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Friday 27 April 2018
Cardiovascular and Thoracic Surgeons of Nevada Inc. Agrees to Pay $1.5 Million to Settle False Claims Act AllegationsRead the Press Release
LAS VEGAS, Nev. – Cardiovascular and Thoracic Surgeons of Nevada, Inc. (CTS), a Las Vegas medical practice whose principal physician is Dr. Bashir Chowdhry, has agreed to pay $1.5 million to the United States to resolve allegations relating to its potential liability under the civil False Claims Act.
United States Attorney Dayle Elieson for the District of Nevada; Special Agent in Charge Christian J. Schrank for the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); Special Agent in Charge A.E. Pleasant for the U.S. Department of Veterans Affairs, Office of Inspector General (VA-OIG), Criminal Investigations Division, Western Field Office; and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division made the announcement.
The settlement announced today resolves allegations that, from January 1, 2006 through May 31, 2011, CTS violated the False Claims Act by billing federal healthcare programs, including Medicare and the U.S. Department of Veterans Affairs, for surgical services not actually provided to its cardiac patients, and also billing for more expensive surgical and evaluation and management services than those actually provided to its patients.
“It is important to maintain the integrity of federal healthcare programs,” said U.S. Attorney Elieson for the District of Nevada. “Medical providers who misuse these programs negatively impact patients and taxpayers.”
“When providers bill government health programs for services never rendered, as alleged here, precious resources are diverted from vulnerable individuals,” said SAC Schrank for the HHS-OIG. “Suspected violators can expect to pay a price.”
“Physicians who engage in cost mischarging for services provided to veterans will be aggressively pursued by the Office of Inspector General and held accountable to the full extent of the law,” said SAC Pleasant for the VA-OIG.
“The FBI will continue to investigate companies that profit from exploiting patients who are searching for treatments to critical medical illnesses,” said SAC Rouse for the FBI.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General; U.S. Department of Veterans Affairs, Office of Inspector General; and the FBI. Assistant U.S. Attorney Roger Wenthe handled the case on behalf of the U.S. Attorney’s Office.
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Cape Girardeau Resident Sentenced for Southern Illinois Methamphetamine OffenseRead the Press Release
On April 24, 2018, Carlos L. Hemphill, a/k/a "Los," age 35, of Cape Girardeau, Missouri, was sentenced to 135 months in federal prison for a methamphetamine offense, United States Attorney for the Southern District of Illinois Donald S. Boyce announced today. Hemphill previously pled guilty to a one-count superseding indictment charging conspiracy to distribute more than 50 grams of methamphetamine. His sentence includes five years of supervised release and a $600 fine.
Evidence at the plea and sentencing hearings established that Hemphill was involved with others in the distribution of methamphetamine. The methamphetamine was distributed between November 2016, and August 2017, in Williamson and Jackson Counties. At sentencing, the district judge found that Hemphill was responsible for the distribution of more than 3.7 kilograms of a methamphetamine. Hemphill received an enhanced sentence based on his possession of a firearm during the methamphetamine offense.
The investigation was conducted by the Southern Illinois Enforcement Group. The SEMO Drug Task Force, Herrin Police Department, Carbondale Police Department, and Drug Enforcement Administration also assisted in the investigation.
California Man Arraigned in New Mexico on Federal Indictment Charging him with Scheme to Fraudulently Create and Sell Jewelry as Native American-MadeRead the Press Release
ALBUQUERQUE – Robert Haack, 51, of Los Angeles, Calif., was arraigned yesterday afternoon on a federal indictment charging him with violating the Indian Arts and Crafts Act (IACA) by fraudulently creating and selling jewelry as Native American-made. The indictment, which was filed by a federal grand jury sitting in Albuquerque, N.M., on March 28, 2018, was the result of a federal investigation led by the U.S. Department of Interior, Fish and Wildlife Service, Office of Law Enforcement.
“This indictment is not only about enforcing the law, it is also about protecting and preserving the cultural heritage of Native Americans,” said U.S. Attorney John C. Anderson. “This case demonstrates our willingness to prosecute those who falsely market products as “Indian Made,” and thus undermine the livelihoods of Native American artists.”
“Every indictment filed under the Indian Arts and Crafts Act brings us closer to bringing justice to the Native American artists who are harmed by forgery and fraud in the marketplace,” said Edward Grace, Acting Assistant Director of the Office of Law Enforcement for the U.S Fish and Wildlife Service. “We hope this and other indictments will deter further this type of harmful criminal activity. We thank the law enforcement agencies that supported us and partnered with us during this investigation.”
The six-count indictment charges Haack with two counts of wire fraud, two counts of mail fraud and two counts of violating the IACA. During yesterday’s arraignment hearing, which Haack participated in through video teleconferencing from California, Haack entered a not guilty plea to the indictment and was released on pretrial supervision and other conditions of release pending trial, which has yet to be scheduled.
According to the indictment, from April 4, 2013 through April 21, 2013, and from June 15, 2014 through June 20, 2014, Haack violated the IACA by displaying and offering for sale jewelry in a manner that suggested that it was Indian produced and the product of American Indian tribes. The indictment alleges that Haack defrauded the United States and its people of money by using the U.S. mail and wire communications to promote the sale of the counterfeit jewelry as Indian-made.
The indictment further alleges that from April 4, 2013 through June 20, 2014, Haack devised a scheme to defraud and to obtain money from others by using an online marketplace and online payment platform to advertise and sell counterfeit pieces of Indian jewelry that Haack falsely represented as having been created by the late Charles Loloma, a renowned Hopi Indian artist. According to the indictment, Haack allegedly created and produced the counterfeit jewelry in his home in Los Angeles and delivered the counterfeit jewelry to a purchaser in Albuquerque through the U.S. Postal Service.
The indictment includes forfeiture provisions, which seek to forfeit to the United States any proceeds used in or traceable to Haack’s alleged criminal activities, and seek a money judgment against Haack in the amount of at least $19,398.
If convicted of the charges against him, Haack faces a statutory maximum penalty of five years in prison and a $250,000.00 fine. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the U.S. Department of Interior, Fish and Wildlife Service, Office of Law Enforcement. Assistant U.S. Attorney Jennifer M. Rozzoni is prosecuting the case.
The IACA prohibits the offer or display for sale, or the sale of any good in a manner that falsely suggests that it is Indian produced, an Indian product, or the product of a particular Indian and Indian tribe. The law is designed to prevent products from being marketed as “Indian made,” when the products are not, in fact, made by Indians. It covers all Indian and Indian-style traditional and contemporary arts and crafts produced after 1935, and broadly applies to the marketing of arts and crafts by any person in the United States. IACA provides critical economic benefits for Native American cultural development by recognizing that forgery and fraudulent Indian arts and crafts diminish the livelihood of Native American artists and craftspeople by lowering both market prices and standards.
Broward County Resident Sentenced to 20 Years in Prison for Producing and Possessing Child PornographyRead the Press Release
Juan Sebastian Chavez, 26, of Fort Lauderdale, was sentenced today to 20 years in prison for possessing and producing child pornography.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI); and Rick Maglione, Chief, Fort Lauderdale Police Department, made the announcement.
United States District Judge Kenneth A. Marra sentenced Chavez to 240 months in prison and a lifetime of supervised release. Chavez must also register as a sex offender. Chavez previously pled guilty to one count of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B), and one count of production of child pornography, in violation of Title 18, United States Code, Section 2251(a) and 2251(e).
According to court documents, beginning in April 2014, through September 2014, Chavez persuaded, induced, enticed and coerced a minor female child to engage in sexually explicit conduct. Chavez captured images of the sexually explicit conduct with his cellular telephone. Chavez also possessed images and videos of child pornography on his computers.
Mr. Greenberg commended the investigative efforts of HSI-ICE and the Fort Lauderdale Police Department in this matter. This case was prosecuted by Assistant U.S. Attorneys Jodi L. Anton and Francis Viamontes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Brazilian National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Brazilian national was charged yesterday in federal court in Boston with illegally reentering the United States after being deported.
Adilson Barbosa, 40, was indicted on one count of illegal reentry of a deported alien.
According to court documents, on Dec. 6, 2017, law enforcement officers in Framingham encountered Barbosa and determined him to be unlawfully present in the United States. Barbosa was previously deported on Aug. 23, 2017.
Barbosa faces a sentence of no greater than two years in prison, one year of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. 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 Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Braxton County man admits to firearm and drug chargesRead the Press Release
ELKINS, WEST VIRGINIA – Charles William Masters, of Burnsville, West Virginia, has admitted to firearm and drug charges, United States Attorney Bill Powell announced.
Masters, age 44, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine,” and one count of “Carry a Firearm During a Drug Trafficking Crime.” Masters admitted to illegally possessing a 9mm pistol while possessing methamphetamine on July 3, 2017 in Lewis County, West Virginia.
Masters faces up to 40 years incarceration and a fine of up to $5,000,000 for the methamphetamine count, and up to life incarceration and a fine of up to $250,000 for the firearm count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, the Drug Enforcement Administration, and the Lewis County Sheriff’s Office investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Boston-Area Investment Adviser Pleads Guilty to FraudRead the Press Release
BOSTON – A Boston-area investment adviser pleaded guilty yesterday in federal court in Boston to using his clients’ funds to make his own investments and to pay personal expenses.
James Polese, 51, of Wenham, pleaded guilty to one count of conspiracy and investment adviser fraud, eight counts of bank fraud, and one count of aggravated identity theft. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Aug. 2, 2018. In January 2018, Polese and Cornelius Peterson, 28, of Newton, were charged and agreed to plead guilty.
From approximately 2014 to June 2017, Polese and Peterson misappropriated approximately half a million dollars from their clients by transferring funds out of their clients’ accounts without their knowledge or consent. Specifically, On Aug. 20, 2014, Polese and Peterson used $100,000 from a client’s account to invest in a wind farm project despite the fact that it was not an investment opportunity authorized by their company. On May 15, 2015, Polese and Peterson used $400,000 from another client’s account to back a letter of credit in support of the wind farm project. On multiple occasions in 2017, Polese transferred funds from a client’s account to pay personal expenses, including college tuition payments and credit card bills. Polese and Peterson were terminated from the company in June 2017.
The charges of conspiracy and investment adviser fraud each provide for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,00 or twice the gross gain or loss, whichever is greater. The charge of bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release and a fine of $250,00 or twice the gross gain or loss, whichever is greater. The charge of aggravated identity theft provides for a mandatory consecutive term of two years in prison. 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 Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Securities & Exchange Commission also provided valuable assistance with the investigation. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Economic Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Boston Man Pleads Guilty to Possession of Fentanyl, Cocaine, Firearm, and AmmunitionRead the Press Release
BOSTON – A Boston man pleaded guilty today to federal drug and firearm charges arising out of a large-scale seizure of fentanyl and other contraband.
Edgar Belis, 34, pleaded guilty to one count of possession with intent to distribute fentanyl and cocaine and one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for July 27, 2018.
In 2015, law enforcement identified Belis as a large-scale heroin trafficker in the Boston area. At the time, Belis had been convicted of heroin-related offenses on at least four prior occasions in Massachusetts state court.
In 2016, using a cooperating witness, law enforcement arranged calls with Belis seeking to purchase heroin. During those calls, Belis stated that he had kilogram quantities of heroin to sell, but suggested that the heroin must contain fentanyl or customers on the street would notice a difference. Belis stated that he would be willing to sell heroin or fentanyl for $40,000 per kilogram.
On May 3, 2016, a cooperating witness called Belis and placed an order for two kilograms of heroin. The purchase was set up for three days later. On May 6, 2016, law enforcement surveilled Belis as he drove from Hopkinton to Boston, where he picked up a backpack from a basement apartment. Belis then travelled to a prearranged meeting location in South Boston, where he was met by law enforcement agents. Belis ignored several orders to exit the vehicle and locked himself in the car. Agents broke the car windows and arrested Belis. A search of the backpack in the car resulted in the seizure of approximately 2.35 kilograms of fentanyl and approximately 250 grams of cocaine.
Later that day, agents executed a search warrant at the apartment associated with Belis, and seized an additional 300 grams of fentanyl, approximately 125 grams of cocaine, $57,500 in cash, a Glock Model 22 .40 caliber pistol, and 31 rounds of .40 caliber ammunition.
The charge of distribution of fentanyl and cocaine involving over 400 grams of fentanyl provides for a mandatory minimum sentence of 10 years and up to life in prison, a minimum of five years and up to a lifetime of supervised release, and a fine up to $10 million. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. If Belis is determined to be an armed career criminal under federal law, he will face a mandatory minimum sentence of 15 years and up to life in prison. 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, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Boston Police Commissioner William B. Evans made the announcement today.
Blue Springs, Sugar Creek Men Sentenced to 15 Years for Luring Robbery Victims with Online AdsRead the Press Release
KANSAS CITY, Mo. – Three men have been sentenced in federal court this week for their roles in a conspiracy to commit a series of armed robberies by luring their victims with online advertisements and ambushing them.
Rodney E. Brock, 21, of Blue Springs, Mo., was sentenced by U.S. Chief District Judge Greg Kays today to 15 years in federal prison without parole. Sage Harrison, 36, of Independence, Mo., was sentenced on Thursday, April 26, 2018, to five years in federal prison without parole. Kenneth W. Sexson, 34, of Sugar Creek, Mo., was sentenced on Wednesday, April 25, 2018, to 15 years in federal prison without parole.
Brock, Harrison and Sexson each pleaded guilty to participating in a conspiracy to commit armed robberies from April 1, 2015, to June 7, 2016. Brock also pleaded guilty to two counts of armed robberies committed in October 2015 and one count of carjacking. Harrison also pleaded guilty to two counts of armed robberies committed in October 2015. Sexson also pleaded guilty to six counts of armed robberies committed in October 2015, and to being a felon in possession of a firearm.
Co-conspirators posted ads on several websites in order to entice customers to meet in person at area hotels, residences and apartments in Kansas City, Mo. When the customers arrived, co-conspirators were lying in wait, armed with firearms and weapons that appeared to be firearms. They ambushed and robbed the customers at gunpoint.
