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Monday 16 April 2018
Four Men Face Additional Fraud Charges in $1 Million Advance Fee SchemeRead the Press Release
NEWARK, N.J. –Three men from New Jersey and another from Nevada were indicted today on additional charges stemming from their alleged advance-fee scheme that defrauded four victims of over $1 million, U.S. Attorney Craig Carpenito announced.
James Adkins, 65, of Hillside, New Jersey, Jerrid Douglas, 44, of Freehold, New Jersey, Roy Gillar, 45, of Las Vegas, Nevada, and Harold Mignott, 55, of Voorhees, New Jersey, were originally charged by indictment in December 2017 with one count of conspiracy to commit wire fraud and four counts of wire fraud, with Douglas and Gillar also being charged with one count of transacting in criminal proceeds. Today’s superseding indictment adds three counts of wire fraud against Adkins, two counts of wire fraud against Douglas, and one count of wire fraud against Mignott.
All four defendants are currently out on bail and will be arraigned at a later date before U.S. District Court Judge John Michael Vazquez in Newark federal court.
According to the superseding indictment:
From March 2016 through June 2016, Mignott, Adkins, Douglas, and Gillar allegedly agreed to defraud an entity identified in the superseding indictment as “Victim Company A” out of approximately $1 million.
As part of the scheme, the defendants convinced two individuals who ran Victim Company A to enter a joint-venture agreement with the defendants’ New Jersey-based shell company. The defendants falsely represented that their company could acquire and provide Victim Company A with a “standby letter of credit” backed by Mexican gold bonds. A standby letter of credit is a guarantee of payment issued by a bank on behalf of a client that is used should the client fail to fulfill a contractual commitment with a third party.
Victim Company A wanted access to the standby letter of credit so it could purchase raw gold overseas and sell it to gold refineries. As part of the joint-venture agreement, Victim Company A agreed to pay the defendants $1 million for the bank fee associated with the standby letter of credit.
In order to cover up the scheme and acquire Victim Company A’s funds, the defendants made numerous verbal and written misrepresentations, including providing a phony letter from a major international bank saying that it was ready, willing, and able to provide a €1 billion standby letter of credit to the defendants’ shell company.
However, after Victim Company A transmitted $800,000 to the defendants, they failed to provide Victim Company A with a standby letter of credit or anything of value. Instead, the defendants misappropriated Victim Company A’s money for their personal use on items like luxury cars, expensive watches, mortgage payments on their personal residences, and large cash withdrawals.
In addition, Adkins and Mignott allegedly defrauded a farmer from Iowa – identified in the superseding indictment as “Individual Victim 3” — out of $90,000 in 2013. As part of the scheme, Adkins and Mignott induced Individual Victim 3 to enter into a joint-venture agreement with their shell company and told the victim that if he provided them $90,000, they would provide him with a standby letter of credit so he could access financing for his pork business.
In order to persuade Individual Victim 3 to transfer the money, Adkins and Mignott told him that their company was going to complete lucrative oil and gas transactions that would yield significant revenues. However, after Individual Victim 3 transmitted $90,000, Adkins and Mignott did not provide him with money, a standby letter of credit, or anything of value.
Lastly, Adkins and Douglas allegedly defrauded an entity identified in the superseding indictment as “Victim Company B” out of approximately $250,000 in 2015. Adkins and Douglas induced the founder and owner of Victim Company B to enter a joint-venture agreement with their shell company. Adkins and Douglas falsely represented that their company could acquire and provide Victim Company B with a standby letter of credit, which would provide financing for Victim Company B’s biotech business operations.
Victim Company B wanted to obtain the standby letter of credit so it could fund business operations for cancer research as part of its biotech business. As part of the joint-venture agreement, Victim Company B agreed to pay Adkins and Douglas $1 million for the bank fee associated with the standby letter of credit.
However, after Victim Company B transmitted $250,000 of the $1 million to Adkins and Douglas’s shell company, Adkins and Douglas failed to provide Victim Company B with a standby letter of credit or anything of value. Instead, Adkins, Douglas, and others misappropriated the money for their personal use.
The conspiracy to commit wire fraud charge and the wire fraud charges each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. The money laundering charges each carry a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Defense counsel:
Adkins: Kevin Buchan Esq., Holmdel, New Jersey
Douglas: Joseph Corazza Esq., Sparta, New Jersey
Gillar: Thomas Ashley Esq., Newark
Mignott: Eric Breslin Esq., Newark
Former President & CEO and Former Vault Manager of now Bankrupt Precious Metals Firm Indicted for Fraud SchemeRead the Press Release
The former President & CEO and the former vault manager of Northwest Territorial Mint, a now-bankrupt company dealing in precious metals, were indicted last week for 20 federal felonies resulting from a Ponzi-like scheme that defrauded customers of millions of dollars, announced U.S. Attorney Annette L. Hayes. BERNARD ROSS HANSEN, 57, aka Ross B. Hansen and DIANE RENEE ERDMANN, 45, aka Diane Renee, both of Auburn, Washington will make their initial appearances on the indictment at 2:00 Monday, April 16, 2018.
Northwest Territorial Mint (NWTM) operated both a custom business that involved the manufacturing of medallions, coins, and other awards, and a bullion business that involved the selling, buying, exchanging, storing, and leasing of gold, silver, and other precious metals. The company had offices in Federal Way and Auburn, Washington, but declared bankruptcy on April 1, 2016.
The indictment alleges that between 2009 and 2017, HANSEN and ERDMANN defrauded NWTM customers in a variety of ways. HANSEN and ERDMANN lied about shipping times for bullion, improperly used customer money to expand the business to other states, and used customer money to pay their own personal expenses. By at least 2012, the company lacked enough assets to fulfill customer orders and used new customer money to pay off older customers in a Ponzi-like scheme. In total, over 3000 customers paid for orders, or made bullion sales or exchanges, that were either never fulfilled or never refunded. The total loss to these customers was more than $25,000,000.
In addition to the customer fraud, in April 2016, more than fifty people who stored their bullion with NWTM found all of part of their bullion worth $4.9 million was missing; twenty customers involved in a bullion leasing program were also defrauded of more than $5 million; and a Canadian silver bullion producer was defrauded of more than $1 million in silver bullion.
Between 2012 and 2016, HANSEN and ERDMANN took more than $1 million dollars out of the company accounts for their own use. In addition, during this time frame, they transferred some $120,000 in cash from the company to ERDMANN’s checking account and used $400,000 in company funds to pay their personal credit card bills. Finally, between March 2016 and June 2017, ERDMANN sold more than $700,000 worth of precious metals, including gold and silver bullion, and used the proceeds for the benefit of herself and HANSEN.
The indictment charges the pair with ten counts of mail fraud and ten counts of wire fraud. Each of the charges are punishable by up to 20 years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI and Internal Revenue Service Criminal Investigation (IRS-CI). The case is being prosecuted by Assistant United States Attorney Brian Werner.
Former Oregon City School District Teaching Aid Sentenced to 28 Years in Prison for Production of Child PornographyRead the Press Release
PORTLAND, Ore. – James Ian McGlothlin, 41, of Portland, was sentenced today to 28 years in federal prison followed by a life term of supervised release for the production of child pornography involving two very young children.
McGlothlin’s federal sentence will run concurrently with a sentence imposed in Clackamas County Circuit Court on March 2, 2018. McGlothlin was sentenced in Clackamas County to 225 months in prison after pleading guilty to three counts of first-degree sexual abuse stemming from his work with disabled children as an instructional assistant for the Oregon City School District.
“Producing child pornography is an appalling crime,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “It is unthinkable that someone would prey upon infants, toddlers, and disabled children, yet that is exactly what James McGlothlin did. He was supposed to be safeguarding his victims, but he took advantage of them instead for his own sexual gratification.” Williams added, “Hopefully, this sentence will help ensure that McGlothlin will not be in a position to sexually abuse children again.”
