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5 June 2018
Illegal alien indicted for misuse of a social security numberRead the Press Release
WHEELING, WEST VIRGINIA – A citizen of Mexico was indicted today by a federal grand jury on a fraud charge, United States Attorney Bill Powell announced.
Irineo Aroldo Matias-Gomez, age 30, is charged with one count of “Misuse of a Social Security Number.” Matias-Gomez is accused of using a social security number that isn’t his to open a bank account in Berkeley County in October 2017.
Matias-Gomez faces up to five years incarceration and a fine of up to $250,000. 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 Lara Omps-Botteicher is prosecuting the case on behalf of the government. The United States Immigration and Customs Enforcement investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Hudson County Man Sentenced to 40 Years in Prison for Production and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Bayonne, New Jersey, man was sentenced today to 480 months in prison for producing and possessing images and videos of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Gregory John Schaffer, 39, was previously found guilty on all three counts of an indictment charging him with two counts of production of child pornography and one count of possession of child pornography. He was convicted following a three-day trial before U.S. District Judge Jose L. Linares, who imposed the sentence today in Newark federal court.
According to documents filed in the case and the evidence at trial:
In 2010, Schaffer sexually abused a 12-year-old girl in a tow-truck office in Union City, New Jersey, and video recorded the abuse without her knowledge. He later stored the video recording on a laptop computer found by law enforcement in his office in Jersey City, New Jersey. Schaffer also backed-up the video recording to another electronic storage device found in his office.
Around the same time, Schaffer also sexually abused a 14-year-old girl in a hotel room and video recorded the abuse without her knowledge. Schaffer again stored the video recording on the same laptop computer and electronic storage device that law enforcement found in his office.
Law enforcement also found additional sexually explicit videos and images of minors on Schaffer’s laptop computer and electronic storage device.
In addition to the prison term, Judge Linares sentenced Schaffer to lifetime supervised release.
U.S. Attorney Carpenito credited special agents of the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), New York Field Office under the direction of Special Agent in Charge Angel M. Melendez; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge David E. Beach, New York Field Office; and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Jason S. Gould and Meredith Williams of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Thomas Ambrosio Esq., of Lyndhurst, New Jersey
Holly Springs Man Sentenced for Drug and Firearms OffensesRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, United States District Judge, Louise W. Flanagan sentenced TONY RAY HOLDER, 34, of Holly Springs, North Carolina, to 84 months imprisonment followed by 5 years of supervised release.
HOLDER was named in a three count Indictment on December 20, 2017. On March 14, 2018, HOLDER pled guilty to possession with the intent to distribute a quantity of cocaine base (crack) and possession of a firearm in furtherance of a drug trafficking crime.
On June 10, 2017, investigators with the Johnston County Sheriff’s Office conducted a traffic stop on a vehicle being driven by HOLDER’s girlfriend. HOLDER was the front seat passenger. During the traffic stop, officers recovered cocaine base, a digital scale, a loaded 9mm handgun from underneath HOLDER’s seat, a ski mask and gloves from the glove box. HOLDER had been released from state prison for a second degree murder conviction less than two months prior to this traffic stop.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The investigation of this case was conducted by the Johnston County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney Peggah Wilson handled the prosecution of this case for the government.
Henderson Man Sentenced to 78 Months in Federal Prison in Heroin Distribution and Firearms CaseRead the Press Release
NEW BERN - United States Attorney Robert J. Higdon, Jr. announced that today, QUA’MORIA RONDE’ DAVIS, 20, of Henderson was sentenced by United States District Judge Louise W. Flanagan to 78 months imprisonment followed by 3 years’ supervised release.
DAVIS was named in an eight-count Superseding Indictment on November 29, 2017. On January 16, 2018, DAVIS pled guilty to Receipt of a Firearm and Ammunition by a Person under Indictment and Possession with Intent to Distribute a Quantity of Heroin.
The investigation was conducted by the Henderson Police Department (HPD) in conjunction with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). From January of 2016 to approximately July of 2017, DAVIS was arrested multiple times for drug and firearms offenses.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
In support of PSN, the United States Attorney’s Office for the Eastern District of North Carolina has implemented the Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by the Henderson Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Vance County Sheriff’s Office. Assistant United States Attorney S. Katherine Burnette prosecuted this case.
Hagerstown Man Sentence to 16 Years for Sex Trafficking of A ChildRead the Press Release
June 5, 2018
FOR IMMEDIATE RELEASE Contact Bailey Drumm www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Richard Dane Small, a/k/a “Maserati,” age 32, of Hagerstown, to 16 years in prison, followed by 10 years of supervised release, for sex trafficking of a minor.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Sheriff Charles A. Jenkins of the Frederick County Sheriff’s Office; and J. Charles Smith, III, Frederick County State’s Attorney.
According to his plea agreement, in June 2015, Small transported a 15-year-old girl and a 17-year-old girl from Pennsylvania to Maryland with the intent that each minor victim engage in prostitution, and Small recruited each minor for that purpose. Small caused each minor victim to engage in commercial sex acts at hotels and other locations in Maryland, and received money each minor victim made. Small was aware or recklessly disregarded the fact that each minor victim had not attained the age of 18 years.
Small directed the 15-year-old victim to use an account registered by Small with a classified ad website to post ads for commercial sex, which included the number to a phone in the girl’s possession. He also directed the 15-year-old girl to answer calls from sex clients responding to these ads and to schedule appointments with them. Small also had sex with the 15-year-old victim.
On June 16, 2015, Maryland State Police (“MSP”) received a call from the 15-year-old victim’s father, who reported that the girl was being held against her will by a pimp at a hotel in Hagerstown. MSP officers responded to the hotel, and one officer approached Small and inquired about the missing girl. The officer showed Small a photo of the girl, provided her age, and informed Small that she had run away from a group home in Pennsylvania. After this encounter with MSP, Small continued to direct the girl to engage in prostitution and continued to receive the proceeds.
On June 23, 2015, Small was arrested by members of the Frederick County Sheriff’s Office while driving both victims to a hotel in Frederick, Maryland. While detained at the Frederick County Detention Center, Small had phone conversations with B.S., an adult female prostitute who worked for him. During these calls, Small instructed B.S. to have all information wiped from his cell phone. Small and B.S. also discussed B.S. traveling to Pennsylvania to pick up the 17-year-old victim and renting a hotel room for the purpose of prostituting the girl in order to raise money for Small’s benefit. With Small’s agreement, B.S. transported the 17-year-old victim to hotels in Pennsylvania and Maryland and collected proceeds from her commercial sex acts, which she used to rent hotel rooms, purchase heroin, and deposit funds into commissary accounts for Small’s benefit.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state, and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Please report suspected instances of human trafficking to HSI’s tip line at 866-DHS-2ICE (1- 866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Robert K. Hur commended the Frederick County Sheriff’s Office, HSI Frederick, the Maryland State Police, and the Frederick County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Matthew J. Maddox and Seema Mittal, who prosecuted the case.
Hacker Known as “Vigilance” Arrested and Charged for Series of Cyber-Attacks on Minnesota State Government DatabasesRead the Press Release
United States Attorney Gregory G. Brooker today announced a five-count indictment charging CAMERON THOMAS CROWLEY, a/k/a “Vigilance,” 19, with intentional access to a protected computer, intentional damage to a protected computer, and aggravated identity theft. CROWLEY made his initial appearance earlier this afternoon before United States Magistrate Judge Becky R. Thorson in Saint Paul, Minnesota. CROWLEY will remain in federal custody pending his detention hearing.
According to the indictment, between May 28, 2017 and June 17, 2017, CROWLEY intentionally gained unauthorized access to protected computer servers owned by the State of Minnesota and other entities. CROWLEY also caused the transmission of programs, code, and commands to the protected computer servers, causing damages and a loss to the State of Minnesota of more than $5,000. The indictment also charges CROWLEY with one count of aggravated identity theft.
This case is the result of an investigation conducted by the FBI and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney Katharine T. Buzicky is prosecuting the case.
Defendant Information:
CAMERON THOMAS CROWLEY, a/k/a “Vigilance,” 19
Lino Lakes, Minn.
Charges:
- Intentional access to a protected computer, 3 counts
- Intentional damage to a protected computer, 1 count
- Aggravated identity theft, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Guatemalan National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON – A Guatemalan national was sentenced yesterday in federal court in Worcester for illegally reentering the United States after deportation.
Enri Nemias Vega, 31, was sentenced by U.S. District Court Judge Timothy S. Hillman to one year in prison and two years of supervised release. Vega will be subject to deportation proceedings upon completion of his sentence. In February 2018, Vega pleaded guilty to one count of unlawful reentry of a deported alien.
Vega was previously deported in 2012. On May 20, 2017, Vega was encountered by law enforcement in Sutton and determined to be illegally present in the United States.
United States Attorney Andrew E. Lelling and Todd M. Lyons, Deputy Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement. Assistant U.S. Attorney Greg A. Friedholm of Lelling’s Worcester Branch Office prosecuted the case.
Former head of Sandusky business charged with defrauding investors out of $10 millionRead the Press Release
The leader of an international binary options scheme was arrested and a 19-count federal indictment unsealed, charging him with defrauding investors out of at least $10 million.
Jared J. Davis previously lived in the Columbus area but currently resides in Kalispell, Montana. He was indicted on multiple charges including conspiracy to commit wire fraud, conspiracy to launder money, wire fraud, money laundering and obstruction of justice.
He was arrested early Tuesday morning at Cleveland Hopkins International Airport.
According to the indictment:
Davis and others ran a fraudulent binary options investment scheme between 2012 and 2016 through Erie Marketing LLC, headquartered in Sandusky, where Davis was involved in various real estate ventures and businesses. The options business used various trade names, including OptionMint, OptionKing and OptionQueen.
A binary option is a concept in which an investor seeks a future payout based on the future price of a given security or commodity. Binary options are sometimes traded on regulated exchanges that match two investors, one who believes the price of the asset will go up and the other who believes it will go down. The option exchange makes a commission but otherwise has no interest in the outcome of a trade.
Davis’ binary options businesses were not registered with the Securities and Exchange Commission nor the Commodity Futures Trading Commission, which have regulatory oversight, including registration and licensing.
Davis, acting as a broker, did not connect investors to a legitimate binary options exchange that would match investors who chose different options outcomes. Instead, Davis took the opposing position on each trade, similar to a casino or sports book.
Thus, Davis only made money when investors lost money, providing a built-in incentive to employ manipulative and deceptive practices, including failing to disclose to victims that they were not matched with individual investors, failing to disclose to them that he could and did manipulate trading conditions, falsely telling investors their money was held in an account when Davis actually spent victim deposits as he received them, falsely portraying his employees as “brokers” or “analysts” when in fact they had no relevant experience or qualifications, falsely representing to victims they could withdraw their money at any time when Davis actually required unnecessary and burdensome documentation to closing an account, falsely representing to victims they could make “risk free,” “insured,” or “guaranteed” binary options trades if they deposited more money, and other deceptive practices.
Davis solicited victims through Internet marketing campaigns and call centers that he operated out of Sandusky, Costa Rica and St. Maarten. He enlisted foreign nationals who, under Davis’ direction, created an elaborate web of foreign corporations in the United Kingdom, Belize, Anguilla, Costa Rica, St. Vincent and the Grenadines and St. Maarten to receive and launder the victims’ deposits.
“This defendant portrayed himself as a legitimate investment broker when he was really no better than a simple con man,” said First Assistant U.S. Attorney David Sierleja. “He fleeced his victims out of $10 million by manipulating trading conditions, falsely telling investors his salespeople were financial analysts and using offshore companies to spend money as fast as it came in.”
“Crime knows no borders, and neither does the financial investigative reach of IRS-Criminal Investigation,” said IRS-Criminal Investigations Special Agent in Charge Ryan Korner. “IRS-CI will follow the money wherever it may be to ensure those who prey upon the finances of others are held accountable for their actions.”
FBI Special Agent in Charge Stephen D. Anthony said: “Davis defrauded investors out of their hard-earned money and used their money for his personal real estate interests. The FBI, along with our law enforcement partners, will continue to identify, investigate and bring financial fraudsters to justice.”
