Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
20 June 2018
Texas Man Sentenced to Ten Years for Federal Drug Trafficking and Firearms Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Nicolas Robert Muniz, 27, of Monahans, Tex., was sentenced today in federal court in Las Cruces, N.M., to 120 months in prison followed by four years of supervised release for his conviction on drug trafficking and firearms charges.
Muniz was charged by criminal complaint on June 5, 2017, after law enforcement officers seized approximately 504 grams of methamphetamine, 50 grams of marijuana, and firearms and ammunition from Muniz’s vehicle during a routine traffic stop. According to the complaint, the officers deployed a drug detection canine on Muniz’s vehicle after observing that Muniz was acting in a suspicious and nervous manner. They searched the vehicle and found the drugs after the canine alerted to the presence of controlled substances in the vehicle.
Muniz and a co-defendant Michael Dwain Samples, 26, also from Monahans, were subsequently charged in a six-count indictment filed on Sept. 13, 2017. The indictment charged the two men with participating in a methamphetamine distribution conspiracy and possessing methamphetamine with intent to distribute. The indictment also charged Muniz and Samples with being felons in possession of a firearm and ammunition, and possessing firearms in relation to drug trafficking crimes. According to the indictment, the defendants committed the offenses on May 16, 2017, in Lea County, N.M. Samples and Muniz were prohibited from possessing firearms or ammunition because they were convicted felons.
On Jan. 16, 2018, Muniz pled guilty to a four-count felony information charging him with conspiracy to distribute methamphetamine, possession of methamphetamine with intent to distribute, being a felon in possession of a firearm and ammunition and possession of a firearm in furtherance of a drug trafficking crime. In entering the guilty plea, Muniz admitted that on May 16, 2017, he agreed to drive Samples from Monahans to Carlsbad, N.M., to purchase approximately 469 grams of methamphetamine. Muniz admitted having a loaded firearm under his seat of the vehicle he was driving, and that he possessed the firearm and ammunition despite his status as a convicted felon and for protection and in furtherance of his drug trafficking activities.
On Oct. 31, 2017, Samples pled guilty to conspiracy to distribute methamphetamine, possession of methamphetamine with intent to distribute, and being a felon in possession of a firearm and ammunition. In entering the guilty plea, Samples admitted that on May 16, 2017, he traveled from Monahans to Carlsbad, to purchase approximately 469 grams of methamphetamine with the intention of distributing the methamphetamine to others. Samples further admitted that on May 16, 2017, he possessed a firearm and ammunition despite his status as a convicted felon. Samples was sentenced on April 17, 2018, to ten years in prison followed by five years of supervised release.
This case was investigated by Homeland Security Investigations and the New Mexico State Police. Assistant U.S. Attorney Brock E. Taylor and Special Assistant U.S. Attorney Joni L. Autrey of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Tax Preparer Sentenced in SYAM Tax Service SchemeRead the Press Release
BEAUMONT, Texas – A 40-year-old Dallas tax preparer has been sentenced to prison for federal tax violations and failure to appear for his trial on that charge in early 2015 in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Shannon Tecoko Mays was sentenced by U.S. District Judge Thad Heartfield to 180 months in federal prison, of which 162 months was for the tax scheme and an additional or consecutive 18 months for the failure to appear felony. Mays was also ordered to pay restitution of $1,121,202 to the Internal Revenue Service.
Mays was originally indicted in February 2014 by a federal grand jury charging him with conspiracy to commit wire fraud. He was released on bond pending trial and failed to appear for trial in January 2015. Mays was indicted by a federal grand jury in February 2015 for obstruction of justice for his failure to appear for trial. Mays pleaded guilty to the two felony indictments on Oct. 2, 2017.
According to prosecutors, an investigation began in August 2012 in response to numerous complaints to state and federal authorities from citizens in Port Arthur, Anahuac, Nacogdoches and Lufkin, Texas regarding income tax returns that were being fraudulently prepared on their behalf. During the investigation, it was discovered that Mays was operating numerous offices across the United States under the name “Syam Tax Services, L.L.C.” and “Baby Momma Tax.” Although the principal office was located in Dallas, Mays also operated or sought to operate satellite offices in numerous other locations, including Fort Worth, Houston, New Orleans, Memphis, Atlanta, Chicago and Los Angeles.
According to information presented in court, Mays targeted individuals who were on disability or only received Social Security income as they are generally exempt from having to file income tax returns and thus would be less likely to discover a fraudulent tax return had been filed on their behalf. To further facilitate the scheme, Mays employed “recruiters,” paying them from $50-100 for every client they successfully brought into Syam Tax. Many of the complaining taxpayers were told by the recruiters that they were receiving an economic “stimulus” payment from the government. In order to avoid detection, Mays altered the taxpayers’ addresses and phone numbers on the returns so that any phone calls or correspondence from the IRS would not reach the taxpayers. The scheme also used electronic deposits to ensure paper checks would not be mailed to the taxpayer. For the tax year 2011, Mays filed 4,226 tax returns claiming approximately $6 million in refunds. Of the returns filed, 3,887 of the returns fraudulently claimed an education credit under the American Education Opportunity Act, designed for persons to pay for their college education. Some of the returns also claimed false Earned Income credits. A successful injunction suit brought by the Texas Attorney General’s Office – Consumer Protection Division in 2014 recovered approximately $1,282,000 from Syam Tax Service bank accounts, which was returned to the U.S. Treasury. One recruiter from the Port Arthur area, Diana Broussard McCoy, pleaded guilty to the conspiracy charge in January 2015, and was sentenced to five years federal probation by Chief Judge Ron Clark. Another recruiter, Myra Jones, pleaded guilty in March 2014, to impersonating an Internal Revenue Service employee, and was also sentenced to federal probation by Judge Clark.
“The defendant who perpetrated this scheme systematically defrauded the government and the taxpaying public,” said Tamera Cantu, IRS Special Agent in Charge of the Dallas Field Office. “At the IRS, protecting taxpayer money is a matter we take very seriously. IRS Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves by preparing false claims for refunds.”
This case was investigated by Internal Revenue Service – Criminal Investigation Division, Federal Bureau of Investigation, the Port Arthur Police Department, the Texas Attorney General’s Office – Consumer Protection Division, and the Treasury Inspector General for Tax Administration. This case was prosecuted by Assistant U.S. Attorneys Robert L. Rawls and Chris Tortorice.
####
Sullivan Man Pleads Guilty to Child Pornography ChargesRead the Press Release
St. Louis, MO – James Ricky Johnson, Jr., 40, of Sullivan, MO, pled guilty on Monday to four counts of Production and Possession of Child Pornography charges. Johnson appeared before United States District Henry E. Autrey and sentencing is set for September 18, 2018.
According to court documents, Johnson admitted to taking child pornographic photographs of a 11-year-old minor child, as charged under Title 18, United States Code Section 2251(e) which calls for a minimum term of imprisonment of 15 years. The crime happened between 2014 and 2016, in Sullivan, Missouri. The images of the child were located during a search of the defendant’s email account by law enforcement.
Possession of Child Pornography carries a maximum penalty of 20 years in prison and/or fines up to $250,000 and Production of Child Pornography carries a maximum penalty of 30 years in prison and/or fines up to $250,000 and. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the Franklin County Sheriff’s Office, the St. Charles County Internet Crimes Against Children Task Force and the Federal Bureau of Investigation. Assistant U.S. Attorney Colleen Lang is handling the case for the U.S. Attorney’s Office.
Strafford Man Sentenced for Meth, Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Strafford, Mo., man was sentenced in federal court today for possessing methamphetamine to distribute and for illegally possessing a firearm.
Stephen T. Gross, 41, was sentenced by U.S. District Judge M. Douglas Harpool to 12 years and eight months in federal prison without parole.
On May 24, 2017, Gross pleaded guilty to one count of possessing methamphetamine with the intent to distribute and one count of possessing a firearm in furtherance of a drug-trafficking crime.
Strafford police officers arrested Gross on Aug. 27, 2016, after his bond was revoked in an unrelated state case. Officers searched his residence and seized a Taurus .38-caliber revolver, a Fox 16-gauge sawed-off shotgun with an obliterated serial number, a plastic bag that contained 284.63 grams of methamphetamine and drug paraphernalia.
According to court documents, Gross has six prior drug-related offenses, several stealing related offenses, an assault, and has been convicted several times of driving without a license.
This case was prosecuted by Special Assistant U.S. Attorney Jody Larison. It was investigated by the Strafford, Mo., Police Department, the Combined Ozarks Multijurisdictional Enforcement Team (COMET), the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Missouri State Highway Patrol.
State Correctional Officer Who Illegally Distributed Steroids is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that NICHOLAS AURORA JR., 34, of Hamden, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to three years of probation, the first six months of which AURORA must serve in home confinement, for illegally distributing steroids. Judge Bolden also ordered AURORA to pay a $2,000 fine and perform 200 hours of community service.
According to court documents and statements made in court, in December 2017, the Statewide Narcotics Task Force West conducted a court-authorized search of another individual’s residence in Hamden and seized approximately 25,000 pills and 530 vials of anabolic steroids. Subsequent analysis of the individual’s cell phone revealed numerous text messages relating to AURORA’s purchase and redistribution of steroids.
The investigation revealed that AURORA was purchasing steroids from his source of supply every two weeks. He personally used some of the steroids, and sold some, at a profit, to coworkers.
AURORA is a correctional officer with the Connecticut Department of Correction.
On March 14, 2018, AURORA pleaded guilty to one count of possession with intent to distribute anabolic steroids.
This matter is being investigated by the Connecticut State Police, Statewide Narcotics Task Force West, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Sarah P. Karwan.
Shreveport felon sentenced to 10 years for possession of firearm, methamphetamine distributionRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that a Shreveport felon was sentenced last week to 120 months in prison for possessing methamphetamine and a pistol in his car.
William Charles Riggs, 44, of Shreveport, was sentenced Thursday by U.S. District Judge S. Maurice Hicks Jr. on one count of felon in possession of a firearm and one count of possession with intent to distribute methamphetamine. He was also sentenced to four years of supervised release. According to the March 13, 2018 guilty plea, Louisiana State Police attempted to conduct a traffic stop on Riggs’ vehicle on April 28, 2017 in Bossier Parish. The trooper observed the car straddling the center line, and when the traffic stop was initiated, the car sped off at a high rate of speed. The car eventually crashed, and Riggs escaped on foot. He was later apprehended. Troopers searched the vehicle and found 27.21 grams of methamphetamine and a loaded model 22; .40 caliber Glock pistol.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safe 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 ATF, DEA, Louisiana State Police and Bossier City Police Department conducted the investigation. Assistant U.S. Attorney J. Aaron Crawford prosecuted the case.
Shelton Man Charged with Distributing Counterfeit DrugsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that KAMIL GOLEBIOWSKI, 26, of Shelton, was arrested yesterday on a federal criminal complaint charging him with various drug offenses related to the illegal distribution of counterfeit drugs. The charges stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
Following his arrest, GOLEBIOWSKI appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was ordered detained.
As alleged in the criminal complaint, on July 9, 2017, the Seymour Police Department and emergency medical personnel responded to a report of a suspected overdose at a residence in Seymour. At the residence, medical personnel pronounced a 29-year-old male deceased. Investigators seized drug and non-drug evidence from the scene, including the victim’s cell phone.