“Those who exploit their access to children to gratify their own perverse sexual desires are on notice that there will be serious consequences for those actions,” said Brad Bench, Special Agent in Charge for Homeland Security Investigations (HSI) Seattle. “When individuals who are entrusted to serve as role models for our children violate that trust, there will be zero tolerance. HSI will continue to work closely with its local law enforcement partners to target those involved in the sexual exploitation of children to ensure they are held accountable for their crimes.”
According to court documents, investigators first learned of McGlothlin’s actions while investigating an online bulletin board service used to advertise and distribute child pornography. On February 16, 2016, federal agents and members of the Interagency Child Exploitation Prevention Team (INTERCEPT) executed a search warrant at McGlothlin’s residence, where they seized computer equipment, phones, and other digital devices. Forensic examinations of the seized computers revealed thousands of files containing child pornography, including videos and images McGlothlin created himself. One of the victims was an infant. Another was a very young child.
Investigators found evidence that McGlothlin sexually abused a number of disabled children he worked with as an instructional assistant in Oregon City. Investigators also found documents McGlothlin wrote which describe, in graphic detail, how he planned to, rehearsed, and sexually abused children.
This case was investigated by the INTERCEPT Task Force, a partnership between the Clackamas and Multnomah County Sheriff’s Offices, U.S. Immigration and Customs Enforcement – Homeland Security Investigations (HSI), the FBI, the U.S. Marshals Service, and the U.S. Attorney’s Office. It was prosecuted by Assistant U.S. Attorney Gary Sussman, Project Safe Childhood Coordinator for the District of Oregon.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing impaired users can call TTY 802-872-6196.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.
Former Los Alamos County Man Pleads Guilty to Endangering Human Life While Manufacturing Controlled SubstanceRead the Press Release
ALBUQUERQUE – Joseph Gonzales, 28, a former resident of Los Alamos County, N.M., who now resides in Albuquerque, N.M., pled guilty today in federal court to endangering human life while illegally manufacturing a controlled substance. Gonzales committed the crime by causing an explosion at an apartment complex while attempting to create hashish oil and wax.
Gonzales was arrested in July 2017, on a three-count indictment charging him with endangering human life while illegally manufacturing a controlled substance, manufacturing a controlled substance, and maintaining a residence for the purpose of manufacturing marijuana and hashish oil. According to the indictment, Gonzales committed the crimes on May 9, 2016, in Los Alamos County, N.M.
During today’s proceedings, Gonzales pled guilty to Count 1 of the indictment charging him with endangering human life while illegally manufacturing a controlled substance. In entering the guilty plea, Gonzales admitted that on May 9, 2016, he was illegally attempting to manufacture hashish oil or wax in an apartment in Los Alamos County by using butane gas to extract THC from marijuana to produce hashish oil or wax. Gonzales also admitted that during the manufacturing process, a build-up of butane gas ignited, causing an explosion which severely burned Gonzales’ body and damaged the apartment complex.
According to his plea agreement, Gonzales possessed a medical marijuana card due to a medical condition. Gonzales admitted that his medical marijuana card did not give him authorization to manufacture hashish oil or wax.
At sentencing, Gonzales faces a maximum penalty of ten years in federal prison and a fine up to $250,000. A sentencing hearing has yet to be scheduled.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Los Alamos Police Department. Assistant U.S. Attorney Letitia C. Simms is prosecuting the case.
Former Employee of Southern California Ambulance Company Sentenced to Prison for Role in Medicare Fraud SchemeRead the Press Release
A former employee of a Southern California ambulance company was sentenced today to 36 months in prison for his role in a scheme that resulted in more than $1.1 million in fraudulent claims to Medicare.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Nicola T. Hanna of the Central District of California, Special Agent in Charge Christian J. Schrank of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Los Angeles Region, and Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Division made the announcement.
Aharon Aron Krkasharyan, 54, of Los Angeles, California, was sentenced by U.S. District Judge George H. Wu of the Central District of California, who also ordered Krkasharyan to pay $484,556 in restitution to Medicare, jointly and severally with his co-conspirators, who await sentencing. On Nov. 27, 2017, Krkasharyan pleaded guilty to one count of conspiracy to commit health care fraud.
Krkasharyan was employed as the Quality Improvement Coordinator for Mauran Ambulance Inc. (Mauran) of San Fernando, California, an ambulance transportation company operating in the greater Los Angeles area that provided non-emergency services to Medicare beneficiaries, many of whom were dialysis patients. As part of his plea, Krkasharyan admitted that between June 2011 and April 2012, he conspired with other Mauran employees to submit claims to Medicare for ambulance transportation services for individuals who did not need such services. Krkasharyan also admitted that he and his co-conspirators instructed Mauran emergency medical technicians to conceal the patients’ true medical conditions by altering paperwork and creating fraudulent reasons to justify the ambulance services.
Krkasharyan was charged along with Toros Onik Yeranosian, 55, the former owner of Mauran; Oxana Loutseiko, 57, the former general manager of Mauran; and Maria Espinoza, 47, a former employee of a Los Angeles dialysis treatment center. Yeranosian, Loutseiko and Espinoza each pleaded guilty and are pending sentencing. The former dispatch supervisor at Mauran, Christian Hernandez, 37, who was previously charged in the case, has also pleaded guilty and awaits sentencing.
According to court documents, during the course of the conspiracy, Mauran submitted over $28 million in claims to Medicare. Krkasharyan’s co-defendants admitted that at least $6.6 million of those claims were false and fraudulent claims for medically unnecessary transportation services. Medicare paid at least $3.1 million on those false and fraudulent claims.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The case was investigated by the FBI and HHS-OIG. Trial Attorneys Alexis D. Gregorian and Jeremy R. Sanders of the Fraud Section prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Former Employee Pleads Guilty to Wire FraudRead the Press Release
HOUSTON – A 28-year-old former employee of BP America Inc. has admitted he attempted to extort money from the company, announced U.S. Attorney Ryan K. Patrick. George Koutsostamatis pleaded guilty to one count of wire fraud.
Koutsostamatis, of Chicago, was a BP employee. While employed there, he admitted he sent an email to BP falsely claiming to possess personal information of company employees and their families. He also claimed he had infiltrated BP’s computers and computer network system. He threatened to release the information if he was not paid 125 bitcoins.
U.S. District Judge Sim Lake accepted the plea today and has set sentencing for July 13, 2018. At that time, Koutsostamatis faces up to 20 years in federal prison and a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing.
The FBI Houston Cyber Task Force investigated this case. The FBI Houston Cyber Task Force is a multi-agency task force responsible for investigating, pursuing and defeating cyber criminals who seek to exploit our nation’s most significant computer systems, networks and critical infrastructure. The Houston field office of the FBI led the investigation with assistance from U.S. Attorney’s Offices in Houston and Chicago, FBI – Chicago field office and the National Crime Agency in the United Kingdom. Assistant U.S. Attorney Rodolfo Ramirez is prosecuting the case.
Florida Man Arrested on Federal Criminal ComplaintRead the Press Release
Abingdon, VIRGINIA – A Florida man was arrested and charged with a pair of federal crimes following a traffic stop in Lee County, Virginia, United States Attorney Thomas T. Cullen announced today.
The United States Attorney’s Office charged Sergio Barrios Ambriz, 32, of Ft. Meade, Florida, in a criminal complaint with one count of possession of a firearm by a previously convicted felon and one count of possession with the intent to distribute crystal methamphetamine.
According to a criminal complaint and affidavit filed in U.S. District Court in Abingdon, on April 6, 2018, a deputy with the Lee County Sheriff’s Office conducted a traffic stop on the vehicle Ambriz was driving. At the time of the traffic stop, Ambriz informed deputies that he had an outstanding warrant in Polk County, Fl., at which time deputies arrested Ambriz.