This case was investigated by the Internal Revenue Service – Criminal Investigations and Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Gene Crawford.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Teacher and Police Officer Pled Guilty to Sex Trafficking of a MinorRead the Press Release
Brunswick, GA: Tracy Wayne Crosby, 42 of Waycross, entered a guilty plea on Friday, before the Honorable Lisa Godbey Wood to one count of sex trafficking of a minor.
Evidence presented at the guilty plea revealed that up until his arrest in this case, Crosby was the criminal justice teacher at Ware County High School and a part-time police officer with Pierce County. Evidence further revealed that Crosby used his cell phone to communicate with a sixteen-year-old boy online. Crosby agreed to meet with the boy to have sex in exchange for $10.00. Camden County law enforcement immediately responded and arrested Crosby when he was with the boy. Crosby admitted to federal agents that he had sex with the boy more than once and that he arranged to have sex with the boy online.
Crosby plead guilty to Sex Trafficking of a Minor, a federal crime and now faces not less than ten years imprisonment and up to life imprisonment. If released from federal custody, Crosby will be required to register as a sex offender and will be under the Court’s supervised release for not less than five years up to life. There is no parole in the federal system. Crosby is incarcerated awaiting a sentencing hearing.
The indictment of Crosby arises out of an investigation led by Homeland Security Investigations (“HSI”) in connection with the Camden County Sheriff Office and the Ware County Sheriff’s Office.
United States Attorney Bobby L. Christine said, “Anyone who pays to have sex with children will be brought to justice and will face substantial time in federal prison. The United States continues its relentless work to protect our most precious and vulnerable citizens. We will continue to work with our law enforcement partners to rescue children and put traffickers and customers behind bars.”
“The breach of trust committed by a former teacher and law enforcement officer in this case is beyond troubling and shows that HSI will investigate and hold accountable all persons who violate our nation’s laws,” said Nick S. Annan, Special Agent in Charge of Homeland Security Investigations Atlanta. “Sparing children the unspeakable harm of sexual exploitation continues to be one of HSI’s highest priorities and we will continue to aggressively investigate leads to identity and arrest anyone seeking to harm children in violation of federal law.”
Camden County Sheriff Jim Proctor said, “It is justice well served. These individuals that prey upon the young and innocent should pay for their deeds. It is always a great privilege for the Camden County Sheriff’s Office to join forces with the Federal agencies to decrease human trafficking.”
Anyone who suspects instances of child sexual exploitation is encouraged to call 1-800-843-5678, which is operated by the National Center for Missing and Exploited Children in partnership with HSI, the FBI, and other law enforcement agencies.
Assistant United States Attorney Tania D. Groover is prosecuting the case on behalf of the United States. For additional information, please contact the United States Attorney’s Office at (912) 652-4422.
Former South Florida Resident Sentenced to 17 Years in Prison for Distributing Child PornographyRead the Press Release
On June 1, 2018, Neil Timothy Aho, 45, of Menlo Park, California, was sentenced to 17 years in prison and a lifetime of supervised release for distributing 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); Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO) and Rick Maglione, Chief, Fort Lauderdale Police Department, made the announcement.
United States District Judge Kenneth A. Marra sentenced Aho to 204 months in prison and a lifetime of supervised release. Aho must also register as a sex offender. Aho previously pled guilty to one count of distribution of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2).
According to court documents, between 2012 and 2014, while Aho was living in South Florida, he amassed a large collection of child pornography which he attempted to hide from law enforcement detection using highly sophisticated software encryption techniques. In June of 2015, after Aho had relocated to California, law enforcement was able to establish a connection to the defendant's computer and thereafter downloaded child pornography files from him. Each of the files, that was downloaded from Aho’s computer, contained videos of minor children engaging in sexually explicit conduct with adult males. In 2015, the defendant was arrested in relation to this investigation. The investigation revealed that Aho possessed over 3,000 videos and 6,000 images depicting child pornography, including children under the age of 6 engaged in sexually explicit conduct with adults.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Greenberg commended the investigatory efforts of the ICE-HSI, BSO and Fort Lauderdale Police Department in this matter. This case was prosecuted by Assistant United States Attorneys Corey Steinberg and Gregory Schiller.
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.
Former President and CEO of Coastal Bank & Trust Sentenced for Bank Fraud Conspiracy and ObstructionRead the Press Release
NEW BERN –The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, United States District Judge Louise W. Flanagan sentenced ROBERT LEVIE NORRIS, JR., age 50, of New Bern, North Carolina to 48 months in prison for conspiracy to commit bank fraud and obstruction of a federal bank examination. The Court ordered the term of imprisonment to be followed by 3 years of supervised release. NORRIS was also ordered to pay $2,397,475 in restitution.
NORRIS was named in a Criminal Information on April 18, 2017 alleging the above offenses. NORRIS pled guilty to the charges on May 17, 2017.
According to court records, statements made in court, and other public information, NORRIS was the first President and Chief Executive Officer of Coastal Bank and Trust (CB&T), which opened its doors to customers in 2009. NORRIS served in this capacity from April 2009 to June 2013. As CB&T’s highest ranking executive, NORRIS was entrusted to oversee all aspects of CB&T’s business and to ensure that CB&T operated in accordance with applicable federal and state laws, rules, and regulations. In June 2013, it was discovered that NORRIS had engaged in a scheme to defraud CB&T by engineering fraudulent loan transactions with straw borrowers where the true beneficiaries of the loans were co-conspirators of NORRIS, business entities controlled by NORRIS, or NORRIS himself. The offending loans included unsecured lines of credit, small business loans, and mortgages for commercial and residential properties. NORRIS used his position of trust and authority at CB&T to circumvent the bank’s internal controls and normal loan underwriting procedures. To conceal his scheme, NORRIS withheld relevant information about the fraudulent loans from CB&T’s board of directors and examiners from the Board of Governors of the Federal Reserve System. CB&T suffered losses of approximately $2.4 million as a result of NORRIS’ conduct.
“When a bank official uses their position for their own personal profit they do more than commit a federal crime, they abuse their power and violate the public’s trust. Mr. Norris’ sentence today is proof of the commitment of the FBI to work with other law enforcement agencies to find these offenders and hold them accountable,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
United States Attorney Robert J. Higdon, Jr. said, “Mr. Norris used his position of trust to unlawfully line his pockets with money to which he was not entitled. The USAO-EDNC will always work with federal, state, and local law enforcement to vigorously investigate and prosecute this type of criminal conduct. Mr. Norris’ sentence sends a strong message that this type of conduct will not be tolerated and will be punished accordingly.”
“Mr. Norris’ fraud scheme and deception of bank examiners is the type of criminal conduct that impedes federal regulators from effectively supervising banking institutions,” said Mark Bialek, Inspector General of the Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection. “Today’s sentencing is one more step in a joint effort with our federal partners to hold accountable those who undermine the integrity of those institutions.”
“This sentencing holds the defendant accountable for misusing his position as the bank President and CEO to fabricate fraudulent loans with straw borrowers, evade internal controls, and withhold information from the bank’s Board. The underlying conspiracy cost the bank millions of dollars. This case demonstrates the importance of cooperation among law enforcement partners to combat such criminal conduct and maintain the integrity of financial institutions,” said FDIC Inspector General Jay N. Lerner.
Investigation of this case was conducted by the Federal Bureau of Investigation, the Board of Governors of the Federal Reserve System - Office of Inspector General, and the Federal Deposit Insurance Corporation - Office of Inspector General. Assistant United States Attorney Adam Hulbig prosecuted the case for the government.
Former Merrillville Town Councilman Sentenced to 15 Months in Prison for BriberyRead the Press Release
HAMMOND –Thomas Goralczyk, age 51, of Merrillville, Indiana was sentenced before U.S. District Court Judge Joseph S. Van Bokkelen on his plea of guilty to a federal bribery charge, announced U.S. Attorney Kirsch.
Goralczyk was sentenced to 15 months in prison with the court acknowledging that he had already forfeited $7500 to the United States.
“Public corruption will not be tolerated at any level,” said U.S. Attorney Kirsch. “Public officials, like Mr. Goralczyk, elected and entrusted to do the public’s work, are required to do that work free from self-dealing and graft. Today’s sentence sends a strong message of deterrence to others that want to engage in these activities. My office, together with our law enforcement partners, will continue to pursue matters involving corrupt public officials. I encourage anyone with information concerning corrupt public officials to contact my office or the FBI.”
According to documents in this case, from February 2013 to February 2014 Goralczyk, while a Merrillville Town Councilman, did knowingly and corruptly solicit, demand, accept and agree to accept bribes from Individual A in exchange for a towing contract between the Town of Merrillville and Individual A’s company. Goralczyk accepted the following: a 2000 Jeep Grand Cherokee, a 2008 Ford Focus, 4 camper tires and free storage for his personal motorcycle, from Individual A, intending to be influenced and rewarded in connection with a transactions or series of transactions of the Town of Merrillville.
Goralczyk was first elected as a Merrillville Town Councilman in 2007 and took office in January 2008. He was re-elected in 2011 and began his 2nd term as 4th ward councilman in January of 2012. He served as President of the Town Council in 2011 and 2015. Goralczyk also held various other positions on the Merrillville Redevelopment Commission, Lake County Solid Waste Management Board and the governing board of NIRPC (Northwest Indiana Regional Planning Commission). Goralczyk admitted that he accepted bribe payments from a Federal Bureau of Investigation “cooperating individual” in the form of two vehicles. He obtained a Jeep Grand Cherokee for $400 when he knew the value was in excess of $2500. In an attempt to cover up the bribe, he presented a false bill of sale to the Indiana Bureau of Motor Vehicles representing that he paid $1000 for the vehicle. In addition, Goralczyk accepted a 2008 Ford Focus with a value in excess of $5000. He paid nothing for this vehicle, but presented a false bill of sale to the Indiana Bureau of Motor Vehicles indicating that he paid $2750 for the vehicle. Goralczyk acknowledged that he accepted both the vehicles for his own personal gain, in exchange for his promise to engage in official conduct by using his influence and power as a Merrillville Town Councilman to obtain a Town of Merrillville towing contract for the FBI “cooperating individual’s” towing company.
This case results from an investigation by Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation Division. This case is being handled by Assistant United States Attorney Philip C. Benson.
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Former Medical Assistant Pleads Guilty to Oxycodone ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Maryland woman pleaded guilty today for her role in leading a conspiracy to distribute oxycodone.
According to court documents, Louise S. Edwards, 38, was previously employed as a medical assistant at doctor’s offices in Arlington and Alexandria. From 2011 through December 2017, Edwards stole blank prescription pads and electronically-generated fraudulent prescriptions using a medical recordkeeping system to which she had access by virtue of her position as an employee. Edwards had others write or fill the fraudulent prescriptions and return the full bottles to her. Edwards then sold the full bottles for further distribution. During the conspiracy, Edwards facilitated the fraudulent filling of at least 353 prescriptions, totaling 42,360 pills of 30 milligram oxycodone.
Edwards pleaded guilty to conspiracy to distribute oxycodone, and faces a maximum penalty of 20 years in prison when sentenced on September 7. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea. Special Assistant U.S. Attorney Matthew A. Anzaldi and Assistant U.S. Attorney Alexander E. Blanchard are prosecuting the case, and former Special Assistant U.S. Attorney Matthew Evans provided assistance investigating the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-155.
Former Fugitive Gang Member Sentenced to 20 Years in Federal Prison for Racially-Motivated MurderRead the Press Release
An Avenues gang member who was captured last year after more than a decade on the run was sentenced Monday to 20 years in prison on federal hate crime and firearms charges that were filed against him in 2004, announced Acting Assistant Attorney General John Gore of the Civil Rights Division, United States Attorney Nicola T. Hanna of the Central District of California, and FBI Special Agent in Charge Paul D. Delacourt for the Los Angeles Field Office.
Merced Cambero Jr., 39, who used the gang moniker “Shadow,” pleaded guilty in February to participating, along with other gang members, in a conspiracy to use violence against African-Americans to interfere with their right to live in the Highland Park neighborhood of Los Angeles. Cambero also admitted to participating in the 1999 racially-motivated murder of Kenneth Wilson, an African-American man who was shot and killed in furtherance of that conspiracy. The defendant was sentenced by United States District Judge Percy Anderson, who in 2006 presided over the trial of four co-defendants who were charged along with Cambero in the initial 2004 indictment and a superseding indictment that followed in 2005.