The State of Connecticut Chief Medical Examiner determined the victim’s cause of death to be acute intoxication due to the combined effects of cocaine, etizolam, fentanyl, flubromazolam and heroin.
The complaint alleges that analysis of the victim’s cell phone identified two individuals who purchased heroin and what they believed to be Xanax pills for the victim shortly before the victim died. GOLEBIOWSKI was subsequently identified as a source of supply for Xanax pills.
It is further alleged that, between August 2017 and May 2018, investigators made multiple controlled purchase of Xanax pills from GOLEBIOWSKI. Analysis of the pills revealed that they were counterfeit. In early June 2018, investigators intercepted two packages mailed from Canada and addressed to GOLEBIOWSKI. The packages contained approximately 1,400 counterfeit Xanax pills.
The complaint charges GOLEBIOWSKI with possession with intent to distribute, and distribution of, a controlled substance; possession with intent to distribute, and distribution of, a counterfeit substance; conspiracy to distribute controlled substances, and use of a telecommunications facility in the distribution of narcotics.
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.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, Shelton Police Department and Seymour Police Department, with the assistance of Homeland Security Investigations and U.S. Customs and Border Protection. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Sheffield Lake man sentenced to 16 years in prison for providing support to ISISRead the Press Release
Amir Said Rahman Al-Ghazi, 41, aka Robert C. McCollum, of Sheffield Lake, Ohio, was sentenced to 16 years in prison for one count of providing material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, as well as two counts of being a felon in possession of firearms.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Justin E. Herdman for the Northern District of Ohio, and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division made the announcement.
“The National Security Division is committed to identifying and prosecuting those who seek to provide material support to terrorist groups like ISIS.” said Assistant Attorney General Demers. “I want to thank the prosecutors and our partners in law enforcement—including the FBI and its Joint Terrorism Task Force—who ensured that this defendant was held accountable for his crimes.”
“This case is a stark reminder that ISIS is more than an abstract threat,” said U.S Attorney Herdman. “Through social media and other means, ISIS and groups like it seek to radicalize people of all backgrounds into its world of violence.”
“This case demonstrates law enforcement’s number one priority – to keep our communities and our nation safe,” said Special Agent in Charge Anthony. “It is clear that no area is immune from the influence of ISIS and its supporters. We hope this case will serve as a strong message to others who may consider providing support to terrorists. The FBI and our Joint Terrorism Task Force partners are committed to identifying and stopping these individuals.”
Al-Ghazi, who changed his name from Robert McCollum last year, pledged his support to ISIS and Abu Bakr Al-Baghdadi via social media in 2014. From July 2014 to June 2015, Al-Ghazi made multiple statements trying to persuade others to join ISIS. He also expressed his own desire to perpetrate an attack on the United States and had attempted to purchase an AK-47 assault rifle. Al-Ghazi has communicated with individuals he believed to be members of ISIS in the Middle East and took steps to create propaganda videos for ISIS, according to court documents.
This case was investigated by the FBI’s Joint Terrorism Task Force. This case is being prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd of the Northern District of Ohio, with assistance from Trial Attorney Erin Creegan of the National Security Division’s Counterterrorism Section.Several Individuals and Corporation Plead Guilty to Shipping Hazardous WasteRead the Press Release
St. Louis, MO – Raymond Williams, Daryl Duncan, Penny Duncan, and U.S. Technology Corporation pled guilty to charges involving the transportation of 9 million pounds of hazardous waste from Yazoo City, Mississippi to Berger, Missouri between October 2013 and December 2013.
According to court documents, Raymond Williams was the President, owner, and Chief Executive Officer of U.S. Technology Corporation (“UST”). UST was a registered corporation in the State of Ohio, with headquarters in Canton, Ohio. UST was a company that leased blasting material to various consumers for use in removal of paints and other materials. The consumers were often military bases and agencies, using the blasting materials to remove paints from things such as tanks and planes. The paints used often contained numerous heavy metals including cadmium, chromium, and lead. During the blasting process, heavy metals from the paint become imbedded in the material. Since the consumers leased the blasting material, consumers returned the heavy metal rich blasting material to UST upon completion.
In or around October 2013, Raymond Williams contacted Darryl Duncan in need of his assistance. Raymond Williams explained that he was in possession of over 9 million pounds of hazardous waste located in Yazoo City, Mississippi at the former Hydromex site. Williams asked Darryl Duncan to receive the hazardous waste in Berger, Missouri. Darryl Duncan agreed and worked with Penny Duncan to create Missouri Green Materials (“MGM”) for the sole purpose of receiving the hazardous waste from Yazoo City, Mississippi.
From October 2013 until December 2013, UST and Raymond Williams shipped approximately 9 million pounds of hazardous waste from Yazoo City, Mississippi to MGM and the Duncans in Berger, Missouri in violation of state and federal laws.
Williams, 71, of Atlanta, GA, pled guilty to conspiring to transport hazardous waste before United States District Judge Rodney W. Sippel. Sentencing has been set for September 20, 2018.
U.S. Technology Corporation pled guilty to conspiring to transport hazardous waste before United States District Judge Rodney W. Sippel. Sentencing has been set for September 20, 2018.
Daryl Duncan, 67, of Chicago, IL, pled guilty to placing a person in imminent danger by releasing hazardous waste into the air before United States District Judge Rodney W. Sippel. Sentencing has been set for September 20, 2018.
Penny Duncan, 60, of Chicago, IL. pled guilty to placing a person in imminent danger by releasing hazardous waste into the air before United States District Judge Rodney W. Sippel. Sentencing has been set for September 20, 2018.
This case was investigated by the Environmental Protect Agency and the Missouri Department of Natural Resources. Assistant United States Attorney Dianna R. Collins and Hal Goldsmith are handling the case for the U.S. Attorney's Office.
Second Former 5LINX Owner Pleads Guilty to Wire Fraud and Tax Charge for His Role in Multi-Million Dollar Marketing SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jeb Tyler, 45, of Rochester, NY, pleaded guilty to conspiracy to commit wire fraud and filing a false tax return for the year 2014 before U.S. District Judge David G. Larimer. The charges carry a maximum penalty of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney Richard A. Resnick, who is assisting AUSA Craig R. Gestring in the prosecution, stated that in 2001, Tyler, Craig Jerabeck, and Jason Guck started 5LINX Enterprise, Inc. (5LINX), a multi-level marketing company headquartered in Rochester, New York, which offered utility and telecommunications services, health insurance, nutritional supplements, and business services. 5LINX used independent representatives to sell products and services, and to recruit additional representatives. Jerabeck was President and Chief Executive Officer, Guck was Vice President and Secretary, and Tyler was Vice President of 5LINX.
In June 2006 and July 2006, Tyler, Jerabeck and Guck sold 5LINX stock for $5,500,000 to three investment companies, Trillium Lakefront Partners III, L.P.; Trillium Lakefront Partners III, NY L.P.; and Shalam Investment Co., L.L.C. (collectively known as "the Investors"). Tyler admitted that between May 2010 and April 2016, 5LINX sold and distributed products for a Florida vendor. Tyler, along with Guck and Jerabeck, and without the knowledge of the Investors, Board of Directors, or other stockholders, conspired and agreed to cause the Florida vendor to pay them personally or companies they owned approximately $2,310,510, which their Stockholders Agreements prohibited them from receiving. 5LINX, its investors, as owners between 2006 and January 2014, and as creditors thereafter, and stockholders were entitled to and should have received such funds instead of the defendant, Guck, and Tyler.
Assistant U.S. Attorney Richard A. Resnick further stated that the defendant admitted that he had provided material false information on his personal tax returns, Forms 1040, for the years 2012 through 2015. Specifically, the defendant admitted that he failed to report income he received from 5LINX, and took deductions to which he was not entitled, that is, consulting fees that were not paid. The false returns resulted in a tax loss to the IRS of approximately $449,123.
The defendants were charged in a superseding indictment in September 2017. Craig Jerabeck was previously convicted and is awaiting sentencing. Charges are pending against Jason Guck. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s plea is the culmination of an investigation by Special Agents of the Federal Bureau of Investigations, under the direction of Special Agent-in-Charge Gary Loeffert, and the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett, Special Agent in Charge, New York Field Office.
Sentencing is scheduled for September 9, 2018 at 2:00 p.m. before Judge Larimer.
Seattle Man Pleads Guilty to Fraud Conspiracy Involving Former Oregon Department of Energy EmployeeRead the Press Release
PORTLAND, Ore. – Martin J. Shain, 61, of Seattle, Washington, pleaded guilty today to one count each of conspiracy to defraud the U.S. and tax evasion.
According to court documents, between June 2012 and March 2015, Shain and Joseph Colello, a former employee of the Oregon Department of Energy’s (ODOE) Business Energy Tax Credit (BETC) program, maintained a secret business relationship whereby the two would personally profit from the sale and purchase of Oregon BETCs.
Shain and Colello devised a plan whereby Colello would give Shain the names of BETC sellers and interested buyers—information he had access to as an ODOE employee. Colello would then contact the sellers and buyers to negotiate credit transfers, but made it appear as though the Shain had brokered the deals. Shain created a company in the name of his relative in order to receive commission payments from the sellers of the tax credits and to conceal their earned income from the IRS. Shain charged sellers a 1-2% fee, undercutting brokers who typically charged a 10% fee for facilitating similar transfers. Colello would receive a portion of this fee as a kickback.
Between 2012 and 2015, Shain deposited over $1.3 million in income from the commissions charged to sellers of BETC credits. He would transfer a portion of these funds into a personal account from which he would purchase and issue biweekly cashier’s checks payable to Colello. Over the course of the conspiracy, Shain purchased and issued approximately 58 cashier’s checks to Colello or Colello’s girlfriend. In total, Colello received more than $300,000 in bribe payments for his role in the scheme. Shain failed to report more than $1.34 million in income received brokering tax credit sales on four income tax returns between 2012 and 2015.
Colello pleaded guilty to one count of conspiracy to engage in monetary transactions in property derived from specific unlawful activity, one count of conspiracy to defraud the United States, and one count of filing a false income tax return on March 15, 2018. On April 3, 2018, he was sentenced to 60 months in prison and was ordered to pay more than $81,000 in restitution.
Shain faces a maximum sentence of five years in prison, a $250,000 fine and three years of supervised release on each charge. He will be sentenced on September 20, 2018 before U.S. District Court Judge Robert E. Jones.
The case was investigated by IRS Criminal Investigation and the FBI and prosecuted by Claire M. Fay and Scott E. Bradford, Assistant U.S. Attorneys for the District of Oregon.
Reno Man Sentenced to Five Years in Prison for Receipt of over 2,000 Child Pornography Photos and VideosRead the Press Release
RENO, Nev. – A Reno resident who used KIK Messenger to view more than 2,000 images and videos of child pornography was sentenced today to 60 months in federal prison to be followed by 20 years of supervised release, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Ian Michael Ramsey, 21, previously pleaded guilty to one count of receipt of child pornography. In addition to the prison term, he will be required under the Sex Offender Registration Notification Act (SORNA) to register as a sex offender. United States District Judge Miranda Du presided over the sentencing hearing.
