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Tuesday 17 April 2018
Reno Man Sentenced to A Total of over 16 Years in Prison for Possession with Intent to Distribute Methamphetamine After High-Speed Police ChaseRead the Press Release
RENO, Nev. – A wanted fugitive who shot at law enforcement during a high-speed chase through the northeast Reno area was sentenced today to 175 months in federal prison, announced U.S. Attorney Dayle Elieson for the District of Nevada.
Eugene Enrique Corona, 35, of Reno, pleaded guilty in November 2017, to possession with intent to distribute methamphetamine. Corona was a wanted fugitive for violation of his supervised release. In addition, he received a 24 month prison sentence to run consecutive to today’s sentence term for revocation on his supervised release violation.
According to the plea agreement, on January 18, 2017, a Washoe County Sheriff’s Office K9 unit attempted to stop Corona’s vehicle. However, he sped away, drove through a stop sign and a red traffic light, and almost caused two separate accidents — one at Wedekind Road and Sullivan Lane and the second at Wedekind Road and El Rancho Drive. During the pursuit, Corona fired a shot at law enforcement following him, then threw the firearm out of the driver’s side window. Corona lost control of his truck and crashed into the front yard of a residence on the corner of Montello Street and Wilder Street. He attempted to flee the scene on foot, but law enforcement was able to apprehend him. They recovered a Taurus 5 shot revolver near Wedekind Road and El Rancho Drive. Inside Corona’s truck, deputies found two clear bags with approximately 60 grams of methamphetamine and a digital scale.
The case was investigated by the Washoe County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshals Service, and the DEA. Assistant U.S. Attorney Megan Rachow prosecuted the case.
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Pharmacist Sentenced to 27 Months in Prison for Illegally Distributing Oxycodone from Medford, New Jersey ‘Pill Mills’Read the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, pharmacist was sentenced today to 27 months in prison for his role in a long-running conspiracy to illegally distribute and dispense large quantities of oxycodone and other controlled substances from two pharmacies located in Medford, New Jersey, U.S. Attorney Craig Carpenito announced.
David Goldfield, 60, of Medford Lakes, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to Count 1 of an indictment, charging him with conspiracy to illegally distribute and dispense oxycodone and other Schedule II controlled substances, and Counts 10 through 15, which charge him with multiple substantive counts of illegal distribution and dispensing of oxycodone. Judge Simandle imposed the sentence in Camden federal court.
According to documents filed in this case and statements made in court:
Goldfield was employed by Michael Ludwikowski, 46, of Medford, at Olde Medford Pharmacy and Medford Family Pharmacy. Goldfield admitted that from January 2010 through August 2013, he conspired with Ludwikowski to distribute and dispense oxycodone for individuals they knew were obtaining the pain killers for resale or for non-medical use.
Goldfield admitted, based upon his training and experience, as well as the “red flags” he observed, it was obvious that many of the oxycodone prescriptions that Goldfield and Ludwikowski filled were fraudulent. These red flags included prescriptions for oxycodone that appeared to have been “washed” or “bleached.” According to the indictment, this was achieved through a chemical process that removed the original writing for a non-narcotic substance. The customers then rewrote the prescriptions for their drug of choice, including oxycodone.
Other red flags included customers who were believed to be drug addicts, or believed to be selling or abusing the oxycodone; customers seeking oxycodone with residential addresses far from the Medford area, including for example, Camden, New Jersey; the same customer presenting oxycodone prescriptions in numerous different names, including the names of both men and women; and customers presenting oxycodone prescriptions for a 30-day supply multiple times a week.
On occasions that Goldfield had suspicions about the legitimacy of particular prescriptions, Ludwikowski allegedly told Goldfield to fill some of those prescriptions anyway. In addition, Goldfield admitted that he and Ludwikowski stored bottles of oxycodone in a pull-out drawer to which pharmacy employees working at the front counter would have easy access, rather than in a locked safe.
When Ludwikowski became concerned with the high number of oxycodone prescriptions that were being filled, Ludwikowski and Goldfield – in an attempt to evade law enforcement – turned away customers who were bringing in fraudulent prescriptions by telling them that the Drug Enforcement Administration (DEA) had reduced their supply of oxycodone.
In addition to the prison term, Judge Simandle sentenced Goldfield to three years of supervised release and fined him $4,900.Ludwikowski was convicted at trial of six counts in an indictment charging him with illegally distributing and dispensing oxycodone, a Schedule II controlled substance, and maintaining a drug-involved premises. He was sentenced April 12, 2018, to 15 years in prison.
U.S. Attorney Carpenito credited special agents of the FBI’s Newark Field Office, under the direction of Acting Special Agent in Charge Bradley W. Cohen; the Drug Enforcement Administration’s Newark Division, under the direction of Special Agent in Charge Valerie A. Nickerson; the Medford Police Department under the direction of Chief Richard J. Meder; the Moorestown Police Department under the direction of Chief Lee R. Lieber; the Florence Police Department under the direction of Chief John Bunce; and the Lumberton Police Department under the direction of Chief Tony Diloreto, with the investigation leading to today’s sentencing.
The government is represented Senior Litigation Counsel Jason M. Richardson of the U.S. Attorney’s Office in Camden, as well as Assistant U.S. Attorney Sarah Devlin of the Office’s Asset Forfeiture and Money Laundering Unit.Defense counsel: Gilbert J. Scutti Esq., Voorhees, New Jersey
Owners of Maryland Auto Parts Company Indicted for Tax FraudRead the Press Release
A federal grand jury sitting in Greenbelt, Maryland, returned an indictment, which was unseal today, charging a married couple with conspiracy to defraud the United States and four counts of filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert K. Hur for the District of Maryland.
According to the indictment, Robert M. Underwood and Deborah J. Underwood, operated a used automobile parts and scrap metal business in Clinton, Maryland from 2009 through 2012 under the names “B Underwood’s Used Auto Parts” and “B Underwood Used Auto Parts, LLC.” The business allegedly purchased used and salvage cars, stripped them for parts to resell, and sold the remains to a Baltimore-based scrap yard.
The indictment charges that the Underwoods conspired to conceal the receipt of cash from the sale of scrap metal from their accountants and from IRS auditors. The indictment further alleges that the Underwoods filed false tax returns that did not include all the gross receipts of their business.
If convicted, the Underwoods face a maximum penalty of five years in prison for the conspiracy count and three years in prison for each false tax return count. They also face a period of supervised release, restitution, and monetary penalties. An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hur thanked special agents of IRS Criminal Investigation, who investigated the case, and Assistant U.S. Attorney David I. Salem and Tax Division Trial Attorney Michael Vasiliadis, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Owners of Maryland Auto Parts Company Indicted for Tax FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – A federal grand jury has indicted Robert M. Underwood, age 71, and his wife Deborah J. Underwood, age 62, both of Clinton, Maryland on charges of conspiracy to defraud the United States and four counts of filing false tax returns.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the indictment, the Underwoods operated a used automobile parts and scrap metal business in Clinton, Maryland from 2009 through 2012 under the names “B Underwood’s Used Auto Parts” and “B Underwood Used Auto Parts, LLC.” The business allegedly purchased used and salvage cars, stripped them for parts to resell, and sold the remains to a Baltimore-based scrap yard.
The indictment charges that the Underwoods conspired to conceal the receipt of cash from the sale of scrap metal from their accountants and from IRS auditors. The indictment further alleges that the Underwoods filed false tax returns that did not include all the gross receipts of their business.
If convicted, the Underwoods face a maximum penalty of five years in prison for the conspiracy count and three years in prison for each false tax return count. They also face a period of supervised release, restitution, and monetary penalties.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur and Principal Deputy Assistant Attorney General Zuckerman thanked Special Agents of IRS Criminal Investigation, who investigated the case. Mr. Hur thanked Assistant U.S. Attorney David I. Salem and Tax Division Trial Attorney Michael Vasiliadis, who are prosecuting the case.
Occupational Therapist Owner of TSM Sentenced for Making False and Fraudulent Statements Related to Health Care BenefitsRead the Press Release
GREENEVILLE, Tenn. – On April 16, 2018, Jose Penaranda Tan, 58, of Morristown, Tennessee, was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 12 months and one day in federal prison. In addition to his prison sentence, Tan must also pay restitution to Medicare, Medicaid (known as TennCare in the state of Tennessee), Cigna, Optum, and Blue Cross Blue Shield (BCBS) of Tennessee in an amount to be determined by Judge Greer.
Tan pleaded guilty in June 2017 to one count of a 35-count indictment charging him with health care fraud, false statements related to health care matters, and aggravated identity theft.
Tan was the owner and operator of Therapeutic Services of Morristown (TSM), a clinic providing occupational, physical, and speech therapy services, specializing in pediatric care. He worked at TSM as a therapist and as a supervisor of various employees, including the therapists and administrative assistants who were responsible for submitting bills to Medicare, TennCare, and private health insurance companies. A detailed account of his offenses is included in the indictment and plea agreement on file with the U.S. District Court.
Tan admitted that over the course of more than two years, he submitted, or caused to be submitted, almost 10,000 false and fraudulent claims to government and private insurers, totaling approximately $1 million. He instructed employees to bill insurers as if TSM therapists were providing individualized therapy sessions to patients, when in fact Tan directed therapists to treat patients in group settings. By falsely claiming that TSM therapists were providing individual therapy, rather than group therapy, Tan was able to secure higher rates of reimbursement from Medicare, TennCare, Cigna, Optum, and BCBS. Additionally, Tan knowingly and fraudulently used the National Provider Identifiers of former therapist employees to bill for therapy services that were provided by non-credentialed therapy assistants, rather than by qualified and credentialed therapists.
This fraud resulted in Medicare, TennCare, Cigna, Optum, and BCBS paying approximately $400,000 to TSM, to which the clinic was not entitled.
“The U.S. Attorney’s Office will continue to pursue charges against health care providers in the Eastern District of Tennessee who fraudulently bill and obtain payments from our federal healthcare benefit programs, such as Medicare and Medicaid, for services not provided. We will use all resources available to ensure the government is reimbursed for funds owed by these individuals and entities who receive payments to which they were not entitled,” said U.S. Attorney J. Douglas Overbey.
This therapist stole the identities of licensed providers and used them to obtain payments from federal health programs,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General in Atlanta. “He cheated his patients out of the care they deserved and is now paying the price for his actions.”
This case was investigated by the Department of Health and Human Services – Office of the Inspector General and the Tennessee Bureau of Investigation. Assistant U.S. Attorneys David Gunn and T.J. Harker represented the United States.
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North Versailles Felon Will Spend 44 Months in Prison for Illegally Possessing Pistols and AmmunitionRead the Press Release
PITTSBURGH, PA - A resident of North Versailles, Pennsylvania, has been sentenced in federal court to 44 months’ imprisonment followed by three years’ supervised release and was ordered to pay a special assessment of $100 on his conviction of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Antoine Walls, age 24.
According to information presented to the court, on August 25, 2016, Walls possessed a Glock 23 .40 caliber pistol, a Glock 27 .40 caliber pistol, and numerous rounds of .40 caliber ammunition. It is unlawful for Walls, who has previously been convicted of a felony offense, to possess a firearm and ammunition.
Assistant United States Attorney Heidi M. Grogan prosecuted this case on behalf of the government.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The Federal Bureau of Alcohol, Tobacco, Firearms and Explosives and the Leet Township Police Department conducted the investigation leading to the successful prosecution of Antoine Walls.
North Suburban Bookkeeper Pleads Guilty to Causing More Than $24 Million in Tax Losses from Fraudulent Tax SchemesRead the Press Release
CHICAGO — The bookkeeper for two Chicago-area staffing companies has admitted in federal court that he conspired to defraud the IRS for at least a decade by falsifying corporate tax returns and W-2 forms to reduce the taxes assessed against the companies and their owners.
BARRY POTICHA, 73, of Northbrook, pleaded guilty Monday to one count of conspiracy to defraud the United States. Poticha admitted in a plea agreement that he caused a total federal tax loss of more than $24 million.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Gabriel Grchan, Special Agent-in-Charge, IRS Criminal Investigation, Chicago Field Office. The government is represented by Assistant U.S. Attorney Kathryn E. Malizia.
