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Friday 11 May 2018
Albuquerque Felon Pleads Guilty to Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Jaime Santiesteban, 37, of Albuquerque, N.M., pled guilty today in federal court to violating the federal firearms laws by being a felon in possession of a firearm and ammunition. Santiesteban’s plea agreement recommends a prison sentence within the range of 63 to 92 months followed by a term of supervised release to be determined by the court.
Santiesteban was arrested in Sept. 2017, and charged by criminal complaint with being a felon in possession of a firearm and ammunition on Sept. 7, 2017. According to the complaint, Albuquerque Police Department (APD) officers found ammunition in a stolen vehicle recently occupied by Santiesteban and a firearm in the backyard of a residence that Santiesteban had run past while attempting to evade arrest.
Santiesteban was indicted on Sept. 21, 2017, and was charged with being a felon in possession of a firearm and ammunition on Sept. 7, 2017, in Bernalillo County, N.M. According to the indictment, Santiesteban was prohibited from possessing firearms or ammunition because he previously had been convicted of multiple felony offenses, including contributing to the delinquency of a minor, possession of a controlled substance, being a felon in possession of a firearm, tampering with evidence, and battery on a peace officer.
During today’s proceedings, Santiesteban pled guilty to the indictment. In entering the guilty plea, Santiesteban admitted that on Sept. 7, 2017, APD detectives were conducting an operation when they heard gunshots, and observed Santiesteban driving a stolen truck. He also admitted that the APD detectives found a firearm magazine in the stolen truck and a firearm missing a magazine in the backyard of a residence where he discarded the firearm as he attempted to flee from the detectives. Santiesteban acknowledged that he attempted to evade arrest because he was a convicted felon and was prohibited from possessing firearms or ammunition.
Santiesteban remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the APD. Assistant U.S. Attorney Kimberly A. Brawley is prosecuting the case as part of a federal anti-violence initiative that targets violent, repeat offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target for federal prosecution violent or repeat offenders with the goal of removing them from communities in New Mexico for as long as possible.
Attorney General Sessions and U.s. Attorney Minkler Recognize Law Enforcement Service and Sacrifice During National Police WeekRead the Press Release
Former Southport Police Officer Aaron Allan’s name to be added to the National Law Enforcement Officers Memorial in Washington DC
Indianapolis – Attorney General Sessions and U.S. Attorney for the Southern District of Indiana Josh Minkler recognized the service and sacrifice of federal, state, local, and tribal police officers on the occasion of National Police Week, and commented on the FBI's 2017 Law Enforcement Officers Killed and Assaulted report.
“One officer death is too many,” Attorney General Sessions said. “While we are inexpressibly grateful to have had a decrease in the number of officers killed in the line-of-duty last year, the number is still far too high. At the Department of Justice, we honor the memories of the fallen and we pray for their families. We are also following President Trump's Executive Orders to back the women and men in blue, to enhance law enforcement safety, and to reduce violent crime in America. Those priorities will help keep every American safe, including those who risk their lives for us. As always, we have their backs and they have our thanks.”
“We have lost three police officers in our district in less than one year, all killed by gunfire,” said Minkler. “We will never forget the bravery demonstrated by Southport Police Officer Aaron Allan, Boone County Deputy Jacob Pickett and most recently, Terre Haute Police Officer and United States Marshal Task Force member Rob Pitts. All three are meaningful examples of the risks that we ask our officers to undertake every day. We owe them our gratitude, we owe them unwavering support and we owe their families our prayers when they make the ultimate sacrifice.”
According to statistics collected by the FBI, 93 law enforcement officers were killed in line-of-duty incidents in 2017 – a 21 percent decrease from 2016, when 118 law enforcement officers were killed in line-of-duty incidents. To date, 53 officers have been killed in the line of duty- 27 by gunfire.
In October 1962, Congress passed and President Kennedy signed a joint resolution declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.
During Police Week, which is observed from Sunday, May 13 to Saturday, May 19, 2018, our nation celebrates the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty and commitment in keeping our communities safe.
Lt. Aaron Allan from the Southport Police Department along with 93 fallen officers nationwide will be formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 30th Annual Candlelight Vigil on the evening of May 13, 2018. So that people across the country can experience this unique and powerful ceremony, the vigil will be livestreamed beginning at 8:00 p.m. EDT on May 13th. To register for this free online event, visit www.LawMemorial.org/webcast.
The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2018.
For more information about other National Police Week events, please visit www.policeweek.org.
To access the FBI's 2017 Law Enforcement Officers Killed and Assaulted report, please visit www.fbi.gov.
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"Homesource Partners Inc." Owner Sentenced to 96 Months PrisonRead the Press Release
DENVER – Karen Lynn McClaflin, age 59, of Colorado Springs, Colorado, and owner of “Homesource Partners Inc.” was sentenced today by U.S. District Court Judge Christine M. Arguello to serve 96 months in prison, followed by 3 years of supervised release, restitution in the amount of $14,528,206.39, and a $200 mandatory special assessment, U.S. Attorney Bob Troyer, FBI Special Agent in Charge Calvin Shivers and IRS Criminal Investigation Special Agent in Charge Steven Osborne announced. On June 21, 2017, Ms. McClaflin pled guilty to one count of wire fraud and one count of engaging in a monetary transaction in property derived from wire fraud.
According to the stipulated facts contained in the plea agreement, in December 2005, McClaflin and a partner started Trademark Properties and Trademark Reality (“Trademark”) in Colorado Springs. Trademark’s business was to use investor money to purchase and renovate distressed houses in order to resell those houses at a profit. By 2011, Trademark had accumulated so much debt that McClaflin’s partner declared bankruptcy, and their partnership was terminated. Rather than declare bankruptcy herself, McClaflin transitioned to another company with the same “fix and flip” business model as Trademark.
In late 2010, McClaflin started Homesource Partners Inc. (“Homesource”), and McClaflin rolled many of her investors from Trademark into Homesource. From late 2010 through early March 2017, McClaflin owned and operated Homesource in Colorado Springs, Colorado. In seeking investors for Homesource between March 2011 and early 2017, McClaflin told investors that Homesource was seeking loans from investors to finance Homesource’s “fix and flip” business because Homesource was not able to use traditional bank loans. McClaflin represented that traditional bank loans took too long and some of the distressed homes might not qualify as collateral for such loans.
Through marketing materials and verbal statements, McClaflin told investors that Homesource had access to distressed houses that were deeply discounted, which Homesource could purchase for no more than 80% of the “as is” value of the house. McClaflin further represented that Homesource then had exit strategies to profit from the distressed houses, including selling them within 30 days for an immediate profit, “fixing and flipping” the houses for sale within 31-90 days, or fixing the houses and renting them if the houses failed to sell within 90 days.
McClaflin represented that Homesource had a team of contractors who would fix and upgrade the properties so Homesource could resell the properties for a profit. McClaflin further represented that each property would be financed by an individual investor whose investment would be secured by a Deed of Trust in first position on that property, which McClaflin would record for the investor. Occasionally, McClaflin told the investor their Deed of Trust would be in second position. McClaflin further represented that investors would receive an interest rate of 6% to 15%.
However, starting in late March 2011, McClaflin knowingly and intentionally began having multiple investors “invest” in the same property and began placing multiple Deeds of Trust on the same properties, such that the amount of the investments purporting to be secured by the Deeds of Trust exceeded the value of the property. Additionally, starting in late March or April 2011, McClaflin intentionally did not record all of the investors’ Deeds of Trust as promised. Nonetheless, McClaflin continued to falsely represent that investors would receive a first Deed of Trust and that McClaflin would record that Deed of Trust for the investor. McClaflin also sometimes forged the signature of an investor, without the investor’s knowledge or consent, on a release so McClaflin could remove that investor’s Deed of Trust from a property. McClaflin sometimes did not inform investors when “their” property sold and did not return the investor’s principal upon that sale as promised.
Additionally, starting in at least the beginning of 2013, Homesource’s debt had grown too high and the interest payments owed to investors far exceeded the gross profits earned by Homesource. By at least January 2013, McClaflin was aware of this problem and intentionally continued seeking additional investments so that she could keep making the interest payments owed to earlier investors.
Unbeknownst to the individual investors, the amount of investment funds, which were supposed to be secured by real property, far exceeded the value of the encumbered property and Homesource’s business assets. An analysis of Homesource’s finances shows that the influx of investor funds kept Homesource operating, particularly in its latter years. Without the additional investor funding, Homesource would have failed years earlier.
“For a lot of years, the defendant lied a lot of people out of millions of dollars,” said U.S. Attorney Bob Troyer. “I am proud of the dogged and sophisticated work our prosecution team – including the FBI and IRS CI -- did to put a stop to it.”
"Karen McClaflin took advantage of innocent investors by knowingly and wittingly creating a deceptive home investment scheme for personal gain," said FBI Denver Special Agent in Charge Calvin Shivers. "Investigations of those who commit fraud schemes to mislead innocent investors is a felony and those who do will face the consequences of their actions."
“Financial fraud schemes are often described as a house of cards,” says IRS Criminal Investigation, Denver Field Office, Special Agent In Charge Steven Osborne. “The underlying structure can fall apart at any time and expose the individuals responsible. IRS Criminal Investigation is proud to bring our forensic accounting skills to this joint venture and help put a stop to this and other types of white collar crime."
This case was investigated by the Federal Bureau of Investigation and IRS Criminal Investigation. The defendant is being prosecuted by Assistant U.S. Attorney Pegeen Rhyne with Assistant U.S. Attorney Laura Hurd handling the asset forfeiture.
CASE NUMBER: 17-CR-00168
Thursday 10 May 2018
West Yarmouth Woman Pleads Guilty to Stealing Social Security Disability BenefitsRead the Press Release
BOSTON – A West Yarmouth woman pleaded guilty today in federal court in Boston to stealing Social Security disability benefits.
Crystal Lehtola, 35, pleaded guilty to one count of theft of public funds. U.S. District Court Judge William G. Young scheduled sentencing for Sept. 6, 2018. Lehtola was arrested and charged in August 2017.
From February 2011 through August 2016, Lehtola received approximately $64,953 in benefits from the Social Security Administration intended for her disabled daughter. In order to be appointed as her daughter’s representative payee, Lehtola told Social Security that her daughter lived with her and that she was her daughter’s guardian. However, in April 2009, the Massachusetts Department of Children and Families removed Lehtola’s daughter from her care, and although Lehtola never regained custody, she repeatedly advised Social Security that her daughter lived with her and that she spent all of the benefits on her daughter’s care. In reality, Lehtola spent the funds on her own expenses.
The charge of theft of public funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
Waterloo Man Sentenced to Federal Prison for Unlawfully Possessing a Gun and AmmunitionRead the Press Release
A Waterloo man was sentenced on May 9, 2018, to serve 43 months in federal prison for unlawfully possessing a gun and ammunition.
Wayne J. Jones, II, age 38, received the prison term after an October 15, 2017, guilty plea to one count of unlawful possession of a firearm and ammunition as a convicted felon and unlawful drug user.
Evidence presented at sentencing showed that Jones possessed multiple firearms in his Waterloo apartment and shot those firearms at an outdoor shooting range. On April 12, 2017, FBI agents executed a federal search warrant at Jones’s apartment. On that same date, Jones’s brother, Joseph Jones, was charged in the Northern District of Illinois with providing material support to ISIS. Those charges are still pending.
The evidence at sentencing showed that at the time the search warrant was executed, Wayne Jones admitted he was a daily user of marijuana. FBI agents seized a loaded handgun, ammunition, and other items from his apartment. A forensic examination of Jones’s phone discovered text messages and photos relating to drug activity and photos of firearms, as well as an image of an ISIS flag Jones claimed his brother sent him. Other investigation showed Jones sought to have his adult son purchase a firearm for him at a Waterloo sporting goods store in November 2016. Jones was arrested at the time of the search on an outstanding arrest warrant in Wisconsin issued after Jones violated terms of probation imposed on prior battery and disorderly conduct convictions there. While Jones was incarcerated in Wisconsin, he spoke to family members in calls recorded by the jail.
In one call, Jones claimed he and his brother were of “like mind” but have different approaches, stating: “I’m a little wiser, like okay, I’ll kill ‘ya, like you and your whole f****** household, but I’m not gonna be all you know unwise about it. I’m going to take the appropriate approach and make sure my ass is covered.”
Jones was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Jones was sentenced to 43 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
In imposing sentence, Judge Reade noted Jones had several prior criminal convictions that had not been taken into account by the sentencing guidelines, including convictions for possession with intent to distribute marijuana, resisting a peace officer, assault, forgery, and interference with official acts. The court stated Jones’s prior criminal conduct showed a disrespect for the law and a history of violence that was particularly troubling given his fascination with guns. The court found Jones was an “extremely high risk to recidivate.”