According to court records, the proceeds of the robberies was divided up and usually used to pay for narcotics or to pay for a room where the co-conspirators could use narcotics. When confronting the victim, the co-conspirators used verbal threats, pointed real and fake guns at them, physically hit them, and intimidated them by photographing or taking identifications off of the victim. Records obtained from social media services and hotels corroborate statements by participants that only a small percentage of the victims called the police to report their robbery.
Brock and Sexson admitted that they participated in the most violent of the robberies, which occurred on Oct. 9, 2015. Co-defendant Melissa C. Cummins, 23, of Independence, Mo., posted an online ad then directed the customer who responded to an address to meet her in person. When she let him into the apartment, Brock, Sexson and other conspirators were waiting armed with firearms to rob him at gunpoint. Brock forced the victim into his own vehicle and searched it for more items to steal. Brock threatened to shoot the victim if he didn’t produce the title to the vehicle. Brock forced the victim to ride in the passenger seat while a co-conspirator drove his vehicle. Brock again threatened to shoot him if he didn’t produce the title. While driving at highway speeds on 71 Highway, the victim jumped from the moving vehicle in fear for his life and sustained injuries.
The next day, Independence police officers arrested co-defendant Devon Davis-Aumua, 23, of Independence, prowling cars in the parking lot of the Quality Inn at approximately 3:33 a.m. Davis-Aumua was in possession of methamphetamine, a stolen Springfield XDS .45-caliber pistol, and the keys to the victim’s stolen truck, which was discovered nearby out of gas.
Sexson was arrested on June 7, 2016, when the U-Haul cargo van he was driving was mistakenly identified by a woman who had loaned a similar van to an acquaintance without it being returned. She attempted to get the van to stop by pulling in front of it, then followed the van and ended up striking the van multiple times with her vehicle. She told police officers that co-defendant Ray J. Mahurin, 34, of Blue Springs, who was in the back of the van, fired multiple shots at her vehicle with a handgun.
Independence police officers located the U-Haul cargo van near Highway 291 and Truman Road. They initiated a pursuit in which the U-Haul cargo van reached speeds of over 100 miles per hour. During the pursuit, Sexson’s van ran a red light and drove in opposing lanes of traffic. During the pursuit, officers saw Sexson and Mahurin throw two long guns from the vehicle. They later recovered a loaded Marlin 30-30 lever action rifle and a camouflaged Mossberg pump action shotgun in the area of the chase. Both firearms had been reported as stolen. Officers recovered a Springfield Armory XDS-9 handgun.
The pursuit continued toward Leavenworth County, Kan. Tire deflation devices were deployed against the U-Haul van multiple times. The pursuit ended only after the U-Haul van became disabled as a result of the damage suffered during the pursuit. Sexson, Mahurin and co-defendant Nicole Covey, 35, of Sugar Creek, were arrested. During a search of the U-Haul van, officers discovered a ballistic vest, a Covert CXI crossbow, four pairs of black gloves, bandanas, assorted hand and cordless tools, a collapsible baton and multiple chainsaws.
Officers also located photos from Mahurin’s Facebook account, which shows Mahurin and Sexson inside the van on the day before the police chase, and from inside the van during the police chase.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Sexson has eight prior felony convictions. Sexson was convicted in 2004 of being a felon in possession of a firearm and sentenced to 40 months in federal prison. Sexson also has several prior state convictions, including three counts of assault, possession of a controlled substance and leaving the scene of an accident.
Brock, Harrison and Sexson are the first defendants to be sentenced in the robbery conspiracy. Mahurin, who pleaded guilty to being an unlawful user of a controlled substance in possession of a firearm, was not charged in the robbery conspiracy. Mahurin was sentenced on April 10, 2018, to three years and one month in federal prison without parole.
Cummins, Davis-Aumua and Covey are among five co-defendants have pleaded guilty and await sentencing, also including Daphne J. Fruean, 37, of Independence, and Michele R. Shatto, 34, of Kansas City, Mo.
This case is being prosecuted by Assistant U.S. Attorney Matthew P. Wolesky. It was investigated by the FBI, and the Independence, Mo., Police Department, with assistance from the Kansas City, Mo., Police Department, the North Kansas City, Mo., Police Department and the Blue Springs, Mo., Police Department.
Bank Robbers Plead GuiltyRead the Press Release
Tampa, Florida – John Lowell Goff, Jr. (46, Ruskin) today pleaded guilty to four counts of bank robbery. He faces a maximum penalty of 20 years in federal prison on each count. His co-defendant, Lemuel Tony Davis (43, Eufala, Alabama), previously pleaded guilty to one count of bank robbery. He faces a maximum penalty of 20 years in federal prison. Sentencing dates have not yet been set.
According to court documents, Goff robbed the BB&T bank located at 5331 Spring Hill Drive (Spring Hill) on August 29, 2017 and again on September 20, 2017; the Fifth Third bank located at 16509 Fishhawk Boulevard (Lithia) on September 5, 2017; and the BB&T bank located at 180 North Suncoast Boulevard (Crystal River) on September 6, 2017. During each of these robberies, Goff intimidated the bank tellers by implying that he would hurt them and threatening that he had a gun on at least one occasion. Consequently, all of the tellers gave Goff money from their banks’ cash drawers. When Goff robbed the Spring Hill BB&T bank the second time, he fled the scene in a car driven by Davis. Shortly thereafter, responding law enforcement officers pulled the car over and arrested both men.
This case was investigated by the FBI, the Hernando County Sheriff’s Office, the Hillsborough County Sheriff’s Office, and the Citrus County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Taylor G. Stout.
Amarillo Man Admits to Enticement of a MinorRead the Press Release
AMARILLO, Texas — Weston Scott Langwell, 26, of Amarillo, Texas, appeared today in federal court before U.S. District Judge Sidney A. Fitzwater and pleaded guilty to one count of attempted enticement of a minor, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
Langwell faces not less than 10 years and not more than life in federal prison, a $250,000 fine and five years to a lifetime of supervised release. He will remain in custody pending sentencing, which is scheduled for August 8, 2018.
According to the plea agreement factual resume filed in the case, on November 13, 2017, Langwell responded to a craigslist advertisement placed by Texas Department of Public Safety agents by texting the number listed. An agent posing as a sixteen year old minor female was monitoring the phone number and engaged in conversation with Langwell via text messaging. The officer sent a text to Langwell that stated she was almost 17. After Langwell learned the alleged age, he almost immediately turned the conversation to a sexual nature.
On November 14, 2017, Langwell sent a nude photograph of himself along with a sexually explicit text message. Langwell continued to communicate with the officer in a sexually explicit nature via text messages and suggested they meet up.
On November 15, 2017, Langwell and the officer agreed to meet in person. Langwell traveled to the prearranged meeting site to meet with who he believed was a 16 year old female, for sex. Agents were conducting surveillance of the prearranged meeting site and saw Langwell in the parking lot. Law enforcement moved in and arrested Langwell. Agents located condoms and a bottle of lubricant in Langwell’s possession. Additionally, a test message was sent to Langwell’s phone, and agents confirmed it was the same phone used to communicate with the UC.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Texas Department of Public Safety and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI) investigated the case. Assistant U.S. Attorney Joshua Frausto is in charge of the prosecution.
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Akron man faces at least 20 years in prison after being convicted of selling fentanyl and heroin that killed Akron womanRead the Press Release
An Akron man faces at least 20 years in prison after a jury convicted him of selling fentanyl and heroin that resulted in the death of a 23-year-old Akron woman.
Ryan Sumlin, 29, is scheduled to be sentenced Aug. 3. A jury convicted Sumlin on all three counts – distribution of fentanyl and heroin that resulted in death, one count of possession with intent to distribute fentanyl and one count of possession with intent to distribute heroin.
“This defendant put profits ahead of all else, willingly selling drugs that he knew could – and did -- kill his customers,” said U.S. Attorney Justin Herdman. “We will prosecute those who profit from this epidemic to the fullest extent of the law, while working to help those who want treatment to find it.”
Sumlin sold a mix of fentanyl and heroin to Carrie Dobbins on March 28, 2015. Sumlin mixed fentanyl – which is far more powerful – with heroin but did not tell his customers. The fentanyl he obtained originally came from China, according to court documents and trial testimony.
This case was prosecuted by Assistant U.S. Attorneys Linda Barr and Elliott Morrison. It was investigated by the Drug Enforcement Administration, the Akron Police Department and the Fairlawn Police Department.
Addis Businessman Sentenced to 42 Months in Prison for Investment Fraud SchemeRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. District Judge John W. deGravelles sentenced WILLIAM TODD CUTRER, age 52, to 42 months in federal prison for fraudulently obtaining over $500,000 from victim investors in an investment fraud scheme. The Court ordered CUTRER to pay $502,035.09 in restitution to his victims. CUTRER will be required to serve a two-year term of supervised release upon his release from prison.
CUTRER owned and operated West Baton Rouge Credit, Inc. (“WBRC”), a Port Allen lending company that made high-interest loans to individual customers. CUTRER raised capital for WBRC by obtaining lines of credit from local banks and by personally soliciting investments from individual investors. CUTRER guaranteed to his victims that he would pay interest on their investments and that their funds could be redeemed at any time upon written notice. Instead of using the funds as promised, however, CUTRER wrote checks to himself and his family members, and made payments to prior investors who were due interest on their principal. When CUTRER failed to make the payments he owed to his victim investors, he sent them a letter falsely claiming that because of the August 2016 flood, he was having difficulty collecting payments on WBRC’s high-interest loans.
In October of 2017, CUTRER pled guilty to mail fraud. During his guilty plea hearing, the defendant admitted that from in or about January of 2014 through at least November of 2016, he executed a scheme to defraud victim investors by means of materially false and fraudulent pretenses, promises, and representations. As a result of his scheme, the defendant fraudulently obtained over $500,000 from victim investors.
U.S. Attorney Brandon J. Fremin stated, “Financial crimes and investment fraud remain a high priority for this office, especially when the defendant abuses a position of trust to defraud his victims. The people of this district need to have confidence that professionals, not criminals, are properly managing their hard-earned living. We are pleased to see CUTRER’s scheme ended and CUTRER brought to justice for his lengthy fraudulent scheme. Special thanks to the FBI and the Louisiana Office of Financial Institutions for their outstanding efforts in this case.”
FBI Special-Agent-in-Charge Eric J. Rommal stated, “The FBI is committed to investigating complex financial crimes, including businessmen who steal from legitimate investors who have placed their trust in them.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Federal Bureau of Investigation, and the Louisiana Office of Financial Institutions. It is being prosecuted by Assistant United States Attorney Ryan Rezaei.
28 Year-Old Teacher Found Guilty of Transportation of A Minor with the Intent of Committing A Criminal Sexual ActRead the Press Release
SAN JUAN, P.R. – After a nine-day jury trial and four hours of deliberation, Yaira Tanies Cotto-Flores was found guilty of one count of transportation of a minor with intent to engage in criminal sexual activity, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States District Court Senior Judge Daniel R. Domínguez presided over the trial.
According to the evidence presented at trial, on March 1, 2016, the defendant transported a 14-year-old male student to a motel located in San Lorenzo, PR, with the intent to engage in sexually explicit conduct. Cotto-Flores was the victim’s English teacher. They met at the beginning of the school year and the defendant gave the victim various gifts including an acne treatment kit, a neckband and a Bulova wristwatch.
“The jury found Ms. Cotto-Flores guilty of robbing a child’s innocence,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “We entrust teachers to serve as role models for our children and safeguard their welfare. As this conviction makes clear, when that trust is violated, there will be severe consequences.”
The case was prosecuted by Assistant United States Attorney Elba Gorbea. The defendant faces a mandatory minimum sentence of ten (10) years in prison. The sentencing is scheduled for August 27, 2018 at 10:00am.
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Thursday 26 April 2018
Ypsilanti Man Sentenced in Computer Intrusion CaseRead the Press Release
An Ypsilanti resident was sentenced today to 87 months in prison for damaging a protected computer, United States Attorney Matthew Schneider announced.
Joining Schneider in the announcement was Timothy R. Slater, Special Agent in Charge, Federal Bureau of Investigation.
Receiving the sentence was Konrads Voits, age 27. The sentence was imposed by United States District Judge Robert H. Cleland who also ordered restitution in the amount of $238,517 to be paid to Washtenaw County and a 3-year term of supervised release. As part of the sentencing, Voits forfeited all interests he had in some bitcoins, and in various electronic devices, including a laptop, an integrated circuit component, and several cellular phones.
In 2017, federal, state, and local agencies including the FBI, the Washtenaw County Sheriff, and the Michigan State Police conducted a rigorous investigation into Voits’s unauthorized computer intrusion into the Washtenaw County government’s computer network.
According to court records, Voits engaged in a classic “phishing” scheme – where Voits used both email and phone calls to Washtenaw County employees – to gain full access to and control of a part of the Washtenaw County computer network. Upon gaining access, Voits took the names, addresses, emails, and passwords of many former and present Washtenaw County employees. In addition, Voits accessed the Washtenaw County Jail records, altering the electronic records of at least one inmate in an effort to get that inmate released early. Thanks to the quick response of the IT employees at Washtenaw County, and to the careful review of records by employees at the Washtenaw County Jail, nobody was actually released early. Washtenaw County spent thousands of dollars and numerous extra work hours responding to and investigating the breach, resulting in a loss of at least $235,488.
United States Attorney Schneider stated, “The federal law enforcement community encourages victims of cybercrimes to follow the lead of Washtenaw County and work with law enforcement to bring cybercriminals to justice. Judge Cleland’s 87-month sentence clearly sends the message that cybercrimes will not be tolerated in the Eastern District of Michigan.”
"The FBI is deeply committed to the aggressive pursuit of all cybercrime and in bringing to justice those who commit such acts", said Timothy R. Slater, Special Agent in Charge, Detroit FBI. "Today's sentencing of Mr. Voits is an example that cybercriminals should no longer expect the Internet to provide them a veil of anonymity towards carrying out their illegal activities. The FBI will continue to vigorously investigate these high-tech crimes through strong law enforcement partnerships.”
