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.
Miller is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Waterloo Police Department and a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-2060.
Follow us on Twitter @USAO_NDIA.
Washington, D.C. woman sentenced for her role in a drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Britney Joyce Robinson, of Washington, D.C., was sentenced today to 41 months incarceration for maintaining a drug house, United States Attorney Bill Powell announced.
Robinson, age 28, pled guilty to one count of “Maintaining a Drug Involved Premises” in September 2017. Robinson admitted to operating a house in Morgantown, West Virginia, to distribute cocaine and oxycodone from the spring of 2016 to March of 2017.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Warwick Man Detained on Charges of Producing, Possessing Child PornographyRead the Press Release
PROVIDENCE, RI – A Warwick man charged by way of a federal criminal complaint with producing and possessing child pornography has been ordered detained in federal custody.
Thomas Goodman, 45, was ordered detained by U.S. District Court Magistrate Judge Lincoln D. Almond at his initial appearance in U.S. District Court on charges of enticing a minor to engage in illicit sexual conduct for the purpose of producing child pornography and possession of child pornography.
According to court documents, it is alleged that Goodman’s personal phone was confiscated by his employment supervisor at Electric Boat, as he was using his phone on Electric Boat property against company/government policy. A security officer at Electric Boat conducted a search of the phone and allegedly discovered a large quantity of child pornography. The security officer contacted North Kingstown Police and turned the phone over to a North Kingstown police detective.
According to court documents, it is alleged that while securing the phone the North Kingstown police detective noticed an application that was open and displaying images of child pornography. Bases on a subsequent investigation by members of the Rhode Island State Police Internet Crimes Against Children Task Force, which included statements allegedly made to investigators by the defendant, the execution of a search warrant at his residence, and interviews of others, investigators determined that beginning in May 2011, until as recently as April 2017, Goodman allegedly molested three prepubescent children known to him. It is alleged that some of the illicit encounters were digitally recorded.
The filing of a federal criminal complaint in this matter and the initial appearance of Goodman in U.S. District Court in Providence are announced by United States Attorney Stephen G. Dambruch, North Kingstown Police Chief Patrick Flanagan, Rhode Island State Police Superintendent Colonel Ann C. Assumpico and Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
A criminal complaint is merely an allegation 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.
Production of child pornography is punishable by statutory penalties of a mandatory minimum of 15 years up to 30 years imprisonment, mandatory special assessments of $5,100 and a fine of up to $250,000. Possession of child pornography is punishable by up to 20 years imprisonment, mandatory special assessments of $5,100 and a fine of up to $250,000.
United States Attorney Stephen G. Dambruch acknowledges and thanks Homeland Security Investigations for their assistance in preparing this matter for prosecution.
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Vista Man Sentenced to more than 17 years in Prison for Child Pornography OffensesRead the Press Release
Assistant U. S. Attorneys Janet Cabral (619) 546-8715 or Amanda Griffith (619)546-8970
NEWS RELEASE SUMMARY – May 21, 2018
SAN DIEGO – William Francis Walsh IV, a former Marine who worked at a fire station on Camp Pendleton, was sentenced today to 210 months in federal custody for distribution and possession of images of minors engaged in sexually explicit conduct.
Walsh, 55, was arrested in May of 2017 and charged with two counts of distribution and one count of possession of images of minors engaged in sexually explicit conduct based upon his use of a peer-to-peer file-sharing program to distribute and download the images.
Walsh pleaded not guilty to the charges, and evidence was presented at a four-day federal jury trial in February of 2018. The jury heard testimony from law enforcement officers from the Escondido Police Department regarding the nature of the online investigation, the items seized at Walsh’s house pursuant to a search warrant, and the computer forensic evidence. Evidence at trial showed Walsh had downloaded hundreds of files with names indicative of child pornography through use of the peer-to-peer file sharing software. Following deliberations, the jury found him guilty of all charges.
At sentencing, Walsh declined to make a statement, and his counsel noted he continues to dispute the charges. U.S. District Judge Anthony J. Battaglia noted the long-term suffering of victims depicted in child pornography. In comparing Walsh to the range of offenders sentenced for similar offenses, the judge said Walsh’s conduct was “on the extreme end of the cases I have seen.”
“Today a man who committed terrible crimes against children was sentenced to many years in prison,” said U.S. Attorney Adam Braverman. “These horrible experiences will echo in the hearts and minds of young victims for a lifetime, and I am deeply distressed and deeply committed to pursuing cases that will protect our vulnerable youth from people like Walsh.”