Jones is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Richard L. Murphy and investigated by the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-02058.
Follow us on Twitter @USAO_NDIA.
Wagner Man Sentenced to 24 Months for Sexual Abuse of a MinorRead the Press Release
United States Attorney Ron Parsons announced that U.S. District Judge Karen E. Schreier sentenced a Wagner, South Dakota, man convicted of Sexual Abuse of a Minor, on May 9, 2018.
Dorian Lester, age 22, was sentenced to 24 months in custody, followed by 5 years of supervised release, and ordered to pay $100 to the Federal Crime Victims Fund. Lester was also required to register as a sex offender upon release from incarceration.
Lester was indicted for sexual abuse of a minor by a federal grand jury on August 9, 2016. He pled guilty on February 15, 2018.
On or about November 23, 2014, Dorian Lester engaged in a sexual act with a 12-year old girl. Both had been drinking alcohol at a home in the South Housing area of Wagner.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeff Clapper prosecuted the case. Lester was immediately turned over to the custody of the U.S. Marshals Service.
U.S. Attorney’s Office Settles Disability Discrimination Allegations at Skilled Nursing FacilityRead the Press Release
BOSTON – The U.S. Attorney’s Office reached a settlement agreement today with Charlwell House, a skilled nursing facility in Norwood, to resolve allegations that the facility violated Title III of the Americans with Disabilities Act (ADA) by refusing to accept a patient because they were being treated for Opioid Use Disorder (OUD).
Charlwell House is a 124-bed health and rehabilitation center that provides skilled nursing services and rehabilitation programs. According to a complaint filed with the United States Attorney’s Office, an individual seeking admission for treatment at Charlwell House was denied because they were being treated with Suboxone, a medication used to treat OUD. Individuals receiving treatment for OUD are generally considered disabled under the ADA, which among other things prohibits private healthcare providers from discriminating on the basis of disability.
“Our office is committed to protecting the rights of people with disabilities, which includes those in treatment for an Opioid Use Disorder,” said United States Attorney Andrew E. Lelling. “The number one enforcement priority of my office is addressing Massachusetts’ opioid crisis. Overdoses killed more than 2,000 individuals in Massachusetts last year alone. As Massachusetts faces this overdose epidemic, now more than ever, individuals in recovery must not face discriminatory barriers to treatment. We appreciate the cooperation that Charlwell House has offered throughout our investigation.”
Under the terms of the agreement, Charlwell House will, among other things, adopt a non-discrimination policy, provide training on the ADA and OUD to admissions personnel, and pay a civil penalty of $5,000 to the United States.
This matter was handled by Special Assistant U.S. Attorney Gregory Dorchak of Lelling’s Civil Rights Unit.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
Two Florida Men Sentenced in Six Million Dollar Investment FraudRead the Press Release
DENVER – Joseph Anthony Rubbo, age 54, of Oakland Park, Florida, and Nicholas D. Rubbo, age 48, of Coral Springs, Florida pled guilty on May 9, 2018, to conspiring to commit mail fraud, securities fraud, and money laundering announced U.S. Attorney Bob Troyer, the Federal Bureau of Investigation Special Agent in Charge Calvin Shivers, and the Internal Revenue Service – Criminal Investigation Special Agent in Charge Steven Osborne. U.S. District Court Judge R. Brooke Jackson accepted the guilty pleas, sentenced Joseph Rubbo to the maximum term of imprisonment available under the law, 60 months, and sentenced Nicholas Rubbo to 48 months imprisonment.
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According to court documents, including the stipulated facts contained in the defendants’ amended plea agreements, from December 2012 to November 2017, Joseph Rubbo and Nicholas Rubbo, along with three others, engaged in a conspiracy to defraud more than thirty investors, including two investors in Colorado, of more than $6,000,000 in an investment fraud scheme. The investment fraud scheme focused on a television production company based in South Florida, VIP Television, LLC, as well as a cleaning product, the “Scrubbieglove,” which was also patented in Florida. Investors sent money to both of these companies as a result of false statements about VIP Television’s merger opportunities and interest in the Scrubbieglove by entities such as QVC, Walgreens, and Bed, Bath & Beyond.
Three other members of the conspiracy, Angela Monaco, Pasquale Rubbo, and Steven Dykes, are defendants in a related case pending before the United States District Court for the District of Colorado in Case No. 17-cr-417-RBJ. Monaco, Pasquale Rubbo, and Dykes have all pleaded guilty and will be sentenced by U.S. District Court Judge R. Brooke Jackson in August 2018.
The case was investigated by the FBI and IRS-CI. The defendants are being prosecuted by Assistant United States Attorneys Hetal J. Doshi and Matthew T. Kirsch.
Visit our website http://www.justice.gov/usao/co | Follow us on Twitter @DCoNewsTwenty-Three New United States Citizens Naturalized in GulfportRead the Press Release
Gulfport, Miss. – Twenty-three applicants for U.S. citizenship were sworn in today as new citizens during a naturalization ceremony held at the United States District Court in Gulfport, Mississippi.
United States Magistrate Judge Robert H. Walker presided over the ceremony. Judge Walker welcomed family, friends, soon-to-be citizens, and special guests, including Dr. Antoine B. Rizk, a cardiologist with Memorial Hospital at Gulfport. Following a performance of "America the Beautiful" by sisters Chloe and Noelle King and Eric Boutwell of Stone High School, the applicants were presented for citizenship by Assistant U.S. Attorney Steve Graben on behalf of Jeff Sessions, the Attorney General of the United States.
After Arthur Johnston, Clerk of the U.S. District Court, administered the Oath of Allegiance for citizenship, the honorees recited the Pledge of Allegiance for the first time as U.S. citizens.
Judge Walker congratulated the new citizens and commended them for their hard work to achieve citizenship. He challenged them to make the most of the opportunities now before them as new citizens by continuing to work hard; engaging in civic and community activities; and registering to vote and participating in the electoral process. He also encouraged them to serve on juries when summoned; stay informed about important local, state, and national events; defend the United States if called upon; and obey all laws. On the importance of becoming a citizen, Judge Walker quoted former U.S. Supreme Court Justice Louis D. Brandeis, who said, "The only title in our democracy superior to that of President is the title of citizen."
Dr. Rizk, who was born in Lebanon and naturalized as a U.S. citizen fourteen years ago, also addressed the new citizens. He told them that while many opportunities lay ahead for both them and their families, those opportunities will only be realized if they dedicate themselves to becoming the best citizens possible. Dr. Rizk also observed that most of them came from countries that did not afford its citizens the rights, freedoms, and privileges that U.S. citizenship offers. He concluded his remarks by wishing them well.
Judge Walker then presented the new citizens with certificates of citizenship. Representatives from the Daughters of the American Revolution Friendship Oak Chapter also presented them American flags.
The new citizens originated from the following 16 countries: Egypt, Philippines, Laos, Costa Rica, Vietnam, Mexico, El Salvador, Jordan, Honduras, Cuba, Canada, India, People’s Republic of China, Yemen, Nicaragua, and Burma.
Third Colombian National Extradited to the United States to Face Charges for Encouraging and Inducing Aliens to Come to the United StatesRead the Press Release
A Colombian citizen was extradited yesterday from Colombia to the United States to face a four-count federal indictment in the Southern District of Florida for his role in a scheme to smuggle illegal aliens from Colombia into the United States.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.
Fredis Valencia Palacios, 29, is charged along with three others in a Jan. 6 indictment with one count of conspiracy to encourage and induce aliens to come to the Unites States as well as three counts of encouraging and inducing aliens to come to the United States. Palacios had his initial court appearance earlier today and has a detention hearing on May 15 at 10 a.m. ET before U.S. Magistrate Judge Alicia M. Otazo-Reyes. Colombian nationals Carlos Emilio Ibarguen Palacios, 26, and Jhoan Stiven Carreazo Asprilla, 23, were previously extradited to the Southern District of Florida on Nov. 8, 2017 and Jan. 18., respectively. According to allegations in the indictment, from as early as November 2014, Valencia Palacios and other co-conspirators organized and arranged the unlawful smuggling of illegal aliens to the United States. The indictment alleges that in at least one instance, the defendant’s conduct resulted in the death of two individuals.
This case is scheduled for trial before U.S. District Judge Jose E. Martinez in Miami on Aug. 6.
The charges and allegations in the indictment are merely accusations. A defendant is presumed innocent until proven guilty in a court of law.
This case is being investigated by HSI Miami, with assistance from the HSI Bogota field office. The Government of Colombia, including the Colombian Office of the Attorney General, provided significant assistance and support during the investigation. The Criminal Division’s Office of International Affairs provided significant support with the defendant’s extradition. The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
This case is being prosecuted by Trial Attorney Danielle Hickman of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Brian Dobbins of the Southern District of Florida.
Third Colombian National Extradited to the United States to Face Charges for Encouraging and Inducing Aliens to Come to the United StatesRead the Press Release
A Colombian citizen was extradited yesterday from Colombia to the United States to face a four-count federal indictment in the Southern District of Florida for his role in a scheme to smuggle illegal aliens from Colombia into the United States.
U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Miami Field Office made the announcement.
Fredis Valencia Palacios, 29, is charged along with three others in a Jan. 6 indictment with one count of conspiracy to encourage and induce aliens to come to the Unites States as well as three counts of encouraging and inducing aliens to come to the United States. Palacios had his initial court appearance earlier today and has a detention hearing on May 15 at 10 a.m. ET before U.S. Magistrate Judge Alicia M. Otazo-Reyes. Colombian nationals Carlos Emilio Ibarguen Palacios, 26, and Jhoan Stiven Carreazo Asprilla, 23, were previously extradited to the Southern District of Florida on Nov. 8, 2017 and Jan. 18., respectively. According to allegations in the indictment, from as early as November 2014, Valencia Palacios and other co-conspirators organized and arranged the unlawful smuggling of illegal aliens to the United States. The indictment alleges that in at least one instance, the defendant’s conduct resulted in the death of two individuals.
This case is scheduled for trial before U.S. District Judge Jose E. Martinez in Miami on Aug. 6.
The charges and allegations in the indictment are merely accusations. A defendant is presumed innocent until proven guilty in a court of law.
This case is being investigated by ICE-HSI Miami, with assistance from the HSI Bogota field office. The Government of Colombia, including the Colombian Office of the Attorney General, provided significant assistance and support during the investigation. The Criminal Division’s Office of International Affairs provided significant support with the defendant’s extradition. The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
This case is being prosecuted by Assistant U.S. Attorney Brian Dobbins of the Southern District of Florida and Trial Attorney Danielle Hickman of the Criminal Division’s Human Rights and Special Prosecutions Section.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
The U.S. Attorney’s Office for the Middle District of Pennsylvania Honors and Remembers Fallen Law Enforcement Officers in Observance of 2018 “National Police Week”Read the Press Release
HARRISBURG - Communities across the United States gather during National Police Week, which is observed from Sunday, May 13 to Saturday, May 19, 2018, to remember federal, state, and local law enforcement officers who made the ultimate sacrifice in the line of duty to share their stories of courage and sacrifice and to honor their memory.
“One officer death is too many,” Attorney General Jeff Sessions said. “While we are inexpressibly grateful to have had a decrease in the number of officers killed in the line-of-duty last year, the number is still far too high. At the Department of Justice, we honor the memories of the fallen and we pray for their families. We are also following President Trump's Executive Orders to back the women and men in blue, to enhance law enforcement safety, and to reduce violent crime in America. Those priorities will help keep every American safe, including those who risk their lives for us. As always, we have their backs and they have our thanks.”
“The citizens of this District were reminded in stark terms on January 18, 2018 of the sacrifices that law enforcement officers and their families make to protect us every day,” said United States Attorney David J. Freed. “The tragic and heroic death of Deputy United States Marshal Christopher Hill once again highlighted the potential dangers faced by men and women in law enforcement each time they take to the streets. We seek to honor the memory of USDM Hill and others lost in the line of duty through our constant efforts to reduce violence in our communities.”
During National Police Week and in honor of fallen officers, two Middle District of Pennsylvania Assistant United States Attorneys are participating in the Police Unity Tour to help raise awareness of law enforcement officers who have died in the line of duty.
According to statistics collected by the FBI, 93 law enforcement officers were killed in line-of-duty incidents in 2017 – a 21 percent decrease from 2016 when 118 law enforcement officers were killed in line-of-duty incidents.
Additionally, in 2017 there were 46 law enforcement officers killed in line-of-duty incidents as a result of felonious acts – this is a 30 percent decrease from 2016, when 66 law enforcement officer were killed in line-of-duty incidents as a result of felonious acts.