According to court documents, Ramsey admitted that he chatted online with others who looked at child pornography on the KIK Messenger application. During chat sessions, he would often suggest engaging in child trafficking and discussed meeting up in Las Vegas to potentially abuse children. During the execution of a search warrant at his residence, law enforcement discovered 500 videos and 1,500 images on his computer. An additional 300 videos had been deleted from his computer, but law enforcement was able to recover them during the investigation.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI). Assistant U.S. Attorney Sue Fahami prosecuted the case.
If you have information regarding possible child sexual exploitation, make a report to the National Center for Missing and Exploited Children (NCMEC) CyberTipline at www.cybertipline.com.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the 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 and for information about internet safety education, please visit www.justice.gov/psc.
###
Real Estate Investor Pleads Guilty to Rigging Bids at Online Foreclosure AuctionsRead the Press Release
Real estate investor Stuart Hankin pleaded guilty today for his role in a conspiracy to rig bids, in violation of antitrust law, at online public foreclosure auctions in Florida, the Department of Justice announced. He is the first defendant to plead guilty in this conspiracy.
“Those who corrupt the foreclosure auction process through illegal bid rigging must expect to face the consequences,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The Division remains committed to rooting out antitrust violations at foreclosure auctions, whether the auction is online or in person, and whether the conspiracy is carried out in person, in text messages, or through other electronic means.”
Felony charges of bid rigging were filed against Stuart Hankin on November 2, 2017, in the U.S. District Court for the Southern District of Florida. According to court documents, from around January 2012 through around June 2015, Hankin conspired with others to rig bids during online foreclosure auctions in Palm Beach County, Florida.
The Department said that the primary purpose of the conspiracy was to suppress and restrain competition in order to obtain selected real estate offered at online foreclosure auctions at noncompetitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with any remaining proceeds available to the homeowner. According to court documents, the conspiracy artificially lowered the price paid at auction for such homes. In the past several years, the Division and its law enforcement partners have secured convictions of over 100 individuals for rigging public mortgage foreclosure auctions in six different states, now including Florida.
“Stuart Hankin and his co-conspirators used bid rigging to successfully undermine the legitimate, competitive foreclosure auction process for certain properties in Palm Beach County, Florida,” said Special Agent in Charge Robert F. Lasky for FBI Miami. “Their greed left victims – including homeowners and other valid stakeholders – shortchanged. The FBI and our law enforcement partners will vigorously investigate such schemes.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine.
The investigation is being conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Miami Division – West Palm Beach Resident Agency. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Washington Criminal I Section of the Antitrust Division at 202-307-6694, call the Antitrust Division’s Citizen Complaint Center at 888-647-3258, or visit www.justice.gov/atr/contact/newcase.html.
Queens Resident Pleads Guilty to Attempting to Provide Material Support to ISISRead the Press Release
Earlier today, in federal court in Brooklyn, Parveg Ahmed pleaded guilty before United States District Judge Ann M. Donnelly to one count of attempting to provide material support or resources to the Islamic State of Iraq and al Sham (“ISIS”), a designated foreign terrorist organization. When he is sentenced, Ahmed faces a statutory maximum of 20 years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John C. Demers, Assistant Attorney General for National Security, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the guilty plea.
As detailed in publicly filed court documents, Ahmed is a United States citizen who traveled to Saudi Arabia in June 2017, purportedly to celebrate an Islamic religious holiday. Upon his arrival in Saudi Arabia, the defendant attempted to travel to Syria to join ISIS. The defendant was detained in a Middle Eastern country during his attempted travel to ISIS-controlled territory and was deported back to the United States on August 28, 2017, where he was arrested at John F. Kennedy International Airport.
Prior to his travel, the defendant had repeatedly expressed support on social media for ISIS and for individuals who provided support to the foreign terrorist organization’s mission of violent extremism. On July 17, 2017, JTTF agents obtained a search warrant for the defendant’s personal computer, and learned, among other things, that the defendant had viewed or listened to recordings of radical Islamic clerics Anwar al-Awlaki and Abdullah el-Faisal. Al-Awlaki was a United States-born cleric and prominent leader of the foreign terrorist organization al Qaeda in the Arabian Peninsula who was killed on or about September 30, 2011. El-Faisal, a Jamaican-born cleric, was found guilty in the United Kingdom of, among other things, solicitation to commit murder, for preaching to followers to kill individuals, including Americans, because he deemed them to be enemies of Islam. Additionally, agents learned that, on the same day the defendant left the United States for the Middle East, the defendant researched how to erase the data on his computer.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Craig R. Heeren and Margaret E. Lee are in charge of the prosecution, with assistance from Trial Attorney Joshua Champagne of the National Security Division’s Counterterrorism Section.
The Defendant:
PARVEG AHMED
Age: 22
Queens, New YorkE.D.N.Y. Docket No. 17-CR-378 (AMD)
Providence Man Pleads Guilty to Bank RobberyRead the Press Release
PROVIDENCE, RI – A Providence man accused of robbing a Providence bank just prior to closing for the business day on Valentine’s Day in February 2017, pleaded guilty on Tuesday in federal court to a charge of bank robbery.
Appearing before U.S. District Court Chief Judge William E. Smith, Efrain Delacruz, 36, admitted to the Court that on February 14, 2017, he entered a Santander Bank branch office on Elmgrove Avenue, approached a teller, and gave her a note that said, “give me all the money. No dye packs, no fifties and no hundreds.” The teller immediately began gathering money from her station and gave it Delacruz.
According to information presented to the Court, as Delacruz left the bank he dropped nearly half of the money in the vestibule. A manager immediately locked the doors. Delacruz came back to the bank looking for the dropped money. He yanked on the doors trying to get in, but was unsuccessful. He then fled in his vehicle, leading police on a chase that exceeded 6 miles, often at high speed. Delacruz struck as many as seven vehicles prior to getting cornered by Providence Police and stopping.
Cash in the amount of $3,569 was found in the center console of the car. It is believed that the balance of the money initially handed to the defendant by the teller was dropped inside the bank, where it was recovered.
Delacruz, who is detained in federal custody, is scheduled to be sentenced on October 5, 2018.
Delacruz’s guilty plea is announced by United States Attorney Stephen G. Dambruch, Providence Police Chief Hugh T. Clements, Jr, and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
The matter was investigated by the Providence Police Department and the FBI.
###
Project Safe Neighborhood Prosecution Results in 289 Month Sentence for Violent FelonRead the Press Release
United States Attorney Trent Shores announced that United States District Judge Claire V. Eagan sentenced Shawn Dale Sexton, 26, of Bristow, to serve 289 months in federal prison for Felon in Possession Firearms and Ammunition.
On July 23, 2017, Bristow Police responded to an area where shots were reportedly fired. Witnesses identified Sexton as the driver of a white Jeep Wrangler and explained that he had been involved in a shooting in Slick, Creek County, Oklahoma and was continuing to drive through Bristow as he repeatedly discharged a weapon causing serious bodily injury to multiple victims. As Bristow police officers pursued Sexton, he fired his gun at officers, striking their patrol car. The officers pursued Sexton during a two-mile chase. Sexton possessed and discharged a weapon. He had seven felony convictions including multiple convictions for Assault with a Dangerous Weapon, Aggravated Assault and Battery and Conspiracy to Deliver Controlled Substance. Sexton has been in custody since his arrest on July 23, 2017.
“Sexton terrorized an entire community. His actions threatened the lives of citizens and law enforcement alike. In the Northern District of Oklahoma, we will continue our relentless pursuit of dangerous felons who possess firearms, especially those who show no regard for human life. We must hold them accountable,” said U.S. Attorney Shores.
This prosecution was part of the Department of Justice’s Project Safe Neighborhood and resulted from a joint investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bristow Police Department. Assistant United States Attorney Joel-lyn A. McCormick handled the prosecution of this case.
Pottstown Man Charged with Distributing Child PornographyRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that an indictment has been unsealed today charging Calvin Roeder, 31, of Pottstown, Pennsylvania, with two counts of distribution of child pornography and one count of possession of child pornography.
The indictment alleges that between June 2, 2017 and June 23, 2017, Roeder distributed images of child pornography, and on August 24, 2017, he possessed images of child pornography.
If convicted, the defendant faces a maximum possible sentence of fifty years in prison and a mandatory minimum sentence of five years in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations (“HSI”), and is being prosecuted by Assistant United States Attorney Josh A. Davison.
Portland Man Sentenced to Six Years for Cocaine TraffickingRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Hadelyn Richardson, 26, of Portland, Maine, was sentenced today in U.S. District Court by Judge Jon D. Levy to six years in prison and four years of supervised release for possession with intent to distribute cocaine. He was also fined $10,000. Upon release from prison, he faces deportation to the Dominican Republic. He pleaded guilty on January 30, 2018.
Court records reveal that on June 21, 2017, law enforcement agents intercepted a package sent from Puerto Rico to the defendant’s residence containing about four kilograms of cocaine. During the ensuing search of his residence, agents seized 3.5 kilograms of cocaine and a firearm.
The investigation was conducted by the U.S. Drug Enforcement Administration and the U.S. Postal Inspection Service with assistance from the Portland Police Department. The prosecution is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state, and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state, and local law enforcement.
Portland Couple Accused of Interstate Distribution of Marijuana and Firearms CrimesRead the Press Release
PORTLAND, Ore. – Isaiah Lee Holt, 30, and Marjorie Livingston, 37, residents of Portland, were charged today in a five-count indictment alleging the couple engaged in a conspiracy to distribute marijuana and illegally purchased and possessed firearms.
Holt is charged with one count each of conspiracy to distribute and possess with intent to distribute marijuana, possession with intent to distribute marijuana, possession with intent to distribute cocaine, and felon in possession of a firearm.
Holt made an initial appearance today in federal court before U.S. Magistrate Judge Paul Papak. He will appear at an arraignment and detention hearing on June 21, 2018.
Livingston is charged with one count of conspiracy to distribute and possess with intent to distribute marijuana and one count of making false statements during the purchase of a firearm. She is expected to make her first appearance before a federal magistrate judge on or before June 22, 2018.
According to court documents, in February 2018, Livingston is alleged to have illegally purchased a firearm for Holt, a convicted felon, at a licensed federal firearms dealer located in Portland.
ATF agents obtained a search warrant on Holt and Livingston’s NE Portland residence. On April 4, 2018, while surveilling Holt and the residence, agents contacted Holt and conducted a search of his person. Holt possessed two cell phones, two bundles of cash, two sets of keys, and seven small baggies of cocaine weighing approximately 11.5 grams.
Later the same day, agents conducted a search of the residence where they found materials consistent with drug trafficking including digital scales, small baggies, and Inositol, an agent commonly used for “cutting” cocaine. Subsequent searches of the residence revealed a locked safe containing $46,100 in cash, two large plastic totes containing approximately 14 pounds of marijuana, U.S. Postal Service mailing labels, a heat sealer and food saver bags. Agents also found a Ruger AR-556 rifle, a Taurus 9mm pistol and a loaded M&P Shield .40 caliber firearm with an attached Crimson Trace laser.