The FBI’s Cyber Task Force investigated this case in partnership with the Washtenaw County Sheriff’s Office and the Michigan State Police. Assistant U.S. Attorneys Patrick E. Corbett and Craig A. Weier prosecuted the case.
Worcester Business Owner Sentenced for Defrauding Snap and Selling Counterfeit MerchandiseRead the Press Release
BOSTON – The owner of Esther’s Fashion Paradise was sentenced yesterday in federal court in Worcester for defrauding the SNAP benefits program and selling counterfeit merchandise.
Esther Acquaye, 31, of Worcester, was sentenced by U.S. District Court Judge Timothy S. Hillman to eight months in prison, three years of supervised release, and ordered to pay $285,075 in restitution. In December 2017, Acquaye pleaded guilty to one count of conspiracy to acquire, possess, and redeem SNAP benefits in an unauthorized manner, and to convert public money; one count of SNAP fraud; and one count of trafficking in counterfeit goods.
On numerous occasions between November 2013 and April 2016, Acquaye, the owner of Esther’s Fashion Paradise in Worcester, accepted EBT cards from SNAP recipients wishing to exchange their SNAP benefits for cash. Specifically, Acquaye passed the EBT cards through a point-of-sale terminal causing the full value of the SNAP benefits to be electronically transferred to her business, and then provided less than the full value of the SNAP benefits in cash to the SNAP recipients. In total, Acquaye caused approximately $282,541 in fraudulent EBT transactions and SNAP benefits to be transacted at Esther’s.
In addition, on at least four occasions between November 2015 and March 2016, Acquaye accepted an EBT card from an undercover investigator as payment for counterfeit retail goods. Acquaye sold the investigator two counterfeit Michael Kors purses, one counterfeit Gucci purse, one counterfeit The North Face jacket, and one counterfeit Michael Kors wallet.
United States Attorney Andrew E. Lelling; Bethanne M. Dinkins, Special Agent in Charge of the U.S. Department of Agriculture, Office of Inspector General, Office of Investigations, Northeast Region; and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Michelle Dineen Jerrett of Lelling’s Worcester Branch Office prosecuted the case.
Waterbury Man Involved in Multi-State Robbery Spree Pleads GuiltyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ZACHARY PROVOST, 33, of Waterbury, waived his right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of armed bank robbery and admitted that he committed a series of robberies in Connecticut, Massachusetts and New Hampshire in late 2017.
According to court documents and statements made in court:
- On November 29, 2017, PROVOST entered the Mobil gas station located at 385 Watertown Avenue in Waterbury, pulled out a knife, had the cashier open the cash register, and took approximately $700 from the register.
- On November 30, 2017, PROVOST and another male entered the Cumberland Farms located at 1588 Watertown Avenue in Waterbury. After a knife was displayed and held to the cashier’s back, PROVOST and the other individual took approximately $50 from the cash register. They also stole other personal items from the cashier, and a customer’s wallet that contained approximately $150.
- On December 1, 2017, PROVOST entered the TD Bank located at 121 Main Street in Southington, presented the teller with a note stating that he had a knife, and demanded that the teller provide him with money. The teller complied and gave PROVOST $350.
- On December 1, 2017, PROVOST entered the Putnam Bank located inside of the Price Chopper at 251 Kennedy Drive in Putnam and presented the teller with a note stating that he had a knife. The teller provided PROVOST with $1,222.
- On December 3, 2017, PROVOST entered the Walgreens located at 225 Boston Turnpike in Shrewsbury, Massachusetts, demanded cash from the cashier and lifted his sweatshirt to display a knife. The cashier provided PROVOST with $545.
- On December 4, 2017, PROVOST entered the TD Bank located at 10 Gusabel Avenue in Nashua, New Hampshire, handed the teller a note, and told the teller to give him all of the money in the drawer. The teller complied and gave PROVOST $2,599.
- On December 6, 2017, PROVOST entered the Key Bank located at 232 West Main Street in Avon and gave the teller a note stating “I have a gun, hundreds, fifties and twenties and no ones and no dye pack.” PROVOST also lifted his sweatshirt to reveal what appeared to be a firearm in his waistband. The teller provided PROVOST with $1,053. PROVOST fled the area in a vehicle driven by another man.
- On December 8, 2017, PROVOST entered the Mobil Gas Station and Dunkin Donuts located at 750 Straits Turnpike in Middlebury. PROVOST first threatened the cashier at the Mobil station with what appeared to be a firearm, and instructed her to open the cash register and provide her with all of its contents. The cashier complied and provided him with $578. The cashier also complied with PROVOST’s demand that she give him cigarettes valued at approximately $131. PROVOST then went to the cashier at the Dunkin Donuts, lifted his shirt to display what appeared to be a firearm and demanded money. During the robbery, when a customer entered the premises, the PROVOST pointed the firearm at her and told her to keep her hands out of her pocketbook. The cashier gave PROVOST approximately $350. PROVOST then fled the premises in a vehicle driven by another man.
- On December 8, 2017, PROVOST entered the Thomaston Savings Bank located at 508 South Main Street in Thomaston and handed the teller a note stating “Robbery 20’s, 50’s, 100’s, quiet.” PROVOST also displayed what appeared to be a firearm. After the teller gave him money, PROVOST told her to get money from the other teller. The teller complied, and PROVOST left the bank with $1,471. He fled the area in a vehicle driven by another man.
On December 9, 2017, PROVOST was arrested by Waterbury Police officers after they responded to a call of an overdose of a woman at a motel in Waterbury. At the scene, officers recovered a silver and beige handled CO-2 powered BB gun, a black ski mask, a gray ski mask, $542 in cash, multiple packs of cigarettes. Officers also seized a red Ford Explorer that had been used during several of the robberies.
Officers were able to revive the overdose victim, who had been staying in the same room as PROVOST.
PROVOST has been detained since his arrest.
Judge Underhill scheduled sentencing for July 19, 2018, at which time PROVOST faces a maximum term of imprisonment of 25 years.
This investigation is being conducted by the Federal Bureau of Investigation and the Waterbury, Southington, Thomaston, Putnam, Avon, Middlebury, Shrewsbury (Mass.) and Nashua (N.H.) Police Departments. This case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
Washington D.C. Commercial Sex Customer Indicted for Sex Trafficking of A MinorRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – A federal grand jury has indicted Leon R. Harrison, age 56, of Washington D.C., on charges of sex trafficking of a minor, for his role as a commercial sex customer. The indictment was returned on April 25, 2018, and unsealed today. Harrison has been charged with sex trafficking of a minor, enticement of minor to engage in prostitution, and interstate travel with intent to engage in illicit sexual conduct.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Andre Watson of ICE Homeland Security Investigations (HSI); Chief Tim Altomare of the Anne Arundel County Police Department; and State’s Attorney Wes Adams of the Anne Arundel County State’s Attorney’s Office.
According to the three-count indictment, between August 9, 2016 and February 7, 2018, Harrison used his Facebook account to send messages to hundreds of other Facebook users, offering them money in exchange for sending him sexually explicit pictures, watching him masturbate, or meeting with him in person to engage in commercial sex. Several Facebook users told Harrison that they were under 18 years old, and as young as 12 years old. Harrison continued to make the requests even after they stated that they were minors.
Between October 9, 2017, and February 7, 2018, Harrison and Girl 1 allegedly exchanged hundreds of messages over Facebook. Girl 1 was a 15-year-old Maryland tenth-grade student. In the messages, Harrison repeatedly offered to pay Girl 1 in exchange for having sex with him. In twelve instances, Harrison offered her between $40 and $60 for sex.
On February 6, 2018, Girl 1’s mother discovered the Facebook messages and contacted the police. That day, an undercover police detective began operating Girl 1’s Facebook account.
On February 7, 2018, Harrison continued communicating with Girl 1’s Facebook account. Harrison stated that he would meet with Girl 1 that evening, and that he would bring money and condoms. Harrison stated he would pay Girl 1 $50 to have sex with him and made arrangements to meet with Girl 1 at a restaurant in Odenton, Maryland. Harrison agreed that he would get Girl 1 home before 1:00 a.m. because it was a “school night.”
When he arrived at the restaurant, Harrison had condoms, $50 in cash, and two 50ml bottles of flavored vodka in his pants pockets.
Harrison faces a maximum sentence of life in prison for sex trafficking of a minor and for enticement of a minor to engage in prostitution. He faces a maximum sentence of 30 years in prison for interstate travel with intent to engage in illicit sexual conduct. An initial appearance has not yet been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended HSI, the Anne Arundel County Police and the Anne Arundel State’s Attorney’s Office. Mr. Hur thanked Assistant U.S. Attorneys Zachary A. Myers and Ray D. McKenzie, who are prosecuting the case.
Vancleave Man Sentenced to 8 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
Gulfport, Miss. – Steven Paul Salmon, 56, of Vancleave, Mississippi, was sentenced today by U.S. District Judge Louis Guirola, Jr. to 97 months in federal prison, followed by five years of supervised release, for distributing methamphetamine in Biloxi, Mississippi, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze.
Salmon pled guilty on January 26, 2018, to one count of possession with intent to distribute methamphetamine. He was distributing large quantities of methamphetamine from a hotel in Biloxi. He was arrested on June 6, 2017 in possession of approximately 7 ounces of methamphetamine ICE.
The case was investigated by the Federal Bureau of Investigation’s Safe Streets Task Force and prosecuted by Assistant U.S. Attorney John Meynardie.
United States Attorney Scott W. Brady Encourages Safe Disposal of Medications during DEA’s Prescription Drug Takeback Day April 28Read the Press Release
PITTSBURGH - U.S. Attorney Scott W. Brady announced the DEA will hold the 15th National Prescription Drug Take Back Day, April 28th from 10 a.m. to 2 p.m., at hundreds of collection sites throughout the Western District of Pennsylvania.
"During National Drug Takeback Day, everyone is encouraged to turn in unused, unwanted or expired prescription drugs for safe disposal, no questions asked and at no cost to them," said U.S. Attorney Brady. "Having unused or old medicines in the house increases the risk of accidental poisoning or abuse. You help to safeguard your family’s health and safety when you properly dispose of these medications."
Western Pennsylvania residents can easily locate a nearby collection site by visiting https://takebackday.dea.gov/. The link allows for searches by zip code, county, and state.
Last October Americans turned in 456 tons (912,305 pounds) of prescription drugs at more than 5,300 collection sites operated by the DEA and more than 4,200 of its state and local law enforcement partners. Overall, in its 14 previous Take Back events, DEA and its partners have taken in over 9,015,668 pounds—more than 4,508 tons—of pills. The disposal service is free and anonymous, no questions asked. The DEA can accept pills, patches, and tightly sealed liquids. The DEA cannot accept needles or sharps.
Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.
Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
United States Attorney Murray Encourages Participation in DEA's National Prescription Drug Take Back Day on April 28, 2018Read the Press Release
CONCORD – United States Attorney Scott W. Murray encourages the public to participate in the Drug Enforcement Administration’s National Prescription Drug Take Back Day on Saturday, April 28, 2018. This biannual event will be held form 10 a.m. to 2 p.m. at thousands of collection sites around the country, including over 100 here in New Hampshire. This event is an important effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
“Everyone in New Hampshire should consider joining our efforts to combat the opioid crisis by participating in National Prescription Take Back Day,” said U.S. Attorney Murray. “Far too many individuals began their paths to addiction with the misuse of prescription drugs. One simple and effective way to protect our families is to remove any unneeded prescription drugs from our homes. Properly disposing of these drugs can prevent them from falling into the wrong hands. By taking a few minutes to remove these drugs from your home, you will be helping to improve the safety of our community.”
“Our take-back events highlight the problems related to prescription drug abuse and gives our citizens an opportunity to contribute to the solution,” said DEA Acting Special Agent in Charge Albert Angelucci. “These events are only made possible through the dedicated work and commitment of our local, county, state, and federal partners and DEA thanks every one of them for their efforts.”
Prior Drug Take Back Day events have been very successful. Last October, Americans turned in 456 tons (912,305 pounds) of prescription drugs at almost 5,500 sites operated by the DEA and more than 4,200 of its state and local law enforcement partners. Overall, in its 14 previous Take Back events, DEA and its partners have taken in over 9 million pounds—more than 4,500 tons—of pills. The disposal service is free and anonymous, no questions asked. Please note that the DEA cannot accept liquids, needles, or sharps, only pills or patches.
Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that most abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin. In fact, four out of five new heroin users started their drug use with painkillers.
Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
For more information or to locate a collection site near you, go the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov/#collection-locator where you can search by zip code, city, or state.
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United States Attorney Addresses Rising Danger of Counterfeit Prescription PillsRead the Press Release
United States Attorney Peter E. Deegan, Jr. and law enforcement partners today highlighted the danger that counterfeit prescription pills pose to the community. Opioid and prescription drug abuse is at an all-time high. 175 Americans die every day from drug overdoses. Part of this epidemic is the increase in counterfeit pill purchases. Pills being sold as oxycodone or other drugs over the Internet or from other sources have led to overdoses and deaths across the country and here in Iowa.
United States Attorney Deegan stated, “The opioid epidemic lowered American life expectancy in 2015 and 2016 for the first time in decades.” Deegan added, “Heroin and prescription opioid abuse has taken a devastating toll on our community. But we have also seen a rise in the prevalence of counterfeit prescription pills being sold on the Internet and on the street. The public must be aware that while these pills may look like prescription drugs, looks can be deceiving. These pills can be incredibly dangerous because they often contain drugs far more powerful and dangerous than the purchaser realizes.”
Counterfeit pills are incredibly dangerous because these pills often look exactly like prescription oxycodone in size, shape, color, and markings. In other words, there is no way to tell whether a pill purchased illicitly on the internet or the street is actually oxycodone or a more powerful drug. The picture below on the left is a picture of a legitimate oxycodone pill. The picture on the right is a picture of a counterfeit oxycodone pill.