In October 1962, Congress passed and President Kennedy signed a joint resolution declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.
The names of all 93 fallen officers nationwide will be formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 30th Annual Candlelight Vigil on the evening of May 13, 2018. So that people across the country can experience this unique and powerful ceremony, the vigil will be livestreamed beginning at 8:00 p.m. EDT on May 13th. To register for this free online event, visit www.LawMemorial.org/webcast.
Among those added this year from Pennsylvania will be:
- Brian Shaw, New Kensington Police Department, who died in November 2017;
- Michael Stewart, III, Pennsylvania State Police, who died in July 2017;
- Shawn Rager, Johnstown Police Department, who died in October 2016;
- David Weaver, State Correctional Institute Graterford, who died in September 2016; and
- Raymond Diaz, Jr., Philadelphia Police Department, who died in September 2016.
Along with remembering the officers who made the ultimate sacrifice in the line of duty, Police Week is an opportunity to recognize and honor all law enforcement officers in our communities, who courageously stand on the front lines each day for the safety and protection of others.
The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2018.
For more information about other National Police Week events, please visit www.policeweek.org.
To access the FBI's 2017 Law Enforcement Officers Killed and Assaulted report, please visit www.fbi.gov.
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Thackerville Woman Sentenced to 60 Months Probation, $88,700 Restitution for False Bank EntryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Tiffany Rhea Spears, age 30, of Thackerville, Oklahoma, was sentenced to five years of probation for False Entry In The Books of a Federally Insured Bank, in violation of Title 18, United States Code, Section 1005. The charge arose from an investigation by the Federal Reserve Office of Inspector General. Spears has been ordered to pay restitution in the amount of $88,700.
The Indictment alleged that from on or about January 6, 2017, until on or about June 5, 2017, within the Eastern District of Oklahoma, defendant, with the intent to deceive an officer of Citizens Bank and Trust of Ardmore, Oklahoma, a bank whose deposits are insured by the Federal Deposit Insurance Corporation, knowingly made false entries in the books, reports, or statements of Citizens Bank and Trust of Ardmore, Oklahoma. The defendant created false transaction documents showing customers advancing monies on their loans and withdrawing cash from their accounts, when in truth and in fact, as the defendant well knew, the advances and withdrawals from customer accounts were by, and for the benefit of, the defendant.
United States Attorney Brian J. Kuester said. “The defendant is being held accountable for her crimes because of an alert co-worker, a thorough and professional investigation, and the dedicated members of the U. S. Attorney’s Office. During her probationary term, the United States Probation Office for the Eastern District of Oklahoma will monitor her to ensure that she abides by the conditions of her probation.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Rob Wallace represented the United States.
Texas men arrested for transporting 10 kilograms of fentanylRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today that two Texas men were arrested today for transporting more than 10 kilograms of fentanyl.
Felipe Rodriguez, 21, of McAllen, Texas, and Brandon Montoya, 23 of Kaufman, Texas, were arrested and charged with possession with intent to distribute fentanyl. United States Magistrate Judge Mark L. Hornsby presided over the initial appearance hearing, which was held this afternoon. According to the complaint filed during the hearing, a Louisiana State Police trooper conducted a traffic stop today on an SUV on Interstate-20 at mile marker 31 going eastbound. The trooper searched the vehicle and found a compartment in rear cargo area. Through a hole in the compartment, he could see a plastic bag containing an unknown substance. The vehicle was brought to Louisiana State Police Troop G headquarters. Upon a more thorough search, they found 10 plastic 1-kilogram bags containing fentanyl. The defendants admitted to transporting the drugs. They said they had been approached in Houston to travel to California to obtain the drugs. They were then instructed to drive to Atlanta, Georgia, where they would be paid for the delivery.
The defendants face up to 10 years to life in prison, at least five years of supervised release and a $10 million fine. The defendants will remain in custody until the detention hearing, which was set for May 15, 2018.
Fentanyl is a synthetic opioid. In recent years it has become more widely available in the United States and grown as a threat to public safety. It only takes a very small amount of fentanyl or its derivatives- which can be inhaled or absorbed through the skin or mucus membranes (such as being inhaled through the nose or mouth)- to result in severe adverse reactions including death. For more information about fentanyl, visit www.dea.gov/druginfo/fentanyl.
The DEA, Homeland Security Investigations and Louisiana State Police investigated the case. Assistant U.S. Attorney Tiffany E. Fields is prosecuting the case.
A complaint is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Tahlequah Woman Pleads Guilty to Uttering, Passing Counterfeit ObligationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Alyssia Marie Jae Carey, age 26, of Tahlequah, Oklahoma, pled guilty to two counts of Uttering A Counterfeit Obligation Of The United States, in violation of Title 18, United States Code, Section 472, punishable by not more than 20 years imprisonment, up to a $250,000.00 fine, or both for each count; and to Passing A Counterfeit Obligation Of The United States, in violation of Title 18, United States Code, Section 472, punishable by not more than 20 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleged that on or about November 14, 2017, within the Eastern District of Oklahoma, the Defendant, with intent to defraud, did pass, utter and publish to Clear Creek 66, 1100 E. Allen Road, Tahlequah, Oklahoma, falsely made, forged and counterfeited obligations of the United States, that is: One (1) twenty-dollar Federal Reserve Note, Series 2013, Serial No. MF57071698C, Quadrant # 2, Face Plate 66, Back Plate 46, Federal Reserve Bank B2, and One (1) twenty-dollar Federal Reserve Note, Series 2013, Serial No. MG04098161, Quadrant # 2, Face Plate 1, Back Plate 3, Federal Reserve Bank G7, which she then knew to be falsely made, forged and counterfeited.
The Indictment further alleged that on or about November 24, 2017, within the Eastern District of Oklahoma, the Defendant, with intent to defraud, did pass, utter and publish to Hit-N-Run, 1200 S. Muskogee Ave., Tahlequah, Oklahoma, a falsely made, forged and counterfeited obligation of the United States, that is: One (1) twenty-dollar Federal Reserve Note, Series: 2009, Serial No. JB14517500F, Quadrant # 2, Face Plate 218, Back Plate 156, Federal Reserve Bank B2, which she then knew to be falsely made, forged and counterfeited.
The Indictment further alleged that on or about November 25, 2017, within the Eastern District of Oklahoma, the Defendant, with intent to defraud, did pass, utter, publish and sell to Dollar General, 18497 W. Woodard Road, Tahlequah, Oklahoma, falsely made, forged and counterfeited obligations of the United States, that is: Nine (9) five-dollar Federal Reserve Notes, Series 2006, Serial No. IB70330255H, Quadrant # 4, Face Plate 8, Back Plate 5, Federal Reserve Bank J9, which she then knew to be falsely made, forged and counterfeited.
The charges arose from an investigation by the Tahlequah Police Department and the United States Secret Service.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.Assistant United States Attorney John David Luton represented the United States.
Stroud Township Man Charged with Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that James Williams, III, a/k/a “Dilly,” age 30, of Stroud Township, Pennsylvania, was indicted on May 8, 2018, by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney David J. Freed, the indictment alleges that Williams conspired to distribute and possess with the intent to distribute 500 grams and more of cocaine beginning in 2017 in Monroe County, Pennsylvania. The indictment further charges Williams with distribution and possession with intent to distribute within 1,000 feet of Stroudsburg High School on two occasions in March and April of this year. Williams was also charged with possession with intent to distribute 500 grams and more of cocaine on May 3, 2018. The indictment further alleged that Williams, a convicted felon, illegally possessed three firearms, one of which was stolen and had an obliterated serial number, and possessed of a firearm in furtherance of drug trafficking.
The case was investigated by the U.S. Federal Bureau of Investigation, the Stroud Regional Police Department, and the Pennsylvania State Police. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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St. Peters Woman Sentenced to Prison for Fraudulent Preparation of Bankruptcy PetitionsRead the Press Release
On May 10, 2018, Phebe Ibrahim, formerly known as "Phebe Khan," age 50, of St. Peters, Missouri, was sentenced to 18 months in federal prison for bankruptcy fraud and related charges, announced Donald S. Boyce, U. S. Attorney for the Southern District of Illinois. Ibrahim was previously charged in a 21-count indictment filed on October 3, 2017, as part of the U.S. Attorney’s Office’s continuing effort to crack down on those who commit fraud in the U.S. Bankruptcy Court for the Southern District of Illinois. She pled guilty to all charges on February 8, 2018.
As part of her guilty plea, Ibrahim, a non-lawyer, admitted that she worked as a bankruptcy petition preparer, preparing bankruptcy petitions and other documents for debtors who wished to file bankruptcy in the Southern District of Illinois. The Bankruptcy Code imposes certain restrictions on bankruptcy petition preparers, including requiring them to disclose their names on any documents they prepare, and allowing the Bankruptcy Courts to set maximum fees that they can charge their customers. The practice in the U.S. Bankruptcy Court for the Southern District of Illinois is that bankruptcy petition preparers are not allowed to charge fees of more than $150.
Ibrahim admitted that she defrauded the debtors for whom she prepared bankruptcy petitions by routinely charging fees that exceeded the maximum allowable amount. Ibrahim also acknowledged that she attempted to conceal her fraud by not disclosing her name on the documents she prepared, and by instructing her customers not to mention her name during their bankruptcy cases.
The Bankruptcy Code also requires that debtors attend a credit counselling briefing prior to filing a bankruptcy case. Ibrahim admitted that she circumvented and defeated this provision of the Bankruptcy Code by causing false "Certificates of Counselling" to be filed on behalf of her customers. These Certificates represented that Ibrahim’s customers had attended the required credit counselling briefing.
In rejecting the defendant’s request for a probationary sentence, United States District Judge Staci M. Yandle noted that Ibrahim "took advantage of individuals when they were in a vulnerable financial situation," calling Ibrahim’s fraud and repeated false statements to the Bankruptcy Court "repugnant." Judge Yandle also found it "unbelievable" that after the
Bankruptcy Court for the Southern District of Illinois specifically ordered Ibrahim to stop acting as a bankruptcy petition preparer, she then engaged in the same conduct in the Bankruptcy Court for the Eastern District of Missouri.
In addition to the 18 month prison sentence, Judge Yandle imposed a three-year term of supervised release and ordered Ibrahim to pay a $2,100 special assessment and total restitution in the amount of $13,200 to the bankruptcy clients she defrauded.
"Today’s sentence sends a strong message to those who abuse the bankruptcy system," stated Nancy J. Gargula, United States Trustee for Southern and Central Illinois and Indiana (Region 10). "Providing false documents to the United States Bankruptcy Court, such as false bankruptcy credit counseling certificates, bankruptcy petitions that concealed this bankruptcy petition preparer’s involvement in the cases and charging fees that exceeded the maximum allowable amount, undermines the integrity of the system and will not be tolerated. We appreciate the commitment of U.S. Attorney Boyce and our law enforcement partners to holding those who abuse the bankruptcy system accountable. We welcome information that will help detect unscrupulous bankruptcy petition preparers and we encourage citizens to report suspected bankruptcy fraud through our Internet hotline at [email protected]." The United States Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.
The case against Ibrahim resulted from a referral by the United States Trustee for Indiana and Southern and Central Illinois (Region 10) to the U.S. Attorney for the Southern District of Illinois. The investigation was conducted by agents from the Federal Bureau of Investigation’s Springfield Division, Fairview Heights Resident Agency, in collaboration with the Southern Illinois Bankruptcy Fraud Working Group, which is coordinated by the United States Trustee. The case was prosecuted by Assistant U. S. Attorney Scott A. Verseman.
South Carolina Couple Sentenced to a Total of 138 Months in Prison for Trafficking Counterfeit Goods, Including Misbranded Pet MedicineRead the Press Release
David Haisten, 51, and Judy Haisten, 51, both of Irmo, South Carolina, were sentenced yesterday to 78 and 60 months of incarceration, respectively, by U.S. District Judge Gerald J. Pappert, announced United States Attorney William M. McSwain. A jury found the Haistens guilty in October 2017 of conspiracy as well as six counts of violating the Federal Insecticide, Fungicide, and Rodenticide Act, five counts of distributing misbranded animal drugs, and two counts of trafficking in counterfeit goods.
For about six years, and despite repeated warnings from numerous companies and government agencies, the defendants sold counterfeit DVDs, unregistered and misbranded pesticides, and misbranded animal drugs to customers online across the United States.
The defendants’ products, including pesticides that are extremely toxic in the wrong dose, posed a serious risk to animals and humans. Further, as detailed at trial, the defendants’ packaging and instructions for use increased the likelihood that an injury would occur.