“Today’s sentence confirms that this predator can no longer victimize innocent children because he is off the streets and he is offline,” said FBI Special Agent in Charge John Brown. “This investigation showcases the success of collaborative federal and local investigations working toward a common goal.”
DEFENDANT Criminal Case No. 17cr1269-AJB
William Francis Walsh IV Age: 55 Vista, CA
SUMMARY OF CHARGE
- Counts 1 and 2 - Title 18, United States Code, Section 2252(a)(2), Distribution of Images of Minors Engaged in Sexually Explicit Conduct;
- Count 3 – Title 18, United States Code, Section 2252(a)(4)(B), Possession of Images of Minors Engaged in Sexually Explicit Conduct
Maximum penalties:
- Counts 1 and 2 – 20 years in prison, with a mandatory 5 years in prison
- Count 3 – 20 years in prison
- As to all Counts, $250,000 fine
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Escondido Police Department
Virginia man sentenced for bank fraud, ordered to pay more than $26,000Read the Press Release
MARTINSBURG, WEST VIRGINIA – Ajarhi Roberts, of Stephens City, Virginia, was sentenced today to 24 months incarceration for bank fraud, United States Attorney Bill Powell announced.
Roberts, also known as Wayne Roberts, age 25, pled guilty to one count of “Bank Fraud” in February 2018. Roberts admitted to using another’s identifying information to commit bank fraud. The crime occurred in March and June of 2016 in Berkeley County, West Virginia.
Roberts was also ordered to pay $26,182.19 in restitution.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Federal Bureau of Investigation investigated.
Chief U.S. District Judge Gina M. Groh presided.
United States Files Complaint against Food Distributors Alleging Unsanitary Conditions at Staten Island FacilityRead the Press Release
The United States has filed a civil complaint in federal court in Brooklyn seeking to permanently enjoin two companies that own and operate a Staten Island facility from manufacturing and distributing adulterated food, the Department of Justice announced today.
According to the complaint filed at the request of the U.S. Food and Drug Administration (FDA), the United States alleges that Euroline Foods, LLC, and Royal Seafood Baza, Inc., violated the Federal Food, Drug and Cosmetic Act (FDCA) by processing and distributing ready-to-eat fish and fishery products, vegetable salads, and cheese products in a facility with chronic insanitary conditions. Inspectors from the FDA found Listeria monocytogenes (L. mono) at the companies’ facility, and that the defendants failed to put in place adequate measures to reduce the risk of health hazards such as L. mono, Clostridium botulinum, and scombrotoxin. The complaint also named as defendants the companies’ owner/operators Eduard Shnayder, Syoma Shnayder and Albert Niyazov, and operator Oleg Polischouk.“Food processors and distributors must identify and eliminate food safety hazards and develop meaningful plans for preventing such hazards in order to protect consumers,” stated United States Attorney Donoghue. “Those who fail to do so must come into compliance or be shut down. We have, and will continue, to use all means at our disposal to protect the public from the dangers of harmful pathogenic bacteria, including bacteria that cause listeriosis and other serious illnesses.”
“L. mono presents a significant danger to public health and can prove fatal to vulnerable individuals,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The food consumers purchase must be safe to eat, and we will continue to work with FDA to take action against companies that refuse to improve dangerously substandard practices.”
According to the complaint, the defendants failed to adequately implement effective sanitation controls that complied with current Good Manufacturing Practices (cGMP) requirements. In addition, the complaint alleges that the defendants failed to comply with seafood Hazard Analysis and Critical Control Point (HACCP) regulations that are designed to mitigate food safety hazards associated with the processing of fish and fishery products.
Three FDA inspections of the defendants’ facility in March 2015, February to March 2016, and November to December 2016, as well as a follow-up investigation in November 2017, all uncovered cGMP and HACCP violations. The FDA issued a Warning Letter to Royal Seafood in 2015, and FDA inspections in 2016 detected listeria contamination in several areas of the facility.
The complaint seeks an order by the Court to permanently enjoin the defendants from violating the FDCA and to prevent them from manufacturing or distributing food unless they comply with specific remedial measures including developing and executing an effective sanitation program.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
This matter is being handled by Assistant U.S. Attorney Gail A. Matthews of the United States Attorney’s Office for the Eastern District of New York, Trial Attorney James T. Nelson of the Civil Division’s Consumer Protection Branch, with the assistance of Associate General Counsel for Enforcement Jennifer C. Argabright of the FDA’s Office of the Chief Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.