Pills being sold as oxycodone may not contain oxycodone. Recently, pills that appear to be oxycodone have been found to contain fentanyl and carfentanil. Fentanyl is a synthetic drug similar to heroin, but much more potent. Carfentanil is a fentanyl analogue. Fentanyl is 100 times more potent than morphine. Carfentanil is 100 times more potent than fentanyl and 10,000 times more potent than morphine. In 2016, synthetic opioids caused more overdose deaths than heroin.
These counterfeit pills are also dangerous because users who believe that they are purchasing oxycodone will assume the pills are safe because they appear to be quality-controlled products of a heavily regulated prescription drug industry. Instead, users may be putting powerful, unknown substances into their bodies, including fentanyl and carfentanil, which have been linked to overdose deaths across the country.
Fentanyl has caused the deaths of multiple people in Iowa over the last few years. In July 2016, Max Julian Wright was sentenced to life in federal prison after being found guilty of distributing heroin and fentanyl that caused at least 6 overdoses in Cedar Rapids, including two deaths. Fentanyl has also been linked to multiple overdoses and deaths in Dubuque.
Unless prescription drugs are obtained from an authorized medical provider or pharmacy, the public should not consume or even handle these pills. The synthetic opioids contained in them are lethal if consumed, but can also cause sickness and even death simply by being absorbed through the skin. All Iowans are urged to only use prescription drugs prescribed to them by legitimate health care providers.
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U.S. Attorney’s Office Hosts Roundtable Discussion on Combatting Sexual Harassment in HousingRead the Press Release
SIOUX FALLS, SD – United States Attorney Ron Parsons announced that the U.S. Attorney’s Office for the District of South Dakota hosted a roundtable discussion regarding Sexual Harassment in Housing. Today’s event, held in conjunction with National Sexual Assault Awareness and Prevention Month, was the first of its kind in South Dakota.
The event brought together local law enforcement, legal services providers, public housing authorities, and other non-profit organizations who work with South Dakota’s vulnerable populations, specifically in the areas of housing, homelessness, and domestic violence. Participants discussed how they see such problems manifesting within the Sioux Falls area, and brainstormed ways in which local entities might collaborate to combat them.
Although always illegal and unacceptable, sexual harassment tends to be particularly underreported in the housing context.
“For landlords or property managers to try to use the power they have over tenants to extort sexual favors, or even commit assaults, is beyond reprehensible,” said U.S. Attorney Parsons. “No person should have to tolerate unwanted sexual advances in order to keep a roof over his or her head. Our office is dedicated to uncovering such violations wherever they exist and vigorously enforcing the law.”
The Department of Justice, through U.S. Attorney’s Offices and the Civil Rights Division, is charged with enforcing the Fair Housing Act. In October 2017, the Civil Rights Division announced a new initiative to combat sexual harassment in housing, and launched pilot programs in D.C. and the Western District of Virginia. On April 12, 2018, the Division rolled out a national initiative. The initiative seeks to increase efforts to protect women from harassment by landlords, property managers, maintenance workers, security guards, and other employees and representatives of rental property owners. As part of the initiative, the Department of Justice is working to identify barriers to reporting sexual harassment and collaborate with local law enforcement, legal services providers, public housing authorities, and other non-profit organizations to leverage their expertise in this area.
To aid in this effort, the Department of Justice is hosting a series of roundtable discussions around the country. Along with U.S. Attorney Parsons, the Sioux Falls discussion was facilitated by Lauren Miller Marks from the U.S. Department of Justice’s Civil Rights Division in Washington, D.C., James C. Whiteside from the U.S. Department of Housing and Urban Development in Denver, CO, and Diana Ryan, Chief of the Civil Division, and AUSA Alison Ramsdell, Civil Rights Coordinator, both from the District of South Dakota.
April 2018 is also National Fair Housing Month and marks the 50th Anniversary of the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination barred by the Fair Housing Act. Sexual harassment by landlords, property managers, maintenance workers, and others who exercise power over access to housing affects the most vulnerable populations within our communities—single parents, individuals with financial difficulties, and people who have suffered sexual violence in their past. Often, these individuals do not know where to turn for help.
Local law enforcement and community organizations can assist in this effort by identifying misconduct and recommending that individuals report sexual harassment to the Department of Justice. “Our goal is greater than just prosecution,” emphasized U.S. Attorney Parsons. “We want to put an end to this kind of abuse.”
We encourage anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178, or by emailing [email protected]. Individuals in South Dakota who believe they may have been victims of discrimination may also file a complaint with the U.S. Attorney’s Office’s Civil Rights Section.
Two-Time Indicted Green Sentenced on Drug chargesRead the Press Release
MACON: Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Adrian Green, aged 33, from Hawkinsville, GA, was sentenced on April 18, 2018 to 14 years confinement, consecutive to a previous 60-month sentence, in front of the Honorable Marc Thomas Treadwell in Macon, GA.
Mr. Green was one of thirty-two defendants indicted on September 9, 2015 as part of Operation “Makon Money.” He entered a guilty plea on January 19, 2017 to Conspiracy to Possess Marijuana with the Intent to Distribute. This charge carries a maximum statutory penalty of five years’ incarceration. Mr. Green was allowed to remain on bond pending sentencing.
On November 15, 2017, Mr. Green was charged in a separate indictment with Possession with Intent to Distribute more than 50 grams of methamphetamine. This charge resulted from a search warrant at his residence in Hawkinsville, Georgia. During the search, 493 grams of methamphetamine, 3 ounces of Marijuana, baggies and a scale were found. Mr. Green entered a guilty plea to this charge on March 6, 2018.
“Mr. Green made the decision to continuously engage in criminal activity through dealing illegal drugs,” United States Attorney Charles Peeler said. “He will remain in jail for a long time for these choices.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division commented on the case: “The successful results of this investigation should let repeat offenders like Mr. Green know that those who flood the drug market with illegal drugs will ultimately be brought to justice by DEA, its law enforcement partners and the United States Attorney’s Office.”
Investigative agencies include the Drug Enforcement Administration and the Oconee Drug Task Force. Assistant United States Attorney Charles Calhoun prosecuted the case on behalf of 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.
Two Plead Guilty in Fraud SchemeRead the Press Release
PITTSBURGH, PA – Two southwestern Pennsylvania residents pleaded guilty in federal court to charges of conspiracy and filing a false tax return, United States Attorney Scott W. Brady announced today.
Robert Richards pleaded guilty to one count of filing a false tax return, and Jennifer Morrison, 60, of Greensburg, pleaded guilty to one count of conspiracy to defraud the United States before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that Richards and Morrison conspired to defraud the United States and the Internal Revenue Service (IRS) during the period January 2006 to April 2010, by impeding the IRS in the collection of income taxes due from the operation of Richards’ used car dealerships in Greensburg, Jeannette, and McKeesport. Richards secreted his income from the IRS by placing his dealerships and more than 30 business bank accounts, through which he funneled proceeds of his business, in the names of nominee owners. One such nominee was Jennifer Morrison, who handled all of the business bookkeeping and who worked in tandem with Richards to funnel more than $1 million in gross business receipts through the nominee bank accounts. Richards and Morrison extracted funds from the business accounts to pay for personal expenditures. The tax loss to the IRS was calculated at more than $90,000.
Judge Fischer scheduled sentencing for September 14, 2018, at 9:30 a.m. for Richards, and at 11 a.m. for Morrison. The law provides for a total sentence of three years in prison, a fine of $250,000, or both, for Richards; and a total sentence of five years in prison, a fine of $250,000, or both, for Morrison. Under the Federal Sentencing Guidelines, the actual sentences imposed are based upon the seriousness of the offenses and the prior criminal history, if any, of each of the defendants.
Richards and Morrison both remain on bond pending the sentencing hearings.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Pennsylvania State Police and the Internal Revenue Service conducted the investigation that led to the prosecution of Richards and Morrison.
Two Local Men Pled Guilty Today Involving a Firearm and Drug OffenseRead the Press Release
U.S. Attorney Duane A. Evans announced that JAMIRON BARNES, a/k/a “Miron,” a/k/a “Myron,” age 22 and SEAN BRIGGS, a/k/a “Big Sean,” a/k/a “Big C,” age 33, have both pled guilty today. BARNES and BRIGGS pled guilty to one count of Possession of a Firearm in Furtherance of a Drug Trafficking in violation of Title 18, United States Code, Section 924(c)(1)(A). The defendants face a mandatory minimum of 5 years imprisonment up to life imprisonment, 5 years supervised release following any term of imprisonment, a $250,000.00 fine, and $100.00 special assessment fee.
U.S. Attorney Evans praised the work of the continued coordinated effort of the federal and state law enforcement authorities, including the United States Attorney’s Office, the Federal Bureau of Investigation’s New Orleans Gang Task Force, the New Orleans Police Department, and the Orleans Parish District Attorney’s Office. Assistant United States Attorney Elizabeth Privitera is in charge of the prosecution.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Two Alleged MS-13 Members Charged with Violent Extortion ConspiracyRead the Press Release
An indictment was unsealed Tuesday charging two alleged MS-13 members residing in Hyattsville, Maryland, with conspiracy to interfere with interstate commerce by extortion. Both defendants remain in custody following one of their detention hearings earlier today.
The indictment was announced by Acting Assistant Attorney General John P. Cronan, U.S. Attorney Robert K. Hur for the District of Maryland, Assistant Director in Charge Andrew W. Vale of the FBI Washington Field Office, Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore Field Office, Chief Mark A. Magaw of the Prince George’s County Police Department, Prince George’s County State’s Attorney Angela D. Alsobrooks, Chief Douglas Holland of the Hyattsville Police Department, Chief J. Thomas Manger of the Montgomery County Police Department, and Montgomery County State’s Attorney John McCarthy.
Jairo Arnaldo Jacome, aka “Abuelo,” 36, and Gerdandino Delgado-Escobar, aka “Pumba,” 23, are charged in the one-count indictment that alleges a conspiracy to interfere with interstate commerce by extortion beginning at least in or around March 2013 and continuing through April 2018. According to the indictment, Jacome and Delgado-Escobar are alleged to be members and associates of the Langley Park Salvatruchas (LPS) clique of MS-13. Both defendants are in custody. Jacome was ordered detained pending trial following a detention hearing today.
The indictment alleges that MS-13 is an international criminal enterprise that is active throughout the United States. In the Washington, D.C. metropolitan area, including in Prince George’s County, Maryland, MS-13 generates income from various sources, including the extortion of sums of money from persons who engage in business activities such as controlled substances sales, illegal brothels, and unlicensed “stores” where items such as food, alcoholic beverages, and cigarettes are sold, as well as legitimate businesses including food and beverage sales or distributors. The indictment further alleges that members of the gang often refer to these extortion payments as “rent.”
Jacome is alleged to have threatened business owners from whom he demanded “rent” payments. According to the indictment, in or around 2015, Jacome allegedly threatened one extortion victim with a gun, grabbed the victim by the neck and hit the victim, telling the victim that Jacome was a member of the “Mara” and that the victim was required to pay “rent” to Jacome for his business or else Jacome would send people to kill the victim’s family. The indictment further alleges that Delgado-Escobar allegedly took extortion payments on behalf of Jacome and the LPS clique.
An indictment is is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau and Daniel C. Gardner of the U.S. Attorney’s Office for the District of Maryland are prosecuting this case.
Two Alleged MS-13 Members Charged with Violent Extortion ConspiracyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On April 25, 2018, a federal grand jury indicted two alleged MS-13 members, Jairo Arnaldo Jacome, a/k/a “Abuelo,” age 36, and Gerdandino Delgado-Escobar, a/k/a “Pumba,” age 23, both of Hyattsville, Maryland, with conspiracy to interfere with interstate commerce by extortion.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Assistant Attorney General of the Criminal Division John P. Cronan; Assistant Director in Charge Andrew W. Vale of the FBI Washington Field Office; Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore; Chief Mark A. Magaw of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief Douglas Holland of the Hyattsville Police Department; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to the indictment, MS-13 is an international criminal enterprise that is active throughout the United States. In the Washington, D.C. metropolitan area, including in Prince George’s County, Maryland, MS-13 generates income from various sources, including the extortion of sums of money from persons who engage in business activities such as controlled substance sales, illegal brothels, and unlicensed “stores” where items such as food, alcoholic beverages, and cigarettes are sold, as well as legitimate businesses including food and beverage sales or distributors. Members of the gang often refer to these extortion payments as “rent.”
Beginning at least in or around March 2013 and continuing through April 2018, Jacome is alleged to have threatened business owners from whom he demanded “rent” payments. According to the indictment, in or around 2015, Jacome allegedly threatened one extortion victim with a gun, grabbed the victim by the neck and hit the victim, telling the victim that Jacome was a member of the “Mara” and that the victim was required to pay “rent” to Jacome for his business or else Jacome would send people to kill the victim’s family. The indictment further alleges that Delgado-Escobar allegedly took extortion payments on behalf of Jacome and the Langley Park Salvatuchros (“LPS”) clique of MS-13.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. Both defendants are in custody. Jacome was ordered detained pending trial following a detention hearing today.
United States Attorney Robert K. Hur commended the FBI Washington Field Office, HSI Baltimore, the Prince George’s County Police Department, the Hyattsville Police Department, and the Montgomery County Police Department for their work in the investigation. United States Attorney Robert K. Hur thanked Assistant United States Attorneys William D. Moomau and Daniel C. Gardner of the U.S. Attorney’s Office for the District of Maryland and Trial Attorney Catherine K. Dick of the Organized Crime and Gang Section, who are prosecuting this case.
Town of Monroe Justice Pleads Guilty to False Statement and Obstruction of Justice ChargesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that LURLYN A. WINCHESTER, a former Justice for the Town Court of Monroe, pled guilty today before U.S. Magistrate Judge Judith C. McCarthy, in federal court in White Plains, on charges that she made false statements in connection with an application for a loan she obtained to purchase a residence in Monroe in order to satisfy a residency requirement attached to her position as Town Justice, and obstruction of justice for providing Federal Bureau of Investigation (“FBI”) task force members, who were questioning her about her mortgage loan, with false documents, including fabricated rent payment receipts.