Searches conducted of Holt and Livingston’s phones revealed numerous text and picture messages referencing marijuana and bank deposits. Messages were exchanged with phone numbers in North Carolina, Georgia, Texas and Florida. These messages included photos of bulk marijuana, shipping receipts, and bank deposit receipts.
An indictment is only an accusation of a crime; defendants are presumed innocent unless and until proven guilty.
Pawtucket Man Sentenced to 81 Months in Federal PrisonRead the Press Release
PROVIDENCE, RI – A Pawtucket man previously convicted on drug trafficking and firearm charges, and who became the focus of a joint Pawtucket Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and ATF Task Force drug trafficking investigation, has been sentenced to more than 6 years in federal prison for being in possession of significant quantities of crack cocaine, marijuana, and Oxycodone, and a loaded firearm.
Estafano J. Lobo, 26, was sentenced by U.S. District Court Chief Judge William E. Smith to 81 months in federal prison, to be followed by four years supervised release. Lobo pleaded guilty on March 20, 2018, to possession with intent to distribute cocaine base, possession with intent to distribute Oxycodone, possession with intent distribute marijuana, and felon in possession of a firearm.
Both the government and the defense recommended the court impose a sentence of 81 months of incarceration. The U.S. Sentencing Guideline imprisonment range in this matter is 92-155 months.
According to information presented to the Court, an investigation into Lobo’s drug trafficking activities by Pawtucket Police detectives, ATF agents, and members of the ATF Task Force, included an undercover purchase of narcotics from Lobo on October 2016. On October 25, 2016, the detectives, agents and members of the ATF Task Force executed a court-authorized search of Lobo’s residence and seized 53.34 grams of cocaine base, 544.15 grams of marijuana, 56 pills each containing 20 milligrams of oxycodone, a .357 caliber revolver with five rounds of hollow point bullets, and $13,316 cash.
According to court records, Lobo was previously convicted on Rhode Island and Massachusetts state court drug trafficking and firearm charges.
Lobo’s sentence is announced by United States Attorney Stephen G. Dambruch, Pawtucket Police Chief Tina Goncalves, and Mickey Leadingham, Special Agent in Charge of the Boston Field Division of ATF.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
###
Owner of Financial Services Business Convicted of Preparing False Tax ReturnsRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted an Annandale man today on charges of conspiracy, aiding in the preparation of false tax returns, mail and wire fraud. The jury also determined that over $1.34 million should be forfeited as proceeds of the crime.
According to court records and evidence presented at trial, Jose Manlapaz, 55, owned and operated a tax preparation business named JBM Financial Services or JBM Financial Group in Falls Church, Virginia. Between 2007 and 2017, Manlapaz prepared thousands of false tax returns for his clients by adding false or inflated items, including education credits, childcare expenses, and fake businesses. Manlapaz knew that the items he added to client returns would cause many clients to be audited, and set up a document mill in the Philippines called TMendoza Accounting Services to fabricate fake receipts and tax forms that he could submit on behalf of his clients to the IRS. Manlapaz made money by charging higher fees for getting clients higher refunds and for preparing fraudulent responses to IRS audit notices. After he learned of the criminal investigation in 2013, Manlapaz and JBM kept preparing false tax returns, but removing his preparer information so it looked like his clients were submitting the returns.
Manlapaz was convicted on Wednesday of conspiracy, aiding in preparation of false tax returns, mail fraud and wire fraud. He faces a maximum sentence of 20 years in prison when sentenced on September 28. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Kelly R. Jackson, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after U.S. District Judge Anthony J. Trenga accepted the verdict. Assistant U.S. Attorneys Katherine L. Wong and Kimberly R. Pedersen 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. 1:17-cr-115.
Ohio Man Sentenced to 16 Years in Prison for Providing Support to ISIS, Being a Felon in Possession of FirearmsRead the Press Release
Amir Said Rahman Al-Ghazi, 41, aka Robert C. McCollum, of Sheffield Lake, Ohio, was sentenced to 16 years in prison for one count of providing material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, as well as two counts of being a felon in possession of firearms.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Justin E. Herdman for the Northern District of Ohio, and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division made the announcement.
“The National Security Division is committed to identifying and prosecuting those who seek to provide material support to terrorist groups like ISIS.” said Assistant Attorney General Demers. “I want to thank the prosecutors and our partners in law enforcement—including the FBI and its Joint Terrorism Task Force—who ensured that this defendant was held accountable for his crimes.”
“This case is a stark reminder that ISIS is more than an abstract threat,” said U.S Attorney Herdman. “Through social media and other means, ISIS and groups like it seek to radicalize people of all backgrounds into its world of violence.”
“This case demonstrates law enforcement’s number one priority – to keep our communities and our nation safe,” said Special Agent in Charge Anthony. “It is clear that no area is immune from the influence of ISIS and its supporters. We hope this case will serve as a strong message to others who may consider providing support to terrorists. The FBI and our Joint Terrorism Task Force partners are committed to identifying and stopping these individuals.”
Al-Ghazi, who changed his name from Robert McCollum last year, pledged his support to ISIS and Abu Bakr Al-Baghdadi via social media in 2014. From July 2014 to June 2015, Al-Ghazi made multiple statements trying to persuade others to join ISIS. He also expressed his own desire to perpetrate an attack on the United States and had attempted to purchase an AK-47 assault rifle. Al-Ghazi has communicated with individuals he believed to be members of ISIS in the Middle East and took steps to create propaganda videos for ISIS, according to court documents.
This case was investigated by the FBI’s Joint Terrorism Task Force. This case is being prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd of the Northern District of Ohio, with assistance from Trial Attorney Erin Creegan of the National Security Division’s Counterterrorism Section.Opioid Crisis Update:Read the Press Release
SIOUX FALLS, SD – In the ongoing coordinated law enforcement effort to combat the opioid crisis in South Dakota, United States Attorney Ron Parsons announces that two more individuals have been indicted by a federal grand jury and made their initial appearances before federal magistrate judge Veronica L. Duffy on heroin- and fentanyl-related charges.
Andy Ontiveros, age 38, of South Gate, California, was indicted by a federal grand jury for possession with intent to distribute heroin and fentanyl. Ontiveros was found to be in possession of several pounds of heroin and fentanyl by the Minnehaha County Sheriff’s Office and South Dakota Highway Patrol. This is believed to be the largest seizure of both heroin and powdered fentanyl in South Dakota history.
In addition, Corrod Phillips, age 26, of Chicago, Illinois, was indicted by a federal grand jury for possession with intent to distribute heroin. Phillips was arrested by Sioux Falls Area Drug Task Force members in possession of several grams of heroin.
Both men appeared before Judge Duffy in federal district court in Sioux Falls on June 15, 2018. Phillips was returned to the custody of the Minnehaha County Sheriff, and Ontiveros was placed into the custody of the U.S. Marshals. If convicted, Phillips faces a maximum of twenty years in federal prison; Ontiveros faces a mandatory period of 10 years in federal prison and a maximum of life.
The U.S. Attorney’s Office is working closely with the Sioux Falls Area Drug Task Force, Minnehaha County Sheriff’s Office, Sioux Falls Police Department, South Dakota Highway Patrol, South Dakota Division of Criminal Investigation, the Drug Enforcement Administration, and our other federal, state and local law enforcement partners to investigate and prosecute these cases.
“Our local law enforcement partners deserve all of the credit for these investigations and arrests,” said U.S. Attorney Parsons. “They have taken a tremendous amount of these deadly drugs off of the street – enough to kill thousands of people. We owe a debt of gratitude to these dedicated teams of law enforcement professionals who are working hard every day to save lives by keeping this poison out of our communities.”
The charges are merely accusations and these defendants are presumed innocent until and unless proven guilty.
North Providence Dentist Pleads Guilty to Tax EvasionRead the Press Release
PROVIDENCE, RI – A North Providence, RI, dentist pleaded guilty in U.S. District Court in Providence on Tuesday to tax evasion, admitting that he diverted and failed to report as much as $1.2 million dollars in payments made to his business, announced United States Attorney Stephen G. Dambruch and Kristina O'Connell, Special Agent in Charge of Internal Revenue Service Criminal Investigation (IRS-CI).
Appearing before U.S. District Court Chief Judge William E. Smith, Lawrence P. Stephenson, DDS, 72, of Lincoln, RI, whose dental practice is located in North Providence, admitted to the Court that in as early as 2011, he began diverting a portion of his practice’s business receipts by depositing numerous checks from insurance carriers and patients into a personal bank account. An investigation by IRS-CI revealed that Stephenson failed to report approximately $1.2 million dollars paid to his dental practice and deposited elsewhere, thus failing to pay taxes due the IRS.
Over the years Stephenson made significant withdrawals from the personal account, including approximately $530,000 in 2013 and 2014. The funds were transferred to other banks and investment accounts he owned. Some of the funds he withdrew were used to pay personal expenses.
In 2013 alone, Stephenson admitted to underreporting his income to the IRS by more than $320,000.
Stephenson is scheduled to be sentenced on October 12, 2018.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
###
New York Man Pleads Guilty to Attempting to Provide Material Support to ISISRead the Press Release
Parveg Ahmed, 22, of Queens, New York, pleaded guilty today to attempting to provide material support or resources to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Richard P. Donoghue for the Eastern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office, and Commissioner James P. O’Neill of the NYPD, announced the guilty plea, which was accepted by U.S. District Judge Ann M. Donnelly.
As detailed in publicly filed court documents, the defendant is a U.S. citizen who traveled to Saudi Arabia in June 2017, purportedly to celebrate an Islamic religious holiday. Upon his arrival in Saudi Arabia, the defendant attempted to travel to Syria to join ISIS. The defendant was apprehended in a country bordering Syria, during his attempted travel to ISIS-controlled territory. Ahmed was deported back to the United States on Aug. 28, 2017, where he was arrested at John F. Kennedy International Airport in New York.
Prior to his travel, the defendant had repeatedly expressed support on social media for ISIS and for individuals who provided support to the foreign terrorist organization’s mission of violent extremism. On July 17, 2017, JTTF agents obtained a search warrant for the defendant’s personal computer, and learned, among other things, that the defendant had viewed or listened to recordings of radical Islamic clerics Anwar al-Awlaki and Abdullah el-Faisal. Al-Awlaki was a U.S.-born cleric and prominent leader of the foreign terrorist organization al-Qaeda in the Arabian Peninsula who was killed on or about Sept. 30, 2011. El-Faisal, a Jamaican-born cleric, was found guilty in the United Kingdom of, among other things, solicitation to commit murder, for preaching to followers to kill individuals, including Americans, because he deemed them to be enemies of Islam. Additionally, agents learned that, on the same day the defendant left the United States for the Middle East, the defendant researched how to erase the data on his computer.
The defendant faces a statutory maximum of 20 years in prison at sentencing. The maximum potential penalty is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Assistant U.S. Attorneys Craig R. Heeren and Margaret E. Lee of the Eastern District of New York are in charge of the prosecution, with assistance from Trial Attorney Joshua Champagne of the National Security Division’s Counterterrorism Section.New York Man Admits Producing Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Pearl River, New York, man today admitted photographing and filming a child engaged in sexually explicit conduct and sharing those images online, U.S. Attorney Craig Carpenito announced.