A search of his vehicle subsequently revealed a Tupperware container under the driver’s seat that contained approximately 34 ounces of a white, crystal-like substance, believed to be crystal methamphetamine, a loaded, .380-caliber pistol, $3,237 in U.S. currency, a cellular phone and smoking devices.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lee County Sherriff’s Office. Special Assistant United States and Virginia Assistant Attorney General Suzanne Kerney-Quillen will prosecute the case for the United States.
A criminal complaint is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Federal Tax Prosecutions Serve as Reminder to Comply with Tax Obligations as the April 17 Filing Deadline ApproachesRead the Press Release
As Tax Day approaches, the U.S. Attorney’s Office reminds all Minnesotans that the deadline for filing federal income tax returns is Tuesday, April 17. To underscore federal law enforcement’s commitment to pursue those who fail to pay their taxes or otherwise defraud the tax system, below are several tax and related fraud prosecutions in the District of Minnesota. In addition to potential criminal penalties, including incarceration, tax evaders remain responsible for all taxes and interest due, as well as civil monetary penalties.
“Tax fraud unfairly shifts the tax burden to honest American taxpayers,” said U.S. Attorney Greg Brooker. “The U.S. Attorney’s Office for the District of Minnesota and the St. Paul Field Office of the Internal Revenue Service’s Criminal Investigation vigorously investigate and prosecute tax fraud and other financial crimes.”
“Year-round efforts of IRS Criminal Investigation are directed at those Americans who willfully and intentionally violate their legal duty to voluntarily file lawful and accurate tax returns and those individuals who commit other related financial crimes,” said Hubbard Burgess, Acting Special Agent in Charge of the St Paul Field Office. “Prosecutions of individuals committing tax fraud are a vital element in fostering confidence in our tax system and compliance with the law.”
JOSEPH ARNOLD MCGLYNN, of Burnsville, was sentenced to 30 months in prison for failing to pay over his employees’ withheld employment taxes to the IRS. Between 2009 and 2016, MCGLYNN was the owner, CEO and President of United Credit Consulting (UCC), a credit repair service company located in Burnsville. MCGLYNN withheld the employment taxes from his employees’ wages, but failed to pay over the taxes to the IRS for many quarters. Instead, MCGLYNN used the money to fund a lavish lifestyle, including luxury vacations, rentals of luxury vehicles, visits to strip clubs and purchases of luxury items such as jewelry, handbags and a boat. In total, MCGLYNN failed to pay to the IRS at least $159,157 in employment taxes.
ROYLEE BELFREY and THURLEE BELFREY, of St. Paul, and LANORE BELFREY, of Minnetonka, operated multiple home health care businesses and over several years committed a multi-million dollar heath care fraud, conspired to defraud the U.S., and failed to pay over almost $4 million in employee withheld taxes. Instead of paying over their employees’ withheld taxes to the IRS, they directed and permitted the money to be spent for other purposes, including for their own personal use. ROYLEE BELFREY was sentenced to 60 months in prison and ordered to pay $4,592,593.74 in restitution. THURLEE BELFREY was sentenced to 96 months in prison and ordered to pay $8,944,036.82 in restitution. LANORE BELFREY was sentenced to 15 months in prison and ordered to pay $402,158.00 in restitution. Related to the BELFREY investigation, the former mayor of Stillwater, KENNETH HARYCKI pleaded guilty to one count of conspiracy. HARYCKI was sentenced to 12 months and one day in prison and ordered to pay more than $2 million in restitution.
DIANE L. KROUPA, a former Federal Tax Court judge, of Minnetonka, was sentenced to 34 months in prison, and her husband, ROBERT E. FACKLER was sentenced to 24 months in prison for tax offenses. Between 2002 and 2012, KROUPA and FACKLER conspired to obstruct the IRS by falsifying and reporting personal expenses as business expenses on their joint tax return. For several years, they fraudulently deducted at least $500,000 of personal expenses as business expenses. FACKLER also failed to report approximately $450,000 of income earned from his business, Grassroots Consulting. KROUPA and FACKLER fraudulently understated their income by approximately $1,000,000 and fraudulently understated the amount of tax they owed by at least $450,000.
JOHN BURWOOD ROBINSON, of Crystal, was sentenced to 33 months in prison and ordered to pay $624,132 in restitution for stealing more than $1.1 million from his employer. ROBINSON pleaded guilty to mail fraud and filing a false tax return. ROBINSON was employed as the controller for North Central Stamping & Manufacturing, Inc. (“NCSMI”) from 1991 through 2016. In that role, ROBINSON devised a fraud scheme to steal money from NCSMI by opening a bank account in the name of NCSMI without the company’s knowledge or authorization, depositing customers’ payments into the fraudulent bank account, and using the deposits for his personal expenses.
MICHAEL TOBAK of Wayzata was sentenced to 24 months in prison for filing a false tax return. During an eight-year period, TOBAK failed to report more than $3.3 million in income from his non-profit home health care company, International Health Care Services. As a result, TOBAK failed to pay an additional $1,851,640 in taxes.
HASSAN OSMAN, of Minneapolis, was sentenced to 108 months in prison on charges of conspiracy, aiding and assisting in the preparation of a false tax return, and unlawful flight from prosecution. OSMAN and two co-conspirators filed more than 80 fraudulent tax returns for years 2008-2010 attempting to obtain close to $1 million in tax refunds.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Federal Jury Finds Orlando Woman Guilty of Investment FraudRead the Press Release
Orlando, Florida – A federal jury has found Viktoriya Johnson (36, Orlando) guilty of wire fraud and conspiracy to commit wire fraud. She faces a maximum penalty of 20 years in federal prison on each count. Her sentencing hearing is set for August 18, 2018.
Johnson was indicted in May 2017, along with her co-defendant Leone Alfano La Cava (59, Orlando), who pleaded guilty to wire fraud on March 30, 2018.
According to evidence presented at trial, La Cava and Johnson orchestrated an international real estate investment scheme that defrauded at least 80 investors out of over $4 million. La Cava solicited individuals in Italy to purchase real estate in Orange County, Florida that he claimed would generate guaranteed rental income. Johnson and La Cava then used falsified deeds and loan documents to convince investors that they were purchasing property owned by La Cava or Golden Investment, Inc., a real estate investment company incorporated by Johnson in 2010. In reality, those properties either did not exist, were never owned by La Cava, Johnson, or Golden Investment, or had already been sold to another investor. Instead of using the funds to purchase the real estate promised to investors, La Cava and Johnson used portions of the money for their own personal use. Johnson received over $1.3 million in investor funds that she used to purchase four properties and two luxury vehicles for herself.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Nathan W. Hill and Chauncey A. Bratt.
Federal Jury Finds Jacksonville Man Guilty of Distributing Child Sex Abuse VideosRead the Press Release
Jacksonville, Florida – Following a five-day trial, a federal jury has found Jason James Neiheisel (28, Jacksonville) guilty of sharing child sex abuse videos and making them available for online for distribution. He faces a minimum mandatory penalty of 5 years, up to 40 years, in federal prison and a potential life term of supervised release. A sentencing date has not yet been set. FBI agents arrested Neiheisel on May 4, 2017.
According to evidence and testimony presented at trial, an FBI task force officer conducted an online investigation of individuals using the internet to trade child pornography. He identified a host computer that was offering child pornography for distribution using a file-sharing network and downloaded approximately 48 videos, several of which depicted young children being sexually abused. The host computer was later traced to Neiheisel’s home. On April 11, 2017, agents made contact with Neiheisel at his apartment, where he told them that he had downloaded child pornography for “a while,” and that he enjoyed the “thrill of the hunt” to see what kind of child pornography files he could find. A subsequent forensic examination of Neiheisel’s tablet revealed no child pornography but confirmed that Neiheisel had used the tablet to access the file-sharing network. Neiheisel admitted that he knew that he had made the child pornography videos available to others on the file-sharing network.