The superseding indictment alleged that Cambero and three of the four co-defendants – Gilbert “Lucky” Saldana, Alejandro “Bird” Martinez, and Fernando “Sneaky” Cazares – shot and killed Mr. Wilson because of his race and because he was using the public streets in Los Angeles, and that they used firearms during and in furtherance of that crime. These defendants were also charged, along with a fourth co-defendant, Porfirio “Dreamer” Avila, with conspiring to use violence to interfere with the federal housing rights of African Americans in Highland Park, including another African-American man, Christopher Bowser, who was shot and killed in 2000. Saldana, Martinez, Cazares, and Avila stood trial in 2006, were convicted on all charges, and were sentenced to life in prison. Although Cambero was charged in the same indictment, he was never arrested or arraigned until he was captured in Mexico last year. He was then returned to the United States to face the charges against him.
At the 2006 trial of the co-defendants, a jury heard testimony from two Avenues gang members who participated in the murder of Kenneth Wilson and implicated Cambero and three co-defendants. The gang-member witnesses also testified about an agreement among Avenues gang members to try to preserve the primarily-Latino make-up of Highland Park by engaging in violence against African Americans. Their testimony was corroborated by numerous African-American residents of the Highland Park neighborhood who described acts of racially-motivated violence directed at them by the defendants and their fellow gang members.
In court filings connected with Cambero’s guilty plea and sentencing, Cambero confirmed the evidence from the earlier trial, admitted that he and his fellow gang members were in a stolen van when they saw Wilson, whom they did not know, and decided to kill him because of his race. Cambero admitted that he and two other gang members then got out of the van and fired guns at Wilson, who was killed by a single gunshot through the neck.
“This Justice Department will not tolerate any act of violence motivated because of another’s race,” said Acting Assistant Attorney General John Gore. “The defendant’s egregious actions were unlawful, and as this sentencing demonstrates, will not go without punishment. The Civil Rights Division will continue to vigorously prosecute those who commit violent acts of hate.”
“This defendant was part of a reprehensible scheme that targeted an entire class of people simply because of skin color,” said U.S. Attorney Nick Hanna. “The Justice Department is committed to preserving and protecting everyone’s civil rights – particularly when violent acts are used to violate those rights. Mr. Cambero attempted to avoid prosecution for many years, but we persisted to bring him to justice and send a message to the entire community that this type of conduct will not be tolerated and will be punished.”
After hearing from the mothers of two African-American men killed by the gang, Judge Anderson on Monday accepted the guilty plea and sentenced Cambero to 20 years in prison. Among the considerations Judge Anderson cited as influencing his sentence were the defendant’s acceptance of responsibility and the desire of the victims and witnesses to be spared the trauma of another trial.
This case was investigated by the FBI’s Los Angeles Field Office and was prosecuted by Deputy Chief Bobbi Bernstein of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorneys Jennifer Chou and Daniel O’Brien of the Central District of California.
Former Fugitive Gang Member Sentenced to 20 Years in Federal Prison for Racially Motivated MurderRead the Press Release
LOS ANGELES – An Avenues gang member who was captured last year after more than a decade on the run was sentenced Monday to 20 years in prison on federal hate crime and firearms charges that were filed against him in 2004.
Merced Cambero Jr., 39, who used the gang moniker “Shadow,” pleaded guilty in February to participating, along with other gang members, in a conspiracy to use violence against African Americans to interfere with their right to live in Highland Park. Cambero also admitted that he participated in the 1999 racially motivated murder of Kenneth Wilson, an African-American man who was shot and killed in furtherance of that conspiracy.
Cambero was sentenced by United States District Judge Percy Anderson, who in 2006 presided over the trial of four co-defendants who were convicted by a federal jury. Cambero and three of the four co-defendants – Gilbert “Lucky” Saldana, Alejandro “Bird” Martinez and Fernando “Sneaky” Cazares – shot and killed Mr. Wilson because of his race and because he was using the public streets in Los Angeles. These defendants were also found guilty – along with a fourth co-defendant, Porfirio “Dreamer” Avila – of conspiring to use violence to interfere with the federal housing rights of African Americans in Highland Park, including another African-American man, Christopher Bowser, who was shot and killed in 2000. Saldana, Martinez, Cazares and Avila each were sentenced to life in prison. Although Cambero was charged in the same indictment, he was not arraigned in the case until after he was captured in Mexico last year.
At the 2006 trial of the four co-defendants, the jury heard testimony from two Avenues gang members who participated in the murder of Kenneth Wilson and implicated Cambero and three co-defendants. The gang members also testified about an agreement among Avenues gang members to try to preserve the primarily Latino make-up of Highland Park by engaging in violence against African Americans. Their testimony was corroborated by numerous African-American residents of the Highland Park neighborhood who described acts of racially motivated violence directed at them by the defendants and their fellow gang members.
In court filings connected with Cambero’s guilty plea and sentencing, Cambero admitted that he and his fellow gang members were in a stolen van when they saw Wilson, whom they did not know, and decided to kill him because of his race. Cambero admitted that he and two other gang members then got out of the van and fired guns at Wilson, who was killed by a single gunshot through the neck.
“This defendant was part of a reprehensible scheme that targeted an entire class of people simply because of skin color,” said United States Attorney Nick Hanna. “The Justice Department is committed to preserving and protecting everyone’s civil rights – particularly when violent acts are used to violate those rights. Mr. Cambero attempted to avoid prosecution for many years, but we persisted to bring him to justice and send a message to the entire community that this type of conduct will not be tolerated and will be punished.”
“This Justice Department will not tolerate any act of violence motivated because of another’s race,” said Acting Assistant Attorney General John Gore. “The defendant’s egregious actions were unlawful, and as this sentencing demonstrates, will not go without punishment. The Civil Rights Division will continue to vigorously prosecute those who commit violent acts of hate.”
After hearing from the mothers of two African-American men killed by the gang during Monday’s sentencing hearing, Judge Anderson accepted the guilty plea and sentenced Cambero to 20 years in prison. Among the considerations Judge Anderson cited as influencing his sentence were the defendant’s acceptance of responsibility and the desire of the victims and witnesses to be spared the trauma of another trial.
This case was investigated by the FBI’s Los Angeles Field Office and the Los Angeles Police Department.
The case was prosecuted by Deputy Chief Bobbi Bernstein of the Civil Rights Division’s Criminal Section, Assistant United States Attorney Jennifer Chou of the Violent and Organized Crime Section, and Assistant United States Attorney Daniel O’Brien of the Public Corruption and Civil Rights Section.
Floridian Charged in Complex Fraud Scheme Related to the Processing of Credit Card PaymentsRead the Press Release
PITTSBURGH, Pa. – A resident of Boca Raton, Florida, has been indicted by a federal grand jury in Pittsburgh on a charge of conspiracy to commit mail, wire and bank fraud, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on May 1, 2018, named Gennady Nudelman, 42, as the sole defendant. Nudelman was arrested today and the indictment unsealed.
According to the indictment, Nudelman was involved in a complex conspiracy related to the fraudulent processing of credit card payments. The credit card companies will not allow their products and services to be used to pay for certain precluded activities, including the on-line sales of pharmaceutical drugs and of products violating trademark infringement laws. The defendant participated in the conspiracy designed to conceal from the credit card companies the fact they used their products and services to pay for precluded activities and to subvert the internal controls the credit card companies had in place to detect and prevent this type of activity. The fraud involved establishing shell corporations and web sites associated with the shell companies that falsely claimed that they sold products other than pharmaceutical drugs or products that violated trademark infringement laws. The conspirators then applied for merchant accounts from the credit card companies in the names of the shell corporations and the fake web sites. Once the merchant accounts were established, they were used to process payments for pharmaceutical drugs or products that violated trademark infringement laws. Additionally, the conspirators arranged for the credit card statements sent to the consumers to have the names of the shell corporations and telephone numbers. The conspirators set up a telephone bank to receive calls from customers questioning billings on their credit card statements, and the conspirators explained to the customers the true nature of the transactions in hopes of avoiding charge-backs that could cause the credit card companies to question the legitimacy of the transactions.
The law provides for a maximum total sentence of not more than 30 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Food and Drug Administration – Office of Criminal Investigations, Homeland Security Investigations, Pennsylvania State Police and United States Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Five People Indicted for Compromising Target’s Gift Card System and Defrauding Victims Out of Nearly $800,000Read the Press Release
Five members of a fraud ring charged with compromising the internal gift card system of major national retailer, Target Corporation, and defrauding the retailer and its legitimate customers of almost $800,000 have been indicted on wire fraud charges by a federal grand jury in Seattle, announced U.S. Attorney Annette L. Hayes. JEFFERY DOUGLAS MANN, 29, of Marysville, Washington, and JOSHUA NEWMAN, 33, of Kirkland, Washington will appear in U.S. District Court in Seattle at 2:00 today.
A third defendant, COREY MOSEY, 30, of Lynnwood, Washington is in Washington state custody on unrelated charges. The two remaining defendants KENNADY WESTON, 22, and DERRICK QUINTANA, 26, both of Everett, Washington, are being sought by law enforcement.
According to the indictment unsealed today, between May 2017 and December 2017, the ring allegedly stole gift card balances worth more than $785,000, and often sold illegally purchased goods or store gift cards for bitcoin on an internet marketplace. The co-conspirators allegedly used a special algorithm to reverse-engineer and identify unique bar code numbers of thousands of authentic gift cards sold by Target to legitimate customers. Members of the scheme then used the retailer’s automated customer service telephone system to verify balances linked to the various stolen gift card numbers. They then loaded active gift card numbers onto a mobile or electronic wallet app on their phones, which the co-conspirators used to purchase merchandise and legitimate gift cards at various Target store locations across at least five states: Washington, Oregon, California, Nevada and Colorado. For example, on one occasion in November 2017, JEFFERY DOUGLAS MANN, KENNADY WESTON, DERRICK QUINTANA, and others used roughly 180 compromised gift card numbers to make $6,900 in purchases at the Southcenter Mall Target store in Tukwila, Washington.
When the actual cardholders later tried to use their gift cards, they discovered that they had zero balance. In December 2017, Target modified its gift card system in response to the fraud, putting an end to the scheme.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Wire fraud is punishable by up to 20 years in prison.
The case is being investigated by the U.S. Secret Service, with assistance from the Kirkland, Lynnwood, and West Linn (OR) Police Departments, and is being prosecuted by Assistant United States Attorney Steven Masada and Special Assistant United States Attorney Benjamin Diggs. Mr. Diggs is an attorney with the Social Security Administration specially designated to prosecute fraud cases in federal court.
Federal Inmate Sentenced for Possessing a Weapon in PrisonRead the Press Release
Jackson, Miss. – Joseph Shaw, 35, was sentenced yesterday by United States District Judge Henry T. Wingate for possession of a weapon within a federal prison, announced U.S. Attorney Mike Hurst.
In 2004, Shaw was sentenced to a term of 295 months by the United States District Court for the Middle District of Florida after being convicted of carjacking with intent to cause death or serious bodily harm and using a firearm in relation to a crime of violence. He was assigned to serve his sentence at the United States Penitentiary in Yazoo City, Mississippi.
On June 21, 2017, during a routine search, federal correctional officers found Shaw in possession of a 5.5 inch shank that had been made by sharpening a piece of plastic. Shaw pleaded guilty on January 25, 2018. Today, Shaw was sentenced to serve 26 months in federal prison, to be followed by a three-year term of supervised release. Shaw will serve this new sentence after he completes his earlier sentence.
The case was investigated by the Federal Bureau of Prisons, Special Investigative Section. It is being prosecuted by Special Assistant United States Attorney Woelke Leithart.
