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1 June 2018
Native of Mexico Pleads Guilty to Illegally Re-Entering the United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Juan Felix Andres, 20, of Mexico, pleaded guilty to illegal reentry after deportation following conviction of an aggravated felony before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that on April 16, 2016, the defendant was convicted in Texas of aiding and abetting the transportation of illegal aliens for financial gain, an aggravated felony. Following that conviction, Andres was ordered removed to Mexico from the United States.
On February 27, 2018, while an order of removal was still in effect, the defendant was found in the United States at the Lewiston Bridge Port of Entry in Lewiston, NY. An automated scan of the defendant’s fingerprints were obtained for comparison and matched the fingerprints on file with the FBI and confirmed that Andres was the same person who was convicted in Texas. The defendant did not obtain the consent of the Attorney General of the United States or his successor, the Secretary for Homeland Security, to re-enter the United States.
Today’s plea is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
Sentencing is scheduled for September 7, 2018, at 12:30 p.m. before Judge Richard J. Arcara.
Native of Mexico Charged with Illegally Re-Entering the United States and Possessing Counterfeit DocumentsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Everardo Donoteo-Reyes, a/k/a, Alberto Ebarado Gutierrez-Reyes, 26, of Mexico, was charged by criminal complaint with possession of a counterfeit social security card and alien registration card, and illegal re-entry after deportation. The charges each carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that according to the complaint, in September 2016, Immigration and Customs Enforcement, Enforcement and Removal Operations (ERO), administratively arrested the defendant in Gretna, Louisiana and in October 2016, he was ordered removed from the United States. Upon his departure, Donoteo-Reyes was advised that he could not re-enter the United States without the permission of the United States Attorney General, or his Successor, the Secretary of Homeland Security.
On March 01, 2017, United States Border Patrol the defendant in the United States and administratively arrested him in Laredo, Texas. On March 03, 2017, Donoteo-Reyes pleaded guilty to unlawfully entering the United States and was sentenced to 15 days confinement. On March 15, 2017, the defendant was physically removed from the United States to Mexico. Donoteo-Reyes was once again advised that he could not re-enter the United States without permission.
On May 24, 2018, the defendant was arrested by the Wayne County Sheriff’s Office on New York State criminal charges. The sheriff’s office sent Donoteo-Reyes’s fingerprints to Immigration and Customs Enforcement (ICE). An immigration records check determined that the defendant has no valid immigration status and is again illegally present in the United States.
During the course of a missing person investigation, the Wayne County Sheriff's Office located fraudulent documents belonging Donoteo-Reyes, including a counterfeit alien registration card in the name "Alberto Gutierrez" and a photograph of the defendant. Donoteo-Reyes was also found to be in possession of a fraudulent social security card. According to the Department of Homeland Security, no such social security number exists.
The defendant will make an initial appearance on June 4, 2018, at 3:00 p.m. before U.S. District Judge Jonathan W. Feldman.
The complaint is the result of an investigation by agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Monmouth County, New Jersey, Man Sentenced to 10 Years in Prison for Illegally Possessing Firearm During Drive-By ShootingRead the Press Release
TRENTON, N.J. – An Asbury Park, New Jersey, man was sentenced today to 10 years in prison for being a felon in possession of a firearm while serving as the driver in a drive-by shooting in Asbury Park, U.S. Attorney Craig Carpenito announced.
Roosevelt Dante Harris, 39, of Asbury Park, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of being a felon in possession of a firearm. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Harris admitted that despite having one or more prior felony convictions in Monmouth County, he knowingly possessed a Taurus, model PT709 Slim, 9 mm pistol on Nov. 24, 2016, in Asbury Park. Harris admitted that three days earlier he accompanied another individual to a firearms dealer in South Carolina, where the other individual purchased three firearms –including the Taurus pistol that Harris possessed – on Harris’ behalf. Harris transported the three firearms from South Carolina to New Jersey.
Harris admitted that on Nov. 24, 2016, while he was driving a black minivan in Asbury Park, he possessed the Taurus pistol, which was located behind the glove compartment of the black minivan. Harris admitted that another individual shot a firearm out of the black minivan while Harris was driving.
In addition to the prison term, Judge Sheridan sentenced Harris to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge John B. Devito in Newark, New Jersey; officers of the Monmouth County Prosecutor’s Office, under the direction of Monmouth County Prosecutor Christopher J. Gramiccioni; and officers of the Asbury Park Police Department, under the direction of Deputy Chief David Kelso, with the investigation. U.S. Attorney Carpenito also thanked officers of the Lakewood Police Department, under the direction of Chief Gregory Meyer, for their assistance in the case.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Andrea D. Bergman Esq., Assistant Federal Public Defender, Trenton
Milan Man Sentenced to 84 Months Imprisonment for Defrauding Medicare, Medicaid and TricareRead the Press Release
Jackson, TN – Following his conviction at trial by a federal jury of conspiracy and wire fraud, Bryan Bailey, 39, of Milan, Tenn. was sentenced by Chief United States District Judge S. Thomas Anderson to 84 months imprisonment, followed by three years of supervised release, and a $200 special assessment. Bailey was also order to pay more than $1.9 million in restitution to Medicare, Medicaid and private insurance companies.
Bryan Bailey was convicted following more than three weeks of trial in February 2018 of both counts charging him in the indictment. His mother, Sandra Bailey, 67, of Jackson, was convicted of 16 counts, including conspiracy, health care fraud, and paying illegal kickbacks in connection with health care services. His father, Calvin Bailey, 67, of Jackson, was convicted of conspiracy. The jury returned guilty verdicts on all 17 counts alleged in the indictment.
U.S. Attorney D. Michael Dunavant said: "Dishonest criminals are using more creative and disturbing fraudulent schemes to victimize vulnerable citizens and the American taxpayers for their own selfish gain. This case represents our commitment to expose these fraudulent schemes, protect the integrity of the Medicaid system, hold offenders accountable for their dishonest criminal conduct, and to recover ill-gotten proceeds on behalf of the government. The U.S. Attorney’s Office is willing and able to go to any lengths in our pursuit of justice in healthcare fraud cases."
Evidence at trial revealed Sandra Bailey and Calvin Bailey sold durable medical equipment including power wheelchairs and back braces. From November 2009 to September 2011, they were both employed at Jaspan Medical Systems ("JMS"), a durable medical equipment company with an office in Jackson, Tenn. Durable medical equipment is designed for repeated use and legitimate medical purposes. Following their employment at JMS, the couple was employed by other medical supply companies in West Tennessee, Kentucky, and Mississippi. Calvin Bailey is also the former principal at Medina Elementary School in Medina, Tenn. Bryan Bailey, was the operations and sales manager at Jaspan from October 2009 to July 2013.
While employed at JMS, the Baileys began to market wheelchairs to patients and represented them as paid fully by Medicare, and at no cost to the patients. To market the equipment, the Baileys used an extensive network of illegally paid recruiters to find eligible patients. After finding the patients, Sandra and Bryan Bailey would forge and falsify documents to make it appear that the patients qualified for the equipment. They also enlisted a local physician and nurse practitioner to order the equipment without the required physical examinations to determine if the equipment was medically necessary. To facilitate this scheme, Sandra Bailey paid illegal kickbacks to the medical providers.
Numerous patients testified that Sandra Bailey offered the equipment at no cost, and that they never saw the doctor or nurse practitioner before the Baileys delivered the back braces and power wheelchairs. Many also testified that they never used the power wheelchairs, and that the power wheelchairs were too large to be used in their homes. Even though most of the patients could walk, drive vehicles, and care for themselves without the need for a power wheelchair, the Baileys would falsify medical records to make it appear that the patients were qualified. In order to qualify the patients to receive the equipment at no cost, Bryan Bailey falsified and directed others to falsify patients’ income and expenses to make it appear that they were indigent.
"Kickbacks pervert medical decision-making by encouraging health care providers to order things that patients do not need," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of the Inspector General in Atlanta. "This defendant pushed the sale of expensive power wheelchairs by paying patient recruiters and others which was a blatant violation of the law."
In 2010, Bryan Bailey expanded JMS’s sales into North Mississippi, and hired a sales representative named Dennis Sensing to sell power wheelchairs. Sensing paid illegal kickbacks to patient recruiters to find Medicare and Medicaid patients under the direction of Bryan Bailey. Bryan Bailey received sales commissions for the power wheelchairs sold by Sensing. In order to bill Medicare and Medicaid for the equipment, Sensing forged the signature of a nurse practitioner with Bryan Bailey’s knowledge and approval. Bryan Bailey directed Sensing to falsify patients’ income and expenses to make it appear that they were indigent. Sensing sent via facsimile the forged and falsified documents to Bryan Bailey, who caused the claims to be submitted for payment. Sensing, who previously had pleaded guilty to conspiracy to commit healthcare fraud and pay illegal kickbacks, testified in the government’s case.
During the time the Baileys worked at JMS and the other companies, they received more than $1.2 million in salary and sales commissions. Chief Judge Anderson found the 84-month sentence warranted because the American taxpayers were victimized by the fraudulent behavior of Bryan Bailey and the other defendants.
Sandra Bailey and Calvin Bailey are scheduled to be sentenced on August 3, 2018 before Chief Judge Anderson.
"Protecting taxpayer dollars is the heartbeat of the Tennessee Bureau of Investigation’s Medicaid Fraud Control Unit," said TBI Acting Director Jason Locke. "Working alongside our local, state, and federal partners, we will continue to pursue those who are defrauding the Medicaid system and taking advantage of vulnerable Tennesseans in need of these services."
"Health care fraud drives up health care costs, wastes taxpayer money, undermines the Medicare, Medicaid and Tricare programs, and sadly, has infected every facet of our health care system," said Michael T. Gavin, Special Agent in Charge of the Memphis Field Office of the Federal Bureau of Investigation. "Health care fraud is a crime that hurts all of us and each dollar taken from programs that help the sick and the suffering is one dollar too many. The FBI is committed to fighting fraud and protecting taxpayer dollars, and with our law enforcement partners we will continue to identify and investigate the criminals who, driven by greed, target the systems each of us depends on in our most vulnerable moments."
"We always appreciate the opportunity to work with multi-state law enforcement agencies to combat healthcare fraud and protect our citizens’ resources and tax dollars," said Jim Hood, Attorney General of Mississippi.
This investigation was conducted by the U.S. Department of Health and Human Services - Office of the Inspector General, the Federal Bureau of Investigation, the Tennessee Bureau of Investigation, and the Attorney General’s Office for Mississippi.
Assistant U.S. Attorneys Stuart Canale and Matt Wilson prosecuted this case on behalf of the government.
Mexican Man Pleads Guilty to Illegal Use of a Social Security NumberRead the Press Release
ADRIAN CONTRERAS-VARELAS, age 18, a citizen of Mexico pleaded guilty today to a one-count indictment for illegal use of a Social Security number, in violation of Title 42, United States Code, Section 408(a)(7)(B).
According to court documents, CONTRERAS-VARELAS used a Social Security number, which was not assigned to him by the Social Security Administration, to register for a safety training course that he was required to complete before he could work for an insulation contractor.
CONTRERAS-VARELAS’s sentencing immediately followed his guilty plea. United States District Judge Jane Triche Milazzo sentenced him to time served.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Marijuana Dealer Sentenced to Federal Prison for Possessing Sawed-Off ShotgunRead the Press Release
A Waterloo man who illegally possessed a sawed-off shotgun was sentenced on May 31, 2018, to more than two years in federal prison.
Traeves Dashonn Bowers, age 33, from Waterloo, Iowa, received the prison term after a December 27, 2017, guilty plea to possessing an unregistered sawed-off shotgun.
In a plea agreement, Bowers admitted that during March 2017, he was selling marijuana from his home on Shilliam Avenue in Waterloo. Waterloo Police searched his Shilliam Avenue residence that month and found over 26 grams of marijuana, a sawed-off shotgun, and a rifle.
Bowers was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Bowers was sentenced to 30 months’ imprisonment. He must also serve a two‑year term of supervised release after the prison term. There is no parole in the federal system.
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.
Bowers is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department and was prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-02081-LTS.