Richard Murphy, 32, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with sexual exploitation of a minor.
According to documents filed in the case and statements made in court:
Murphy admitted that in December 2016, he persuaded a child to engage in sexually explicit conduct for the purpose of taking photos and videos of that conduct. Murphy also admitted that he took video of the child performing a sex act on him. In addition, Murphy admitted that he shared the sexually explicit images with another individual online.
The sexual exploitation charge carries a mandatory minimum sentence of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine. Sentencing is scheduled for Sept. 25, 2018.
U.S. Attorney Carpenito credited special agents of Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Brian Michael, with the investigation.
The government is represented Assistant U.S. Attorneys Danielle Alfonzo Walsman, Chief of the U.S. Attorney’s Office Public Protection Unit, and Leticia Vandehaar, Chief of Staff to the U.S. Attorney.
Defense counsel: David I. Goldstein, Chestnut Ridge, New York
New Orleans Man Sentenced for Federal Gun and Drug ChargesRead the Press Release
U.S. Attorney Duane A. Evans announced that KENZIE FAULK, age 58, of New Orleans, was sentenced on June 14 by United States District Court Judge Nannette Jolivette-Brown to credit for time served, for violating federal gun and drug laws. The United States Attorney’s Office charged KENZIE FAULK with possessing a firearm while being a convicted felon and conspiracy to possess marijuana with the intent to distribute.
According to court documents, on October 16, 2016, FAULK, a convicted felon, attempted to board a Southwest Airlines flight, departing from Louis Armstrong New Orleans International Airport, while he was in possession of a fully loaded revolver. TSA personnel located the weapon in a bag that FAULK was attempting to carry aboard the plane, which was destined to Los Angeles. TSA personnel became aware that a gun was inside of the bag when the TSA x-ray scan machine alerted to its presence. TSA agents confiscated the gun prior to FAULK boarding the plane.
In the days following his arrest, members of the FBI learned that FAULK was trafficking marijuana though the U.S. postal service. FBI agents conducted a search of FAULK’s residence and located a wooden crate that had been shipped from Los Angeles to New Orleans. After executing a search warrant, FBI agents located and confiscated three cellophane wrapped packages of high-grade marijuana inside of the crate, which was addressed to FAULK.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U.S. Attorney Duane A. Evans praised the work of the Federal Bureau of Investigation and the TSA in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution.
Nationwide Wound Services Provider Agrees to Pay Nearly $400,000 to Resolve False Claims Act AllegationsRead the Press Release
Healogics, Inc., a Florida-based provider of wound care services with clinics across the country, agreed to pay $398,162.69 to resolve False Claims Act allegations pertaining to improper coding. Specifically, the United States alleged that, from January 1, 2012, through June 30, 2017, Healogics submitted claims to Medicare, Medicaid, and Tricare using Modifier 25 to signify that a separate evaluation and management service was performed on the same date as another procedure when no such separate service was performed.
Because a private citizen filed a qui tam, or whistleblower, lawsuit raising the civil allegations, Healogics agreed to pay the citizen’s law firm an additional $48,694.37 in fees. That private citizen is also entitled to receive $91,577.42 of the recovery pursuant to the qui tam provisions of the False Claims Act. Those provisions permit private individuals with knowledge of wrongdoing to bring suit on behalf of the government for false claims and share in any recovery.
“This is yet another example of our office’s commitment to ensuring taxpayer money is well spent and health care providers play on a level playing field,” said United States Attorney Peter E. Deegan, Jr. “We encourage citizens with knowledge of wrongdoing by health care providers to bring those matters to our office’s attention.”
The case was investigated by the Department of Health and Human Services Office of Inspector General. The case file number is 16-cv-3016-MWB.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Follow us on Twitter @USAO_NDIA.
Multiple Defendants Plead Guilty to Drug Conspiracy and Firearms Charges in Federal Gang ProsecutionRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Joshua Randall, age 30, Brandon Randall, age 29, and Lee Tracy Riggins, Jr., age 27, pled guilty to participating in a drug conspiracy that operated in the Florence, Charleston, and Myrtle Beach areas of South Carolina. In addition, Joshua Randall pled guilty to possessing a firearm in furtherance of a drug trafficking crime, and Lee Tracy Riggins, Jr., pled guilty to conspiring to possess firearms in furtherance of a drug trafficking crime. Joshua Randall faces the possibility of life imprisonment as a result of his guilty plea, while Brandon Randall and Lee Tracy Riggins, Jr. face possible sentences of imprisonment of 20 years and 40 years respectively.
Assistant U.S. Attorney Andy Moorman and Assistant U.S. Attorney Everett McMillian are prosecuting the case.
Moorman told the Court during proceedings that these Defendants, working with other co-defendants, distributed heroin, cocaine, and/or marijuana to customers in Florence and Myrtle Beach.
The investigation has targeted members of the Billie East Side Bloods, a set of the United Blood Nation, and others who formed an agreement to distribute heroin, fentanyl, cocaine, and marijuana in South Carolina, and to traffic in and possess firearms for the purpose of advancing the drug conspiracy.
The investigation was and is being conducted by the FBI, the DEA, the Horry County Sheriff’s Office, the Horry County Police Department, the Myrtle Beach Police Department, the North Myrtle Beach Police Department, and the Georgetown Police Department.
#####
Mexican National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Duane A. Evans announced that RAMIRO MARTINEZ-RAMIREZ, age 42, a native of Mexico, was sentenced on June 15, 2018, to time served by U.S. District Court Judge Susie Morgan for illegal reentry of a removed alien.
In addition to being sentenced to time served, MARTINEZ-RAMIREZ was sentenced to one year of supervised release.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement – Enforcement and Removal Operations in investigating this matter. Assistant United States Attorney Chandra Menon was in charge of the prosecution.
Mexican Citizen Sentenced to Prison for Possessing a Firearm to Support of a Drug Trafficking CrimeRead the Press Release
PHOENIX – On June 18, 2018, Patricia Calderon-Monarrez, 47, of Sinaloa, Mexico, was sentenced by U.S. District Judge Douglas L. Rayes to 60 months in prison. Calderon-Monarrez had previously pleaded guilty to possessing a firearm in furtherance of a drug trafficking crime. Calderon-Monarrez does not have legal status in the United States and is subject to removal from the United States when she is released from prison.
On Oct. 5, 2017, federal agents approached Calderon-Monarrez in a parking lot while conducting an investigation into a Phoenix-based drug trafficking organization. A subsequent search of Calderon-Monarrez revealed a loaded firearm and ammunition in her purse. When agents searched the vehicle Calderon-Monarrez arrived in, they located more than 20 pounds of methamphetamine with a street value of more than $500,000, multiple brick-shaped packages containing more than nine pounds of cocaine with a street value of almost $100,000, and a backpack containing more than $64,000 in cash.
The investigation was led by the Drug Enforcement Administration and the Glendale Police Department, with assistance from the Phoenix Police Department, as part an operation supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The prosecution was handled by Matthew Binford, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-1353-PHX-DLR
RELEASE NUMBER: 2018-088_Calderon-Monarrez
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Man Sentenced to Conspiracy to Distribute and Possess with the Intent to Distribute HeroinRead the Press Release
U.S. Attorney Duane A. Evans announced that MICHAEL PENN, age 41, of Tickfaw, was sentenced on June 13 by United States District Court Judge Susie Morgan to a term of imprisonment 72 months for violating a federal drug law, conspiracy to distribute and possession with the intent to distribute heroin.
According to court documents, PENN was the target of a narcotics investigation that was investigated by members of the Drug Enforcement Administration and the Hammond Police Department. On five separate occasions, PENN sold heroin to an undercover officer with the Hammond Police Department at various locations within the Hammond area. Each transaction was audio and video recorded.
U.S. Attorney Duane A. Evans praised the work of the Drug Enforcement Administration and the Hammond Police Department in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution.
Maine Man Sentenced to 48 Months in Prison for Investment Fraud Scheme and Failing to File Federal Tax ReturnsRead the Press Release
CONCORD - William Bischoff, 76, of York, Maine, was sentenced to serve 48 months in prison for operating a multi-million dollar investment fraud scheme and failing to file federal income tax returns, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, from 2009 through September 2017, Bischoff defrauded more than two dozen clients of his financial advisory business by falsely promising to invest their money in real estate, structured legal settlements, high yield notes, and a start-up recycling business. He further guaranteed returns that far exceeded market norms. Bischoff sent many solicitations to the victims of the fraud scheme by e-mail.
In total, Bischoff stole $5,647,446.33 from the defrauded investors. To conceal that conduct, Bischoff used money he received from some victim investors to make payments to other victim investors. He also provided monthly account statements to the victim investors that falsely represented the balance of their (fictitious) investment accounts.
Bischoff’s also failed to file individual federal tax returns for the four-year period from 2011 to 2015, which resulted in a $568,845 tax revenue loss to the U.S. Treasury.
Bischoff pleaded guilty on March 9, 2018, to one count of wire fraud and one count of willfully failing to file federal tax returns.
“It is hard to comprehend the emotional and financial harm that Mr. Bischoff inflicted on the victims of his criminal conduct,” said U.S. Attorney Murray. “It is my sincere hope that the prosecution of this case will deter other people from engaging in similar conduct. Those who commit financial crimes should understand that we will aggressively prosecute them and will not hesitate to recommend substantial prison sentences.”
“Mr. Bischoff betrayed his unsuspecting clients and defrauded them out of millions of dollars through an elaborate scheme he devised for his own personal gain,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “The FBI is committed to working with our law enforcement partners in rooting out those who engage in financial crimes like this. Those who abuse their positions of trust to illegally enrich themselves will be held accountable for their actions.”
The Deputy Director of the New Hampshire Bureau of Securities Regulation, Jeffrey Spill, said, "The Bureau was pleased to do its part in this coordinated investigation. When the fraud was uncovered, the agencies acted quickly to shut the scheme down which prevented further losses."
"The role of IRS Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel," said Special Agent in Charge Kristina O’Connell of Internal Revenue Service Criminal Investigation, Boston Field Office. "The federal tax laws are routinely violated in these cases which can add additional jail time. “
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division, and the New Hampshire Bureau of Securities Regulation. Assistant United States Attorney Robert Kinsella prosecuted the case, which was originally handled by former Assistant U.S. Attorney Bill Morse.
###
Madison County Man Pleads Guilty as Convicted Felon Trying to Buy Gun with Counterfeit MoneyRead the Press Release
HUNTSVILLE – A Madison County man pleaded guilty today in federal court to being a convicted felon and trying to buy a pistol with counterfeit money, announced U.S. Attorney Jay E. Town, U.S. Secret Service Special Agent in Charge Michael Williams and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
MONTREZ CHEBEIR MARTIN, 33, pleaded guilty before U.S. District Judge Abdul Kallon to one count of passing counterfeit obligations or securities and one count of being a convicted felon in possession of a firearm. His sentencing is scheduled Oct. 2.
“Felons who desire to buy firearms will be aggressively prosecuted and should concern all of us. Felons who desire to buy firearms with counterfeit bills exacerbate our concerns even more,” Town said. “Thanks to the victim’s quick action in reporting the crime to police, and to the dedicated work of ATF and the Secret Service, this felon will serve federal punishment in a federal facility under the federal guidelines.”