Poticha admitted that beginning no later than 2000 and continuing through December 19, 2011, he conspired with an independent contractor to falsify information supplied to the IRS in the quarterly Employment Tax Returns (Form 941) filed by the companies, as well as in false W-2 forms the companies provided to their employees and the IRS. When employees discovered discrepancies in the W-2 forms, Poticha issued letters to conceal the fraud. This conduct resulted in a federal tax loss of approximately $24,450,609.
In addition to defrauding the IRS for the benefit of the employers and their owners, Poticha also admitted filing false personal income tax returns on his own behalf for tax years 2010 through 2015. In each of these years, Poticha fraudulently underreported his own income and over-reported his income tax withholding, resulting in a federal tax loss of $341,621 and a state tax loss of $32,604.
The conviction is punishable by up to five years in prison. The Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
U.S. District Judge Gary Feinerman set sentencing for Aug. 14, 2018, at 10:30 a.m.
New Orleans Man Pleads Guilty to Drug Conspiracy and Firearms OffensesRead the Press Release
U.S. Attorney Duane A. Evans announced that CHRIS WELLS, age 34, of New Orleans, pled guilty to several drug and firearms charges, including conspiracy to distribute and possess with intent to distribute one hundred grams or more of heroin and possessing a firearm in furtherance of a drug trafficking crime.
According to court documents, In March of 2017, members of the NOPD/HIDTA Task Force received information from a source of information that three individuals, including WELLS, were heroin distributors in the area of Mandeville Street and Derbigny Street in New Orleans.
On April 13, 2017, officers conducted surveillance of the individuals and observed WELLS conduct a hand-to-hand narcotics transactions with several individuals. As the officers continued their surveillance, they observed WELLS drive to Chalmette, Louisiana and return to New Orleans where an individual entered WELLS’s vehicle. After a brief period, the individual exited WELLS’s vehicle and walked toward the intersection of Frenchman and St. Claude Street. Officers approached the individual, who attempted to run but fell down and spilled approximately an ounce of heroin that he purchased from WELLS. In a post-arrest statement, the individual admitted that he routinely purchased heroin by calling one telephone that was shared by WELLS and two other persons. According to the individual, any one of the three would answer the phone and sell him an ounce of heroin on a weekly basis.
Officers and DEA Special Agents obtained a search warrant for WELLS’s residence at 406 East Liberaux Street in Chalmette, Louisiana. During the search, officers and agents seized 70 grams of heroin, 38 grams of cocaine base (“crack”), and a Smith & Wesson 9 mm semi-automatic pistol.
WELLS faces a minimum term of fifteen years’ imprisonment and a maximum of life imprisonment. U.S. District Judge Carl J. Barbier set sentencing for July 12, 2018.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration, the New Orleans Police Department, and the St. Bernard Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney André Jones is in charge of the prosecution.
New Haven Man Sentenced to 41 Months in Prison for Role in Armed Robbery of Hamden Video Game StoreRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DARIS SNOW, also known as “Eagle,” 25, of New Haven, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 41 months of imprisonment, followed by three years of supervised release, for participating in the armed robbery of a Hamden store in April 2016.
According to court documents and statements made in court, at approximately 4:22 p.m. on April 27, 2016, two men and two women, who had their head and faces partially concealed, entered the Game X Change in Hamden. One of the men pulled out a gun and ordered the store’s three employees to get down on the ground. The man with the gun put his foot on an employee’s back and pressed the gun against the employee’s head and neck, threatening to kill the employee if he did not give him money and the keys to the display case. The employee complied and the four suspects took several items, including cellular telephones, an iPad, an iPod, “Beats” headphones, and a cash box that contained $830. The four ran out of the store to a waiting car.
Investigators subsequently identified SNOW, Rashon Gray, Tracey Biggs and Keara Northrup as the individuals who committed the armed robbery of the store. Gray brandished the firearm and threatened the store employee, SNOW pretended that he had a gun and took the cash box, and Biggs and Northrup stole merchandise. Investigators also learned that SNOW made threatening statements to and about one of the women who participated in the robbery with him.
SNOW has been detained since his arrest on June 2, 2017. On November 27, 2017, he pleaded guilty to one count of Hobbs Act Robbery
Gray, Biggs and Northrup all pleaded guilty to related charges. On April 9, 2018, Gray was sentenced to 77 months of imprisonment. Biggs and Northrup await sentencing.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hamden Police Department, with the assistance of the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
New Charge Filed Against Man Who Attempted to Bomb Downtown Oklahoma City BankRead the Press Release
OKLAHOMA CITY — A federal grand jury has returned a superseding indictment against Jerry Drake Varnell, 24, of Sayre, Oklahoma, for attempting to use a weapon of mass destruction at BancFirst in downtown Oklahoma City, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
The FBI arrested Varnell at approximately 1:00 am on August 12, 2017, after he allegedly attempted to detonate what he believed to be an explosives-laden van he had parked in an alley next to BancFirst, at 101 North Broadway. The arrest was the culmination of a long-term domestic terrorism investigation involving an undercover operation, during which Varnell had been monitored closely for months as the alleged bomb plot developed. The explosives were inert, and the public was not in danger. FBI had received information that Varnell initially wanted to blow up the Federal Reserve Building in Washington, D.C., with a device similar to the 1995 Oklahoma City bombing because he was upset with the government. Varnell has been in federal custody since his arrest.
On October 17, 2017, a federal grand jury charged Varnell with attempting to use an explosive device to damage and destroy BancFirst’s corporate offices. If convicted of that charge, he would face a maximum sentence of 20 years in prison and a mandatory minimum sentence of five years’ imprisonment. He would also be subject to supervised release for up to life.
Today’s superseding indictment adds a second charge: attempting to use a weapon of mass destruction, in particular an explosive or incendiary bomb, against property used in interstate commerce. If convicted of this new charge, he would face a maximum sentence of life in prison.
This investigation was conducted by the FBI Joint Terrorism Task Force, including members from the Oklahoma City FBI; Homeland Security Investigations, part of the U.S. Department of Homeland Security; the Oklahoma City Police Department; the Edmond Police Department; the Oklahoma Highway Patrol; the Oklahoma Bureau of Narcotics and Dangerous Drugs; and the Oklahoma State Bureau of Investigation. The FBI worked in conjunction with BancFirst during the investigation. Oklahoma District Attorney Angela Marsee, of District 2, also provided assistance. The case is being prosecuted by Assistant U.S. Attorneys Matt Dillon and Mark R. Stoneman, with assistance from the Justice Department’s Counterterrorism Section.
The public is reminded that these charges are merely allegations and that Varnell is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Reference is made to court records for further information.
Mooresboro, North Carolina, Woman Sentenced to Prison for Tax EvasionRead the Press Release
Columbia, South Carolina –------- United States Attorney Beth Drake announced today that Kelly Sue Reynolds, age 52, of Mooresboro, North Carolina, has been sentenced to 24 months in federal prison for tax evasion. Reynolds was sentenced by District Judge Timothy M. Cain in Anderson, South Carolina, who further ordered that upon her release from prison Reynolds is to serve a term of three years supervised release. Additionally, she is to make restitution totaling $556,760.03.
Assistant United States Attorney David C. Stephens of Greenville prosecuted the case. At the guilty plea he advised the court of the following facts. Reynolds was the bookkeeper for a firm located in Cherokee County, South Carolina. As part of her duties Reynolds paid bills for the firm, including the payment of various Federal Taxes. In 2014 the Internal Revenue Service (IRS) did an audit of the firm that Reynolds worked for due to the fact that certain taxes had not been paid. During the course of the audit Reynolds admitted that over a five year period she had embezzled $439,459.97 from her employer. She further stated that she had covered up the embezzlement by falsifying the books, showing that she had paid bills which she had in fact not paid. Included in the unpaid bills were the missing taxes which started the investigation. It was further determined that Reynolds had not filed personal tax returns during those years that she was embezzling funds and that based on her salary and the money she stole she owed the IRS $117,300.06 in personal income taxes. US Attorney Drake explained that income taxes are due both on illegally obtained funds as well as those legitimately earned.
U.S. Attorney Drake commended the IRS for their dedicated work on this and all of the cases they investigate in South Carolina each year.
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Mishawaka Man SentencedRead the Press Release
SOUTH BEND – Deandre Watson, 38, of Mishawaka, Indiana, was sentenced before South Bend District Court Judge Robert Miller, Jr for being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Watson was sentenced to 88 months imprisonment followed by 18 months of supervised release.
According to documents in this case, on September 30, 2016, Watson believing a man acted inappropriately towards his daughters, sought out that man in a nearby apartment building despite the fact that Watson had made a police report about that man earlier that day. Watson visited the man’s apartment with his daughters as well as a loaded 9mm handgun. Wilson hit the man with the firearm and locked the man in the trunk of his own car. The man’s girlfriend called police who arrived at the scene. Watson has been convicted of three other felony offenses prior to this incident.
This case was investigated by the ATF with the assistance of the Mishawaka and South Bend Police Departments. The case was handled by Assistant U.S. Attorney Molly E. Donnelly.
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Mexican National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Mexican national was sentenced today in federal court in Boston for illegally reentering the United States after being deported.
Juan Carlos Cervantes-Rivera, 30, a Mexican national residing in Chelsea, was sentenced by U.S. District Court Judge Richard G. Stearns to eight months in prison and one year of supervised release. Cervantes-Rivera will be subject to deportation proceedings upon completion of his sentence. In January 2018, Cervantes-Rivera pleaded guilty to one count of illegal reentry of a deported alien.
Law enforcement encountered Cervantes-Rivera in Cambridge on Oct. 26, 2017, and determined him to be illegally present in the United States. Cervantes-Rivera was previously deported on four occasions.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.
Meth Trafficker Handed Significant SentenceRead the Press Release
CORPUS CHRISTI, Texas – A 44-year-old Richardson man has been ordered to federal prison following his conviction of possession with intent to distribute methamphetamine, announced U.S. Attorney Ryan K. Patrick. Michael Cipriano pleaded guilty Dec. 18, 2017.
Today, Senior U.S. District Judge John Rainey sentenced Cipriano to 210 months imprisonment followed by five years of supervised release.
On July 26, 2017, law enforcement officers had received information that a vehicle would be travelling from Dallas to deliver methamphetamine to a location in Corpus Christi. As agents were conducting surveillance, Cipriano arrived at the location, at which time officers attempted to conduct a traffic stop of the vehicle. He then quickly fled the location, but Cipriano was quickly apprehended a short distance away without incident.
When officers searched the vehicle, they discovered a large plastic bag that contained a white crystal substance, which tested positive for methamphetamine. Laboratory analysis confirmed the substance had a purity of 97% and contained 967 grams of pure methamphetamine.
Cipriano has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future.
The Drug Enforcement Administration, Texas Department of Public Safety and the Corpus Christi Police Department. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Memphis Securities Broker-Dealer Indicted for Embezzling $5.7 Million from Employee Pension Benefit PlanRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that John Sherman Jumper, age 52, of Memphis, Tennessee was indicted on April 12, 2018, by a federal grand jury for embezzling $5.7 million from the pension benefit plan for employees of Snowshoe Refractories, a fire brick manufacturer located in Clarence, Centre County, Pennsylvania.
According to United States Attorney David J. Freed, the indictment alleges that Jumper, a securities broker based in Memphis, Tennessee, forged signatures on fraudulent documents that purportedly authorized him to transfer funds from the pension plan on three separate occasions between March 2015 through April 2016. The indictment also alleges that Jumper used the embezzled funds to make unauthorized loans and investments for the purchase of a tubing plant in Arkansas and three other business, to pay off $1.2 million of his personal loans, and to cover his personal legal fees. The indictment further alleges that Jumper received a personal interest in the businesses purchased with the embezzled pension funds, and his securities company, Alluvion Securities in Memphis, received over $1 million in fees from the sale of the Arkansas tubing plant.
The indictment alleges that the Snow Shoe Refractories Employee Pension Plan for Hourly Employees included about 129 active and retired employees. At the time the alleged $5.7 million embezzlement began, the pension plan assets were worth approximately $9.8 million.
The indictment charges Jumper with four counts of wire fraud, three counts of embezzlement from an employee pension benefit plan, and five counts of false statements and concealment of facts in pension benefit plan records.
The case was investigated by the Federal Bureau of Investigation, with the assistance of the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), the Financial Industry Regulatory Authority (FINRA), and the United States Securities and Exchange Commission. Assistant U.S. Attorney George J. Rocktashel is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 65 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Marion County man sentenced for firearm chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Rocmond Lewis, Sr., of Fairmont, West Virginia, was sentenced today to 18 months incarceration for an illegal firearm charge, United States Attorney Bill Powell announced.