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Managing Partner and Principal of Accounting Firm Charged with Aiding and Abetting Union Embezzlement Scheme and Making False Filings with the U.S. Department of LaborRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Michael C. Mikulka, Special Agent-in-Charge, New York Region, U.S. Department of Labor (“DOL”) Office of Inspector General, announced today the arrests of SALVATORE ARMAO, the founder and managing partner of an accounting firm (the “Firm”), and KAREN AUER, a principal at the Firm, for aiding and abetting the embezzlement of over $100,000 from a labor union (the “Union”) and its employee welfare benefit plan (the “Plan”), and for making false filings with DOL to conceal the embezzlement scheme. AUER was also charged with making false statements to a DOL agent during the investigation of the embezzlement scheme. Both defendants surrendered this morning in Manhattan and are expected be presented today before U.S. Magistrate Judge Sarah Netburn.
U.S. Attorney Geoffrey S. Berman said: “Salvatore Armao and Karen Auer are professional accountants who allegedly facilitated and concealed a long-running union embezzlement scheme by knowingly submitting false filings with the Department of Labor and the Internal Revenue Service. Accountants and auditors like Armao and Auer are supposed to serve as safeguards against labor fraud, not facilitate it.”
DOL-OIG Special Agent-in-Charge Michael C. Mikulka said: “The Office of Inspector General is responsible for identifying and reducing labor racketeering and corruption in employee benefit plans, labor-management relations, and internal union affairs. We will continue to work with our law enforcement partners to investigate these types of allegations.”
According to the allegations in the Complaint[1]:
From at least in or about 2010 through in or about 2014, the president of the Union, who also served as a trustee of the Plan (the “President-Trustee”), repeatedly used Union funds to pay for his personal expenses, including payments for spa treatments, a gym membership, a second car, medical charges, unrelated union dues for an actors’ union, purchases from retail establishments, payments to personal credit cards, and ATM cash withdrawals. The President-Trustee used his Union credit card to pay for personal expenses and then “reimbursed” the Union with funds transferred from the Plan. In total, the President-Trustee embezzled over $100,000 from the Union over approximately three years.
During the period of the embezzlement, the Firm served as the accountant and auditor for the Union and the Plan. To facilitate and conceal the President-Trustee’s embezzlement, ARMAO and AUER falsely classified as “loans” the personal expenses for which the President-Trustee paid using Union and Plan funds in accounting records and on DOL filings for the Union. ARMAO falsely classified the President-Trustee’s personal expenses as loans for at least five years, while AUER did so for at least one year. ARMAO and AUER also provided false information on DOL filings for the Plan, concealing from DOL the President-Trustee’s prohibited transfers of tens of thousands of dollars from the Plan to the Union which, in turn, facilitated and concealed the President-Trustee’s use of Union funds to pay his personal expenses. ARMAO repeatedly caused these false filings to be made to DOL despite being a Certified Fraud Examiner.
During the DOL’s investigation of the embezzlement scheme, ARMAO and AUER were interviewed by DOL. ARMAO admitted that he was aware of the President-Trustee’s use of Union assets to pay for personal expenses based upon his review of records that showed that the President-Trustee used Union funds to pay for his family vacations and his wife’s car payments, and then used the Plan to reimburse the Union. During her interview, AUER lied about a false response on a DOL form that AUER and ARMAO caused to be filed with the DOL.
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SALVATORE ARMAO, 64, of Howard Beach, New York, and KAREN AUER, 47, of Bethpage, New York, are each charged with one count of aiding and abetting embezzlement from a labor organization, one count of conspiracy to make false statements in employee benefit plan records and reports, and one count of making false statements in employee benefit plan records and reports. AUER is also charged with making false statements to a federal agent. Each of the four counts carries a maximum sentence of five years in prison. The statutory maximum sentences 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 thanked the DOL’s Office of Inspector General, Employee Benefits Security Administration, Office of Chief Accountant, and Office of Labor-Management Standards for their outstanding work on this investigation. Mr. Berman also expressed gratitude to the Federal Bureau of Investigation and the Department of Justice’s Labor-Management Racketeering Unit of the Organized Crime and Gang Section for their assistance. Mr. Berman added that the investigation is continuing.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
The charges contained in the Complaint 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 the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Man Sentenced to Prison for Child PornographyRead the Press Release
ALEXANDRIA, Va. – A Fairfax man was sentenced today to five years in prison for downloading videos depicting the sexual abuse of children.
According to court documents, Gabriel Lin, 25, used a peer-to-peer file-sharing network to search for and download child pornography videos. Lin also stored more than 600 videos and 10,000 images of children being sexually abused on electronic devices in his residence. Some of this material depicted children as young as infants and toddlers.
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 U.S. Attorneys’ Offices and the 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.justice.gov/psc.
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 sentencing by U.S. District Judge Liam O’Grady. Special Assistant U.S. Attorney Kyle P. Reynolds prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-278.
Man Admits to String of Armed Robberies in Hampton RoadsRead the Press Release
NORFOLK, Va. – A Norfolk man pleaded guilty yesterday to armed robbery and firearms charges in relation to his participation in several armed robberies in Hampton Roads.
According to court documents, Lorenzo E. Roscoe, 30, admitted to committing armed robberies of two Dollar General stores, two 7-Eleven stores and one Family Dollar store located in Norfolk, Chesapeake and Portsmouth.
Roscoe pleaded guilty to Hobbs Act robbery and brandishing a firearm during a robbery. He faces a mandatory minimum sentence of 7 years in prison and a maximum sentence of life when sentenced on September 6. 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 Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Assistant U.S. Attorney William D. Muhr is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-57.
Maine Man Pleads Guilty to Resisting Federal OfficerRead the Press Release
BOSTON – A Maine man pleaded guilty today in federal court in Springfield to resisting a federal officer.
Thomas G. Walker, 43, of Pemaquid, Maine, pleaded guilty to one count of resisting a federal officer. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Dec. 12, 2018. Walker has been in custody since his arrest on June 30, 2017, for his role in a federal drug conspiracy.
On July 24, 2017, Walker was brought to federal court in Worcester for a hearing to determine whether he should be held in custody while facing a pending drug charge. Walker was brought into the courtroom by two Deputy U.S. Marshals (“Marshals”) and a corrections officer. Walker’s handcuffs were removed, and he was seated next to his attorneys. While waiting for the judge, Walker turned around and began speaking with a relative in the courtroom gallery. The Marshals directed Walker to face forward and stop speaking with anyone in the gallery. Walker stood up and challenged the Marshals, saying: “Who the ** are you?” and “What the ** are you going to do to me?” The Marshals and the corrections officer approached Walker to restrain him. Walker swung at one of the Marshals and missed. He swung a second time with his open hand and hit the Marshal in the face. Walker’s resistance resulted in all four individuals going down to the floor in a scuffle. Eventually the Marshals, the officer, and a courtroom security officer were able to gain control of Walker, handcuff him, and remove him from the courtroom.
The charge provides for a sentence of no greater than eight years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; U.S. Marshal John Gibbons for the District of Massachusetts; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.
Mableton man charged in “sextortion” of young girlsRead the Press Release
ATLANTA - Benjamin Jenkins, a/k/a “Rei,” a/k/a “Reithe8th,” a/k/a “Dani Domo,” has been arraigned on federal charges for producing and distributing child pornography after he allegedly lured more than 100 young girls into sending him explicit photographs and videos. In retaliation against the girls who opposed his demands, Jenkins made violent threats against the victims, posted pornographic pictures of them on social media, and sent sexually-explicit photos to their friends and family.
“Jenkins allegedly used various social media sites to lure young girls into sending him child pornography,” said U.S. Attorney Byung J. “BJay” Pak. “He is accused of acting as a predator who terrorized his young victims by threatening to post their photographs online, unless they sent him more sexually-explicit videos and pictures. Parents and children should continually be aware of the masked dangers predators pose on social media.”
“Homeland Security Investigations will continue to fight child sexual exploitation as one of its highest priorities and will track any individual who chooses to prey on the most vulnerable in our society with every tool at our disposal,” said Atlanta Homeland Security Investigations Special Agent in Charge Nick S. Annan. “This case should also serve as a reminder to all that online predators are always searching for new victims.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Beginning in 2015, Jenkins allegedly used different identities to contact girls between the ages of 12 and 16 years. To lure the girls, he would send them a pornographic photo and persuade them to send a sexually-explicit photo of themselves in return. After a girl sent him a photo, Jenkins would threaten her into sending him more photos and videos. Jenkins instructed the girls on what body parts to show, what poses to make, and what objects to insert into their bodies. Jenkins further humiliated his victims by coercing them to send him videos of them drinking their own urine or licking toilets. He also forced his victims to watch him masturbate.
When a girl blocked Jenkins online, he sent her explicit photos to her parents and friends. On one occasion, he posted a compromising photo of a girl to her high school Twitter page. Jenkins also posted his victim’s nude photos and contact information online with messages for men to contact the girls directly for more photos. In total, Jenkins sextorted more than 100 girls.
Benjamin Jenkins, a/k/a “Rei,” a/k/a “Reithe8th,” a/k/a “Dani Domo,” 23, of Mableton, Georgia was charged with 13 counts of producing child pornography and five counts of distributing child pornography. Jenkins was indicted by a federal grand jury on May 23, 2018. The court ordered that Jenkins be kept in custody until trial.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Division.
Assistant U.S. Attorneys Paul R. Jones and L. Skye Davis are prosecuting the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Louisiana Contractor Pleads Guilty to Filing a False Tax ReturnRead the Press Release
The owner of general contracting business pleaded guilty yesterday to filing a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Duane A. Evans, for the Eastern District of Louisiana.
According to court documents, Wade Ybarzabal, of Mandeville, Louisiana, owned a general contracting business, Ybarzabal Contractors LLC. On his 2012 tax return, Ybarzabal underreported his business’s gross receipts by more than $475,000, resulting in an additional tax liability of more than $160,000. Ybarzabal also underreported his business’ gross receipts on his 2013 and 2014 tax returns. The total tax loss resulting from Ybarzabal’s fraudulent conduct for is more than $250,000.
Sentencing is scheduled for August 29, 2018. Ybarzabal faces a statutory maximum sentence of three years in prison. He also faces a term of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Duane A. Evans commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Edward J. Rivera and Tax Division Trial Attorney Grace E. Albinson, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Kansas Tax Return Preparer Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
A Holcomb, Kansas tax return preparer was sentenced yesterday to 21 months in prison for filing a fraudulent income tax return and aiding and assisting in the preparation of fraudulent tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Stephen R. McAllister for the District of Kansas.
According to documents and information provided to the court, Marcelino Almaraz owned Accounting Services, a business that provided tax preparation services. Almaraz fraudulently sought to obtain refunds for individuals by including false filing statuses such as head of household and adding phony dependents in an effort to trigger and inflate child tax credits. Almaraz also falsified his own income tax returns for 2010 and 2011 by underreporting his income.
In addition to the term of imprisonment, Chief U.S. District Court Judge Julie A. Robinson ordered Almaraz to serve one year of supervised release and to pay $397,552 in restitution to the Internal Revenue Service.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney McAllister commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney John T. Mulcahy and Assistant U.S. Attorney Jabari Wamble, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Husband and Wife Charged with Fraud Scheme Relating to Nursing Services at A Bronx-Based HospitalRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced the unsealing of a Complaint charging BETSY MONTALVO and EDWARD GONZALEZ with a wire fraud conspiracy, wire fraud, and aggravated identity theft in connection with a fraudulent scheme to provide of nursing services at a Bronx-based hospital. Both defendants were arrested yesterday in New York and presented before United States Magistrate Judge Sarah Netburn in Manhattan federal court.
According to the allegations in the Complaint[1]:
MONTALVO and GONZALEZ were principals of a Bronx-based nursing company (“Nursing Company-1”) that provided temporary nursing services to client companies in the New York City area. From March 2015 to March 2017, one of Nursing Company-1’s clients was a Bronx-based hospital (“Hospital-1”), and Nursing Company-1 provided and scheduled registered and licensed practical nurses on a temporary basis to fill the staffing needs of Hospital-1.
As alleged in the Complaint, in May 2015, a factoring company (“Factoring Company-1”) entered into a contractual relationship with Nursing Company-1 to purchase Nursing Company-1’s accounts receivable (invoices) owed to it by Hospital-1. The Complaint alleges that MONTALVO, GONZALEZ, and a co-conspirator not named as a defendant in the Complaint engaged in a scheme in which they presented to Factoring Company-1 false, fraudulent, and inflated invoices that did not reflect the nursing services for Hospital-1 that had been performed by Nursing Company-1. In some instances, the identities of nurses who performed no services for Nursing Company-1 or Hospital-1 were listed on the fraudulent invoices. Relying on the fraudulent invoices, Factoring Company-1 paid Nursing Company-1 a percentage of the fraudulent invoices.
