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Friday 18 May 2018
Buena Vista Man Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
LYNCHBURG, VIRGINIA – A 32-year-old Buena Vista man, who was studying to become a youth pastor, pleaded guilty earlier this week to a pair of federal charges related to the possession and distribution of child pornography, United States Attorney Thomas T. Cullen announced.
Christopher Collins, 32, of Buena Vista, Va., pleaded guilty on Wednesday, May 16, 2018 in U.S. District Court in Lynchburg without a plea agreement to one count of possession of child pornography and one count of attempting to send obscene matter to a minor under the age of 16 years.
“Working with our federal, state, and local partners, the United States Attorney’s Office will aggressively prosecute individuals who possess and share materials that exploit children,” U.S. Attorney Cullen stated today. “Children are exploited each and every time these images are shared online, and those who engage in this abhorrent activity will be held accountable.”
According to a summary of evidence presented at Wednesday’s guilty plea hearing by Assistant United States Attorney Nancy S. Healey, the investigation into Collins’ online activity began in November 2016 when an undercover law enforcement officer posing as a 13-year-old girl was contacted in a chat room by a user posing as “NavyGuy4Yng” (later identified as the defendant). During chats with the undercover officer, Collins sent pictures of his erect penis and a video of a male masturbating and claimed to be a youth pastor in Virginia.
In February 2017, investigators with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Rockbridge County Sheriff’s Office and the Office of the Virginia Attorney General, executed a federal search warrant at Collins’ Rockbridge County residence. During the on-scene investigation, investigators seized digital devices and interviewed Collins. During the interview, Collins made various admissions, including the fact that he liked to role-play with minor girls on Kik and other online forums, that he communicated with girls who claimed they were between 13 and 15 years old, and that he transmitted videos and photographs of himself nude. In addition, investigators found child pornography images on digital devices seized from Collins’ residence.
The investigation of the case was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Rockbridge County Sheriff’s Office and the Office of the Virginia Attorney General. Assistant United States Attorney Nancy S. Healey is prosecuting the case for the United States.
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 exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Bay Area Doctors Agree to Pay $260,000 to Settle Department of Justice Claims That They Failed to Maintain Adequate Records Regarding Controlled SubstancesRead the Press Release
SAN FRANCISO – Drs. William Longton, Ruben Kalra, and Richard Shinaman have agreed to collectively pay $260,000 to settle allegations by the U.S. Department of Justice that they failed to keep and maintain adequate records and other allegations pertaining to controlled substances at their Novato, Pleasant Hill, and Pleasanton offices, announced Acting United States Attorney Alex G. Tse and Drug Enforcement Administration (DEA), Special Agent in Charge, San Francisco Field Division, Christopher D. Nielsen.
The settlement agreement resolves allegations by the government that a January 2014 DEA inspection uncovered multiple violations by Longton, Kalra, and Shinaman of the Controlled Substances Act, 21 U.S.C. § 801. The physicians operate under the name Pain Medicine Consultants, Inc., with offices in multiple Bay Area locations. In the agreement, the physicians acknowledge that they each, at the relevant time, were registered with the DEA as Practitioners, providing them with authorizations to handle Schedules II through V controlled substances. They also acknowledge they had an obligation to “keep and maintain” records related to their receipt and distribution of controlled substances in connection with their practices. According to the agreement, following the DEA’s inspection, the government concluded that between January 10, 2012, through January 17, 2014, Shinaman, Longton, and Kalra failed to keep and maintain adequate records pertaining to controlled substances, as required by 21 C.F.R. § 1304, et seq.; failed to include the address of the patient on controlled substance prescriptions that they each issued as required by 21 C.F.R. § 1306.05(a); and exceeded the authority of their registrations by filling a prescription for a controlled substance, in violation of 21 C.F.R. § 1306.06.
According to the terms of the agreement, Longton, Kalra, and Shinaman will collectively pay the government $260,000 to resolve all civil claims related to the violations identified in the investigation.
Assistant U.S. Attorney Rebecca A. Falk is handling the matter on behalf of the U.S. Attorney’s Office for the Northern District of California, with assistance from the DEA San Francisco Field Division, Oakland Resident Office Diversion Group.
Bank Sentenced for Obstructing Regulators, Forfeits $368 Million for Concealing Anti-Money Laundering FailuresRead the Press Release
Assistant U.S. Attorneys Daniel C. Silva (619) 546-9713, Mark W. Pletcher (619) 546-9714, and David J. Rawls (619) 546-7966
NEWS RELEASE SUMMARY – May 18, 2018
SAN DIEGO – Rabobank, National Association, a California subsidiary of the Netherlands-based Coöperatieve Rabobank U.A., was sentenced today before U.S. District Judge Jeffrey T. Miller for conspiring to impair, impede, and obstruct its primary regulator, the Department of the Treasury’s Office of the Comptroller of the Currency (OCC), by concealing deficiencies in its anti-money laundering program.
Judge Miller sentenced Rabobank to pay the statutory maximum fine of $500,000 after taking account of Rabobank’s forfeiture of $368,701,259 as well as a two-year term of probation. Today’s half million dollar criminal fine coupled with Rabobank’s forfeiture of $368,701,259 stands as the largest monetary penalty paid by a criminal defendant in the history of the Southern District of California.
In imposing sentence, Judge Miller noted that Rabobank’s conduct essentially amounted to “stiff-arming the OCC, and completely failing in its responsibility to its customers and the nation.”
“The U.S. Attorney’s Office is intent on securing the border and preventing the laundering of narco-dollars through financial institutions like Rabobank,” said U.S. Attorney Adam L. Braverman. “In doing so we will safeguard our communities and protect our citizens from drug traffickers and corporate criminals alike.”
“Rabobank’s branches on the Mexican border processed hundreds of millions of dollars in suspicious transactions likely tied to international narcotics trafficking, organized crime, and money laundering,” said Acting Assistant Attorney General John P. Cronan. “Instead of filing reports that would have alerted law enforcement to the suspicious activity, as required by law, the bank looked the other way and then compounded its misconduct by conspiring to cover-up its failures and deceiving its regulator. Today’s sentence and the related forfeiture demonstrate that the Department of Justice will use all the tools at our disposal to combat drug trafficking and transnational crime—including prosecuting financial institutions that turn a blind eye to illicit proceeds moving through their customers’ accounts.”
“It is the responsibility of Homeland Security Investigations (“HSI”) to monitor and investigate activity which exploits the global infrastructure, to include financial systems. This complex investigation revealed, and Rabobank admits, that Rabobank was aware of the extreme risk that it was processing hundreds of millions of dollars related to transnational crime and international money laundering – activity which plagues the Southwest Border,” said Dave Shaw, Special Agent in Charge for HSI in San Diego. “This plea and significant forfeiture sends a strong message to financial institutions that this activity will not be tolerated.”
“Rabobank’s sentencing today is a victory for all Americans and sends a strong message about the need for transparency in banking and ultimately contributes to the fight against money laundering,” stated IRS Criminal Investigation’s Special Agent in Charge, Los Angeles Field Office, R. Damon Rowe. “IRS-Criminal Investigation works diligently with our law enforcement partners to ensure funds obtained through illegal means do not find their way into our financial institutions."
Today’s sentence follows Rabobank’s February 7, 2018, guilty plea for conspiring with several former executives to defraud the United States by unlawfully impairing and impeding the OCC’s ability to regulate the bank and obstructing its examination of Rabobank’s Bank Secrecy Act/Anti-Money Laundering (BSA/AML) compliance program. In connection with that guilty plea, Rabobank admitted that between 2009 and 2012 it implemented BSA/AML policies and procedures that precluded and suppressed legally-mandated investigations into potentially suspicious account activity, much of which was conducted by cross-border customers and through accounts that Rabobank had previously designated “High-Risk.”
As a result of its BSA/AML failures, Rabobank admitted that certain customer accounts were involved in not less than $368,701,259 in suspicious transactions that were either unreported or untimely reported to the Financial Crimes Enforcement Network (FinCEN), as required by the BSA. These transactions along the southwest border included high-volume cash deposits and withdrawals, check transactions, electronic transfers, and wire transfers that were consistent with illegal activity such as trade-based money laundering, bulk cash smuggling, structuring, and the black market peso exchange.
Rabobank’s branches in Imperial County were heavily dependent on cash sourced from Mexico – cash the bank knew was likely tied to narcotics trafficking and organized crime. In particular, Rabobank’s Calexico, California branch, located approximately two blocks from the U.S.-Mexico border, was the highest performing branch in the Imperial Valley region due to its receipt of cash from Mexico. Rabobank continued soliciting cash-intensive customers from Mexico, while failing to employ appropriate BSA/AML policies and procedures to address the heightened risk, until approximately May 2013, when Rabobank placed a moratorium on originating new account relationships for Mexico-based businesses entities.
Rabobank also admitted that the bank and its executives corruptly obstructed the OCC’s 2012 examination by responding to the OCC’s February 2013 initial report of examination with false and misleading information about the state of Rabobank’s BSA/AML program and by making false and misleading statements to the OCC regarding the existence of reports developed by a third-party consultant that described the deficiencies and resulting ineffectiveness of Rabobank’s BSA/AML program. Rabobank also demoted or terminated two of its employees who provided information to the OCC.
The case is being prosecuted by Assistant U.S. Attorneys Daniel C. Silva, Mark W. Pletcher, and David J. Rawls from the Southern District of California, and Trial Attorneys Kevin G. Mosley and Maria Vento of the Criminal Division’s Money Laundering and Asset Recovery Section. The investigation team included HSI, IRS, and the Financial Investigations and Border Crimes Task Force (the “FIBC”), a multiagency Task Force based in San Diego and Imperial Counties, and funded by the Treasury Executive Office of Asset Forfeiture (“TEOAF”). The investigation occurred in parallel with regulatory investigations by the OCC, Office of General Counsel, and FinCEN, Enforcement Division
DEFENDANT
RABOBANK, NATIONAL ASSOCIATION
Roseville, California
SUMMARY OF CHARGES
Conspiracy to Defraud the United States and (2) To Corruptly Obstruct an Examination of a Financial Institution – Title 18, United States Code, Section 371
Maximum penalties: $500,000 fine; a mandatory special assessment of $400; and a term of probation of at least one year, but not more than five years.
AGENCIES
Homeland Security Investigations
Internal Revenue Service – Criminal Investigation
TEOAF’s Financial Investigations and Border Crimes Task Force
BGF Gang Member Sentenced to 15 Years in Prison for Racketeering ConspiracyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge James K. Bredar sentenced Kenneth Faison, age 28, of Baltimore, Maryland today to 15 years in prison, followed by five years of supervised release, for racketeering conspiracy. The Court found at sentencing that a total prison term of 20 years was appropriate, but it adjusted the sentence downward to account for the fact that Faison served five years in prison in connection with two related state cases.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Matthew Varisco of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Acting Commissioner Gary Tuggle of the Baltimore Police Department; Maryland Attorney General Brian E. Frosh; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement, Faison was a member of an organization known today as the Black Guerilla Family (BGF) Greenmount Regime, a violent set, or “bubble,” of BGF. During the early years in which it operated, the gang called itself the Young Guerilla Family, or YGF, and consisted mostly of younger people who lived in the 2200, 2300, and 2400 blocks of Barclay Street and Guilford Avenue. YGF members sold drugs throughout the Greenmount Avenue corridor and committed murders, shootings, and armed robberies.
According to the plea agreement, Faison admitted that on January 7, 2010, in the 2100 block of Barclay Street, he conducted three separate robberies of three victims. Faison brandished a firearm during all three robberies.
In addition, the Court found at sentencing that in the fall of 2012, Faison and other BGF members participated in an unsuccessful plot to murder a neighborhood drug dealer who had been distributing cocaine and other narcotics inside the gang’s territory.
Faison also admitted in his plea agreement that between 2007 and 2012, Faison conspired with members of the BGF Greenmount Regime to distribute cocaine, cocaine base, and marijuana in furtherance of the gang, and that it was reasonably foreseeable to him that between 280 and 840 grams of cocaine base would be trafficked by members of the gang.
United States Attorney Robert K. Hur commended the ATF, the FBI, the Baltimore City Police Department, the Maryland Attorney General’s Office, and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Peter J. Martinez and Christina Hoffman, who prosecuted the case.
Authorities Arrest Longtime Fugitive Charged with Attempted Murder of Undercover Officer in Federal Racketeering CaseRead the Press Release
LOS ANGELES – Early Thursday morning, law enforcement authorities arrested an alleged gang member who had been a fugitive for nearly two years after the unsealing of a federal racketeering indictment that charges him in the attempted murder of an undercover Whittier Police Officer.
Frankie Vasquez, 39, of Carson, was arrested in connection with an indictment that charges him and 50 other members and associates of the Canta Ranas organization, a wide-ranging criminal enterprise which operates primarily in Santa Fe Springs and Whittier under the control of a member of the Mexican Mafia.