“This joint venture generated millions of dollars in illegal income,” said U.S. Attorney McSwain. “Despite multiple warnings and cease and desist letters, the defendants continued to reinvent themselves and flout the law. Ultimately, it took federal arrests to stop them. Given their disdain for the law, the defendants deserved a substantial prison term.”
“To ensure that consumers know what they are purchasing and how to safely use these products, pesticides must be registered and properly labeled," said Susan Bodine, Assistant Administrator for the Environmental Protection Agency’s Office of Enforcement and Compliance Assurance. "Today's sentencing sends a strong signal that EPA and its law enforcement partners will hold responsible those who put consumers at risk for competitive advantage."
“The FDA is committed to working with our federal partners to bring criminals to justice who endanger our pets by distributing unapproved and unsafe drugs,” said Mark S. McCormack, Special Agent in Charge, Food and Drug Administration Office of Criminal Investigations’ Metro Washington Field Office.
“The uncontrolled distribution of unregistered and misbranded pesticides, and misbranded animal drugs pose a serious threat to public safety,” said Special Agent in Charge Marlon V. Miller, Homeland Security Investigations Philadelphia Field Office. “Let David and Judy Haisten’s sentencing serve as a reminder that our local, state and, federal partners will use all available means to investigate and prosecute individuals who disregard the rule of law.”
The case was investigated by the Environmental Protection, Criminal Investigative Division, the Food and Drug Administration Office of Criminal Investigations, and the Department of Homeland Security, and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
Shipping Company Will Pay Million Dollar Fine for Environmental Pollution CrimesRead the Press Release
A Japanese shipping company that delivered steel products to Wilmington, NC, was convicted and sentenced today for obstruction of justice and falsification of an Oil Record Book to cover-up intentional oil pollution from the Motor Vessel (“M/V”) Atlantic Oasis, announced Acting Assistant Attorney General Jeffrey H. Wood and United States Attorney Robert J. Higdon Jr. Nitta Kisen Kaisha Ltd. (“Nitta”) owned and operated the M/V Atlantic Oasis. The prior Chief Engineer, Jihnyun Youn, had previously been convicted and sentenced for falsification of the vessel’s Oil Record Book.
The company admitted that its engineers failed to document the illegal discharge of oily wastes from the vessel’s fuel and lubrication oil purifier systems, as well as discharges of oily bilge waste from the bilge holding tank and from the vessel’s bilges. During a U.S. Coast Guard inspection of the vessel on May 17, 2017, a junior engineering crewmember provided information to the inspectors about how the oily wastes were being discharged by the order of Chief Engineer Youn. The crewmember also showed U.S. Coast Guard inspectors where the hoses that were used for the discharges were hidden. Chief Engineer Youn lied to the inspectors about the existence of a Sounding Log, which is typically used in the industry to record the fluid levels of various tanks in the engine room. By the end of the inspection, Chief Engineer Youn had admitted to ordering the illegal discharges and admitted that there was a Sounding Log.
Nitta was ordered to pay a fine of $1,000,000; placed on probation for a period of three years; and further ordered to implement a court-approved comprehensive Environmental Compliance Plan as a special condition of probation, which will be audited throughout probation. Chief Engineer Youn was placed on probation for one year and ordered to pay a fine of $5,500.00.
“This case demonstrates that those who pollute our oceans and deliberately mislead U.S. Coast Guard Officials will be brought to justice,” said Acting Assistant Attorney General Wood. “The Department of Justice will continue to work with our federal law enforcement partners to aggressively prosecute criminals that harm the environment.”
“While the charges in this case rest on the failure of the ship’s crew to properly document the discharge of oily bilge waste, the heart of this case is the illegal discharge itself and the damage that action did to our environment – particularly our spectacular seashores and waterways – is a critical necessity in the Eastern District of North Carolina,” said United States Attorney Robert J. Higdon Jr. for the Eastern District of North Carolina. “We trust that the fines and penalties imposed in this case will act as a deterrent to anyone who would treat our environment as a dump-ground.”
“Marine Environmental Protection is a critical mission of the U.S. Coast Guard. We respond to and investigate oil and hazardous material releases and discharges, as well as enforce environmental laws to preserve our waters and prevent future spills. We hope the outcome of this case deters future criminal acts that pollute the marine environment,” stated Captain Bion Stewart, Commander Coast Guard Sector North Carolina.
This case was investigated by U.S. Coast Guard personnel from Coast Guard Sector North Carolina and Coast Guard Investigative Service S/A Derrick (“Rick”) Vachon. This case was prosecuted by Senior Trial Attorney Kenneth E. Nelson from the Environmental Crimes Section, Assistant United States Attorney Banu Rangarajan from the Eastern District of North Carolina, and Special Assistant United States Attorney Brendan Gavin from the U.S. Coast Guard.
Shipping Company Will Pay Million Dollar Fine for Environmental Pollution CrimesRead the Press Release
WASHINGTON—– A Japanese shipping company that delivered steel products to Wilmington, NC, was convicted and sentenced today for obstruction of justice and falsification of an Oil Record Book to cover-up intentional oil pollution from the Motor Vessel (“M/V”) Atlantic Oasis, announced Acting Assistant Attorney General Jeffrey H. Wood and United States Attorney Robert J. Higdon Jr. Nitta Kisen Kaisha Ltd. (“Nitta”) owned and operated the M/V Atlantic Oasis. The prior Chief Engineer, Jihnyun Youn, had previously been convicted and sentenced for falsification of the vessel’s Oil Record Book.
The company admitted that its engineers failed to document the illegal discharge of oily wastes from the vessel’s fuel and lubrication oil purifier systems, as well as discharges of oily bilge waste from the bilge holding tank and from the vessel’s bilges. During a U.S. Coast Guard inspection of the vessel on May 17, 2017, a junior engineering crewmember provided information to the inspectors about how the oily wastes were being discharged by the order of Chief Engineer Youn. The crewmember also showed U.S. Coast Guard inspectors where the hoses that were used for the discharges were hidden. Chief Engineer Youn lied to the inspectors about the existence of a Sounding Log, which is typically used in the industry to record the fluid levels of various tanks in the engine room. By the end of the inspection, Chief Engineer Youn had admitted to ordering the illegal discharges and admitted that there was a Sounding Log.
Nitta was ordered to pay a fine of $1,000,000; placed on probation for a period of three years; and further ordered to implement a court-approved comprehensive Environmental Compliance Plan as a special condition of probation, which will be audited throughout probation. Chief Engineer Youn was placed on probation for one year and ordered to pay a fine of $5,500.00.
“This case demonstrates that those who pollute our oceans and deliberately mislead U.S. Coast Guard Officials will be brought to justice,” said Acting Assistant Attorney General Wood. “The Department of Justice will continue to work with our federal law enforcement partners to aggressively prosecute criminals that harm the environment.”
“While the charges in this case rest on the failure of the ship’s crew to properly document the discharge of oily bilge waste, the heart of this case is the illegal discharge itself and the damage that action did to our environment – particularly the spectacular seashores and waterways that are so critical to the Eastern District of North Carolina. We trust that the fines and penalties imposed in this case will act as a deterrent to anyone who would treat our environment as a dumping-ground” said United States Attorney Robert J. Higdon Jr.
“Marine Environmental Protection is a critical mission of the U.S. Coast Guard. We respond to and investigate oil and hazardous material releases and discharges, as well as enforce environmental laws to preserve our waters and prevent future spills. We hope the outcome of this case deters future criminal acts that pollute the marine environment,” stated Captain Bion Stewart, Commander Coast Guard Sector North Carolina.
This case was investigated by U.S. Coast Guard personnel from Coast Guard Sector North Carolina and Coast Guard Investigative Service S/A Derrick (“Rick”) Vachon. This case was prosecuted by Senior Trial Attorney Kenneth E. Nelson from the Environmental Crimes Section, Assistant United States Attorney Banu Rangarajan from the Eastern District of North Carolina, and Special Assistant United States Attorney Brendan Gavin from the U.S. Coast Guard.
Sentencings for May 9 - May 10, 2018Read the Press Release
FULGENSIO FIGUEROA-MENCIA, 44, of Las Loma, Honduras, was sentenced by Federal District Court Judge Alan B. Johnson on May 10, 2018 for illegal re-entry of a previously deported alien into the United States. Figueroa-Mencia was arrested in Laramie, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Immigration and Customs Enforcement.
QUENTIN ELDON OLER, 31, of Glenrock, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 9, 2018, for being a felon in possession of a firearm. Oler was sentenced to 33 months of imprisonment, consecutive to the judgment issued from the Seventh Judicial District Court, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Casper Police Department, the Natrona County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Sentencing Hearing Set for Barrero in Federal CourtRead the Press Release
Columbia, South Carolina-------United States Attorney Beth Drake announced today that a sentencing hearing for Ana Milena Barrero, age 24, has been set for Friday morning, May 11, 2018, at 10:00 A.M. in the federal courthouse in Greenville.
The case was investigated by Special Agents with ICE-Homeland Security Investigations, Border Enforcement Security Task Force (BEST), the United States Postal Inspection Service, the Drug Enforcement Administration, the Greenville County Sheriff’s Office, the Greenville Police Department, and the Spartanburg County Sheriff’s Office.
Assistant United States Attorney Andy Moorman, Deputy Criminal Chief for the Narcotics Division, is prosecuting the case.
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Seafood Company Pleads Guilty to Illegal Sale of Blue CrabsRead the Press Release
United States Attorney Duane A. Evans announced that SHELL BEACH SEAFOOD CO., LLC (“SHELL BEACH SEAFOOD”), a company based in St. Bernard, Louisiana, pled guilty today to a one-count Bill of Information for the illegal sale of blue crabs, in violation of the Lacey Act.
According to the Information, from on or about May 1, 2012 through March 30, 2013, SHELL BEACH SEAFOOD, did knowingly sell and transport blue crabs in interstate commerce with a market value in excess of $350 when, in the exercise of due care, SHELL BEACH SEAFOOD should have known that said blue crabs were acquired and possessed in violation of and in a manner unlawful under the laws of the State of Louisiana, specifically Louisiana Revised Statutes, R.S. 56:306.4, R.S. 56:306.5, and R.S. 56:306.6.
SHELL BEACH SEAFOOD faces a maximum fine of not more than $200,000, and a special assessment of $125.
Sentencing in this matter is scheduled for August 16, 2018, before U.S. District Court Judge Eldon E. Fallon.
The case was investigated by the National Oceanic and Atmospheric Administration and the Louisiana Department of Wildlife and Fisheries. The case is being prosecuted by Assistant U. S. Attorney Sharan E. Lieberman of the Fraud Section.
Schenectady Man Indicted for Stealing FirearmsRead the Press Release
ALBANY, NEW YORK – Christian Roman, age 24, of Schenectady, New York, was indicted today on charges that he stole an array of firearms from a licensed firearms dealer.
The announcement was made by United States Attorney Grant C. Jaquith and Ashan M. Benedict, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
According to the indictment, on October 22, 2017, Roman stole firearms from Target Sports, Inc., a federally licensed firearms dealer in Schenectady County. The stolen firearms included pistols, shotguns, and rifles. The indictment further alleges that Roman possessed, concealed, and stored the stolen firearms through November 1, 2017.
Roman is in custody and will be arraigned at a later date. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted of all charges, Roman faces up to 20 years in prison, a maximum $500,000 fine, and up to 3 years of post-imprisonment supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the ATF and prosecuted by Assistant U.S. Attorneys Wayne A. Myers and Joseph A. Giovannetti.
Rochester Woman Previously Convicted of Threatening the President Charged with Threatening A Federal JudgeRead 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 Christine Wright Darrisaw, 42, of Rochester, NY, was arrested and charged by criminal complaint with threatening to kill United States District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the complaint, the defendant is currently on supervised release following her 2014 conviction for threatening to kill former President Barack Obama. Chief U.S. District Frank P. Geraci, Jr. presided over that case.
On December 15, 2017, Judge Geraci's chambers received two telephone calls from a number connected to the defendant. During both calls, the caller identified herself as Christine Wright Darrisaw. One of the judge’s law clerks answered the first call which came in at approximately 11:25 a.m. The caller was described as speaking quickly, clearly, and changed subjects rapidly and at one point stated “I am calling in a death threat against the Judge.” Wright Darrisaw claimed that two probation officers threatened death against the Judge and then she hung up. A short time later, at 12:01 p.m., the defendant again called Judge Geraci's Chambers which was answered by another law clerk. Wright-Darrisaw once again changed subjects rapidly. During that call, Wright-Darrisaw stated her and her boyfriend decided to "call in a terrorist threat." Wright-Darrisaw then stated “This is a death threat.”
The threats were then reported to the United States Marshal's Office.
The defendant made an initial appearance before U.S. District Judge Brenda K. Sannes of the Northern District of New York in Rochester and is being held pending a hearing on May 24, 2018, at 9:30 a.m.