Lewis, age 41, pled guilty to one count of “Unlawful Possession of a Firearm” in December 2017. Lewis, having previously being convicted of a felony in the Circuit Court of Marion County, West Virginia, admitted to possessing a .45 caliber pistol, a 9mm pistol, and a .380 caliber pistol. The crime occurred in March 2017 in Marion County.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.Major Takedown Dismantles Multi-State Heroin and Fentanyl NetworkRead the Press Release
United States Attorney Mike Stuart announced today a major takedown of drug traffickers and related drug networks recently indicted by a federal grand jury in Huntington, as well as other narcotics, violent crime and firearm related targets. Joining United States Attorney Stuart in the announcement were Drug Enforcement Administration Special Agent in Charge (SAC) Chris Evans, Federal Bureau of Investigation Assistant Special Agent in Charge (ASAC) Nick Boshears, Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge (SAC) Stuart Lowrey, Homeland Security Investigations Assistant Special Agent in Charge (ASAC) Dave Abbate, Huntington Mayor Steve Williams, Huntington Interim Police Chief Hank Dial, West Virginia State Police Captain Mike LaFauci, West Virginia National Guard Adjutant General James Hoyer, Cabell County Prosecuting Attorney Sean “Corky” Hammers, U.S. Marshal Michael Baylous, Cabell County Sheriff Chuck Zerkle, Wayne County Sheriff Rick Thompson, Marshall University Police Chief Jim Terry and AHIDTA State Director Kenny Burner.
In response to a growing opiate epidemic and violent crime in southern West Virginia, United States Attorney Stuart announced the formation of Project Huntington on March 15th alongside federal, state and local law enforcement partners. Today, in a takedown of federal and state targets, nearly 100 defendants have been targeted for arrest including the execution of Operation Saigon Sunset and related search warrants in Huntington, WV. It is believed that today’s actions will result in the dismantling of the Peterson Drug Trafficking Organization (DTO), a major multi-state heroin and fentanyl distribution network. In addition to the dismantling of the Peterson DTO, federal, state and local law enforcement are executing arrests for related violent elements including narcotics and firearms targets.
Today’s actions break down as follows:
- At least 15 individuals involved in the Peterson DTO have been charged in a federal indictment in the Southern District of West Virginia with conspiracy to distribute heroin and fentanyl;
- 15 individuals involved in the Peterson DTO were indicted yesterday in Cabell County Circuit Court on state charges;
- Additional members of the Peterson DTO will be arrested and charged in Detroit;
- 13 individuals involved in narcotics and/or firearms that have been charged in federal indictments in the Southern District of West Virginia; and
- At least 48 individuals are targeted for arrest on various narcotics, violent crime, and firearms related charges at the federal or state level as determined by the circumstances of each matter.
As an indication of the scale of the operation, over 200 federal, state and local law enforcement officers took part in today’s take-down effort. The West Virginia National Guard also provided a number of personnel in a support function to the operation.
Today’s actions would not have been possible without the seamless collaboration of federal, state, and local law enforcement agencies. The investigation was led by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West, with assistance from the Michigan State Police and the Ohio Highway Patrol. The U.S. Attorney’s Office for the Southern District of West Virginia and the Eastern District of Michigan, as well as the Cabell County Prosecuting Attorney’s Office, worked together hand-in-hand to remove these dangerous drug traffickers from the streets of Huntington and Detroit.
In conjunction with the arrest and search warrants executed in Huntington today, it is anticipated federal authorities in Detroit will soon be executing additional arrest warrants and search warrants. Additional charges will be brought against individuals in the Eastern District of Michigan.
“Our great country has never seen drug deaths like we’re seeing today,” Attorney General Jeff Sessions said. “Under President Trump’s strong leadership, the Department of Justice has taken historic new actions to put drug traffickers in jail and keep dangerous drugs out of the wrong hands. I want to thank all of our partners at DEA, FBI, ATF, the Marshals Service, Homeland Security Investigations, as well as our fabulous partners at the state and local levels for their hard work. Today’s charges against at least 90 defendants will help make the people of West Virginia and Michigan safer from the threat of dangerous drugs—and they bring us one step closer to ending the opioid epidemic.”
“Today’s actions have removed from our streets enough fentanyl to kill more than 250,000 people and massive amounts of other drugs that would have wreaked havoc and misery on our good citizens. Today is a turning point for the City of Huntington and in the war against the opiate nightmare,” said US Attorney Stuart. “Best yet, today’s actions have resulted in the destruction of a supply network, the supplier of suppliers of illicit drugs. The peddlers of poisons like heroin and fentanyl are in the crosshairs of this Administration and law enforcement. We still have work to do but the days of havoc, chaos and misery caused by the peddlers of illicit poisons are soon to be over.”
“Today, on tax day, the citizens of Huntington and the surrounding area got their money’s worth, said Huntington Mayor Steve Williams. “Thanks to the coordination of our federal, state and local law enforcement agencies our city is safer. I thank United States Attorney Mike Stuart and Major General Jim Hoyer of the West Virginia National Guard for their steadfast support. The men and women of every law enforcement agency are owed a monumental debt of gratitude for placing their lives in harm’s way to make our families safe.”
The investigation revealed that the Peterson DTO had been operating in Huntington for nearly 15 years, trafficking large amounts of heroin, fentanyl, and cocaine from Detroit to be sold in Huntington in street-level gram quantities. In August 2017, investigators with the Violent Crime and Drug Task Force West (“VCDTFW”) executed a search warrant at Manget Peterson’s residence and an associated hotel room, where Manget Peterson’s workers were distributing heroin. These searches resulted in the seizure of two handguns, over seventy half gram baggies of heroin ready for distribution, and other evidence of drug trafficking. Manget Peterson’s brother, Willie Peterson, was identified as the leader and drug supplier of the organization. Multiple sources advised that the Peterson DTO distributed kilogram quantities of heroin in Huntington, West Virginia, on nearly a weekly basis, using a network of re-distributors.
Law enforcement learned that the DEA in Detroit had opened an investigation into Willie Peterson, after a search of his residence in July 2017 resulted in the seizure of over 360 grams of fentanyl. The DEA’s investigations in West Virginia and in Detroit have resulted in investigators seizing additional drug loads and to the identification of two of Willie Peterson’s drug suppliers in Detroit, Michigan. As of April 3, 2018, law enforcement has seized approximately 760 grams of suspected heroin, 450 grams of suspected fentanyl, and 167 grams of suspected cocaine. The fentanyl seized prior to today’s actions could have resulted in the death of more than 250,000 people.
This morning, Manget Peterson was apprehended in Huntington and his brother, Willie Peterson, was apprehended in Detroit. Malcolm Simmons was also arrested in Detroit this morning.
According to Chris Evans, Special Agent in Charge of DEA’s Louisville Division Office, “Today’s round-up sends a clear message to the people of Huntington and all of West Virginia: drug traffickers who come here to destroy our communities will be aggressively pursued by DEA, in conjunction with West Virginia’s federal, state and local law enforcement components.”
“ATF is committed to working with our federal, state and local law enforcement partners and the United States Attorney’s Office to reduce violent crime in Huntington,” said Stuart Lowrey, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in West Virginia and Kentucky. “Together we will identify and investigate armed violent offenders and their illicit sources of guns. Traffickers and triggerpullers – beware.”
“We are building a collaborative approach here in Huntington,” said Interim Huntington Police Chief Hank Dial. “Day in and day out we go after criminals who are bringing these drugs into our community and work to get people into much needed treatment. We greatly appreciate our state and federal partnering agencies bringing their powerful resources to our community. There is one thing the good people of Huntington and the bad people in Huntington have in common, they both deserve today.”
In the Southern District of West Virginia, 15 individuals have been charged in a federal indictment with conspiracy to distribute heroin and fentanyl. The investigation is ongoing and could result in additional federal and state charges in the future.
Please Note: An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.Long Island Bloods Gang Member Indicted for Murder and RacketeeringRead the Press Release
A seven-count indictment was unsealed today in federal court in Central Islip charging Bloods gang member Lawrence Lewis, also known as “L Boogs,” with the July 29, 2017 murder of John Birt, firearms offenses, and narcotics possession and distribution. Lewis was arrested yesterday and is scheduled to be arraigned this afternoon before United States District Judge Joanna Seybert.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Angel M. Melendez, Special Agent-in-Charge, United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York, Timothy D. Sini, District Attorney for Suffolk County, and Geraldine Hart, Acting Commissioner, Suffolk County Police Department (SCPD), announced the charges.
“As alleged, this Bloods member committed a senseless murder in furtherance of his violent gang,” stated United States Attorney Donoghue. “The defendant’s arrest should send a loud and clear message that this Office, working collaboratively with our federal and local law enforcement partners, is committed to eradicating gang violence on Long Island and throughout our district, to make our communities safer.”
“The simple act of taking a photo ended in a man losing his life, all because a gang member was allegedly offended and decided to retaliate,” stated FBI Assistant Director-in-Charge Sweeney. “It’s hard to fathom how the suspect in this case weighed exposing his illegal drug trade, and his illegal weapons because he wanted to prove how tough he is to his rivals. The FBI Long Island Gang Task Force is committed to rooting out the violent gangs and their destructive behavior in our communities.”
“Once murder is added to the list of allegations against Lewis, it is evident that the alleged distribution of large amounts of cocaine and heroin in Long Island neighborhoods was only the tip of his criminal activity,” stated HSI Special Agent-in-Charge Melendez. “We will not stand by while violent gang members roam free in our communities. Lewis had little regard for the life he took or the lives he affected by dealing drugs, and he will now need to face the consequences of his crimes.”
“It is a top priority of the Suffolk County District Attorney’s Office to prosecute members of dangerous, violent street gangs to the fullest extent of the law,” stated Suffolk County District Attorney Sini. “This individual showed a total disregard for human life and for the law, which will not be tolerated. Today’s indictment is a reinforcement of our Office’s commitment to combating gang violence in our communities and our dedication to working collaboratively with our law enforcement partners to keep Suffolk County residents safe.”
“The Suffolk County Police Department will continue working with our law enforcement partners to bring criminal gang members and their associates to justice,” stated SCPD Acting Commissioner Hart. “The arrest of this murderer will send yet another powerful message to gangs across Long Island that illegal activities will not be tolerated.”
According to the indictment and statements made during the arraignment, between January 2016 and March 2018, Lewis utilized his membership in the Bloods street gang to distribute large quantities of cocaine base and heroin in Suffolk County. In order to protect his supply of narcotics and secure his ability to distribute his narcotics, Lewis possessed a number of firearms, including a Mossberg .22 caliber rifle and a Ruger .45 caliber semi-automatic pistol.
On July 29, 2017, Birt and several friends were posing for a photo at the Illusions Gentlemen’s Club in Deer Park when they were approached by an associate of Lewis who was also a member of the Bloods. The associate attempted to display a Bloods gang hand signal in the photo and a dispute ensued. Lewis pulled out a handgun and fatally shot Birt.
If convicted, Lewis faces a maximum term of life imprisonment.
The charges in the indictment are merely allegations, and the defendant is presumed to be innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Christopher C. Caffarone, Mark E. Misorek and Special Assistant United States Attorney Kathleen A. Kearon are in charge of the prosecution.
The Defendant
LAWRENCE LEWIS
Age: 36
Residence: Calverton, New YorkE.D.N.Y. Docket No. 18-CR-187 (JS)
Local Businessman Sentenced for Credit Card Fraud and ID TheftRead the Press Release
CORPUS CHRISTI, Texas – The owner of American Auto Pros in Corpus Christi has been ordered to federal prison after admitting he used numerous credit card accounts belonging to others in order to obtain things of value without authorization, announced U.S. Attorney Ryan K. Patrick. Antonio Arteaga, 38, of Corpus Christi, pleaded guilty Nov. 2, 2017, to one count of credit card fraud and one count of aggravated identity theft.