U.S. Attorney Geoffrey S. Berman said: “As she admitted in court today, Lurlyn Winchester, in an attempt to fraudulently satisfy a residency requirement for a judgeship, lied and provided fake documents to secure a mortgage. She then lied to FBI task force officers and provided them with fake documents in an attempt to cover up that crime. Winchester’s lack of integrity and honesty did not merit a term on the bench. Her crimes will likely earn her a term in prison.”
According to the allegations contained in the Indictment as well as statements made in public court proceedings:
On or about November 5, 2013, LURLYN A. WINCHESTER, the defendant, was elected Town of Monroe Justice. Under New York law, she was required to reside in Monroe in order to be eligible to hold that Town of Monroe Justice position. At the time, she and her husband lived in a home in New City, New York (“the New City Home”), that they purchased in 1997. In or about November 2013, WINCHESTER attempted to purchase a condominium in Monroe, New York (“Monroe Condominium-1”). On or about December 17, 2013, WINCHESTER entered into a lease agreement with a tenant (“Tenant-1”) to rent the New City Home to Tenant-1. At around that time, Tenant-1 provided WINCHESTER with a $7,500 check. On a later date, Tenant-1 also provided WINCHESTER with a $1,500 check.
In or about March 2014, the deal to purchase Monroe Condominium-1 fell through and WINCHESTER returned $7,500 to Tenant-1. In the same month, WINCHESTER entered into a contract to purchase a second condominium (“Monroe Condominium-2”), which was in the process of being built.
In or about June 2014, WINCHESTER began submitting applications for a residential loan and supporting documents to representatives of Hudson United, who, in turn, submitted these items to several lenders. WINCHESTER represented, in the applications, that the New City Home was the couple’s “present address.” She further represented in the applications that the loan was to be used to purchase Monroe Condominium-2. On the loan applications and an Affidavit of Occupancy signed by WINCHESTER, she asserted that Monroe Condominium-2 would be their primary residence.
In or about late 2014, two lenders that had received WINCHESTER’s loan application for Monroe Condominium-2 declined to approve the loan. The first did so because WINCHESTER had too much debt compared with her income. The second did so after it reviewed documents the defendant submitted, upon the lender’s request, that were supposed to show that she intended to rent out her New City Home. The documents she submitted included a phony lease agreement and copies of the $7,500 check and $1,500 check Tenant-1 had provided to her at the end of 2013 and in early 2014, at the time WINCHESTER was planning to purchase Monroe Condominium-1. The lender rejected these, noting that the dates of the checks and the lease did not make sense.
Thereafter, Hudson United submitted WINCHESTER’s loan materials to a third lender, Plaza Home Mortgage (“Plaza”). Plaza also requested information about WINCHESTER’s representation that she and her husband intended to move to Monroe Condominium-2 and rent out the New City Home. In response, on or about February 6, 2015, WINCHESTER sent Hudson United a letter in which she stated that “in regard to our intent with the current primary residence, [New City Home], please be advised that we intend on renting the premises.” She further represented that they “already have a prospective tenant who is anxiously awaiting to take occupancy of the residence.”
On or about February 27, 2015, Plaza informed Hudson United that it placed the loan in “suspend for decline status” because of insufficient income. On or about March 20, 2015, based on WINCHESTER’s representation, Hudson United informed Plaza that there would be rental income from the New City Home. As a condition for closing on the loan, Plaza requested, among other things, a copy of a fully executed 12-month lease and a canceled check for a security deposit.
In response, on or about March 27, 2015, WINCHESTER submitted to Hudson United, which then submitted to Plaza, the following items containing false statements: (1) a phony lease agreement providing that Tenant-1 was to going to pay $4,500 a month to lease the New City Home; and (2) a copy of two checks, made out to WINCHESTER, each in the amount of $4,500, dated March 23, 2015, signed by Tenant-1, and drawn on Tenant-1’s bank account. The checks each contained a false notation indicating it was for the security deposit or first month’s rent for the New City Home. Unbeknownst to Hudson United and Plaza, Tenant-1 did not intend to rent the New City Home and Tenant-1 did not provide the money to pay for a security deposit or first month’s rent. In fact, WINCHESTER provided Tenant-1 with $9,000 to cover the two $4,500 checks Tenant-1 issued to WINCHESTER.
On or about April 2, 2015, WINCHESTER and Plaza closed on the loan and Plaza funded the purchase of Monroe Condominium-2. Tenant-1 never moved to the New City Home and WINCHESTER did not move to Monroe Condominium-2.
On or about July 28, 2016, members of an FBI task force conducting an investigation interviewed WINCHESTER, at her office in New City, about the statements she made in connection with the loan she received from Plaza Home Mortgage.
Thereafter, the defendant met with Tenant-1, enlisted Tenant-1’s support in providing a false story to investigators, and had Tenant-1 initial fabricated “rent receipts” that indicated that Tenant-1 made a total of $9,000 in incremental cash payments to WINCHESTER, between May 15, 2014, and January 16, 2015, as advance rent payments for the New City Home.
On or about August 1, 2016, task force members returned to WINCHESTER’s New City office and interviewed her again. During the interview, she gave them a number of documents designed to support her false account that Tenant-1 intended to rent the New City Home but decided, after the closing on Monroe Condominium-2 on April 2, 2015, not to move in. The documents she provided to the task force members included, among other things, copies of the false and fabricated “rent receipts.”
* * *
WINCHESTER, 59, of New City, New York, pled guilty to both counts of an indictment. The first charged her with making false statements to a mortgage lending business, which carries a maximum sentence of 30 years in prison and a maximum fine of $1,000,000 or twice the gross gain or loss from the offense. The second charged her with falsifying records in a federal investigation, with the intent to impede, obstruct, or influence the investigation or proper administration of any matter within the jurisdiction of a federal department or agency, which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
WINCHESTER’s sentencing is scheduled for August 28, 2018, at 2:00 p.m.
Mr. Berman praised the outstanding investigative work of the FBI. He also thanked the Orange County Sheriff’s Office and the Orange County District Attorney’s Office for their assistance.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorney Margery B. Feinzig is in charge of the prosecution.
Three Individuals Plead Guilty After Jury Selection in Drug Trafficking TrialRead the Press Release
SAN JUAN, P.R. –Today, after selecting a jury and hearing the Government’s opening statement, defendants Hector Piedrahita-Sinisterra, José Ciro Segura-Sánchez, and Juan Nolberto González-Ramírez, entered guilty pleas in a drug trafficking case before United States District Court Judge Pedro A. Delgado. These guilty pleas finalized an investigation and prosecution by the U.S. Coast Guard and the United States Attorney’s Office for the District of Puerto Rico, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
A fourth defendant, Ángel De Jesús Castillo-Godoy had plead guilty to conspiracy to possess a controlled substance on board a vessel subject to the jurisdiction of the United States on February 12, 2018 and his sentencing hearing is scheduled for June 1, 2018. The defendants now face a minimum mandatory sentence of 10 years in a drug destruction case prosecuted under Title 46 of the Maritime Drug Law Enforcement Act (MDLEA). Defendants Hector Piedrahita-Sinisterra, Jose Ciro Segura-Sánchez and Juan Nolberto González-Ramírez entered a straight plea after the prosecution’s opening statement. All pled guilty to the four counts: conspiracy to possess a controlled substance on board a vessel subject to the jurisdiction of the United States, aiding and abetting in the possession of controlled substances, conspiracy to destroy property subject to forfeiture under the MDLEA, and aiding and abetting in the destruction of that property.
On September 12, 2016, a Maritime Patrol Aircraft on routine patrol detected a suspicious vessel approximately 200 nautical miles South of Guatemala. U.S. Coast Guard Cutter WAESCHE was diverted to intercept the vessel, and dispatched its Dolphin helicopter as well as two small boats to conduct the interdiction. Upon detection of the Coast Guard’s helicopter, the vessel attempted to flee and jettisoned a large fiberglass box over the side of the vessel. After stopping the vessel using warning shots, the helicopter’s crew witnessed the defendants cutting open small packages and dumping them into the water. They also witnessed the defendants hastily change their clothes.
The Coast Guard’s boarding team arrived shortly thereafter and witnessed the individuals dump gasoline all over the vessel, which is a technique sometimes used to attempt to cover up any trace amounts of drugs that may be found on the vessel. When Coast Guard personnel boarded the vessel they were unable to locate any narcotics or the packages jettisoned overboard; however, IONSCAN tests revealed that portions of the vessel, the subjects’ hands, and their belongings, had trace amounts of cocaine and methamphetamine. As a result, the defendants were transported to the District of Puerto Rico for prosecution.
The case was prosecuted by Assistant United States Attorney David Henek and Special Assistant U.S. Attorney from the U.S. Coast Guard, Sean R. Gajewski.
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Tennessee Physician agrees to pay nearly $200,000 to government for kickback schemeRead the Press Release
WHEELING, WEST VIRGINIA – Dr. Brenna Green, of Murfreesboro, Tennessee, has settled with the United States Government for her role in a kickback scheme that included West Virginia physicians, United States Attorney Bill Powell announced.
Green, age 41, was accused of participating in a kickback scheme with Southwest Laboratories, Medscan Laboratory, sales representatives affiliated with Southwest and Medscan and others, thereby causing false claims to be submitted to Medicare in violation of the Federal False Claims Act, the Physician Self-Referral law, and the Anti-Kickback Statute. It is alleged that Green acquired shares in Southwest for a nominal sum in exchange for a guaranteed “dividend” of approximately $5,000 per month, provided she met or exceeded the number of urine drug screen referrals required by Southwest. Green allegedly collected nearly $100,000 in said dividends.
Green has agreed to pay $199,425.56, which was paid in full this week.
“We will be ever vigilant in our task of protecting taxpayer dollars from fraudulent schemes. Thanks to the hard work of our civil staff and agency investigators, we were able to successfully conclude this matter. Our efforts will continue,” said Powell.
It is further alleged that Southwest processed urine drug screens from patients covered by private health care benefit programs, and forwarded the drug screens from patients covered by Medicare to Medscan. Medscan profited more than $300,000 from Medicare drug screens that were referred by Green.
Assistant U.S. Attorney Alan McGonigal litigated the case on behalf of the government. The Federal Bureau of Investigation and the Office of Inspector General – Department of Health and Human Services investigated.
Stuart Encourages West Virginians to Participate in DEA's National Prescription Drug Take-Back DayRead the Press Release
15th National Prescription Drug Collection Event Scheduled for Saturday, April 28th from 10:00am to 2:00pm
CHARLESTON, W.Va. – United States Attorney Mike Stuart is encouraging everyone to participate in National Prescription Drug Take-Back Day this Saturday, April 28, 2018. The event, held from 10:00am to 2:00pm , provides an opportunity for people to safely dispose of unwanted, unused or expired prescription medications. The service is free and anonymous.
“Unused prescription medication sitting in a medicine cabinet is an invitation for abuse or worse,” said United States Attorney Mike Stuart. “I urge all West Virginians to be smart and take part in Saturday’s Take-Back event to avoid a potential nightmare of abuse or accidental overdose.”
As a result of the 14 previous National Take Back events, DEA and its law enforcement partners have taken in more than 9 million pounds – more than 4,500 tons – of pills.
“DEA is committed to the citizens of West Virginia,” said DEA Assistant Special Agent in Charge David Gourley. “This program allows citizens to empty their medicine cabinets of unwanted or expired medications with no questions asked. DEA will then dispose of these medications in a safe manner.”
To find a collection site near you, go to https://takebackday.dea.gov/.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Staten Island Man Sentenced to 17 Years’ Imprisonment for Attempted Murder of A Federal OfficerRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Fareed Mumuni was sentenced to 17 years’ imprisonment by United States District Judge Margo K. Brodie. Mumuni pleaded guilty on February 9, 2017 to all counts of an indictment charging him with conspiring and attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, assaulting and conspiring to assault federal officers, and attempted murder of federal officers.
Richard P. Donoghue, United States Attorney for the Eastern District of New York; John C. Demers, Assistant Attorney General for National Security; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Heroic American law enforcement officers remain locked in a life-and-death struggle with terrorists like Fareed Mumuni,” stated United States Attorney Donoghue. “We will do everything in our power to work with the FBI, the NYPD and all our Joint Terrorism Task Force partners to incapacitate terrorists and protect the American people. I commend the FBI Special Agents and Task Force Officers for doing an outstanding job in this case.”
“The women and men of law enforcement put their lives on the line to keep us safe every day. We will not tolerate attacks on them or plots to kill Americans,” said Assistant Attorney General Demers. “I applaud the tireless efforts of the agents and prosecutors that led to the defendant’s arrest and conviction. The National Security Division remains committed to defending our country and taking action against those who would harm it.”
“Mumuni now follows a familiar path of like-minded individuals before him - to federal prison. His intent was clear, but our resolve to thwart individuals like this is even more resolute,” stated FBI Assistant Director-in-Charge Sweeney. “I would like to thank the many JTTF agents and task force personnel, surveillance teams and FBI SWAT agents who interdicted Mumuni and his associates, often at great personal risk. Thank you for keeping our city safe.”
As alleged in the indictment and in other court filings, Mumuni pledged allegiance to ISIS, and he and co-conspirator Munther Omar Saleh discussed and worked to raise money to travel to ISIS-controlled territories. Mumuni stated that if he were unable to travel to join ISIS, then he would fight in the United States.
Saleh informed ISIS attack facilitator Junaid Hussain that Saleh, Mumuni, and three other co-conspirators located in New York and New Jersey had confronted law enforcement officers who were surveilling them continuously. Saleh sought and received authorization from Junaid Hussain permitting Mumuni to conduct a suicide “martyrdom” attack by using a pressure-cooker bomb against law enforcement officers who were following the co-conspirators and thus preventing them from traveling to join ISIS.