The Complaint alleges that the attempted losses associated with the fraud scheme are $664,761.
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MONTALVO, 49, and GONZALEZ, 47, both of Bronx, New York, are each charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years; one count of wire fraud, which carries a maximum sentence of 20 years; and one count of aggravated identity theft, which carries a mandatory minimum sentence of two years. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the Special Agents with the United States Attorney’s Office for the Southern District of New York.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Aline R. Flodr and Nicholas W. Chiuchiolo are in charge of the prosecution.
The charges contained in the Complaint 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 the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Howard Hoisington Sentenced to 24 Years in Prison in Fatal Arson CaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Howard Hoisington, age 34, formerly of Berlin, Vermont was sentenced on May 31, 2018 on charges of arson with death resulting and conspiracy to commit robbery stemming from the fatal arson that occurred in Northfield, Vermont in December 2015. United States District Judge Christina Reiss sentenced Hoisington to a 24-year term of incarceration, followed by five years of supervised release. Hoisington was also ordered to pay restitution to the victims of his offenses in the amount of $620,025.92.
As described at Hoisington’s sentencing and in court records, in the fall of 2015, Howard Hoisington, Jonathan Zampieri, Tammy Wilder, Kevin Atwood, and Kim Hoisington committed a series of robberies of drug dealers in the Washington County area of Vermont. Some of these robberies involved a scheme of dousing a person selling drugs with gasoline and threatening them with a lighter to rob them of their drugs. The last of these robberies resulted in a fire that destroyed a building in Northfield and killed innocent bystander Brittany Burt.
As also described at Hoisington’s sentencing and in court records, on December 14, 2015, Howard Hoisington, Zampieri, Tammy Wilder, Kim Hoisington, and Amanda Wilder drove in Zampieri’s vehicle to pick up Atwood in Montpelier. They all drove to the Cumberland Farms in Northfield where Zampieri filled two mason jars with gasoline. From there, the group drove to the apartment of Efren Serrano on Union Street in Northfield, Vermont, from whom they had arranged to purchase crack cocaine. Zampieri, Howard Hoisington, and Atwood went to Serrano’s apartment and kicked in the front door. They found Serrano and Serrano’s girlfriend, Brittany Burt, in the bedroom. Serrano and Burt were doused with gasoline and the men demanded Serrano’s drugs. When Serrano did not respond, Zampieri pulled out a lighter. The lighter went off, igniting the gasoline vapors and causing the room to burst into flames. Zampieri, Howard Hoisington, and Atwood fled the building. At some point, Serrano was able to run from the building on fire. Serrano sustained life threatening injuries, but he survived. Brittany Burt could not escape the building. She died on the bedroom floor.
Howard Hoisington’s co-defendants, Jonathan Zampieri, Tammy Wilder, Kim Hoisington, and Richard Hoisington have all pleaded guilty to various charges. They await sentencing.
This case provides an example of the United States Attorney’s Office Violent Crime Initiative, aimed at pursuing federal prosecutions involving the intersection of drug trafficking and violence. United States Attorney Christina Nolan commended the efforts of Vermont State Police, Vermont Drug Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as the Northfield Police Department, Barre City Police Department, and Berlin Police Department. The United States Attorney’s Office worked in partnership with the Washington County State’s Attorney Scott William to investigate and resolve this important matter.
United States Attorney Nolan added, “To describe this crime as senseless and abhorrent would be an understatement. It is a stark example of the horrific violence that too often arises from the trafficking of crack cocaine and other dangerous drugs. Federal prosecutors will work tirelessly with our federal, state, and local law enforcement partners to demonstrate zero tolerance for crimes of such depravity. Resolution and justice for the victims and their families was achieved through the collaborative efforts of our federal, state, and local investigators, and through the teamwork of state and federal prosecutors. We will continue to come together to achieve justice for victims, and peace and security for Vermonters. There is no place for such horrific violence in our state and our charging priorities will so reflect.”
ATF Assistant Special Agent in Charge Lawrence Panetta said, “Arson is a crime of extreme violence that puts the lives of the public and first responders in grave danger. ATF is committed with our local, state, and federal public safety partners to ensure our communities remain free from the dangerous acts arsonists commit and utilize all the necessary resources to bring these individuals to justice.”
“Howard Hoisington’s sentencing is an important first step in resolving this case and bringing closure to the Burt family and the other victims of these crimes,” added Lieutenant Todd Baxter of the Vermont State Police. “VSP remains committed to preventing and investigating violent crime throughout the State of Vermont, and bringing those who commit violent crimes to justice.”
Howard Hoisington is represented by Steven Barth and Elizabeth Quinn of the Federal Public Defender’s Office. The United States is represented by AUSAs Paul Van de Graaf and John Boscia.
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.
Hot Springs Man Sentenced to Twenty Years for Attempted Enticement of Minor Using InternetRead the Press Release
United States Attorney Ron Parsons announced that a Hot Springs, South Dakota, man convicted of Attempted Enticement of a Minor Using the Internet was sentenced on May 25, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.
James Sides, age 32, was sentenced to 20 years of imprisonment and 20 years of supervised release and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Sides was charged on March 21, 2017. The charge relates to Sides communicating with someone he believed to be the father of a 14 year-old girl, who was in fact an undercover agent, and attempting to arrange a meeting in order to engage in sexual contact with the minor.
The case was investigated by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Honduran Man Who Planned to Detonate Explosive at Miami Mall Sentenced to 210 Months for Attempting to Provide Material Support to ISISRead the Press Release
Vicente Adolfo Solano, 53, a citizen of Honduras residing in Miami, was sentenced to 210 months in prison, to be followed by a lifetime of supervised release, for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, after planning to detonate an explosive device at a Miami mall. Solano pleaded guilty on March 14, 2018.
U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Assistant Attorney General for National Security John C. Demers, and Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office made the announcement after sentencing by U.S. District Judge Paul C. Huck.
“Any individual who plots to support a foreign terrorist organization puts our local community at risk and this threat remains a top priority for our U.S. Attorney’s Office and our law enforcement partners,” stated U.S. Attorney Greenberg. “Today’s sentence speaks to those who harbor extremist ideals – your terroristic agenda will be thwarted and your punishment of years in prison will be your only lasting legacy.”
“The efforts of the dedicated women and men of the FBI and the South Florida Joint Terrorism Task Force have kept the people of Miami safe from this ISIS supporter and ensured Solano will go to prison,” said Assistant Attorney General Demers. “I am grateful for our law enforcement partners, and I applaud our prosecutors for today’s successful outcome and the message it sends: we will not tolerate threats to our country or its people.”
"Solano dreamed of detonating an explosive device in a crowded Miami area mall, but he was denied his terroristic aspirations by the outstanding work and team effort of the South Florida Joint Terrorism Task Force,” said Special Agent in Charge Lasky. “This is a job well done by a group of professionals who must remain eternally vigilant.”
According to the stipulated factual basis filed with the Court, in early 2017, Solano told an individual, who later became a Confidential Human Source (CHS) for the government, that he was upset with the United States and wanted to conduct an attack in Miami. Later, Solano told this CHS that he wanted to join ISIS.
Solano planned to place and detonate an explosive device in a crowded area of a popular Miami mall. Solano discussed his plot with the CHS and two undercover FBI employees. According to the complaint, Solano provided three videos to the CHS, in which Solano makes pro-ISIS statements and expresses anti-U.S. sentiments. Just prior to his arrest, Solano took possession of what he believed was an explosive device, took steps to arm it, and walked toward a mall entrance in order to carry out his attack. Unbeknownst to Solano, the device was inert and did not pose a risk to the public. Solano was taken into custody prior to entering the Mall.
Judge Huck imposed a sentence below the statutory maximum recommended by the advisory sentencing guidelines and advocated by the government, noting that the defendant is currently in removal proceedings and will be returned to his native country of Honduras following his prison term. Solano had been residing in the United States under Temporary Protected Status. His protected status has since been revoked.
Mr. Greenberg commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force. This case was prosecuted by Assistant U.S. Attorney Karen E. Gilbert for the Southern District of Florida and Trial Attorney Jolie Zimmerman of the National Security Division’s Counterterrorism Section.
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.
Honduran Man Who Planned to Detonate Explosive at Miami Mall Sentenced to 210 Months for Attempting to Provide Material Support to ISISRead the Press Release
Vicente Adolfo Solano, 53, a citizen of Honduras residing in Miami, was sentenced to 210 months in prison, to be followed by a lifetime of supervised release, for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, after planning to detonate an explosive device at a Miami mall. Solano pleaded guilty on March 14.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, and Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office made the announcement after sentencing by U.S. District Judge Paul C. Huck.
“The efforts of the dedicated women and men of the FBI and the South Florida Joint Terrorism Task Force have kept the people of Miami safe from this ISIS supporter and ensured Solano will go to prison,” said Assistant Attorney General Demers. “I am grateful for our law enforcement partners, and I applaud our prosecutors for today’s successful outcome and the message it sends: we will not tolerate threats to our country or its people.”
“Any individual who plots to support a foreign terrorist organization puts our local community at risk and this threat remains a top priority for our U.S. Attorney’s Office and our law enforcement partners,” stated U.S. Attorney Greenberg. “Today’s sentence speaks to those who harbor extremist ideals – your terroristic agenda will be thwarted and your punishment of years in prison will be your only lasting legacy.”
“Solano dreamed of detonating an explosive device in a crowded Miami area mall, but he was denied his terroristic aspirations by the outstanding work and team effort of the South Florida Joint Terrorism Task Force,” said Special Agent in Charge Lasky. “This is a job well done by a group of professionals who must remain eternally vigilant.”
According to the stipulated factual basis filed with the Court, in early 2017, Solano told an individual, who later became a Confidential Human Source (CHS) for the government, that he was upset with the United States and wanted to conduct an attack in Miami. Later, Solano told this CHS that he wanted to join ISIS.
Solano planned to place and detonate an explosive device in a crowded area of a popular Miami mall. Solano discussed his plot with the CHS and two undercover FBI employees. According to the complaint, Solano provided three videos to the CHS, in which Solano makes pro-ISIS statements and expresses anti-U.S. sentiments. Just prior to his arrest, Solano took possession of what he believed was an explosive device, took steps to arm it, and walked toward a mall entrance in order to carry out his attack. Unbeknownst to Solano, the device was inert and did not pose a risk to the public. Solano was taken into custody prior to entering the Mall.
Judge Huck imposed a sentence below the statutory maximum recommended by the advisory sentencing guidelines and advocated by the government, noting that the defendant is currently in removal proceedings and will be returned to his native country of Honduras following his prison term. Solano had been residing in the United States under Temporary Protected Status. His protected status has since been revoked.
Mr. Demers and Mr. Greenberg commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force. This case was prosecuted by Assistant U.S. Attorney Karen E. Gilbert for the Southern District of Florida and Trial Attorney Jolie Zimmerman of the National Security Division’s Counterterrorism Section.
Four Years in Federal Prison for Corson County Man Convicted of Domestic Assault by an Habitual Offender and Tampering with VictimRead the Press Release
United States Attorney Ron Parsons announced today that a Corson County, SD, man was sentenced to 47 months of imprisonment and 3 years of supervised release by U.S. District Judge Roberto A. Lange. Alexander James Oka was sentenced to federal prison following his convictions by a federal jury in Aberdeen, SD, for Domestic Assault by an Habitual Offender and for Tampering with a Victim. Oka also served four additional months in tribal custody.
According to court documents and evidence produced at trial, on July 5, 2017, Oka unlawfully committed a domestic assault upon the victim, when at the time of the domestic assault, Oka had a final conviction of at least two separate prior occasions, for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse and intimate partner. During this assault, Oka smacked the victim’s head and then kicked the victim in the back while she was not looking and while she was feeding the baby she shares with Oka. The kick caused the victim significant pain and bodily injury. After being arrested for the assault, Oka sent a letter from jail to the victim instructing her not to cooperate and not to show-up for court proceedings. Oka had been previously convicted in multiple cases of domestic abuse. These prior convictions took place in tribal and federal court.