Today, Senior U.S. District Judge Hilda G. Tagle handed Arteaga a 12-month sentence for the credit card fraud as well as a consecutive 24 months for the identity theft. The total sentence of three years will be immediately followed by an additional three years of supervised release. He was further ordered to pay restitution to his victims. In handing down the sentence, Judge Tagle noted she could put herself in the victims’ shoes, citing one victim that learned of the fraud when her credit card was declined at a gas pump and the ripple effect of bounced checks and missed payments which would follow the victims of his fraud. Judge Tagle went on to explain that Arteaga’s customers relied on his honesty in taking their credit cards as payment and the entire credit card system counts on the honesty of merchants.
Arteaga was arrested Aug. 18, 2017, following an investigation into a series of fraudulent ATM withdrawals in Corpus Christi and surrounding areas. Many of the victims had been customers at Arteaga’s business, American Auto Pros. Authorities executed a search warrant at the business which led to the discovery of a credit card processing pad that was connected to a laptop computer in the office. This allowed Arteaga to illegally capture the account information and PIN numbers of credit and debit cards used there.
During a subsequent search of Arteaga’s home, law enforcement found a magnetic strip encoder that had been used to replace the information on the magnetic strip of gift cards with the compromised credit and debit card numbers. Agents also found numerous altered gift cards with the encoder at Arteaga’s house and additional gift cards illegally re-encoded with victim’s credit card information in Arteaga’s vehicle and wallet.
Agents determined that between Dec. 10, 2016, and Aug. 18, 2017, Arteaga unlawfully used the credit and debit card information of dozens of American Auto Pros customers to withdraw tens of thousands of dollars from his victims’ accounts.
Arteaga was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Secret Service conducted the investigation with the assistance of the Corpus Christi Police Department. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Lincoln Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Joseph P. Kelly announced that on April 17, 2018, David L. Bice, 41, of Lincoln was sentenced to 21 years and 10 months, (262 months), in prison for possession with intent to distribute more than 50 grams of actual (pure) methamphetamine. Following the prison term, Bice will serve five years on supervised release.
On May 27, 2016, Lincoln Police Department officers who were conducting surveillance on his residence, saw Bice leave his Lincoln apartment. They followed him to a local convenience store where they engaged in a conversation with him. Bice denied knowledge of drug activity but admitted he had an estimated two ounces of methamphetamine in his apartment. He went back to his apartment with the officers and turned over 73 grams of actual (pure) methamphetamine to the officers along with a digital scale and packaging materials.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lexington Business Owner Sentenced for Failing to Pay $1.7 Million in Payroll TaxesRead the Press Release
KANSAS CITY, Mo. – A Lexington, Mo., business owner was sentenced in federal court today for failing to pay over to the IRS nearly $1.7 million in payroll taxes.
Randy K. Small, 51, of Lexington, was sentenced by U.S. District Judge Gary A. Fenner to three years in federal prison without parole. The court also ordered Small to pay $1,694,725 in restitution.
On June 20, 2017, Small pleaded guilty to failure to pay over to the IRS the payroll taxes of his employees.
Small is the owner of RSB Leasing, a transportation business that has provided school bus service to multiple school districts in Missouri (including the Buchanan County R-IV School District, the Lexington, Mo., R-5 School District and the Hardin-Central C-2 School District). Small operated the business under three different names, and failed to fully pay employment taxes for each of the three businesses. At the time of his guilty plea, Small admitted that his criminal conduct resulted in an aggregate tax loss of at least $1,457,483.
According to court documents, however, Small has continued to violate tax laws since his change-of-plea hearing. IRS investigators uncovered $237,242 in additional tax harm for employment taxes that were not paid over to the IRS for employees of RSB Leasing, resulting in a total tax liability amount of $1,694,725.
Small operated the business under the name Hill Transportation, Inc., from 2005 through February 2010. After accruing over $300,000 in employment tax liability, Small discontinued operations under Hill Transportation and began operating under the name SPYKE, LLC. After accruing over $1 million in employment tax liability, Small discontinued operations under SPYKE in 2012. Finally, Small operated under the name RSB Leasing which has continued to accrue tax liability.
Small admitted that he did not deposit the Federal Insurance Contributions Act and Medicare (FICA) taxes or the income taxes that he withheld from his employees’ wages, nor did he pay the employer portion of FICA.
While accruing employment tax liabilities, Small withdrew significant amounts of cash, purchased new buses and maintained a personal collection of cars. From 2009 through 2011, Small withdrew $286,052 from the business bank account in the form of cash and cashier’s checks payable to himself. Small spent an additional $147,000 to purchase new buses for the business.
During the time period when Small was not paying his taxes, he purchased and maintained a 1998 Lamborghini Diablo SV. On April 13, 2017, about two months prior to his guilty plea, Small sold the Lamborghini for approximately $115,000 and had the proceeds from the sale wired to the business bank account of RSB Leasing. Small failed to disclose the transaction to the government and he has not used any of the proceeds to pay the taxes he owes. Instead, according to documents provided by the IRS, Small engaged in a series of banking transactions to further conceal the proceeds and evade payment to the IRS.
According to court documents, Small filed for bankruptcy with the intent to hinder the collection efforts of the IRS and obstruct the IRS’s ability to collect payment from the foreclosure sale of a parcel of land. The bankruptcy petition was dismissed on Oct. 30, 2017.
This case was prosecuted by Assistant U.S. Attorney Brent Venneman. It was investigated by IRS-Criminal Investigation.
Kewa Pueblo Man Pleads Guilty to Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Emery Calabaza, 59, an enrolled member and resident of Kewa Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to an aggravated sexual abuse of a minor charge. Under the terms of his plea agreement, Calabaza will be sentenced within the range of 180 to 240 months in federal prison followed by a term of supervised release to be determined by the court. Calabaza also will be required to register as a sex offender.
Calabaza was arrested in June 2017, on a criminal complaint charging him with sexually abusing a Kewa Pueblo child under the age of 12 years on May 30, 2017. Calabaza was subsequently indicted on June 28, 2017. The indictment charged Calabaza with sexually abusing a minor under the age of 12 years on two occasions between May 1, 2017 and June 6, 2017, on Kewa Pueblo in Sandoval County, N.M.
During today’s proceedings, Calabaza pled guilty to a felony information charging him with aggravated sexual abuse. In entering the guilty plea, Calabaza admitted that between May 1, 2017 and June 6, 2017, he sexually abused the victim, who was under the age of 16-years-old. Calabaza remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Joseph M. Spindle pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was driven largely by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
KC Woman Sentenced for Embezzling $1 Million from Her EmployerRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., woman has been sentenced in federal court for a fraud scheme in which she embezzled more than $1 million from her employer.
Janee C. Rosenthal, 56, of Kansas City, was sentenced by Chief U.S. District Judge Greg Kays on Friday, April 13, 2018, to three years and two months in federal prison without parole. The court also ordered Rosenthal to pay $1,097,000 in restitution.
On Sept. 22, 2017, Rosenthal pleaded guilty to two counts of mail fraud and two counts of wire fraud.
Rosenthal worked as a controller and later as a division director for Firestone Optics, Inc., as wholesaler of contact lenses located in Kansas City, Mo. Rosenthal admitted that she embezzled $1,097,448 from the company over an approximately nine-year period from June 2007 to May 2016 in order to pay down balances on her personal credit card account. She used the funds for travel (including a Norwegian cruise), dining, house expenses, clothing, entertainment (including tickets for the Kansas City Royals and the Kansas City Chiefs), utilities, vehicle and fuel expenses, health and cosmetics, groceries, taxes, computer and electronics, jewelry and pet expenses.
Rosenthal issued and signed checks drawn on the company’s bank account and made payable to her personal credit card account. She also made wire fund transfers from the company’s bank account to her personal credit card account for personal goods and services that had been charged on her credit card. Rosenthal, who made 88 fraudulent transactions as part of her scheme, falsely represented in Firestone Optics’s accounting ledgers that certain of her personal expenditures were legitimate business expenses.
As of the date of the sentencing hearing, according to court documents, Rosenthal has not made a single payment towards the amount she owes her victims nor has she offered an apology to them.
This case was prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes IV. It was investigated by the FBI.
Justice Department Secures Denaturalization of Child Sexual Abuser and Four Somalia-Born Individuals Who Falsely Claimed to be a Family and Were Admitted to the United States on Diversity Immigrant VisasRead the Press Release
On April 11, the Department of Justice secured the denaturalization of two individuals – one convicted of engaging in sexual contact with a minor, and the other who fictitiously created a family to secure a Diversity Immigrant Visa. Judge Joe Fish of the U.S. District Court for the Northern District of Texas entered an order to revoke the U.S. citizenship of Emmanuel Olugbenga Omopariola, and Judge Susan Richard Nelson of the U.S. District Court for the District of Minnesota entered an order to revoke the U.S. citizenship of Fosia Abdi Adan.
The court found that prior to naturalizing, Omopariola, 61, engaged in sexual contact with a seven-year-old minor, which he admitted and for which he was later convicted. This prior conduct rendered Omopariola ineligible for applying for U.S. citizenship because he did not show the moral conduct necessary for naturalization. Additionally, throughout his naturalization proceedings Omopariola misrepresented and hid his unlawful activity.
During litigation, Adan, 51, conceded that she had procured her U.S. citizenship by willful misrepresentation and concealment of material facts, including the fraudulent nature of her relationship to individuals she claimed to be her children. In light of that admission, the court found that Adan had unlawfully procured her U.S. citizenship.
The denaturalization of Adan marks the culmination of the government’s case against four individuals—a purported husband, wife, and two sons—who unlawfully, knowingly, and fraudulently represented to immigration officials that they were a family in order to gain admission to the United States through the Diversity Immigrant Visa Program, which they later used to obtain U.S. citizenship. Judge Nelson entered orders revoking the naturalized U.S. citizenship of Adan’s purported husband, Ahmed Mohamed Warsame aka Jama Solob Kayre, 53, on February 27, 2018, and her purported sons, Mustaf Abdi Adan aka Mohamed Jama Solob, 33, and Faysal Jama Mire aka Mobarak Jama Solob, 31, on March 19, 2018. All four individuals consented to the entry of orders of denaturalization.
“The current immigration system is too often abused by fraudsters and nefarious actors. These cases are prime examples of the unfortunate fraud that is all too common within our immigration system,” said Attorney General Jeff Sessions. “The Department will continue to investigate and prosecute others who conceal their heinous crimes, and those who seek to rely on fraudulent relationships to become naturalized United States citizens.”
The Omopariola matter was referred to the Department of Justice by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI). The other four cases, United States v. Fosia Abdi Adan; United States v. Ahmed Mohamed Warsame; United States v. Mustaf Abdi Adan; and United States v. Faysal Jama Mire, were referred to the Department of Justice by the U.S. Department of State’s Diplomatic Security Service (DSS) and ICE, with investigative support from HSI and U.S. Citizenship and Immigration Services’ (USCIS) Fraud Detection and National Security Directorate.
"The integrity of our consular processes is a core element of U.S. national security,” said Assistant Secretary of State for Consular Affairs Carl Risch. “The Department of State works closely with the Justice Department efforts to detect, deter, and combat fraud related to U.S. travel documents. These denaturalizations demonstrate the value of this important interagency collaboration; a partnership that allows us to facilitate travel by qualified individuals in the context of ensuring a strong and secure U.S. border.”
The Texas case was investigated by HSI and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS). The case was handled by OIL-DCS’s National Security and Affirmative Litigation Unit and the U.S. Attorney’s Office for the Northern District of Texas, with support from ICE’s Office of the Principal Legal Advisor.
These Minnesota cases were investigated by DSS, ICE, USCIS, and the OIL-DCS. The cases were prosecuted by Senior Litigation Counsel Anthony D. Bianco and Trial Attorney Kathryne M. Gray of OIL-DCS, with support from Senior Attorney Lucia A. Fiorentino and former Attorney Sarah Mazzie of ICE’s Office of the Principal Legal Advisor, and DSS.
Jury Convicts Sacramento Man of Fraud in Connection with Arson SchemeRead the Press Release
SACRAMENTO, Calif. — After a four-day trial, a federal jury found Brian J. Stone, 59, of Sacramento, guilty today of 13 counts of wire and mail fraud, U.S. Attorney McGregor W. Scott announced.
According to evidence presented at trial, Stone devised a plan to get fire insurance money from State Farm based on false statements about who had performed cleanup work after a fire at 2764 Fulton Avenue in Sacramento in June 2013.