This case was investigated by the Columbia County Sheriff’s Office and the FBI. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Court Bars Florida Tax Return Preparers from Preparing Tax Returns and Orders Them to Disgorge Ill-Gotten GainsRead the Press Release
On April 16, a federal court in Orlando, Florida, ordered that Patrick Clarke disgorge $500,000, and Ruby Rodriguez disgorge $100,000, of the proceeds they received for the preparation of tax returns, the Justice Department announced today. Clarke and Rodriguez agreed to the orders. On Nov. 13, 2017, the Court permanently barred Clarke, Rodriguez, Tax MD Inc., and V.I.P Tax Services Inc. from preparing federal tax returns for others. The civil injunction order, to which the defendants also agreed, was signed by Judge Carlos E. Mendoza of the U.S. District Court for the Middle District of Florida.
In April 2016, the United States filed its civil complaint against Clarke and Rodriguez seeking an injunction prohibiting them from acting as federal tax return preparers and seeking disgorgement of their gross receipts for the preparation of federal tax returns that reported false or fraudulent claims. According to the complaint, Clarke owned Tax MD Inc. and through it owned and operated tax return preparation franchises in Orlando, Tampa, West Palm Beach, and Hallandale, Florida. Also according to the complaint, Rodriguez managed one of Clarke’s stores in Orlando and owned V.I.P Tax Services Inc. As alleged, Clarke’s tax return preparers, including Rodriguez, fabricated business income and expenses to make fraudulent claims for the earned income tax credit and fabricated itemized deductions to generate larger refunds. The injunction entered in November stopped Clarke and Rodriguez from preparing tax returns for others, and today’s disgorgement order allows the government to collect proceeds they received from their tax preparation.
Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2018 and taxpayers seeking a return preparer should remain vigilant. The IRS has some information on their website about selecting a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Former Employee of Southern California Ambulance Company Sentenced to Prison for Role in Medicare Fraud SchemeRead the Press Release
LOS ANGELES – A former employee of a Southern California ambulance company was sentenced today to 36 months in prison for his role in a scheme that resulted in more than $1.1 million in fraudulent claims to Medicare.
Aharon Aron Krkasharyan, 54, of Los Angeles, was sentenced by U.S. District Judge George H. Wu, who also ordered Krkasharyan to pay $484,556 in restitution to Medicare, jointly and severally with his co-conspirators, who await sentencing. On Nov. 27, 2017, Krkasharyan pleaded guilty to one count of conspiracy to commit health care fraud.
Today’s sentencing was announced by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, United States Attorney Nicola T. Hanna, Special Agent in Charge Christian J. Schrank of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Los Angeles Region, and Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Division.
Krkasharyan was employed as the Quality Improvement Coordinator for Mauran Ambulance Inc. (Mauran) of San Fernando, an ambulance transportation company operating in the greater Los Angeles area that provided non-emergency services to Medicare beneficiaries, many of whom were dialysis patients. As part of his plea, Krkasharyan admitted that between June 2011 and April 2012, he conspired with other Mauran employees to submit claims to Medicare for ambulance transportation services for individuals who did not need such services. Krkasharyan also admitted that he and his co-conspirators instructed Mauran emergency medical technicians to conceal the patients’ true medical conditions by altering paperwork and creating fraudulent reasons to justify the ambulance services.
Krkasharyan was charged along with Toros Onik Yeranosian, 55, the former owner of Mauran; Oxana Loutseiko, 57, the former general manager of Mauran; and Maria Espinoza, 47, a former employee of a Los Angeles dialysis treatment center. Yeranosian, Loutseiko and Espinoza each pleaded guilty and are pending sentencing. The former dispatch supervisor at Mauran, Christian Hernandez, 37, who was previously charged in the case, has also pleaded guilty and awaits sentencing.
According to court documents, during the course of the conspiracy, Mauran submitted over $28 million in claims to Medicare. Krkasharyan’s co-defendants admitted that at least $6.6 million of those claims were false and fraudulent claims for medically unnecessary transportation services. Medicare paid at least $3.1 million on those false and fraudulent claims.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the United States Attorney’s Office for the Central District of California. The case was investigated by the FBI and HHS-OIG. Trial Attorneys Alexis D. Gregorian and Jeremy R. Sanders of the Fraud Section prosecuted the case.
Ellisville Man Indicted on Wire Fraud ChargesRead the Press Release
William Glaser, 60 of Ellisville, Missouri surrendered this morning in federal court to an Indictment charging him with three counts of wire fraud in connection with his solicitation of more than $1,000,000 in investments from three former clients. The investments went to Paul Creager of Everett Builders whose St Louis County construction company was liquidated by creditors last summer.
The indictment alleges that, between 2015 and 2016, Glaser was working as a financial advisor and misled his clients by falsely representing he had put his own money into Creager’s company and by failing to disclose that he was receiving large commissions out of his client’s funds. In order to liquidate his clients’ investments so that they could go to Creager, Glaser facilitated the establishment of self-directed IRAs on his clients’ behalf. Soon after the establishment of these accounts, Creager placed large portions of his clients’ retirement portfolios into high-yield unsecured promissory notes with Creager’s company. No payments were made on any of the notes.
Creager himself has pleaded guilty to one case charging him with wire fraud in connection with the solicitation of investments for his company and faces a second case alleging similar misconduct in the solicitation of another investor and an additional fraud scheme related to the closing on one of his properties. Glaser is not alleged to have participated in either of the fraud schemes with which Creager has been charged.
If convicted, Creager faces up to 20 years’ imprisonment, a fine of more than $250,000 or both per count. Restitution to the victims is also mandatory and the government is seeking a money judgment by way of a forfeiture allegation to further facilitate the recovery of any funds available for restitution.
This case was investigated by the St. Louis division of the FBI. Tom Albus is handling the case for the U.S. Attorney’s office.
Eastern Panhandle man sentenced to nearly nine years for heroin and cocaine distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Gerald Gibbs, of Kearneysville, West Virginia, was sentenced today to 105 months incarceration for his role in a drug distribution operation, United States Attorney Bill Powell announced.
Gibbs, age 30, pled guilty to one count of “Conspiracy to Distribute a Controlled Substance” in December 2017. Gibbs admitted to conspiring to distribute 100 grams or more of heroin and 28 grams or more of cocaine. The crime took place from June 2016 to March 2017 in Jefferson County, West Virginia.
Gibbs was also ordered to forfeit $16,774, a .380-caliber pistol, a .410-caliber shotgun, a 2006 Jaguar SJR-S, a 2006 BMW 750LI, and a 2006 Lexus RX400.
Assistant United States Attorneys Lara K. Omps-Botteicher and Anna Z. Krasinski prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
East Point Man Pleads Guilty in Methamphetamine ConspiracyRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Bobby Martinez, age 28, of East Point, GA entered a plea of guilty April 16, 2018 to Conspiracy to Possess with Intent to Distribute Methamphetamine. Mr. Martinez entered his plea in Macon before District Court Judge Marc T. Treadwell.
Facts stipulated in the plea agreement show that on October 20, 2016, intercepted communication revealed co-defendants Ruben Angel Perez a/k/a “El Rey” and Walter Williams a/k/a “Bubba” discussed Mr. Williams obtaining methamphetamine for further distribution within the Middle District of Georgia. Mr. Williams then contacted Shana Walker to have her serve as the courier to meet with Mr. Perez’s courier, who was identified as Mr. Martinez. Agents conducted surveillance and observed Ms. Walker meet with Mr. Martinez at a shopping center in Ellenwood, Georgia. The agents observed Mr. Martinez retrieve a blue Nautica shopping bag from his vehicle and place it in Ms. Walker’s vehicle. They then saw Mr. Martinez retrieve a black bag from Ms. Walker’s vehicle and place it in his vehicle before they both left.