The complaint is the culmination of an investigation by the United States Marshal's Service, under the direction of Marshal Charles Salina.
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.
Ringleader of Drug Trafficking Organization that Distributed High Grade Marijuana Throughout New Mexico Sentenced for Marijuana Trafficking and Money Laundering ConvictionRead the Press Release
ALBUQUERQUE – Enrique S. Cavazos, 32, of Tijeras, N.M., was sentenced late yesterday afternoon in federal court in Albuquerque, N.M., to six years in prison followed by three years of supervised release for his conviction on marijuana trafficking and money laundering conspiracy charges. Cavazos also was ordered to forfeit the proceeds of his drug trafficking and money laundering activities, including real estate, vehicles, cash, weapons, and jewelry, valued at more than $1,883,500.
U.S. Attorney John C. Anderson, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, Special Agent in Charge Ismael Nevarez, Jr., of the Phoenix Field Office of IRS-Criminal Investigation, and Chief Michael Geier of the Albuquerque Police Department (APD), announced Enrique Cavazos’ sentence.
Enrique Cavazos was arrested in Nov. 2015, after a federal grand jury filed a 26-count indictment charging him, his wife, Lindsey A. Cavazos, 33, and six others with marijuana trafficking and money laundering charges. The indictment was the result of a two-year investigation by the FBI, IRS-Criminal Investigation and APD into a drug trafficking organization led by Enrique Cavazos that distributed high-grade marijuana throughout New Mexico and across the country. The investigation revealed that the Cavazos drug trafficking organization cultivated and purchased high-grade marijuana in California, distributed the marijuana throughout the country, and laundered its drug proceeds through a number of businesses and bank accounts in New Mexico.
According to the indictment, Enrique and Lindsey Cavazos and six co-conspirators participated in a marijuana trafficking conspiracy that existed from at least Jan. 2008 through Nov. 2015, and operated in the District of New Mexico and elsewhere. The indictment alleged that Enrique Cavazos operated his marijuana trafficking business by directing co-conspirators to purchase large quantities of marijuana in California and distribute the marijuana in New Mexico and other destinations across the country. It further alleged that Lindsey Cavazos was responsible for keeping the books on businesses she and her husband established with proceeds from their marijuana trafficking activities and for the purpose of laundering their drug proceeds. The indictment charged the couple with engaging in a money laundering conspiracy and using bank accounts in the names of several of their businesses, including a restaurant and a car dealership, to launder their drug proceeds.
The indictment was superseded in Aug. 2016, to add money laundering charges against three new defendants: Steven Becerra, 62, the owner of the Becerra Group Tax and Accounting Firm in Albuquerque, who previously was employed by the IRS for 18 years; Deborah Gutierrez, 55, who operated Automated Financial Technologies, which is no longer in business; and Glen F. Lucero, 66, a retired school teacher. The superseding indictment also removed Felix Cavazos, Enrique Cavazos’s father who passed away after the original indictment was filed, from the list of defendants.
On May 24, 2017, Enrique Cavazos pled guilty to a drug trafficking conspiracy charge and a money laundering conspiracy charge. In his plea agreement, Cavazos admitted participating in a conspiracy to distribute marijuana between Jan. 2008 and Nov. 2015, and acknowledged that the conspiracy included the cultivation, shipment and sale of marijuana to wholesalers and end-use customers. Enrique Cavazos also admitted conspiring with others from Jan. 2009 through Nov. 2015, to launder the cash proceeds from his marijuana distribution conspiracy, and engaging in numerous financial transactions using his drug proceeds, which were designed to conceal the nature, source and ownership of the illegal proceeds.
Also on May 24, 2017, Lindsey Cavazos entered a guilty plea to a money laundering conspiracy charge. In her plea agreement, she admitted that from Jan. 2009 through Nov. 2015, she conspired with others to launder the cash proceeds from marijuana distribution. Like her husband, Lindsey Cavazos admitted engaging in numerous financial transactions using drug proceeds, which were designed to conceal the nature, source and ownership of the illegal proceeds. Lindsey Cavazos’ plea agreement recommends that she be sentenced to a five-year term of probation. A sentencing hearing for Lindsey Cavazos has not been scheduled.
As part of their plea agreements, the Cavazos agreed to forfeit property derived, either directly or indirectly, from proceeds obtained from their drug trafficking and money laundering activities including:
- The Tijeras, N.M., residence of Enrique and Lindsey Cavazos, valued at $468,000;
- Two parcels of real property located on Grand Avenue in Las Vegas, N.M., valued at $227,032;
- A parcel of real property located on 12th Street in Las Vegas, N.M., valued at $42,500;
- A parcel of real property located on Grant Street in Las Vegas, N.M., valued at $50,000;
- A parcel of real estate located at 8th Street and Sperry Street in Las Vegas, N.M., valued at $229,000;
- The funds, totaling approximately $104,513.21, in nine bank accounts in the names of companies owned and controlled by Enrique and Lindsey Cavazos;
- 18 vehicles with an aggregate value of $177,500;
- Two Rolex watches valued at $35,600;
- Three pieces of sapphire and diamond jewelry owned by Lindsey Cavazos valued at $1,025.33;
- $473,040 in cash; and
- The fixtures and equipment from Café Bien, a restaurant formerly located on Central Avenue, SW, in Albuquerque, N.M., that was owned and operated by Enrique and Lindsey Cavazos.
Two of the Cavazos’ co-defendants have entered guilty pleas, and one has been sentenced. Antonio Ruelas, 33, of Rio Rancho, N.M., pled guilty on Sept. 8, 2017, and was sentenced on May 2, 2018, to 30 months in federal prison followed by three years of supervised release. Daniel Nieto, 40, of Carlsbad, N.M., pled guilty on May 25, 2017, and is scheduled for sentencing on May 24, 2018.
The remaining six defendants, who have entered not guilty pleas to the superseding indictment, are pending trial, which has yet to be scheduled. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The investigation of this case was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. It was conducted by the Albuquerque offices of the FBI and IRS Criminal Investigation and the APD. Assistant U.S. Attorneys Jennifer M. Rozzoni, Timothy S. Vasquez and Joel R. Meyers are prosecuting the case, and Assistant U.S. Attorney Stephen R. Kotz is handling the forfeiture matters.
Resident of Quechee, Vermont, Pleads Guilty to Filing False Tax ReturnsRead the Press Release
CONCORD - Kurt Devoid, 60, of Quechee, Vermont, pleaded guilty in federal court today to filing false income tax returns, announced United States Attorney Scott W. Murray.
According to court documents, Devoid is a self-employed painter. Devoid’s personal federal income tax returns for tax years 2010 through 2013 were prepared by a commercial tax preparation office in Lebanon, New Hampshire. On the returns, Devoid reported income he received from commercial customers of his painting business, but failed to report substantial income he received from his residential customers. Devoid’s failure to report the true amount of his personal income during the four year period caused a tax loss of $98,482 to the United States Treasury.
DeVoid will be sentenced on August 22, 2018.
“The U.S. Attorney’s Office is committed to working with the IRS to enforce the federal tax laws,” said U.S. Attorney Murray. “This prosecution demonstrates that those who submit false or fraudulent tax returns will be held criminally responsible for their actions.”
“The American tax system is designed to provide vital government services to our citizens. It is not a slush fund for tax evaders,” said Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation’s Boston Field Office. “Those who illegally target our nation’s tax dollars for personal financial gain could face criminal prosecution and lengthy prison sentences."
The case was investigated by the Internal Revenue Service, Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorney Robert M. Kinsella.
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RSK Gang Members Sentenced to Lengthy Prison Terms for Conspiracy to Commit Acts of Racketeering, Including Murder, Kidnapping, Drug Trafficking, and Other OffensesRead the Press Release
PHOENIX – Yesterday afternoon, Devan Edward Leonard, 28, Kyle Filbert Gray, 26, and Lucille Jean Leonard, 48, members of the Navajo Nation, of Lukachukai, Ariz., were sentenced by United States District Judge David G. Campbell following their respective guilty pleas to RICO conspiracy for their participation in the violent Red Skin Kingz (“RSK”) criminal gang. Devan Leonard, the leader of RSK, was sentenced to 50 years’ imprisonment; Kyle Gray was sentenced to 30 years’ imprisonment; and Lucille Leonard was sentenced to 10 years’ imprisonment.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Elizabeth A. Strange, First Assistant United States Attorney for the District of Arizona, FBI Special Agent in Charge Michael DeLeon, District of Arizona, and Colonel Frank Milstead, Arizona Department of Public Safety announced the sentencings. FBI Special Agent in Charge Michael DeLeon also expressed his appreciation to the Navajo Nation Department of Public Safety and the Arizona Department for Public Safety for their partnership and significant assistance during the investigation.
“The investigation and prosecution of these RSK gang members required tremendous work by FBI, Arizona DPS, Navajo Nation DPS, and the prosecution team,” stated First Assistant U.S. Attorney Elizabeth A. Strange. “I applaud their dedication and perseverance in obtaining the sentences imposed today. This case is a testament to our office’s commitment to use every available resource to combat gang violence in Arizona and to bring justice to the victims of violent crime.”
As detailed in the Second Superseding Indictment, Devan Leonard, Kyle Gray, and Lucille Leonard are members of the RSK. RSK operated on the eastern side of the Navajo Nation in the District of Arizona. RSK was responsible for at least three murders, attempted murder, aggravated assaults, carjacking, kidnappings, sexual assaults, and drug trafficking, amongst other crimes.
On or between Dec. 12 and Dec. 13, 2014, Devan Leonard and another RSK member shot and killed two men and then transported their bodies to a remote “wash” in Lukachukai, Ariz., on the Navajo Indian Reservation, where the bodies were dismembered, burned, and buried to conceal the killings.
On Dec. 16, 2014, Kyle Gray and Devan Leonard shot and killed another victim immediately following a drug trafficking transaction. Later, Devan Leonard and Kyle Gray transported the victim’s body to a remote sheep camp on the reservation, where they dismembered and burned the victim’s body as they forced the victim’s girlfriend to watch.
Lucille Leonard held a leadership role in RSK, mostly participating in and overseeing RSK’s drug trafficking activities, including the collection of debts owed to RSK.
The Second Superseding Indictment in this matter was the result of an investigation conducted by the Federal Bureau of Investigation, the Arizona Department of Public Safety, the Navajo Nation Department of Public Safety, the U.S. Attorney’s Office for the District of Arizona, and the Criminal Division’s Organized Crime and Gang Section. Assistant U.S. Attorneys Dimitra Sampson and Tracy Van Buskirk of the District of Arizona, and Trial Attorneys Kelly Pearson and Hans Miller of the Criminal Division’s Organized Crime and Gang Section, prosecuted the case.
CASE NUMBER: CR-15-8076-PCT-DGC (JZB)
RELEASE NUMBER: 2018-061_ RSK
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
RSK Gang Members Sentenced to Lengthy Prison Terms for Conspiracy to Commit Acts of Racketeering, Including Murder, Kidnapping, Drug Trafficking and Other OffensesRead the Press Release
On May 9, three members of Red Skin Kingz, also known as RSK, were sentenced to prison following their respective guilty pleas to RICO conspiracy for their participation in the violent RSK criminal street gang.
Devan Edward Leonard, 28, of Lukachukai, Arizona, the leader of RSK, was sentenced to 50 years in prison; Kyle Filbert Gray, 26, of Lukachukai, Arizona, was sentenced to 30 years in prison; and Lucille Jean Leonard, 48, of Lukachukai, Arizona, was sentenced to 10 years in prison. All defendants were sentenced by U.S. District Judge David G. Campbell in the District of Arizona
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Elizabeth A. Strange for the District of Arizona, Special Agent in Charge Michael DeLeon of FBI’s Phoenix Field Office and Colonel Frank Milstead of the Arizona Department of Public Safety announced the sentencings. The Navajo Nation Department of Public Safety also provided significant assistance during the investigation.
As detailed in their three plea agreements, Devan Leonard, Kyle Gray, and Lucille Leonard are members of the RSK. RSK operated on the eastern side of the Navajo Nation in the District of Arizona. RSK was responsible for at least three murders, attempted murder, aggravated assaults, kidnappings, and drug trafficking, amongst other crimes.
On or between Dec. 12 and Dec. 13, 2014, Devan Leonard and another RSK member shot and killed two men, in Lukachukai, Arizona on the Navajo Indian Reservation, where the bodies were dismembered, burned and buried, to conceal the killings.
On Dec. 16, 2014, Kyle Gray and Devan Leonard shot and killed another victim immediately following a drug trafficking transaction. Later, Devan Leonard and Kyle Gray transported the victim’s body to a remote sheep camp on the reservation, where they dismembered, and burned the victim’s body.