In late 2012, co-defendant Jamal Shehadeh had rented space at that location in the name of a supposed auto parts supply business. Stone, a disbarred attorney, had been helping Shehadeh unsuccessfully fight an eviction action during the months prior to the fire. On the night the eviction took effect, the fire occurred at 2764 Fulton, and the supposed auto parts business later filed an insurance claim with State Farm. While helping with the insurance claim, Stone recruited a local contractor to create a fake invoice and lie to State Farm regarding debris removal work performed after the fire. In a series of emails, Stone directed the local contractor to keep 10 percent of the money that they would get from State Farm from this fraud, and send the other 90 percent to Stone in a cashier’s check.
The scheme was uncovered when the local contractor reported it to State Farm. The FBI later executed search warrants of Stone’s office and email account, finding copies of documents outlining the fraud.
This case is the product of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Sacramento Fire Department; the Sacramento Metropolitan Fire Department; and the Sacramento Sheriff’s Department. Assistant U.S. Attorneys Michael D. Anderson and Christopher S. Hales prosecuted the case.
Two other defendants were charged in the same case. Jamal Shehadeh pleaded guilty to two counts of arson to commit a felony on February 10, 2018, including the 2764 Fulton Avenue fire, and was sentenced to 30 years in prison. Charges against Saber Shehadeh are pending with trial scheduled to start on May 14, 2018. The charges against Saber Shehadeh are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Stone is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on July 12, 2018. Stone faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of conviction. 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.
Indictment: Heroin Ring Operated in Kansas City, Kan.Read the Press Release
KANSAS CITY, KAN. – A federal grand jury indictment unsealed here today charges six men with conspiracy to distribute heroin in Kansas City, Kan., U.S. Attorney Stephen McAllister said.
Named in the 16-count indictment are the following defendants:
- George Bush, Jr., 28, Kansas City, Kan.
- Albert Brown, 29, Kansas City, Kan.
- Isaiah Lewis, 21, Kansas City, Kan.
- Maurice Bluett, 24, Kansas City, Mo.,
- Markelo Paden, 23, in custody in the Johnson County Jail.
- Benjamin Mims, 30, Lawrence, Kan.
All six defendants are charged in Count 1 with conspiracy to distribute heroin. Other counts include possession with intent to distribute heroin, unlawful possession of a firearm in furtherance of drug trafficking, and maintaining a residence in furtherance of drug trafficking.
Upon conviction, the crimes carry the following penalties:
Conspiracy to distribute heroin: Not less than five years and not more than 40 years in federal prison and a fine up to $5 million.
Possession with intent to distribute heroin: Up to 20 years and a fine up to $1 million.
Unlawful possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.
Maintaining a drug involved premises: Up to 20 years and a fine up to $500,000.
The FBI and the Internal Revenue Service investigated with assistance from the Douglas County Sheriff’s Office, the Kansas City, Kan., Police Department, the Lawrence Police Department and the Kansas City, Mo., Police Department. Special Assistant U.S. Attorney James Ward and Assistant U.S. Attorney Dave Zabel are prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Illegal Aliens Sentenced for Dealing Meth in NorfolkRead the Press Release
NORFOLK, Va. – Two illegal aliens, one of whom was previously convicted of an aggravated felony in Arizona and has been deported at least three times, have been sentenced to prison for dealing methamphetamine in Norfolk.
According to court documents, Jaime Sanchez-Huerta, aka “Carlos Slim,” 23, of Mexico, pleaded guilty to conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine and possession of a firearm by an illegal alien. Alejandro Rodriguez-Vargas, 34, of Mexico, pleaded guilty to conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine and illegal reentry by a deported alien.
According to court documents, on April 25, 2017, Norfolk Police arrested Sanchez-Huerta on his way to a drug deal in Norfolk. Sanchez-Huerta, an illegal alien, was in possession of a loaded .45 caliber pistol. Norfolk Police searched Sanchez-Huerta’s vehicle and hotel room and discovered $4,000 in cash, 4.5 grams of methamphetamine, marijuana, digital scales, and a box of .45 caliber ammunition. The following day, Norfolk Police searched a second hotel room tied to Sanchez-Huerta and discovered Rodriguez-Vargas, another illegal, and 137 grams of “Ice.” Rodriguez-Vargas has been deported at least three times before and he was previously convicted of re-entry by a deported alien subsequent to a conviction for an aggravated felony in Arizona in 2013.
Sanchez-Huerta was sentenced to 12 years and four months in prison today. Rodriguez-Vargas was sentenced to 10 years in prison on February 16. Both men will be deported upon completion of their sentences.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, and Larry D. Boone, Chief of Norfolk Police, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Darryl J. Mitchell prosecuted the case.
ICE’s Enforcement and Removal Operations and the Virginia Beach Police Department provided significant assistance with this investigation.
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. 2:17-cr-129.
Illegal Alien indicted on reentry chargeRead the Press Release
ELKINS, WEST VIRGINIA – A Mexican man has been indicted by a federal grand jury on a reentry charge, United States Attorney Bill Powell announced.
Victor Eduardo Zepeda-Garcia, also known as Victor Eduardo Garcia-Zepeda, age 31, a citizen of Mexico, was indicted on one count of “Reentry of Removed Alien.” Zepeda-Garcia, an illegal alien, is accused of reentering the United States after being removed in March 2016 near Del Rio, Texas. Zepeda-Garcia is accused of being in Lewis County, West Virginia on March 3, 2018.
Zepeda-Garcia faces up to two 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 Traci M. Cook is prosecuting the case on behalf of the government. The Department of Homeland Security, Immigrations and Customs Enforcement investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Illegal Alien Indicted for Reentering the United States and for Failing to Register as A Sex OffenderRead the Press Release
Orlando, Florida – A federal grand jury has returned an indictment charging Ramon Lopez-Alvarado (58), a citizen of Mexico, with illegally reentering the United States after deportation and failing to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA). If convicted, he faces a maximum penalty of 20 years in federal prison on the reentry count and up to 10 years in federal prison on the failure to register count.
According to the indictment, Lopez-Alvarado, an illegal alien, was previously convicted for committing a lewd act on a child and for failing to register as a sex offender. He was removed from the United States in 2013 and, on March 17, 2018, was found to be back in the United States without permission. Upon returning to the United States from Mexico, Lopez-Alvarado also failed to register as a sex offender and keep his registration current as required by SORNA.
An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and the U.S. Marshals Service. It will be prosecuted by Assistant United States Attorney Kara M. Wick.
Hartford Man Guilty of Federal Drug and Gun OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found JOSEPH STEELE, also known as “Joey,” 32, of Hartford, guilty of drug and firearm offenses. The trial before U.S. District Judge Michael P. Shea began on April 12 and the jury returned verdicts of guilty on three counts of a four-count indictment yesterday afternoon.
According to the evidence disclosed during the trial, on June 14, 2017, the Hartford Police Department’s Vice and Narcotics Unit received information that STEELE was in possession of a firearm while operating a white Cadillac. Investigators located the Cadillac and conducted a traffic stop at the intersection of Enfield Street and Capen Street. After STEELE consented to a search of the vehicle, investigators lifted a rear seat cushion and found a .40 caliber semiautomatic pistol, 50 wax folds of fentanyl, and two knotted plastic bags containing approximately 6.5 grams of crack cocaine.
In April 2016, STEELE was convicted in Connecticut Superior Court of possession of a pistol without a permit. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Yesterday, the jury found STEELE guilty of one count of possession with intent to distribute cocaine base (“crack cocaine”), one count of possession with intent to distribute fentanyl, and one count of possession of a firearm by a previously convicted felon. STEELE was acquitted of one count of possession of a firearm in furtherance of a drug trafficking crime.
Judge Shea scheduled sentencing for July 9, 2018, at which time STEELE faces a maximum term of imprisonment of 20 years on each of the drug offenses, and a maximum term of imprisonment of 10 years on the firearm offense.
STEELE has been detained since his arrest on June 14, 2017.
This investigation was conducted by the Hartford Police Department’s Vice and Narcotics Unit and the FBI’s Northern Connecticut Violent Crime Gang Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. This case is being prosecuted by Assistant U.S. Attorneys Michael J. Gustafson and Jocelyn Courtney Kaoutzanis.
Guatemalan Sentenced to Nearly Two Years in Prison for Returning to the United States Following Prior DeportationRead the Press Release
A Guatemalan man who illegally returned to the United States after having been deported following a felony conviction was sentenced today to 22 months’ in federal prison.
Benjamin Aguilar-Ramirez, age 35, a citizen of Guatemala illegally present in the United States and residing in Waterloo, Iowa, received the prison term after a January 11, 2018, guilty plea to one count of illegal reentry into the United States following a felony conviction.
At the guilty plea, Aguilar-Ramirez, an illegal alien, admitted that he was deported from the United States on May 5, 2017, and that he illegally reentered the United States without the permission of the United States government. Aguilar-Ramirez was previously convicted on March 8, 2017, in the United States District Court for the Northern District of Iowa of one count of unlawful use of identification documents and one count of misuse of a social security number, both felonies. On the document fraud convictions, Aguilar-Ramirez was sentenced to 114 days’ imprisonment and a three-year term of supervised release. On November 13, 2017, Aguilar-Ramirez was found by immigration officers at the Black Hawk County Jail in Waterloo, Iowa, following his arrest for violating a State of Iowa No Contact Order.
Aguilar-Ramirez was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Aguilar-Ramirez was sentenced to 16 months’ imprisonment on the illegal reentry conviction. Aguilar-Ramirez was also sentenced to 6 months’ imprisonment for violating the terms of his supervised release on the document fraud convictions. The terms of imprisonment are to be served consecutively. He must also serve a three-year term of supervised release on the illegal reentry conviction after the prison term. There is no parole in the federal system.
Aguilar-Ramirez 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 Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 16-CR-2055-LRR and 17-CR-2089-LRR.
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Grand Rapids Man Sentenced in Student Loan and Tax Fraud ScamRead the Press Release
Brandon Kenon Rogers Gets Four Years in Federal Prison
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that U.S. District Judge Paul Maloney sentenced Brandon Kenon Rogers, 31, of Grand Rapids, to 48 months in prison and ordered him to pay $128,746.00 in restitution for committing student loan, grant and tax fraud.
Rogers pled guilty on November 28, 2017, and admitted that he defrauded the U.S. Department of Education by obtaining the identity information of others and posing as those individuals while applying online for Student Loans and Pell Grants in their names. He also enrolled online in local community colleges, including Grand Rapids Community College and Kalamazoo Valley Community College, using those same identities. Rogers used the loans and grant funds for his own purposes without actually attending the classes as required. Rogers also used the stolen identities to obtain fraudulent income tax refunds.
The government stressed at sentencing that, while taxpayers generously allow cash-strapped students to get loans and grants to better themselves with an education, news that this money lined the pockets of a criminal would undermine support for the programs that benefit others.
U.S. Attorney Birge stated that, "I hope Rogers’s prison sentence sends a message that this kind of fraud won’t be tolerated here. I intend to make West Michigan a place for fraudsters to avoid."
The Grand Rapids Community College Department of Public Safety, the U.S. Department of Education, Office of Inspector General, the Federal Bureau of Investigation and the Internal Revenue Service investigated this case. Prosecution of Rogers was handled by Timothy VerHey, Assistant United States Attorney.
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Gary Woman Convicted After Two Week Jury TrialRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Ethel Shelton, age 72, of Gary, Indiana was convicted of two federal criminal conspiracy charges after a 10-day jury trial before District Court Judge Joseph Van Bokkelen.
The jury convicted Shelton on one count of conspiracy to commit wire fraud and one count of conspiracy to commit honest services wire fraud. Shelton’s co-defendant, Alex Wheeler, age 68, of Gary, Indiana was found not guilty of both charges. Former Calumet Township Trustee Mary Elgin and her son Stephen Hunter previously pleaded guilty in this case, pursuant to plea agreements.
According to records in the case, Shelton was a member of Elgin’s political initiatives committee and served as Elgin’s Executive Secretary from 2006 to 2012. Throughout Elgin’s tenure as Calumet Township Trustee, members of the conspiracy, including Shelton and Hunter, used property and employee resources of the Trustee’s Office to run Elgin’s reelection campaigns. Elgin created an environment whereby employees believed that retaining their jobs hinged on purchasing tickets to her political fundraising events. Shelton was in charge of ticket distribution and payment collection, all of which occurred in the Trustee’s Office during work hours. Tickets were distributed according to the employees’ salary. Shelton kept track of which purchased tickets and which did not. Employees who could not pay for their tickets all at once were placed on payment plans.