Later, a trooper with the Georgia State Patrol conducted a traffic stop on Mr. Martinez for speeding. After seeking permission to search the vehicle, the trooper located $31,500 inside a black bag. Following the traffic stop, a phone call was intercepted between Mr. Perez and Mr. Williams wherein they discussed that the police had seized the money from Mr. Perez’s courier. Mr. Perez asked Mr. Williams how much money he sent with the courier and Mr. Williams told him it was $31,500.
Agents surveilled Ms. Walker as she returned to Mr. Williams’ residence after meeting with Mr. Martinez. Agents executed a search warrant and located Ms. Walker in a bedroom with a blue Nautica bag and five saran wrapped Tupperware containers with what was later confirmed to be 2,969.2 grams of d-Methamphetamine Hydrochloride with a purity of 99%.
Mr. Martinez admits that from May to October, 2016, he knowingly conspired with others to possess with the intent to distribute methamphetamine in the Middle District of Georgia. The amount of drugs attributable to Mr. Martinez is more than 4.5 kilograms of Ice.
Mr. Martinez faces up to 20 years imprisonment, a maximum fine of $1 million, or both, and a term of supervised release of three years.
Mr. Williams, Mr. Perez, and Ms. Walker, along with several other co-defendants in the case, have previously entered guilty pleas for their roles in the conspiracy.
The case was investigated by the Drug Enforcement Administration, the Georgia Bureau of Investigation, and the Peach County Sheriff’s Office. Assistant United States Attorneys Beth Howard and Jim Crane are prosecuting the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Dubuque Drug Dealer to Serve over 15 Years in Federal PrisonRead the Press Release
A man who sold crack cocaine out of his Dubuque residence was sentenced today to more than 15 years in federal prison.
Desmond Williams, age 30, from Dubuque, Iowa, received the prison term after an October 25, 2017, guilty plea to distribution of a controlled substance near a protected location.
In a plea agreement, Williams admitted selling crack cocaine from February 2016 through September 2016. Some of the sales took place inside his home, which was located near multiple playgrounds. At the sentencing hearing, the Court noted that Williams resided in the home with his then-girlfriend and a three-month old infant, during the time that he was selling drugs out of the home. Williams has two prior felony drug convictions.
Williams was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. He was sentenced to 188 months’ imprisonment. He must also serve a 6-year term of supervised release after the prison term. There is no parole in the federal system.
Williams 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 Justin Lightfoot and investigated by the Dubuque Drug Task Force, the Dubuque Police Department, and the Dubuque County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-1046.
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Drugs, Gun Equal 10 Years in Federal PrisonRead the Press Release
TOPEKA, KAN. – A Salina man who was arrested with drugs in his possession and a gun under his pillow was sentenced today to 10 years in federal prison, U.S. Attorney Stephen McAllister said.
Michael Allen Carter, 29, Salina, Kan., pleaded guilty to one count of possession with intent to distribute methamphetamine. In his plea, he admitted that on May 30, 2017, investigators who searched his residence found 80 grams of 99 percent pure methamphetamine and a pistol under the pillow on his bed. The pistol was a Taurus 9 mm.
McAllister commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Greg Hough for their work on the case.
District Heights Man Sentenced to 10 Years in Prison for Drug and Gun ChargesRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge Paul W. Grimm sentenced Erron Deon Robinson, age 32, of District Heights, Maryland today to ten years in prison, followed by five years of supervised release, for possession with intent to distribute 100 grams or more of a substance containing a detectable amount of fentanyl and being a felon in possession of a firearm.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Baltimore Field Division; Chief Henry P. Stawinksi III of the Prince George’s County Police Department; and Chief Peter Newsham of the Metropolitan Police Department, Washington D.C.
According to his plea agreement, in August 2017, law enforcement officers attempted to execute an arrest warrant for Robinson, which had been issued by the Superior Court for the District of Columbia. After apprehending Robinson, officers searched his residence and found a loaded Sig Sauer 9mm handgun, a loaded Glock 10mm handgun, a box of ammunition, approximately 175 grams of a substance containing a detectable amount of several substances, including furanyl fentanyl, fentanyl, and heroin, digital scales, a large bag of Mannitol powder, and $6,825.00 United States currency.
Prior to August 23, 2017, Robinson had been convicted of a felony, which prohibited him from legally possessing firearms or ammunition.
United States Attorney Robert K. Hur praised the ATF, the Prince George Police Department, and the D.C. Metropolitan Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Michael Packard, who prosecuted the case.
Detroit Man Sentenced for Federal Heroin CrimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who was caught with heroin in Huntington in 2015 was sentenced to 49 months in federal prison today, announced United States Attorney Mike Stuart. JaJuan Thrasher, 30, previously pled guilty in January to possession with intent to distribute heroin. Stuart commended the work of the Huntington FBI Drug Task Force.
“Detroit drug dealers are soon to be a mere footnote in Huntington’s history,” said United States Attorney Stuart. “Thrasher is just the latest to be going to federal prison as a result of our efforts.”
On September 14, 2015, members of the Huntington FBI Drug Task Force executed a search warrant at 2317 Lincoln Avenue, Apartment A in Huntington. When investigators executed the warrant, they located Thrasher and two additional individuals inside the residence. Investigators subsequently seized approximately 18 grams of heroin, which was packaged for distribution, from Thrasher’s pocket. Thrasher admitted to investigators that he had been engaged in distributing heroin in the Huntington area. As part of his plea, Thrasher also admitted that he and others used the Lincoln Avenue apartment to distribute heroin between the summer of 2015 and September 14, 2015.
Assistant United States Attorney Joseph F. Adams handled the prosecution. United States District Court Judge Robert C. Chambers imposed the sentence.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Defendant Indicted for Swindling Investors in Binary Options and Cryptocurrency SchemeRead the Press Release
A three-count indictment was unsealed today in federal court in Central Islip, New York, charging Blake Kantor, also known as “Bill Gordon,” with conspiracy to commit wire fraud, obstruction of an official proceeding and making false statements to Special Agents of the Federal Bureau of Investigation. Kantor was arrested by federal authorities today and is scheduled to be arraigned this afternoon before United States Magistrate Judge Gary R. Brown.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), James D. Robnett, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), and James McDonald, Director, Division of Enforcement, U.S. Commodity Futures Trading Commission (CFTC), announced the charges.
As alleged in the indictment, in March 2014, Kantor established a company known as Blue Bit Banc or Blue Bit Analytics, Ltd. (“BBB”) that sold binary options, a type of investment in which investors are promised an opportunity to be paid predetermined amounts based upon the particular price of securities, commodities or other investments at particular points in time. To establish Blue Bit Banc, Kantor used approximately $10,000 drawn from a bank account established at a TD Bank branch located in Suffolk County within the Eastern District of New York. From approximately 2014 to 2017, Kantor and others solicited and took in approximately $2.1 million from approximately 713 investors in BBB’s binary options. Kantor did not inform those investors, however, that a computer software used by BBB allowed BBB to fraudulently alter data associated with binary options investments so that the probability of investors earning a profit favored BBB and disadvantaged investors. To further the scheme, Kantor directed the opening of bank accounts—including one in the island nation of St. Kitts and Nevis—using aliases and the identifying information of other people. Kantor further converted monies that investors invested into ATM Coin, a worthless cryptocurrency that Kantor misleadingly told investors was worth substantial sums of money.
As also alleged in the Indictment, in October 2017, Kantor directed a co-conspirator to alter lists of BBB customers after FBI agents informed Kantor that they were investigating his involvement in binary options. Thereafter, Kantor met with FBI agents and falsely stated in substance that he had not been involved in binary options since August 2013 when, in reality, he had established BBB around March 2014 and was employed there until around October 2017.
“As alleged, Kantor used a computer program to generate manipulated data to cheat hundreds of investors out of their hard-earned savings,” stated United States Attorney Donoghue. “To cover-up his fraudulent scheme, Kantor then lied to the FBI and ordered the alteration of documents that would assist agents in identifying his victims. We will continue to work closely with our law enforcement partners to vigorously prosecute individuals who defraud the investing public and obstruct law enforcement’s ability to detect and prosecute financial crimes.”