United States Files Complaint Against New York Food Distributors Alleging Insanitary Conditions at Staten Island FacilityRead the Press Release
The United States filed a complaint seeking to permanently enjoin two companies that own and operate a Staten Island facility from manufacturing and distributing adulterated food, the Department of Justice announced today.
In a complaint filed today, at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that Euroline Foods, LLC, and Royal Seafood Baza, Inc., violated the Federal Food, Drug and Cosmetic Act (FDCA) by processing and distributing ready-to-eat fish and fishery products, vegetable salads, and cheese products in a facility with chronic insanitary conditions. The complaint alleges that FDA inspections found Listeria monocytogenes (L. mono) at the companies’ facility, and that the defendants failed to put in place adequate measures to reduce the risk of health hazards such as L. mono, Clostridium botulinum, and scombrotoxin. The complaint, filed in U.S. District Court for the Eastern District of New York, also named as defendants the company’s owner/operators Eduard Shnayder, Syoma Shnayder and Albert Niyazov, and operator Oleg Polischouk.
“L. mono presents a significant danger to public health and can prove fatal to vulnerable individuals,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The food consumers purchase must be safe to eat, and we will continue to work with FDA to take action against companies that refuse to improve dangerously substandard practices.”
According to the complaint, the defendants failed to adequately implement effective sanitation controls that complied with current Good Manufacturing Practices (cGMP) requirements. In addition, the complaint alleges that the defendants failed to comply with seafood Hazard Analysis and Critical Control Point (HACCP) regulations, which are designed to mitigate food safety hazards associated with the processing of fish and fishery products.
Three FDA inspections of the defendants’ facility in March 2015, February to March 2016, and November to December 2016, as well as a follow-up investigation in November 2017, all uncovered cGMP and HACCP violations. The FDA issued a Warning Letter to Royal Seafood in 2015, and FDA inspections in 2016 detected listeria contamination in several areas of the facility.
“Food processors and distributors must identify and eliminate food safety hazards and develop meaningful plans for preventing such hazards in order to protect consumers,” stated United States Attorney Richard P. Donoghue for the Eastern District of New York. “Those who fail to do so must come into compliance or be shut down. We have, and will continue, to use all means at our disposal to protect the public from the dangers of harmful pathogenic bacteria, including bacteria that cause listeriosis and other serious illnesses.”
The complaint seeks an order by the court to permanently enjoin the defendants from violating the FDCA and to prevent them from manufacturing or distributing food unless they comply with specific remedial measures including developing and executing an effective sanitation program.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
This matter is being handled by Trial Attorney James T. Nelson of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Gail A. Matthews of the U.S. Attorney’s Office for the Eastern District of New York, with the assistance of Associate General Counsel for Enforcement Jennifer C. Argabright of the FDA’s Office of the Chief Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.
Undocumented Alien Gets 30 Years in Prison for Trafficking MethRead the Press Release
HOUSTON – A 52-year-old Mexican citizen who illegally resided in Houston was ordered to federal prison for 30 years for his conviction of trafficking a kilogram of methamphetamine, announced U.S. Attorney Ryan K. Patrick. Arturo Hernandez-Villegas pleaded guilty Aug. 15, 2016.
Today, Senior U.S. District Judge David Hittner sentenced Hernandez-Villegas to serve 360 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his sentence.
At the time of his plea, Hernandez-Villegas admitted to playing a key role in attempting to deliver methamphetamine in the Houston area, including a delivery of approximately one kilogram of methamphetamine on June 12, 2014.
This delivery was part of an investigation that began in early 2014 which identified Hernandez-Villegas and his brother Lorenzo Hernandez-Villegas as leaders of a drug trafficking organization that primarily trafficked large quantities of methamphetamine and cocaine.
On June 6, 2014, a confidential source (CS) called Arturo Hernandez-Villegas, during which time Arturo Hernandez-Villegas agreed to sell a kilogram of methamphetamine for $10,500. Approximately a week later, they met at a restaurant to complete the transaction. Shortly after their arrival, Arturo Hernandez-Villegas called his brother who arrived with the methamphetamine. The CS provided the money to Lorenzo Hernandez-Villegas, who, in turn provided the methamphetamine.
Authorities took control of the drugs and sent it for further chemical analysis, which demonstrated it had a net weight of 943 grams and a purity of 98.4%. The drugs had been imported from Mexico.