Eleven New Orleans and Houston Men Charged with Heroin Conspiracy and Firearms OffensesRead the Press Release
U.S. Attorney Duane A. Evans announced that JUAN CARLOS MOSQUERA-AMARI, age 46, of New Orleans, ALEXANDER MURIEL-DIAZ, age 52, of Houston, Texas, LUIS RAMOS GRAVEDEPERALTA, age 60, of Kenner, CARLOS ALBERTO GONZALEZ VALENCIA, age 36, of Houston, Texas, STEVEN DUNCAN, age 45, of Metairie, JOSE ANTONIO VALVERDE-CHACON, age 37, of Houston, Texas, JOHN JONES, age 43, of New Orleans, HARVEY VICTORIA-CUELLAR, age 38, of Houston, Texas, RODNEY ROBINSON, age 60, of New Orleans, JAVIER CONTRERAS-CASTILLO, age 26, of Houston, and GERARD HARRISON, age 30, of New Orleans were charged in a four-count second superseding indictment with conspiracy to distribute heroin, in violation of Title 21 United States Code, Sections 841(a)(1), 841(b)(1)(A), and 846. ROBINSON was charged with one count of distribution of heroin. JONES was also charged with being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1). HARRISON was also charged with possession of a firearm during and in relation to a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i).
According to the second superseding indictment, the defendants conspired with each other and others between July 19, 2017 and June 1, 2018, to distribute and to possess with the intent to distribute more than one kilogram of heroin.
In addition, according to the second superseding indictment, on April 5, 2018, JONES possessed three firearms, a Glock Model 27, .40-caliber semiautomatic firearm, a Ruger Model P89, 9mm firearm, and a Ruger Model SR22, .22 caliber firearm. JONES had previously been convicted in the United States District Court for the Eastern District of Louisiana of a felony offense.
Furthermore, the second superseding indictment charges that HARRISON possessed an Anderson Manufacturing Model AM-15 rifle and a Glock Model 22, .40-caliber firearm in furtherance of the drug conspiracy.
If convicted of the drug conspiracy, the defendants face a mandatory minimum of 10 years imprisonment, a maximum term of imprisonment of life, a fine of up to $10,000,000, at least 5 years of supervised release after imprisonment, and a mandatory $100 special assessment.
If convicted of distribution of heroin, ROBINSON faces a maximum penalty of 20 years imprisonment, a fine of up to $1,000,000, at least 3 years of supervised release after imprisonment, and a mandatory $100 special assessment.
If convicted of being a felon in possession of a firearm, JONES faces a maximum penalty of 10 years imprisonment, a fine of up to $250,000, up to three years of supervised release after imprisonment, and a mandatory $100 special assessment.
If convicted of possessing a firearm in furtherance of a drug trafficking crime, HARRISON faces a mandatory minimum of five years imprisonment and a maximum term of imprisonment of life, a fine of up to $250,000, up to five years of supervised release after imprisonment, and a mandatory $100 special assessment.
U. S. Attorney Evans reiterated that a second superseding indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the Drug Enforcement Administration in investigating this matter. Assistant United States Attorneys Jonathan L. Shih and Maria M. Carboni are in charge of the prosecution.
Dominican National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national pleaded guilty yesterday in federal court in Boston to illegally reentering the United States.
Orlando Genoa-Maldonado, 56, pleaded guilty to one count of illegally reentering the United States after being deported. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Aug. 30, 2018.
In February 2000, Genoa-Maldonado was convicted in federal court in Pennsylvania of distributing heroin. Upon completion of his sentence, Genoa-Maldonado was placed into removal proceedings, and on March 10, 2004, he was deported to the Dominican Republic. In May 2016, federal officials encountered Genoa-Maldonado at MCI Cedar Junction. Earlier that year, Genoa-Maldonado had been sentenced to nine-to-10 years for heroin trafficking. During an interview with law enforcement, Genoa-Maldonado admitted his status and prior deportation in 2004.
Genoa-Maldonado faces a sentence of no greater than 20 years in prison, three years 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 Todd M. Lyons, Deputy Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
Detroit Man Pleads Guilty to Federal Drug and Firearm ChargesRead the Press Release
CHARLESTON, W.Va. – A Detroit man was sentenced yesterday to federal prison on drug and firearm charges, announced United States Attorney Mike Stuart. Fashawn “Chops” Cannon, 28, previously entered guilty pleas to distributing Oxycodone and using a firearm during and in relation to that crime. Cannon admitted that on November 17, 2017, he sold an Oxycodone tablet to a confidential informant in Hernshaw, West Virginia, and that he carried a Hi-Point, model C9, 9mm pistol when he made that sale. He was sentenced to a total of 78 months in prison -- 18 months on the distribution change to be served consecutively with a sentence of 5 years, or 60 months, on the firearm charge.
U.S. Attorney Stuart commended the cooperative investigative efforts of several agencies, including the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Kanawha County Sheriff’s Office.
“The really bad news here is that Detroit drug dealers have found the small community of Hernshaw,” said United States Attorney Mike Stuart. “The good news is that Cannon will be spending quite a while in federal prison. Make no mistake, our focus is district-wide when it comes to aggressively prosecuting violent, out-of-state drug dealers that bring their criminal activities into West Virginia.”
Assistant United States Attorney Matt Davis was in charge of the prosecution. United States District Judge John T. Copenhaver, Jr. handed down the sentence.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Delaware County Convicted Murderer and Opioid Dealer Sentenced to Life in PrisonRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that his office secured a life sentence today in a case involving a Delaware County man convicted of murder through the use of a firearm and conspiracy to distribute oxycodone. Anthony Vetri, 30, of Essington, was sentenced by U.S. District Judge Gerald J. Pappert. Vetri and Michael Vandergrift, 31, of Chester, were convicted of conspiracy to distribute oxycodone from 2008 until June 4, 2013. During the conspiracy, Vetri obtained large sums of oxycodone from a registered pharmacist, Mitesh Patel, who owned and operated three pharmacies in the greater Philadelphia area. Vetri then supplied Vandergrift with oxycodone, and both distributed the drugs throughout Delaware and Philadelphia Counties. During the course of the conspiracy, Vetri received and distributed in excess of 100,000 oxycodone tablets, earning him hundreds of thousands of dollars in drug proceeds.
During the drug conspiracy, Patel illegally provided oxycodone to others, including his business partner, Gbolahan Olabode. Beginning in the fall of 2011, Vetri and Vandergrift conspired to eliminate Olabode as a competitor to boost Vetri and Vandergrift’s oxycodone supply from Patel. Vetri and Vandergrift ultimately decided to murder Olabode, and Vandergrift recruited Michael Mangold and Allen Carter to assist. On January 4, 2012, Vandergrift, Mangold, and Carter went to Olabode’s residence in Lansdowne, Pennsylvania and waited for Olabode to return home. When Olabode returned, Vandergrift and Mangold each used a firearm to fire 27 shots at Olabode as he carried groceries into his home. The assailants struck the victim 13 times in his head and body, causing Olabode’s death. Following Olabode’s murder, Vetri celebrated Olabode’s death and continued to illegally distribute oxycodone that he obtained from Patel.
“The depravity of Vetri’s crimes knows no bounds. For years, the defendant poisoned his own community by fueling the opioid crisis in the Eastern District of Pennsylvania. Vetri’s distribution of over 100,000 oxycodone pills helped ruin people’s lives, and I have no doubt that many of Vetri’s customers continue to battle opioid abuse and addiction,” said U.S. Attorney McSwain. “The defendant is a violent drug trafficker who brought terror to the streets when he senselessly plotted the ambush and brutal murder of one of his rivals. Vetri has no respect for the law and no respect for human life. The defendant has never expressed remorse, nor has he accepted any responsibility for his actions. We are grateful that the Court held the defendant accountable for his violent and destructive conduct.”
Patel, Mangold, and Carter all previously pleaded guilty to charges for their respective involvement in drug distribution, the murder of Olabode, and other offenses, and are currently awaiting sentencing.
"For years, this defendant took advantage of addicts' misery, flooding the streets with pills and fueling the opioid crisis in our community," said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. "As he and his co-conspirator cashed in, they devised a brutal business plan: get more drugs and make more money by murdering the competition. Vetri is a danger to society on many levels, and this sentence is richly deserved."
The case was investigated by the Federal Bureau of Investigation, the U.S. Drug Enforcement Administration, the Internal Revenue Service’s Criminal Investigation Division, the Philadelphia Police Department, the Organized Crime Drug Enforcement Task Force, the Lansdowne Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorneys Jonathan B. Ortiz and David. E. Troyer are prosecuting the case.
Defendant in Tax Fraud Scheme Involving Stolen Identities of Children Sentenced to 120 Months in PrisonRead the Press Release
PHILADELPHIA – A Darby, PA tax preparer, who used the identities of disabled children and children in foster care to file false federal income tax returns, was sentenced in federal court today to 120 months in prison and $83,870 restitution, announced U.S. Attorney William M. McSwain. Musa Turay, 44, was sentenced by U.S. District Judge Harvey Bartle III.
Turay was a partner at Medmans Financial Services, a tax preparation business which operated two offices in Philadelphia. Turay and defendant Mohamed Mansaray, the other partner of the illegal business, ran the tax preparation business at 1869 S. 65th Street in Philadelphia.
Turay conspired to defraud the Internal Revenue Service by falsifying information on income tax returns to generate fraudulent refunds. The defendant prepared and filed federal income tax returns for clients of his tax preparation business. These returns included intentional false deductions, fake credits, and fictitious dependents using the names and Social Security numbers of children who were unrelated to the taxpayers, some of whom were in the foster care system.
Turay prepared over 1,000 fraudulent tax returns, and the IRS estimated that the loss caused by the returns prepared by the defendant was approximately $8,000,000. The defendant also falsified his own personal income tax returns by falsely adding dependents to the returns. Additionally, he fled the country after the government filed a motion to revoke his bail. The defendant absconded for nine months, until he was ultimately apprehended and is currently being held in jail.
“As U.S. Supreme Court Justice Oliver Wendell Holmes, Jr., noted, ‘Taxes are what we pay for civilized society,’” said U.S. Attorney McSwain. “Our tax laws are in place for a reason. When they are ignored, especially to this extent, we all lose. The defendant not only violated the tax laws, but he victimized innocent children by using their information to further his criminal scheme. This was a long-running conspiracy, and our investigators and prosecutors were determined to ensure that the defendant was held accountable for his actions. This sentence should send a message to anyone who thinks he can flout the law and target vulnerable victims without consequence.”
Turay is the last of 11 defendants prosecuted in this investigation to be sentenced for their roles in the preparation of thousands of false tax returns. The total loss to the government caused by all the tax preparers who worked at Medmans Financial Services was more than $30,000,000. The harm done to the children who were the victims of the tax fraud, however, cannot be quantified. These children will forever be at risk for the improper use of their identity information. Many of the parents and legal guardians of the children who were victimized in this case found themselves unable to file their own tax returns and claim their own children as dependents, because their children already had been falsely claimed as dependents on fraudulent returns.
“Today's sentence exemplifies IRS Special Agents' intense focus on the rigorous pursuit of identity theft and refund fraud,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. “Musa Turay and his co-conspirators perpetuated an elaborate scheme driven by insatiable greed and a blatant disregard for the tremendous damage inflicted on innocent victims. Be assured that IRS Criminal Investigation, together with our partners at the U.S. Attorney's Office, will hold those who engage in similar behavior fully accountable.”
The case was investigated by the Internal Revenue Service Criminal Investigation, the City of Philadelphia Office of Inspector General, and the Social Security Administration Office of Inspector General Office of Investigations. It is being prosecuted by Assistant United States Attorney Frank Costello.
Cuban Man Pleads Guilty to Conspiracy to Transport Illegal AliensRead the Press Release
Gulfport, Miss. – Carlos Manuel Legra-Ramirez, age 43, a citizen of Cuba and a Legal Permanent Resident of the United States living in Georgia, pled guilty Friday before U.S. District Judge Sul Ozerden to conspiracy to transport illegal aliens within the United States, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans, and Joseph A. Banco Jr., Acting Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
Legra-Ramirez is scheduled to be sentenced by Judge Ozerden on September 7, 2018. Legra-Ramirez faces a potential maximum 10 years imprisonment, not more than 3 years supervised release, a maximum $250,000 fine, and special assessments that could total $5,100. He also will be subject to immigration removal proceedings.