“This individual was prevented from illegally purchasing a firearm with counterfeit currency,” Williams said. “This case highlights one of the many ways the U.S. Secret Service collaborates with local, state, and federal agencies to combat financial crimes affecting our communities.”
“This court action demonstrates ATF’s commitment to target illegal firearms trafficking in all forms, to include the use of the internet,” Watson said. “ATF’s Crime Gun Intelligence leverages technology to reduce violent firearms-related crimes.”
According to Martin’s plea agreement with the government, he attempted his gun purchase with counterfeit money as follows:
Martin answered an individual’s advertisement of a Smith & Wesson .40-caliber pistol and 450 rounds of ammunition for sale on the website, armslist.com, in September 2017. Martin and the seller agreed to meet in a Decatur business parking lot so Martin could buy the gun.
The seller first asked Martin if he were a felon, which Martin said he was not, and the seller then gave Martin the pistol and ammunition. The agreed price for the gun was $450. Martin gave the seller $400 and as he began counting it, Martin started walking quickly away. The seller realized the money was counterfeit, seeing Chinese characters on three $100 bills.
The seller pulled a pistol and jumped in front of the vehicle Martin was in, telling Martin to open the door and place the pistol and ammunition on the ground, and Martin complied before driving away.
The seller reported the incident to police and later picked Martin out of a photo lineup.
The maximum penalty for passing counterfeit obligations is 20 years in prison and a $250,000 fine, and the maximum penalty for being a felon in possession of a firearm is 10 years in prison and a $250,000 fine.
The Secret Service and ATF investigated the case in conjunction with the Decatur and Huntsville police departments. Assistant U.S. Attorney Davis Barlow is prosecuting the case.
###
Louisiana Man Pleads Guilty to Attempting to Purchase Cocaine with Intent to DistributeRead the Press Release
Gulfport, Miss. – Saul Guzman Ontiveros, age 42, of Terrytown, Louisiana, pled guilty yesterday before U.S. District Judge Louis Guirola, Jr. to attempting to purchase 5 kilograms of cocaine with intent to distribute, announced U.S. Attorney Mike Hurst and DEA Assistant Special Agent in Charge J. Derryle Smith.
In January and February of this year, a confidential source was approached by Guzman Ontiveros about purchasing cocaine from the source. Guzman Ontiveros agreed to purchase 5 kilograms of cocaine for $105,000. The government was able to seize $104,000 over the course of several days prior to the arrest of the defendant.
Guzman Ontiveros will be sentenced on September 27, 2018 by Judge Guirola, and faces a maximum penalty 40 years in prison and a $5 million fine.
The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John Meynardie.
Long Island Man Sentenced for Cyberstalking and Sending Drugs to Ex-GirlfriendRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.--U.S. Attorney James P. Kennedy, Jr. announced today that Thomas Traficante, 23, of Long Island, NY, who was convicted of cyberstalking and distribution of a controlled substance, was sentenced to 48 months by U.S. District Judge David G. Larimer
Assistant U.S. Attorneys Melissa M. Marangola and Richard A. Resnick, who are handling the case, stated that between October 2017 and December 2017, the defendant sent numerous threatening text messages to his ex-girlfriend (the Victim), her college classmates, and her housemates. The messages stated “its not safe out there tonight,” “there are various people among different orgs who have hurt me. My plan is to hurt them,” and “the only thing that helps is revenge.” Traficante also sent the Victim’s housemates numerous threatening voicemails, including one with a voice disguising device that stated, “I’m in the house.” The Victim changed her telephone number in order to avoid the defendant but he contacted her new telephone and her housemates, stating, “your all crazy if you think I’m not still out there.”
In addition, posing as the Victim, Traficante created a false prostitution advertisement on Backpage.com, which included the Victim’s new telephone number. The Victim received over 60 telephone calls from men seeking sexual encounters. Traficante also hacked into the Victim’s email and social media accounts, cellular telephone, as well as her and college account, which contained her grades, tests and assignments.
On one occasion, the defendant sent the Victim a message asking where she was together with a screenshot of her physical location. Such communications caused the Victim emotional distress. Traficante also hacked the Victim’s Amazon account and purchased a book about stalking, titled “I’m Watching You,” and sent it to her.
In November 2017, Traficante used a BB gun to shoot out the window of the Victim’s parents’ vehicle parked outside of their home as well as a window in their house.
Also, the defendant sent cocaine, a Schedule II controlled substance, to the Victim’s college mailbox on November 2 and anonymously contacted university police to advise them a package containing cocaine was being mailed to the Victim. Then, on November 8, 2017, Traficante mailed MDMA, a Schedule I controlled substance, to the Victim. On November 20, 2017, the defendant mailed a third package to the Victim which once again contained cocaine.
Judge Larimer admonished the defendant for terrorizing the Victim and the campus of Geneseo with threats that would result in “as much destruction as possible” and possibly death to the students attending Geneseo. Assistant U.S. Attorney Marangola told the court that, although there is no way to determine whether Traficante would have actually shot up the campus, a loaded AR 15 rifle was located in his residence at the time of his arrest. Marangola argued the verbal threats, the possession of the firearm and his escalating behavior were extremely concerning and that his arrest may have stopped a tragedy.
“I applaud the efforts of the members of the Geneseo University Police who did a tremendous job is tracking down the source of threatening text messages sent to students,” said U.S. Attorney Kennedy. “Their efforts very well may have prevented an unspeakable act of violence from occurring resulting in tragedy and heartbreak.”
The investigation also identified a prior victim who Traficante subjected to similar digital harassment in 2014-2015.
Today’s sentencing is the result of an investigation by the Geneseo University Police, under the direction of Chief Thomas Kilcullen, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
Lockesburg Man Sentenced to 30 Years in Federal Prison for Receiving Child PornographyRead the Press Release
Texarkana, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Nathan Karl Thomas, age 25, of Lockesburg, Arkansas was sentenced today to 360 months in federal prison followed by ten years of supervised release on two counts of Receipt of Child Pornography. Thomas was also ordered to pay $3,163.96 in restitution. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Texarkana.
According to court records, the York Regional Police Special Victims Unit in Canada initiated an investigation in 2014 of the distribution of child pornography, based on information that a Canadian citizen had uploaded to his computer images of minors engaged in sexually explicit conduct. Law enforcement officers in Canada learned that the images received by the Canadian citizen were sent from an internet protocol (IP) address associated with a residence in Texarkana, Texas.
Federal law enforcement officials in Texas identified the user of the IP address that sent the contraband images to the Canadian citizen. In December 2014, a search warrant was executed at Thomas’s residence in Lockesburg, Arkansas. Thomas’s cell phone and other electronic communication devices were seized pursuant to the search warrant and examined. The forensic examination of Thomas’s phone resulted in the recovery of Kik Messenger chat logs between Thomas and a minor female that contained sexually explicit conversations as well as photographs of the minor female engaged in sexual poses.
In addition to the images recovered from Thomas’s phone of the minor female engaged in sexually explicit conduct, forensic examiners discovered on Thomas’s cell phone a video depicting an adult female sexually abusing a two-year-old male. Law enforcement officers were able to identify the adult female as Haidy Branson, a Texas resident. Branson told law enforcement officers that she produced the video and sent it via the internet to Thomas at his request. Branson was prosecuted in the Eastern District of Texas for her production of the video containing images of the sexual abuse of the two-year-old child. Branson is serving a 21-year sentence in the federal Bureau of Prisons.
Thomas plead to an information in March of 2016.
This case was investigated by the Texarkana Child Advocacy Center, National Center for Missing and Exploited Children, the Arkansas State Police Cybercrimes Unit, the Department of Homeland Security, and the Arkansas Internet Crimes Against Children Taskforce. Assistant United States Attorneys Kyra Jenner and Ben Wulff prosecuted the case for the United States.
Last Defendant of the Meth Ring Pleads GuiltyRead the Press Release
St. Louis - The last of 52 defendants charged in a wide-ranging methamphetamine conspiracy entered a guilty plea before United States District Judge Catherine D. Perry on Wednesday, June 13, 2018. Defendant Israel Angeles-Moctezuma, also known as “Amigo,” entered his plea on the morning his Federal conspiracy trial was scheduled to begin. Without benefit of a plea agreement, Angeles-Moctezuma, 41, of Stockton, California, admitted to conspiring with others to transport methamphetamine into the St. Louis Metro area for distribution. He is scheduled to be sentenced in September 2018. He faces a mandatory minimum term of imprisonment of 10 years, and a maximum sentence of life.
The Drug Enforcement Administration’s investigation into Angeles-Moctezuma’s organization spanned some two years, and resulted in the seizure of nearly 200 pounds of methamphetamine, most of which was nearly 100% pure. In addition, the DEA seized at least 18 firearms and over $300,000 in cash, all of which has been forfeited to the United States.
Included among the seizures was a 56-pound load of methamphetamine recovered in South St. Louis in April 2016, believed to have been the largest single seizure of methamphetamine in the history of the Eastern District of Missouri. Eight individuals were arrested and charged at that time, all of whom entered guilty pleas in a separate case. Two female couriers were also arrested after they were discovered to be carrying 10 pounds of methamphetamine through O’Fallon, Missouri in July 2016. Both women subsequently pled guilty. The government has alleged that Angeles-Moctezuma was responsible for hiring the couriers to transport these shipments to St. Louis, where the methamphetamine was distributed through a network of people acting at his direction. Angeles-Moctezuma and the remaining 41 co-conspirators were indicted by a Federal Grand Jury in September 2016. Angeles-Moctezuma was arrested in Stockton, California in October 2016 after investigators learned that he was preparing to flee the United States.
Most of Angeles-Moctezuma’s co-conspirators have already been sentenced. Notable sentences include:
Alan Cardenas, 27, of Stockton, CA --- 262 months
Michael Chandler, 35, of Kansas City, MO – 240 months
Amanda Young, 39, of O’Fallon, MO -- 228 months
Holly Politte, 40, of DeSoto, MO – 180 months
Mark Huse, 34, of St. Louis, MO – 188 months
Kenneth Karrenbrock, 39, of Arnold, MO -- 192 months
Nearly all of the 52 defendants have significant criminal histories, with some having previously served Federal sentences for drug offenses.
The Office of the United States Attorney and the Drug Enforcement Administration extend their thanks to the St. Francois County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Overland Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, all of which assisted in the investigation.
Jury Convicts Vero Beach Attorney of Conspiracy and Making False Statements to a Federally Insured InstitutionRead the Press Release
On June 15, 2018, a federal jury in West Palm Beach, Florida, convicted Vero Beach attorney Eric B. Granitur, 60, of participating in a criminal conspiracy and making false statements to a federally insured institution.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Gavin Gumbinner, Resident Agent in Charge, Fort Pierce, Florida, Federal Bureau of Investigation, (FBI); and Edwin Bonano, Special Agent in Charge, Tampa, Florida, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG) made the announcement.
Granitur was convicted, at trial, of one count of conspiracy to commit the offense of making false statements to a federally insured institution, in violation of Title 18, United States Code, Section 371; and two counts of making a false statement to a federally insured institution, in violation of Title 18, United States Code, Section 1014. Granitur’s co-conspirators, George Heaton, Deborah Dentry Baggett, and Stephen McKenzie, have already pled guilty and are awaiting sentencing.