The evidence in the case also revealed Arturo Hernandez-Villegas was involved in other drug trafficking trafficking transactions totaling approximately nine kilograms of methamphetamine and 10 kilograms of cocaine for which he was held accountable at the hearing today.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration, Houston Police Department and Harris County Sheriff’s Office conducted this Organized Crime Drug Enforcement Task Force investigation. Assistant U.S. Attorney Arthur R. Jones is prosecuting the case.
Two Men Indicted in Federal Court with Armed Robbery of Wauwatosa PharmacyRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that two people were indicted for the armed robbery of the Swan Serv-U Pharmacy in Wauwatosa, Wisconsin. Elix Powell (age: 19 ) of Indianapolis, Indiana and Antonio Jamerson (age: 19) Chicago, Illinois were charged with one count of interference with commerce by robbery pursuant to the Hobbs Act, and one count of brandishing a firearm in furtherance of a crime of violence.
The indictment alleges that on December 28, 2016, the defendants, armed with a firearm, robbed the Swan Serv-U Pharmacy, located at 9130 W. North Avenue, Wauwatosa, Wisconsin. If convicted, each defendant faces up to 20 years in prison on the armed robbery count and a minimum mandatory sentence of 7 years and up to life in prison on the charge of use of a firearm during a robbery.
This matter is being investigated by the FBI’s Milwaukee Area Violent Crimes Task Force and the Wauwatosa Police Department. The case is being prosecuted by Assistant United States Attorney Laura S. Kwaterski.
This case is being investigated and prosecuted under the Project Safe Neighborhoods initiative. Project Safe Neighborhoods is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The Project Safe Neighborhoods’ strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods.
The Hobbs Act, passed by Congress in 1946, provides federal jurisdiction for cases involving violent criminals who commit armed robbery of businesses involved in interstate commerce. The U.S. Attorney’s Office and the District Attorney’s Office collaborate together to ensure that violent offenders are effectively prosecuted, making our communities safer for all.
The public is cautioned that an indictment is merely a charge and the defendant is presumed innocent until and unless proven guilty.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Two Houston Residents Sentenced in Identity Theft SchemeRead the Press Release
HOUSTON – Two Houston individuals have been ordered to federal prison following their convictions of conspiracy to commit access device fraud, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Steven Grell of the U.S. Department of Labor - Office of Inspector General (DOL-OIG) and Special Agent in Charge Rick Goss of IRS-Criminal Investigation (CI). Trenecia Moore, 34, and Michael Muniz, 28, pleaded guilty Oct. 24, 2017, and Jan. 8, 2018, respectively.
Today, U.S. District Judge Nancy F. Atlas sentenced Moore to 23 months in prison, while Muniz was sentenced to 12 months and one day. Moore and Muniz will also serve three years of supervised release and pay restitution, jointly and severely, in the amounts of $716,054 and $361,597, respectively.
The pair were indicted in June 2017. Moore filed false tax claims and unemployment insurance claims with identifying information of others. She then loaded the funds from those false claims onto debit cards and had them delivered to false addresses. Muniz assisted her in retrieving the cards and withdrawing the funds.
“Moore and Muniz defrauded the State of Texas Unemployment Insurance (UI) Trust Fund and the IRS by conspiring with others to steal the personally identifiable information of unwitting individuals in order to file fraudulent UI claims and federal tax returns,” said Grell. “We will continue to work with our federal and state law enforcement partners to safeguard the UI system from those who exploit these benefit programs.”
“The sentencing of Moore and Muniz brings justice and hopefully some closure for the victims of this stolen identity fraud scheme,” said Goss. “IRS-CI special agents are dedicated to stopping identity thieves like these and will continue to work diligently with our law enforcement partners to put an end to these schemes.”
Moore and Muniz were permitted to remain on bond and surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
DOL-OIG, IRS-CI and Texas Workforce Commission conducted the investigation with the assistance of the FBI. Former Assistant U.S. Attorney (AUSA) Andrew Leuchtmann and AUSA Carolyn Ferko prosecuted the case.
Three Richland County Residents Indicted on Methamphetamine Related ChargesRead the Press Release
Three Richland County, Illinois residents have been charged with methamphetamine related offenses in an indictment returned by a federal grand jury, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today.
Justin R. Mason, age 35, Harvey L. Ireland, age 34, and Brianna N. Bare, age 25, all of Olney, Illinois, were charged on May 8, 2018, in a three-count superseding indictment. Count 1 charges that from August 2017, until on or about March 7, 2018, in Richland County, and elsewhere, Mason, Ireland, and Bare conspired to knowingly and intentionally distribute methamphetamine. It is further alleged that the total amount of methamphetamine involved in the conspiracy was fifty (50) grams or more of methamphetamine (Ice), or five hundred (500) grams or more of a mixture and substance containing methamphetamine.