On February 6, 2018, on Interstate 10 east bound in Harrison County, the United States Border Patrol conducted a traffic stop on a Toyota Highlander Sport Utility Vehicle (SUV), displaying a Georgia license plate registered to Legra-Ramirez. The SUV contained 10 illegal aliens, for a total of eleven occupants (including the driver) even though the Toyota Highlander SUV had seatbelts to lawfully seat only seven occupants.
U.S. Department of Homeland Security officials positively identified four of the passengers as aliens who had been previously deported or removed and who had unlawfully returned to the United States. Each of those four passengers were prosecuted for the felony offense of violating Title 8 U.S.C., Section 1326(a)(2), Unlawful Re-Entry into the United States by a Removed Alien. Each of the four passengers pled guilty to that offense and were convicted.
Further investigation also revealed that on August 27 2013, a vehicle registered to Legra-Ramirez was stopped in Mobile, Alabama. The vehicle was driven by a different Cuban national, who said he had recently purchased the vehicle, and admitted to smuggling the 9 illegal aliens who were passengers in his vehicle. Additionally, on August 31, 2013, Legra-Ramirez had been stopped on I-10 east bound near Lake City, Florida, driving a vehicle with 6 illegal alien passengers.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland
Security, Homeland Security Investigations, and the U.S. Border Patrol. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Court Shuts Down Georgia Return PreparerRead the Press Release
A federal court in Newnan, Georgia permanently enjoined Lucrezia Finch Henderson from preparing federal income tax returns for others, the Justice Department announced today. The court also ordered Henderson to mail a copy of the injunction order to all customers for whom she prepared a return after January 1, 2015.
According to that complaint, Henderson prepares tax returns at Infinity Tax located at 104 Sage Commercial Drive, Suite B, in Lagrange, Georgia. As alleged in the complaint, Henderson engaged in abusive tax schemes such as reporting fake businesses on her customers’ returns in order to generate losses to lower their tax liabilities. The Court found that Henderson falsely reported on several of her customers’ returns that each had a business that earned no money and had tens of thousands of dollars in expenses. According to the complaint, Henderson used the losses from these fake businesses to offset her customers’ income and claim a larger tax refund than they were entitled to receive.
In addition, the Court found that Henderson falsely reported that her customers had education expenses in support of education credits the customers were not eligible to claim. The complaint alleged that some of these customers did not even attend college that year. According to the complaint, the IRS audited about 110 returns prepared by Henderson for her customers and found that Henderson understated her customers’ tax liabilities by more than $650,000 in the aggregate.
Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2018 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Council Bluffs Man Sentenced to 27 Months in Prison for Charge of Prohibited Person in Possession of a Firearm and AmmunitionRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced that on Monday, June 4, 2018, 42 year-old Raymond Stark was sentenced by Chief District Court Judge John A. Jarvey for the charge of Prohibited Person in Possession of a Firearm and Ammunition. Stark previously pleaded guilty plea to this charge on January 16, 2018. Stark was sentenced to 27 months in prison, to be followed by three years of supervised release, with the federal prison sentence to run consecutively to the sentence Stark is serving for charges in the Iowa District Court in Pottawattamie County.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by Council Bluffs Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Felon Sentenced to over Seven Years in Prison for Possession of a Firearm in Jackson NeighborhoodRead the Press Release
Jackson, Miss. – Justin Stabler, 31, of Harrison County, Mississippi, was sentenced yesterday by U.S. District Judge Henry T. Wingate to serve 90 months in federal prison as a result of his pleading guilty to possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols, Bureau of Alcohol, Tobacco, Firearms and Explosives.
Just before 7:30 a.m. on September 1, 2017, officers from the Jackson Police Department responded to 911 calls from the Belhaven Heights neighborhood concerning a man walking down the street brandishing a firearm. Several officers responded to the area of Moody and Quinn Streets in Jackson, and shortly thereafter, officers spotted Justin Stabler walking down the street carrying a revolver in his hand. Stabler was taken into custody without incident, and officers quickly determined that he was a convicted felon who was on parole and residing at a halfway house in another area of Jackson. Because Stabler was a convicted felon, he was prohibited from possessing either a firearm or ammunition under federal law. The firearm Stabler possessed was a large caliber Taurus "Judge" revolver loaded with five .410 gauge shotgun shells. The firearm was later determined to have been stolen.
Stabler had previously been convicted of multiple state felony offenses in Harrison County, Mississippi and Jackson County, Mississippi, including burglary, theft of a motor vehicle, possession of a weapon by a convicted felon and possession of counterfeit currency.
The case was investigated by the Jackson Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Dave Fulcher.
Colorado Man Sentenced for Conviction on Cocaine Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Leroy Tchod Cameron Ravenell, 28, of Colorado Springs, Colo., was sentenced this morning in federal court in Las Cruces, N.M., to 30 months in prison for his cocaine trafficking conviction. Ravenell will be on supervised release for three years after completing his prison sentence.
U.S. Border Patrol agents arrested Ravenell on Nov. 11, 2016, after finding approximately .36 kilograms (.8 pounds) of cocaine and two loaded firearms concealed in his vehicle during an inspection at the U.S. Border Patrol checkpoint near Alamogordo, N.M., in Otero County, N.M. Ravenell initially was charged in a criminal complaint. He subsequently was indicted on May 17, 2017, and was charged with possession of cocaine with intent to distribute.
On Aug. 2, 2017, a federal jury returned a guilty verdict against Ravenell on the sole count of the indictment. The testimony at trial established that on Nov. 11, 2016, Ravenell was a passenger in his vehicle when it drove into the U.S. Border Patrol checkpoint on Highway 54 south of Alamogordo. During a routine inspection of Ravenell’s vehicle, Border Patrol agents found approximately 243 grams of cocaine and two firearms in the back of the vehicle, in addition to finding a large amount of cash on Ravenell’s person. The jury also heard Ravenell’s statement to law enforcement acknowledging that he bought the cocaine in El Paso, Tex., on the morning of Nov. 11, 2016, with the intention of selling it to others.
This case was investigated by the DEA and the U.S. Border Patrol and was prosecuted by Assistant U.S. Attorneys John Balla and Richard C. Williams of the U.S. Attorney’s Las Cruces Branch Office.
Colorado Man Indicted for Attempted Sexual Exploitation of a MinorRead the Press Release
KANSAS CITY, Mo. – A Colorado man was indicted by a federal grand jury today after traveling to Kansas City, Mo., to meet an undercover FBI agent, whom he believed to be a mother with her 7-year-old daughter, for sex.
Ryan Edward Mausner, 42, of Basalt, Colo., was charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Mausner on May 25, 2018.
The federal indictment charges Mausner with one count of attempting to entice a minor to engage in illegal sexual activity, and one count of traveling across state lines with the intent to engage in illicit sexual conduct with a minor.
According to an affidavit filed in support of the original criminal complaint, Mausner was actually communicating (via the Kik messaging application and texts) with an undercover FBI agent, who portrayed a single mother with a 5-year-old son and a 7-year-old daughter. Mausner allegedly engaged the undercover agent in several private chat sessions in which he said he wanted to engage in sexual activity with the mother and daughter.
In the course of these chats, the affidavit says, Mausner made numerous sexually suggestive or overtly sexually explicit comments including BDSM terminology about the mother and daughter.
Mausner traveled from Denver, Colo., to Kansas City, Mo., on May 25, 2018, and arrived at Kansas City International Airport at about 5 p.m.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Coatesville Man Charged with Wire Fraud in Gift Card ScamRead the Press Release
PHILADELPHIA – A Coatesville, PA man was charged today in connection with a scheme to over-redeem gift cards, U.S. Attorney William M. McSwain announced.
Chad Douglas Broudy, 23, was charged by criminal information with wire fraud.
The information alleges Broudy defrauded an internet e-commerce company by exploiting a software glitch that permitted repeated uses of the same gift card. The information alleges that between October 29, 2016, and January 10, 2017, Broudy intentionally conducted approximately 1100 fraudulent transactions triggering this glitch, and in the process over-redeemed approximately $320,582 from the company’s gift cards.
“The defendant had a choice. He could have reported the glitch. But he chose greed and crime over honesty. He took full advantage of the glitch and exploited it not once or twice, but more than 1100 times, obtaining more than 3,000 items through fraud.”
If convicted the defendant faces a maximum possible sentence of 40 years imprisonment, 3 years of supervised release, a fine of $500,000, and full restitution.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Albert S. Glenn.
Cleveland man indicted on a drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – A Cleveland, Ohio man was indicted today by a federal grand jury on cocaine distribution charges, United States Attorney Bill Powell announced.
Anthony Walter Rogers, age 27, is charged with three counts of “Distribution of Cocaine Base” and one count of “Possession with Intent to Distribute Cocaine Base.” Rogers is accused of selling cocaine in Marshall County in August 2017 and April 2018.
Rogers faces up to 30 years incarceration and a fine of up to $2,000,000 for each distribution count and faces up to life incarceration and a fine of up to $8,000,000 for the possession 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 Robert H. McWilliams, Jr., is prosecuting the case on behalf of the government. The Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Chicago Brothers Sentenced to 15 and 12 Years in Federal Prison for Airplane Loan ScamRead the Press Release
BOSTON – Two Chicago brothers were sentenced today in federal court in Worcester for defrauding and attempting to defraud banks out of $4 million in an airplane loan scheme.
Ryan Miller, 32, and Dusten James Miller, 31, were sentenced by U.S. District Court Judge Timothy S. Hillman to 15 years in prison and five years of supervised release, and 12 years in prison and five years of supervised release, respectively. In February 2018, the brothers were convicted of one count of conspiracy to commit bank fraud, one count of conspiracy to commit money laundering, and one count of conspiracy to commit identity theft. Ryan Miller was also convicted of one count of bank fraud, one count of money laundering, and one count of aggravated identity theft.
From March 2013 through March 2016, Ryan and Dusten Miller, along with other co-conspirators, were engaged in a scheme to defraud banks by obtaining and attempting to obtain fraudulent airplane loans. Using stolen identities, the brothers posed as the buyers and the sellers of airplanes; they filled out fraudulent loan applications and provided the banks with false and fraudulent documents in support of those applications, such as tax returns, bank statements, driver’s licenses and Social Security cards. Once the loans were approved, the brothers arranged for the loan documents to be sent to an email address they created, or a physical address - usually a virtual office location they set-up. The Millers then signed and notarized the loan documents and sent them back to the banks. They also provided the banks with instructions to wire the fraudulent loan proceeds to multiple bank accounts in the name of sham corporations the brothers set up. Once the funds were wired to those accounts, the brothers used the funds to purchase luxury cars and homes, to fund private chauffeurs, and to buy Rolex watches and other luxury items. In total, the brothers defrauded at least five banks and used the personal identifying information of at least nine individuals from all across the country.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Thomas J. Ullom, Special Agent in Charge of the Chicago Regional Office, U.S. Department of Transportation, Office of Inspector General, made the announcement. Assistant U.S. Attorneys Karin M. Bell and Greg A. Friedholm of Lelling’s Worcester Branch Office prosecuted the case.
Charleston Man Sentenced for EscapeRead the Press Release
CHARLESTON, W.Va. -- Donavan Hardison, 28, of Charleston, was sentenced yesterday by United States District Court Judge John T. Copenhaver, Jr., to 8 months in prison for having escaped from the Dismas Charities’ halfway house in St. Albans, West Virginia. Stuart credited the cooperative effort of the United States Marshal Service, the West Virginia State Police, the Charleston Police Department, and the Kanawha County Sheriff’s Office for Hardison’s capture.
“Our federal, state and local law enforcement officers will not stop looking for escapees until they are apprehended,” said United States Attorney Mike Stuart. “During Hardison’s additional 8-month stay in prison, he needs to let the other inmates know that escape attempts just aren’t worth it.”
Hardison previously pled guilty in April admitting that he had walked away from Dismis without permission on May 16, 2017, and his whereabouts were unknown until his arrest on February 6, 2018. Hardison had been placed at Dismas by the Federal Bureau of Prisons in March 2017 to serve the remainder of his sentence for a federal drug conviction.