The arrest of Vasquez was the result of efforts by agents and officers with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the United States Marshals Service, the Whittier Police Department, the Montebello Police Department, and the Los Angeles County Sheriff’s Department. HSI’s Special Response Team and the Bureau of Alcohol, Tobacco, Firearms and Explosives provided assistance.
The racketeering indictment, which was unsealed in June 2016 and superseded in October 2017 to add additional charges, alleges that an incarcerated member of the Mexican Mafia prison gang exerts control over the Canta Ranas street gang and other gangs, and that he received compensation in the form of “rent” or “taxes” generated by drug trafficking and other offenses committed in gang territory.
The first superseding indictment also alleges that Vasquez, a member of the Varrio Keystone street gang and a key supplier of narcotics to the Canta Ranas organization, along with another defendant who was part of the Canta Ranas organization, attempted to murder a detective with the Whittier Police Department when they shot at him in his unmarked vehicle while he was conducting undercover surveillance as part of a narcotics investigation.
For his role in the criminal enterprise, Vasquez is charged with conspiring to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO), conspiring to commit a violent crime in aid of racketeering (VICAR), possessing a firearm in furtherance of a crime of violence and drug trafficking, as well as conspiring to distribute narcotics and commit money laundering. When law enforcement apprehended Vasquez on Thursday, they found in his possession a copy of the indictment, with certain sections highlighted.
“We will be relentless in tracking down dangerous fugitives and bringing them to justice,” said United States Attorney Nicola T. Hanna. “The criminal organization charged in this indictment is responsible for myriad crimes of violence and drug trafficking. Apprehending fugitives linked to dangerous organizations is part of our overall commitment to making our communities safer.”
At his arraignment Thursday afternoon, Vazquez was ordered held without bond.
The first superseding indictment specifically charges a conspiracy to violate RICO and a second conspiracy to distribute narcotics, which includes allegations of smuggling controlled substances, including heroin, into county jails. All 51 defendants were charged in both of these conspiracy counts.
The first superseding indictment includes nine VICAR counts, including one count alleging the alleged attack on the Whittier Police officer. Various defendants are additionally charged in 11 drug trafficking charges, 18 firearms offenses and a conspiracy to commit money laundering.
Most of the 51 defendants charged in the RICO indictment have been broken into five groups for purposes of trial. The first trial is scheduled to begin on August 7.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The RICO conspiracy count carries a statutory maximum penalty of life in federal prison. The VICAR charges carry varying penalties, with Vasquez facing a statutory maximum penalty of 10 years for his specific VICAR charge, and the narcotics charges all carry mandatory minimum sentences of either five or 10 years in prison.
The three-year investigation into the Canta Ranas organization was called Operation “Frog Legs” and resulted in the seizure of narcotics and 51 firearms. Operation Frog Legs was conducted by the Southern California Drug Task Force, which is led by the Drug Enforcement Administration as part of the High Intensity Drug Trafficking Area (HIDTA) initiative. Participants on the Task Force include personnel from HSI, the Whittier Police Department, the Los Angeles County Sheriff’s Department, IRS Criminal Investigation and the California Department of Corrections and Rehabilitation, Office of Correctional Safety, Special Service Unit.
The RICO case resulting from Operation Frog Legs is being prosecuted by Assistant United States Attorneys Carol Alexis Chen, Victoria A. Degtyareva and Jamie A. Lang of the Organized Crime Drug Enforcement Task Force.
Attorney General Sessions Announces Hugh Hurwitz as the Acting Director of the Federal Bureau of PrisonsRead the Press Release
Attorney General Jeff Sessions today announced that Hugh Hurwitz will begin serving as the Acting Director of the Federal Bureau of Prisons on May 19, 2018, following Former Director Mark Inch’s resignation.
“I am pleased to announce Hugh Hurwitz as the Acting Director of the Federal Bureau of Prisons. Hugh has honorably served the Department of Justice, the Federal Bureau of Prisons and the American people throughout his distinguished career of federal service.” said Attorney General Jeff Sessions. “I would also like to thank Mark Inch for proudly serving the Department of Justice as the Director of the Federal Bureau of Prisons and wish him luck in his future endeavors.”
Mr. Hurwitz began his career with the Bureau of Prisons as a law clerk in the Office of General Counsel in 1988. In 2003, Mr. Hurwitz was selected as the Chief of Acquisitions and Grants Services at the Food and Drug Administration (FDA), later becoming the FDA's Chief of Information Technology Shared Services. In 2007, he was appointed Senior Procurement Executive for the U.S. Department of Education (ED) before being promoted to Deputy Chief Financial Officer. Mr. Hurwitz joined NASA's Office of Inspector General in 2012 as the Assistant Inspector General for Management. In 2015, he returned to the Bureau of Prisons as the Senior Deputy Assistant Director of the Information, Policy and Public Affairs Division. In 2017, Mr. Hurwitz was named Assistant Director for the Reentry Services Division.
As Assistant Director, Mr. Hurwitz oversaw a wide variety of areas, including mental health and drug treatment, community placement, and the education, vocational and recreation training programs for federal inmates nationwide. Mr. Hurwitz was responsible for coordinating efforts with other disciplines, agencies, and organizations to facilitate the successful reintegration of inmates back to their communities upon release.
In 1987, Mr. Hurwitz received his Bachelor of Arts degree in Political Science from the University of Rochester. In 1990, he received his Juris Doctor degree from American University, Washington College of Law.Arizona Man Pleads Guilty to Federal Drug Trafficking Charges in New MexicoRead the Press Release
ALBUQUERQUE – Scott Richard Lange, 55, of Phoenix, Ariz., pled guilty today in federal court in Las Cruces, N.M., to methamphetamine trafficking charges.
Officers of the Las Cruces Police Department arrested Lange and co-defendant Amy R. Bailey, 42, also of Phoenix, Ariz., in Sept. 2017, on methamphetamine trafficking offenses. According to the criminal complaint, the officers executed the arrests after finding approximately 1,885.5 grams (4.16 pounds) of methamphetamine in a vehicle driven by Lange during a routine traffic stop.
Lange and Bailey subsequently were indicted on Dec. 13, 2017, and were charged with conspiracy and possession of methamphetamine with intent to distribute. The indictment alleged that Lange and Bailey committed the crimes on Sept. 11, 2017, in Dona Ana County, N.M.
During today’s proceedings, Lange pled guilty to the two-count indictment and admitted that on Sept. 11, 2017, he agreed to deliver approximately four pounds methamphetamine to individuals in Las Cruces in exchange for payment. At sentencing, Lange faces a statutory mandatory minimum penalty of ten years and a maximum of life in federal prison. He remains in custody pending a sentencing hearing, which has yet to be scheduled.
Bailey has entered a plea of not guilty and is currently scheduled for trial in June 2018. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Las Cruces office of the FBI, the Las Cruces Police Department, and the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force. Special Assistant U.S. Attorney Joni L. Autrey of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Albany Woman Pleads Guilty to Cocaine and Crack ConspiracyRead the Press Release
ALBANY, NEW YORK – Shenika D. Boyd, aka “Misses,” age 38, of Albany, pled guilty today to her involvement in a drug trafficking ring that operated in Schenectady and Albany.
The announcement was made by United States Attorney Grant C. Jaquith and Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Boyd admitted that between August 1, 2016 and May, 2017, she worked with others to distribute cocaine base (a/k/a crack cocaine) and cocaine in Albany and Schenectady Counties.
The following defendants have also pled guilty in connection with the conspiracy:
Name
Age
Residence
Jose Gilberto Harris
58
Manhattan
Lashaunda Tarver, aka “Shaunda”
38
Schenectady
Bobby R. Graham
51
Albany
Marty Humphrey
65
Schenectady
Jalessa Scott
27
Schenectady
Willie C. Hayes, aka “Man”
45
Schenectady
Kimberly Petties, aka “Shorty”
49
Schenectady
Manuel Clemente
62
Manhattan
As part of this investigation, Scott also pled guilty in Schenectady County Court to criminal possession of a firearm.
The following defendants still face charges in this case:
Name
Age
Residence
Darren Clay Robinson, aka “Mountain”
54
Schenectady and Teaneck,
New JerseyYusef Boothman, aka “Rocket”
38
Schenectady
The charges against these defendants are merely accusations. The defendants are presumed innocent unless and until proven guilty.
Additionally, Robinson; Corey White, Jr., aka “Stacks,” age 34, of Schenectady; and Kristy L. Smith, age 39, of Schenectady, are charged separately with conspiring to distribute heroin, and possession of heroin. The charges against these defendants are merely accusations. The defendants are presumed innocent unless and until proven guilty.
These cases are being investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including the Schenectady Police Department, Schenectady County District Attorney’s Office, the U.S. Drug Enforcement Administration, Albany County Sheriff’s Office, New York State Police, and the New York Department of Corrections and Community Supervision. These cases are being prosecuted by Assistant U.S. Attorney Michael Barnett.
Thursday 17 May 2018
Wisconsin Man Sentenced for Sexual Abuse of MinorsRead the Press Release
United States Attorney Ron Parsons announced that a Milwaukee, Wisconsin, man convicted of Aggravated Sexual Abuse of a Child and Abusive Sexual Contact of a Child, was sentenced on May 14, 2018, by U.S. District Judge Charles B. Kornmann.
Dashown Raymond Keys, age 26, was sentenced to 540 months (45 years) in custody, lifetime of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $600, resulting from a jury trial conviction on December 7, 2017.
Keys was indicted by a federal grand jury on April 13, 2016.
Following a 3-day federal jury trial held December 5, 2017, through December 7, 2017, in Aberdeen, South Dakota, Keys was found guilty of four counts of Aggravated Sexual Abuse of a Child, and two counts of Abusive Sexual Contact of a Child.
The convictions stem from incidents between November 1, 2013, and January 1, 2016. Keys repeatedly sexually abused two young girls, both under the age of 12 at the time of the assaults, while Keys was staying at the home of one of the victims. Keys moved to South Dakota from Wisconsin to stay with extended family. While Keys was primarily and repeatedly sexually abusing the daughter of the family he was staying with, he also sexually abused another child. The two victims were friends who would have sleep overs from time to time. During these sleep overs, Keys would sexually abuse his primary victim’s friend. The sexual abuse ended when Keys moved back to Wisconsin. Three days after his departure, the primary victim of his abuse came forward and reported the abuse to her mother. The primary victim indicated that Keys had threatened to harm members of the family if the sexual abuse was disclosed.
“The United States Attorney’s Office remains committed to protecting these most vulnerable victims of society,” said U.S. Attorney Ron Parsons. “I applaud the bravery displayed by these two young victims in coming forward and facing their abuser in a court of law. This was not an easy process for them, and I hope this significant sentence imposed against this vicious criminal helps them in their healing process going forward.”
This case was investigated by the Federal Bureau of Investigation and the Sisseton-Wahpeton Tribal Police Department. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Keys was immediately turned over to the custody of the U.S. Marshals Service.
West Hartford Healthcare Facility Agrees to Increase Accessibility in Order to Comply with ADARead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached settlement agreements with ProHealth Physicians, Inc. (“ProHealth”) and Udolf 631, LLC (“Udolf Properties”) to resolve allegations that a ProHealth office in West Hartford was not operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreements resolve an ADA complaint filed by an individual with disabilities alleging that the ProHealth office, located at 631 Quaker Lane South in West Hartford, was not accessible to individuals with physical disabilities. ProHealth leases the premises from Udolf Properties.
ProHealth and Udolf Properties are in the process of making the changes to the Quaker Lane office required by the settlement agreements, which include improving the accessibility of the facility’s entrances and access routes, increasing the number of accessible parking spaces and adding a van accessible parking space, adding accessible features to restrooms, reducing barriers for patients to access check-in and check-out areas, ensuring access to all patient areas of the facility, and adding an accessible exam table and method for ensuring access to diagnostic testing facilities for individuals with disabilities. Udolf Properties will make improvements over the next six months and ProHealth will continue to make improvements over the next two years.
Under federal law, professional offices of health care providers and their landlords are considered “public accommodations” and are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
U.S. Attorney Durham noted that the leadership of both ProHealth and Udolf Properties have worked cooperatively and collaboratively with the U.S. Attorney’s Office to expeditiously address the ADA issues without litigation and to make comprehensive changes to the Quaker Lane office facility to improve accessibility.
“The Americans with Disabilities Act ensures that individuals are able to access the offices of health care providers and other public accommodations,” said U.S. Attorney Durham. “We appreciate the willingness of ProHealth and Udolf Properties to greatly increase the accessibility and usability of the Quaker Lane office for individuals with disabilities.”
Any member of the public who wishes to file a complaint alleging that the office of a health care provider or any other place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This matter was handled by Assistant U.S. Attorney Jessica H. Soufer of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Waterloo Felon Pleads Guilty to Illegally Possessing GunRead the Press Release
A convicted burglar who illegally possessed a handgun pled guilty on May 16, 2018, in federal court in Cedar Rapids.
Allan James Arceo, age 24, from Waterloo, Iowa, was convicted of one count of possessing a firearm as a felon. At the plea hearing, Arceo admitted he possessed the loaded firearm in Waterloo on January 1, 2018. Arceo had previously been convicted in 2014 of burglary in the third degree in Black Hawk County, Iowa.
Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Arceo remains in custody of the United States Marshal pending sentencing. Arceo faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together 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.
The case was investigated by the Waterloo Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant United States Attorney Dan Chatham. Court file information at https://ecf.iand.uscourts.gov/. The case file number is 18-CR-02003-LRR.
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US Department of Health & Human Services, Office of Inspector General Honors US Attorney’s Office- District of PR with Two Achievement AwardsRead the Press Release
SAN JUAN, P.R. –The United States Department of Health and Human Services, Office of Inspector General has honored the US Attorney’s Office, District of Puerto Rico with two distinguished awards, the Inspector General Cooperative Achievement Award, and the Inspector General’s Award for Fighting Fraud, Waste, and Abuse, announced US Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez.
This year’s Inspector General Cooperative Achievement Award recognizes a group of individuals from different federal and state agencies in Puerto Rico whose leadership, commitment, hard work, dedication, and cooperative achievements in the relief efforts following the Hurricane María’s aftermath, also known as the Puerto Rico Quality of Care and Patient Relief Effort/Elderly Task Force.
The USAO-PR recipients are US Attorney Rosa Emilia Rodríguez-Vélez, Executive Assistant US Attorney Jacqueline D. Novas, AUSA Olga Castellón-Miranda, and Paralegal Specialist Cristzayda Matos.
On September 20 2017, Hurricane Maria crossed directly over the island of Puerto Rico, which was still in the process of recovering from the effects of the previous Hurricane, Irma. The entire island was without power, water, and there was almost no cell service. There was severe flooding, buildings had sustained structural damage, and the roads were impassible due to downed electrical power lines and trees.
The United States Attorney’s Office for the District of Puerto Rico partnered with HHS-OIG, the Puerto Rico Department of Justice, other state and federal agencies and took a lead role on a quality of care initiative, conducting site surveys at elderly homes throughout the island, investigating potential quality of care issues while providing assistance and resources such as food, water, and hygiene products to those elderly homes residents. As a result of this initiative, a total of 839 elderly homes were visited and approximately 16,330 elderly patients were assisted as of December 2017. This initiative also led to the prosecution of an elderly homeowner who physically abuse of elderly patients.
During the initiative, these volunteers worked under challenging conditions in areas that had substantial debris and had no electrical power. Despite these obstacles, they made great contributions to the health and welfare of the sick and elderly citizens of Puerto Rico.
The Inspector General’s Award for Fighting Fraud, Waste, and Abuse, was granted to an outstanding team that investigated and prosecuted a group of government employees from the Puerto Rico Department of Health who conspired to defraud the Medicaid Program in PR. The recipients are: Assistant US Attorney and Criminal Division Chief José Capó-Iriarte, AUSAs Luke Cass, Seth Erbe, Rafael López, Chief of the Civil Division Héctor Ramírez-Carbó and Special AUSA Amanda Soto.
On February 24, 2016, a Federal Grand Jury in the District of Puerto Rico returned a fourteen-count indictment against eight individuals for bribery, health care fraud, conspiracy to commit health care fraud, conspiracy to commit an offense against the United States, mail fraud, false statements related to health care matters and aggravated identity theft.
The collaboration in this case marked the first time in which health care fraud violations related to the Medicaid program were charged in an Office of Investigation lead investigation in Puerto Rico. The collaboration also marked the first time criminal and civil actions were pursued against Medicaid participants. Furthermore, this collaboration also resulted in the administrative disenrollment of hundreds of Medicaid participants suspected of providing false statements during their enrollment process.
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U.S. Attorney Letter to the Editor -- National Police Week and Peace Officers Memorial DayRead the Press Release
United States Attorney Grant C. Jaquith sent the following letter to area newspapers in commemoration of National Police Week and Peace Officers Memorial Day:
To the Editor:
This is National Police Week, as first designated by Congress for 1962 in recognition of “the contribution the police officers of America have made to our civilization through their dedicated and selfless efforts in enforcing the laws of our cities, counties, and States and of the United States, regardless of the peril or hazard to themselves.” Today is Peace Officers Memorial Day, honoring those who lost their lives in the line of duty. Sadly, the first such loss in the United States reportedly occurred in what is now the Northern District of New York in 1791, when Constable Darius Quimby was shot and killed in Albany County while attempting to arrest a man on a warrant. Since then, heroic officers murdered in the Northern District have included some whose assailants were convicted in federal court, such as Syracuse Police Detective and federal Task Force Officer Wallie Howard, Jr., killed while working undercover in a drug investigation in 1990, and New Hartford Police Officer Joseph Corr, killed in 2006 while pursuing men who had robbed a jewelry store.
The annual FBI report released last week reflected a national total of 93 officers killed in the line of duty last year, including New York State Police Trooper Joel Davis, killed in Jefferson County last July. Next year’s report will include Whitesboro Police Officer Kevin Crossley, killed in Oneida County last month while responding to a call. Each name emphasizes that one death is too many, and that point has been underscored by the Presidential Executive Order on “Preventing Violence Against Federal, State, Tribal, and Local Law Enforcement Officers” and Attorney General Sessions’ focus on enhancing law enforcement safety and reducing violent crime. With reverence for all those who have made the ultimate sacrifice, the United States Attorney’s Office is committed to combating crimes of violence, and the drug, gun, and gang offenses that fuel them, and preserving public and police safety.
The rule of law is the cornerstone of our republic. It is how our constitutional rights and freedoms are guaranteed, and how we resolve disputes, preserve public safety, and secure justice based on fairness and reason. Our system works because of the dedication, courage, and integrity of law enforcement officers who risk their lives to help people – all people – and confront danger so the rest of us can stay safe. Night and day, on weekends and holidays, in good weather and bad, throughout the 30,000 square miles of the Northern District, there are local, state, tribal, and federal law enforcement officers on the job protecting our families, friends, communities, and countryside.
As law enforcement at all levels collaborates to curtail violent crime, the cooperation of the public is a key component of community resilience and neighborhood safety. On this Peace Officers Memorial Day, that is a fitting tribute to our fallen heroes and an effective expression of gratitude for those who continue to protect and serve.
Grant C. Jaquith
United States Attorney
Northern District of New York
U.S. Attorney Launches Birmingham Safe Neighborhoods Task ForceRead the Press Release
BIRMINGHAM – The U.S. Attorney’s Office today launched the Birmingham Safe Neighborhoods Task Force to offer prevention and community outreach programs within the city. This task force will complement the law enforcement work of the Birmingham Public Safety Task Force, which was announced last month, in combined efforts to reduce violent crime in the Birmingham area, announced U.S. Attorney Jay E. Town.
The Birmingham Safe Neighborhoods Task Force will engage law enforcement, government agencies, nonprofit organizations, and corporate citizens in a coordinated and collaborative process to ensure parity in prevention, enforcement, and reentry efforts. Building and restoring relationships between communities and law enforcement is a primary function of the task force.
“This task force will endeavor to meaningfully engage citizens of Birmingham with regard to how we can improve the station of the entire city,” Town said. “It is no longer enough just to prosecute our worst offenders. Prevention and outreach programs that decrease criminal activity and increase opportunity must accompany our overall crime reduction initiative,” he said. “I appreciate the leadership of our mayor, our sheriff, and all of our task force members for their willingness to engage in this worthy challenge.”
“As stated before, we are here for as long as it takes,” said Jefferson County Sheriff Mike Hale. “I have no doubt this multifaceted initiative is going to have a very positive impact on crime in general, but most especially violent crime. Taking violent criminals out of these neighborhoods and locking them up for 15 or more years will return these neighborhoods back to the good folks and improve their quality of life dramatically. That is the goal. It will be met.”
Members of the Birmingham Safe Neighborhoods Task Force will collaborate to develop and conduct community programs aimed at education, community-police relations and building opportunities that will benefit the entire community.
Building and improving trust and communication between the community and members of law enforcement will be a critical function of the BSNTF, Town said. That will include encouraging patrol officers, deputies and agents to increase general and positive interactions in the community, whether that be helping to spruce up a community park or passing out free ice-cream coupons to neighborhood kids.
The two Birmingham task forces incorporate principles of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy, and the National Public Safety Partnership. PSN is a nationwide Justice Department program committed to reducing gun and gang crime by networking existing local programs that target gun crime and supporting those efforts with training and funding.
U.S. Attorney General Jeff Sessions announced PSP last year as a training and technical assistance program designed to enhance the capacity of local jurisdictions to address violent crime in their communities. He selected Birmingham as one of the initial 12 locations to participate in the program. The PSP and PSN programs both reinforce the federal, state and local task force model as one of the most effective ways to reduce violent crime.
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Two Michigan Men Plead Guilty on Federal Charges in Connection with Jared the Galleria of Jewelry RobberyRead the Press Release
St. Louis, MO – Robert Scott and Xavier Grove pled guilty on Wednesday for their part in the robbery of Jared the Galleria of Jewelry on Monday, December 4, 2017.
According to court records, on December 4, 2017, at approximately 8:21 p.m., Robert Scott and Xavier Grove and two co-defendants, dressed in clothing intended to disguise their identities, entered the jewelry store, Jared the Galleria of Jewelry, in Richmond Heights, Missouri. While a co-defendant held the door, Scott, Grove and one other co-defendant, armed with hammers, yelled for the store employees to get down. Using the hammers to smash the glass display cases that showcased jewelry, the defendants grabbed loose diamonds and watches. Scott and Grove, along with the two others, then fled. However, due to the presence of police officers in the area on an unrelated incident, the four robbers were not able to reach their getaway driver and were quickly apprehended. Grove was arrested at a nearby business and Scott was arrested near I-170, behind the Boulevard St. Louis parking garage. The diamonds and watches were recovered from a backpack carried by one of the co-defendants which were valued at approximately $60,000.
Robert Scott, 29, pled guilty to one felony count each of robbery which interfered with interstate commerce. U.S. District Judge Audrey Fleissig accepted his plea and set sentencing for September 6th.
Xavier Grove, 34, pled guilty to one felony count each of robbery which interfered with interstate commerce. U.S. District Judge Audrey Fleissig accepted his plea and set sentencing for September 6th.
Co-defendants Tyran Gray and Darrell Lee both pled guilty in February 2018 and are awaiting sentence – June 20th and May 29th, respectively.
The robbery charge carries a maximum penalty of 20 years in prison and/or fines up $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case is being investigated by the Richmond Heights Police Department and Federal Bureau of Investigation. Assistant United States Attorney John Ware is handling the case for the U.S. Attorney’s Office.
Two Members of Syrian Electronic Army Indicted for ConspiracyRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an 11-count indictment today charging two Syrian men with offenses relating to their participation in a conspiracy to engage in computer hacking as members of the “Syrian Electronic Army” or “SEA.”
Ahmad ‘Umar Agha, who is known online as the “The Pro,” and Firas Dardar, who uses the nickname “The Shadow,” were indicted on conspiracy charges and multiple counts of aggravated identity theft.
According to allegations in the indictment, under the name “Syrian Electronic Army,” the conspirators focused on spearphishing U.S. government, military, international organizations, and private-sector entities, including the Executive Office of the President, the U.S. Marine Corps, the National Aeronautics and Space Administration, National Public Radio, the Associated Press, Reuters, The Washington Post, The New York Times, CNN, The Onion, USA Today, The New York Post, Time, Human Rights Watch, and scores of other entities and individuals. Agha and Dardar would research targets and then engage in dedicated spearphishing attacks on victim organizations. When the conspiracy’s spearphishing efforts were successful, Agha and Dardar allegedly would use stolen usernames and passwords to deface websites, redirect domains to sites controlled or utilized by the conspiracy, steal electronic mail, and hijack social media accounts.
The alleged offenses of conspiracy and conspiracy to commit wire fraud carry maximum prison terms of 5 and 20 years in prison, respectively, and the alleged aggravated identity theft charges carry a collective mandatory prison term of 2 years in prison and a maximum 18 years in prison. 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, John C. Demers, Assistant Attorney General for National Security, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the indictment was returned.
The case was investigated by the FBI’s Washington Field Office with assistance from other law enforcement agencies including the NASA Office of the Inspector General. Assistant U.S. Attorneys Jay V. Prabhu and Maya D. Song, and Trial Attorneys Scott McCulloch, Nathan Charles, and Brandon Van Grack of the Justice Department’s National Security Division 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-221.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Three Louisiana Residents Convicted of Insider Trading in Connection with Shaw Group AcquisitionRead the Press Release
United States Attorney Brandon J. Fremin announced today that a federal jury has unanimously convicted three Louisiana residents of insider trading in connection with the acquisition of the Shaw Group, after a three-week jury trial before United States District Judge John W. deGravelles in the Middle District of Louisiana.