Count 2 charges that on February 3, 2018, in Richland County, Bare knowingly and intentionally distributed a mixture or substance containing methamphetamine. Count 3 charges that on February 17, 2018, in Richland County, Bare knowingly and intentionally distributed a mixture or substance containing methamphetamine.
With respect to Count 1, Mason, Ireland, and Bare each face 10 years to life imprisonment, up to a $10,000,000 fine, and supervised release of not less than five years. For Counts 2 and 3, Bare faces up to 20 years imprisonment, a maximum fine of $1,000,000, and at least three years of supervised release.
Ireland and Bare both made their initial appearance and were arraigned in federal court on May 14, 2018. Mason and Ireland were ordered detained in federal custody pending trial, which is presently scheduled to begin on July 23, 2018, at the federal courthouse in Benton, Illinois.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Richland County Sheriff’s Office.
Three Indicted in Bath Salt ConspiracyRead the Press Release
Three people have been indicted on charges related to Alpha-Pyrrolidinopentiophenone (Alpha-PVP), also known as "bath salts," Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today.
Toby L. Depoister, 32, of Edgewood, Illinois, Crystal L. Behrens, 33, of Alma, Illinois, and Brandon L. Hewkin, 28, of Farina, Illinois, were charged in a one-count superseding indictment returned by a federal grand jury on May 8, 2018. The indictment charges that from 2015, until on or about December 2017, in Clay County and Marion County, and elsewhere, Depoister, Behrens, and Hewkin conspired with Dennis R. Thacker, Jr., 49, of Alma, Illinois, and others known and unknown, to distribute, and possess with intent to distribute, Alpha-PVP, a Schedule I controlled substance, in violation of federal law.
All three defendants were arraigned in federal court on May 11, 2018. If convicted, they each face up to 20 years imprisonment, up to a $1,000,000 fine, supervised release of at least three years, and a $100 special assessment. Trial is currently scheduled to begin on July 9, 2018, and will be held at the federal courthouse in Benton, Illinois.
The investigation in this case was conducted by the Flora Police Department, the Clay County Sheriff’s Office, the Southeastern Illinois Drug Task Force, and the Illinois State Police.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
Teachers’ Assistant Pleads Guilty to Sexually Abusing StudentRead the Press Release
WASHINGTON – Diore Anthony Paire, 34, a former teachers’ assistant at a public charter high school in Southeast Washington, pled guilty today to second-degree sexual abuse of a minor, involving a student, announced U.S. Attorney Jessie K. Liu.
Paire, of Washington, D.C., pled guilty in the Superior Court of the District of Columbia. The Honorable Ronna L. Beck scheduled sentencing for Aug. 3, 2018.
According to the government’s evidence, in early 2017, Paire was a teacher’s assistant at the Thurgood Marshall Academy, located in the 2400 block of Martin Luther King, Jr. Avenue SE. The victim was a 17-year old student who attended that school.
In October, 2017, Paire and the victim exchanged phone numbers and began communicating with one another. On two different occasions that month, Paire sent the victim text messages, asking her to rendezvous with him in order to have sex. Both times, the victim declined his advances. One day after school that month, however, the victim was in the Academy’s computer lab. Paire came to the lab and asked the victim to engage in a sex act with him. She did, briefly, but stopped out of fear of getting caught. Later, however, she reported the relationship to authorities at the school and they, in turn, notified the Metropolitan Police Department (MPD).
When the police interviewed Paire about the allegations, he initially denied that he had done anything wrong. As the interview continued, however, he admitted that he had engaged the victim in a sexual act. Paire was arrested on Feb. 28, 2018.
In announcing the plea, U.S. Attorney Liu commended members of the Youth and Family Services Division of the Metropolitan Police Department, who investigated the case. She also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialist Brenda Williams and Victim/Advocate Lezlie Richardson. Finally, U.S. Attorney Liu commended the efforts of Assistant U.S. Attorneys Julianne Johnston and Peter V. Taylor, who investigated and prosecuted the case.