“The all-or-nothing option Kantor’s victims were offered at the onset of their investment had a predetermined ending, one in which they stood to face significant financial losses, as alleged,” stated FBI Assistant Director-in-Charge Sweeney. “The odds were stacked against them from the beginning, while Kantor had everything to gain. The FBI will continue to be a major force in confronting those who think they can evade the law and make an easy profit off the misfortune of others.”
“In addition to enforcing the nation’s tax laws, the Special Agents of IRS-Criminal Investigation take particular interest in cases where our expertise is warranted to uncover allegations of financial fraud,” stated IRS-CI Special Agent-in-Charge Robnett. “The allegations outlined in this indictment detail acts of deceit and offshore money movement in the evolving world of cryptocurrency, which impacts the trust investors have with our financial system.”
“The CFTC is committed to working in parallel with our law enforcement partners to ensure that fraudsters in our markets are brought to justice and customers are protected,” stated CFTC Division of Enforcement Director McDonald. “This type of coordination is particularly important in cases like this one, where the alleged scheme stretched across multiple markets, including the market for virtual currencies.”
If convicted, Kantor faces a maximum term of imprisonment of 20 years on each of the conspiracy to commit wire fraud and obstruction of an official proceeding charges and five years on the false statements charge.
The charges contained in the indictment are merely allegations, and the defendant is presumed 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 Bradley T. King and Madeline M. O’Connor are in charge of the prosecution.
The Defendant:
BLAKE KANTOR (also known as “Bill Gordon”)
Age: 42
Residence: Manhattan, New YorkE.D.N.Y. Docket No. 18-CR-177 (SJF)
Dallas Man Sentenced to Life in Federal Prison for Drug OffenseRead the Press Release
FORT WORTH, Texas — Arnoldo Morfin-Arias, aka “Efrain Arias” and “Pollo,” 44, of Dallas, Texas, was sentenced today by U.S. District Judge John McBryde to Life in federal prison following his guilty plea in November 2017 to one count of conspiring to traffic in methamphetamine, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Morfin-Arias was charged in a superseding indictment in October 2017 along with six others for their roles in a methamphetamine conspiracy. Twenty-two others have also been charged in different indictments and informations in connection with Morfin-Arias for trafficking in methamphetamine, cocaine, heroin, and for money laundering. Morfin-Arias operated in the Dallas/Fort Worth area, and elsewhere in the United States. He has been in custody since the time of his arrest in California in August 2017.
Documents filed in the cases reveal that since at least early 2015, Morfin-Arias received large amounts of methamphetamine directly from a Mexico-based source of supply. In turn, Arias distributed multi-kilogram quantities of methamphetamine through multiple Dallas based distributors who have all pled guilty to the conspiracy.
The Federal Bureau of Investigation conducted the investigation with assistance from DEA, ATF, U.S. Marshals Service, Arlington Police Department, Fort Worth Police Department, Dallas Police Department, Dallas County Sherriff’s Clean Air Task Force, Grand Prairie Police Department, Denton County Sherriff’s Office, Texas Department of Criminal Justice Office of Inspector General, the Texas Department of Public Safety, ICE ERO, and Tarrant County Combined Narcotics Enforcement Team.
Assistant U.S. Attorney Shawn Smith prosecuted.
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Convicted Felon Sentenced to 110 Months Imprisonment for Illegally Possessing a FirearmRead the Press Release
Memphis, TN – Damenion Richmond, 36, was sentenced to 110 months in federal prison for being a convicted felon in possession of a firearm. U.S. Attorney D. Michael Dunavant of the Western Division of Tennessee announced the sentence today.
According to information presented in court, on February 19, 2017, Mrs. Sheris Richmond called 911 to report her husband, Dameion A. Richmond, fired shots at her on the expressway after a verbal altercation at her home. Mrs. Richmond said she and her husband argued at the residence when he drew a handgun and pointed it at her face. He then fled the scene in his vehicle; Mrs. Richmond pursued him in her vehicle until he stuck a gun out of the window and fired shots at her along the way. Mrs. Richmond called 911 for police assistance and pulled into the parking lot of Click’s Pool Hall at 3705 Malco Way, in Memphis, Tenn.
U.S. Attorney D. Michael Dunavant said: "Reducing violent crimes committed with firearms is the top priority of this office and the Department of Justice. Prohibited persons in possession of firearms, such as convicted felons, persons with histories of domestic violence, and unlawful users of illegal narcotics present a known and immediate risk of violence to their families and the community at large. This is exactly the type of dangerous offender that the PSN Task Force is designed to target, and I commend their work in holding Richmond responsible and removing him from our streets."
When law enforcement arrived on the scene, Mr. Richmond was questioned and asked to step out of the vehicle. While searching the vehicle, Memphis Police Department officers discovered a Mauser .32 pistol where the defendant had been sitting. The magazine was empty, but the chamber still held one live round. Mr. Richmond admitted to possessing the gun but stated he only fired shots in the air. He also confessed to being a convicted felon. A further search of the vehicle yielded another weapon, a Smith and Wesson .22 caliber pistol with three magazines. Two of the magazines had 12 live rounds each and the third magazine had six live rounds.
Several small bags of drugs containing crack cocaine, marijuana, ecstasy and other pills were located in the vehicle. The defendant admitted to law enforcement that the guns and drugs were his property and did not belong to the passengers in the car.
The case was investigated by Project Safe Neighborhoods (PSN) Task Force, which includes the U.S. Attorney’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Memphis Police Department; and the Shelby County Sheriff’s Office, who have all joined together to address gun-related crimes through aggressive investigation and prosecution. 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.
Assistant U.S. Attorney Raney Irwin prosecuted this case on the government’s behalf.
Coast Woman Sentenced to Almost 8 Years in Prison for Prescription Forgery ConspiracyRead the Press Release
Gulfport, MS – Nakita Marie Piernas, 29, of Pass Christian, was sentenced today by U.S. District Judge Sul Ozerden to 92 months in federal prison, followed by three years of supervised release, for conspiring to possess with intent to distribute a controlled substance, announced U.S. Attorney Mike Hurst and Drug Enforcement Administration (DEA) Assistant Special Agent in Charge Derryle Smith. Piernas was also ordered to pay an $8,000.00 fine.
On October 24, 2017, Piernas pled guilty to count one of a 42-count indictment. Piernas admitted to conspiring with others to distribute Oxycodone, Hydrocodone, Amphetamine, Alprazolam and Klonopin from 2014 until June 21, 2017. Piernas was an employee of Gulf Oaks Mental Health Clinic starting in October 2014. Shortly after starting her employment, Andrea Opoku, a co-worker, taught her how to write fraudulent prescriptions. Tyrone Thomas, another employee of the clinic, would recruit individuals who wanted prescriptions and were willing to pay between $100 and $200. Once Thomas found someone wanting a fraudulent prescription, that person would provide a name and date of birth to put on the fraudulent prescription. Piernas or Opoku would then write the prescription and someone would come to the clinic to get it.
During the investigation, DEA uncovered over 100 fraudulent prescriptions written by Opoku and Piernas. The prescriptions were in over 50 different individuals’ names. DEA further learned that the individuals who obtained the fraudulent prescriptions would either self-medicate with the narcotics or sell them on the street. Opoku and Piernas would also write prescriptions for one another, and at times, they would verify the fraudulent prescriptions if a pharmacist called the clinic questioning its validity. During the sentencing hearing, the Court found that Piernas was a leader or organizer of the conspiracy ring.
Opoku was sentenced by Judge Ozerden on March 5, 2018, to 92 months in prison, followed by three years of supervised release, and ordered to pay an $8,000 fine. Thomas was sentenced by Judge Ozerden on March 2, 2018, to 103 months in prison, followed by three years of supervised release, and ordered to pay a $5,000 fine.