The investigation was conducted by the Bureau of Indian Affairs-Office of Justice Services. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Oka was immediately remanded to custody to continue serving his sentence.
Fort Collins Women Sentenced for Conspiring to Distribute Fentanyl Resulting in Three Overdose DeathsRead the Press Release
DENVER – Chelsea Leonowicz, 28, of Fort Collins, Colorado, was sentenced on today’s date to serve 100 months in federal prison following her August 23, 2017 entry of a guilty plea to Conspiracy to Distribute Fentanyl, a Schedule II Controlled Substance, the use of which resulted in death. The proceedings were held before U.S. District Judge Christine M. Arguello. Leonowicz’ guilty plea followed a February 2017 indictment with co-conspirator Jessica Rud, 29, also of Fort Collins, Colorado. Rud previously pled guilty to that same charge. In February of this year, she was sentenced to serve 121 months in the Federal Bureau of Prisons. Both sentences will be followed by a five-year term of federal supervised release.
Court documents indicate that fentanyl distributed by the co-conspirators resulted in the overdose death of one individual in Fort Collins on December 1, 2016. Days later, on December 3, 2016, two more individuals overdosed and died in Loveland, Colorado as a result of the continued distribution of that substance by Rud and Leonowicz. Although the drug was sold as “White China” heroin, in actuality it was almost 100% pure fentanyl.
Following their respective sentencing hearings, both defendants were remanded into the custody of the U.S. Marshal’s Service.
The investigation in this case was conducted by the Northern Colorado Drug Task Force, the Fort Collins Police Services (FCPS), the Loveland Police Department (LPD) and the Fort Collins Resident Agency of the Federal Bureau of Investigation. The prosecution was handled by Julia Martinez and Bradley W. Giles, Assistant U.S. Attorneys, District of Colorado, Denver.
Former Seattle Resident Sentenced to Prison for use of ‘Molotov Cocktail’ at May Day 2016 ProtestRead the Press Release
A former Seattle resident was sentenced today in U.S. District Court in Seattle to 37 months in prison for unlawful possession of a destructive device, in particular, for making and throwing bottles filled with gasoline at police officers on May 1, 2016, announced U.S. Attorney Annette L. Hayes. WIL CASEY FLOYD, 33, of Elkhart Lake, Wisconsin, was arrested in April 2017, after a lengthy investigation that linked him to a so-called ‘Black Bloc’ of protestors who threw unlit incendiary devices at Seattle Police during a May Day protest. At the sentencing hearing Chief U.S. District Judge Ricardo S. Martinez said it was an extremely serious crime. “Throwing gasoline filled bottles during a protest – there are all sorts of people out there, old people, young people … it could have caused serious injury or death.”
“This prosecution sends a clear message – we will not tolerate attacks on the women and men in law enforcement who do the hard work of keeping us all safe,” said U.S. Attorney Annette L. Hayes. “After all, the SPD officer who was injured by the defendant was protecting our cherished First Amendment rights. No matter the disguise – black bloc or otherwise – we will identify and hold to account those who cross the line from peaceful protest to criminal assault.”
According to the plea agreement and other records in the case, FLOYD went online to research building Molotov cocktails. He purchased the necessary supplies and constructed six of the explosive devices using beer bottles. He placed the bottles filled with gasoline in a black bag. FLOYD dressed in black, wore a black hood and a gas mask and joined the protest on the evening of May 1, 2016. FLOYD threw five of the unlit destructive devices at Seattle Police Officers. One of the Molotov cocktails thrown at police shattered at the feet of an officer and ignited his trousers when a flash-bang grenade went off. The officer suffered burns to his leg. FLOYD dropped the bag containing one remaining bottle of gasoline and changed his clothes and appearance before police could arrest him.
The investigation into FLOYD’s communications revealed that nearly two months prior to May Day, on March 8, 2016, Floyd sent a text message stating, “Kill them all with fire,” referring to SPD officers. Following the May Day attack FLOYD posted remarks online, ridiculing images of injured Seattle Police who were treated for injuries caused by “black bloc’ protestors.
In court today, FLOYD said that he had gone along with a group of people, and “realized it was a mistake, but there was no turning back… I never intended anyone to get hurt…. I’ll never do anything like this again.”
Chief Judge Martinez told FLOYD that “this country was founded by protest, it’s as American as apple pie… but there are limits, there are rules of law.” In addition to the prison time, Chief Judge Martinez imposed three years of supervised release following prison with 100 hours of community service to be completed during the first year of his release.
The case was investigated by the FBI’s Joint Terrorism Task Force and the Seattle Police Department, both through its membership on the JTTF and with additional investigative groups.
The case is being prosecuted by Assistant United States Attorneys Todd Greenberg and Tom Woods.
Former Roseville Developer Sentenced to over 4 Years in Prison for $22 Million FraudRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Abolghasseni “Abe” Alizadeh, 59, of Granite Bay, today to four years and eight months in prison, U.S. Attorney McGregor W. Scott announced. Alizadeh was also ordered to pay $15,879,945 in restitution to the victims of his crimes.
On January 12, 2018, Alizadeh pleaded guilty to wire fraud, bank fraud and making false statements to a federally insured financial institution.
According to court documents, Alizadeh, a Sacramento-area commercial real estate developer, restauranteur and owner of Kobra Properties, came up with a scheme to fraudulently purchase land that he planned to develop. Banks usually loan up to 60 to 65 percent of the loan to-value ratio (LTV) on undeveloped commercial property. (LTV ratio is the comparison between the amount of the loan and the value of the property.) To circumvent the banks and fraudulently get a higher level of financing, Alizadeh submitted altered purchase contracts to the banks that greatly inflated the purported purchase price. The banks, which competed for Alizadeh’s business, were unaware that the purchase prices were inflated and sometimes loaned well in excess of the loan-to-value ratio. By concealing the true purchase price from the banks, Alizadeh received substantial amounts of cash, sometimes millions of dollars, at the close of escrow and avoided making the full down payment or, in some instances, any down payment.
Alizadeh was assisted in this scheme by co-defendant Mary Sue Weaver, 64, currently of Scottsdale, Arizona and formerly of Lincoln, California, who was employed at a local title company. According to the plea agreement, Alizadeh would write checks for the down payment, but because he lacked funds to cover the checks, he would call Weaver and ask her to delay depositing the checks until after escrow closed. Once escrow closed, Weaver disbursed funds from the title company’s escrow trust account to Kobra Properties. Kobra Properties then used those funds to cover its down payment and other costs. In this way, it appeared as though Alizadeh was making a substantial down payment when in fact he was not.
On April 29, 2005, Alizadeh submitted a fraudulent purchase contract to Central Pacific Bank, which induced the bank to lend him nearly $4 million for the purchase of 10.3 acres of property. This loan represented over 96 percent loan-to-value ratio. Similarly, on October 21, 2005, Alizadeh received over $22 million in funding and loans to purchase the Turtle Island property, when in actuality, the original purchase price was $10 million. In March 2006, Alizadeh also falsely claimed to Bank of Sacramento that he was paying $36 per square foot for a piece of property where he intended to build a TGI Friday’s restaurant. In reality, Alizadeh was paying only $21 per square foot. This resulted in a $650,000 inflation of the true purchase price. Alizadeh’s entire scheme, involving no fewer than six properties in the Sacramento area, resulted in a loss to various financial institutions of over $22 million.
“The defendant used his reputation as a local business leader to perpetrate a complex fraud scheme to enrich himself at the expense of others,” stated U.S. Attorney Scott. “The U.S. Attorney’s Office will continue to work diligently with its law enforcement partners to expose schemes like this and bring criminals like the defendant to justice.”
“The scope of the fraud is staggering,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “As a well-known real-estate developer, title companies and banks competed for Mr. Alizadeh’s business. He submitted altered purchase contracts that greatly inflated the purchase price. This scheme cost financial institutions over $22 million. While this sentence cannot reverse the damage caused by Alizadeh and his co-defendant, it highlights the ongoing commitment of IRS-CI to hold accountable those involved in these types of crimes.”
“Today’s sentencing holds defendant Alizadeh accountable for causing more than $22 million in losses to the financial institutions, by corruptly inflating the value of property to obtain millions of dollars in fraudulent bank loans,” stated FDIC Inspector General Jay N. Lerner. “This case is a powerful example of law enforcement cooperation to combat fraud and bring such swindlers to justice.”
This case is the product of an investigation by the Federal Bureau of Investigation, the IRS Criminal Investigation, and the Federal Deposit Insurance Corporation, Office of Inspector General. Assistant U.S. Attorneys Michael D. Anderson and Heiko P. Coppola are prosecuting the case.
On December 15, 2017, Weaver pleaded guilty to one count of wire fraud and one count of bank fraud and is scheduled for sentencing on June 22, 2018. She faces a maximum statutory penalty of 30 years in prison on each count and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former North Carolina Physician Pleads Guilty to Drug Distribution, Health Care Fraud, and Aggravated Identity Theft ChargesRead the Press Release
CHARLOTTE, N.C. – R. Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced today that Dr. Michael Alson Smith, 65, a former Mt. Holly, N.C. family practice physician, appeared in federal court today and pleaded guilty to drug distribution, health care fraud, and aggravated identity theft charges, in connection with the illegal distribution of controlled substances to female patients in exchange for sex acts.
According to filed plea documents and today’s plea hearing, Dr. Smith was a licensed solo practitioner, who owned and operated Mt. Holly Family Practice, Inc., located in Mount Holly. In addition to practicing family medicine, Dr. Smith had sought and received approval from the Drug Enforcement Administration (DEA) to operate an office-based opioid treatment program, and treated a large number of patients with pain management and substance abuse issues.
According to court documents, from at least January 2017 to October 2017, Dr. Smith began to solicit sexual encounters from female patients whom he treated for pain management and/or substance abuse. In exchange for the encounters, Dr. Smith prescribed to those patients Schedule II, III, and IV controlled substances, including Percocet and Clonazepam (also known as Klonopin), among others. Dr. Smith admitted in court today that, during the relevant time period, he engaged in sexual encounters with at least seven female patients. Charging documents alleged that Dr. Smith used coercion to induce female patients to engage in sexual acts, including threatening to stop treatment and to stop prescribing medication.
During the same time period, Dr. Smith submitted fraudulent claims to, and received payment from, North Carolina Medicaid and Medicare, for non-existent medical services for the office visits in which he performed and received sex acts from female patients. Also, as a result of his illegal prescriptions, Dr. Smith caused some of these patients to submit claims to Medicaid and Medicare when they filled the prescriptions at area pharmacies.
The Honorable Robert J. Conrad, Jr. presided over Dr. Smith’s guilty plea. Dr. Smith was released on bond following today’s hearing. A sentencing date has not been set.
In making today’s announcement U.S. Attorney Murray commended the work of the DEA, the U.S. Department of Health and Human Services – Office of the Inspector General, the North Carolina State Bureau of Investigation, the North Carolina Medicaid Investigation Division, and the Mt. Holly Police Department for their investigation of this case.
Assistant United States Attorneys Kelli Ferry and Jenny Sugar of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
Former DPNR Officer Gerald Mercer found Guilty of Cocaine Smuggling Conspiracy at Cyril E. King AirportRead the Press Release
St. Thomas, USVI – Former Department of Planning and Natural Resources Officer Gerald Mercer, 43, was found guilty by a jury in federal court on Thursday, May 31, 2018, before District Judge Curtis Gomez of conspiracy to possess with intent to distribute not less than 50 and not more than 150 kilograms of cocaine, United States Attorney Gretchen Shappert announced today.
According to trial testimony provided by a former security officer at the Office of the Governor, Mercer was the mastermind of a large-scale drug trafficking organization that operated in the Virgin Islands from 2011 through 2016. In 2011, Mercer recruited the security officer and convinced him to use his law enforcement credentials to bypass security screening at Cyril E. King Airport in order to smuggle kilogram quantities of cocaine from St. Thomas to Miami and Fort Lauderdale. Once the cocaine arrived in Florida, Mercer directed the security officer to deliver his cocaine to a coconspirator for distribution in the continental United States at $33,000 per kilogram. Trial testimony also indicated that in 2014, the security officer and Florida coconspirator cut Mercer out of the organization, due to Mercer’s nonpayment of a $70,000 debt. Thereafter, members of the conspiracy continued the cocaine smuggling operation using the system Mercer had originally devised in 2011. After being shut out of the drug smuggling organization, Mercer persistently tried to regain membership, but his coconspirators refused. Trial testimony established that Mercer ultimately decided to expose the organization’s smuggling activities to law enforcement.