The Calumet Township Trustee’s Office is a local government entity whose primary mission is to provide emergency relief and assistance to needy individuals and families.
This case was investigated by the Federal Bureau of Investigation with the assistance of Internal Revenue Service. This case was prosecuted by Assistant United States Attorneys Maria Lerner, Abizer Zanzi and Philip Benson.
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Four people operating out of Cleveland and Maple Heights indicted for preparing hundreds of false tax returnsRead the Press Release
Four people from Ohio were named in a 31-count indictment for their roles in a conspiracy in which they filed more than 800 tax returns annually between 2012 and 2015 resulting in approximately $15 million in refunds being issued, a portion of which neither they nor their clients were entitled.
Indicted are: Keith Jeffries, 44, of Maple Heights; Brian Peacock, 33, of Sandusky; Linnette Coleman, 44, of Cleveland; and Nicole Pugh, 31, of Cleveland. All four are charged with conspiracy to defraud the United States. All four face additional counts of aiding and assisting in the preparation of false and fraudulent tax returns.
Jeffries operated a tax preparation business under the name Krew Time, LLC. Jeffries, Peacock, Coleman and Pugh all prepared returns for Krew Time clients. The company operated out of three locations – from Jeffries’ residence on Friend Avenue in Maple Heights, from the back offices of a MetroPCS store on East 71st Street in Cleveland and from a commercial building on East 140th Street in Cleveland, according to the indictment.
The defendants filed false, fictitious and fraudulent tax returns in the name of Krew Time clients. The clients received the majority of the refunds with the defendants receiving a portion of the refund as their tax preparation fee, according to the indictment.
They did this by filing false itemized deductions, business income expenses, tax credit information, medical expenses, false filing status and other information to obtain income tax refunds to which the taxpayers were not entitled. This took place between 2011 and 2016, according to the indictment.
“This group spent years trying to rip off the federal government by filing hundreds of fake tax returns,” U.S. Attorney Justin E. Herdman said. “These defendants took advantage of programs designed to help sick people or struggling students and instead used them to enrich themselves.”
“These defendants wreaked havoc on the IRS by misusing their Electronic Filing Identification Number and Preparer Tax Identification Number to electronically file fraudulent income tax returns for their clients that generated inflated false income tax refunds,” stated Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Internal Revenue Service – Criminal Investigations. It is being prosecuted by Assistant U.S. Attorneys Carmen Henderson and Alejandro Abreu.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former IRS Employee Sentenced for False Tax ReturnsRead the Press Release
KANSAS CITY, Mo. – A former IRS employee has been sentenced in federal court for filing false tax returns.
Carla Lachelle Mitchell, 49, of Kansas City, Kan., was sentenced by U.S. District Judge Gary A. Fenner on Monday, April 16, 2018, to one year and one day in federal prison. The court also ordered Mitchell to pay $137,483 in restitution.
Mitchell worked as a lead contact representative at the IRS Service Center in Kansas City, Mo., from 2006 to 2015. Mitchell admitted that while employed by the IRS she prepared false federal income tax returns for 2011, 2012 and 2013 for 13 of her friends and family, as well as herself.
When preparing tax returns, Mitchell included several false entries (such as fraudulent wages or dependents) to lower the individual tax liability or to increase their refunds. Mitchell has been linked to 27 fraudulent returns through her admissions, witness statements and IP addresses. According to court records, Mitchell also filed tax returns seeking fraudulent refunds in the names of two people without their authorization, stealing their identities in order to do so.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation and the U.S. Treasury Inspector General for Tax Administration.
Former Federal Employee in Albany Charged with Defrauding the Department of Housing and Urban DevelopmentRead the Press Release
ALBANY, NEW YORK – Timothy J. Oravec, age 59, of Poughkeepsie, New York, was arrested today on charges that he defrauded the United States Department of Housing and Urban Development (HUD) and some of its employees by falsely claiming to have cancer, and obtaining and using leave time donated to him by his colleagues.
The announcement was made by United States Attorney Grant C. Jaquith and Christina Scaringi, Special Agent in Charge for HUD’s Office of Inspector General (OIG), Northeast Region.
Oravec worked for HUD in Albany. The indictment alleges that in 2013, Oravec falsely told his supervisors and coworkers at HUD that he had been diagnosed with cancer and would need to be absent from work as a result. Oravec was approved as a recipient of donated leave as part of a voluntary leave transfer program operated by HUD. Other HUD employees donated 694 hours of their vacation time to Oravec. He used most of the donated vacation time to miss work, while being paid over $24,000 in salary.
The indictment also alleges that, as part of the scheme, Oravec fabricated letters from multiple medical providers and gave those fabricated letters to his supervisors at HUD. Those letters purported to describe Oravec’s treatment for cancer. In fact, Oravec was not under the care and treatment of the providers and created the letters himself.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Oravec was arraigned today before United States Magistrate Judge Christian F. Hummel, who ordered him released with conditions pending trial before Senior United States District Judge Frederick J. Scullin, Jr.
If convicted, Oravec would face up to 20 years in prison, a maximum fine of $250,000, and a maximum term of post-imprisonment supervised release of 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by HUD-OIG and prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
Former FBI Special Agent Pleads Guilty to Leaking Classified National Defense InformationRead the Press Release
WASHINGTON — Terry J. Albury, a former Special Agent of the FBI, pleaded guilty today in the District of Minnesota in connection with his unauthorized disclosure and retention of classified national defense information.
Assistant Attorney General for National Security John C. Demers, Acting U.S. Attorney Tracy Doherty-McCormick for the Eastern District of Virginia, and Assistant Director Bill Priestap of the FBI’s Counterintelligence Division announced the plea. The plea was entered before U.S. District Judge Wilhelmina M. Wright.
“Today, Terry Albury admitted to violating his oath to protect our country by disclosing to a reporter classified information that, as an FBI agent, he was entrusted to protect,” said Assistant Attorney General Demers. “Albury admitted that his actions put America at risk. As this prosecution demonstrates, we will not waver in our commitment to pursue and hold accountable government officials who violate their obligations to protect our nation’s secrets and break the laws they have sworn to uphold.”
“Terry Albury betrayed the trust bestowed upon him by the United States,” said U.S. Attorney Doherty-McCormick. “Today’s guilty plea should serve as a reminder to those who are entrusted with classified information that the Justice Department will hold them accountable.”
“Mr. Albury was entrusted by the FBI with a security clearance, which included a responsibility to protect classified national defense information. Instead, he knowingly disclosed that material to someone not authorized to receive it,” said Assistant Director Priestap. “The FBI will work tirelessly to bring to justice those who would expose America’s secrets. Today, as the result of the hard work of dedicated special agents, analysts, and prosecutors, Mr. Albury has taken responsibility for his illegal action.”
“In violating his oath of office Terry Albury not only betrayed the American people, but also his fellow FBI employees who work to safeguard sensitive information on a daily basis," said Special Agent in Charge Laycock. “No one is above the law and the FBI will continue to investigate individuals who disclose classified material to those who are not authorized to receive it.”
Albury, 39, worked as an FBI Special Agent in the Minneapolis field office at the time of the disclosures. At the time, Albury also worked as a liaison with Customs and Border Protection at the Minneapolis-St. Paul International Airport. In connection with his FBI employment, Albury held a Top Secret//Sensitive Compartmented Information security clearance, and his daily duties provided him access to sensitive and classified FBI and other U.S. government information. According to court documents, beginning in 2016 and continuing through August 2017, Albury knowingly and willfully disclosed national defense information, classified at the Secret level, to a reporter. Albury employed methods to avoid detection, including printing documents that he created by cutting and pasting portions of an original document into a new document so as to avoid leaving a record of having printed the original, classified document. Albury also accessed documents on a classified computer and took pictures of the computer screen in order to photograph certain classified documents. Those additional classified documents were recovered on an electronic storage device found during a search of his home.
As set forth in the plea agreement, Albury was never authorized to retain the documents at issue at his residence or to transmit them to any person not entitled to receive them. Albury knew that he was not authorized to remove documents containing National Defense Information and classified information from secure locations, and further knew that he was not authorized to retain them at his residence or to transmit them to any person not authorized to receive them.
Albury pleaded guilty to one count of making an unauthorized disclosure of national defense information and one count of unlawful retention of national defense information. Albury faces a maximum sentence of 10 years in prison per count. The maximum potential sentence is prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the assigned judge.
This investigation was conducted by the FBI’s Washington Field Office. The prosecution was handled by Assistant U.S. Attorney Danya E. Atiyeh of the Eastern District of Virginia and Trial Attorneys Patrick T. Murphy and David C. Recker of the National Security Division’s Counterintelligence and Export Control Section.
Former FBI Special Agent Pleads Guilty to Leaking Classified National Defense InformationRead the Press Release
Terry J. Albury, a former Special Agent of the FBI, pleaded guilty today in the District of Minnesota in connection with his unauthorized disclosure and retention of classified national defense information.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Tracy Doherty-McCormick for the Eastern District of Virginia, and Assistant Director Bill Priestap of the FBI’s Counterintelligence Division announced the plea. The plea was entered before U.S. District Judge Wilhelmina M. Wright.
“Today, Terry Albury admitted to violating his oath to protect our country by disclosing to a reporter classified information that, as an FBI agent, he was entrusted to protect,” said Assistant Attorney General Demers. “Albury admitted that his actions put America at risk. As this prosecution demonstrates, we will not waver in our commitment to pursue and hold accountable government officials who violate their obligations to protect our nation’s secrets and break the laws they have sworn to uphold.”
“Terry Albury betrayed the trust bestowed upon him by the United States,” said U.S. Attorney Doherty-McCormick. “Today’s guilty plea should serve as a reminder to those who are entrusted with classified information that the Justice Department will hold them accountable.”
“Mr. Albury was entrusted by the FBI with a security clearance, which included a responsibility to protect classified national defense information. Instead, he knowingly disclosed that material to someone not authorized to receive it,” said Assistant Director Priestap. “The FBI will work tirelessly to bring to justice those who would expose America’s secrets. Today, as the result of the hard work of dedicated special agents, analysts, and prosecutors, Mr. Albury has taken responsibility for his illegal action.”
“In violating his oath of office Terry Albury not only betrayed the American people, but also his fellow FBI employees who work to safeguard sensitive information on a daily basis," said Special Agent in Charge Laycock. “No one is above the law and the FBI will continue to investigate individuals who disclose classified material to those who are not authorized to receive it.”
Albury, 39, worked as an FBI Special Agent in the Minneapolis field office at the time of the disclosures. At the time, Albury also worked as a liaison with Customs and Border Protection at the Minneapolis-St. Paul International Airport. In connection with his FBI employment, Albury held a Top Secret//Sensitive Compartmented Information security clearance, and his daily duties provided him access to sensitive and classified FBI and other U.S. government information. According to court documents, beginning in 2016 and continuing through August 2017, Albury knowingly and willfully disclosed national defense information, classified at the Secret level, to a reporter. Albury employed methods to avoid detection, including printing documents that he created by cutting and pasting portions of an original document into a new document so as to avoid leaving a record of having printed the original, classified document. Albury also accessed documents on a classified computer and took pictures of the computer screen in order to photograph certain classified documents. Those additional classified documents were recovered on an electronic storage device found during a search of his home.
As set forth in the plea agreement, Albury was never authorized to retain the documents at issue at his residence or to transmit them to any person not entitled to receive them. Albury knew that he was not authorized to remove documents containing National Defense Information and classified information from secure locations, and further knew that he was not authorized to retain them at his residence or to transmit them to any person not authorized to receive them.
Albury pleaded guilty to one count of making an unauthorized disclosure of national defense information and one count of unlawful retention of national defense information. Albury faces a maximum sentence of 10 years in prison per count. The maximum potential sentence is prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the assigned judge.
This investigation was conducted by the FBI’s Washington Field Office. The prosecution was handled by Assistant U.S. Attorney Danya E. Atiyeh of the Eastern District of Virginia and Trial Attorneys Patrick T. Murphy and David C. Recker of the National Security Division’s Counterintelligence and Export Control Section.