On June 17, 2015, during the execution of a search warrant at his residence in Staten Island, Mumuni charged at an FBI agent with a kitchen knife as the agents attempted to clear the house. Mumuni stabbed the FBI agent multiple times in the torso, using sufficient force to break off the tip of the knife. The agent was saved from serious injury or death only by his magazine carrier, which deflected and chipped the point of Mumuni’s knife while Mumuni was thrusting it into the agent’s side. Fortunately, the agent sustained only minor injuries.
Saleh was sentenced on February 6, 2018 to 18 years’ imprisonment for conspiring and attempting to provide material support to ISIS, and assaulting and conspiring to assault federal officers.
The case was prosecuted by Assistant United States Attorneys Alexander A. Solomon, Douglas M. Pravda and Ian C. Richardson, of the Office’s National Security and Cybercrime Section, with assistance provided by Trial Attorneys Robert Sander and Justin Sher of the National Security Division’s Counterterrorism Section.
The Defendant:
FAREED MUMUNI
Age: 23
Staten Island, New YorkE.D.N.Y. Docket No. 15-CR-393 (MKB)
St. Louis County Man Indicted on Fraud ChargesRead the Press Release
Everett James, 60, of St. Louis County, Missouri, has been indicted on charges of Social Security fraud, making false statements and theft of government funds.
The indictment alleges that James started part-time employment with the City of Kinloch Police Department in September 2013. In November and December 2013, James worked an average of 32 hours per month. In January 2014, his hours increased to 124 hours per month. In December 2013, James began working a second part-time job as a guard with a private security company.
In December 2013, James filed an application for disability benefits claiming that he had not worked since October 16, 2013, as a result of a disabling medical condition. When interviewed by a representative of the Social Security Administration (SSA), James advised he was only working 24 hours per week for the City of Kinloch, and did not mention his work with the security company. On reports that James filed with SSA, he stated his disability affected, among other things, lifting, walking, understanding and hearing.
Social Security evaluates the amount of monthly income an individual could earn through their activities in order to determine if a person is eligible for such benefits.
An investigation conducted by SSA starting in late 2016 revealed not only the above-referenced employment, but employment with other police agencies as well.
If convicted, James faces up to 5 years imprisonment, a fine of not more than $250,000 or both per count on the false statements (counts 1 and 2) and Social Security program fraud charges (count 3). On the charge of theft of government funds (counts 4-7), he faces up to 10 years imprisonment and a fine of not more than $250,000 or both per count. Restitution to the Social Security Administration is mandatory.
This case was investigated by the Social Security Adminstration-Office of Inspector General. Tracy Berry is handling the case for the U.S. Attorney’s Office.
Spencer Man Sentenced to Federal Prison for Unlawful Possession of a Firearm by a Drug UserRead the Press Release
A former Federal Firearms Licensee who unlawfully discharged a loaded firearm while under the influence of eight different controlled substances was sentenced, April 25, 2018, to more than three years in federal prison.
Shane Zellaha, 57, from Spencer, Iowa, received the prison term after an August 30, 2017, guilty plea to one count of being an unlawful user of controlled substances in possession of a firearm.
The government presented evidence that on January 26, 2017, Zellaha discharged a loaded firearm while under the influence of methamphetamine, amphetamines, cocaine, ecstasy, marijuana, opiates, oxycodone, and benzodiazepines. Weeks later, Zellaha violated his state pretrial release by possessing an additional three firearms, ammunition, a baggie containing methamphetamine, and drug paraphernalia. After being indicted federally, Zellaha was released despite the government’s objection. He violated his pretrial release by failing to remove contraband from his residence, providing a diluted urine sample, skipping a urinalysis examination, skipping a substance abuse evaluation, and failing to abide by radio frequency monitoring. At the time of his arrest on the pretrial violations, United States Marshals Service deputies seized 2,400 rounds of ammunition from Zellaha’s possession.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Zellaha was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Zellaha was sentenced to 37 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ajay J. Alexander and investigated by the Spencer Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-4013-MWB.
Follow us on Twitter @USAO_NDIA.
South Florida Securities Broker-Dealer Charged with Conspiracy to Unlawfully Sell Unregistered SecuritiesRead the Press Release
A South Florida securities broker-dealer has been charged with participating in a conspiracy to unlawfully sell unregistered securities. This conduct was part of a scheme to sell shares of fraudulently registered companies that could then be used for pump and dump and other stock manipulation schemes.
Randy A. Hummel, First Assistant U.S. Attorney, U.S. Attorney’s Office, Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, FBI Miami Field Office, made the announcement.
Delaney Equity Group LLC, a registered broker-dealer based in Palm Beach Gardens, was charged by a criminal information with one count of conspiracy to unlawfully sell unregistered securities, in violation of Title 18, United States Code, Section 371, in Case No. 18-CR-20336. The defendant company faces a maximum statutory sentence of five years of probation and a fine up to $500,000 or double the proceeds of the offense. The case is assigned to U.S. District Judge Cecilia M. Altonaga in Miami.
According to court documents, including the charging information, from October 2009 through at least June 2013, Delaney Equity Group LLC (“Delaney Equity”), through certain employees including Ian C. Kass, participated in a conspiracy to sell shares of bogus microcap companies, knowing that the companies had been created using nominee officers and were secretly controlled by shell principals Steven Sanders, Daniel McKelvey, and Alvin S. Mirman. The shell principals would fraudulently create public companies, known as issuers, by filing documents with the SEC that falsely described the companies and their share ownership. These documents would indicate that the companies were controlled by a nominee, or straw chief executive officer (CEO). The straw CEO would be listed as the owner of the control block, or restricted shares, but in reality the companies were controlled by the principals. The principals would also create documents with the names of various shareholders for each company, to make it appear that these shares were owned by persons unaffiliated with the company. These shares would later be classified as unrestricted or “free trading.” Thereafter, the principals would sell the companies to criminal actors who would secretly obtain the control shares and the purported “free trading” shares, without disclosure to the U.S. Securities and Exchange Commission (SEC) or the investing public. This would allow the buyers to engage in stock manipulation schemes using the purported “free trading” shares.
According to the allegations in the information, Delaney Equity was a securities broker-dealer that was registered with the SEC and was a market maker for penny stocks in the over-the-counter securities markets. Acting at the direction of the shell principals, Delaney Equity sponsored nine fraudulent shell companies for electronic trading, and facilitated the sale of shares of these bogus entities to criminal actors. According to court documents, Delaney Equity utilized fraudulent paperwork to deposit shares into broker accounts in the names of the fraud principals, including Steven Sanders, Daniel McKelvey, and Alvin S. Mirman. Delaney Equity also obtained authorization from the Financial Industry Regulatory Authority (FINRA) for shares of the companies to be electronically traded. Delaney Equity also opened brokerage accounts for the shell principals and deposited shares of the bogus entities into these accounts, later selling the shares to the investing public knowing that the companies were sham entities with nominee officers. These activities, according to allegations in the information, facilitated the unlawful sale of securities that should have been classified as restricted, facilitating the securities fraud scheme.
Ten other defendants have been convicted in connection with the Shell Factory Fraud investigation: John Ahearn and Andrew Wilson, Case No. 17-20883-CR-KMW; Yelena Furman, Case No. 17-20713-CR-CMA; David Lubin, Case No. 17-20508-CR-MGC; Sheldon Rose and Ian Kass, Case No. 16-20706-CR-JEM; Steven Sanders and Alvin S. Mirman, Case No. 16-20572-CR-CMA; and, Daniel McKelvey and Jeffrey Lamson, Case No. 16-20546-CR-RNS.
A criminal information is a charging instrument containing allegations. Every defendant is presumed innocent unless and until found guilty in a court of law.
Mr. Hummel commended the investigative efforts of the FBI’s Miami Field Office. Mr. Hummel also thanked the SEC’s Miami Regional Office for their assistance. The SEC previously filed a parallel administrative enforcement proceeding related to this matter. This case is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Snapchat Photos Lead to the Arrest of A Lyndonville Man on Drug and Gun ChargesRead 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 Nolan Donald, 19, of Lyndonville, NY, was arrested and charged by criminal complaint with possession of marijuana with intent to distribute and being an unlawful user in possession of a firearm. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Seth T. Molisani, who is handling the case, stated that according to the complaint, between February 17, 2018, and April 18, 2018, the defendant posted videos and photos to the social media application "Snapchat" in which he appeared to be in possession of a pistol and large quantities of marijuana, and using what appeared to be marijuana and prescription medicine.
On April 18, 2018, Special Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives executed a federal search warrant at Donald’s North Lyndonville Road residence. Agents recovered a pistol with an obliterated serial number, which was loaded with eight rounds of ammunition, and a 12-gauge shotgun. A small quantity of suspected marijuana, suspected edible marijuana cookies, plastic baggies and ammunition for a shotgun were also recovered.
The defendant made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder and was released on conditions pending a detention hearing on April 27, 2018.
The complaint is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendants are presumed innocent until and unless proven guilty.
Seven Sentenced Following A Joint Local, State and Federal Law Enforcement Operation in Columbus, Georgia for Attempting to Have Sex with A MinorRead the Press Release
COLUMBUS: United States Attorney Charles E. Peeler announces Jonathan David Jenkins, 23, of Columbus, Georgia; Collis Dwight Eaton, 48, of Midway, Alabama; Uthemes Taylor, 30, from Columbus, Georgia; Michael Andrew Everett, 22, of Columbus, Georgia; Brian A. Corcoran, 42, from Columbus, Georgia; Robert Alan Moore, 31, from Ledonia, Alabama; and Jarrod R. Long, 27, of Columbus, Georgia were sentenced April 24, 2018 to 46 months imprisonment, followed by 10 years of supervised release, for Use of Facilities in Interstate and Foreign Commerce to Transmit Information about a Minor. The sentences were handed down by Chief United States District Court Judge Clay D. Land in Columbus.
On November 10, 2017, the Child Exploitation and Computer Crimes Unit of the Georgia Bureau of Investigation (GBI) and the Georgia Internet Crimes Against Children Task Force conducted an undercover operation centered in Columbus, Georgia which targeted online child predators who were willing to pay to have sex with a child.
The seven were indicted on November 16, 2017 and entered their pleas in January 2018 following “Operation Hidden Guardian,” a proactive, online undercover investigation centered in Columbus, Georgia, which was coordinated by the Georgia Internet Crimes Against Children Task Force (ICAC), the Georgia Bureau of Investigation’s Child Exploitation and Computer Crimes Unit, the Columbus Police Department, the Muscogee County Sheriff’s Office, the District Attorney’s Office for the Chattahoochee Judicial Circuit, and the United States Attorney’s Office for the Middle District of Georgia.
“Those sentenced today knowingly preyed on who they believed to be children,” United States Attorney Charles Peeler said. “As a citizen in the Middle District of Georgia, I am disgusted by their actions and plan to continue vigorously working with our law enforcement agencies to prosecute others who wish to do our children harm.”
“This conviction illustrates the great work of law enforcement to investigate and prosecute crimes against children,” said GBI Director Vernon Keenan. “The Georgia Bureau of Investigation is committed to working with our local, state, and federal partners to combat the epidemic of child sexual exploitation and abuse cases.”
“You never know who you are communicating with on line. That’s a warning not only for parents and their children, but also for sexual predators,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “Fortunately, these individuals’ activity on-line connected them with an undercover agent and they have become another example of how hard we work to protect our nation’s children.”
Along with those agencies who participated in the planning and coordination of the operation, twelve additional law enforcement agencies participated in “Operation Hidden Guardian” as members of the Georgia ICAC Task Force. These agencies were: Federal Bureau of Investigation – Columbus Resident Agency; the United States Secret Service; Athens-Clarke County Police Department; Floyd County Police Department; Forsyth County Sheriff’s Office; Hall County Sheriff’s Office; Georgia Information Sharing and Analysis Center (GISAC); Glynn County Police Department; LaGrange Police Department; Marietta Police Department; Polk County Police Department; and the Tallapoosa Police Department.
Assistant United States Attorneys Crawford Seals and Melvin E. Hyde, Jr. prosecuted the case for the government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Sanford Man Sentenced to Five Years for Transporting Child PornographyRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Rusty Hood, 38, of Sanford, Maine, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to five years in prison and ten years of supervised release for transporting child pornography. Hood pleaded guilty on January 29, 2018.
According to court records, in May 2016, Hood chatted online with an individual in Ohio. During the chat, the two men exchanged images of minors engaged in sexually explicit conduct. Hood claimed during the chat that he was interested in babies, and that he had engaged in sexual activity with a young girl.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Maine State Police Computer Crimes Unit and the Sanford Police Department. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
San Francisco Business Owner Sentenced in Bid-Rigging Conspiracy Involving State Government ContractsRead the Press Release
SACRAMENTO, Calif. — John Brewer, 48, of San Francisco, was sentenced today by U.S. District Judge Morrison C. England Jr. to 15 months in prison for bid rigging, U.S. Attorney McGregor W. Scott announced.
According to court documents, Brewer and his co-defendant, Brent Vinch, were the owners of, and senior executives for, a company called Expert Network Consultants (ENC), which submitted bids to the State of California for various government contracts. Brewer admitted that from 2008 through early 2012, he conspired with co-defendants Vinch and Loraine Dixon, among others, to rig the state’s competitive bidding process by creating inflated bids for submission by co-conspirators to state contracting agencies in an effort to ensure that Expert Network Consultants received the contracts. Brewer solicited bids from individuals and companies that had no intention or ability to perform the work called for in the contracts, and Brewer directed Vinch to create and submit noncompetitive bids. In total, ENC won more than 40 state contracts as a result of the bid-rigging conspiracy from multiple state agencies, including the Employment Development Department, Department of Justice, Department of Motor Vehicles, and Department of Insurance. The value of those contracts exceeded $3 million.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew M. Yelovich is prosecuting the case. The United States is grateful for the assistance of the California Attorney General’s Office in conducting the initial investigation into this matter and referring it to the U.S. Attorney’s Office.