KELLY LIU, age 32, SALVADOR RUSSO, III, age 35, both of Baton Rouge, Louisiana, and VICTORY HO, age 38, of Morgan City, Louisiana, have been convicted of conspiracy to commit securities fraud (insider trading), in violation of Title 18, United States Code, Section 371, and securities fraud (insider trading), in violation of Title 15, United States Code, Sections 78j(b) and 78ff, and Title 17, Code of Federal Regulations, Sections 240.10b-5 and 240.10b5-1. Each faces a significant term of incarceration, fines, restitution, and supervised release following imprisonment. The defendants’ sentencing dates have not been set.
According to the evidence presented at trial in mid-2012, The Shaw Group (“Shaw”) was considering a potential merger opportunity. At the time, LIU was a Shaw employee working in the Financial Planning and Analysis Department. In late July 2012, Shaw and Chicago Bridge and Iron Company (“CB&I”) came to an agreement whereby CB&I acquired all outstanding shares of Shaw stock. The merger between the two companies was publicly announced on July 30, 2012 (“the public announcement”). As a result of the public announcement, Shaw’s stock price rose substantially.
As the evidence established, prior to the public announcement and through her job at Shaw, LIU obtained inside information that Shaw was being acquired by another company and passed the inside information to HO, through another individual, and to RUSSO, for their use in trading Shaw securities. Thereafter, HO and RUSSO allegedly purchased Shaw securities before the public announcement. HO sold his Shaw securities after the public announcement had caused Shaw’s stock price to rise, while RUSSO held his Shaw securities, all at the expense of Shaw shareholders and potential Shaw shareholders who were not privy to the inside information. HO made approximately $300,000 from their illegal insider trading activities.
United States Attorney Fremin stated, “The unanimous guilty verdicts returned by the jury today should send a strong message that corporate and securities fraud by insiders and others will not be tolerated and will be aggressively pursued by my office, together with our partners. LIU had inside information that she knew was incredibly valuable, and she violated her corporate duties—and federal securities law—by sharing that inside information with HO and RUSSO, knowing that they would all benefit from the unfair advantage they had over the rest of the market. I truly appreciate the efforts of our partners with the FBI, IRS-Criminal Investigations, the U.S. Secret Service, the Securities and Exchange Commission, and the Financial Industry Regulatory Authority, and the prosecutors and staff within this office, who worked tirelessly to uncover, investigate, and present the defendants’ sophisticated scheme to the jury. I thank the jury for their thoughtful consideration and hard work throughout this lengthy and complex trial.”
FBI Special Agent-in-Charge Eric J. Rommal stated, "Motivated by greed and self-enrichment, the defendants in today's court case utilized material, non-public information and dishonest tactics in order to manipulate the securities market. The jury's decision should send a clear message that anyone who uses insider information for profit will not be tolerated. The FBI New Orleans Field Office will continue to use all available resources to end this behavior. The FBI, in conjunction with the U.S. Attorney's Office, and our federal, state, and local partners, will investigate and prosecute all forms of white-collar crime in Louisiana."
U.S. Secret Service spokesperson Mason Brayman stated, “This case demonstrates the investigative capabilities of the U.S. Secret Service and the collaborative efforts of our law enforcement partners, specifically the U.S. Attorney’s Office for the Middle District of Louisiana, the Federal Bureau of Investigation, and the Criminal Investigative Division of the Internal Revenue Service."
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Baton Rouge offices of the FBI, Secret Service, and IRS-Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Chris Dippel, Patricia Jones, and Adam Ptashkin.
Three Indicted in Immigration Fraud Scheme that Exploited Immigrant Farmworkers by Charging Prohibited Fees for Visas, Living ExpensesRead the Press Release
LOS ANGELES – Three Southern California men were arrested today pursuant to a federal grand jury indictment alleging they participated in an immigration fraud scheme that, among other things, illegally charged Mexican nationals thousands of dollars to obtain H-2A work visas and additional money for expenses once they arrived in the United States.
The indictment alleges that Mexican farmworkers were charged illegal fees for transportation, room and board after the company arranging for the workers’ visas promised the United States Department of Labor and U.S. Citizenship and Immigration Services that the workers had not paid and would not have to pay for these expenses. In addition, the indictment alleges that the farmworkers were made to pay fees to obtain their visas, which is prohibited under the H-2A visa program.
The defendants arrested this morning are:
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Jorge Vasquez, 58, of Fontana, the owner of H-2A Placement Services, a farm labor recruiting company based in Rancho Cucamonga;
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Melquiades Jacinto Lara, 62, of Santa Paula, the owner of J&D Harvesting, which contracted workers to farms in Ventura County; and
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Ricardo Mendoza Oseguera, 39, of Santa Paula, the owner of Discoteca Mi Pueblito, a music and convenience store in Santa Paula, which redeemed vouchers given to workers for J&D Harvesting after deducting fees from the workers’ pay.
The H-2A visa program allows employers to hire foreign, short-term agricultural workers when the employer cannot find suitable workers in the United States. H-2A labor contractors provide foreign workers to farms and generally are responsible for recruiting, transporting and housing the foreign workers. Before the foreign workers can receive visas, several government agencies must certify the need for foreign workers and determine that foreign workers would not adversely impact workers already in the United States.
In addition to provisions designed to protect domestic workers, the H-2A program has rules designed to protect foreign workers from exploitation, including prohibitions from charging the foreign workers for government approvals, equipment needed to perform their jobs, transportation to and from the fields, and costs associated with housing.
As part of the scheme alleged in the indictment, Vasquez travelled to Mexico to recruit farmworkers, who were charged as much as $3,000 to obtain their H-2A visas.
In addition to illegally charging the foreign workers, Vasquez also allegedly made false promises to the workers about how long the visas would be valid and failed to tell the workers that they would be charged for housing, food and transportation. Vasquez is also alleged to have promised an H-2A visa to an undercover agent with the Labor Department’s Office of Inspector General who Vasquez believed was an undocumented individual working in the construction industry in Las Vegas and had no interest in working in the agricultural industry, in exchange for $3,500 to $4,000.
In relation to the costs being borne by the foreign workers, Vasquez and Jacinto allegedly filed documents with federal authorities that contained false statements in connection with their application for visas for 75 workers to harvest lemons, avocados and oranges. Investigators have reviewed USCIS records that indicate that Vasquez and Jacinto have filed petitions for more than 350 farmworkers since 2012.
The indictment charges Vasquez and Jacinto with conspiracy, three counts of mail fraud, one count of visa fraud, and one count of fraud in foreign labor contracting for allegedly telling foreign workers in 2013 that the H-2A visas would be valid for three years, when they knew the visas would expire later that year.
Jacinto and Mendoza are charged with one count of operating an unlicensed money transmitting business. Mendoza’s business served as a check-cashing and wire transfer service where the farmworkers would redeem vouchers or checks paid to them by Jacinto and send money internationally.
The three defendants named in the indictment are expected to be arraigned on the indictment this afternoon in United States District Court in downtown Los Angeles.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The mail fraud charges carry a statutory maximum sentence of 20 years in federal prison. The visa fraud count has a maximum sentence of 10 years in prison. The charges of conspiracy, fraud in foreign labor contracting and operating an unlicensed money transmitting business each carry maximum sentences of five years in prison.
The investigation into this immigration fraud scheme is being conducted by the United States Department of Labor - Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Diplomatic Security Services.
The case is being prosecuted by Special Assistant United States Attorney Stacey R. Fernandez of the Violent and Organized Crime Section.
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Tangipahoa Man Pleads Guilty to Conspiracy to File False Tax Returns Using Stolen IdentitiesRead the Press Release
A Tangipahoa Parish man pleaded guilty to one count of conspiracy to defraud the Internal Revenue Service, U.S. Attorney Duane A. Evans of the Eastern District of Louisiana and Principal Deputy Assistant Attorney Richard E. Zuckerman of the Justice Department’s Tax Division announced today.
According to the indictment, AARON DANIELS conspired with others to defraud the United States by submitting false tax returns that requested refunds. DANIELS obtained the names and social security numbers of people he was incarcerated with in the East Carroll Detention Center and provided that information to his co-conspirators to use to file false tax returns. In exchange for providing names and Social Security Numbers, DANIELS was paid by his co-conspirators.
DANIELS is scheduled to be sentenced on August 22, 2018, before United States District Court Judge Martin L.C. Feldman. He faces a statutory maximum sentence of five years in prison. He also could receive a period of supervised release, restitution, and monetary penalties at sentencing.
U.S. Attorney Evans and Principal Deputy Assistant Attorney Richard E. Zuckerman commended special agents of IRS Criminal Investigation and the United States Postal Inspection Service, who investigated the case and Assistant U.S. Attorney Hayden Brockett of the Eastern District of Louisiana and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting the case.
Thank You to Our Heroes in BlueRead the Press Release
When I was sworn in as U.S. Attorney, the first order I was given by U.S. Attorney General Jeff Sessions was to back our women and men in blue. The Department of Justice is committed to supporting law enforcement officers and celebrating the noble, essential, and challenging work they do.
One of the Attorney General’s favorite topics is a recent survey about what kids want to be when they grow up. According to the survey, “police officer” used to be the number 10 dream job for kids under the age of 12. Now, it is number three overall – and for boys it is number one.
That’s probably the best possible news we could have: more and more of our young people want to wear the badge.
The most important thing that any government does is protect the safety and rights of its citizens. Everything else depends on that.
That is the daily calling of police officers. Whenever something goes wrong or anyone is in distress, they are the ones who answer the call. They are the thin blue line standing in the breach between safety and lawlessness. They keep the peace, protect us from danger, and uphold the rule of law. We must never forget how fortunate we are that there are men and women who willingly dedicate their lives to this mission.
In 1962, President Kennedy proclaimed May 15 as National Peace Officers Memorial Day and the surrounding week as National Police Week. Each year at this time, we pay special recognition to those officers who have lost their lives in the line of duty for the safety and protection of others.
Since 1791, more than 22,000 law enforcement officers have made the ultimate sacrifice. At least 69 line of duty deaths have happened here in South Dakota since Territorial days. In terms of loss of life, no law enforcement entity in the State has sacrificed more than the Rapid City Police Department. Eight Rapid City officers have been killed in the line of duty.
The first occurred in 1885, when Rapid City Town Marshal Billy Wilson was shot and killed by three cowboys who had come to town. Rapid City had an ordinance prohibiting the carrying of weapons inside city limits. When Marshal Wilson attempted to disarm the men inside the Horse Market Saloon, they opened fire, leaving him dead for simply upholding his duty to enforce the law.
Our most recent tragedy, one that still resonates throughout the community, occurred on the afternoon of August 2, 2011. Officers Nick Armstrong and Ryan McCandless were responding to a call about four suspects on the corner of East Anamosa and Greenbriar Streets. One of the suspects pulled out a concealed handgun and opened fire. Tragically, Officers Armstrong and McCandless received fatal wounds. A third, Officer Tim Doyle, also was shot but thankfully survived and is still on the beat today.
It is fitting and right that we join together to honor our fallen heroes and pay our respect to their loved ones. Any loss of life is one too many. But it is encouraging that the number of officers killed in the line of duty nationally declined last year to its second lowest level in more than half a century.
We celebrate the contributions of police officers, recognizing their hard work and dedication in keeping our communities safe. The women and men of law enforcement – whether federal, state, local, or tribal – should never doubt that they have our deepest admiration and gratitude.
This week, and every week, let us remember to thank the Blue.
Sugar Land Nurse Convicted in $3.5 Million Healthcare Fraud SchemeRead the Press Release
HOUSTON – A federal jury has convicted a 51-year old Sugar Land nurse of conspiracy to commit health care fraud, six counts of health care fraud and conspiracy to violate the anti-kickback statute, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for less than six hours following a three-day trial before convicting John Dubor.
Dubor owned and operated Care Committers Health Services home health agency in Richmond. During the three-day trial, the jury heard evidence that Dubor paid marketers and group home owners for Medicare beneficiary information and subsequently billed Medicare and Medicaid for home health services for which the beneficiaries did not qualify and/or did not receive.
Additionally, Dubor personally falsified home health patient assessment forms documents to make the beneficiaries appear sicker on paper to receive higher reimbursement rates from Medicare. Dubor also instructed his employees to falsify home health certifications and forge physician signatures. The beneficiaries, who all resided in Nacogdoches, had no recollection of ever being treated by the Houston physicians listed on their home health orders. Medicare paid Dubor approximately $3.5 million.
Dubor’s co-conspirator, Lorine Whitaker, 59, of Nacaogdoches, had previously pleaded to conspiracy to violate the anti-kickback statute and is awaiting sentencing.
Dubor faces up 10 years in federal prison for each count of health care fraud and up to five years for conspiracy to violate the anti-kickback statute. Previously released on bond, Dubor was immediately taken into custody following the trial pending that hearing, set for Sept. 7, 2018, before U.S. District Judge Melinda Harmon.
The Department of Health and Human Services – Office of Inspector General’s Houston Field Office and the Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Special Assistant U.S. Attorney (AUSA) Justin Blan and AUSA Attorney Tina Ansari are prosecuting the case.
Suburban Man Sentenced to 16 Years in Prison for Leading Chicago-Area Cell of International Drug Trafficking OrganizationRead the Press Release
CHICAGO — A federal judge in Chicago has sentenced a suburban man to 16 years in prison for leading a Chicago-area cell of an international drug trafficking organization.