South African Professional Hunter Charged with Federal Crimes for Illegal Elephant HuntsRead the Press Release
DENVER – Hanno Van Rensburg, age 44, of South Africa, was charged with federal crimes related to illegal elephant hunts in an indictment unsealed in United States District Court for the District of Colorado, announced U.S. Attorney Bob Troyer and U.S. Fish and Wildlife Service, Office of Law Enforcement (FWS-OLE) Special Agent in Charge Steve Oberholtzer.
As alleged in the indictment, the defendant sought opportunities to hunt large elephants that frequent the area around Gonarezhou National Park in Zimbabwe. He hired a Zimbabwe-based outfitter so that he could lead a hunt inside the park. Once on the hunt, the defendant shot several elephants, and an elephant was killed inside the national park. The defendant then paid somewhere between $5,000 and $8,000 in bribes to Zimbabwean government officials in return for authorization to shoot the elephants, to kill an elephant inside Gonarezhou National Park, and to have the elephant’s ivory released. The defendant also helped a client in an effort to export the elephant out of Zimbabwe, by agreeing to falsely represent that the elephant was killed outside the national park and by agreeing to manufacture and submit a document falsely stating that this client was a resident of South Africa.
In addition, the defendant allegedly attempted to sell an illegal elephant hunt to an undercover U.S. Fish and Wildlife Agent. Among other things, the defendant attempted to sell the undercover agent a hunt in the same location outside Gonarezhou National Park and advertised his willingness to pay bribes to obtain tags to hunt inside Gonarezhou National Park. As alleged in the indictment, the defendant told the undercover agent that “if they need another tag, they get another tag. You know, that’s the negative part of it. The system is so corrupt. If they need to get it, they will get it. If the client pays the money they will find another tag. I am straight forward with you. Corruption is the rule in Africa.” In the process of offering the undercover agent a hunting trip, the defendant proposed that the undercover agent bring approximately $9,000 in “extras” that “we can use in camp to make things straight if we need to.” The defendant also advertised his hunting services by describing in detail his previous illegal hunt in Gonarezhou National Park.
“The U.S. Attorney’s Office and our law enforcement partners work together to support global efforts to protect threatened and endangered wildlife from illegal poaching,” said U.S. Attorney Bob Troyer. “FWS and our prosecutors did an extraordinary job investigating this case.”
“The U.S. Fish and Wildlife Service is committed to protecting imperiled species around the globe from poaching and trafficking,” said Steve Oberholzer, the Special Agent in Charge of the Mountain-Prairie Region. “These cooperative law enforcement efforts strengthen and protect America’s borders while ensuring the conservation of cherished wildlife species."
The case was investigated by FWS-OLE.
The defendant is being prosecuted by Assistant United States Attorneys Bryan D. Fields and Suneeta Hazra.
The defendant is presumed innocent unless and until proven guilty in a court of law.
Six charged in massive fraud & money laundering schemeRead the Press Release
Alleged to have stolen over $8 million from a bank and an insurance company
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler announced federal charges against six individuals, including a former regional construction project manager for a bank, the owners of two different construction companies, the owner of an Indianapolis maintenance services company, and the owner of a Plainfield, Indiana, supply company. The six defendants are alleged to have operated a large-scale scheme to defraud and embezzle over $8 million from a Pennsylvania based bank and a Pennsylvania based insurance company. These charges are the product of a two-year investigation led by the U.S. Postal Inspection Service, with assistance from the Federal Bureau of Investigation and Internal Revenue Service. Neither the bank nor the insurance company are being named because they are victims in this case.
“This community has a right to hold high expectations of individuals in positions of trust in our financial institutions,” said Minkler. “Those who blatantly commit fraud and abuse their positions will be held accountable in federal court.”
Those charged were: John L. Williams, 49, Zionsville, a former employee of the bank; Ernie Perkins, 36, Zionsville, the owner of Remarkable Creative Enterprises (“RCE”); Robert Finch, 71, Indianapolis, owner of Finch Constructors and Finch Management; Donald Landis, 58, Plainfield, owner of P&L Supply; Walter Watson, 69, Detroit, Michigan, owner of W-3 construction company; and Shalonda Coleman, 42, Indianapolis, a former employee of the insurance company.
According to the indictment, Williams was employed as a construction project manager in the Indianapolis regional office of the bank. His responsibilities included overseeing the bank’s internal real estate projects in Wisconsin, Illinois, Michigan, Kentucky and Indiana, including new bank branch construction and existing bank branch renovation projects. In carrying out the scheme, Williams would contact Perkins, Finch, Watson, and Landis and instruct them to submit fraudulent invoices to the bank for work that was never performed and materials that were never supplied. Williams used his position at the bank and his oversight of the projects in question to approve payment of the fraudulent invoices. Once the bank paid the invoices, Perkins, Finch, Watson, and Landis would kick back a large percentage of the money to CB Consulting, a fictitious business entity controlled by Williams. In many cases, the money passed through multiple bank accounts before reaching the bank account Williams set up for CB Consulting.