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###California Resident Convicted of Tax CrimesRead the Press Release
A jury in the Northern District of California convicted Jyh-Chau “Henry” Horng, of Saratoga, California and part owner of a home-based international trading business, yesterday on two counts of filing false tax returns and one count of making false statements to an Internal Revenue Service (IRS) agent while under audit, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and Acting United States Attorney Alex G. Tse for the Northern District of California. The jury acquitted Horng’s wife, Meili Lin, on one count of filing a false tax return and failed to reach a verdict on the second count.
According to court documents and evidence presented during the three-week trial, Horng underreported income on his 2006 and 2007 tax returns. The returns failed to report profits from selling metal products to China while that country was undergoing its economic and infrastructure boom. Horng used these business profits to buy millions of dollars of residential properties, invest over $5 million in a Milpitas shopping center, and purchase a Bentley. Horng also reported annual income of over $1 million on a mortgage application, despite reporting far less than that on the tax returns he filed with the IRS. During an IRS audit of the returns, Horng made numerous false statements, including that neither he nor his wife had any foreign bank accounts.
Horng faces a statutory maximum sentence of three years in prison for each false tax return. He could be sentenced to an additional five years for lying to the IRS auditor. He is also subject to a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and Acting United States Attorney Tse thanked IRS Special Agents Maria Martinez and Cheryl Parker for their work on the investigation, Assistant United States Attorney Michael Pitman and Trial Attorney Christopher Magnani for prosecuting the case, and Paralegal Specialist Jonathan Deville for his assistance during the trial.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
California Man Sentenced to More Than 7 Years in Prison for Robbery Spree, Cross-Country PursuitRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DAVID E. BYERS, 35, of Solana Beach, California, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 88 months of imprisonment, followed by three years of supervised release, for engaging in an east coast robbery spree and subsequent cross-country pursuit.
According to court documents and statements made in court, on April 19, 2017, BYERS, wearing a bandana over his face and displaying what appeared to be the handle from a handgun, robbed a Gulf gas station in Nesconset, N.Y., of $300. On April 20, he robbed a Chase Bank branch in Stony Brook, N.Y., of $2,107. On April 24, BYERS, wearing a bandana over his face and displaying what appeared to be a handgun, robbed a Citgo gas station in Greenwich, Conn., of $223. On April 25, again wearing a bandana over his face, he robbed a Chase Bank branch in Greenwich of $8,722. On April 26, BYERS returned to the Chase Bank branch in Greenwich and robbed it of $3,391.
On April 28, 2017, Greenwich Police saw BYERS driving a vehicle and attempted to apprehend him, but he drove away at a high rate of speed, subsequently abandoned the vehicle on I-95 and evaded police on foot. He then stole another vehicle in Port Chester, N.Y., placed a stolen license plate on the vehicle, and proceeded to drive to California.
Pennsylvania State Police attempted to apprehend BYERS in Pennsylvania by deploying a tire deflation device, but BYERS was able to abandon the vehicle and fled on foot. He then stole a pickup truck that had keys in it. At a rest stop, he stole Maryland license plates, put them on the truck and continued driving west.
On May 1, 2017, BYERS engaged the Arizona State Police in a high-speed chase before abandoning the vehicle and fleeing on foot.
BYERS was arrested in San Diego on May 2, 2017, and has been detained since his arrest. On November 7, he pleaded guilty to one count of Hobbs Act robbery.
Judge Shea ordered BYERS to pay restitution of $14,753.
This matter was investigated by the Federal Bureau of Investigation, Greenwich Police Department, Suffolk County (N.Y.) Police Department, Pennsylvania State Police, Arizona State Police and San Diego County Sheriff’s Department. The case was prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
Caldwell Man Sentenced to Prison on Federal Drug ChargeRead the Press Release
BOISE – Leeroy Salazar, 39, of Nampa, was sentenced today to 120 months in prison followed by eight years of supervised release for distribution of methamphetamine, U.S. Attorney Bart M. Davis announced. A federal grand jury indicted Salazar on December 13, 2017.
According to court records, law enforcement used a confidential informant to purchase methamphetamine from Salazar on three occasions. Salazar, a member of the East Side Locos gang in Caldwell, has a criminal history that includes felony convictions for domestic violence and unlawful possession of a firearm. Salazar also has a prior drug offense that enhanced his sentence.
Distribution of methamphetamine is punishable by at least ten years and up to life imprisonment, at least eight years of supervised release, an $8,000,000 fine, and a $100 special assessment.
This case was investigated by the Treasure Valley Metro Violent Crimes Task Force. The Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit www.treasurevalleypartners.org.
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.
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Cabell County Man Pleads Guilty to Producing Child PornographyRead the Press Release
CABELL COUNTY MAN PLEADS GUILTY TO PRODUCING CHILD PORNOGRAPHY
HUNTINGTON, W.Va. – A Cabell County man pled guilty yesterday to child pornography crimes, announced United States Attorney Mike Stuart. David Ray Pelfrey, 40, of Huntington, entered his guilty plea to two counts of production of child pornography. Stuart praised the investigation conducted by the Huntington Police Department and the Federal Bureau of Investigation.
“These crimes are horrific,” said United States Attorney Mike Stuart. “We should all be incredibly grateful to the FBI and the Huntington Police Department for their efforts to investigate sexual predators like Pelfrey that prey on our children. My intention is to prosecute them to the fullest extent of the law and get them locked up for as long as possible.”
Pelfrey admitted that on May 20, 2017, he took a sexually explicit photograph of a 16-year-old female, and that on June 1, 2017, he took a video depicting himself engaged in sexually explicit conduct with the same minor female. Pelfrey further admitted that possessed at least one sexually explicit image of another minor female on his cell phone.
Pelfrey faces at least 15 and up to 60 years in federal prison when he is sentenced on September 4, 2018, although pursuant to the terms of the plea agreement between the United States and Pelfrey, he will receive a sentence of 18 years in prison if the District Court accepts the agreement. Upon his release from prison, he will be required to serve a term of supervised release of at least five years and up to life. He will also be required to register as a sex offender.
First Assistant United States Attorney Lisa Johnston and Assistant United States Attorney Jennifer Rada Herrald are in charge of the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Boston Man and Arizona-Based Supplier Plead Guilty to Distributing MethamphetamineRead the Press Release
BOSTON – A Boston man and his Arizona-based supplier pleaded guilty yesterday in federal court in Boston to federal drug offenses.
Peter Molloy, 39, and Adrian Carlos Maldonado, 38, pleaded guilty to one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine. Molloy also pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine. U.S. Senior District Court Judge Mark L. Wolf scheduled Maldonado’s sentencing for Aug. 29, 2018, and Molloy’s sentencing for Aug. 30, 2018.
Molloy began distributing methamphetamine in approximately January 2014, originally purchasing methamphetamine from a variety of sources and distributing the drugs to customers in the Boston area. At some point in roughly January 2015, Molloy began purchasing the drugs from Maldonado, who was based in Arizona. Maldonado arranged for the methamphetamine to be transported from Arizona to Massachusetts.
On Aug. 14, 2017, a search of Molloy’s condominium in South Boston resulted in the seizure of more than 160 grams of methamphetamine, $75,762 in cash and a $1,000 money order. As part of his plea agreement, Molloy agreed to forfeit the seized cash and money order, his interest in the condominium, and a 2014 Hyunda Veloster that he used to facilitate drug dealing. Molloy also agreed to waive claims to other items that were seized, or turned over, to law enforcement during the investigation, including an additional $98,000, a $10,000 cashier’s check and another $1,000 money order.
Both the charge of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine and possession with intent to distribute 50 grams or more of methamphetamine provide for a minimum sentence of 10 years and up to life in prison, a minimum of five years of supervised release, and a fine of $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; William Ferrara, Director of Field Operations of U.S. Customs and Border Protection; Delany De Leon-Colon, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; Commissioner Thomas Turco of the Massachusetts Department of Correction; Reading Police Chief Mark D. Segalla; and Boston Police Commissioner William Evans made the announcement. Norfolk County Sherriff’s Office; Suffolk County Sheriff’s Office; and the Watertown, Quincy, Chelsea, Braintree, Peabody, Waltham, and Woburn Police Departments assisted with the investigation. Assistant U.S. Attorney James E. Arnold of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Bluefield Man Pleads Guilty to Federal Drug ChargeRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Mike Stuart announced today that a Bluefield man entered a guilty plea to a federal drug distribution charge. Lansen Waugh, 38, pled guilty to distribution of a quantity of hydromorphone, admitting that on August 8, 2017, he distributed hydromorphone pills to a confidential informant in Princeton. Stuart commended the investigation conducted by the Southern Regional Drug and Violent Crime Task Force.
“The Bluefield Pill Initiative continues,” said United States Attorney Mike Stuart. “My Office, along with law enforcement partners such as the Southern Regional Drug and Violent Crime Task Force, are committed to curtailing the illegal trafficking of opioid painkillers. Waugh now faces a significant sentence for his reckless, criminal, and dangerous conduct.”
Waugh also admitted that he sold hydromorphone pills in Green Valley and in Bluefield. He faces up to 20 years in prison when he is sentenced on October 3, 2018.
The case is being prosecuted by Assistant United States Attorney John File. Senior United States District Judge David A. Faber presided over the plea hearing.
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Biodiesel Fuel Company Pleads Guilty to Releasing over 45,000 Gallons of Wastewater into the Arthur KillRead the Press Release
An Elizabeth, New Jersey, biodiesel fuel company pleaded guilty today to discharging over 45,000 gallons of wastewater from its commercial biodiesel fuel production into the Arthur Kill, a narrow waterway that separates New Jersey from Staten Island, New York, U.S. Attorney Craig Carpenito and Acting Assistant Attorney General Jeffrey H. Wood announced.
Fuel Bio One LLC pleaded guilty before U.S. District Court Judge William J. Martini to an information charging it with one count of violating the Clean Water Act, a statute that was enacted to prevent, reduce, and eliminate water pollution in the United States.
According to court documents, Fuel Bio One generated wastewater that included methanol, biodiesel and other contaminants, as a byproduct of its biodiesel fuel production at its Elizabeth, New Jersey, plant. On September 6, 2013, and November 9, 2013, employees of Fuel Bio One released a total of approximately 45,000 gallons of wastewater into a storm water pit at the Elizabeth plant, causing the pump to operate and, as a result, wastewater to be discharged into the Arthur Kill. A representative of Fuel Bio One admitted to this conduct in court today.
Fuel Bio One has agreed, as part of its plea agreement, to pay $100,000 and to be placed on a probationary term of five years. During the probation, the company will be required to provide to the court biannual reports of any waste it generates and the steps taken to properly dispose of such waste. Fuel Bio One will also be required to develop an employee training program to ensure that all storage, treatment and disposal of wastewater complies with the Clean Water Act and any other applicable laws. The company will also be required to provide the U.S. Environmental Protection Agency full access to all offices, warehouses and facilities.
“Staten Island Sound (also known as the Arthur Kill) is a vital waterway running between New Jersey and Staten Island. Once heavily polluted and nearly devoid of marine life, this waterbody is making a comeback and again provides habitat to many species of fish and wildlife,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “Illegal dumping of pollution into the Sound not only violates federal law, but also threatens the environmental recovery of this historic marine channel, which is important to New Yorkers and New Jerseyans alike. The Justice Department will continue to work closely with EPA Criminal Investigation Division to prosecute illegal actions like those in this case.”
“Protecting the environment and our natural resources is one of the many ways this office works to keep New Jersey safe for everyone,” said U.S. Attorney Carpenito for the District of New Jersey. “Today’s prosecution and guilty plea ensures that Fuel Bio One will be punished for its past crimes, and the plea agreement puts into place a plan to make sure they don’t pollute our waterways in the future.”
“Fuel Bio One undercuts a level playing field when they illegally discharge polluted wastewater into the Arthur Kill without any regulatory approval,” said Special Agent in Charge Tyler Amon of EPA’s Criminal Investigation Division in New Jersey. “This judicial action demonstrates EPA’s commitment to protecting New Jersey’s environment and ensuring that all companies play by the rules to keep pollutants from the state’s natural resources.”
U.S. Attorney Carpenito and Acting Assistant Attorney General Wood credited special agents of the U.S. Environmental Protection Agency, under the direction of Special Agent in Charge Tyler Amon, with the investigation leading to today’s charges.