The case was investigated by the DEA Tactical Diversion Squad and the Mississippi Bureau of Narcotics. It was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Clifton Park Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – William C. Ruff, age 43, of Clifton Park, New York, pled guilty today to distributing child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Ruff admitted that on eight occasions between October 10, 2016 and December 17, 2016, he used file-sharing software to distribute child pornography over the Internet. The pornographic videos and images depicted children as young as 3 years old.
Ruff, who has been in custody since his arrest on December 21, 2016, is scheduled to be sentenced on August 15, 2018 by Senior United States District Judge Norman A. Mordue. He faces at least 5 years and up to 20 years in prison, at least 5 years and up to lifetime post-imprisonment supervised release, and a maximum $250,000 fine. 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. Ruff will also have to register as a sex offender when he is released from prison.
This case was investigated by the FBI, with assistance from the Saratoga County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Joseph A. Giovannetti.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Cleveland man sentenced to nearly 16 years in prison for firing shotgun during carjackingRead the Press Release
A Cleveland man was sentenced to nearly 16 years in federal prison for firing a shotgun during a carjacking in Euclid.
Cody M. Coats, 25, was found guilty of carjacking and discharging a firearm during a crime of violence. U.S. District Judge Solomon Oliver sentenced Coats to 191 months in prison.
Coats used an Itahca short-barreled shotgun when he carjacked someone and stole their 2005 Chrysler Crossfire outside a Euclid bar on Aug. 14, 2017. He crashed the car on East 222nd Street near Lakeshore Boulevard following a police chase and was arrested, according to court documents.
“The defendant earned this sentence when he fired a shotgun while carjacking the victim,” U.S. Attorney Justin E. Herdman said. “Those who use firearms to commit crimes put us all at risk. The Euclid Police Department and ATF did a tremendous job bringing this person to justice.”
“ATF is committed to combating gun violence in our communities,” said Trevor Velinor, ATF Special Agent in Charge for the Columbus Field Division. “We will continue to work with our law enforcement partners, including the Euclid Police Department, to arrest violent criminals and make our communities safer.”
“We are pleased that the U.S. Attorney’s Office adopted this case,” Euclid Police Chief Scott Meyer said. “The officers and detectives of the Euclid Police Department did an outstanding job with the apprehension and investigation. We must all work together to send the message that violent crime will not be tolerated in our communities.”
This case was investigated by the ATF and Euclid Police Department. It is being prosecuted by Assistant U.S. Robert J. Patton.
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.
Clarence Investment Advisor Pleads Guilty to Bilking Clients Out of Hundreds of Thousands of DollarsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Michael Giokas, 58, of Clarence, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to wire fraud for defrauding numerous clients of his investment advisory firm out of hundreds of thousands of dollars. The charge carries a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that the defendant was a financial advisor and president of Giokas Wealth Advisors, located in Clarence. In that role, Giokas provided financial advisory services to more than 40 individual clients.
Between May 2017 and October 2017, the defendant persuaded certain clients to withdraw money from their investment accounts at Nationwide Mutual Insurance Company and invest the money in a company called Trinity Council, LLC. Giokas claimed that Trinity Council was a fund that invested in private corporations; that investments were guaranteed to earn interest between eight and nine percent per year; and that investment principal was guaranteed. The defendant also provided a fraudulent promissory note to one of his clients to convince the client that his investment in Trinity Council was legitimate.
Trinity Council was actually a shell company that engaged in no investment or business activity. Giokas was the sole member and only owner of Trinity Council, and the only person with signature authority on its bank accounts, which the defendant opened for the purpose of executing this scheme to defraud.
In a separate scheme, between 2015 and October 2017, Giokas prompted Nationwide to transfer money from his clients’ Nationwide accounts to the defendant under the guise of “fee requests.” Giokas claimed that he was entitled to the requested money as investment advisory fees, despite the fact that the requested amounts greatly exceeded what the defendant was entitled to pursuant to his fee agreements with his clients.As a result of the two schemes, Giokas defrauded clients out of $1,473,396.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Kevin P. Lyons.
Sentencing is scheduled for July 20, 2018, at 1:00 p.m. before Judge Arcara.
Chicago Man Sentenced to 57 Months for Defrauding Plattsburgh CompanyRead the Press Release
SYRACUSE, NEW YORK – Debashis Ghosh, age 54, of Chicago, Illinois, was sentenced today to 57 months in prison, to be followed by 3 years of supervised release, for conspiring to defraud a Plattsburgh, New York, company of $2.5 million.
The announcement was made by United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
Ghosh and Keith Eric Jergensen, age 58, of Salt Lake City, Utah, were convicted in October 2017 of wire fraud conspiracy following a 7-day trial presided over by United States District Judge Brenda K. Sannes. In imposing sentence, Judge Sannes also ordered Ghosh to pay $2.5 million in restitution to his victims.
On March 2, 2018, Judge Sannes sentenced Jergensen to 59 months in prison, to be followed by 3 years of supervised release, and also ordered him to pay $2.5 million in restitution to his victims.
The evidence at trial demonstrated that Jergensen and Ghosh were Co-Chief Executive Officers of Verdant Capital Group, LLC (“Verdant”), based in Chicago.
Plattsburgh-based Laurentian Aerospace Corporation (“Laurentian”) retained Verdant to raise funds for the construction of an airplane maintenance, repair and overhaul facility to be built at the former United States Air Force base in Plattsburgh.
Jergensen and Ghosh asked Laurentian to invest $2.5 million as seed money for the project. They and Laurentian agreed that this money would remain in a Wells Fargo account and could not be moved without the authorization of Laurentian.
Laurentian, drawing on funds contributed by its board members and one outside investor, wired $2.5 million into the Wells Fargo account on December 3, 2010. Five days later, Jergensen and Ghosh began transferring the money out of the account without Laurentian’s authorization, and by March 18, 2011 they had transferred all of the $2.5 million out of the account.
Jergensen and Ghosh used Laurentian’s $2.5 million to pay Verdant’s expenses including employees and contractors, and to pay others, including payments totaling $1.75 million to a now-defunct wind turbine company that Ghosh was a minority owner of; transfers of $96,500 to Jergensen’s company Contour Composites, Inc. of Utah; a $55,000 “loan” to a friend that the friend never repaid; and payments totaling $14,500 to an Arizona man who was promising them access to union pension funds.
Having spent the money, and as part of their conspiracy, Jergensen and Ghosh then spent several years falsely assuring Laurentian and its investors that their money was safe and secure, with Jergensen going so far as to forge a memorandum of understanding that purported to show that Laurentian’s money was in a secured bank account at Wells Fargo. The victim investors included a retired United States Air Force Colonel, a former New York City Deputy Mayor, a retired law firm partner, and several retired executives from the financial and airline industries. To date, Laurentian has been unable to build the airplane facility in Plattsburgh.
The evidence at trial also demonstrated that Jergensen and Ghosh misappropriated an additional $2.4 million in funds that other businesses had entrusted to them.
This case was investigated by the FBI and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Cedar Rapids Bicyclist Sentenced to Federal Prison for Possessing Meth to Distribute to OthersRead the Press Release
A man who police stopped when he was riding his bicycle while in possession of more than 5 grams of methamphetamine that he intended to share with others was sentenced today to almost 6 years in federal prison.
Kenneth John Pena from Cedar Rapids, Iowa, received the prison term after a November 20, 2017, guilty plea to possession with intent to distribute methamphetamine.
In previous hearings, evidence showed that Pena was riding his bicycle in Cedar Rapids at 4:50 am without the proper lighting equipment. Police officers stopped him and discovered Pena had an outstanding warrant for his arrest. While officers were arresting him, they found methamphetamine, marijuana, pipes, and a scale in his possession. Pena has a lengthy criminal history, including multiple prior convictions for assault or battery, a prior drug trafficking conviction in 1994, and a prior federal conviction for being a felon in possession of a firearm.