Coleman and Perkins are also charged with using the U.S. Mail to defraud a Pennsylvania-based insurance company and steal money. In those instances, Coleman used her position as a claims processor, and her access to the company’s computer systems, to cause the insurance company to mail checks to RCE. Coleman disguised the payments to RCE as payments for work performed for the company’s insurance clients, but no work was ever performed. Instead, Perkins would deposit the checks into RCE accounts and kick back a percentage of the money to Coleman.
All six defendants are charged with conspiring to launder the money stolen from the bank and insurance company, and Williams and Finch are separately charged with engaging in a significant number of financial transactions in excess of $10,000 using the stolen funds. Those transactions included transfers to other bank accounts held by the defendants, construction of a residence in Zionsville, Indiana, more than $100,000 in payments for Williams’ daughter’s wedding, and the purchase of multiple automobiles. Williams and Coleman are also charged with tax evasion and filing false tax returns, respectively, for failing to report their receipt of stolen funds as income on their tax returns.
“The members of this criminal enterprise executed a scheme to steal millions of dollars, for their own personal use, and evade the law,” said Inspector in Charge Patricia Armstrong, of the Detroit Division, U.S. Postal Inspection Service. “The arrest and indictment of these defendants should serve as a warning to others who seek to commit similar crimes. Postal Inspectors, and our federal law enforcement partners, will tirelessly pursue them until they are brought to justice.”
“Those who line their pockets by embezzling and stealing from others or the government should know they will not go undetected and will be held accountable,” said Gabriel Grchan, Special Agent in Charge of IRS Criminal Investigation. “These charges and arrests show that IRS Criminal Investigation is committed to following the money trail to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice. IRS Criminal Investigation stands ready to partner with all law enforcement agencies in Indiana to pursue individuals who steal from others and the government.”
“The FBI is committed to aggressively pursuing fraud committed on individuals, corporations or financial institutions. These charges send a clear message that attempting to hide criminal activity and defraud others comes at a price,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “Through collaborative efforts with our partners we will continue to work diligently to identify and investigate those who perpetuate these crimes and stop this type of corruption.”
According to Assistant United States Attorney Matthew J. Rinka, who is prosecuting this case for the government, each defendant faces a maximum of thirty (30) years imprisonment for their roles in the scheme and up to three (3) years of supervised release following any term of imprisonment.
An indictment is only a charge and not evidence of guilt. All defendants are considered innocent until proven otherwise in federal court.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution sentencing demonstrates the office’s firm commitment to partner with federal and local law enforcement agencies to prosecute those individuals who perpetrate large-scale fraud schemes and abuse positions of trust. See United States Attorney’s Office, Southern District of Indiana Strategic Plan (Section 5.1)
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Seven Puerto Rico Police Officers Indicted and Arrested for Corrupt Activities Including Drug Trafficking and Firearms ViolationsRead the Press Release
SAN JUAN, Puerto Rico– Seven Puerto Rico police officers have been charged in four different indictments for their alleged participation in a criminal acts, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico. The FBI is in charge of the investigations.
“When the officer with a gun and a badge is no different from the trafficker peddling drugs in the street, we all suffer. That is why the US Attorney’s Office and our law enforcement partners are determined to root out corruption, wherever and in whatever forms it may be found,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez.
“Today’s charges represent a grave breach of the oath taken by these sworn officers. Fortunately, those accused represent only a very small percentage of the brave men and women of the Puerto Rico Police Department, who serve only to protect the citizens of Puerto Rico. In fact, the FBI’s continued efforts to clean up corruption and civil rights violations have been assisted by the full cooperation of the leadership of the Puerto Rico Police Department,’ stated Douglas Leff, Special Agent in Charge of FBI, San Juan.
The first indictment, returned on May 18, 2018 by a federal grand jury in the District of Puerto Rico, includes 13 counts for corrupt activities against the following police officers assigned to the Caguas Drug Unit: Eidderf Jhave Ramos-Ortiz, a.k.a. “Baby;” Juan Carlos Ortiz-Vázquez, a.k.a. “Juan C.;” Christian Rodríguez-Cruz; and Eric Velázquez-Martínez.