The Government is represented by Assistant United States Attorney Kathleen P. O'Leary of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark and Adam Cullman of the Environmental Crimes Section of the United States Department of Justice.
Biodiesel Fuel Company Admits Releasing More Than 45,000 Gallons of Wastewater into Arthur KillRead the Press Release
NEWARK, N.J. – An Elizabeth, New Jersey, biodiesel fuel company today admitted discharging more than 45,000 gallons of wastewater from its commercial biodiesel fuel production facility into the Arthur Kill, a narrow waterway that separates New Jersey from Staten Island, New York, U.S Attorney Craig Carpenito and Acting Assistant Attorney General Jeffrey H. Wood announced.
Fuel Bio One LLC pleaded guilty before U.S. Magistrate Judge James B. Clark 3rd to an information charging it with one count of violating the Clean Water Act, a statute that was enacted to prevent, reduce, and eliminate water pollution in the United States.
“Protecting the environment and our natural resources is one of the many ways this office works to keep New Jersey safe for everyone,” U.S. Attorney Carpenito said. “Today’s prosecution and guilty plea ensures that Fuel Bio One will be punished for its past crimes, and the plea agreement puts into place a plan to make sure they don’t pollute our waterways in the future.”
“Staten Island Sound (also known as the Arthur Kill) is a vital waterway running between New Jersey and Staten Island. Once heavily polluted and nearly devoid of marine life, this waterbody is making a comeback and again provides habitat to many species of fish and wildlife,” Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division said. “Illegal dumping of pollution into the Sound not only violates federal law, but also threatens the environmental recovery of this historic marine channel, which is important to New Yorkers and New Jerseyans alike. The Justice Department will continue to work closely with EPA Criminal Investigation Division to prosecute illegal actions like those in this case.”
“Fuel Bio One undercuts a level playing field when they illegally discharge polluted wastewater into the Arthur Kill without any regulatory approval,” Special Agent in Charge Tyler Amon of EPA’s Criminal Investigation Division in New Jersey said. “This judicial action demonstrates EPA’s commitment to protecting New Jersey’s environment and ensuring that all companies play by the rules to keep pollutants from the state’s natural resources.”
According to court documents filed in this case and statements made in court:
Fuel Bio One generated wastewater that included methanol, biodiesel and other contaminants, as a byproduct of its biodiesel fuel production at its Elizabeth, New Jersey, plant. On September 6, 2013, and November 9, 2013, employees of Fuel Bio One released a total of approximately 45,000 gallons of wastewater into a storm water pit at the Elizabeth plant, causing the pump to operate and, as a result, wastewater to be discharged into the Arthur Kill. A representative of Fuel Bio One admitted to this conduct in court today.
Fuel Bio One has agreed, as part of its plea agreement, to pay $100,000 and to be placed on a probationary term of five years. During the probation, the company will be required to provide to the court biannual reports of any waste it generates and the steps taken to properly dispose of such waste. Fuel Bio One will also be required to develop an employee training program to ensure that all storage, treatment and disposal of wastewater complies with the Clean Water Act and any other applicable laws. The company will also be required to provide the U.S. Environmental Protection Agency full access to all offices, warehouses and facilities.
U.S. Attorney Carpenito and Acting Assistant Attorney General Wood credited special agents of the U.S. Environmental Protection Agency, under the direction Special Agent in Charge Amon, with the investigation leading to today’s guilty plea.
The Government is represented by Assistant U.S. Attorney Kathleen P. O'Leary of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark and Adam Cullman of the Environmental Crimes Section of the U.S. Department of Justice.
Defense counsel: Christopher Adams Esq., Roseland, New Jersey
Bellingham Man Sentenced for Child PornographyRead the Press Release
BOSTON – A Bellingham man was sentenced today in federal court in Boston on child pornography charges.
John E. Kalinowski, 30, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to five years in prison and five years of supervised release. Upon release from custody, Kalinowski will be required to register with the Sex Offender Registry Board in any state or jurisdiction where he works or resides. In May 2016, Kalinowski pleaded guilty to one count of receipt and attempted receipt of child pornography and one count of possession of child pornography. Kalinowski has been in custody since his arrest in September 2014.
In August 2014, an individual reported to their local police department that she had observed images of pornography on her minor daughter’s iPad. The child was interviewed and told the police that the images were sent to her by Kalinowski.In September 2014, a search of Kalinowski’s home resulted in the seizure of computers, hard drives, and other media storage devices. A preliminary review of the devices revealed images of children engaged in sexually explicit conduct. Law enforcement officers also recovered numerous articles of children’s undergarments from Kalinowski’s home.
United States Attorney Andrew E. Lelling; Delany De Leon-Colon, Acting Inspector in Charge of the U.S. Postal Inspection Service; Whitman Police Chief Scott D. Benton; and Bellingham Police Chief Gerard L. Daigle Jr. made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’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, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Attorney General Jeff Sessions Selects District of Columbia to Receive Additional Resources to Combat Violent Crime and FraudRead the Press Release
WASHINGTON - Attorney General Jeff Sessions has selected the District of Columbia to receive three additional Assistant U.S. Attorneys to focus on violent crime and civil enforcement matters, part of a nationwide influx of federal resources to communities.
In the largest increase in decades, Attorney General Sessions announced on June 4, 2018 that the Department of Justice is allocating 311 new Assistant U.S. Attorneys to assist in priority areas. Those allocations are as follows: 190 violent crime prosecutors, 86 civil enforcement attorneys, and 35 additional immigration prosecutors. Nationwide, much of the civil enforcement work will support the newly created Prescription Interdiction & Litigation Task Force, which targets the opioid crisis at every level of the distribution system.
“Under President Trump's strong leadership, the Department of Justice is going on offense against violent crime, illegal immigration, and the opioid crisis—and today we are sending in reinforcements,” said Attorney General Sessions. “We have a saying in my office that a new federal prosecutor is ‘the coin of the realm.’ When we can eliminate wasteful spending, one of my first questions to my staff is if we can deploy more prosecutors to where they are needed. I have personally worked to re-purpose existing funds to support this critical mission, and as a former federal prosecutor myself, my expectations could not be higher. These exceptional and talented prosecutors are key leaders in our crime fighting partnership. This addition of new Assistant U.S. Attorney positions represents the largest increase in decades.”
“My office is grateful for the extra support being provided by the Justice Department to make our community safer,” said U.S. Attorney Jessie K. Liu. “We will put our new attorneys to work as quickly as possible on complex cases involving violent crime, drug trafficking, health care fraud, and other serious offenses that harm the citizens of the District of Columbia.”
The U.S. Attorney’s Office already is working with the Metropolitan Police Department (MPD), the FBI’s Washington Field Office, and other law enforcement partners on a Justice Department initiative called Project Safe Neighborhoods (PSN) that is generating additional cases focusing on violent crime. Under Project Safe Neighborhoods, the U.S. Attorney’s Office is committed to a coordinated law enforcement approach and identifying and addressing the most violent locations in the District of Columbia and the offenders.
In the District of Columbia, two of the three new Assistant U.S. Attorneys will focus on violent crime and one will focus on civil enforcement. The new attorneys are in addition to an Assistant U.S. Attorney provided to the District of Columbia in an earlier initiative created by Attorney General Sessions to target cases involving violent crime.
On the violent crime front, the two new prosecutors will take on responsibilities including work on multi-agency investigations focusing on neighborhood crews and gangs in the Sixth and Seventh Police Districts. Much of the upcoming work will include coordinating federal and local law enforcement resources to combat the recent uptick in violent crime in these areas. The additional Assistant U.S. Attorneys will supplement and increase efforts in executing the Office’s ongoing Project Safe Neighborhoods initiatives and MPD’s Summer Crime Initiatives.
On the civil enforcement side, the new attorney will join five current Assistant U.S. Attorneys in the Office’s Civil Division in sharing responsibility for handling a large docket of complex fraud cases. The District of Columbia ranks fourth in the nation in the number of whistleblower cases filed under the False Claims Act since 1987, and the number of new cases in this district in which the United States is the plaintiff increased on average by 76% during the period from 2013 - 2017. Those cases primarily involve procurement fraud and health care fraud schemes that require substantial resources to investigate and prosecute.
Arizona Woman Sentenced to over 3 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Angelica Avendano , A/K/A Angelica Avendano-Gonzalez age 28, of Avondale, Arizona, was sentenced today to 42 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in November 2017, during the course of an investigation into the distribution of methamphetamine in the Western District of Arkansas, the Drug Enforcement Administration, (DEA) identified Avendano as the girlfriend and co-conspirator of Oscar David Zuniga-Chavez, a methamphetamine source of supply for local distributors of methamphetamine. During the investigation, agents sought and obtained a federal search warrant for Avendano’s residence in Peoria, AZ that she shared with Zuniga-Chavez. On December 8, 2016, agents with the DEA Fayetteville Resident Office traveled to Arizona, where they assisted DEA agents and task force officers from Phoenix, Arizona in the execution of the search warrant. Agents made contact with the Avendano at the residence, and advised her of her Miranda rights. During the interview with Avendano, she waived her Miranda rights and admitted to sending multiple packages containing methamphetamine to the Western District of Arkansas for distribution.
Avendano was indicted by a federal grand jury in July 2017 and pleaded guilty in January 2018.
This case was investigated by the Drug Enforcement Administration. Assistant United States Attorney Kim Harris prosecuted the case for the United States.
Anamosa Man Pleads Guilty to Possession of Child PornographyRead the Press Release
A man who possessed child pornography pled guilty yesterday in federal court in Cedar Rapids.
Austin Marek, age 22, from Anamosa, Iowa, was convicted of one count of possession of child pornography. At the plea hearing, Marek admitted that, in 2016, he knowingly possessed child pornography, including one or more depictions of prepubescent children.
Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Marek was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Marek faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, $5,100 in special assessments, and supervised release for 5 years to life following any imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 18-34.
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Allegiance Health Management to Pay More Than $1.7 Million to Resolve False Claims Act AllegationsRead the Press Release
WASHINGTON – The Justice Department announced today that Allegiance Health Management, Inc., (Allegiance), a post-acute healthcare management company based in Shreveport, Louisiana, and four hospitals owned and operated by Allegiance (collectively, the Allegiance Defendants), have agreed to pay more than $1.7 million to resolve False Claims Act allegations that the Allegiance Defendants submitted, and caused other hospitals to submit, claims for reimbursement from Medicare for services that were not medically reasonable or necessary.
Beginning in 2005, Allegiance entered into arrangements with numerous hospitals located throughout the Southeastern United States to provide Intensive Outpatient Psychotherapy (IOP) services to patients on the hospitals’ behalf. At each of these hospitals, Allegiance established an Inspirations Outpatient Counseling Center at which Allegiance employees and those acting under the direction and control of Allegiance were responsible for, among other things, identifying potential patients, creating patient treatment plans, and performing IOP services. This settlement resolves allegations that at each of the Inspirations Outpatient Counseling Centers, Allegiance provided IOP services to Medicare beneficiaries that did not qualify for Medicare reimbursement because: 1) the patients’ medical condition(s) did not necessitate IOP treatment; 2) the patients’ treatments were not provided pursuant to an individualized treatment plan designed to help individual patients address specific mental health needs and reach achievable goals; 3) the patients’ progress was not being adequately tracked or documented; 4) the patients received an inappropriate level of treatment; or 5) the therapy provided was primarily recreational or diversional in nature, and was not therapeutic.
“The Department of Justice recognizes the value of accessible mental healthcare, but will not tolerate companies that seek to exploit our most vulnerable populations by delivering inappropriate or worthless services” said Acting Assistant Attorney General Chad D. Readler for the Civil Division. “The Department of Justice is committed to holding accountable those who waste taxpayer dollars and place profit above the legitimate needs of patients.”
“Federal funding for mental health services must be wisely and prudently spent,” said United States Attorney Cody Hiland for the Eastern District of Arkansas. “Allegiance sought this taxpayer money by targeting and taking advantage of vulnerable members of our population who sought mental health treatment, including those in the Eastern District of Arkansas. This office is dedicated to pursuing all appropriate remedies against companies who behave in such a manner.”