JESUS SALGADO ran a stash house in Bensenville where heroin and cash from drug sales were stored. He also sold drugs in the Chicago area. Before meeting with customers, Jesus Salgado would often pick up the heroin from the stash house, and then drop off the proceeds at the house after the sales.
Jesus Salgado was charged as part of “Operation Over the Top,” a federal probe that spanned more than two years and disrupted a Mexico-to-Chicago drug pipeline. Authorities seized four kilograms of heroin from the Bensenville stash house and shut it down as part of the investigation. The probe was led by the U.S. Drug Enforcement Administration and conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF).
Jesus Salgado, 25, of Bensenville, pleaded guilty last year to a drug conspiracy charge. U.S. District Judge John Robert Blakey imposed the 16-year sentence Wednesday in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Brian M. McKnight, Special Agent-in-Charge of the Chicago Field Division of the DEA; and James M. Gibbons, Special Agent-in-Charge of the Chicago Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
“The streets of this city are made immeasurably more dangerous because of the drug trade,” Assistant U.S. Attorneys Kelly M. Greening, Misty Wright and John Cooke argued in the government’s sentencing memorandum. “People like defendant, who regularly supplied kilogram quantities of heroin and cocaine to wholesale buyers, perpetuate the drug trafficking crisis in Chicago and all that goes with it, including addiction, crime, and violence.”
Jesus Salgado’s drug-dealing operation was allegedly overseen by his father, LORENZO SALGADO, who resides in Mexico but communicated with his son via phone, according to the indictment filed against both men. Lorenzo Salgado allegedly directed the narcotics sales and the subsequent transportation of the proceeds to Mexico. Lorenzo Salgado is charged with drug conspiracy and is considered a fugitive.
In his written plea agreement, Jesus Salgado stated that he operated the Bensenville stash house with his girlfriend, RUBY JOY BUENAVENTURA, 27, of Chicago, and that he and Buenaventura delivered drugs to customers in the Chicago area. One of the deals occurred in a grocery store parking lot in Bensenville on May 3, 2016, when Jesus Salgado delivered two kilograms of heroin to SERGIO AREVALO-GOMEZ, 23, of Chicago.
Arevalo-Gomez pleaded guilty to a drug distribution charge and was sentenced last year to four years in prison. Buenaventura also pleaded guilty to a drug charge and was sentenced last year to three years in prison.
Springfield Man Sentenced for Enticing a Minor for SexRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man has been sentenced in federal court for attempting to entice a minor to engage in illicit sexual activity.
Mark Damon Dunn, 32, of Springfield, was sentenced by U.S. District Judge Beth Phillips on Wednesday, May 16, 2018, to 12 years in federal prison without parole. The court also sentenced Dunn to 10 years of supervised release following incarceration.
Dunn, who pleaded guilty on Dec. 28, 2017, admitted that he used the Internet and a cell phone to attempt to entice a minor victim to engage in illicit sexual activity from June 1, 2016, to July 13, 2016.
According to court documents, Dunn attempted to coerce a 15-year-old victim to engage in sexually explicit activity on multiple occasions. He repeatedly asked the victim to engage in sexually explicit conduct and to send him videos and/or images of herself engaged in sexually explicit conduct. Dunn also sent the victim nude images of himself.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI, Southwest Missouri Cyber Crimes Task Force, and the Springfield Police Department.
Project Safe Childhood
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."
Sioux City Man Sentenced to Prison for Possession of MethRead the Press Release
A man who fled from law enforcement, damaging crops and a fence, was sentenced May 17, 2018, to six years in federal prison.
Daniel Lester Frye, 45, from Sioux City, Iowa, received the prison term after a January 17, 2018, guilty plea to possession with intent to distribute methamphetamine. Frye was previously convicted of possessing with intent to distribute methamphetamine in the Iowa District Court for Woodbury County in 1996.
Evidence at the sentencing hearing showed that on August 11, 2017, law enforcement was dispatched to the Winnavegas Inn after receiving a report from hotel staff of found property in a hotel room. Hotel staff informed law enforcement that the cleaning staff found drugs and drug-related items the morning after Frye, who had rented the room, checked out. While securing the evidence, which included four individual baggies of methamphetamine, one individual baggie of cocaine, and drug paraphernalia, Frye walked into the hotel. After seeing law enforcement, Frye took off running and got in his car and left. Law enforcement pursued Frye’s car in a high speed chase. Frye did not stop at a stop sign and drove through two fields of crops. Frye admitted to possessing over five grams of actual (pure) methamphetamine with the intent to distribute some or all of it to another person or persons.
Frye was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Frye was sentenced to 72 months’ imprisonment. He was ordered to make $2,300 in restitution to the victims of the crops he damaged while fleeing from law enforcement. He must also serve an 8-year term of supervised release after the prison term. There is no parole in the federal system.
Frye is being held in the United States Marshal’s custody until he 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 17-4073.
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Schenectady Man Pleads Guilty to Distributing Crack CocaineRead the Press Release
ALBANY, NEW YORK – William Hale, a/k/a “Man,” age 44, of Schenectady, New York, pled guilty today to distributing crack cocaine.
The announcement was made by United States Attorney Grant C. Jaquith and Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Hale admitted that he distributed more than 28 grams of cocaine base (a/k/a crack cocaine) on November 18, 2016.
Hale faces at least 10 years and up to life in prison, as well as a term of post-imprisonment supervised release of at least 8 years and up to life, when he is sentenced by Senior United States District Judge Gary L. Sharpe on September 10, 2018. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including the Schenectady Police Department. This case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Red Scaffold Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Red Scaffold, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury to an Intimate Partner was sentenced on May 14, 2018, by U.S. District Judge Roberto A. Lange.
Tyrell Chasing Hawk, age 32, was sentenced to 7 months in custody, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Chasing Hawk was indicted by a federal grand jury on August 16, 2017. He pled guilty on February 5, 2018.
The conviction stemmed from an incident on May 9, 2017, when Chasing Hawk assaulted his intimate partner by pulling on her hair and repeatedly punching her in the face.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Chasing Hawk was immediately turned over to the custody of the U.S. Marshals Service.
Red Lake Man Sentenced to 236 Months in Prison for MurderRead the Press Release
United States Attorney Gregory G. Brooker announced the sentencing of JOSHUA FRANCIS HILL, 20, to 236 months in prison for the murder of a minor victim on the Red Lake Indian Reservation. HILL, who pleaded guilty on January 19, 2018, was sentenced on May 15, 2018, before Senior Judge Paul A. Magnuson in U.S. District Court in Saint Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, on June 25, 2017, law enforcement officers responded to a call reporting a deceased male subject at a private residence on the Red Lake Indian Reservation. When law enforcement officers arrived on the scene, they found the body of a deceased juvenile male who was the apparent victim of a fatal gunshot wound.
According to the defendant’s guilty plea and documents filed in court, on the day of the shooting, HILL was feuding with the victim over a stolen Playstation 3. HILL shot and killed the victim with a .308 rifle that HILL had in his possession leading up to the shooting. Following the shooting, on June 27, 2017, HILL asked two individuals to dispose of the rifle for him. Law enforcement agents recovered the rifle, which was consistent with a witness description of the rifle HILL was seen handling the day of the shooting.
This case was the result of an investigation conducted by the Red Lake Tribal Police Department and the FBI Headwaters Safe Trails Task Force.
Assistant U.S. Attorney Clifford B. Wardlaw prosecuted this case.
Defendant Information:
JOSHUA FRANCIS HILL, 20
Red Lake, Minn.
Convicted:
- Murder in the second degree, 1 count
Sentenced:
- 236 months in prison
- Five years of supervised release
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Raleigh County Teenager Pleads Guilty to Federal Firearm Theft ChargeRead the Press Release
BECKLEY, W.Va. – A Raleigh County teenager who stole twenty-four firearms from a federally licensed dealer pled guilty today to a federal gun charge, announced United States Attorney Mike Stuart. Dillon Jackson, 18, entered his guilty plea to stealing firearms from the premises of a person licensed to engage in the business of dealing in firearms. U.S. Attorney Stuart commended the investigative efforts of the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Raleigh County Sheriff’s Department, and the Beckley Police Department.
“Stealing firearms to trade them for drugs guarantees the guns are being put in the wrong hands for the purpose of criminal activity,” said United States Attorney Mike Stuart. “We are aggressively prosecuting these cases to the fullest extent of the law.”
Jackson admitted that in the early morning hours of July 11, 2017, he and an accomplice, used a crow bar to break the glass door of a federally licensed firearm dealer near Fairdale, West Virginia. Jackson admitted to entering the store with the accomplice and stealing pistols and rifles that were in the inventory of the licensed dealer. In total, Jackson and the accomplice stole twenty-four guns. Jackson further admitted to trading the stolen guns for money and drugs. At least one of the firearms stolen was capable of receiving a high capacity magazine.
Jackson faces up to 10 years in federal prison when he is sentenced on August 22, 2018. Assistant United States Attorneys Timothy D. Boggess and Clint Carte are responsible for the prosecution. The plea hearing was held before United States District Judge Irene Berger.
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.
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Pittsburgh Man Conspired to Distribute Crack CocaineRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, has pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Jerome Sowell, 31, pleaded guilty before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the Court was advised that from November 2015 to May 2016, Sowell conspired with others to distribute and possess with intent to distribute crack cocaine.
The law provides for a maximum total sentence of up to 20 years’ imprisonment, a $1,000,000 fine, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Cindy K. Chung and Shanicka L. Kennedy are prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the successful prosecution of Sowell. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Pennsylvania Office of the Attorney General, Ambridge Police Department, New Brighton Police Department, Beaver Police Department, Aliquippa Police Department, Moon Township Police Department, Wilkinsburg Police Department, West Mifflin Police Department, Allegheny County Police Department, Duquesne Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Physician Sentenced of Conspiracy to Pay and Receive Illegal KickbacksRead the Press Release
JOBIE CREAR, M.D., (CREAR), age 67, of New Orleans, Louisiana, was sentenced in federal court today before U.S. District Judge Sarah S. Vance, announced U. S. Attorney Duane A. Evans.
U.S. District Judge Sarah S. Vance sentenced CREAR to eight (8) months imprisonment, followed by ten (10) months of home confinement, three (3) years of supervised release, and restitution in the amount of $810,556.00 to be paid to Medicare.
On December 12, 2016, CREAR, who operated Comprehensive Nursing and Home Health Service, Inc., (Comprehensive) was charged in a Bill of Information for illegally paying recruiters to bring Medicare beneficiaries to Comprehensive causing a loss to Medicare in the amount of $810,556.
On April 7, 2017, CREAR plead guilty to conspiracy to pay and receive illegal kickbacks in violation of Title 18, United States Code, Section 371.
The investigation was conducted by Special Agents of the Federal Bureau of Investigation. The case is being prosecuted by Criminal Division Chief Patrice Harris Sullivan.
North Carolina Man Sentenced to 121 Months -- More than 10 Years -- in Federal Prison for Attempted Enticement of a MinorRead the Press Release
CHARLESTON, W.Va. – A North Carolina man was sentenced today to spend 121 months – more than 10 years -- in federal prison for a federal sex crime involving a minor, announced United States Attorney Mike Stuart. Timothy Sean Coogle, 46, of Lexington, previously pled guilty to attempted enticement of a minor to engage in sexual activity. U.S. Attorney Stuart commended the investigative efforts of the Federal Bureau of Investigation Violent Crimes Against Children Task Force, the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, and the FBI in North Carolina.
“These heinous crimes warrant significant penalties,” said United States Attorney Mike Stuart. “Sexual predators like Coogle that prey on our children need to be behind bars for a long time.”
Coogle admitted that from August 12, 2017, through September 22, 2017, he used his cell phone and the Internet to attempt to persuade, induce, and entice a minor residing in the Southern District of West Virginia to engage in sexual activity. Specifically, Coogle admitted that he sent messages to a 13-year-old minor female, commenting on a photo of her. The minor’s mother discovered messages from Coogle and contacted law enforcement. Soon after, Coogle began engaging in sexually explicit conversation with a person he believed to be the minor, but was actually an undercover officer. He additionally requested that the person he believed to be the minor send him sexually explicit photos and video footage, and he also sent a sexually explicit video. Coogle admitted that he engaged in all of this communication in order to persuade the person he believed to be the minor to engage in sexual activity when she visited North Carolina.
Following release from prison, Coogle will be on federal supervised release for a period of 25 years and will be required to register as a sex offender.
Assistant United States Attorney Jennifer Rada Herrald was in charge of the prosecution. The sentencing hearing was held before United States District Judge John T. Copenhaver, Jr.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Nigerian National Charged in Phishing Scheme that Victimized Groton School EmployeesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, announced that a federal grand jury in New Haven returned an indictment today charging OLUKAYODE IBRAHIM LAWAL, 35, a citizen of Nigeria residing in Smyrna, Georgia, with fraud and identity theft offenses stemming from a scheme to obtain the personal identifying information of school employees in Connecticut and elsewhere.