Co-defendant Vinch pleaded guilty to bid rigging on December 14, 2017, and is awaiting sentencing. Charges are pending against Dixon. The charges against her are allegations, and she is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Salvadoran National Pleads Guilty to Illegal Use of a Social Security NumberRead the Press Release
U.S. Attorney Duane A. Evans announced that FRANCISCO MEDARDO-SANTOS, age 32, a native of El Salvador, pleaded guilty yesterday to illegal use of a Social Security number. MEDARDO-SANTOS, who is not a citizen or a lawful permanent resident of the United States, applied for employment with a local business using a false permanent resident card and another person’s Social Security card. On a federal employment eligibility verification form, MEDARDO-SANTOS falsely claimed to be this other person, falsely claimed to be a lawful permanent resident, and falsely claimed that the person’s Social Security number was his own. MEDARDO-SANTOS faces up to five years imprisonment at his sentencing, which is set for July 18, 2018, before Chief Judge Kurt D. Engelhardt.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement – Enforcement and Removal Operations in investigating this matter. Assistant United States Attorney Chandra Menon is in charge of the prosecution.
Rockford Man Arrested on Drug Trafficking and Firearm ChargesRead the Press Release
ROCKFORD — A Rockford man was arrested Tuesday by federal law enforcement officers on drug trafficking and firearm charges.
ANTWON D. TATE, 29, was indicted on April 10, 2018, by a federal grand jury in Rockford on five counts of distributing heroin in Rockford in January and February, two counts of illegally possessing a firearm (two 9mm Hi-Point rifles) as a convicted felon, and one count of possessing a firearm with an obliterated serial number.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives.
Tate was arraigned Tuesday before U.S. Magistrate Judge Iain D. Johnston and pleaded not guilty. Tate is currently in custody and scheduled to appear before Judge Johnston for a detention hearing on April 26, 2018.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of distributing heroin carries a maximum sentence of 20 years in prison. Each charge of illegally possessing a firearm as a convicted felon carries a maximum sentence of ten years in prison, and the charge of possessing a firearm with an obliterated serial number carries a maximum sentence of up to five years in prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Margaret J. Schneider.
Rochester Man Sentenced to 35 Years in Prison on Child Pornography ChargesRead 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 Brendon Allan Young, 35, of Rochester, NY, who was convicted of production, distribution and possession of child pornography, was sentenced to 35 years in prison and 20 years supervised release by Chief U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorney Kyle Rossi, who handled the case, stated that between 2012 and 2017, Young sexually abused a minor female, beginning when the child was only four or five years old. By the time the victim turned nine years old, the defendant produced child pornography depicting the victim, which he uploaded and traded via the internet. The victim’s images were ultimately found in the United Kingdom when British authorities arrested a perpetrator in that country during a child pornography sting. Using information found on the British suspect’s computer, British authorities contacted the National Center for Missing and Exploited Children in Washington, D.C., which was relayed the information to Homeland Security Investigations (HSI) in Buffalo, NY. Within days, using metadata associated with the images, HSI Agents located the victim in Rochester, NY.
At the same time, the Rochester Police Department and Monroe County Child Protective Services had begun an investigation after the victim made a disclosure of sexual abuse to a friend’s mother. HSI Agents, the Rochester Police Department, and Child Protectives engaged in a joint investigation that led to Young’s arrest by both state and federal authorities. On November 1, 2017, the defendant was sentenced to 30 years in State Court.
“This sort of depravity deserves extended captivity,” stated U.S. Attorney Kennedy. “While a long sentence such as this cannot undo the harm suffered by the victims of the defendant’s brutal conduct, it can protect other children by ensuring that the defendant cannot have future access to them.”
“This investigation is a perfect example of the international law enforcement community’s cooperation in cases involving child exploitation and victim identification, said HSI Buffalo Special Agent-in-Charge Kevin Kelly. “In addition, we coordinated with our partners at the National Center for Missing and Exploited Children to identify and bring this subject to justice and remove him as a threat to our community.”
Today’s sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Rochester Police Department, under the direction of Chief Michael Ciminelli; the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Kevin P. Lyons; Monroe County Child Protective Services, the Bivona Child Advocacy Center, and the Monroe County District Attorney’s Office, under the direction of Sandra Doorley.
Robstown Based Heroin Conspiracy DismantledRead the Press Release
CORPUS CHRISTI, Texas – The final member of a 10-defendant heroin and money laundering conspiracy has pleaded guilty, announced U.S. Attorney Ryan K. Patrick. Jesus Gutierrez, 46, of Corpus Christi, pleaded guilty today to conspiracy to possess with intent to distribute more than one kilogram of heroin and conspiracy to launder money.
The court learned today that the defendants had been part of a significant, long-term heroin distribution ring operating in Robstown. Evidence also showed that on Oct. 4, 2017, authorities seized approximately a kilogram of heroin and almost $100,000 during the arrests related to this investigation.
The evidence presented during today’s plea demonstrated that Gutierrez and his nephew, Enrique Gutierrez Jr., regularly obtained kilogram quantities of heroin during the conspiracy which was then distributed via the other defendants. The overall scope of the conspiracy was estimated to be between 10-30 kilograms of heroin. The conspiracy operated between April 2016 and October 2017, according to the evidence presented to the court.
Previously, Gutierrez Jr., 31, of Sandia, Louie Molina, 36, of Robstown, Arturo Garcia, 55, of Mathis, Michael Flores, 36, of Robstown, and Jesus Leal Jr., 34, of Robstown, pleaded guilty to conspiracy to possess with intent to distribute more than one kilogram of heroin. Gutierrez Jr. also pleaded guilty to conspiracy to launder drug money as did Renee Gutierrez, 37, of Corpus Christi. Tim Molina, 34, of Robstown, Sakhone Chanhrattana, 35, of Jarrell, and Javier Ramirez, 52, of Alice, entered their pleas to possession with intent to distribute heroin.
Sentencing for Gutierrez has been set before Judge Nelva Gonzales Ramos for Aug. 8, 2018. At that time, he faces a minimum of 10 years and up to life in prison for the conspiracy and a maximum of 20 years for the money laundering.
The Drug Enforcement Administration and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Jon Muschenheim is prosecuting the case.
Riviera Beach Resident Sentenced to over 10 Years in Prison for Operating a Fraudulent Tax Preparation Business and Using Stolen Identities to File TaxesRead the Press Release
After having been convicted at trial, Corry E. Pearson, of Riviera Beach, was sentenced yesterday to more than 10 years in prison for operating a fraudulent tax preparation business and submitting fraudulent tax returns using the stolen personal identification information of other individuals.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Pearson, 28, was sentenced by United States District Judge Beth Bloom to 124 months in prison. On October 2, 2017, a federal jury in Miami convicted Pearson of 18 criminal charges, including: conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349; wire fraud, in violation of Title 18, United States Code, Section 1343; aggravated identity theft, in violation of Title 18, United States Code, Section 1028A; money laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i); and money laundering, in violation of Title 18, United States Code, Section 1957.
Evidence presented at trial and sentencing established that, from 2011 through 2013, Pearson and his accomplices filed at least 770 fraudulent tax returns in the names of various people. The conspirators filed many of these returns using two tax preparation businesses in West Palm Beach, Florida, that they controlled, Tax King, Inc. and NPN Multiservices. In addition, the conspirators filed other returns in a manner that made it appear as if the taxpayers had filed the returns themselves, without using a tax preparation business. In some cases, the conspirators filed Federal income tax returns in the names of people who were actually victims of identity theft. The conspirators also listed stolen identities as tax preparers on fraudulent tax returns, making it appear that the fraud had been perpetrated by people who were actually victims of the identity theft. In total, the returns filed by the conspirators claimed approximately $5,173,274 in fraudulent refunds. Pearson also engaged in financial transactions with the proceeds of the fraud to disguise his control over the proceeds.
Pearson’s co-defendant, Stephane Cindy Anor, a/k/a “Stephanie Anor, 28, of West Palm Beach, previously pled guilty to one count of conspiracy to commit wire fraud and was sentenced to 36 months in prison. Anor worked as a tax preparer at Tax King.
In a related case, Irene Wilson, 52, of Riviera Beach, previously pled guilty to conspiracy to defraud the United States by a false claim and was sentenced to 3 years of probation. Wilson assisted Pearson to file a fraudulent return and to disguise Pearson’s control of those proceeds.
A restitution hearing has been scheduled for July 13, 2018.
Mr. Greenberg commended the investigative efforts of IRS-CI in this matter. This case was prosecuted by Assistant U.S. Attorneys Marc Osborne and Roger Stefin.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Reserve Man Pleads Guilty to Gun and Drug ChargesRead the Press Release
U.S. Attorney Duane A. Evans announced that DERRELL JOSEPH, age 38, of Reserve, pled guilty today to charges relating to narcotics trafficking and illegal possession of firearms.
According to court documents, JOSEPH possessed with the intent to distribute at least 100 grams of heroin. For that charge, JOSEPH faces a term of imprisonment of at least five and up to forty years, a fine of up to $5,000,000, and at least four years of supervised release following any term of imprisonment,
JOSEPH also pled guilty to possession of firearms in furtherance of a drug trafficking crime. JOSEPH possessed a Glock Model 19, 9 mm semi-automatic pistol. For the firearms charge, JOSEPH faces a minimum term of imprisonment of five years, which must run consecutive to any other sentence, and a maximum term of life imprisonment, a fine of $250,000, and up to five years of supervised release following any term of imprisonment.
Judge Lance M. Africk set sentencing for July 26, 2018.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration and the St. John the Baptist Parish Sheriff’s Office. Assistant U.S. Attorneys Nicholas D. Moses and Jeffrey K. Sandman are in charge of the prosecution.
Reno Man Sentenced to 22 Years in Prison for Posing Online as A Teenage Boy to Receive Sexually Explicit Photos from GirlsRead the Press Release
RENO, Nev. – A Reno parolee who posed online as a teenage boy and enticed about a dozen girls to send him sexually explicit photos was sentenced in federal court today to 22 years in prison, announced U.S. Attorney Dayle Elieson for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division.
Ira Gene Weirich Jr., 59, pleaded guilty on August 11, 2017, to one count of distribution of child pornography and one count of receipt of child pornography. In addition to the prison term, U.S. District Judge Miranda Du sentenced him to lifetime supervised release. He is also required to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA).
According to court documents and statements made in court, Weirich was serving a life sentence in state prison for the 1978 rape, kidnapping, and robbery of a woman. He was granted parole in February 2013. During his parole, the State of Nevada provided him an iPad to take online classes. In December of the same year, during a search, Nevada parole officers discovered Weirich was using the iPad to obtain nude and sexually explicit photos of girls. He had been posing as a teenage boy on social media and chat applications and contacting girls. He engaged in sexually explicit chats and convinced as many as 15 girls to send him nude and sexually explicit photos of themselves. He received and saved a total of 300 sexually explicit photos and videos that he later traded with others.
During an interview with law enforcement, Weirich admitted he received and distributed child pornography. He stated it was the enjoyment he felt in having control and power over the victims and “it wasn’t necessarily about the nude picture, it was about getting the nude picture.”
The case was investigated by the Northern Nevada Child Exploitation Task Force, which is comprised of members of the FBI, the Reno Police Department, the Washoe County Sheriff’s Office, and the Nevada Attorney General’s Office. Assistant U.S. Attorney Shannon M. Bryant prosecuted the case.
If you have information regarding possible child sexual exploitation, make a report to the National Center for Missing and Exploited Children (NCMEC) CyberTipline at www.cybertipline.org.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Reno Man Pleads Guilty to Creating over 8,000 Fraudulent Online Accounts with Stolen Identities to Commit $3.5 Million Fraud SchemeRead the Press Release
RENO, Nev. – A Reno man pleaded guilty in federal court today to using stolen identities to create more than 8,000 fraudulent online accounts to commit a $3.5 million fraud scheme, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Kenneth Gilbert Gibson, 47, pleaded guilty today to one count of wire fraud, one count of mail fraud, one count of filing a false tax return, and one count of aggravated identity theft. United District Court Judge Miranda Du accepted the guilty pleas. Sentencing is scheduled for July 30, 2018.
According to admissions made in connection to his plea agreement, between 2012 and 2017, Gibson developed and operated a scheme to fraudulently obtain the identities of multiple victims and used their identities to open unauthorized online accounts, credit accounts, bank accounts, and prepaid cards. He obtained the identities of multiple victims from a database in Reno. Then, he used those stolen identities to create approximately 8,000 unauthorized and fraudulent online accounts. He would use those fraudulent and unauthorized accounts to transfer, deposit, and send approximately $3.5 million to himself via hard copy checks and through electronic transactions to approximately 500 bank accounts and pre-paid debit cards owned and under his control.
In addition, he admitted to filing a false federal income tax return for the 2013 tax year. He did not include approximately $1,049,070 of taxable income he received from the fraud scheme.
At the time of sentencing, the maximum statutory penalty is 20 years in prison and a $250,000 fine for the wire fraud and mail fraud counts; the maximum statutory penalty is three years in prison and a $250,000 fine for the filing a false tax return count; and the statutory maximum penalty of two years in prison for the aggravated identity theft count. The defendant also faces a period of supervised release and a criminal forfeiture money judgment.
The case is being jointly investigated by a Task Force consisting of the FBI, United States Secret Service, the IRS, United States Postal Inspection Service, and the Reno Police Department. Assistant U.S. Attorney Carla B. Higginbotham is prosecuting the case.
You can report identity theft to the Federal Trade Commission (FTC) online at www.identitytheft.gov or by phone at 1-877-438-4338. For identity theft prevention tips and free resources visit www.ftc.gov/idtheft.
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Remarks of United States Attorney McSwain Addressing the Philadelphia Police DepartmentRead the Press Release
Remarks as prepared for delivery
Thank you very much, Deputy Commissioner Coulter, for that kind introduction. It is truly an honor to be here with all of you. And it is the honor of my lifetime to serve as your United States Attorney.
I’m going to talk to you today for a while, but before I get into the details of my speech, I have a message for you. It’s an important message, a serious message – it’s a message you need to hear. I’m going to keep it real simple. Are you listening? I want everyone in this room to look at me right now and hear this message.