According to trial testimony, the smuggling operation was interdicted by federal law enforcement on September 3, 2016, after Mercer contacted a Customs and Border Protection (CBP) agent and reported that one of his former colleagues was traveling through the St. Thomas airport on that day with a quantity of cocaine. Witnesses at trial stated that Mercer instructed the CBP agent not to reveal that he (Mercer) was the source of intelligence information which lead to the apprehension of Mercer’s former colleague, the drug courier. At trial, the U.S. Attorney’s Office presented cell phone records to corroborate that Mercer’s call to the CBP agent was made within minutes of the drug courier’s arrest at the airport with cocaine. CBP agents seized 22 kilograms ofcocaine from the courier’scarryon suitcase, and evidence presented at trial showedthat the last person the courier saw, prior to his apprehension, was infact Mercer.
Other members of the conspiracy have already enteredguilty pleas in this case. As a resultof his conviction, Mercer facesimprisonmentof not less than 10 years and not more than life, anda fine of up to $10,000,000. He wasdetained pending sentencing.
This case was investigated by Homeland SecurityInvestigations, Federal Bureau ofInvestigations and Drug Enforcement Administration and was prosecuted by Assistant United States AttorneysDelia Smith and Meredith Edwards.
Florence Man Sentenced in Federal Court for Failure to Register as a Sex OffenderRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Tayquan Thomas, age 23, of Florence, South Carolina, was sentenced today in federal court in Florence for Failure to Register as a Sex Offender, a violation of Title 18, United States Code, Section 2250(a). United States District Judge Bryan Harwell of Florence sentenced Thomas to 24 months’ imprisonment followed by 5 years of supervised release.
The evidence presented at the guilty plea hearing established that in 2013 Thomas was convicted in Pitt County, North Carolina of Indecent Liberties with Child, which conviction required him to register as a sex offender in any state where he resided, was employed or was a student. Under the law, Thomas was required to inform authorities if he ever changed his address, and if he moved to another state, he was required to notify authorities of both the state he was leaving as well as the state to which he was moving. In September 2017, the Pitt County Sheriff’s Office discovered that Thomas had left his previous address without informing them as required, and they issued a warrant for his arrest. The matter was referred to the United States Marshals Service which soon discovered that Thomas had moved to an address on East Old Marion Highway in Florence, South Carolina. On October 25, 2017, Thomas was located at the East Old Marion Highway address by a task force officer working with the U.S. Marshals Operation Intercept Fugitive Task Force. When the officer attempted to arrest Thomas, he fled in a vehicle, then on foot, but was eventually apprehended after a tracking dog (K-9) was deployed.
The case was investigated by the United States Marshals Service with the assistance of the Florence County Sheriff’s Office and the Pitt County Sheriff’s Office. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Office, 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 identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Fenton Man Pleads Guilty to Making False Claims to the VA Medical CenterRead the Press Release
St. Louis, MO –Vincent DeBlasi, 72, of Fenton, MO, pleaded guilty to making false claims against the United States today. DeBlasi appeared before United States District Judge Audrey G. Fleissig who accepted his plea and set sentencing for September 14, 2018.
DeBlasi admitted to submitting scores of false invoices to the U.S. Department of Veterans Affairs Medical Center at Jefferson Barracks totaling more than $644,000 between 2012 and 2017. He was employed by Applied Maintenance Supplies and Solutions (AMSS) as a salesman of tools and other various commercial and industrial products. One of DeBlasi’s accounts for AMSS was the Jefferson Barracks Medical Facility.
Special Agent in Charge Gregg Hirstein of the VA Office of Inspector General said, “We aggressively investigate cases of individuals or companies who defraud the VA by taking money from the programs and operations meant for our nation’s veterans. We hope this case prompts others aware of fraud against the VA to contact the VA OIG Hotline.”
DeBlasi faces up to 5 years in prison and a fine of not more than $250,000 or both. Restitution to the victim is also mandatory.
The case was investigated by the U.S. Department of Veterans Affairs Office of the Inspector General. Tom Albus is handling the case for the U. S. Attorney’s Office.
Federal Jury Convicts Bailey Boys Gang Leader of Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has convicted Kenneth Pettway, Jr., 34, of Buffalo, NY, of conspiracy to possess with intent to distribute, and to distribute, 280 grams or more of crack cocaine, and possession with intent to distribute heroin and cocaine, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm. The charges carry a mandatory minimum penalty of 40 years in prison, a maximum of life and a fine of $5,000,000.
Assistant U.S. Attorneys Michael P. Felicetta and Seth T. Molisani, who handled the prosecution of the case, stated that the defendant was a leader of the Bailey Boys Gang, a violent criminal gang which operates in an area of the City of Buffalo bounded by Winspear Avenue, the Kensington Expressway, Eggert Road and Main Street. The gang is believed to be responsible for multiple acts of violence, including assaults, shootings, murders, and armed robberies.
As a leader of the Bailey Boys Gang, the defendant supplied illegal narcotics, including crack cocaine, heroin and marijuana, to members and associates of the gang for further distribution in the City of Buffalo. Pettway also provided multiple firearms to members and associates to be used for protection of gang territory, drugs and drug proceeds.
The evidence presented by the government during trial included a rap video entitled “Picked up in a Raid,” which the defendant created and posted to his You Tube account. The video, which purports to be based on a true story, contains images and lyrics related to the defendant’s drug distribution, the silencing of snitches, and the execution of a search warrant by law enforcement officers.
On January 18, 2012, a search warrant was executed at the residence of Demetrius Black residence on Roosevelt Avenue. Officers seized two firearms, heroin, cocaine, marijuana, scales, baggies, and other drug paraphernalia.
Pettway is one of 15 Bailey Boys Gang leaders, members, and associates charged in this case. To date, 14 have been convicted.
“Kenneth Pettway, Jr. was a leader of a neighborhood street gang whose members and associates engaged in narcotics trafficking, robberies, and acts of violence,” stated United States Attorney Kennedy. “Let there be no mistake, my Office, together with our partners in federal, state, and local law enforcement, are making headway in our ongoing effort to wipe out these gangs and the drugs and gun violence which constitute their stock-in-trade. Sooner or later, the young men joining these violent, drug-dealing neighborhood gangs need to realize that it is a big world out there, that they are the captains of their own destiny, and that the only place allegiance to these gangs and their leaders, such as Kenneth Pettway, will take them is to an early grave or to federal prison.”
Today’s verdict is the result of an ongoing investigation into the activities of the Bailey Boys Gang and other criminal gangs that is being conducted by the United States Attorney’s office in close cooperation with the Erie County District Attorney’s Office, under the direction of District Attorney John J. Flynn; and in conjunction with the Buffalo Police Department, under the direction of Police Commissioner Byron Lockwood; the Federal Bureau of Investigation Safe Streets Task Force, under the Direction of Special Agent-in-Charge Gary Loeffert; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
Sentencing is scheduled for September 5, 2018, at 11:00 a.m. before U.S. District Judge Thomas J. McAvoy who presided over the trial.
Elsmere Man Indicted for Pipe BombsRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced today that a federal grand jury charged Mark Consiglio, 48, of Elsmere, Delaware with three counts of illegally possessing a destructive device, commonly known as a pipe bomb. Each charge carries a maximum penalty of 10 years of imprisonment, three years of supervised release, a $10,000 fine, and a $100 special assessment on each count, if convicted.
The allegations against Consiglio include that he detonated a pipe bomb at his estranged wife’s residence in Elsmere in the early morning hours of March 12, 2018. Subsequent searches of Consiglio’s residence yielded additional suspected pipe bombs as well as a .38 caliber revolver. In February, Consiglio was charged with terroristic threatening by the State of Delaware for threatening to kill his wife.
Consiglio made his initial appearance on the indictment before a federal magistrate judge on May 24, 2018. The government filed a motion to detain Consiglio pending trial. He did not contest detention.
U.S. Attorney Weiss offered the following statement, “The use of destructive devices poses a grave threat to the safety of this community. We will treat these threats accordingly and prosecute those who employ such weapons to the fullest extent of the law.”
An indictment is merely an allegation and is not evidence of guilt. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives in coordination with the Office of the State Fire Marshal and the Elsmere Police Department and is being prosecuted by Assistant U.S. Attorney Alexander P. Ibrahim.
El Salvadorian National Charged with Transporting Illegal AliensRead the Press Release
U.S. Attorney Duane A. Evans announced that FRANCISCO ARENIVAR-CASTILLO, age 37, a citizen of El Salvador, was charged yesterday in a one-count bill of information with transporting aliens, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(ii).
According to the bill of information, on March 8, 2018, ICE agents intercepted FRANCISCO ARENIVAR-CASTILLO while he was driving an illegal alien from Houston, Texas to Miami, Florida, through St. Tammany Parish. FRANCISCO ARENIVAR-CASTILLO knew his passenger was illegally present in the United States, yet he nevertheless agreed to transport the individual to a work-site in the Miami area for employment.
If convicted, FRANCISCO ARENIVAR-CASTILLO faces a maximum term of imprisonment of five years, a fine of up to $250,000.00, one year supervised release after imprisonment, and a $100 special assessment.
U. S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
East St. Louis Man Sentenced to Prison for Firearm OffenseRead the Press Release
On May 30, 2018, Arthur Robinson, 30, of East St. Louis, Illinois, was sentenced to serve 188 months in federal prison for being a convicted felon in possession of a firearm, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today. United States District Judge David R. Herndon sentenced Robinson on the conviction, as well as two supervised release revocation cases. Robinson’s prison sentence is to be followed by three years of supervised release. Robinson also agreed to forfeit the illegal firearm that he possessed.
Court proceedings revealed that at approximately four o’clock on the morning of September 18, 2016, an East St. Louis police officer encountered Robinson, a previously convicted felon, passed out behind the wheel of his running truck in the middle of a roadway. The officer observed a Glock handgun loaded with a 30 round magazine laying in Robinson’s lap. The firearm was secured and Robinson was woken up and arrested.
Robinson received an enhanced sentence because of a St. Clair County state court conviction for Aggravated Discharge of a Firearm in 1991, federal court convictions for Conspiracy to Distribute Cocaine Base and Distribution of Cocaine Base in 1992, and federal court convictions for Distribution of Cocaine Base and Possession with Intent to Distribute Cocaine Base in 2002.
The case was investigated by the East St. Louis Police Department and prosecuted by Assistant United States Attorney Christopher Hoell.
Eagle Butte Woman Sentenced on Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman convicted of Distribution of a Controlled Substance (methamphetamine) was sentenced on May 22, 2018, by U.S. District Judge Roberto A. Lange.
Misti Traversie, age 37, was sentenced to 3 months in custody, 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Traversie was indicted by a federal grand jury on November 14, 2017. She pled guilty on March 8, 2018.
Traversie admitted to distributing methamphetamine to another individual for money on August 24, 2016, in Eagle Butte, South Dakota. Traversie further admitted she had distributed methamphetamine on at least one other occasion. Methamphetamine is a Schedule II controlled substance.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Traversie was immediately turned over to the custody of the U.S. Marshals Service.
Drug traffickers sentenced for distributing 100 kilograms of methamphetamine per week in the Atlanta areaRead the Press Release
ATLANTA - Victor Aguirre-Rodriguez was sentenced today to federal prison for his role in a Mexican methamphetamine and cocaine trafficking organization that distributed approximately 100 kilograms of methamphetamine per week (valued at $1.75 million per week) in the Atlanta area. Aguirre-Rodriguez was convicted by a federal jury on February 16, 2018.
“Aguirre-Rodriguez was a member of an illegal organization that flooded the Atlanta area with $1.75 million of methamphetamine per week while hiding on the other end of a cell phone in Mexico,” said U.S. Attorney Byung J. “BJay” Pak. “These high-level traffickers are not protected by technology or their distance from Atlanta when they send poison into our community.”
“These arrests and convictions are an excellent example of how DEA is committed to working with our state and local partners to eliminate drug trafficking in our local communities, no matter where these criminals try to hide,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “The DEA and its law enforcement partners will work tirelessly to continue to bring justice to those responsible for putting this poison on our streets.”