On May 9, 2018, LAWAL was arrested on a federal criminal complaint at his residence. He appeared before a U.S. magistrate judge in Atlanta and was ordered detained pending his transfer to the District of Connecticut.
As alleged in the charging documents, special agents from the FBI’s cybercrime squad in New Haven and the IRS have been investigating “phishing” emails that were sent to various school districts in Connecticut last year. In March 2017, an employee of the Groton Public Schools received an email that appeared to be sent by another Groton school system employee. The email contained a request to send W-2 tax information for all employees of the school system. The recipient of the email responded by sending copies of the W-2 information for approximately 1,300 Groton Public Schools employees. After the W-2 information was emailed, approximately 100 suspicious Forms 1040 were filed electronically with the IRS in the names of victims of the Groton phishing scheme. The 100 tax returns claimed tax refunds totaling $491,737. Approximately three of the returns were processed, and $23,543 in fraudulently-obtained funds were electronically deposited into various bank accounts.
It is alleged that LAWAL controlled or used certain email accounts involved in this phishing scheme, and that he participated in the scheme to obtain the Groton school system employees’ personal identifying information and use it for personal gain.
The indictment charges LAWAL with one count of conspiracy to commit wire fraud and one count of wire fraud, offenses that carry a maximum term of imprisonment of 20 years. The indictment also charges LAWAL with one count of aggravated identity theft, an offense that carries a mandatory consecutive term of imprisonment of at least two years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
It is alleged that LAWAL entered the U.S. on a visitor’s visa on November 24, 2016, and failed to depart on his scheduled departure date of December 1, 2016.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and Stephen B. Reynolds.
U.S. Attorney Durham thanked the FBI and IRS in Atlanta, and the U.S. Attorney’s Office for the Northern District of Georgia, for their valuable assistance in this matter.
New Orleans Men Sentenced on Gun and Carjacking ChargesRead the Press Release
U.S. Attorney Duane A. Evans announced today that RODNEY BROWN, age 23, and MICHAEL PORTIS, 27, both of New Orleans, were sentenced today after previously pleading guilty to carjacking-related charges. Previously, BROWN pled guilty to carjacking and PORTIS pled guilty to brandishing a firearm during and in relation to a carjacking.
U.S. District Judge Carl J. Barbier sentenced BROWN to 78 months of incarceration, to be followed by three years of supervised release. Judge Barbier sentenced PORTIS to 120 months of incarceration, to be followed by five years of supervised release.
According to court documents, on April 24, 2016, at approximately 2:29 a.m., two females were carjacked in the driveway of a house located on N. Derbigny Street. The victims stated that they exited the house and entered a vehicle that was parked in the driveway of that location. PORTIS and BROWN, dressed in black and brandishing guns, approached from opposite sides of the vehicle. BROWN tapped on the window of the vehicle with a gun and stated, “You move I’ll shoot.” A third suspect stood nearby and acted as a lookout. The two females exited the car and the suspects entered and drove away. A short time later, the car was returned and left in the driveway.
One of the victims told the police officers that one of the suspects had facial tattoos. Officers canvassed the area, set up a perimeter and searched the block. Officers located PORTIS and two other subjects hiding in high bush nearby. PORTIS had facial tattoos and was wearing dark pants and a dark, hooded sweatshirt, consistent with the description given by the victims. The victim positively identified PORTIS as one of the gunmen. BROWN was not apprehended on the date of the incident, but was later identified and implicated on jail phone call recordings.
U.S. Attorney Evans praised the work of the ATF New Orleans Division Office, New Orleans Police Department and Louisiana State Police in investigating this matter. Assistant United States Attorneys Nolan D. Paige and Shirin Hakimzadeh were in charge of the prosecution.
New Mexico Man Sentenced to 15 Years in Prison for Directing Computer Attacks Against Websites of Dozens of Victims and Felon-In-Possession ChargesRead the Press Release
A New Mexico man was sentenced today in St. Paul, Minnesota, for directing computer attacks against the websites of his prior employers, business competitors and public services, and felon-in-possession of a firearm charges. Acting Assistant Attorney General John P. Cronan of the Department of Justice’s Criminal Division; United States Attorney Gregory G. Brooker of the District of Minnesota; and Special Agent in Charge Jill Sanborn of the Federal Bureau of Investigation-Minneapolis Field Office made the announcement.
John Kelsey Gammell was sentenced to serve 180 months in prison by U.S. District Judge Wilhelmina M. Wright of the District of Minnesota. Restitution to the victims of his computer attacks will be determined at a later date. Gammell pleaded guilty on Jan. 17, to one count of conspiracy to cause intentional damage to a protected computer and two counts of being a felon-in-possession of a firearm.
According to admissions made in connection with his plea, from at least in or about July 2015 through in or about March 2017, Gammell engaged in a campaign of distributed denial of service (DDoS) attacks on websites throughout the United States. A DDoS attack is a malicious attempt to disable or interrupt service to a computer or website, usually by causing large amounts of Internet traffic to be directed to the computer or website. Gammell directed DDoS attacks at a number of victims’ websites, including websites operated by companies he used to work for, companies that declined to hire him, competitors of his business, and websites for law enforcement agencies and courts, among others.
Gammell admitted that he caused DDoS attacks by using computer programs on his own computers, as well as by directing “DDoS-for-hire” companies from which he purchased services to launch the DDoS attacks. Gammell purchased subscriptions to multiple DDoS-for-hire companies, including VDoS, CStress, Inboot, Booter.xyz, and IPStresser. He initiated attacks using these DDoS-for-hire companies against dozens of victims, including but not limited to Washburn Computer Group, the Minnesota State Courts, Dakota County Technical College, Minneapolis Community and Technical College, the Hennepin County Sheriff’s Office, and others. Gammell took a variety of steps to avoid detection and circumvent his victims’ DDoS attack mitigation efforts, such as using IP address anonymization services to mask his identity and location, using cryptocurrency in payment for DDoS-for-hire services, using multiple DDoS-for-hire services at once to amplify his attacks, using spoofed emails to conceal his conduct, and using encryption and drive-cleaning tools to conceal digital evidence of his conduct on his computers.
Gammell, who is a convicted felon, also admitted that he possessed parts for use in the building of AR-15 assault rifles, upper and lower receivers, a pistol grip, a trigger guard, 15 high-capacity magazines, a buttstock, a buffer tube, and 420 rounds of 5.56 x 45mm full metal jacket rifle ammunition in Colorado, where he worked. He further admitted that he possessed a Heckler & Koch P2000 handgun, and a Springfield Armory model 1911-A1, .45 caliber handgun, as well as hundreds of rounds of ammunition in New Mexico, where he resided.
This case was investigated by the FBI’s Minneapolis Field Office. Trial Attorney Aaron R. Cooper of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Timothy C. Rank of the District of Minnesota are prosecuting the case. The U.S. Attorney’s Offices for the District of Colorado and the District of New Mexico also provided substantial assistance in this matter.
New Jersey Man Sentenced to 54 Months Imprisonment for Conspiracy to Distribute Heroin and Crack Cocaine in Rutland CountyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Richard Torruellas (a.k.a. “Scoob”), 23, of Jersey City, New Jersey, was sentenced today to 54 months imprisonment by United States District Court Chief Judge Geoffrey W. Crawford sitting in U.S. District Court in Rutland, Vermont. Chief Judge Crawford also sentenced Torruellas to a three-year period of supervised release by the U.S. Probation Office, which will begin when Torruellas is released from prison. Finally, the Court ordered the forfeiture of $3,349 of drug proceeds seized from Torruellas at the time of his arrest. Torruellas previously pled guilty to conspiracy to distribute heroin and cocaine base and agreed to a 54-month sentence. The maximum sentence for this crime is 20 years imprisonment.
According to court records, Torruellas distributed a significant amount of heroin and crack cocaine in Rutland County from October 2016 to March 16, 2017, when he was arrested. Torruellas distributed these drugs with codefendant Francesco Escribano (a.k.a. “Brisco”), 35, also from New Jersey. Torruellas and Escribano were known in Rutland County drug circles as the “Jersey Boys.” Escribano also pled guilty to the conspiracy but has not yet been sentenced.
According to the government, Torruellas and Escribano dealt some of their drugs while staying with codefendant Wayne Oddo who lived at Morse Hollow Road in Poultney. In exchange for Oddo letting them stay there, Torruellas and Escribano would give Oddo small, personal use amounts of drugs. When Oddo was arrested on March 15, 2017, he admitted that he moved the body of Alexandra Rooker, 26, who had overdosed a week earlier, to his shed and had not called anyone about her death.
According to the government, Torruellas and Escribano also periodically used the residence of Richard Webster on Harrison Avenue in West Rutland as a base station from which to deal heroin and cocaine base. Both Oddo and Webster previously pled guilty to violating the federal law, commonly referred to as the “crack-house statute,” which prohibits making available a place, such as a residence, for the purpose of manufacturing, storing, distributing, or using any controlled substance. This statute imposes a maximum sentence of twenty years imprisonment, up to a $500,000 fine, and up to three years of supervised release to begin after any term of imprisonment is served. Oddo and Webster are awaiting sentencing. Webster is participating in the Federal Drug Court program in Rutland.
These cases were investigated by the Vermont State Police Drug Task Force, the Rutland City Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Joseph Perella is prosecuting these cases on behalf of the United States. Richard Torruellas is represented by Robert Behrens, Esq. of Burlington. Wayne Oddo is represented by Steven Barth, Esq., of the Federal Public Defenders Office. Richard Webster is represented by David Williams, Esq. of Burlington.
More Sentences Imposed in Robstown-Based Heroin ConspiracyRead the Press Release
CORPUS CHRISTI, Texas - Two more members of a massive heroin and money laundering conspiracy have been ordered to federal prison, announced U.S. Attorney Ryan K. Patrick. Louie Molina, 36, and Jesus Leal Jr., 34, both of Robstown, previously pleaded guilty to possession with intent to distribute more than one kilogram of heroin.
Today, U.S. District Judge Nelva Gonzales Ramos ordered each man to serve 20 years in federal prison to be followed by 10 years of supervised release. In handing down the sentences, the court noted the large amount of heroin distributed in this conspiracy and its devastating impact on the community and families.
The court learned during the pleas of guilty in this case that the defendants had been part of a significant, long-term heroin distribution ring operating in Robstown. Evidence also showed that on Oct. 4, 2017, authorities seized approximately a kilogram of heroin and almost $100,000 during the arrests related to this investigation. The overall scope of the conspiracy was estimated to be between at least 10-30 kilograms of heroin. The conspiracy operated, according to the evidence presented, between April 2016 and October 2017.
Three others were sentences last week. Enrique Gutierrez Jr., 31, of Sandia, received 13 years for the same heroin conspiracy as well as conspiracy to launder money. Sakhone Chanrattana, 35, of Jarrell, and Tim Molina, 34, of Robstown, had each pleaded guilty to possession with the intent to distribute heroin and received 97 and 18 months, respectively.
Sentencings for Jesus Gutierrez, 46, and Renee Gutierrez, 37, both of Corpus Christi, are set for Aug. 8, 2018.
The Drug Enforcement Administration and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Jon Muschenheim is prosecuting the case.
Monroe Township, New Jersey, Man Admits Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man today admitted possessing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Sam Cynamon, 67, of Monroe Township, New Jersey, and formerly of Springfield, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an indictment charging him with one count of possession of child pornography.
According to documents filed in the case and statements made in court:
On July 10, 2017, law enforcement officers lawfully obtained multiple computers and electronic storage media belonging to Cynamon from his residence. The computers and electronic storage media contained multiple images and videos of child pornography, including images of prepubescent children being sexually abused.
In March 2005, Cynamon pleaded guilty in the District of New Jersey to possession of child pornography and was sentenced to 27 months in prison. Because of his prior conviction, the count of possession of child pornography to which Cynamon pleaded guilty today carries a mandatory minimum potential penalty of 10 years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. Sentencing is scheduled for Sept. 19. 2018.
U.S. Attorney Carpenito credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Brian Michael in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Danielle Alfonzo Walsman, Chief of the U.S. Attorney’s Office’s Public Protection Unit in Newark.
Defense counsel: Robert Degroot Esq., Newark
Missouri Man Lands 15-Year Prison Sentence for Southern Illinois Methamphetamine OffenseRead the Press Release
On May 17, 2018, Derek L. Sumpter, a/k/a "Doucher," 31, of Oak Ridge, Missouri, was sentenced to federal prison for his role in a methamphetamine offense, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Sumpter, who had previously pled guilty to a one-count second superseding indictment charging conspiracy to distribute more than 50 grams of methamphetamine, was sentenced to 188 months of imprisonment to be followed by four years on supervised release. He was also fined $400.00. The indictment alleged that the offense occurred between 2015 and April 2017, in Perry, Randolph, Monroe, and St. Clair Counties.