Eidderf Jhave Ramos-Ortiz is facing 11 counts for possession with intent to distribute marihuana while carrying firearms. Defendant Juan Carlos Ortiz-Vázquez is facing six counts for possession with intent to distribute marihuana while carrying firearms. Defendants Christian Rodríguez-Cruz and Eric Velázquez-Martínez are facing one count for possession with intent to distribute marihuana and one count for carrying a firearm during and in relation to a drug trafficking crime. If found guilty, all defendants are facing up to five years for the marihuana charges and up to life in prison for the firearms charges.
The second indictment charges José D. García-Hernández for possession with intent to distribute detectable amounts of marihuana in the municipality of Vega Baja. He is also charged with possessing firearms in furtherance of a drug trafficking crime. García-Hernández is facing five years for the marihuana count and up to life in prison for the firearm violation count.
The third indictment charges José De Jesús Rivera, a.k.a. “El Mudo” with possession with intent to distribute detectable amounts of Tramadol, a Schedule IV drug controlled substance. On April 25, 2016 in the municipality of Vega Baja, De Jesús-Rivera carried firearms during and in relation to a drug trafficking crime as charged in the first count. This defendant is also charged with possession with intent to distribute Tramadol within 1,000 feet of the Brígida Álvarez Rodríguez School in Vega Baja. De Jesús Rivera is facing 20 years for the Tramadol count and up to life in prison for the firearm violation count.
The fourth indictment charges Marcelino Pérez-De Jesús with two counts for the sale of a firearm and ammunition to a prohibited person. On or about July 5, 2016, Pérez-De Jesús knowingly sold a Smith & Wesson 9mm caliber pistol to a felon. On July 20, 2017, the defendant sold 50 rounds of .40 caliber ammunition and two .40 caliber Glock magazines to a felon. The maximum penalty Pérez-De Jesús faces is up to 10 years in prison.
The cases are being investigated by the FBI’s San Juan Division and prosecuted by Assistant U.S. Attorneys José A. Contreras, Teresa Zapata-Valladares, and Nicholas W. Cannon.
The charges contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty.
Citizens of Puerto Rico with allegations of law enforcement corruption are encouraged to contact the FBI’s San Juan Division at (787) 754-6000.
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Sen Sun Sentenced for Harboring Illegal AliensRead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that on Friday, May 18, 2018, Chief Judge Ramona V. Manglona sentenced defendant SUN SEN for the crime of Harboring Illegal Aliens, in violation of Title 8, United States Code, Section 1324(a)(1), for his role in operating an illegal birth-tourism business on Saipan. As part of his operation, the defendant illegally employed dozens of caretakers, or “nannies”, all Chinese nationals who were in the CNMI without work authorization. The judge sentenced SUN to one year and one day of imprisonment, a $1,000 fine, and ordered that the defendant forfeit $33,960 in criminally- derived proceeds to the United States.
United States Attorney Anderson made the following statement: “The Department of Justice will not tolerate abuse of our immigration laws and regulations, particularly by those like Mr. Sun who ran a large and lucrative underground birth-tourism operation. Such businesses jeopardize the island’s legitimate tourist industry, while inviting practices that risk the health of both mother and child. Federal law enforcement will aggressively investigate and prosecute all those who engage in such an unlawful enterprise. We will also eliminate their profit motive through the forfeiture of all money and assets that can be linked to their crimes.”
Special Agents from the Federal Bureau of Investigation conducted the investigation, with assistance from the Department of Homeland Security, Homeland Security Investigations. The case was prosecuted by Eric O’Malley, First Assistant United States Attorney for Guam and the Northern Mariana Islands.
Repeat Offender Sentenced to over 21 Years in Federal Prison for Distributing Child PornographyRead the Press Release
A man who distributed child pornography and had previously been convicted in federal court of receiving child pornography was sentenced today to over 21 years in federal prison.
Craig Watters, age 31, from Cedar Rapids, Iowa, received the sentence after a November 1, 2017 guilty plea to one count of distribution of child pornography. At the plea hearing, Watters admitted that, in 2014, he knowingly distributed child pornography. He also admitted that he was convicted of receipt of child pornography in the Northern District of Iowa in 2009.
Watters was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Watters was sentenced to 262 months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to make $6,500 in restitution to two victims depicted in videos he received or distributed. Watters must also serve a life term of supervised release, and he must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation and the Cedar Rapids Police Department.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 17-69.
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