“The impact of taking down these traffickers is immense,” said Atlanta Police Chief Erika Shields. “We’re glad our joint efforts led to shutting down this high-level operation that was dumping millions of dollars of methamphetamine and cocaine onto our streets. Our relationship with our federal and state partners proves once again to be vital in stopping drug traffickers and detouring others from coming to our city.”
According to U.S. Attorney Pak, the charges and other information presented in court: Victor Aguirre-Rodriguez was a member of a Mexico-based drug-trafficking organization (“DTO”) with a foothold in the Atlanta area that was seeking to establish a large-volume cocaine distribution chain to the U.S. Aguirre-Rodriguez began negotiating on behalf of the DTO via telephone from Mexico with Colombian cocaine suppliers.
Unbeknownst to Aguirre-Rodriguez, the U.S. Drug Enforcement Administration (“DEA”) had infiltrated the Colombian suppliers. As the cocaine negotiations continued, Aguirre-Rodriguez invited the Colombians to expand their business model to include the distribution of methamphetamine. The DTO had been distributing approximately 100 kilograms of methamphetamine per week in the Atlanta area at $17,500 per kilogram, and planned to reinvest those profits into its cocaine distribution line.
DEA agents within the Colombian group agreed to purchase the methamphetamine. Aguirre-Rodriguez and DEA agents set up an initial deal for ten kilograms of methamphetamine in exchange for $175,000. Agents planned to drop off a car at Best Friend Park in Gwinnett County, Georgia, where a DTO member would then pick up the car, load it with the ten kilograms of methamphetamine, and return the drug-laden car in exchange for the cash.
The Georgia State Patrol, working in conjunction with the DEA, intercepted the car and seized all ten kilograms of methamphetamine. DEA agents then arrested the driver, Joaquin Tirado. Agents also executed a federal search warrant for the DTO’s suspected drug stash house in Norcross, Georgia, where an additional seven kilograms of methamphetamine were seized and Nolver Noel Molina-Gonzalez, who was guarding the house, was arrested. DEA agents arrested a third DTO member, Jose Luis Guillen-Torres, a/k/a Primo, who was on his way to collect the $175,000 payment.
At the time of these arrests, Aguirre-Rodriguez could not be located and the DEA issued a worldwide notice for law enforcement to be on the lookout for him. Three years passed before Aguirre-Rodriguez was arrested on cocaine charges in Chicago, Illinois.
Members of the organization who have been sentenced by U.S. District Judge Thomas W. Thrash, Jr. are:
●Victor Aguirre-Rodriguez, 41, of Nayarit, Mexico was sentenced to 20 years in prison, to be followed by 10 years of supervised release. Aguirre-Rodriguez was convicted by a jury of conspiracy to possess with intent to distribute and possession with intent to distribute methamphetamine.
●Jose Luis Guillen-Torres, a/k/a/ Primo, 30, of Guerrero, Mexico was previously sentenced to 24 years and four months in prison, to be followed by five years of supervised released. Guillen-Torres pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on June 4, 2013.
●Joaquin Tirado, 29, of Los Angeles, California was previously sentenced to 15 years in prison, to be followed by 10 years of supervised released. Tirado pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking on June 3, 2013.
●Nolver Noel Molina-Gonzalez, 34, of Guerrero, Mexico was previously sentenced to eight years and one month in prison, to be followed by five years of supervised released. Molina-Gonzalez pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on June 13, 2013.
This case is being investigated by the U.S. Drug Enforcement Administration and the Atlanta Police Department, with valuable assistance from the Georgia State Patrol.
This prosecution was brought as a part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Assistant U.S. Attorneys Ryan M. Christian and Garrett L. Bradford are prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
District Man Sentenced to over 13 Years in Prison for Eight Armed Robberies Committed over Two-Day PeriodRead the Press Release
WASHINGTON – Tyrone Hunter, 25, of Washington, D.C., was sentenced today to 13 years and two months in prison for a series of armed robberies that took place within a two-day period last year in Northwest and Northeast Washington, U.S. Attorney Jessie K. Liu announced.
Hunter was found guilty by a jury in March 2018 of eight counts of armed robbery, as well as conspiracy to commit robbery, fleeing and eluding police, reckless driving, and related weapons offenses and other charges. The verdict followed a five-week trial, with testimony from more than 50 witnesses, in the Superior Court of the District of Columbia. He was sentenced by the Honorable Robert A. Salerno. Following his prison term, Hunter is to be placed on five years of supervised release.
According to the government’s evidence, on Jan. 15, 2017, at approximately 1:30 a.m., a 2016 grey Audi sedan was stolen from a parking garage in the 400 block of K Street NW. Over the next two days, the stolen Audi was used as the getaway vehicle in eight armed robberies in Northwest and Northeast Washington. In each instance, Hunter exited the front passenger seat and robbed the victims at gunpoint of their personal belongings before fleeing in the stolen car. According to the evidence at trial, the first robbery took place before dawn on Jan. 15, 2017, and the crimes continued into the night of Jan. 16, 2017.
On Feb. 8, 2017, law enforcement observed Hunter driving the stolen Audi. Following a brief chase that resulted in the stolen Audi crashing into numerous vehicles, Hunter exited the vehicle and fled from the police. Law enforcement soon located and arrested Hunter. Following his arrest, several victims identified him as the gunman who robbed them. Hunter has been in custody since his arrest.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department (MPD). She also expressed appreciation for the assistance provided by the FBI’s Cellular Analysis Survey Team and the District of Columbia Department of Forensic Sciences. She acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Criminal Investigators John Marsh and Durand Odom; Paralegal Specialists Zoe Antwi and Antoinette Sakamsa; Victim/Witness Advocates Diana Lim and Jennifer Clark; Victim/Witness Services Coordinator Katina Adams-Washington, and Litigation Technology Specialists Leif Hickling, Anisha Bhatia, William Henderson, and Ron Royal. Finally, she commended the work of Assistant U.S. Attorneys Vivien Cockburn and Ellen D’Angelo, who investigated and prosecuted the case.
District Man Sentenced to More Than Five Years in Prison for Assaulting Storeowners in Southeast WashingtonRead the Press Release
WASHINGTON – Avon Thompson, 23, of Washington, D.C., was sentenced today to five years and three months in prison for severely attacking two people with a knife who attempted to prevent him from stealing alcohol from their store in Southeast Washington, U.S. Attorney Jessie K. Liu announced.
Thompson pled guilty in January 2018, in the Superior Court of the District of Columbia, to charges of assault with a dangerous weapon and assault with significant bodily injury. He was sentenced by the Honorable José M. López. Following his prison term, Thompson will be placed on three years of supervised release.
According to the government’s evidence, on the afternoon of Nov. 15, 2017, Thompson entered a store in the 2400 block of Martin Luther King Jr., Avenue SE. After looking around the store, he took a bottle of liquor, put it in his pants and attempted to leave without paying. The first victim, the storeowner, attempted to confront Thompson and call the police to report the theft. However, Thompson turned irate and began striking the victim several times – first with his fist, then with a knife. The second victim, the wife of the storeowner, came out to help defend her husband, but was assaulted as well.
During the assault, Thompson knocked both victims to the floor and continued attacking them. The storeowner had multiple lacerations to his head and had to undergo multiple dental surgeries to repair damaged and missing teeth. The wife of the storeowner also had to have surgery to insert a metal rod in her arm to repair her broken wrist.
Thompson was arrested soon after the attack and has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department (MPD). She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Diana Lim and Assistant U.S. Attorney Emile C. Thompson, who investigated and prosecuted the matter.
District Man Sentenced to Five Years in Prison for Armed RobberyRead the Press Release
WASHINGTON - Anthony Robinson, 26, of Washington, D.C., was sentenced today to five years in prison on a charge of armed robbery stemming from an incident in which he conspired to rob an acquaintance after a party, announced U.S. Attorney Jessie K. Liu.
Robinson pled guilty in April 2018, in the Superior Court of the District of Columbia. He was sentenced by the Honorable Judith Bartnoff. Following his prison term, Robinson will be placed on five years of supervised release.
According to the government’s evidence, on Oct. 15, 2016, at approximately 3:30 a.m., Robinson and another man, having conspired to rob the victim, came to the front of the Baron Hotel in the 1500 block of 22nd Street NW, where a party was being held, to execute their plan. The victim was standing on the sidewalk, talking to occupants of a car parked on the street.
When Robinson and his accomplice arrived, the accomplice immediately pointed a gun to the victim’s head and demanded the man’s backpack. Robinson stood a few feet away. The victim handed his backpack to the accomplice, and Robinson urged him to “come on.”
At this point, one of the passengers in the car stepped out and Robinson’s accomplice fired two shots at him; one of these bullets hit the man below his right ear and exited through his neck. The man survived the gunshot wound. Robinson ran down the block to wait for his accomplice. Robinson took the backpack from the accomplice and both men fled the scene. Robinson was arrested on Nov. 7, 2016. No one else has been charged to date.
In announcing the sentence, U.S. Attorney Liu commended the work of detectives from the Metropolitan Police Department’s Second District, who investigated the case. She also acknowledged the efforts of Assistant U.S. Attorney Nurudeen Elias, who investigated and indicted the case with assistance from Assistant U.S. Attorney John Giovannelli.
Credit Card Fraudster Sentenced to PrisonRead the Press Release
Assistant U.S. Attorney Nicholas W. Pilchak and Matthew J. Sutton (619) 546-9709 and (619) 546-8941
NEWS RELEASE SUMMARY – June 1, 2018
SAN DIEGO – The leader of a credit card fraud ring that stole account information from dozens of San Diego residents and used it to purchase over $70,000 of merchandise at area retailers was sentenced in federal court today to 51 months in prison.
U.S. District Judge John A. Houston sentenced the ringleader, Daniel Stephen Wray, following his January 18, 2018 guilty plea to conspiracy to use counterfeit access devices. Wray was also ordered to pay $76,489.35 in restitution.
As detailed in the plea agreement, indictment, and other publicly-filed court documents, Wray recruited multiple co-conspirators to join his ring of credit card fraudsters in late 2016. Wray then provided these individuals with counterfeit access devices—credit cards bearing altered names, but encoded with real credit card numbers for the accounts of unwitting victims—and drove them to San Diego-area stores.
Investigators believe that many of the victims’ identities and credit card numbers were stolen after Wray and his co-conspirators installed a skimmer at a La Jolla, California gas station. A skimmer is a device capable of reading and recording account information, including customer names, account numbers, and personal identification numbers, from credit and debit cards. After creating the fraudulent credit cards with the stolen credit card numbers, Wray and his co-conspirators then used them to purchase tens of thousands of dollars of merchandise from multiple San Diego retailers, including Costco and Smart N Final.
Wray admitted his role as the leader of the fraudulent scheme, acknowledging that he obtained dozens of counterfeit and unauthorized access devices from multiple victims in San Diego County and then directed his associates to use these fraudulent credit cards to make tens of thousands of dollars in purchases, ranging from Apple iPads, luxury wristwatches, gold and silver, and significant quantities of liquor and energy drinks from large San Diego retailers. According to court filings, Wray rapidly resold or distributed the stolen property on the black market.
Wray also admitted to being previously convicted of illegally possessing 269 counterfeit credit cards in 2014. In fact, according to court records, Wray was on supervised release for his prior credit card fraud conviction when he committed this crime, and even recruited his accomplices from the halfway house where he was serving his supervised release term.
At sentencing this morning, Judge Houston noted Wray’s lengthy and serious prior criminal record, his aggravating role in the offense, and the effect of identity theft on the lives of ordinary citizens. The judge said Wray’s identity theft conduct “destroys lives.”
“Identity thieves cannot victimize citizens of our district with impunity,” said U.S. Attorney Adam L. Braverman. “To anyone who considers credit card fraud a quick and easy payday: this office will investigate and prosecute you, and you will face the consequences.”
“Today’s sentencing is a reminder that financial crimes are not victimless crimes,” said United States Secret Service Special Agent in Charge Brian S. Christensen. “The defendant and his conspirators victimized the community of San Diego for their own personal gain by taking advantage of multiple local merchants. The U.S. Secret Service and its law enforcement partners will continue to investigate and pursue prosecution of those who engage in identity theft or financial fraud.”