Lucille Leonard held a leadership role in RSK, mostly participating in and overseeing RSK’s drug trafficking organization, including the collection of debts owed to RSK.
The second superseding indictment in this matter was the result of an investigation conducted by the FBI, the Arizona Department of Public Safety, the Navajo Nation Department of Public Safety, the U.S. Attorney’s Office for the District of Arizona, and the Criminal Division’s Organized Crime and Gang Section. Assistant U.S. Attorneys Dimitra Sampson and Tracy Van Buskirk of the District of Arizona, and Trial Attorneys Kelly Pearson and Hans Miller of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.
Quitman Sex Offender Has Supervised Release Revoked for Possessing Child PornographyRead the Press Release
VALDOSTA: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that on May 9, 2018, Senior United States District Court Judge Hugh Lawson revoked the Supervised Release for Ferrell Walker, age 50, of Quitman, Georgia and ordered him to serve sixty (60) months in the Bureau of Prisons following a two-day hearing.
Mr. Walker was convicted of Possession of Child Pornography in 2005 and sentenced to serve ten (10) years in prison. In May 2014, he was released on Supervised Release and the conditions of release were explained to him. A petition filed on November 16, 2017 alleged several violations including that on September 20, 2017, Mr. Walker committed the offense of Possession of Child Pornography in Brooks County, Georgia, as evidenced by child pornography images recovered from a Samsung cellular telephone (smart phone) found in his possession during a search conducted by the U.S. Probation Office.
At the conclusion of the hearing, the Court found that Walker had committed all the violations of supervised release including the offense of Possession of Child Pornography.
The case was investigated by United States Probation and the Federal Bureau of Investigation. Assistant United States Attorneys Julia C. Bowen and Leah E. McEwen prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Previously convicted felon sentenced to more than 3 years in prison for illegal possession of a firearmRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that a Shreveport man was sentenced Tuesday to 37 months in prison for illegal possession of a firearm.
Alvin Kincerely Law Jr., 30, of Shreveport, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of possession of a firearm by a convicted felon. He was also sentenced to three years of supervised release. According to the January 25, 2018 guilty plea, a Shreveport Police officer conducted a traffic stop on a red pickup truck Law was driving on June 26, 2017. Before the truck came to a stop, the officer saw a black object being tossed out of the driver’s side window. A firearm was later retrieved and was found to be a Lorcin, Mira Loma, CA, USA, model: L380, .380 caliber pistol. Law has a 2011 felony conviction for possession of marijuana, fourth offense and cannot legally possess a firearm.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney J. Aaron Crawford prosecuted the case.
Owner of Harris Therapy, Inc. Convicted on Healthcare Fraud ChargesRead the Press Release
HONOLULU – A federal jury today found Sheila Harris, 53, of Honolulu, guilty of wire fraud, aggravated identity theft, and false statements involving healthcare matters for her role in submitting false claims and documents to TRICARE, a federal health benefits program serving military families. Harris owned and operated Harris Therapy, Inc., which provided therapeutic services, including speech, physical, and occupational therapy, on Oahu. The jury verdict came one day after a ten-day trial.
According to information presented in court, from 2008 to 2012, Harris submitted false claims and documents to TRICARE for payment for speech therapy services that were not performed. On the claims, Harris falsified dates of services and the treating speech therapy provider. Three Speech Language Pathologists who treated patients for Harris Therapy during this timeframe testified at trial that Harris directed them to create false invoices and false therapy notes for dates when no speech therapy treatment took place. During an audit of Harris Therapy, Harris directed others to alter and falsify therapy notes that were then submitted to TRICARE. In all, the scheme to defraud involved over $339,628 of false speech therapy services billed to TRICARE for non-existent treatment dates. It also involved 2,117 dates of service billed to TRICARE falsely using the name of a therapist as the treating provider who was on maternity leave at the time the services were supposedly provided.
“Rooting out health care fraud is critical to protecting the integrity of the health care system as a whole,” said U.S. Attorney Kenji M. Price. “TRICARE provides valuable health benefits to military families, and we are committed to vigorously prosecuting all providers who try to undermine our healthcare delivery systems by defrauding the government.”
“Health care fraud is a serious offense that costs Americans billions of dollars” said Chris D. Hendrickson, Special Agent in Charge, Defense Criminal Investigative Service, Western Field Office. “These crimes affect real people and erode the trust that should exist between a patient and their health care provider. DCIS and our law enforcement partners are committed and determined to doing everything it takes to ensure the health care system works for military families – and not those, whether health care providers or others, who seek to abuse the system.”
Harris was convicted of eleven counts of wire fraud, two counts of aggravated identity theft, and four counts of false statements relating to healthcare matters. Harris will face a mandatory term of two years in prison for aggravated identity theft, up to twenty years in prison for each count of wire fraud, and up to five years in prison for each count of false statements relating to health care matters when she is sentenced on August 20, 2018, by Senior U.S. District Judge Helen Gillmor.
The investigation was led by Defense Criminal Investigative Service and the FBI. Assistant U.S. Attorneys Rebecca Perlmutter and Gregg Paris Yates handled the prosecution.
Operators of Millbury Plumbing Business Allegedly Used Family Business to Cover up Marijuana Grow OperationRead the Press Release
BOSTON – The operators of a family-owned business in Millbury were indicted today in federal court in Worcester on charges that they used their business to cover up a drug conspiracy.
Thomas Laverty, 38, of Clinton; Charles Laverty, 61, of Millbury; and Andrea Laverty, 61, of Millbury, were each charged with one count of conspiracy to manufacture more than 1,000 marijuana plants and one count of conspiracy to launder money. In addition, Thomas was charged with one count and Charles with two counts of manufacturing marijuana and possession of marijuana with intent to distribute. Thomas was also charged with theft of government funds relating to his receipt of Supplemental Nutrition Assistance Program (SNAP) benefits. In October 2017, all three defendants were charged by criminal complaint and arrested.
According to court documents, Andrea, Charles, and their son, Thomas, used their business, Chuck Laverty & Son Inc., as a front for a large-scale, commercial marijuana cultivation and distribution operation. Laverty & Son vehicles, bank accounts, and locations were used to facilitate drug manufacturing, storage and distribution.
On Oct. 17, 2017, two search warrants were executed, one at the business warehouse in Clinton, which is attached to Thomas Laverty’s residence, where agents found a commercial-style marijuana grow operation, including more than 1,000 plants; and another at the residence of Charles and Andrea Laverty in Millbury, where agents found a large quantity of marijuana being dried and processed, as well as another marijuana grow operation.
On the drug charges, each defendant faces a sentence of up to life in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $10 million (except for one charge of manufacturing and possession with intent to distribute, for which Charles faces a sentence of no greater than five years in prison, two years and up to a lifetime of supervised release, and a fine of $250,000). The charge of money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $500,000. The SNAP fraud charge provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Albert Angelucci, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Kristina O'Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
One Tax Preparer Pleads Guilty, Three Others Arraigned in Conspiracy to File False Income Tax ReturnsRead the Press Release
TRENTON, N.J. – One employee of an Essex County, New Jersey, tax preparation business pleaded guilty and three others were arraigned in federal court for their roles in a false income tax return conspiracy that caused tax losses of over $900,000, U.S. Attorney Craig Carpenito announced today.
Rudolph Sanders, 41, of Newark, New Jersey, pleaded guilty today before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to defraud the IRS from February 2011 through March 2013.
Joseph Kenny Batts, 49, of Elkridge, Maryland, Angelo K. Thompson, 38, of Reistertown, Maryland, and Tony V. Russell, 47, of Stone Mountain, Georgia, were arraigned before Judge Shipp on May 9, 2018. They are each charged by indictment with one count of conspiracy to defraud the IRS from February 2013 through February 2017. In addition, Batts is charged with five counts of aiding and assisting in the preparation of false federal income tax returns, Thompson is charged with two counts of aiding and assisting in the preparation of false federal income tax returns, and Russell is charged with one count of aiding and assisting in the preparation of false federal income tax returns.
In June 2017, Damien Askew, 39, of Union, New Jersey, pleaded guilty to his role in the scheme from 2011 to 2015 and awaits sentencing. All five defendants have been released on bail.
According to documents filed in this case and statements made in court:
From 2009 through April 2015, Batts and Askew co-owned Tax Pro’s, a tax return preparation and payroll business in Essex County where Sanders, Batts, Thompson, Russell, and Askew all prepared tax returns.
In order to boost their business, the defendants conspired to falsify their clients’ income tax returns for the purpose of generating refunds in amounts that their clients were not entitled to receive. For instance, Sanders, Batts, Thompson, Russell, and Askew fabricated or inflated their clients’ education credits, child care deductions, charitable contributions, unreimbursed employee expenses, and certain business losses.
Sanders and other members of the conspiracy also permitted Batts to use their identification numbers in order to conceal Batts’ identity as the actual tax return preparer, partly due to Batts’ prior tax fraud conviction.
After law enforcement executed a search warrant at Tax Pro’s in April 2015, Batts discontinued Tax Pro’s and opened Tax Solutions and Associates in Union, New Jersey, where Batts, Thompson, and Russell continued preparing false federal income tax returns.
By inflating the tax refunds through fraudulent means, Batts, Askew, Thompson, Russell, and Sanders caused a total tax loss to the United States of over $900,000.The conspiracy charge carries a maximum potential penalty of five years in prison. The aiding and assisting in the preparation of a false return charge carries a maximum potential penalty of three years in prison. Both charges carry a $250,000 fine, or twice the gross gain or loss from the offense.
Sanders’ sentencing is scheduled for Aug. 14, 2018. The charges and allegations against Batts, Thompson, and Russell are merely accusations, and they are presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson in Newark, with the investigation.
The government is represented by Assistant U.S. Attorneys Jihee G. Suh and Cari Fais of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel:
Sanders: Carol Gillen Esq.
Batts: Fred Klepp Esq.
Russell: Anthony Simonetti Esq.
Thompson: Scott A. Krasny Esq.
Askew: David Glassman Esq.Ohio Man Pleads Guilty in Rhode Island to Trafficking HeroinRead the Press Release
PROVIDENCE, RI – An Ohio man who traveled to Rhode Island, Massachusetts and New York City to participate in a conspiracy to traffic heroin imported from Guatemala through Mexico and into Rhode Island and elsewhere pleaded guilty in federal court in Providence today to trafficking heroin.
Michael Miller, 39, of Cincinnati, OH, pleaded guilty as charged by way of an indictment to one count each of conspiracy to distribute heroin and use of a communication device (cellphone) facilitating drug trafficking, announced United States Attorney Stephen G. Dambruch, Superintendent of the Rhode Island State Police Colonel Ann C. Assumpico and Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh.
Appearing before U.S. District Court Chief Judge William E. Smith, Miller admitted to the Court that at least from about April 2016, to May 23, 2016, he was in regular telephone communication with a Massachusetts woman, Olga Lidia Sandoval, and others, to arrange for the purchase of significant quantities of heroin from suppliers in Guatemala for the purpose of distributing it. Miller admitted to the Court that he travelled to Rhode Island, Massachusetts and New York City to meet with members of the conspiracy, and to take possession of and make payment for significant quantities of heroin. Miller admitted that on at least one occasion he provided an individual in New York City $50,000 in cash for the purpose of transferring the money to heroin suppliers in Guatemala as payment for a kilogram of heroin.
According to information presented to the Court, Miller’s drug trafficking activities came to the attention of law enforcement during extensive investigations into Sandoval’s and others’ drug trafficking activities. The investigations, which began in November 2015, included the use of electronic surveillance and the interception of telephone communications.
Olga Sandoval and a co-conspirator, Jose Luis Amparo Nova, 33, of North Providence, R.I., were indicted by a federal grand jury on June 16, 2016. Sandoval pleaded guilty on May 1, 2017, and Nova pleaded guilty on January 26, 2017, to conspiracy to possess with the intent to distribute more than one kilogram of heroin and possession with the intent to distribute more than one kilogram of heroin. Sandoval was sentenced on June 29, 2107, to 84 months in federal prison. Nova was sentenced on July 18, 2017, to 48 months in federal prison.
Miller, who has been detained since being taken into federal custody in Cincinnati, OH, in July 2017, is scheduled to be sentenced on August 22, 2018.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
The cases were investigated by the Rhode Island State Police High Intensity Drug Trafficking Area Task Force and Homeland Security Investigations.
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Ohio Hospital Operator Agrees to Pay United States $14.25 Million to Settle Alleged False Claims Act Violations Arising from Improper Payments to PhysiciansRead the Press Release
WASHINGTON – Mercy Health, a nonprofit organization based in Cincinnati that operates healthcare facilities in Ohio and Kentucky, has agreed to pay the United States $14,250,000 to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department announced today.