Former Chief Financial Officer Pleads Guilty in Manhattan Federal Court to Defrauding Former Employer of over $2 MillionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that RANDY WANG pled guilty to defrauding his former employer, a company based in Manhattan that manages a global airline alliance whose members consist of approximately 13 international airlines and their affiliates (the “Company”), by incurring more than $2.2 million in unauthorized charges on the Company’s credit card account. WANG pled guilty to one count of wire fraud before U.S. District Judge John F. Keenan.
U.S. Attorney Geoffrey S. Berman said: “As he admitted in court today, Randy Wang took advantage of his position at a major New York-based company to charge millions of dollars’ worth of nonbusiness purchases on the company’s credit card. He now awaits sentencing for the theft and deceit that victimized his own employer.”
According to allegations contained in the Information filed against Wang and statements made in related court filings and proceedings:
During the relevant time period, WANG was employed as a business manager for the Company, and for approximately the last two months of the scheme, WANG also served as the Company’s interim chief financial officer. From at least in or about January 2016 through in or about October 2017, RANDY WANG, the defendant, incurred more than $2.2 million of unauthorized charges on the Company’s credit card account, by making hundreds of purchases at both online and brick-and-mortar retailers. WANG’s purchases, which were entirely unrelated to his official duties and were not for the benefit of the Company, included approximately 443 laptop computers, 241 mobile electronic devices, 24 tablet computers, and numerous other electronics. In order to evade detection of his criminal conduct, WANG made changes to the Company’s accounting records to disguise the nature of the credit card charges.
* * *
WANG, 34, of Bayside, Queens, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the Court.
Mr. Wang’s sentencing is scheduled for September 5, 2018, at 11:00 a.m.
Mr. Berman praised the work of Homeland Security Investigations and the El Dorado Task Force.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Christine I. Magdo is in charge of the prosecution.
Foot Guide Sentenced to 60 Months in Prison for Bringing in Illegal Aliens for ProfitRead the Press Release
TUCSON, Ariz. – Today, Jose Pastrano-Rios, 53, of Mazatlán, Sinaloa, Mexico, was sentenced by U.S. Chief District Judge Raner C. Collins to 60 months in prison with three years of supervised release to follow. Pastrano-Rios had previously pleaded guilty to one count of bringing in illegal aliens for profit.
Pastrano-Rios was arrested on May 19, 2017, for guiding a group of nine illegal immigrants, including two unaccompanied minors, into the United States. Agents were able to determine that Pastrano-Rios was known as “El Bigotes” and was a known human smuggler. He was previously identified as a foot guide for groups of illegal immigrants who were smuggled into the United States on three occasions in 2016.
The investigation in this case was conducted by the United States Border Patrol, the United States Department of Homeland Security-Homeland Security Investigations, and the Tohono O’odham Police Department. The prosecution was handled by Rui Wang and Frances Kreamer Hope, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-17-0926-RCC
RELEASE NUMBER: 2018-038_ Pastrano-Rios
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Florida Man Gets 10 Years in Prison for Conspiracy to Distribute More Than 45 Kilograms of Narcotics in New JerseyRead the Press Release
TRENTON, N.J. – A Miami man was sentenced today to 120 months in prison for his role in a conspiracy to distribute over 45 kilograms of narcotics, including heroin, fentanyl, cocaine, and morphine, U.S. Attorney Craig Carpenito announced.
Sauro D. Estevez Figueredo, 50, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to Count One of an indictment charging him with conspiracy to possess with intent to distribute more than one kilogram of heroin, five kilograms or more of cocaine, 400 grams or more of fentanyl, and morphine. Judge Sheridan imposed the sentence today in Trenton federal court.
Figueredo was originally arrested with Edwin Alamo Jr., 23, Emmanuel Gonzalez, 33, both of Bronx, New York, Alberto Mora, 54, of Morriston, Florida, and Porfirio Peralta-Nunez, 39, of Jersey City, New Jersey, in February 2016. All five defendants have since pleaded guilty to their roles in the drug distribution conspiracy.
According to the documents filed in this case and statements made in court:
On Feb. 5, 2016, law enforcement observed a tractor trailer, driven by Figueredo and Mora, parked at an intersection near a store in Clifton, New Jersey. That afternoon, Gonzalez and Alamo drove to the tractor trailer and left with a suitcase given to them by Mora. Later, Peralta-Nunez arrived at the tractor trailer with two empty bags and left shortly afterwards with the bags filled.
Figueredo admitted that he collected narcotics and transported them via tractor trailer to New Jersey. He also admitted that Mora handed out a suitcase with 22 kilograms of heroin and afterwards, another conspirator took two bags containing fentanyl, morphine and heroin from the tractor trailer. He further admitted that there were two additional bags on the tractor trailer – one that contained 10 kilograms of fentanyl and one that contained 10 kilograms of cocaine – that would have been provided to other conspirators if not for law enforcement’s intervention.
In addition to the prison term, Judge Sheridan sentenced Figueredo to five years of supervised release.
The government is represented by Assistant U.S. Attorneys Meredith Williams of the U.S. Attorney’s Office OCDETF/Narcotics Unit and Elaine Lou of the Organized Crime/Gangs Unit in Newark.
U.S. Attorney Carpenito credited special agents with the Drug Enforcement Administration, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, with the investigation.
Defense Counsel: Michael D’Alessio Esq., West Orange, New Jersey
Federal Jury Convicts Pembroke Medical Doctor for Unlawfully Distributing OxycodoneRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced today that, DONOVAN DAVE DIXON, 51 of Fayetteville, North Carolina, was convicted after a four-day jury trial before Chief United States District Judge James C. Dever III. The jury found DIXON, who was a licensed medical doctor at the time of the offense, guilty of Conspiracy to Unlawfully Distribute Oxycodone and twenty (20) counts of Unlawful Distribution of Oxycodone outside the scope of professional practice and not for a legitimate medical purpose.
The evidence at trial showed that DIXON was a licensed medical doctor who operated a family medical practice in Pembroke, NC from 2012 until April 6, 2015, when his ability to prescribe controlled substances was limited by the North Carolina Medical Board. The Drug Enforcement Administration’s Tactical Diversion Squad based in Charlotte began investigating DIXON when they noticed that four (4) of the top ten (10) oxycodone prescribing pharmacies for the State of North Carolina were located in the Lumberton, NC area. The local pharmacists as well as local and state law enforcement identified DIXON as the likely cause.
At trial, the evidence showed that DIXON prescribed high strength, high dosage amounts of oxycodone with little or no medical examination. Multiple witnesses testified that they had never even met DIXON despite the fact that hundreds of prescriptions had been issued in their name. A local drug dealer testified that DIXON wrote prescriptions for oxycodone in the name of persons that he provided to DIXON in exchange for cash. The prescription drugs were then sold on the streets of Robeson County by the drug dealer.
DIXON is scheduled to be sentenced the week of July 23, 2018.
Mr. Higdon stated: “The United States Department of Justice is aggressively moving against all individuals who illegally distribute opioids and prescription drugs. Whether those illegally pushing these drugs are on the street or operating from a doctor’s office, we will pursue you, charge you and convict you for the crimes that are putting our citizens at risk.”
The investigation of this case was conducted by the Drug Enforcement Administration’s Tactical Diversion Squad. Assistance was also provided by the State Bureau of Investigation, Diversion and Environmental Crime Unit, the Internal Revenue Service-Criminal Investigations (IRS-CI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Robeson County Sheriff’s Office, and the Fayetteville Police Department. Assistant United States Attorney Lawrence Cameron represented the government in this case.
FBI Fugitive Admits Involvement in 2002 Bank Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A fugitive wanted by the FBI for almost 15 years admitted today to defrauding a financial institution to obtain hundreds of thousands of dollars for himself, his computer retail business, and his associates, U.S. Attorney Craig Carpenito announced.
Steven Nacim, 49, a/k/a “Fouad,” a Moroccan national, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to a superseding information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
In March and April of 2002, Nacim and others owned and operated a business known as Computer 3000, based in East Rutherford, New Jersey, and Casablanca, Morocco. Nacim and his conspirators executed a fraudulent check scheme involving the negotiation of a $289,326 check drawn on insufficient funds, and the wire transfer of the proceeds through multiple accounts controlled by the conspirators. Nacim used the majority of the funds for his own benefit and for the benefit of his computer business.
The conspiracy charge carries a maximum penalty of five years in prison and a fine of $250,000 or twice his gain, or twice the loss sustained by the victim of the offense. Nacim agreed to pay $240,580 in restitution to the victim bank, and to forfeit $240,580. He is scheduled to be sentenced on July 26, 2018, at 10:00 a.m.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu, Chief of the Asset Recovery Money Laundering Unit.
Defense counsel: Joseph B. Shumofksy Esq., Newark, New Jersey
Essex County, New Jersey, Man Admits Bribing Letter Carriers to Deliver Parcels Containing MarijuanaRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, resident today admitted conspiring to obtain marijuana from California to sell in New Jersey, and paying cash bribes to two U.S. Postal Service (USPS) mail carriers to intercept and deliver parcels to him, U.S. Attorney Craig Carpenito announced.
Glenn Blackstone, 48, pleaded guilty before U.S. District Judge Esther D. Salas in Newark federal court to an information charging him with one count of giving bribes and one count of conspiracy to distribute marijuana. He was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
From October 2014 to September 2017, Blackstone purchased marijuana from a conspirator, who produced the marijuana in California and oversaw shipping it in parcels from California and Nevada. Blackstone then sold the marijuana to others in Newark. Blackstone provided the then-USPS mail carrier, Leonard Gresham, 50, of Rahway, New Jersey, and another then-USPS mail carrier approximately $12,400 in cash payments to deliver the parcels to him. These parcels had fictitious names and addresses on them and were not addressed directly to Blackstone.
On multiple occasions, Blackstone asked the mail carriers to remove the parcels from the normal delivery stream and deliver them instead to him at various locations in Newark. Blackstone paid the letter carriers approximately $50 to $100 in cash for each delivery.On Feb. 13, 2018, Gresham pleaded guilty before Judge Salas to an information charging him with one count of accepting bribes. He is scheduled to be sentenced May 30, 2018.
The drug conspiracy count with which Blackstone is charged is punishable by a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison and a fine of up to $5 million, or twice the gross gain from the offense. The bribery count is punishable by a maximum potential penalty of 15 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 24, 2018.
U.S. Attorney Carpenito credited special agents with the USPS-Office of Inspector General, under the direction of Special Agent in Charge Eileen Neff, Northeast Area Field Office, and inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Ray Hamlin Esq., Newark
Deville man pleads guilty to possessing an unregistered silencerRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that a Deville man pleaded guilty Monday to possessing a silencer that had not been registered.
Jonathan Hayes, 32, of Deville, Louisiana, pleaded guilty before U.S. District Judge Dee D. Drell to one count of receipt or possession of an unregistered firearm. According to the guilty plea, Louisiana Department of Wildlife and Fisheries agents arrested Hayes on June 1, 2016 in the Camp Beauregard Wildlife Management Area. Agents found him in possession of a Ruger .22 caliber rifle, a Savage .22 caliber rifle and a firearm silencer. The silencer, which is a firearm under federal law, had no manufacturer’s mark of identification or serial number. The silencer was not registered in the National Firearms and Transfer Record.
Hayes faces 10 years in prison, three years of supervised release and a $250,000 fine for each count. Sentencing has been set for June 20, 2018.
The ATF and the Louisiana Department of Wildlife and Fisheries conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Darknet international gun traffickers sentencedRead the Press Release
ATLANTA - Sherman Jackson was sentenced today for unlawfully shipping firearms to more than 10 countries using an online vendor page “CherryFlavor” on the “darknet” website Black Market Reloaded (“BMR”). William Jackson, Gerren Johnson, and Brendan Person were previously sentenced for their respective roles in the trafficking scheme.
“The defendants in this case sought to subvert the guns laws of the U.S. by illegally providing an underground source of firearms to individuals residing in foreign countries,” said U.S. Attorney Byung J. “BJay” Pak. “This case demonstrates our commitment to pursue gun traffickers within and outside our borders and to prevent criminals from unlawfully supplying guns to others.”
“This operation dismantled a major international gun trafficking organization,” said ATF Special Agent in Charge Arthur Peralta. “ATF and its law enforcement partners acted quickly and judiciously on information developed during the course of this investigation. People who choose to commit this type of crime must understand that there are serious repercussions for the illegal trafficking of firearms. Whether here at home in the U.S. or across international borders, ATF will remain on the frontline in identifying, investigating, and arresting anyone involved in firearms trafficking.”