I love what you do. I love what you stand for. When you put on your uniform, you are telling the world that you have dedicated your life to public service, dedicated your life to keeping our communities safe – and that you’re even willing to risk your own life to do it. I respect you, I admire you, and I thank you. Everybody in this room is a hero to me. That’s what I think, and now you know exactly where I stand.
I am blessed to be leading a U.S. Attorney’s Office that is filled with good, honorable, dedicated prosecutors who want nothing more than to serve the public and do justice. And they are very, very good at what they do. But no prosecutor has ever prosecuted any case without the help of an outstanding law enforcement partner, like our partners in the Philadelphia Police Department.
Throughout my life, I have always been interested in how others define their core values. After all, those who spend the time considering and publicly stating their values are more likely to follow through and live their lives based on those values. The Philadelphia Police Department memorializes its values in the Department motto on its official shield: “Honor, Service, Integrity.” You believe in these values so strongly that you literally wear them on your uniform sleeve every single day. The Department’s stated mission is to be the model of excellence in policing by partnering with the community to fight crime, enforcing laws while safeguarding the constitutional rights of all people, and providing quality service to all of Philadelphia’s residents and visitors. The Department also strives to recruit, train, and develop exceptional individuals within its ranks.
When I consider the Department’s values, they make me thankful, and they make me proud. I see many of my own core values mirrored in those of this Department. This should come as no surprise. After all, the missions of the U.S. Attorney’s Office and the Philadelphia Police Department are rooted in the same foundation: to serve and protect the community, and to do justice. Earlier this month, in my first few days as the U.S. Attorney, I met with all of my prosecutors to explain my core values to them. These values help us to pursue justice and serve our community in every situation, no matter the individual, location, or circumstance. My core values are these: accountability, bravery, integrity, respect, determination and excellence. These are values that are also embraced by Commissioner Ross and this Department.
And living by these values has allowed the U.S. Attorney’s Office and the Philadelphia Police Department to achieve great success in the pursuit of justice. For example, together, we continue to fight the war against the opioid epidemic. In late December, four Philadelphia men (Basil Bey, Reginald White, Tyrik Upchurch, and Amin Wadley) were convicted by a federal jury on all counts in connection with their participation in a large heroin and crack cocaine distribution ring. For over a year and a half, this group worked in shifts to sell these deadly narcotics nearly 24 hours a day, seven days a week to customers in South Philadelphia. Some of these drug deals were within 1,000 feet of a playground. Due to the dedicated efforts of this Department and other law enforcement, we were able to obtain a wiretap in the case, and law enforcement made approximately thirty-five controlled purchases of heroin and/or crack from this drug group, with all purchases being captured on video. It is this kind of extensive and dedicated police work that allowed a jury to return a verdict of guilty on all counts. Congratulations to the 1st, 3rd and 17th Police Districts – over a dozen Task Force Officers and police officers testified at trial and assisted in the investigation.
We also know that drug-trafficking is not just happening in the streets, but also in doctor’s offices across our jurisdiction. Just this month, in another joint effort with your Department, Dr. Azad Khan was sentenced to two years in prison for conspiracy to distribute controlled substances and two counts of distribution of controlled substances. Khan and his doctor co-defendants held themselves out as professional addiction treatment specialists, but instead preyed on the very people they should have been helping. They abandoned their ethics to engage in the prescription-for-pay criminal world, recklessly selling preprinted prescriptions for cash and choosing greed over their duty to heal. Dr. Khan would not have been indicted and convicted at trial without the determination and dedication of this Department. Congratulations to the Department’s Intensive Drug Investigation Squad for its undercover work during this investigation.
And we do not only pursue resolutions in the courtroom, but outside of the courtroom as well. In February, the U.S. Attorney’s Office announced that it had joined with the Philadelphia Police Department and other federal, state, and local law enforcement partners to form an Opioid Law Enforcement Task Force. The Task Force will be responsible for developing, implementing, and coordinating a robust prosecution response to this national health emergency, and the Task Force could not be successful without your partnership.
Our work together does not only involve the drug epidemic. For example, in January, a federal grand jury returned a five-count indictment, charging defendant Kenneth Lewis with wire fraud. The indictment alleges that the defendant committed wire fraud by applying for credit cards using information of several non-profit organizations and an individual, and used the cards to purchase gold coins, precious metals, and diamond earrings. In this case, your Department partnered with the U.S. Postal Service in its investigation. Kudos to detectives in the Northeast Division for helping to put this case together.
And just last month, a grand jury returned a federal indictment charging Shyniquah Lightner and Malik Hudson with sex trafficking of a minor. According to the Indictment, the defendants used force, threats of force, fraud, and coercion to make multiple women engage in commercial sex acts, with two of those females being under 18 years of age. If convicted, each defendant faces a mandatory minimum of 15 years of incarceration, up to a lifetime sentence. It was this Department’s hard work and collaboration with the U.S. Attorney’s Office and other partners on the Philadelphia Anti-Human Trafficking Task Force that made this investigation successful and furthered our collective goal to keep our children safe from exploitation. Congratulations to your Special Victims Unit – Anti Human Trafficking Task Force for its work on that case.
I could go on and on about our successful pursuits together. It is by living this Department’s values – Honor, Service, Integrity – that allows everyone in this room and on this force to pursue challenging investigations, succeed in stopping crimes, and hold the responsible parties accountable. And you have had many successes, and I know that you will continue to do so. But that does not mean that this will always be an easy road.
Indeed, it is harder today than perhaps in any time in American history to be serving in law enforcement. It has become somewhat fashionable in certain segments of the population to come out against the police and law enforcement. To his great credit, Commissioner Ross has not shied away from having an open dialogue about this criticism. Commissioner Ross has embraced this challenge, to make sure that every individual in every community knows that this Department is here for them, to serve and protect them. He has stressed building partnerships across this city, and under his leadership, this Department has made great strides.
But even with such strides, we all know that each and every one of you lives your life under a microscope. And not only are the police under scrutiny like never before, the tools of that heightened scrutiny are ever-present. Everything that you do and everything that you say can be posted on Facebook, tweeted, and made into a national news story in a matter of seconds. For those of you with family members who have previously served in law enforcement, this is one of those times where you can tell them at the Thanksgiving table that you do, in fact, have it much harder than they ever did.
You need to be aware of this constant drumbeat of attention. But I encourage you not to shy away from it. I want you to embrace it. Because when the media and the citizens of our community actually get the opportunity to look more closely, they get to see hard-working police officers who are keeping our communities safe every single day. Some agenda-driven individuals may want to highlight a more critical viewpoint for their own purposes. But I prefer to deal with the truth that can be found in statistics and facts, rather than in anti-factual ideology.
The fact is that officer-involved shootings have decreased significantly over the past few years. In 2012, there were 59 officer-involved shootings in Philadelphia. In 2017, there were 14, which is a 76% decrease from 2012 and over a 41% decrease from only the year before. I know that this is not by happenstance or good fortune, but by Commissioner Ross’s and the Department’s focus on improved training, internal accountability, and an ever-present commitment to public safety. These are not the only numbers that are down. Compared to this time last year, homicide is down by approximately 15%. This is due to many factors, including your ability to build better and lasting relationships between different Philadelphia communities and law enforcement. This Department has made foot patrols a staple of its strategy. Every new police officer walks a foot beat, and this makes a real difference in this city. It helps the community see you, and it shows our citizens that you are responsive and available for developing meaningful relationships and for having conversations with them, not just in an emergency, but in everyday life.
This Department has seen many successes under Commissioner Ross’s leadership. Not only do the statistics prove that, but so does the fact that I easily found those statistics (and many more) on the Internet, right on the website of the Philadelphia Police Department. And the free-flowing information does not end there. This Department now uses social media to connect with the world, providing testimonials by and for current and future police officers, while also trying to entice the public to learn more in order to have a greater understanding of who you are and what you do. Under the Commissioner’s leadership, this Department has embraced transparency more than ever before. There are real benefits of such openness with the community. First, this kind of transparency is one of many tools that can be used in crime prevention, and it may help spark community ideas as to how to solve some of our problems. Second, the community deserves to have access to information detailing where crime is occurring. Finally, when the community sees this hard data, our residents understand the determination and successes that you have on a daily basis, and can rest assured that their trust and faith in you is deserved.
Two and a half years ago, when Mayor Kenney first announced that Commissioner Ross would lead the Department, the Commissioner answered questions from the press. I was struck at the time, and I still am, that he stated that he wanted everyone at the table and wanted to hear everyone’s input. Commissioner Ross encouraged everyone to roll up his or her sleeves and get in there. In committing both himself and this Department to improving the quality of life in Philadelphia, Commissioner Ross hoped that everyone would “take something and make it a little better than the way you found it.”
There will always be opportunities to make things better. This Department, the U.S. Attorney’s Office, and the City of Philadelphia will continue to face challenges. Philadelphia has a population of over 1.5 million people, making it the sixth most populous city in the country. This Department is the nation’s fourth largest police department, with over 6,300 sworn members and 800 civilian personnel. And while this entire Department works tirelessly to keep crime down, none of us will ever be able to eradicate crime entirely. While homicides are down in 2018, there were more homicides in the city in 2017 than there had been in any year since 2012.
One of Philadelphia’s greatest challenges right now continues to be the struggle against gun violence. I know that this Department is battling against the gun violence epidemic every single day, in part by sending officers to the most violent parts of the city at the most violent times of day. It is your determination, your hard work, and your bravery that will continue to chip away at the violence that threatens this city.
Philadelphia needs you now more than ever. We know what happens if the officers in a police department become demoralized and let it affect their work. All we have to do is look to our neighbor to the south, the City of Baltimore, which is now described as the most dangerous city in America, with an alarmingly high rate of violence and the highest per capita murder rate in the country. We’ve come too far in Philadelphia to go backwards now. We can’t become the next Baltimore. The law-abiding citizens of this City deserve better – they deserve safe neighborhoods where they can work and play without fear. They deserve your best efforts. They are counting on you, and so am I.
I know there are many leaders within the Department here today, and I want to salute your continued stewardship of this force over all of these years. You have led this Department proudly to where it stands today. And just as importantly, we have the most recent recruits in the Police Academy. To the newest members of the Department, I want to congratulate you on your success in getting here and on your willingness to devote yourselves to public service.
If you only remember one thing that I say today, I want you to remember this: thank you. Thank you for your partnership with the U.S. Attorney’s Office in pursuing justice. Thank you for your leadership in the community and for keeping all of us safe. Thank you for the sacrifices that you and your loved ones make on a daily basis. While I have never had the honor of serving as a police officer, I did serve as a Marine prior to my legal career. I know that the hours are long, that the danger is real, and that the salary will never match what you deserve and what you could earn in the private sector. But we do not serve for the pay or the glory. We serve because there is no greater purpose in this life than to serve others.
So on your longest, hardest, most challenging days, do not give up. Remember that the U.S. Attorney’s Office stands beside you; we could not do our work without you. We see your service and we know your sacrifice. Remain determined in your pursuit of Honor, Service, and Integrity. In the words of the Apostle Paul in the New Testament: “Let us not become weary in doing good, for at the proper time we will reap a harvest if we do not give up.”
Thank you, and God Bless you all.
President of Florida-Based Financial Firm Sentenced to 10 Years in Prison for Role in $179 Million Sham Loan SchemeRead the Press Release
CHICAGO — A federal judge in Chicago today sentenced the former president of a Florida-based financial firm to ten years in prison for his role in a $179 million sham loan scheme.
TIMOTHY G. FISHER was the president and chief operating officer of First Farmers Financial LLC when the company sold 26 non-existent loans to a Milwaukee investment firm for $179 million. The company submitted documents to the Milwaukee investment firm that falsely created the appearance that the loans were issued to borrowers in Florida and Georgia and had been guaranteed, in part, by the federal government. In fact, the sham loans, which purportedly had principal amounts ranging from $2.5 to $10 million, did not exist. The Milwaukee firm, which purchased the loans as an investment vehicle for its clients, including community banks, retirement plans, municipalities, and subdivisions in Illinois and elsewhere, suffered a loss of $179 million.
First Farmers’ former chief executive officer, NIKESH A. PATEL, of Windermere, Fla., was also charged in connection with the fraud. Patel pleaded guilty to five counts of wire fraud and was sentenced last month to 25 years in prison.
U.S. District Judge Charles P. Kocoras today imposed Fisher’s ten-year sentence after a hearing in federal court in Chicago. Fisher, 41, of Pasadena, Calif., previously pleaded guilty to one count of money laundering.
The sentencings were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Jeffrey A. Monhart, Regional Director of the Chicago Regional Office of the U.S. Department of Labor, Employee Benefits Security Administration.
“The defendant’s dishonesty was not a single lapse of judgment, but rather, involved years of significant deceit,” Assistant U.S. Attorney Patrick J. King, Jr., argued in the government’s sentencing memorandum. “His scheme, born of greed, won him millions and was devastating to the investors who were unwitting victims.”
“Fraudulent transactions like these cause harm to companies, the financial industry, and the individuals whose hard-earned money is invested as a means of planning for their future,” said Director Monhart. “These crimes undermine legitimate companies and compromise the financial integrity of benefit plans.”
Fisher admitted in a plea agreement that he created fictitious financial statements that were sent to the Milwaukee company. After receiving money from the Milwaukee firm, Fisher unlawfully engaged in monetary transactions with a portion of the fraudulently obtained funds, including a wire transfer of $450,000 of scheme proceeds. Fisher caused these proceeds to be transferred from First Farmers’ account in Florida to his personal bank account in California. He then transferred these funds to a bank account belonging to a business in Nevada in connection with an investment in that business.
Patel submitted false statements to the U.S. Department of Agriculture to obtain certification in a USDA program that guarantees a percentage of loans issued to borrowers who improve the economic and environmental climate in rural communities. First Farmers, which had offices in Florida, Georgia and California, obtained USDA certification after Patel submitted the false statements about the company’s assets and officers.