The settlement announced today resolved allegations that Mercy Health provided compensation to six employed physicians – one oncologist and five internal medicine physicians – that exceeded the fair market value of their services. Federal law restricts the financial relationships that hospitals may have with doctors who refer patients to them. These issues were self-disclosed to the government by Mercy Health.
“When physicians are rewarded financially for referring patients to hospitals or other health care providers, it can affect their medical judgment, resulting in overutilization of services and higher health care costs,” said Acting Assistant Attorney Chad A. Readler, head of the Justice Department’s Civil Division. “In addition to yielding a recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”
“Hospitals should employ their physicians at a compensation level that is consistent with fair market value for the area of practice, and should not attempt to incentivize physicians to refer patients based on anything other than the best clinical interests of the patient,” said First Assistant United States Attorney Vipal Patel for the Southern District of Ohio.
The case was handled by the Justice Department’s Civil Division, the United States Attorney’s Office for the Southern District of Ohio, the Office of Inspector General of the Department of Health and Human Services, and the Centers for Medicare and Medicaid Services. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Norwalk Man Sentenced to 41 Months in Federal Prison for Trafficking Cocaine and Illegally Possessing GunsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that STEPHEN MAZZO, 34, of Norwalk, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 41 months of imprisonment, followed by three years of supervised release, for trafficking cocaine and illegally possessing firearms. Judge Bryant also ordered MAZZO to pay a $5,000 fine.
According to court documents and statements made in court, the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force received information that MAZZO was trafficking cocaine in the Stamford area. On May 31, 2017, investigators conducting surveillance on MAZZO observed him exit a Norwalk hotel carrying a plastic shopping bag that he had not been carrying when he had entered the hotel. Law enforcement stopped MAZZO’s vehicle a short time later on Route 15 south in Stamford. A search of the vehicle and the plastic shopping bag revealed more than 400 grams of cocaine. MAZZO was arrested on state charges at that time.
Investigators returned to the hotel and determined that MAZZO had met with Dominick Pacifico, who had been residing at the hotel for several weeks. A search of Pacifico’s hotel room revealed items used to package drugs for distribution, and a search of Pacifico’s vehicle revealed approximately 959 grams of cocaine separated in multiple packages for distribution, and $34,525 in cash.
A search of MAZZO’s residence revealed a semi-automatic pistol, a multi-caliber rifle, a 12-gauge shotgun, and shotgun shells. As a result of his previous state convictions for felony drug offenses, MAZZO is prohibited from possessing firearms and ammunition.
On February 15, 2018, MAZZO pleaded guilty to one count of possession with intent to distribute cocaine, and one count of possession of firearms and ammunition by a convicted felon.
MAZZO, who is released on a $200,000 bond, was ordered to report to prison on June 21.
On December 7, 2017, Pacifico pleaded guilty to one count of possession with intent to distribute, and distribution of, 500 grams or more of cocaine. On March 9, 2018, he was sentenced to 60 months of imprisonment.
The DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force includes members of the DEA, Connecticut State Police and the Norwalk, Stamford, Stratford and Milford Police Departments.
This case was prosecuted Assistant U.S. Attorney Joseph Vizcarrondo.
New Orleans Man Indicted for Possession of Child PornographyRead the Press Release
CHARLES F. HALL (“HALL”), age 60, of New Orleans, Louisiana, was indicted today for possession of child pornography, announced United States Attorney Duane A. Evans.
The case against HALL began on April 12, 2018, when HALL entered the Social Security Administration’s (“SSA”) offices located on the fifth floor of 400 Poydras Street, in New Orleans, Louisiana. The SSA offices are leased by the General Services Administration (“GSA”) and are within the jurisdiction of the Federal Protective Service (“FPS”), a department of the U.S. Department of Homeland Security. The SSA office employs an administrative security screening process for all visitors whereby Paragon Systems Incorporated Protective Security Officers (“PSO”) conduct a search for weapons and explosives. As part of this screening process, HALL was instructed to take all metal items out of his pockets prior to passing through the magnetometer. When HALL produced a cellular phone from his pocket, the PSOs asked HALL to silence his cellular phone while he was in the office. When HALL accessed his cellular phone to silence it, the screen lit up and displayed an image depicting the sexual victimization of a prepubescent child. HALL was taken into custody by officers with the FPS, Louisiana Bureau of Investigation, and Homeland Security Investigations.
U.S. Attorney Evans reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, HALL faces a maximum penalty of twenty (20) years imprisonment followed by up to a life term of supervised release, and a $250,000.00 fine. In addition, HALL will be required to register as a sex offender pursuant to the Sex Offender Registration and Notification Act.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Evans praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations, the Federal Protective Service, Paragon Systems Incorporated Protective Security Officers, and the Louisiana Bureau of Investigation in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U.S. Attorney Brian M. Klebba.
New Orleans Man Indicted for Possession of Child PornographyRead the Press Release
CHARLES F. HALL (“HALL”), age 60, of New Orleans, Louisiana, was indicted today for possession of child pornography, announced United States Attorney Duane A. Evans.
The case against HALL began on April 12, 2018, when HALL entered the Social Security Administration’s (“SSA”) offices located on the fifth floor of 400 Poydras Street, in New Orleans, Louisiana. The SSA offices are leased by the General Services Administration (“GSA”) and are within the jurisdiction of the Federal Protective Service (“FPS”), a department of the U.S. Department of Homeland Security. The SSA office employs an administrative security screening process for all visitors whereby Paragon Systems Incorporated Protective Security Officers (“PSO”) conduct a search for weapons and explosives. As part of this screening process, HALL was instructed to take all metal items out of his pockets prior to passing through the magnetometer. When HALL produced a cellular phone from his pocket, the PSOs asked HALL to silence his cellular phone while he was in the office. When HALL accessed his cellular phone to silence it, the screen lit up and displayed an image depicting the sexual victimization of a prepubescent child. HALL was taken into custody by officers with the FPS, Louisiana Bureau of Investigation, and Homeland Security Investigations.
U.S. Attorney Evans reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, HALL faces a maximum penalty of twenty (20) years imprisonment followed by up to a life term of supervised release, and a $250,000.00 fine. In addition, HALL will be required to register as a sex offender pursuant to the Sex Offender Registration and Notification Act.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Evans praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations, the Federal Protective Service, Paragon Systems Incorporated Protective Security Officers, and the Louisiana Bureau of Investigation in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U.S. Attorney Brian M. Klebba.
Navajo Woman Pleads Guilty to Federal Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Shannon Allen, 32, an enrolled member of the Navajo Nation who resides in Mariano Lake, N.M., pled guilty today in federal court in Albuquerque, N.M., to an involuntary manslaughter charge. Allen’s plea agreement recommends a 34-month prison sentence followed by a term of supervised release to be determined by the court.
Allen was arrested in Oct. 2017, on a criminal complaint charging her with killing a man on Sept. 23, 2017, on the Navajo Indian Reservation in McKinley County, N.M. According to the complaint, Allen killed the victim when she lost controlled of her vehicle and rolled her vehicle over. At the time, Allen was driving under the influence of alcohol.
Allen subsequently was indicted on Oct. 24, 2017, and was charged with involuntary manslaughter. During today’s proceedings, Allen pled guilty to the indictment and admitted killing the victim while driving recklessly and under the influence of alcohol. Allen acknowledged that the alcohol rendered her incapable of exercising clear judgment and a steady hand in operating the vehicle. A sentencing hearing has yet to be scheduled.
This case was investigated by the Navajo Nation Department of Public Safety and Assistant U.S. Attorney Raquel Ruiz-Velez is prosecuting the case.
Nampa Man Sentenced to Prison on Federal Drug ChargeRead the Press Release
BOISE – Adamsely Mendoza Mercado, 41, of Nampa, Idaho, was sentenced today to 151 months in prison followed by ten years of supervised release for distribution of methamphetamine, U.S. Attorney Bart M. Davis announced. A federal grand jury indicted Mercado on September 14, 2017.
According to court records, law enforcement used an undercover officer to arrange the purchase of three ounces of methamphetamine from Mercado. The officer met Mercado at his residence in Nampa, Idaho. The officer provided Mercado with cash and Mercado provided the officer with three ounces of methamphetamine. The Idaho State Police Forensics Lab determined over fifty grams was pure methamphetamine.
This case was investigated by the Treasure Valley Metro Violent Crimes Task Force. The Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
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Minnesota Man Pleads Guilty to Drug TraffickingRead the Press Release
HELENA – Nathan Eli Johnson, a 34-year-old resident of Saint Paul Minnesota, entered a plea of guilty today to possession with intent to distribute 100 kilograms or more of marijuana. U.S. Senior District Judge Sam Haddon presided over the hearing.
On Saturday November 12, 2016, a Jefferson County Sheriff’s Office (JCSO) deputy made a traffic stop on Johnson’s Chevy Tahoe while traveling eastbound on Interstate I-90. The deputy had seen two vehicles traveling 95 miles per hour in an 80 mile per hour zone. The deputy was able to make a traffic stop on the Tahoe. The Tahoe was operated by Nathan Eli Johnson who held a suspended/revoked driver’s license out of Minnesota. Montana Highway Patrol (MHP) arrived to assist with the stop. During the contact with Johnson, MHP troopers could smell marijuana. Johnson told MHP that he had an eighth ounce of marijuana in his possession. Johnson gave MHP permission to search the Tahoe. When a trooper asked Johnson how much marijuana he would find, Johnson said, “I’m (expletive).” When the trooper again asked how much, Johnson said “a lot.” The trooper again confirmed consent to search and Johnson agreed.
During the search officers located 16 large duffel bags containing suspected marijuana. Each bag contained multiple pounds of marijuana. As a result of what was learned, JCSO requested assistance from the Southwest Montana Drug Task Force (SWMDTF) who helped to obtain a search warrant regarding additional items of contraband believed to be located in the Tahoe. Johnson stated that he had manufactured, processed, and transported approximately 388 pounds (approximately 175 kilograms) of marijuana which was located in the Tahoe. Johnson also stated he had been involved in the distribution, possession and manufacture of large amounts of marijuana for approximately six years. He stated he oversees the production and harvest of the marijuana in Oregon and transports and distributes the marijuana to multiple dealers in the St. Paul Minnesota area. Johnson stated during the six years he was operating as a large scale marijuana dealer he produced approximately 1,420 pounds of useable marijuana which he has sold for an approximate total of $1,704,000. This estimation appeared to investigators to be at the low end of the spectrum based upon the average street price of high grade marijuana in the St. Paul Minnesota area. Johnson further stated that upon returning to the St. Paul area, he had a group of 40 to 50 individuals he would contact for the purpose of distributing the marijuana.
Johnson’s sentencing hearing has been set for August 29, 2018 in Helena.
The case was prosecuted by Assistant U.S. Attorney Bryan R. Whittaker and investigated by the Jefferson County Sheriff’s Office, Montana Highway Patrol, and the South West Montana Drug Task Force.
Middlebury Man ConvictedRead the Press Release
SOUTH BEND –Michael S. Barber, age 22, of Middlebury, Indiana was convicted, on all counts, after a 3-day jury trial before District Court Judge Robert L. Miller, Jr, announced U.S. Attorney Kirsch.
The jury convicted Barber on one count of unlawfully taking one or more firearms from a “FFL” (Federal Firearms Licensee), one count of being a felon in possession of a firearm and one count of possession of stolen firearms.
According to records in the case, in February 2017, Barber and an accomplice broke into Dutchman Hunting Supplies in LaGrange County, Indiana and stole several firearms from the business. Dutchman Hunting Supplies was a licensed firearms dealer (FFL). Barber had a prior felony conviction so he was charged with being a felon in possession of a firearm. Barber’s accomplice, Anthony S. Chipps, on December 4, 2017, pled guilty to theft of firearms from a licensed firearms dealer; Chipps has not yet been sentenced.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Mishawaka Police Department. This case was prosecuted by Assistant United States Attorney Molly E. Donnelly.
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Medical assistant resolves false claims act allegationsRead the Press Release
ATLANTA – Robert Gennaro, a medical assistant, has agreed to be excluded from federal healthcare programs for a period of 10 years to resolve allegations that he impersonated a physician when providing remote surgical monitoring services, causing the submission of false claims to the federal government. The effect of the exclusion is federal healthcare programs will not make any payments to Gennaro, or anyone who employs him, for any services provided by Gennaro.
“Gennaro put patients at risk by impersonating a physician when remotely monitoring the neurological health of patients during surgery,” said U.S. Attorney Byung J. “BJay” Pak. “Gennaro will now be excluded from participating in all federal healthcare programs for 10 years.”