“The defendants developed an illegal firearms trafficking scheme by concealing themselves through the anonymity of the dark web,” said Inspector in Charge David M. McGinnis of the Charlotte Division. “The U.S. Postal Inspection is committed to combat cybercrime and we will continue to be vigilant in disrupting criminal organizations who illegally utilize the U.S. Postal Service.”
According to U.S. Attorney Pak, the charges and other information presented in court: Sherman Jackson initially created the online vendor page “CherryFlavor” on the “darknet” website “Black Market Reloaded” (BMR). This site operated on “The Onion Router,” also known as “TOR,” which provided virtual anonymity to its users to purchase illicit items, such as firearms. In early 2013, Sherman Jackson, William Jackson, Johnson, and Person began advertising various firearms for sale as CherryFlavor. The group acquired their inventory through domestic websites offering gun owners an online venue to sell firearms. The defendants then sold firearms to international buyers at extremely marked-up prices. For example, the defendants sold a Glock pistol for as much as $3,400 – a firearm normally sold for approximately $500.
In addition to using TOR, the defendants also concealed their illegal gun trafficking activities from law enforcement by requiring international customers to pay for firearms using the cryptocurrency, Bitcoin, which prevented law enforcement from tracing financial transactions related to CherryFlavor’s gun sales. The defendants hid firearms inside electronic equipment shipped internationally to bypass U.S. and foreign customs. CherryFlavor sold more than 70 firearms across the world. Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives coordinated with its international law enforcement partners to recover firearms in Australia, Austria, Belgium, Canada, Denmark, France, Germany, Ireland, Kazakhstan, the Netherlands, Russia, Sweden, the United Kingdom, and Zambia.
●Sherman Jackson, 28, of Atlanta, Georgia was sentenced today by U.S. District Judge Amy Totenberg to one year, nine months in prison to be followed by two years of supervised release. Jackson pleaded guilty to smuggling firearms from the U.S. on August 20, 2015.
●Gerren Johnson, 29, of Austell, Georgia was previously sentenced to two years and nine months in prison, to be followed by two years of supervised release. He pleaded guilty to smuggling firearms from the U.S. on January 9, 2018.
●Brendan Person, 29, Atlanta, Georgia was previously sentenced to two years and three months in prison, to be followed by two years of supervised release. He pleaded guilty to smuggling firearms from the U.S. on January 31, 2017.
●William Jackson, 29, of East Point, Georgia was previously sentenced to two years on probation. He pleaded guilty to smuggling goods from the U.S. on October 17, 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Postal Inspection Service. The following agencies provided invaluable assistance that aided the investigation: the U.S. Department of Justice, Office of International Affairs; the National Crime Agency in the United Kingdom; the Ontario Provincial Police, the Toronto Police, the Durham Regional Police Service, the Royal Canadian Mounted Police, and the Canada Border Services Agency in Canada; the Australian Customs and Border Protection Service and Australian Federal Police; the Federal Judicial Police in Belgium; the Dutch National Undercover Team in the Netherlands; the Munich Police Service and the Wetterau Police Department in Germany; Vienna State Police in Austria; and the Swedish Customs and the Public Prosecution Authority in Sweden.
Assistant U.S. Attorneys Tracia M. King and Stephanie Gabay-Smith prosecuted the case.
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.
Dallas and Carrolton Men Plead Guilty for Role in a $2 Million Mail Fraud SchemeRead the Press Release
DALLAS — Robert Joseph Marano, 53, of Dallas, Texas, appeared in federal court this morning before U.S. Magistrate Judge Rebecca Rutherford and pleaded guilty to one count of mail fraud, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
In March 2018, both Marano and Paul Anthony Dominguez, 32, of Carrollton, Texas, were charged in a felony information with a one count of mail fraud scheme. Dominguez pleaded guilty earlier this month to the same mail fraud scheme and is scheduled to be sentenced July 25, 2018. Marano is scheduled to be sentenced on August 1, 2018.
Both Dominguez and Marano face a maximum statutory penalty of twenty years in federal prison and a $250,000 fine. Restitution could also be ordered. Dominguez and Marano will remain on bond while awaiting their sentencing hearings.
According to filed plea documents, Dominguez and Marano contacted client contractors with a proposal to collect outstanding unpaid debts of former customers of the contractor client. During the period from about March 2015 through December 2016, Dominguez and Marano caused at least 200 client contractors to sign an agreement in which the client contractors authorized the defendants to release liens filed by the client contractor in exchange for the payment of unpaid debts by former customers. Dominguez and Marano also falsely represented to client contractors that defendants would collect funds from delinquent clients, retain a commission fee, and then send the balance of the collected funds to the contractor client.
Dominguez and Marano later contacted many former customers of the contractor client. These former customers were delinquent in payment of debts to the contractor clients. Dominguez and Marano fraudulently caused these former customers to send settlement checks to a business controlled by Dominguez and Marano. Dominguez and Marano also stole funds from their client contractors when they unlawfully cashed these former customer checks, but failed to pay their contractor clients the total settlement amount owed.
The defendants preyed on the financial desperation of these client contractors who were owed large sums of money from former customers. The defendants deceived these client contractors by falsely representing to the client contractors that the defendants would honestly collect and pass on funds collected from former customers.
Dominguez and Marano defrauded at least 200 client contractors across the United States and received over $2 million dollars in settlement funds from former customers of the client contractors. The felony information alleged that Dominguez and Marano spent these stolen funds to support their lavish lifestyle, including trips to Las Vegas, Hawaii and Miami, as well as the purchase of two 2016 Harley Davidson motorcycles, a 2016 Kawasaki motorcycle, a 2015 Toyota Tundra, and a 2015 Corvette Stingray.
This case is one of many felony indictments of bankruptcy-related crimes prosecuted as part of the Bankruptcy Fraud Initiative, United States Attorney’s Office, Northern District of Texas. These bankruptcy prosecutions were identified and investigated from a larger number of criminal referrals regularly made to this office by the United States Trustee’s Office, Dallas, Texas. Since 2013, these focused bankruptcy prosecutions have resulted in 27 convictions of individuals engaged in various types of fraudulent conduct within the United States Bankruptcy Courts.
The United States Postal Inspection Service, Fort Worth, Texas investigated the case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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DEA to Share Painkiller Prescription Information with 48 Attorneys GeneralRead the Press Release
Attorney General Jeff Sessions announced today that the Drug Enforcement Administration (DEA) has reached a prescription drug information-sharing agreement with 48 Attorneys General.
“Better information means better decisions,” Attorney General Jeff Sessions said. “Today’s agreement with 48 Attorneys General will give DEA and the states alike more information they can use to prosecute the criminals who are contributing to our national drug emergency. That means more prosecutions and ultimately fewer drugs on our streets. Would-be criminals should be warned: we are now better equipped than ever to find the fraudsters who are fueling our nation’s addiction crisis.”
“This partnership provides an unprecedented opportunity to use DEA and state resources and information to jointly combat pill diversion and trafficking,” said DEA Acting Administrator Robert W. Patterson. “We are losing far too many Americans to opioid abuse and addiction. I salute these states for their proactive efforts and know they will make a significant difference as we attack this epidemic across the country.”
DEA has reached an agreement with Attorneys General from 46 states, Puerto Rico, and the District of Columbia to share prescription drug information with one another in order to aid investigations. DEA’s Automation of Reports and Consolidated Orders System (ARCOS) system collects some 80 million transaction reports every year from manufacturers and distributors of prescription drugs. DEA will provide the Attorneys General with that data, and the states will provide their own information, often from prescription drug monitoring programs (PDMPs) to DEA. Under the agreement, both state and federal law enforcement will have more information at their disposal to find the tell-tale signs of crime.Couple sentenced for sex trafficking 13-year-old girlRead the Press Release
ATLANTA - Daveon Brantley, a/k/a Swalay, and Amber Brinson were sentenced today to 22 years, one month and nine years, seven months, respectively, for sex trafficking a 13-year-old girl after she ran away from home.
“This couple trafficked a 13-year-old girl for commercial sex who they knew was a vulnerable runaway,” said U.S. Attorney Byung J. “BJay” Pak. “We will continue to prosecute those who prey on and exploit children for commercial sex and we are leveraging partnerships with federal, state and local law enforcement, and non-governmental organizations to achieve justice and provide support services for the survivors of these crimes, as well as for their families.”
“Thanks to our partnership with local law enforcement agencies and the willingness of a witness to come forward with information, the 13-year-old child was recovered safely and removed from a horrible situation,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “Stopping human trafficking remains a top priority of federal, state and local agencies who are part of the FBI’s Metro Atlanta Child Exploitation Task Force (MATCH).”
According to U.S. Attorney Pak, the charges and other information presented in court: Brantley encountered the 13-year-old victim after she ran away from home. Brantley invited the child to his hotel room on Fulton Industrial Boulevard in Atlanta and directed his then-girlfriend, Brinson, to take nude photos of the child. Brantley and Brinson posted nine advertisements for sex with the minor on the website Backpage.com over several days in early June 2016. The advertisements included nude photos of the girl. Brantley and Brinson proceeded to use the child for commercial sex acts for six days. Brantley took the money that the minor victim earned. The Acworth Police Department recovered the minor from a hotel on June 7, 2016, after an acquaintance of Brantley’s and Brinson’s called the police and reported the location of the victim.
Daveon Brantley, a/k/a Swalay, 27, of Atlanta, Georgia, was sentenced to 22 years, one month in federal prison, to be followed by 15 years of supervised release, and ordered to pay restitution in the amount of $1,440. Brantley pleaded guilty to conspiracy to commit, and commission of, sex trafficking of a minor, production of child pornography, and distribution of child pornography on January 9, 2018.
Amber Brinson, 21, of Atlanta, Georgia, was sentenced to nine years, seven months in federal prison, to be followed by seven years of supervised release, and ordered to pay restitution in the amount of $1,440. Brinson pleaded guilty to conspiracy to commit sex trafficking of a minor on November 3, 2017.
Both defendants must register as sex offenders as a condition of their supervised release.
This case is being investigated by the Federal Bureau of Investigation’s Metro Atlanta Child Exploitation Task Force (MATCH).
Assistant United States Attorney Jolee Porter prosecuted 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 United States 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.
Coral Gables Resident Pled Guilty to Wire Fraud in Connection with Hurricane Relief Efforts for Puerto RicoRead the Press Release
A South Florida resident pleaded guilty yesterday to wire fraud, in connection with purported hurricane relief aid for Puerto Rico.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida and Brian Swain, Special Agent in Charge, United States Secret Service (USSS), made the announcement.
Emilio I. Vazquez, 47, of Coral Gables, Florida, plead guilty to a single count of wire fraud, in violation of Title 18, United States Code, Section 1343. The defendant faces a maximum sentence of twenty years in prison. Vazquez is scheduled to be sentenced on June 27, 2018, at 9:30 a.m., by United States District Court Judge Robert N. Scola.
In or around September 2017, Vazquez contacted a group of volunteers working to provide hurricane relief aid to Puerto Rico. Vazquez claimed that he was part of the Serralles family, who are the owners of Destileria Serralles, which distills, manufactures, bottles and distributes Don Q rum in Puerto Rico. Vazquez claimed to have significant resources and the ability to rent warehouses, and charter planes and trucks to transport relief supplies.
In or around September 2017, Vazquez, using the name Emilio Serralles, contacted Commercial Property Group in Doral, Florida, regarding the rental of warehouse space. The warehouse space was purportedly to be used to store relief supplies for Puerto Rico. On or about September 29, 2017, Vazquez provided Commercial Property Group with a counterfeit and fraudulent UBS bank cashier’s check for $122,050.50, to pay for the warehouse space. The next day, Vazquez signed a lease under the name Emilio Serralles, renting five warehouse spaces from Commercial Property Group.
In or around October 2017, Vazquez contacted Miami Air International, a local charter airline, as Emilio Serralles and claimed to own a company called Puerto Rico Relief Committee. Subsequently, Vazquez chartered multiple flights from Miami to Puerto Rico to purportedly deliver relief supplies. As payment for these flights, Vazquez provided a counterfeit and fraudulent American Express Centurion Bank cashier’s check for $564,036.05 to Miami Air International.
Mr. Greenberg commends the investigative efforts of the USSS. This case is being prosecuted by Assistant United States Attorney Joshua S. Rothstein.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida atwww.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.