The Allegiance defendants that are party to this settlement are: Allegiance Health Management, Inc.; Allegiance Behavior Health Center of Plainview, LLC; Allegiance Specialty Hospital of Kilgore, LLC; North Metro Medical Center a/k/a Allegiance Hospital of North Little Rock, LLC, and Sabine Medical Center a/k/a Allegiance Hospital of Many, LLC. The United States previously reached settlements with more than twenty other hospitals in this matter.
“Medicare funds must be targeted to those with a legitimate need,” said Special Agent in Charge CJ Porter for the Office of Inspector General of the U.S. Department of Health and Human Services. “Entities that bill for needless services – as alleged here – cheat taxpayers and threaten the integrity of government health programs.”
The settlement with Allegiance resolves a lawsuit filed in the Eastern District of Arkansas under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed by Ryan Ladner, who formerly worked for Allegiance as a Program Manager at the Inspirations Outpatient Counseling Center located at Wesley Medical Center in Hattiesburg, Mississippi. Mr. Ladner will receive approximately $300,000 as his share of the current settlement.
This and prior settlements in this matter were the result of a coordinated effort by the Civil Division of the Department of Justice, the United States Attorney’s Office for the Eastern District of Arkansas, and the Department of Health and Human Services, Office of Audit Services and Office of Inspector General.
The claims settled by the current agreement are allegations only, and there has been no determination of liability. The lawsuit is captioned U.S. ex rel Ladner v. Allegiance Health Management, Inc., et al, No. 4:10-CV-170 (E.D. Ark.).
A Monongalia County woman admits to firearms conspiracy chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Margaret Parker, of Dellslow, West Virginia, has admitted to her involvement in an illegal firearms operation, United States Attorney Bill Powell announced.
Parker, age 33, pled guilty to one count of “Conspiracy to Violate Federal Firearms Laws.” She admitted to being involved in a conspiracy that included making false statements to purchase firearms, trading firearms for controlled substances, and transporting and selling the firearms in New York. The crime occurred in Morgantown, Monongalia County and elsewhere from May 2017 to June 2017.
Parker faces up to five years incarceration and a fine of up to $250,000. 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 Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.
18 Members of Bronx Drug Trafficking Organization Charged with Distributing Potent Heroin and FentanylRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced today that MAURICE HARTLEY, a/k/a “Bugz,” REGINALD SANDERS, a/k/a “Black,” HECTOR SANCHEZ, a/k/a “Jabee,” AARON CARTER, a/k/a “Cream,” RONALD BEASLEY, a/k/a “Nuke,” JONATHAN SANCHEZ, a/k/a “Nash,” TYVANN BARNETT, a/k/a “Ty,” JAVIER BENITEZ, a/k/a “Javi,” ALEJANDRO RODRIGUEZ, a/k/a “Lex,” GREGORY CARTER, a/k/a “Fat Boy,” RAY SANCHEZ, FREDDIE TORRES, a/k/a “Kiko,” EDWARD DAVIES, a/k/a “Yum Yum,” LOUIS BROWN, a/k/a “Tut,” CHRISTOPHER SIMON, JOHNNY INGRAM, MARIE PALUMBO, and TIA JASPER have been charged with participating in a conspiracy to distribute heroin and fentanyl. Seventeen defendants were arrested yesterday evening and this morning and were presented before United States Magistrate Judge Robert W. Lehrburger in Manhattan federal court this afternoon. BENITEZ was in custody on state charges and has been transferred to federal custody. The case has been assigned to United States District Judge Paul A. Engelmayer.
U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants operated a network for the distribution of highly addictive and dangerous drugs. Even after they realized the potency of the drugs they were distributing and selling – and the overdose risk those drugs posed – the defendants allegedly continued to sell their poison and to fuel the opioid epidemic plaguing our nation. Today’s arrests are part of our continued commitment, along with our law enforcement partners, to stop the flow of heroin and fentanyl onto the streets of New York City.”
FBI Assistant Director William F. Sweeney Jr. said: “The drugs these suspects were allegedly selling are killing people. The harsh reality is the sellers and pushers are purposefully lacing heroin with a deadly mix of fentanyl to create a more powerful, and deadly high. The FBI Metro Safe Streets Task Force and our law enforcement partners are out day after day doing all we can to stop these criminals from causing more death in our communities. We won’t stop until we round up every last one of them.”
NYPD Commissioner James P. O’Neill said: “Law enforcement can help end the scourge of overdose deaths related to illegal narcotics in New York City by relentlessly pursuing the individuals and groups responsible for distributing them on our streets. Today’s charges show how effective the NYPD-federal partnership is in sharing the responsibility for public safety.”
According to the allegations in the Complaint and Indictment,[1] and statements made in Court:
The defendants were members of a drug trafficking organization (the “DTO”) that operated in the Bronx, New York, and controlled heroin sales between 182nd Street and 184th Street, primarily between Jerome Avenue and University Avenue (“the “DTO’s Drug Territory”). As a means of marketing its heroin, and to ensure that the only heroin sold in the DTO’s Drug Territory belonged to the DTO, the DTO placed “stamps” on the glassines of heroin and fentanyl that it sold to customers. Among the stamps the DTO used were “Heisenberg,” “Sleepless,” “Peace of Mind,” “Obsession,” “Fist with a Power Cord,” “Sold Out,” “Methadone,” “Sweet Dreams,” and “Hands Up.” From 2015 to June 2018, the DTO is estimated to have distributed more than 100 kilograms of heroin, much of it mixed with fentanyl.
Glassines marked with the DTO’s stamps were recovered at the scene of at least five suspected overdose deaths in and around the DTO’s Drug Territory. First, on September 11, 2017, an individual died of a suspected heroin overdose near the DTO’s Drug Territory, and a glassine marked with the stamp “Obsession” was recovered at the scene of the overdose death. Second, on September 18, 2017, an individual died of a suspected heroin overdose near the DTO’s Drug Territory, and a glassine marked with the stamp “Fist with a Power Cord” was recovered at the scene of the overdose death. Finally, between December 12, 2017, and on January 2, 2018, three different individuals died of suspected heroin overdoses in a building within the DTO’s Drug Territory. Glassines marked with the stamp “Hands Up” were recovered at the scene of each of these three deaths. Each time one of the DTO’s stamps was recovered at the scene of an overdose death, the DTO stopped using that stamp, and started using different stamps on the glassines of heroin and fentanyl that it distributed.
On June 5, 2018, law enforcement agents executed search warrants at several locations in the Bronx, New York, that were used by the DTO, and recovered, among other things, approximately three kilograms of heroin, approximately $300,000 in cash, and a loaded firearm.
* * *
HARTLEY, 35, SANDERS, 37, HECTOR SANCHEZ, 29, AARON CARTER, 40, BEASLEY, 36, JONATHAN SANCHEZ, 30, BARNETT, 21, BENITEZ, 29, RODRIGUEZ, 47, GREGORY CARTER, 35, RAY SANCHEZ, 30, TORRES, 36, DAVIES, 58, BROWN, 62, SIMON, 59, INGRAM, 55, and JASPER, 36, each of the Bronx, New York, and PALUMBO, 36, of Elizaville, New York, are each charged with one count of conspiring to distribute heroin and fentanyl, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI and NYPD, and thanked the Bronx County District Attorney’s Office for its assistance.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Michael K. Krouse, Stephanie Lake, and Robert B. Sobelman are in charge of the prosecution.
The charges contained in the Complaint and Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and Indictment, and the description of the Complaint and Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
4 June 2018
Warrensville Heights man sentenced to more than 16 years in prison for leading conspiracy that brought fentanyl, heroin and cocaine to Northeast Ohio from Chicago and New YorkRead the Press Release
A Warrensville Heights man was sentenced to more than 16 years in prison for helping lead a conspiracy that brought large amounts of fentanyl, heroin and cocaine into Greater Cleveland from Chicago and Yonkers, New York.
Alfonso Rodrigo, 37, was sentenced to 200 months in federal prison. He was one of nearly 20 people prosecuted as part of Operation Loaded Deck. Law enforcement seized 29 kilograms of cocaine, eight kilograms of heroin and one kilogram of fentanyl, as well as $350,000 and several firearms as part of the investigation.
Some of these conspirators had significant links to the Sinaloa cartel. Among the defendants sentenced thus far:
Ismael Acosta, 39, of Cleveland Heights, to 190 months in prison.
David Urrabazo Maldonado, 31, of Medera, California, to 120 months in prison.
Jonathan Stepp, 34, of Cleveland, to 108 months in prison.
Jose Hernandez, 57, of Chicago, to 57 months in prison.
The defendants conspired together from 2010 through 2016 to obtain fentanyl, heroin, cocaine and marijuana from suppliers in Chicago and Yonkers, N.Y. and then sell the drugs in Northeast Ohio.
Acosta obtained heroin from suppliers in Chicago. Jose Hernandez supplied vehicles with after-market trap compartments to transport hidden drugs and drug proceeds. The conspirators used a home on West 130th Street in Cleveland to store and distribute the drugs and drug money. The Rodrigos used a house on Maple Heights Boulevard in Maple Heights to store and distribute drugs and drug money, according to court documents.
“Cocoa plants don't grow in Cleveland and poppy plants don't grow in Parma," said Justin Herdman, U.S. Attorney for the Northern District of Ohio. “We increasingly see the Mexican cartels sending deadly narcotics into our region, and that was certainly true in this case.”
DEA Special Agent in Charge Timothy J. Plancon said: “The Drug Enforcement Administration’s Operation Loaded Deck exposed a network of violent drug cartel members who controlled a pipeline of cocaine and fentanyl from Mexico and Phoenix to Cleveland, along with several other major American cities including Detroit, Chicago, Atlanta and New York. The DEA, along with our federal, state, and local partners, has ruptured that pipeline to impede the flow of poison this organization was pushing onto our streets. This collaborative law enforcement effort sends a clear message that we have zero tolerance for drug dealers and their violence in northern Ohio. This investigation has demonstrated DEA’s resolve to dismantle criminal organizations such as this, and to reduce violent crimes and drug related activities in our community.”
“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs,” said Ryan Korner, IRS-Criminal Investigation Special Agent in Charge. “Without these ill-gotten gains, the traffickers could not finance their organizations. IRS-CI is committed to taking the profit away from the drug traffickers and putting those individuals in jail.”
This case is being prosecuted by Assistant U.S. Attorneys Robert F. Corts and Marisa Darden following an investigation by the Drug Enforcement Administration, the Ohio State Highway Patrol and the Internal Revenue Service – Criminal Investigations.
Vermont Man Sentenced to over Ten Years in Prison for Child Sexual OffensesRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced that Joseph Norko, 51, of Saint Johnsbury, Vermont, was sentenced on Friday to serve 121 months in prison for attempting to arrange sexual encounters with children.
According to court documents and statements made in court, Norko’s charges were based on two online undercover investigations. One investigation was conducted by the Portsmouth Police Department and one was conducted by the Lebanon Police Department. In July of 2017, the defendant responded to an online advertisement posted by a Portsmouth police officer purporting to offer sex with a 12-year-old girl. In September of 2017, he responded to an online advertisement posted by a Lebanon police officer purporting to be a 15-year-old girl. The defendant then traveled from Vermont to New Hampshire in order to engage in sexual contact with the person he thought was 15 years old.
Norko pleaded guilty to two counts of attempted online enticement and one count of interstate travel with intent to engage in illicit sexual activity on February 22, 2018. His prison sentence will be followed by ten years of supervised release.
“Protecting children from predators is an important priority of the U.S. Attorney’s Office,” said U.S. Attorney Murray. “Sadly, there are predators who use the anonymity of the Internet to locate and prey upon young victims. We will continue to work closely with our law enforcement partners to protect the safety of the children from those who would rob them of their innocence.”
“Online exploitation of children is one of the most disturbing crimes we investigate. It’s always very satisfying when our close coordination with our federal and state partners successfully brings the predators who engage in this behavior to justice,” said Peter C. Fitzhugh, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Rockingham County Attorney’s Office, Grafton County Attorney’s Office, Vermont State Police, the Lebanon Police Department, the Portsmouth Police Department, and the New Hampshire Internet Crimes Against Children Task Force, which includes members of several other police departments. The case was prosecuted by Assistant U.S. Attorney Georgiana L. Konesky.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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.
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