Evidence at the plea and sentencing hearings established that Sumpter was involved with numerous other persons in the distribution of ice. Ice is methamphetamine which has a purity level of at least 80%. At sentencing, the district court found that Sumpter was responsible for the distribution of over 423 grams of ice. Five co-defendants have already been sentenced to prison for their roles in the methamphetamine conspiracy. Four additional co-defendants have pled guilty and are awaiting sentencing.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Monroe County Sheriff’s Office, St. Clair County Sheriff’s Office Drug Tactical Unit, Metropolitan Enforcement Group of Southern Illinois, Chester Police Department, Coulterville Police Department, Belleville Police Department, Lenzburg Police Department, Perry County (Missouri) Sheriff’s Office, and Drug Enforcement Administration. The Randolph County States Attorney’s Office and the Monroe County States Attorney’s Office also assisted in the investigation.
Midlands Reentry Job Fair & ExpoRead the Press Release
Columbia, South Carolina ----– The United States Attorney’s Office, the South Carolina Department of Probation, Parole and Pardon Services; SC Department of Employment and Workforce; SC Works; SC Vocational Rehabilitation; SC Department of Social Services; and the US Probation Office are continuing their statewide partnership to help individuals with prior criminal backgrounds secure employment.
The Second Annual Central Reentry Job Fair & Expo will be held Wednesday, May 23, 2018, from 10:00 am to 1:00 pm at the Dutch Square Mall, located at 421 Bush River Road, Columbia, SC 29210.
This fair, which supports job seekers in the Midlands, is one in a series of fairs held annually, including in Florence, the Upstate, and the Lowcountry. These job fairs are specifically designed for South Carolinians with a criminal history. The aim is to assist these South Carolinians with obstacles they face when they return home after incarceration, including employment, transportation, certifications needed for skilled labor, and other keys to living a law-abiding life.
“We are excited to work with our federal and state partners on this second year of reentry fairs,” said U.S. Attorney Beth Drake. “Last year, we welcomed hundreds of job seekers and enthusiastic employers, many of whom were able to offer employment opportunities on site.”
The fair and expo will include area employers and other organizations who support, and provide resources for, returning citizens. Any interested employers or vendors should inquire with Diana Goldwire at (864) 315-9751 or [email protected].
U.S. Attorney Drake added, “Supporting the formerly incarcerated in their search for stable jobs and lives is key to crime prevention and community safety. Rehabilitation is one of the key goals of criminal justice. As President Trump said, ‘We’ll be very tough on crime, but we will provide a ladder of opportunity to the future...[We are] committed to helping former inmates become productive, law-abiding members of society.’”
For more from President Trump on the importance of helping inmates get jobs upon release and thereby giving those with a criminal record a second chance, please see the below links.
https://www.whitehouse.gov/presidential-actions/president-donald-j-trump-proclaims-april-2018-second-chance-month/
https://www.whitehouse.gov/briefings-statements/remarks-president-trump-meeting-prison-reform/
Professional dress is required. Job seekers should inquire with Robbie Carroll of the US Probation Office at [email protected] or George Whitehead at (803) 734-9143, (803) 667-1258 or [email protected] if they have any questions about the event.
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Michigan Home Health Agency Owner Pleads Guilty to Health Care Fraud Charges for Role in $8 Million Medicare Fraud SchemeRead the Press Release
The owner of a Michigan home health agency pleaded guilty today to fraud charges for his role in a scheme involving approximately $8 million in fraudulent Medicare claims for home health services that were procured through the payment of illegal kickbacks.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Matthew J. Schneider of the Eastern District of Michigan, Special Agent in Charge Timothy Slater of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Zahir Shah, 48, of West Bloomfield, Michigan, pleaded guilty to one count of conspiracy to commit health care fraud and wire fraud and one count of conspiracy to pay and receive kickbacks in connection with Medicare beneficiaries before U.S. District Judge Avern Cohn of the Eastern District of Michigan. Sentencing will be scheduled before Judge Cohn.
As part of his guilty plea, Shah admitted that he submitted false certifications to enroll and stay enrolled as a Medicare provider. Shah further admitted that he paid illegal kickbacks to recruiters in exchange for Medicare beneficiary referrals and billed Medicare for claims procured through these illegal kickbacks. According to court documents, Shah caused a loss of approximately $8 million to the Medicare program by submitting false and fraudulent claims to Medicare from 2007 through 2017.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. Trial Attorneys Rebecca Szucs and Howard Locker of the Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Mexican National Found Guilty of Drug Trafficking and Illegal ReentryRead the Press Release
MACON: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Eulalio Martinez, age 38, a citizen of Mexico residing in Alma, Georgia, has been found guilty of Possession with Intent to Distribute Methamphetamine 4,923 grams of pure methamphetamine (Count 1) and Illegal Reentry (Count 2), following a four-day jury trial before Senior District Court Judge Hugh Lawson in Macon. Mr. Martinez was indicted on the charges on June 14, 2017.
Evidence presented at trial proved that, on May 1, 2016, a confidential source (CS) in Coffee County, Georgia, informed law enforcement agents that she had been approached by Martinez to drive him to Atlanta to pick up a quantity of crystal methamphetamine.
On May 2, 2016, using a tracking device, agents monitored the vehicle as it traveled hours north to Atlanta where it stopped for a 90 minutes at a convenience store. The CS indicated a young Hispanic male met Martinez at the store and directed them to an apartment complex near I-85 and Shallowford Road. Shortly after pulling into a parking space, the young male got out of the van and retrieved a cardboard box from a vehicle that pulled in next to the van. The young male placed the box into the CS’s vehicle and the CS drove off. During the drive back to South Georgia, the CS overheard phone conversations Mr. Martinez had with Mexican sources indicating he was in possession of the methamphetamine.
At about 10:42 am, agents stopped the vehicle and took the passenger, Mr. Martinez, into custody. A search of the vehicle produced a box covered by a black jacket behind the driver’s seat in which there were three (3) clear containers, which held a total of 11.6 pounds of crystal methamphetamine.
The Illegal Reentry charge was a result of Mr. Martinez’s being found in Tift County, Georgia on May 2, 2016, having been deported and removed from the United States on October 4, 2012 and not receiving the consent of the Attorney General or the Secretary for Homeland Security to re-apply for admission to the country.
Mr. Martinez faces a maximum sentence of forty (40) years in prison, a $5 million fine, or both. His sentencing hearing will be held in August following a pre-sentence investigation and report.
“This case involves two of the top priorities of the Department of Justice and of my office, the sale of illegal drugs and the violation of our immigration laws. Methamphetamine is a scourge on the Middle District of Georgia. Mr. Martinez was not only in this country illegally, but chose to further break its laws by illegally distributing this highly addictive and extremely dangerous drug,” said United States Attorney Peeler.
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division stated, “The success of this investigation was possible because of unified law enforcement cooperation and the subsequent prosecution by the U.S. Attorney’s Office. As a result of a trial verdict, this Crystal Methamphetamine trafficker will now face a substantial monetary fine and significant prison time for the crimes he committed.”
This case was investigated by the Coffee County Sheriff’s Office, the Tift County Sheriff’s Office and the U.S. Drug Enforcement Administration. Assistant United States Attorneys Sonja B. Profit and Tamara Jarrett prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Medical Supply Executive Sentenced to 36 Months in Prison for Her Role in A $30 Million Scheme to Defraud Medicare and MedicaidRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that MARINA BURMAN was sentenced today to 36 months in prison. BURMAN, the former president of a medical supply company, submitted approximately $3.4 million in fraudulent bills to the New York State Medicaid Program, falsely claiming to have dispensed adult diapers and other medical supplies that were not medically necessary and, in many cases, not dispensed at all. BURMAN was sentenced today by United States District Judge Lorna G. Schofield.
U.S. Attorney Geoffrey S. Berman said: “The Medicare and Medicaid programs are intended to provide essential medical care to the elderly and the needy, not to line the pockets of fraudsters and opportunists. Ultimately, the real victims of Marina Burman and her co-conspirators’ crimes are U.S. taxpayers and needy patients with legitimate medical needs. Today’s sentence sends a strong message that those who cheat Medicare and Medicaid will not go unpunished.”
According to the Indictment and other documents filed in federal court, as well as statements made during BURMAN’s plea proceeding and sentencing:
Between 2007 and 2013, BURMAN’s ex-husband and co-defendant, Aleksandr Burman, owned and operated six medical clinics in Brooklyn (the “Clinics”) that fraudulently billed Medicare and Medicaid approximately $30 million for medical services and supplies that were medically unnecessary or otherwise fraudulently billed. Under New York State law, medical clinics must be owned and operated by a medical professional. To circumvent this requirement, Aleksandr Burman, who was not a medical professional, hired doctors to pose as the nominal owners of each of the Clinics. As part of the fraud, the doctors also signed medical charts falsely stating that they had examined patients, and wrote prescriptions and referrals for medically unnecessary tests and supplies, including the $3.4 million in adult diapers and other supplies dispensed by BURMAN’s medical supply company. Instead of actually obtaining many of these supplies, patients exchanged their prescriptions for merchandise, such as bed linens, tablecloths, dishes, kitchen appliances, and other housewares. In furtherance of the fraud, BURMAN also falsely held herself out to Medicare and Medicaid as the sole owner of the medical supply company and concealed the fact that she actually owned that company jointly with her then-husband, Aleksandr Burman.
In all, 11 defendants have been charged for their participation in this healthcare fraud scheme. Aleksandr Burman pled guilty and on May 8, 2017, was sentenced to 120 months in prison. Two medical doctors (Mustak Y. Vaid and Ewald J. Antoine), two Clinic executives (Asher Oleg Kataev and Alla Tsirlin), and two individuals who helped run two of the Clinics and a related ambulette company (Ivan Voychak and Edward Miselevich) have pled guilty and are awaiting sentencing. Three additional defendants – a doctor (Paul J. Mathieu), a physical therapist (Hatem Behiry), and an occupational therapist (Lina Zhitnik) – are scheduled to go to trial before Judge Schofield on November 26, 2018. These three remaining defendants are presumed innocent unless and until proven guilty.
MARINA BURMAN, 55, of Manhattan, pled guilty to health care fraud and conspiracy to commit health care fraud, mail fraud, and wire fraud before Judge Schofield on November 14, 2017. In addition to the prison term, Judge Schofield ordered BURMAN to forfeit six condominium apartments paid for with the proceeds of the healthcare fraud scheme, and to pay restitution of $3,415,363 to Medicaid.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation, the Office of the Inspector General of the U.S. Department of Health and Human Services, and the New York State Office of the Medicaid Inspector General (“OMIG”).
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys David Raymond Lewis, Stephen J. Ritchin, and Won S. Shin are in charge of the prosecution.
McLaughlin Man Sentenced for Sexual Contact and AssaultRead the Press Release
United States Attorney Ron Parsons announced that a McLaughlin, South Dakota, man convicted of Abusive Sexual Contact by Force and Assault Resulting in Serious Bodily Injury was sentenced on May 14, 2018, by U.S. District Judge Charles B. Kornmann.
Jeremy Agard, age 36, was sentenced to 235 months in custody, followed by 10 years of supervised release, restitution in the amount of $13,697, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Agard was indicted by a federal grand jury on March 15, 2017. He pled guilty on December 4, 2017.
The conviction stems from an incident on the evening of October 15, 2016, when the victim and Agard were in Agard’s trailer socializing. At some point in the evening, Agard asked the victim to have sex with him, but the victim told him no. Agard got mad and repeatedly struck the victim about the face and body, causing the victim to lose consciousness. When the victim regained consciousness, she was naked on the floor of Agard’s home. Agard, noticing she was awake, begin to assault the victim again, throwing her out of his residence completely unclothed. The victim ran to a neighbor’s house and law enforcement and an ambulance were summonsed. The victim was taken to the Mobridge hospital, where staff noted she was suffering from head injuries, including facial fractures and internal hemorrhaging. Injuries consistent with a sexual assault were also noted.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Agard was immediately turned over to the custody of the U.S. Marshals Service.
Man Pleads Guilty to Attempting to Launder over $1.3 MillionRead the Press Release
ALEXANDRIA, Va. – A Fairfax man pleaded guilty today to conspiring to launder money on behalf of a group of individuals, causing funds to be transferred to bank accounts located in the United States and overseas.
According to court documents, from at least 2014 through at least November 2015, Tuyen Huu Nguyen, 54, participated in a money laundering conspiracy in which co-conspirators obtained stolen funds—either via emails that duped victims into transferring money to certain bank accounts controlled by Nguyen or by acquiring control of a victim’s bank account—and caused those funds to be transferred Nguyen’s accounts. It was Nguyen’s role, upon receiving the proceeds of these frauds, to move the funds to financial accounts located in the United States and in foreign countries. Some of the bank accounts that Nguyen used for his laundering activities were opened in the names of corporate entities that Nguyen owned and controlled but which did not have any employees.
In total, the amount of money intended to be laundered by Nguyen and his co-conspirators, in a manner that was reasonably foreseeable to Nguyen, was $1.365 million. The total amount actually laundered by Nguyen and his co-conspirators was $260,000.