According to the evidence presented at trial, in 2009, Eric Granitur, a member of the Florida Bar, owned and operated Live Oak Title, which conducted two real estate closings for the purchase of five condominiums at the Vero Beach Hotel and Spa. The seller and developer of the Vero Beach Hotel and Spa, George Heaton, offered numerous incentives to buyer Stephen McKenzie to purchase the condominiums. Heaton agreed to pay the “cash-to-close” amount that the buyer McKenzie was expected to bring to closing. Additionally, Heaton paid for the closing costs and paid McKenzie additional incentives.
Granitur’s title company, Live Oak Title, conducted the closings for the sales of the Vero Beach Hotel and Spa condominium units sold to buyer Stephen McKenzie. As an escrow agent, Granitur was required to truthfully and accurately prepare and distribute a settlement statement to the financial institutions, known as a “HUD-1,” in preliminary form for review by the financial institution, prior to the closing of escrow. The closing statement was required to accurately reflect, among other information, the sales price, the closing funds provided by the borrower and all of the seller’s contributions. As an escrow agent, Granitur was responsible for receiving and holding in trust, in an escrow account, the mortgage loan proceeds from the financial institutions that financed the purchase of the condominium units, and he was responsible for disbursing those loan proceeds only after final approval by the financial institutions.
On two occasions, Granitur knowingly caused a false closing statement to be transmitted to a federally insured financial institution. The HUD-1 closing statements failed to truthfully disclose seller credits and incentives. Additionally, the closing statements failed to disclose that the seller was paying the buyer’s “cash-to-close.” The financial institutions relied upon the closing statement in authorizing the release of funds.
Sentencing will take place before United States District Judge Robin L. Rosenberg, in West Palm Beach. A sentencing date has not yet been set.
Mr. Greenberg commended the investigative efforts of the FBI and FHFA-OIG. This case is being prosecuted by Special Assistant United States Attorney Joseph A. Capone and Assistant United States Attorney Daniel E. Funk.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Jackson Man Pleads Guilty under Project EJECT to Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Shane Christopher Williams, 25, of Jackson, pled guilty yesterday before U.S. District Judge Carlton Reeves to possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On August 12, 2016, the Jackson Police Department stopped a vehicle on Capitol Street near Longino Street for making an illegal U-turn. Williams was the front seat passenger. The officer observed Williams looking back and reaching into the back seat prior to the car stopping. The officer had to give both the driver and Williams commands over the loud speaker to place their hands on the dashboard of the car before the officer could approach. A Hi-Point .380 caliber pistol was recovered from under the front passenger’s seat where Williams had been sitting.
Judge Reeves will sentence Williams on August 19, 2018 at 9:30 a.m. Williams faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and prosecuted by Assistant U.S. Attorney Glenda R. Haynes.
Intermediary in Fraudulent Money Order Cashing Scheme Sentenced to 20 Months in PrisonRead the Press Release
CAMDEN, N.J. – A Knoxville, Tennessee, man was sentenced today to 20 months in prison for recruiting individuals to cash fraudulent money orders that he received from a former South Jersey U.S. Postal Service (USPS) employee, U.S. Attorney Craig Carpenito announced.
Eugene Bowen, 35, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of transmitting and presenting unlawfully issued USPS money orders with intent to defraud the United States. Judge Rodriguez imposed the sentence today in Camden federal court.
According to the documents filed in this case and statements made in court:
Bowen admitted that Marc Saunders, 40, of Sicklerville, New Jersey, a former employee at the USPS branch in New Lisbon, New Jersey, provided him with stolen money orders and told him to recruit others to cash them. Bowen admitted that he recruited individuals to cash the money orders and paid them a small fee, while keeping the rest of the money for Saunders and himself.
In addition to the prison term, Judge Rodriguez sentenced Bowen to three years of supervised release and ordered to pay restitution of $18,470.
On Dec. 12, 2017, Saunders pleaded guilty to his role in the scheme, including producing the money orders with a stolen imprinting machine and giving them to others to cash. His sentencing is scheduled for July 24, 2018.
Acting U.S. Attorney Carpenito credited special agents of the USPS, Office of the Inspector General, under the direction of Acting Special Agent in Charge Kenneth M. Cleevely of the Eastern Area Field Office, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Alyson M. Oswald of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: John Brennan Esq., Marlton, New JerseyIndictment: Three Wichita Men Paid for Athletic Shoes with Counterfeit MoneyRead the Press Release
WICHITA, KAN. – Three Wichita men were indicted Tuesday on charges of making counterfeit money and using it to pay for athletic shoes, U.S. Attorney Stephen McAllister said.
Douglas D. Blocker, 21, Wichita, Kan., Cornelius D. Wilson, 22, Wichita, Kan., and Traevon A. McGairty, 22, Wichita, Kan., are charged with one count of counterfeiting and one count of passing counterfeit currency. In addition, Blocker is charged with another count of passing counterfeit currency.
The indictment alleges the defendants used a photocopy machine to make counterfeit $20 bills. In one count, Blocker is alleged to have met a victim at the Towne West shopping center and paid him $480in counterfeit bills for four pairs of Jordan athletic shoes. In another count, the three defendants are alleged to have met another victim at Towne West and paid him $520 in counterfeit bills for three pairs of athletic shoes.
If convicted, they face a penalty of up to 20 years in federal prison and a fine up to $250,000 on each count. The U.S. Secret Service investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
OTHER INDICTMENTS
Zoanna Bohrer, 44, Erie, Kan., is charged with 13 counts of wire fraud and one count of embezzlement. The indictment alleges she stole an amount exceeding $5,000 from the company where she worked, Professional Insurers of Erie, LLC. She made unauthorized wire transfers from the company’s account to pay her personal credit card bills.
If convicted, she faces up to 20 years in federal prison and a fine up to $250,000 on the wire fraud counts and up to 10 years and a fine up to $250,000 on the embezzlement count. The FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Jackson Lee Andrews, 33, Coffeyville, Kan., is charged with one count of possession with intent to distribute methamphetamine (count one), one count of unlawful possession of a firearm following a felony conviction (count two), one count of unlawful possession of a firearm in furtherance of drug trafficking (count three) and one count of distributing methamphetamine (count four). The crimes are alleged to have occurred in 2017 in Allen County, Kan.
If convicted, he faces up to 20 years in federal prison and a fine up to $1 million on counts one and four, up to 10 years and a fine up to $250,000 on count two, and not less than five years and a fine up to $250,000 on count three. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney David Lind is prosecuting.
Craig Harms, 29, Bel Aire, Kan., is charged with two counts of making false statements to the FBI and one count of falsifying a document with intent to impede an FBI investigation. The crimes are alleged to have occurred in September and October 2016 in Wichita, Kan.
If convicted, he faces up to five years in federal prison and a fine up to $250,000 on the charges of making false statements and up to 20 years and a fine up to $250,000 on the charge of falsifying records in a federal investigation. The FBI, the Wichita Police Department and the Internal Revenue Service investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
Santos Larios-Ajualat, 32, a citizen of Guatemala, is charged with unlawfully re-entering the United States after being deported. He was found Dec. 29, 2017, in Seward County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated.
Agustin Gaona Serrano, 34, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found in November 2017 in Montgomery County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated.
Leonel Delgado-Jaquez, 47, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported (count one) , one count of misusing a Social Security number (count two), one count of using false information to obtain a driver’s license (count three) and one count of aggravated identity theft (count four). He was found June 18, 2018, in Saline County, Kan.
If convicted, he faces up to two years in federal prison and a fine up to $250,000 on count one, up to five years and a fine up to $250,000 on count two, up to 15 years and a fine up to $250,000 on court three, and a mandatory two years (consecutive) on count four. Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney David Lind is prosecuting.
David Hernandez-Rueda, 34, a citizen of Mexico, is charge with unlawfully re-entering the United States after being deported. He was found June 11, 2018, in Sedgwick County, Kan.
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney David Lind is prosecuting.
Josue Asael Barron-Rivera, 19, who is not a citizen of the United States, is charged with unlawful possession of a firearm. The crime is alleged to have occurred May 24, 2018, in Wichita, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to
$250,000. Immigration and Customs Enforcement and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Illegal alien from Honduras pleads guilty to possessing pistol after West Monroe arrestRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced that an illegal alien from Honduras pleaded guilty last week to possessing a pistol after being arrested in West Monroe.
Medardo Zuniga, 36, of Honduras, pleaded guilty June 13, 2018 before U.S. District Judge Terry A. Doughty to one count of possession of a firearm by an illegal alien. According to the guilty plea, a West Monroe police officer conducted a traffic stop on a truck Zuniga was a passenger in on September 15, 2017. Three individuals were in the vehicle including Zuniga. After a search of the vehicle, an empty pistol magazine was found on Zuniga, and a Taurus pistol, model Millenium G2, caliber 9mm with an obliterated serial number was found on the floorboard where he had been sitting. After his arrest, he admitted to being in the United States illegally and to possessing the pistol. The defendant was arrested in 2007 for driving unlawfully and was deported on November 14, 2007.
Zuniga faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of October 2, 2018.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make out neighborhoods safe 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 Session 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 ATF and West Monroe Police Department conducted the investigation. Assistant U.S. Attorney J. Aaron Crawford is prosecuting the case.
Illegal Aliens Sentenced in Federal Court for Illegal Re-entryRead the Press Release
Columbia, South Carolina---- United States Attorney Sherri A. Lydon stated today that the following defendants were sentenced in federal court after previously entering guilty pleas for Reentry of a Removed Alien:
Juan Arturo Ramirez-Rojo, age 39, of Columbia, South Carolina;
Mario Almarez-Juarez, age 24, of Leesville, South Carolina;
Hugo Rolando Canenguez-Montes, age 37, of Rock Hill, South Carolina; and,
Carmen Flores-Bautista, age 39, of Columbia, South Carolina.
United States District Judge J. Michelle Childs sentenced all of the defendants to time served, resulting in a sentence of approximately 2 months for Ramirez-Rojo, 5½ months for Almarez-Juarez, 6 months for Canenguez-Montes, and 2 days for Flores-Bautista. No supervised release was ordered as the defendants are subject to deportation upon completion of their sentences.
Evidence presented at the change of plea and sentencing hearings established that Ramirez-Rojo is a Mexican citizen who had previously been deported at least two times. He was encountered by ICE – Enforcement and Removal Operations Deportation Officers on January 10, 2018, at the Alvin S. Glenn Detention Center after being arrested for Trafficking Cocaine.
Almarez-Juarez is a Mexican citizen who had previously been deported at least 5 times. He was encountered by ICE – Enforcement and Removal Operations Deportation Officers on December 31, 2017, at the Lexington County Detention Center after being arrested for Hit and Run and Driving Without Insurance.
Canenguez-Montes is a citizen of El Salvador who had previously been deported. He was encountered by ICE – Enforcement and Removal Operations Deportation Officers on December 24, 2017, at the York County Detention Center after being arrested for Criminal Sexual Conduct- 1st Degree and Kidnapping.