The San Diego Regional Fraud Task Force (SDRFTF), conducted the investigation that led to the successful prosecution of this defendant. The SDRFTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in San Diego County. Partnering in this effort are the United States Attorney's Office for the Southern District of California, the United States Secret Service, the San Diego Police Department, and the San Diego County District Attorney’s Office, along with other state and local partners. The case is being prosecuted by Assistant U.S. Attorneys Nicholas W. Pilchak and Matthew J. Sutton.
DEFENDANT Case Number 17CR3856-JAH
Daniel Stephen Wray Age: 29 San Diego, California
SUMMARY OF CHARGES
Conspiracy to Commit Access Device Fraud, in violation of Title 18 U.S.C. § 1029; Term of custody including 20 years in prison, $250,000 fine and 3 years supervised release and mandatory restitution.
AGENCIES
San Diego Regional Fraud Task Force:
- United States Secret Service
- San Diego Police Department
- San Diego District Attorney’s Office
Columbus Woman Pleads Guilty to Tax FraudRead the Press Release
COLUMBUS, Ohio – Tawnya Writesel, also known as Tawnya Rutan, 39, of Columbus, pleaded guilty to conspiracy to submit false claims for income tax refunds with the Internal Revenue Service (IRS). Writesel filed at least 100 false income tax returns in an attempt to receive more than half a million dollars in fraudulent tax returns.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office, announced the guilty plea offered before U.S. Magistrate Judge Norah McCann King.
According to court documents, between April 2012 and September 2015, Writesel conspired to defraud the IRS by filing approximately 100 false income tax returns in an attempt to obtain fraudulent income tax refunds totaling approximately $548,382.00. As a result of the false income tax return filings, a total of $226,677.50 in fraudulent income tax refunds was released by the IRS to Writesel and/or other coconspirators.
Writesel used the identification of real people, including names, social security numbers and dates of birth, and used the identifying information as either the taxpayers or the dependents on the false income tax returns. The majority of these false tax returns contained fictitious information including false Schedule C income and expenses, and fraudulently claimed education and Earned Income Credits.
Co-defendants Michael (also known as Mickey) A. Prisley, Amy K. France and Denard T. Nelson were also charged in relation to this case.
Prisley was an attorney licensed to practice law in the State of Ohio and had served as an assistant prosecuting attorney for Athens County, Ohio from approximately August 2011 through January 2014. He pleaded guilty in April 2018 to one count of conspiracy to submit false claims and is awaiting sentencing.
France pleaded guilty in June 2016 to one count of conspiracy to submit false claims and one count of identity theft and was sentenced in January to 37 months in prison. France was also ordered to pay nearly $467,000 in restitution.
Nelson pleaded guilty in September 2015 to one count of identity theft and was sentenced in May 2016 to five years of probation. He was also ordered to pay more than $87,000 in restitution.
“This is the last defendant to plead guilty in this conspiracy, one in which they all chose to line their pockets with stolen income tax refunds,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, and Assistant United States Attorney Jessica H. Kim, who is prosecuting the case.
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Colorado Springs Man Sentenced to 18 Months in Federal Prison for Illegal Reentry into the United States and Illegal Alien in Possession of a FirearmRead the Press Release
DENVER – Jose De Jesus Cordova-Saldana, 29, of Colorado Springs, Colorado, was sentenced yesterday to serve 18 months in federal prison following his March 5, 2018 entry of a guilty plea to Illegal Alien in Possession of a Firearm and Illegal Reentry into the United States, both felonies. The proceedings were held before U.S. District Judge Raymond P. Moore. Cordova-Saldana’s guilty plea followed a January 2018 indictment.
Court documents indicate that on the day after Thanksgiving, November 24, 2017, Cordova-Saldana engaged in a drunken joy ride with friends through the residential streets of Colorado Springs firing weapons in the air, including a Beretta Nano 9mm firearm, a Glock 9mm handgun, and an American Tactical AR-15 assault rifle. The defendant was later found by local police slumped over and passed out in the back seat of a Chevrolet Silverado pick-up truck with a host of weapons, live ammunition, and discarded shell casings. All firearms and ammunition were confiscated by authorities. Previously, in January 2014, Cordova-Saldana was convicted of 3rd Degree Assault, causing injury to the victim, and later deported to Mexico that same year after serving a state jail sentence.
Following his sentencing hearing, Cordova-Saldana was remanded into the custody of the U.S. Marshal’s Service and is expected to be deported again to his native country of Mexico after serving his sentence.
The investigation in this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) along with the Colorado Springs Police Department. The prosecution was handled by Wayne Paugh, Special Assistant U.S. Attorneys, District of Colorado, Denver.
Chief Digital Officer of Cable Network Sentenced to 51 Months in Prison for Defrauding His Former Employer of More Than $7 MillionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that EMIL RENSING was sentenced today to 51 months in prison for his scheme to defraud his former employer, a premium cable network (the “Network”), of more than $7 million through false statements about purported services to be provided to the Network by companies RENSING owned and controlled, which services were, in large part, never performed. RENSING was sentenced by U.S. District Judge Victor Marrero, who previously accepted RENSING’s guilty plea.
U.S. Attorney Geoffrey S. Berman said: “Emil Rensing defrauded his employer out of more than $7 million by causing the network to pay Rensing-controlled companies for services that were never rendered. Rensing used false and stolen identities and dummy email accounts to conceal his role in the payments, and then lied to company lawyers who questioned him about the evident fraud. Today he has been sentenced to prison for his crime.”
According to the allegations in the Indictment to which RENSING pled guilty, a criminal complaint filed against RENSING, statements made during the plea, and other court proceedings:
EMIL RENSING, who served as the chief digital officer of the Network, defrauded the Network of more than $7 million over the course of his five-year employment with the Network. Specifically, through his position as chief digital officer of the Network, RENSING caused the Network to contract with vendor companies owned and controlled by RENSING to perform digital media services for the Network and to perform those services through vendor personnel identified in the contracts. In truth and in fact, the services promised by RENSING were, in large part, never performed, and the vendor personnel designated in the contracts to perform the services – which included several of RENSING’s former professional associates and business partners – never performed services for the Network. Indeed, the individuals identified by RENSING as vendor personnel were unaware that their names were being used by RENSING in this manner.
RENSING concealed his fraudulent scheme by, among other things, using false and stolen identities to hide his own involvement in the scheme. As to one of the vendors RENSING used to perpetrate the scheme (“Vendor-1”), RENSING provided the Network with a false name and email address as the “contact” to be used by the Network to communicate with Vendor-1. As to a second vendor (“Vendor-2”), RENSING provided the Network with the name of a personal acquaintance as a “project manager” and “contact” for Vendor-2 when, in truth and in fact, this acquaintance had nothing to do with Vendor-2. Unbeknownst to this personal acquaintance, RENSING also established an email account in that acquaintance’s name, which RENSING, posing as the acquaintance, regularly used to communicate with the Network about the vendor’s billing and other administrative matters.
After the Network learned of RENSING’s fraudulent scheme, RENSING was interviewed by attorneys for the Network. During this interview, which was recorded at the request of RENSING and his counsel, RENSING made multiple false statements to further conceal his fraudulent scheme.
* * *
In addition to the prison term, RENSING, 44, of Manhattan, was sentenced by Judge Marrero to three years of supervised release, and was ordered to forfeit $7,774,469.52 and to pay $7,774,469.52 in restitution to the Network plus the expenses the Network incurred during its participation in the Government’s investigation and criminal prosecution.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Elisha J. Kobre is in charge of the prosecution.
Canadian Woman Sentenced for Smuggling Thousands of Dollars at the Peace BridgeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Liliya Dzyuba, 42, a Ukraine National and citizen of Canada, who was convicted of bulk cash smuggling, was sentenced to time served by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney, Aaron J. Mango, who handled the case, stated that on January 25, 2018, the defendant attempted to enter the United States from Canada at the Peace Bridge Port of Entry. During her primary inspection, Dzyuba stated that she was traveling with $5,000 in U.S. Currency. The defendant signed the CBP Customs Declaration Form indicating that she was not carrying over $10,000. During a secondary inspection, CBP Officers told Dzyuba that she was going to be patted down and was asked again if she had any additional money on her. The defendant then admitted that she was carrying $35,000.00 around her waist and hidden in her pants. Dzyuba was searched and officers recovered four black zipper pouches concealed around her waist, which contained a total of $37,000. In addition, $5,373 was found in the defendant’s wallet, for a total amount of $42,373.
The sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations under the direction of Special Agent-in-Charge Kevin Kelly, and Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
CEO Gets More Than 19 Years for $18 Million Health Care Fraud SchemeRead the Press Release
HOUSTON – The CEO of Team Work Ready (TWR) has received a significant federal sentence for conspiracy, health care fraud, wire fraud and money laundering, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Christopher Cave of the U.S. Postal Service - Office of Inspector General (USPS-OIG), Special Agent in Charge Steven Grell of the U.S. Department of Labor (DOL) – OIG, Assistant Special Agent in Charge Ramsey Covington of IRS-Criminal Investigation (CI), Special Agent in Charge James Werner of the Department of Veterans Affairs (VA) – OIG and Special Agent in Charge David J. Green of the Department of Homeland Security (DHS) – OIG.
A federal jury convicted Jeffrey Eugene Rose Sr., 56, along with his wife - chief financial officer (CFO) Pamela Annette Rose, 56 - and the clinic’s vice president of operations Frankie Lee Sanders, 56, following 14 hours of deliberation on Oct. 17, 2016.
Today, U.S. District Judge Ewing Werlein Jr., who presided over the trial, sentenced Rose to 233 months in federal prison and ordered him to pay $14,537548.54 in restitution to the DOL, Office of Worker’s Compensation Program (OWCP) which administered the Federal Employees Compensation Act health care benefit program known as FECA. In arriving at the sentence, Judge Werlein considered the seriousness of the offense and the $18,354,971 in fraudulent claims submitted from Rose’s 10 TWR clinics located in Texas, Louisiana, Georgia, Memphis and Alabama, including clinics in Houston, San Antonio, and McAllen. Rose will also be required to serve three years supervised release upon completion of the prison term.
“The sentence imposed today serves as a clear deterrent to those engaging in fraud against federal benefit programs,” said Cave. “USPS-OIG, along with our law enforcement partners, will continue to aggressively pursue these investigations and exhaust all efforts in uncovering these fraud schemes.”
Pamela Rose and Sanders were previously sentenced July 21, 2017, to 120 and 300 months, respectively.
During the trial, the jury heard testimony from 38 witnesses including former patients of TWR clinics, former employees of TWR clinics, various experts and special agents from USPS-OIG and IRS-CI. According to testimony, TWR submitted millions in false and fraudulent claims for physical therapy services.
“Jeffrey Rose orchestrated a fraudulent scheme to submit more than $18 million in claims for services never provided to injured federal workers to DOL-OWCP using the health care clinics he owned in multiple states,” said Grell. “We will continue to work with our law enforcement partners to protect the integrity of department programs and safeguard taxpayer money.”
“Our system of health care is founded on the trust of the public in its health care professionals and the outstanding services they provide. The health care fraud and money laundering activities committed by Jeffrey Rose and his co-conspirators harms all Americans, as we all have to pay our fair share for government services and protections that we enjoy,” said Covington. “IRS-CI agents along with our law enforcement partners remain committed to ending healthcare fraud conspiracies and seeking justice for those involved in these crimes.”
Patients testified at trial that they did not receive the one-on-one physical therapy services for which DOL-OWCP paid under FECA. Rather, they stated they exercised independently on treadmills, bicycles, elliptical machines and with the Nintendo Wii game as well as other pieces of exercise equipment. One patient described an electronic massage chair in the San Antonio clinic, while another patient testified that unlicensed staff told him to do exercises on both of his arms, although he only injured his left elbow and to use the electronic massage chair and the treadmill for his injury. Similarly, a patient from Houston testified that she was asked to do some exercises that had nothing to do with her carpal tunnel wrist injury, specifically walking on a treadmill.
Testimony from former TWR employees revealed that the Houston clinic had as many as 30 – 60 patients a day and that employees did not know what the patients were doing in the main treatment area because they were busy in the back doing massages, electrical stimulation treatments and ultrasound treatments. Patients at the New Orleans clinic were instructed to go back to the therapy room to begin doing exercises by themselves. Employees testified that they did not perform all the one-on-one services documented on patient treatment notes and admitted they frequently completed the patient treatment notes at the end of the day by following a “cheat sheet” and asking each other and the patients what activities had been done. Various individuals described the treatment as “like a gym.”