“The health and safety of the public is a high priority for law enforcement,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health & Human Services, Office of Inspector General in Atlanta. “Anyone who puts monetary gains above health and safety will be held accountable.”
“Not only did Gennaro put patients at risk, but his actions threatened the integrity of our healthcare system at the expense of honest citizens,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The FBI is determined to protect our citizens, and root out waste and abuse.”
The government alleges that Gennaro caused the submission of false claims to Medicare, TRICARE, and Federal Employee Health Benefit Plans for the online, real- time intraoperative monitoring of surgeries he observed (even though he is not a physician) and he falsely represented the surgeries had been monitored by Dr. Robert Windsor during the period from March 1, 2009 through July 31, 2013. Dr. Windsor was sentenced to three years, two months in federal prison followed by three years of supervised release in connection with his role in the scheme. Windsor also entered into a consent judgment with the U.S. for $20 million, settling the intraoperative monitoring conduct and allegations that he and his pain management clinics performed medically unnecessary diagnostic tests.
The settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia by Kris Frankenberg under the qui tam, or whistleblower, provisions of the False Claims Act. United States ex rel. Frankenberg v. Windsor et al., No. 1:12-cv-3114 (N.D. Ga.). Under the Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery.
This settlement highlights a powerful tool to protect federal healthcare programs and beneficiaries and to hold accountable those who commit healthcare fraud—the exclusion authority of the U.S. Department of Health & Human Services Office of Inspector General (HHS-OIG). Section 1128 of the Social Security Act gives HHS-OIG the authority to exclude individuals and entities from participation in federal healthcare programs for fraud or other misconduct.
The claims resolved are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health & Human Services Office of Inspector General, the Federal Bureau of Investigation, and the Defense Criminal Investigative Service.
The civil settlement was reached by Assistant U.S. Attorney Lena Amanti.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Manhattan Art Consultant Pleads Guilty to Failing to Disclose Millions in Swiss Bank AccountRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that LACY DOYLE pled guilty today in connection with her maintenance of a secret, undeclared bank account in Switzerland. DOYLE pled guilty before United States District Judge Andrew L. Carter to subscribing to a false tax return.
U.S. Attorney Geoffrey Berman said: “Lacy Doyle has admitted going to great lengths to hide millions of dollars in assets from the IRS in an overseas bank account. Today’s guilty plea demonstrates that those who engage in elaborate and dishonest schemes to avoid paying their fair share of taxes will be caught and held responsible for their actions.”
As alleged in the Indictment and other documents filed in the case, DOYLE, assisted by others – including Beda Singenberger, a Swiss citizen who ran a financial advisory firm – established and maintained undeclared bank accounts in Switzerland and hid those accounts from the IRS. DOYLE used a sham entity to conceal from the IRS her ownership of some of the undeclared accounts and deliberately failed to report to the IRS the accounts and the income generated in the accounts.
In 2003, DOYLE’s father died, and DOYLE was appointed the executor of her father’s estate. At that time, DOYLE and her father jointly held an account at Credit Suisse with a value of approximately $3,700,000. DOYLE then made court filings falsely stating under penalty of perjury that the total value of her father’s estate was under $1 million when, in truth and fact, it was more than four times that amount. Doyle initially held the secret inheritance from her father in an account at Credit Suisse under her own name.
Thereafter, in 2006, DOYLE, with Singenberger’s assistance, opened an undeclared Swiss bank account for the purpose of depositing the secret inheritance from her father. The account was opened in the name of a sham foundation formed under the laws of Lichtenstein to conceal DOYLE’s ownership. As of May 15, 2007, the account held assets valued at approximately $5,056,548.
In 2010, the sham foundation controlled by DOYLE was re-domiciled from Lichtenstein to Panama. As of December 31, 2016, the sham foundation maintained assets of at least approximately $3,028,562.
Singenberger was charged on July 21, 2011, with conspiring with U.S. taxpayers and others to defraud the United States, evade U.S. income taxes, and file false U.S. tax returns. He remains at large.
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DOYLE, 61, who resides in Manhattan, faces a maximum term of three years in prison, and will be sentenced before Judge Carter. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the IRS and also thanked the U.S. Department of Justice’s Tax Division for their assistance.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Katherine C. Reilly and Jared Lenow are in charge of the prosecution.
Man from Texas Charged with Taking Kansas Teenager Across State Lines for SexRead the Press Release
WICHITA, KAN. – A man from Texas was charged in federal court here today with taking a Hutchinson, Kan., girl across state lines for sex, U.S. Attorney Stephen McAllister said.
Juan Carlos Carmona, 36, Houston, Texas, is charged with one count of traveling from Texas to Kansas to have sex with a minor and one count of transporting a minor from Kansas to Texas to have sex with her.
The complaint alleges the investigation began May 6 when a 15-year-old girl living in Hutchinson was reported missing. Investigators learned that in April 2018 Carmona drove from Texas to meet the girl and have sex with her. He rented a room in Hutchinson at a local hotel where he and the girl met. After returning to Texas, Carmona came back to Kansas in May, picked up the girl and drove her back to Houston, where the two had sex.
If convicted, Carmona faces up to 30 years in federal prison and a fine up to $250,000 on the first count and not less than 10 years and a fine up to $250,000 on the second count. The FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Major Twin Cities Drug Trafficker Sentenced to 25 Years in PrisonRead the Press Release
United States Attorney Gregory G. Brooker today announced the sentencing of ALEJANDRO LLAMAS-DELGADO, 24, to 25 years in prison for methamphetamine and cocaine trafficking-related offenses. On December 20, 2017, LLAMAS-DELGADO and his two coconspirators, GREGORIO RAMIREZ-MALDONADO, 28, and ERICK PARRA-SALAZAR, 24, were found guilty by a federal jury of conspiracy to distribute controlled substances, and possession with intent to distribute cocaine. RAMIREZ-MALDONADO was sentenced on April 30, 2018, to 63 months in prison; PARRA-SALAZAR is scheduled to be sentenced in U.S. District Court on May 11, 2018. In July 2017, codefendant COLIN BLAIR MCAFEE, 47, pleaded guilty to one count of possession with intent to distribute cocaine and was sentenced to 37 months in prison.
Assistant United States Attorney Thomas M. Hollenhorst stated, “Llamas-Delgado’s arrest and conviction played a significant role in disrupting a major drug trafficking organization responsible for the distribution of hundreds of pounds of cocaine and methamphetamine in the State of Minnesota over a three-year period. The 25 year prison sentence imposed by the Court is a just consequence of this defendant’s crimes.”
As proven at trial, from 2014 through May 2017, LLAMAS-DELGADO led and operated a drug trafficking organization responsible for transporting and distributing methamphetamine and cocaine from Texas and California into Minnesota. RAMIREZ-MALDONADO and PARRA-SALAZAR assisted LLAMAS-DELGADO by transporting approximately two kilograms of cocaine from Texas to the Twin Cities.
As proven at trial, in June 2014, law enforcement agents in California seized approximately 17 pounds of cocaine and 25 pounds of methamphetamine concealed in hidden compartments under the front seats of a 2005 Mini-Cooper that had been loaded onto a vehicle transport carrier destined for LLAMAS-DELGADO in the Twin Cities area. During the spring of 2017, law enforcement agents in the Twin Cities area conducted surveillance of LLAMAS-DELGADO and his coconspirators that revealed multiple residences linked to the conspiracy’s drug trafficking activities. On May 15, 2017, law enforcement agents conducted simultaneous searches of several residences, resulting in the seizure of more than $40,000 in cash, 28 pounds of marijuana, over 750 grams of cocaine, a firearm, and other drug trafficking paraphernalia.
This case was the result of an investigation by the U.S. Drug Enforcement Administration, Orono Police Department, Riverside County Sheriff’s Office (California), Albertville Police Department, Brooklyn Center Police Department, Wright County Sheriff’s Office, Hennepin County Sheriff’s Office, the Minnesota State Patrol, and the California Highway Patrol.
Assistant U.S. Attorneys Thomas M. Hollenhorst and Sarah E. Hudleston prosecuted this case.
Defendant Information:
ALEJANDRO LLAMAS-DELGADO, 24
Brooklyn Center, Minn.
Convicted:
- Conspiracy to distribute methamphetamine and cocaine, 1 count
- Possession with intent to distribute cocaine, 1 count
Sentenced:
- 300 months in prison
- Five years of supervised release
GREGORIO RAMIREZ-MALDONADO, 28
Houston, Texas
Convicted:
- Conspiracy to distribute cocaine, 1 count
- Possession with intent to distribute cocaine, 1 count
Sentenced:
- 63 months in prison
- Four years of supervised release
ERICK PARRA-SALAZAR, 24
Houston, Texas
Convicted:
- Conspiracy to distribute cocaine, 1 count
- Possession with intent to distribute cocaine, 1 count
COLIN BLAIR MCAFEE, 47
Brooklyn Park, Minn.
Convicted:
- Possession with intent to distribute cocaine, 1 count
Sentenced:
- 37 months in prison
- Three years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Louisville Man Pleads Guilty to Attempted Distribution of Obscene Material to A MinorRead the Press Release
LOUISVILLE, Ky. – A Louisville man pled guilty to violating federal child exploitation laws earlier today in United States District Court, announced United States Attorney Russell M. Coleman. Scott Louis Craven, 36, admitted to online communications with a person he believed to be a 15-year-old girl. During those communications, he sent obscene materials to what he believed to be the youth.
“One of the fundamental duties of government is to protect the most vulnerable among us” stated U.S. Attorney Russell Coleman. “The Department of Justice will continue to work alongside our law enforcement partners to vigorously prosecute those that target our children for their own foul gratification.”
According to the plea agreement and other court records, during April 2017, an investigator with the Kentucky Attorney General’s Office – Department of Criminal Investigations conducted an online undercover investigation. During that investigation, the investigator (in his undercover capacity), was contacted by Craven while both were using the social media platform KIK. The investigator identified himself as a 15-year-old girl from Louisville. During the online conversations, particularly on April 28, 2017, Craven sent the undercover nude images of himself as along with sexually graphic videos.
Craven will be sentenced on August 13, 2018, at 11:00 a.m. before United States District Judge Claria Horn Boom. Craven faces a maximum potential sentence of 10 years in prison, a $250,000.00 fine and at least five years of Supervised Release. There is no parole in the federal system. Craven remains in the custody of the United States Marshals Service.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Kentucky Office of Attorney General’s Department of Criminal Investigations conducted the investigation with assistance from the Louisville Metro Police Department and the United States Secret Service.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Louisiana Man Charged with Attempted Bank RobberyRead the Press Release
U.S. Attorney Duane A. Evans announced that MICHAEL COLLIER, age 56, of New Orleans, was indicted today by a federal grand jury for attempted bank robbery.
According to the indictment, on April 25, 2018, COLLIER attempted to rob the Capital One Bank located at 2700 South Claiborne Avenue, New Orleans, LA.
If convicted, COLLIER faces a sentence of up to twenty years in prison, a fine of up to $250,000, and up to three years supervised release.
U.S. Attorney Evans reiterated that an Indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Gregory Kennedy is in charge of the prosecution.
Lockport Man Pleads Guilty for His Role in Narcotics ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Joseph Thompson, 68, of Lockport, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to conspiracy to possess with intent to distribute, and to distribute, 40 grams or more of a mixture or substance containing fentanyl. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine of $5,000,000.
Assistant U.S. Attorneys Meghan A. Tokash and Michael P. Felicetta, who are handling the case, stated that between June 2013 and September 2015, the defendant conspired with others to distribute fentanyl, heroin, and cocaine.
On February 13, 2015, the Niagara County Drug Task Force conducted a controlled buy at Thompson’s residence on Elmwood Avenue. The drug sold by the defendant tested positive for fentanyl. On March 4, 2015, the task force conducted a second controlled buy at Thompson’s residence. The drug sold by the defendant during the second buy tested positive for heroin.
On March 10, 2015, a New York State search warrant was executed at Thompson’s residence. Law enforcement officers recovered approximately 88 grams of fentanyl, 60 grams of heroin, and 17 grams of crack cocaine. A digital scale, baggies, and $1,955.00 in cash were also seized.
During the course of the conspiracy, the defendant distributed various types of drugs to as many as 10 customers daily.
Thompson was one of 17 defendants indicted in August of 2016 for his role in a drug trafficking organization that utilized contacts and sources of supply from Mexico, California, and elsewhere. The organization trafficked thousands of kilograms of illegal narcotics, including heroin, fentanyl, and cocaine throughout the United States, including Lockport, Niagara Falls, and Buffalo. He is the third defendant to be convicted.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, 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 7, 2018, at 9:30 a.m. before Judge Vilardo.