Flores-Bautista is a Mexican citizen who had previously been deported at least 2 times. She was encountered by ICE – Enforcement and Removal Operations Deportation Officers at the Alvin S. Glenn Detention Center on December 7, 2016, after being arrested for Homicide by Child Abuse.
Agents of ICE – Enforcement and Removal Operations investigated these cases. Assistant United States Attorney William E. Day, II, of the Columbia office is prosecuting these cases.
#####
Illegal Alien Sentenced in Columbia for Illegal Re-entryRead the Press Release
Columbia, South Carolina---- United States Attorney Sherri A. Lydon stated today that Ulises Martinez-Garcia, age 31, of Columbia, South Carolina, was sentenced in federal court in Columbia, South Carolina, for Reentry of Removed Alien, a violation of 8 U.S.C. § 1326. United States District Judge Mary Geiger Lewis, Jr., of Columbia, sentenced Martinez-Garcia to time-served (approximately 6 months imprisonment) with no supervised release as he is subject to deportation upon the completion of his sentence.
Evidence presented at the change of plea hearing established that Martinez-Garcia is a Mexican citizen who had previously been deported at least four times. He was encountered by ICE – Enforcement and Removal Operations Deportation Officers on December 27, 2017 at the Alvin S. Glenn County Detention Center after being arrested for Driving Under the Influence.
Agents of ICE – Enforcement and Removal Operations investigated this case. Assistant United States Attorney William E. Day, II, of the Columbia office is prosecuting the case.
#####
Huntsville Man Sentenced to 15 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
BIRMINGHAM – U.S. District Judge Abdul K. Kallon today sentenced a Huntsville man to 15 years in prison followed by a lifetime of supervised release for attempting to provide material support to the Islamic State of Iraq and al-Sham, or ISIS, a designated foreign terrorist organization.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp Jr. announced the sentence.
AZIZ IHAB SAYYED, 23, pleaded guilty in March to the terrorism charge. He acknowledged that he bought bomb-building ingredients in 2017, that he stated his aspirations to conduct ISIS-inspired attacks on police stations and Redstone Arsenal, and that he attempted to form a cell to conduct violent acts within the United States.
“We will not tolerate threats to our national security from terrorist groups like ISIS, which continues to radicalize and encourage terrorists through the internet,” Demers said. “The defendant, a citizen of this country, plotted to carry out attacks on his fellow Americans in our country, but was thwarted by the close cooperation of our partners in law enforcement. This successful outcome should send a clear message to any other would-be terrorists that the National Security Division will find them and bring them to justice.”
“Aziz Sayyed was inspired by ISIS to kill or harm Americans and he has earned every bit of his prison term,” Town said. “This case, and this investigation, serves as the gold standard for what is possible when federal, state and local law enforcement agencies work together. The FBI did an outstanding job ensuring this investigation was successful by cultivating those layers of law enforcement necessary in cases like this.”
“The FBI’s Joint Terrorism Task Force is dedicated to identifying and bringing to justice those individuals who attempt to provide material support to foreign terrorist organizations, promote violent extremism, and threaten our national security,” Sharp said. “Today’s sentence is a culmination of the tireless efforts of our JTTF, and the invaluable partnership we have with the Huntsville Police Department.”
According to Sayyed’s plea agreement with the government, he attempted to provide services and personnel, namely himself, to ISIS, knowing that the group is a designated foreign terrorist organization
Between January and June of 2017 in Madison County, Sayyed, a U.S. citizen, obtained and viewed ISIS propaganda videos depicting ISIS forces committing bombings, executions by gunshot and beheading, and other violent acts. Sayyed shared the videos and expressed his support for ISIS and for ISIS terrorist attacks around the world, according to his plea agreement.
Sayyed researched and learned how to make triacetone triperoxide (TATP), a highly volatile and extremely dangerous explosive material. He then purchased the necessary ingredients for the explosive and professed his aspiration to use TATP in an explosive belt or a car bomb.
On June 13, 2017, Sayyed met with an individual he understood to be an ISIS member. In fact, the person was an undercover employee of the FBI. Sayyed and the undercover employee discussed the danger of TATP, ISIS’s preference for the use of certain explosives, and Sayyed’s desire to assist ISIS, according to the plea agreement. In that meeting, Sayyed offered to personally carry out attacks on behalf of ISIS.
The FBI investigated the case in conjunction with the Huntsville Police Department, Madison County District Attorney’s Office, Madison County Sheriff's Office, U.S. Army 902 MI Group, Redstone Arsenal’s Garrison Command, University of Alabama at Huntsville Police Department, Alabama Law Enforcement Agency, U.S. Immigration and Customs Enforcement, and Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Henry Cornelius and Davis Barlow prosecuted the case with the assistance of Trial Attorney Joseph Attias of the National Security Division’s Counterterrorism Section.
###
Holyoke Men Charged with Crack Cocaine and Heroin OffensesRead the Press Release
BOSTON – Three Holyoke men were arrested today and charged in federal court in Springfield with distributing drugs.
Pedro Colon Amadeo, 35, and Jean Carlos Rivera, 29, were charged in separate indictments with distribution and possession with intent to distribute cocaine base, also known as crack cocaine. Anthony Rivera, 35, was charged in a third indictment with distribution and possession with intent to distribute heroin.
According to the indictments that were unsealed today, each defendant distributed the drugs in Holyoke between November of 2017 and January of 2018. The indictments are the result of a seven month law enforcement investigation into cocaine and heroin trafficking in Holyoke by members of La Familia gang.
Colon- Amadeo faces up to 40 years in prison, up to a lifetime of supervised release, and a fine of up to $1 million; Anthony Rivera faces up to 30 years in prison, up to a lifetime of supervised release, and a fine of up to $2 million; and Jean Carlos Rivera faces up to 20 years in prison, a lifetime of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Holyoke Police Chief James M. Neiswanger made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Office is prosecuting the cases.
The details contained in the indictments are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Holly Hill Man Pleads Guilty to Conspiracy to Smuggle WildlifeRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Steven Verren Baker, age 38, of Holly Hill, pled guilty to Conspiracy to Smuggle Wildlife, a violation of Title 18, United States Code, § 371. Senior Judge Joseph F. Anderson, Jr., accepted the plea and will sentence Baker at a later date.
Evidence presented at the hearing established that Baker was the ringleader of an international syndicate of wildlife smugglers exchanging turtles protected by international agreements back and forth between the United States and China. The activity took place from January through June 2016. Baker obtained protected turtles from Hong Kong to distribute here in the United States, and he shipped protected turtles from the United States to Asia.
The transactions were set up using the Facebook text messaging feature. Shipments were made internationally through the United States Postal Service. Several packages were intercepted entering the United States at John F. Kennedy International Airport
The maximum penalty faced by Baker is imprisonment for five years, with a potential fine up to $250,000.
The United States Fish and Wildlife Service, the United States Postal Inspection Service, and the South Carolina Department of Natural Resources investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
#####
Heroin Dealer Pleads Guilty to Leading Drug Trafficking OrganizationRead the Press Release
NEWPORT NEWS, Va. – A Hampton man pleaded guilty today to leading a family-run heroin trafficking conspiracy which distributed large quantities of heroin in Virginia.
“Mr. Joe led a large-scale heroin trafficking conspiracy for many years in Hampton Roads,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Investigating and prosecuting heroin and fentanyl trafficking crimes is a top priority of this office as we continue to battle this deadly epidemic. I want to thank our investigative partners at U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Norfolk for their terrific work on this important case.”
According to court documents, William Arthur Joe, aka Pops, aka Unc, aka Rudy K, 67 of Hampton, was the leader of a large heroin trafficking organization on the Virginia Peninsula. The organization received heroin from sources of supply in New York and New Jersey and would then sell it in the Hampton Roads area. As head of the organization, Joe employed multiple family members and acquaintances to distribute the heroin. Joe’s organization was the focus of a two-year investigation involving controlled purchases of heroin, law enforcement surveillance and multiple court authorized wire taps. The Joe organization operated from at least 2014 until Joe’s arrest in June 2017 and was responsible for distributing more than three kilograms of heroin.
Joe pleaded guilty to continuing criminal enterprise and faces a mandatory 20 years in prison when sentenced on September 24. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea. Assistant U.S. Attorney Eric M. Hurt is 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. 4:17-cr-65.
Healogics Agrees to Pay up to $22.51 Million to Settle False Claims Act Liability for Improper Billing of Hyperbaric Oxygen TherapyRead the Press Release
The Justice Department announced today that Healogics, Inc. has agreed to pay up to $22.51 million to settle allegations that it violated the False Claims Act by knowingly causing wound care centers to bill Medicare for medically unnecessary and unreasonable hyperbaric oxygen (“HBO”) therapy. Healogics, a Florida-based company, manages nearly 700 hospital-based wound care centers across the country.
“Medicare beneficiaries are entitled to care based on their clinical needs and not the financial goals of healthcare providers,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “All providers of taxpayer-funded federal healthcare services, whether contractors or direct billers, will be held accountable when their actions knowingly cause false claims for medically unnecessary services to be submitted.”
Medicare covers HBO therapy, a modality in which the entire body is exposed to oxygen under increased atmospheric pressure, as an adjunctive therapy to treat certain chronic wounds. The settlement announced today resolves allegations that from 2010 through 2015, Healogics knowingly submitted or caused the submission of false claims to Medicare for medically unnecessary or unreasonable HBO therapy.
Under the settlement, Healogics has agreed to pay $17.5 million, plus an additional $5.01 million if certain financial contingencies occur within the next five years, for a total potential payment of up to $22.51 million.
“Civil healthcare fraud enforcement has always been a core part of the mission of our office,” said United States Attorney Maria Chapa Lopez for the Middle District of Florida. “With this settlement, our Civil Division confirms its commitment to our nation’s critical struggle against practices that put public health programs at risk.”
In addition to resolving its False Claims Act liability, Healogics has entered into a five-year Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General which includes, among other things, a claims review and a systems review – both to be conducted by an Independent Review Organization.
“When greed is the primary factor in performing medically unnecessary health care procedures on Medicare beneficiaries, both patient well-being and taxpayer funds are compromised,” said Special Agent in Charge Shimon R. Richmond of HHS OIG. “We will continue to thoroughly investigate health care companies that engage in such fraudulent schemes.”
The allegations resolved by this settlement arose from a lawsuit filed by James Wilcox, a former Director for Research and Quality for Medical Affairs at Healogics, and a separate lawsuit filed by Dr. Benjamin Van Raalte, Dr. Michael Cascio, and John Murtaugh, two doctors and a former program director who worked at Healogics-affiliated wound care centers. The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens with knowledge of fraud against the government to bring an action on behalf of the United States and to share in any recovery. The settlement provides for a whistleblower share of up to $4,276,900.
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the United States Attorney’s Office for the Middle District of Florida, and the Department of Health and Human Services Office of Inspector General.
The cases are captioned United States ex rel. Van Raalte, et al. v. Healogics, Inc., 14-cv-283 (M.D. Fla.) and United States ex rel. Wilcox. v. Healogics, Inc., et al., 15-cv-1510 (M.D. Fla.).
The claims settled by this agreement are allegations only, and there has been no determination of liability.