Nguyen’s sentencing has been scheduled for August 10, 2018. The offense of conspiracy to commit money laundering carries a maximum term of incarceration of 20 years in prison. 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, John P. Cronan, Acting Assistant Attorney General for the Justice Department’s Criminal Division, and Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after U.S. District Judge Leonie M. Brinkema accepted the guilty plea. Assistant U.S. Attorney Alexander P. Berrang, Senior Counsels Ryan K. Dickey and James S. Yoon of the Criminal Division’s Computer Crime and Intellectual Property Section, and Trial Attorney Kendrack D. Lewis and Former Trial Attorney Elizabeth Wright of the Justice Department’s Money Laundering and Asset Recovery Section investigated and prosecuted the case. Former Assistant U.S. Attorney Alexander Nguyen and former Special Assistant U.S. Attorney Joseph V. Longobardo provided assistance investigating 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-194.
Lower Brule Woman Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, woman charged with Assaulting, Resisting, and Impeding a Federal Officer pled guilty and was sentenced on May 16, 2018, by U.S. Magistrate Judge Mark A. Moreno.
Candace Byington, age 37, was sentenced to 4 months in custody and $25 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on April 27, 2017, when Byington was brought into the Lower Brule Tribal jail following her tribal arrest for a probation violation, disorderly conduct, disturbing the peace, and resisting arrest. Upon arrival at the facility, Byington was searched, per department policy. A correctional officer conducted the search. At several points during the search, Byington would turn her body away, and physically resisted the officer’s search.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Lower Brule Agency. The case was prosecuted by Assistant U.S. Attorney Troy R. Morley.
Byington was remanded to the custody of the U.S. Marshals Service.
Lincoln Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that on May 17, 2018, Samuel Turner, 50, of Lincoln, Nebraska, was sentenced to 30 years (360 months) in prison for possession with intent to distribute five grams or more of methamphetamine actual. Following the prison term, Turner will serve eight years on supervised release. Turner was convicted by a federal jury in February of 2018.
On the late evening of August 9, 2017, officers of the Lincoln Police Department, investigating a disturbance call, contacted Turner outside his residence in a north Lincoln trailer park. During a conversation with officers, Turner asked one of the officers to lower his flashlight beam, so it would not shine in his eyes. When the officer did so, officers saw that Turner was standing on a baggie of crystalline substance which contained at least 31 grams of pure methamphetamine. Another smaller bag containing approximately 1 gram of methamphetamine was found nearby.
Turner faced a potential sentence of 10 years to life. He had two prior federal felony drug convictions. He was convicted of conspiracy to distribute crack cocaine and distribution of crack cocaine in 1990 and conspiracy to distribute methamphetamine, cocaine, and marijuana in 2009. Under the federal sentencing guidelines, the 2009 drug conviction and a 2009 Lancaster County District Court conviction for attempted first degree domestic assault made Turner a “career offender,” with a suggested sentencing range of 360 months to life imprisonment.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Kayenta Woman Sentenced to Prison for Injuring Children during Car Accident on Navajo Nation Indian ReservationRead the Press Release
PHOENIX – Today, Larrissa Helen Smith, 29, of Kayenta, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 12 months and one day in prison, followed by three years of supervised release, for a car accident that resulted in injuries to four minor children. Smith had previously pleaded guilty to one count of assault resulting in serious bodily injury.
During the early morning hours of March 20, 2017, Smith was driving on Highway 163 on the Navajo Nation Indian Reservation when she caused her Chevy Tahoe to go airborne and then crash into a dirt embankment. The vehicle contained four unrestrained children, all of whom suffered injury as a result of the crash. Laboratory testing revealed both alcohol and methamphetamine in Smith’s system at the time of the accident. Smith is an enrolled member of the Navajo Nation Indian Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Christine Ducat Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-08153-PCT-DLR
RELEASE NUMBER: 2018-068_Smith
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Jury Convicts Former Police OfficerRead the Press Release
McALLEN, Texas – A federal jury sitting in McAllen has returned a guilty verdict against a former San Juan police officer for lying to federal agents, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for approximately two days before convicting Salvador Hernandez, 30, of McAllen, following a five-day trial.
The jury heard that on Aug. 27, 2016, authorities seized a load of cocaine from an abandoned vehicle in a San Juan orchard. The investigation revealed 40 bundles of cocaine were intentionally left in the vehicle. However, officers with the San Juan Police Department had logged only 37 bundles into evidence.
During the course of the investigation into the missing cocaine, law enforcement discovered the drugs had been stored in a vehicle belonging to Hernandez at the scene. Authorities interviewed him, at which time he claimed he never opened the hatch once the drugs were placed in his unit. He added that while assisting in the search for a suspect, he helped search a shed with fellow officer Richard Leon Castillo, 26, of Donna and Border Patrol agents. The jury saw video evidence and heard testimony that contradicted both statements.
Authorities interviewed Castillo, at which time he claimed never to have seen the narcotics prior to their arrival at the police department and that he did not know who transported the cocaine to the police department. Video evidence also confirmed that statement to be false.
Further, the jury saw video evidence of Hernandez allowing Castillo to touch the cocaine bundles. The footage also showed the two men discussing the fact that the bundles had not yet been counted. Specifically, as Castillo reached for one bundle, Hernandez is heard saying, “That one’s mine.”
The investigation revealed Castillo and Hernandez both failed to upload the video to police department records and failed to include any mention of touching the drugs within any department records.
Further evidence presented to the jury revealed that when agents asked Castillo whether he was involved in stealing three kilograms of cocaine, he looked down and refused to answer the question. At the time of Hernandez’s arrest, he questioned being taken into custody, noting there were “bigger fish involved.”
At trial, the defense attempted to attack the credibility of witnesses, the validity of lab reports confirming the presence of cocaine and the suggestion that Hernandez and Castillo’s false statements were mistakes.
In December 2017, a federal jury convicted Castillo, of lying to federal agents.
Previously released on bond, both were permitted to remain on bond pending their sentencing, set for July 31, 2018. At that time, they face up to five years in prison.
Drug Enforcement Administration, the FBI, and the Department of Homeland Security – Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Kristen Rees and Bobby Lopez are prosecuting the case.
Jury Convicts Bandidos Outlaw Motorcycle Organization Leadership on All Federal ChargesRead the Press Release
In San Antonio today after a nearly three-month trial, a federal jury convicted the two highest ranking officers of the Bandidos Outlaw Motorcycle Organization (Bandidos)--National President Jeffrey Fay Pike and National Vice President Xavier Portillo--on federal racketeering and drug trafficking charges.
That announcement was made today by United States Attorney John F. Bash, Western District of Texas; Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division; Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety Director Steve McCraw; Acting Austin Police Chief Brian Manley; San Antonio Police Chief William McManus; and, Atascosa County Sheriff David A. Soward.
“I am immensely proud of our prosecution team and our law-enforcement partners for this successful prosecution,” stated United States Attorney John F. Bash. “What this verdict shows more than anything is that the Department of Justice is fully capable of stripping away a veneer of legitimate activity to expose and punish underlying criminal conduct. Others should take note.”
Jurors convicted Pike, age 62 of Conroe, TX, and Portillo, age 58 of San Antonio, of (count 1) conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute; (count 3) violent crimes in aid of racketeering (VICAR)--murder; (count 4) conspiracy to commit murder in aid of racketeering; (count 5) one count of conspiracy to commit assault with a dangerous weapon; (counts 6 and 7) aiding and abetting assault with a dangerous weapon; (count 9) discharging a firearm during a violent crime; and, (count 12) interference with commerce by extortion. Jurors also convicted Portillo of (count 2) violent crimes in aid of racketeering (VICAR)--murder; (count 8) discharging a firearm during a crime of violence; (count 10) conspiracy to possess with intent to distribute more than 500 grams of methamphetamine and cocaine; (count 11) possession with intent to distribute cocaine; and, (count 13) felon in possession of a firearm.
Jurors found Pike and Portillo guilty of conspiring to conduct the affairs of a criminal organization through racketeering acts including directing, sanctioning, approving and permitting members of the Bandidos to commit murder, attempted murder, robbery, assault, intimidation, extortion and drug trafficking. Evidence during trial revealed that in 2006, Pike and Portillo ordered other Bandidos members to murder Anthony Benesh. At the time, Benesh was attempting to start a Texas Chapter of the Hell’s Angels Outlaw Motorcycle Organization in Austin. Members of the Bandidos warned Benesh to cease his activities and recruitment, which Benesh ignored. Several Bandidos members then murdered Benesh on March 18, 2006, outside an Austin restaurant to protect the power, reputation and territory of the Bandidos enterprise.
Jurors also found that Portillo and others killed Robert Lara in January 2002 in Atascosa County as payback for killing Bandidos member Javier Negrete. Negrete, a member of the same Bandidos chapter as Portillo, was killed outside a San Antonio bar in October 2001.
Jurors also found that Pike, Portillo and others conspired to murder and assault members and associates of the Cossacks Outlaw Motorcycle Organization (Cossacks). Testimony revealed that Portillo, with Pike’s approval, declared that the Bandidos were “at war” with the Cossacks. A number of violent acts were committed by the Bandidos around Texas in furtherance of this “war,” including in Fort Worth, Gordon, Odessa, Port Aransas, Crystal City and elsewhere.
Testimony also revealed that Portillo and other members of the Bandidos were engaged in trafficking methamphetamine and cocaine and maintained an agreement with the Texas Mexican Mafia wherein Bandidos members were not required to pay the 10-percent “dime” to the Texas Mexican Mafia in exchange for permission to traffic narcotics.
“The convictions of the Bandidos National President Jeffery Pike and National Vice President John Portillo make it clear that the DEA and the Justice Department will bring organized criminal enterprises, like the Bandidos, to justice,” said Will R. Glaspy, Special Agent in Charge of the Drug Enforcement Administration - Houston Division. “DEA, along with our law enforcement partners, remain committed to removing violent criminals and drugs traffickers from our communities.”
“The verdict rendered today is the result of the outstanding partnership between the FBI and all our law enforcement partners,” said FBI Special Agent in Charge Christopher Combs. “This effort demonstrates our ongoing commitment to prevent gang violence and criminal activity from poisoning our communities. It also sends a clear message that we will relentlessly pursue and prosecute the leaders and members of these violent criminal enterprises.”
Pike, who previously had been on bond, was remanded into the custody of the United States Marshals Service following today’s verdict. Portillo remains in federal custody. The defendants face up to life in federal prison. Sentencing for Portillo is scheduled for 9:00am on September 24, 2018. Sentencing for Pike is scheduled for 9:00am on October 1, 2018. Both sentencings will be before Senior United States District Judge David A. Ezra in San Antonio. Criminal forfeiture in this case has yet to be determined. The Government is seeking the criminal forfeiture of Portillo’s residence, which according to the evidence presented during trial, was used extensively to carry out the criminal affairs of the organization including drug distribution.
“Today’s verdict is a testament to the hard work and dedication of our local, state and federal officers. The arrest and successful prosecution of these violent offenders involves cooperation and collaboration among the different agencies. We will continue to work together to ensure that our community is a safe community,” stated San Antonio Police Chief William McManus.
The FBI, DEA and Texas DPS investigated this case together with the Internal Revenue Service-Criminal Investigation, U.S. Customs and Border Protection, Homeland Security Investigations (HSI), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Austin Police Department, New Braunfels Police Department, Seguin Police Department, San Antonio Police Department, Bexar County Sheriff’s Department, Atascosa County Sheriff’s Department, Palo Pinto County Sheriff’s Department, Ector County Sheriff’s Department, and the Bexar County District Attorney’s Office. Assistant United States Attorneys Eric Fuchs and John Gibson are prosecuting this case on behalf of the Government.
Jackson Man Pleads Guilty under Project EJECT for Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Jeremy Jerome Fletcher, 28, of Jackson, pled guilty today before United States District Judge Tom S. Lee to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation (FBI).
On or about December 13, 2017, Jackson Police Department conducted a traffic stop on Highway 80 near Valley Street in Jackson, Mississippi, of a vehicle occupied by three individuals. The front seat passenger was Jeremy Jerome Fletcher. Upon running a check, it was determined that the driver had active warrants out of Carroll County and both Fletcher and the rear passenger had warrants for traffic violations. All were arrested and an inventory of the vehicle revealed a loaded .22 caliber revolver inside a yellow towel underneath the front passenger seat. A records check revealed that on April 21, 2014, Fletcher had been sentenced in the Circuit Court of Rankin County, Mississippi, to fifteen (15) years imprisonment, with twelve (12) years suspended, and five (5) years of supervised probation, for the felony offense of robbery. Fletcher was on probation at the time of the subject traffic stop.
After being Mirandized and waiving his rights, Fletcher gave a confession that the .22 caliber revolver was his and stated when they drove past the police officer, he placed the gun under his seat (the front passenger seat). He further stated he purchased it approximately one month prior for $65.00.
Fletcher is scheduled to be sentenced by Judge Lee on August 23, 2018 at 10:00 a.m., and faces a maximum sentence of 10 years in federal prison and a $250,000 fine.
This case was investigated by the FBI with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It is being prosecuted by Assistant U.S. Attorney Keesha Middleton.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is 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.