Undercover federal agents posed as patients at two of the TWR clinics. The jury watched portions of covertly made recordings that supported the employee and patient testimony about clinic activities. The jury also heard several recordings a TWR employee made demonstrating how the defendants tried to coerce her into ordering medically unnecessary treatment so the clinics could profit.
As explained during the trial by DOL-OWCP’s chief fiscal officer, FECA does not pay for professional services performed by unlicensed aides. Under FECA rules, a chiropractor can only be paid when they treat spinal subluxation or when they personally perform physical therapy under the direction of, and as prescribed by, a medical doctor. They also cannot direct unlicensed individuals to perform skilled physical therapy services. Specifically, in relation to this case, TWR falsely and fraudulently submitted claims for skilled one-on-one physical therapy services provided by a licensed chiropractor when, in reality, the services were not provided as described.
Rose and his wife were also convicted of money laundering after another TWR employee testified about the pair moving $700,000 out of TWR accounts to hide it from the federal government in July 2013, while federal agents executed search warrants at multiple TWR locations.
Rose has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
USPS - OIG, DOL - OIG, IRS - CI, Department of Veterans Affairs - OIG, and Department of Homeland Security – OIG conducted the investigation. Assistant U.S. Attorneys (AUSA) Julie Redlinger and Daniel Rodriguez prosecuted the case. AUSA Kristine Rollinson handled the forfeiture matters.
Burbank Elementary School Teacher Indicted for Producing Child Pornography and Enticement for Engaging in Sexual Conduct with Former StudentRead the Press Release
LOS ANGELES – A federal grand jury yesterday named a Burbank teacher in a criminal indictment that accuses him of sexually exploiting a fifteen-year-old former student for purposes of producing child pornography images of the minor.
Sean David Sigler, 53, of Burbank – who previously taught fifth-grade students at Bret Harte Elementary School in Burbank and at Gardner Street Elementary School in Los Angeles – was indicted Thursday on eleven counts including obtaining custody and control of a minor with intent to produce child pornography, production of child pornography, enticement of a minor, and possession of child pornography. The United States Attorney’s Office previously filed a criminal complaint against Sigler charging him with production of child pornography.
According to the complaint, Sigler inserted himself into the victim’s life shortly after the child left Sigler’s classroom and used his position as former teacher, mentor, and father-figure to gain the trust of the victim and her parent. Sigler then exploited that trust to gain sexual access to the minor victim. Over the course of 15 months, Sigler regularly transported the victim to his home, where he would give her alcohol and pills and then photograph and film his sexual activity with her. Sigler began having sex with the minor victim when she was just fifteen.
Sigler’s digital devices contained numerous images and videos of his sexual acts with the victim, as well as thousands of images of child pornography depicting unknown pre-pubescent minors, non-pornographic images of minor female students in Sigler’s classroom, and images copied and saved from the social media accounts of former students.
The violation of obtaining custody and control of a minor with intent to produce child pornography carries a mandatory minimum prison sentence of 30 years and a maximum of life imprisonment. The charges of producing child pornography each carry a mandatory minimum prison sentence of 15 years and a statutory maximum sentence of 30 years in federal prison. The charge of enticement carries a mandatory minimum prison sentence of 10 years and a maximum of life imprisonment. The charges of possessing child pornography each carry a statutory maximum sentence of 10 years in federal prison.
A complaint and indictment contain allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Sigler is currently in federal custody and will be arraigned on the indictment in the coming weeks.
The case was investigated by Homeland Security Investigations and the Burbank Police Department.
The case is being prosecuted by Assistant United States Attorneys Damaris Diaz and Devon Myers of the Violent and Organized Crime Section.
Buffalo Man Sentenced for Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Michael V. Secchiaroli, 32, of Buffalo, NY, who was convicted of possession of child pornography involving a prepubescent minor, was sentenced to 72 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that on March 29, 2016, the defendant possessed images of child pornography which were obtained over the internet and stored on a laptop computer. On December 28, 2015, a Special Agent with the FBI, acting in an undercover capacity, logged onto a peer-to-peer file-sharing program and downloaded seven images of child pornography from an individual sharing those images from particular IP address. Further investigation revealed that the IP address was associated with the Secchiaroli’s residence. The defendant admitted that he had been using publicly available peer-to-peer software to download, possess, and view child pornography. Secchiaroli’s electronic devices were found to contain 31 images of child pornography, some of which depicted pre-pubescent children and violence.
The sentencing is the result of an investigation by agents of the Federal Bureau of Investigation, at the direction of Gary Loeffert, Special Agent-in-Charge.
Buffalo Man Pleads Guilty to Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Joshua Zak, 40, of Buffalo NY, pleaded guilty to receipt of child pornography, before U.S. District Judge Lawrence J. Vilardo. The charge carries a mandatory minimum penalty of five year in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that in September 2015, Federal Agents searched Zak’s residence after determining he had accessed a website dedicated to the exploitation of children. Agents seized various electronics, and a forensic examination revealed that Zak was in possession of images and videos of child pornography.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary A. Loeffert
Sentencing is scheduled for September 7, 2018, at 11:00 a.m. before Judge Vilardo.
Boston Man Pleads Guilty to Distributing Drugs in and around Public Housing DevelopmentRead the Press Release
BOSTON – An identified Boston gang member pleaded guilty yesterday in federal court in Boston to distributing drugs in and around the Mildred C. Hailey Apartments in Jamaica Plain.
Joe Simmons, a/k/a “Profit,” 30, pleaded guilty to distribution of controlled substances within 1,000 feet of a public housing facility. U.S. District Court Judge Denise J. Casper scheduled sentencing for Sept. 12, 2018.
Following a two-year investigation, Simmons and eight others were charged in January 2018 in connection with illegal drug distribution and firearm possession within and near the Mildred C. Hailey Apartments in Jamaica Plain, formerly known as the Bromley Heath Housing Development. Simmons. Simmons, an alleged member of the Heath Street Gang sold cocaine base, also known as crack cocaine, to a cooperating witness inside the development on May 11, 2017. Simmons told the cooperating witness that he could supply him with “eight balls all day” and would “take care” of him. According to court documents, Simmons’s criminal record includes convictions for assault and battery, possession of a firearm, resisting arrest, and drug possession, among other charges.
The investigation and arrests sought to reduce violence and improve the quality of life in and around the Mildred C. Hailey Apartments for residents by removing individuals who trafficked drugs and who were actively involved in violence and gang disputes. Simmons is the fourth defendant to plead guilty in this case.
The charge of distribution of controlled substances within 1,000 feet of a public housing development provides for a mandatory minimum sentence of one year and no greater than 40 years in prison, a minimum of six years and up to a lifetime of supervised release, and a fine of $2 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; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement. Assistance was also provided by the Boston Housing Authority’s Department of Police and Public Safety.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Barbour County man admits to firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – A Philippi, West Virginia man has admitted to possessing a stolen firearm, United States Attorney Bill Powell announced.
Gregory Smith, age 54, pled guilty today to one count of “Possession of a Stolen Firearm.” Smith, admitted to having a stolen .22-caliber derringer in January 2018 in Barbour County.
Smith is facing up to 10 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 Sarah E. Wagner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.Bank Employee Sentenced for Theft of the First State Bank Graham, TexasRead the Press Release
ABILENE — Edalia Martinez Oliver, 44, of Woodson was sentenced Friday, May 25, 2018, by Senior U.S. District Judge Sam R. Cummings to serve a total of 12 months in federal prison, and ordered to pay restitution in the amount of $41,992.20, following her guilty plea in February 2018 to Bank Theft from the First State Bank Graham (Texas), in Woodson Texas, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Oliver pleaded guilty to one count of Bank Theft; that is, to take and carry away, with intent to steal and purloin, money in an amount exceeding $1,000.00 belonging to, and in the care, custody, control, management, and possession of First State Bank Graham (Texas), Woodson, Texas, a bank whose deposits were insured by the Federal Deposit Insurance Corporation.
According to documents filed in the case, on June 29, 2017, FSB management conducted a surprise teller and vault cash audit at its Woodson branch. Oliver told FSB management that there would be money missing out of the vault. Upon completion of the cash audit, FSB learned that $38,592.20 was missing. On June 29 and 30, 2017, Oliver admitted to FSB management and the Sheriff of Throckmorton County, Texas that she had stole the money to gamble and had a gambling problem.
The FBI and Throckmorton County Texas Sheriff’s Office investigated the case. Assistant U.S. Attorneys Jeffrey Haag and Beverly Chapman were in charge of the prosecution.
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Alaskan Husband and Wife Plead Guilty to Willful Failure to Pay TaxesRead the Press Release
A husband and wife pleaded guilty yesterday to two counts of willfully failing to pay their income taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Bryan Schroder for the District of Alaska.
According to court documents, Archie W. Demmert III, 57, and Roseann L. Demmert, 60, both of Klawock, Alaska, held commercial fishing permits and earned six-figure incomes in 2013 and 2014 from commercial fishing, on which they failed to timely pay the required income taxes due. In addition, from 2006 to 2012, the Demmerts also did not timely pay in full the taxes they owed to the Internal Revenue Service. As a result, the total tax loss to the IRS arising from their conduct is more than $300,000.
Chief U.S. District Judge Timothy M. Burgess scheduled sentencing for October 4, 2018. The Demmerts each face a statutory maximum sentence of two years in prison, as well as a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Schroder thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney Lori Hendrickson and Assistant U.S. Attorney Andrea Steward who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts can be found on the division’s website.
Alaskan Commercial Fishing Couple Plead Guilty to Willful Failure to Pay Taxes on Income Earned from FishingRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that an Alaskan couple pleaded guilty yesterday in Juneau for willfully failing to pay their individual income taxes.
Archie W. Demmert III, 57, and Roseann L. Demmert, 60, both of Klawock, Alaska, pleaded guilty yesterday before Chief U.S. District Judge Timothy M. burgess to two counts of willful failure to pay income tax. As part of the plea agreement, the Demmerts have agreed to jointly pay restitution to the IRS, which will be determined at sentencing.
According to court documents, Archie Demmert and Roseann Demmert both had commercial fishing permits for herring spawn on kelp, and Archie had an additional commercial fishing permit for a salmon purse seine. The Demmerts admitted in court that they earned income from commercial fishing but willfully did not pay their taxes for 13 separate tax years, for which they owed over $300,000, excluding penalties and interest.
The sentencing hearings have been scheduled for Oct. 4, 2018. The Demmerts each face a statutory maximum sentence of two years in prison, as well as a period of supervised release, restitution and monetary penalties.
IRS Criminal Investigation (IRS-CI) conducted the investigation which led to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney Andrea Steward and Trial Attorney Lori Hendrickson of the Tax Division.
31 May 2018
Waterloo Man with Multiple Previous Convictions Sentenced to Federal Prison for Selling Crack CocaineRead the Press Release
A Waterloo man who had previously been convicted of more than 30 crimes as an adult and who trafficked crack cocaine was sentenced May 30, 2018, to more than 17 years in federal prison.
Samuel Landfair, age 39, from Waterloo, Iowa, received the prison term after a December 15, 2017, guilty plea to conspiracy to distribute crack cocaine, four counts of distribution of crack cocaine, and possession with intent to distribute crack near a protected location.
At the guilty plea, Landfair admitted selling crack cocaine on four separate occasions during November 2016 and possessing crack for the purpose of distributing it within 1,000 feet of George Washington Carver Academy in Waterloo, Iowa. Landfair’s criminal history includes more than 30 adult convictions, including a conviction for possession of a simulated controlled substance with intent to distribute and three separate convictions for possessing a controlled substance with intent to distribute.
Landfair was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Landfair was sentenced to 213 months’ imprisonment. He must also serve an 8-year term of supervised release after the prison term. There is no parole in the federal system.
Landfair is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Iowa Division of Narcotics Enforcement, the Tri-County Drug Enforcement Task Force, the Waterloo Police Department, the Black Hawk County Sheriff’s Office, the Cedar Falls Police Department, the Cedar Rapids Police Department, the Iowa City Police Department, the Linn County Sheriff’s Office, and the Iowa State Patrol.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-2047.
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