Pena was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Pena was sentenced to 71 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Pena is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Cedar Rapids Police Department. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 17-CR-30.
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Caryville Resident Enters Guilty Plea for Role in Methamphetamine Distribution ConspiracyRead the Press Release
KNOXVILLE, Tenn. – On April 16, 2018, Linda S. Ward, 55, of Caryville, Tennessee, pleaded guilty to conspiracy to distribute 50 grams or more of methamphetamine. Her sentencing hearing is set for 10:00 a.m., August 6, 2018, in U.S. District Court. She faces a 10-year mandatory minimum sentence.
In February 2018, a federal grand jury returned a seven-count indictment against Ward and ten others alleging various narcotic, firearms, and money laundering offenses. Those charged in the indictment include:
- Nathan S. Marlow, 22, of Duff, Tennessee;
- Nicholas B. Williams, 27, of Winder, Georgia;
- Justin P. Morris, 26, of Auburn, Georgia;
- Coty E. Malicoat, 21, of Duff, Tennessee;
- Michael Chantz Sturdivant, 22, of Jefferson, Georgia;
- Samuel A. Rose, 21, of Clairfield, Tennessee;
- Andrea W. Robbins, 44, of LaFollette, Tennessee;
- Earl J. Jones, 49, of LaFollette, Tennessee;
- Kristin R. Damons, 24, of Winder, Georgia;
- Paige L. Russell, 24, of LaFollette, Tennessee;
In her plea agreement on file with the U.S. District Court, Ward agreed that she distributed between 50 and 150 grams of actual methamphetamine. According to the plea agreement, between July 2017 and February 2018, Ward obtained methamphetamine from Marlow, which she then sold. During the investigation, conversations between Ward and Marlow, in which they discussed obtaining and paying for methamphetamine provided by Marlow, were intercepted by law enforcement.
Russell pleaded guilty in April 2018 to a lesser-included offense and her sentencing is set for August 1, 2018. Jones has also filed plea agreement with the U.S. District Court. Trial for the remaining co-defendants is set for October 30, 2018.
This investigation began in 2016 and initially resulted in the conviction and sentencing of several others, discussed below, for their involvement in the drug conspiracy and money laundering.
James R. Lawson, 32, of Dayton, Tennessee, pleaded guilty in April 2017 to conspiracy to distribute 50 grams or more of methamphetamine and was sentenced in August 2017 to serve 120 months in federal prison, followed by five years of supervised release.
Teri L. Evans, 28, of Jacksboro, Tennessee, pleaded guilty in April 2017 to the lesser-included offense of conspiracy to distribute five grams or more of methamphetamine and was sentenced in April 2017 to serve 60 months in federal prison, followed by four years of supervised release.
Lee Ann Winstead, 57, of Caryville, Tennessee, pleaded guilty in May 2017 to conspiracy to distribute 50 grams or more of methamphetamine and was sentenced in August 2017 to serve 120 months in federal prison, followed by five years of supervised release.
Derrick Avery Cook, 36, of Jacksboro, Tennessee, pleaded guilty in May 2017 to conspiracy to distribute 50 grams or more of methamphetamine and was sentenced in August 2017 to serve 172 months in federal prison, followed by 10 years supervised release.
Larry Gerauld Hatfield, a/k/a Jerry Hatfield, 54, of Jacksboro, Tennessee, pleaded guilty in May 2017 to conspiracy to distribute 50 grams or more of methamphetamine and was sentenced in September 2017 to serve 121 months in federal prison followed by five years of supervised release.
Jeffrey M. Townsend, 57, of Fairmount Georgia, pleaded guilty on June 14, 2017, to conspiracy to distribute 50 grams or more of methamphetamine and was sentenced in October 2017 to serve 168 months in federal prison, followed by 10 years of supervised release.
Terry A. King, 40, of Jacksboro, Tennessee, pleaded guilty in May 2017 to conspiracy to distribute 50 grams or more of methamphetamine and was sentenced in October 2017, to serve 140 months in federal prison, followed by 10 years of supervised release.
Roger L. Young, 49, of Clinton, Tennessee, pleaded guilty in November 2016, to possession with the intent to distribute 50 grams or more of methamphetamine and was sentenced in October 2017 to serve 100 months in federal prison, followed by five years of supervised release.
Josh L. Lawson, 32, of Caryville, Tennessee, pleaded guilty in July 2017 to conspiracy to distribute 50 grams or more of methamphetamine and conspiracy to launder money. He was sentenced in November 2017 to serve 160 months in prison, followed by five years of supervised release.
Jesse M. Pinkerton, 37, of Sharps Chapel, Tennessee, pleaded guilty in June 2017, to conspiracy to distribute 50 grams or more of methamphetamine and was sentenced in November 2017 to serve 197 months in federal prison, followed by 10 years of supervised release.
James W. Lawson, 56, of Caryville, Tennessee, pleaded guilty in June 2017 to conspiracy to distribute 50 grams or more of methamphetamine and conspiracy to launder money. He was sentenced in December 2017 to serve 300 months in federal prison, followed by five years of supervised release.
Law enforcement agencies participating in this joint investigation include the Eighth Judicial Drug Task Force; Seventh Judicial Crime Task Force; Ninth Judicial Drug Task Force; Tenth Judicial Drug Task Force; Anderson County Sheriff’s Office; Campbell County Sheriff’s Office; Knox County Sheriff’s Office; Oak Ridge Police Department; LaFollette Police Department; Tennessee Highway Patrol; Tennessee Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms, and Explosives; U.S. Postal Inspection Service; U.S. Marshal Service; and Drug Enforcement Administration. Assistant U.S. Attorney Caryn L. Hebets represents the United States in court proceedings.
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Berkeley County man sentenced for filing a false tax returnRead the Press Release
MARTINSBURG, WEST VIRGINIA – Gary Johnson, of Martinsburg, West Virginia was ordered to pay $70,000 in restitution and sentenced today to two years probation for filing a false tax return, First Assistant United States Attorney Randolph J. Bernard announced.
Johnson, age 76, pled guilty to one count of “Filing a False Tax Return” in December 2017. Johnson admitted to filing an Income Tax Return for him and his wife in 2013, willfully understating his income from 9 West Hair Studio by approximately $187,176.02.
Assistant U.S. Attorney Jarod J. Douglas prosecuted the case on behalf of the government. The Internal Revenue Service investigated.
Chief U.S. District Judge Gina M. Groh presided.
Baltimore woman sentenced for money launderingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Stephanie Edmonds, of Baltimore, Maryland, was sentenced today to two years probation for money laundering, United States Attorney Bill Powell announced.
Edmonds, age 31, pled guilty to one count of “Conspiracy to Launder Monetary Instruments” in January 2018. Edmonds admitted to conspiring with others to conduct unlawful financial transactions in Berkeley and Jefferson Counties and elsewhere from August 2015 to December 2016.
Assistant United States Attorney Anna Z. Krasinski and Special Assistant U.S. Attorney Elizabeth D. Grant, also with the West Virginia Attorney General’s Office, prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.Baltimore man sentenced for his role in a heroin distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Steven Robinson, of Baltimore, Maryland was sentenced today to 144 months incarceration for distributing heroin, United States Attorney Bill Powell announced.
Robinson, also known as “H,” age 32, pled guilty to one count of “Conspiracy to Distribute Heroin” in January 2018. Robinson admitted to conspiring with others to distribute more than one kilogram of heroin with an illegal street value of more than $300,000 in Berkeley and Jefferson Counties and elsewhere from August 2015 to December 2016.
Assistant United States Attorney Anna Z. Krasinski and Special Assistant U.S. Attorney Elizabeth D. Grant, also with the West Virginia Attorney General’s Office, prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Anchorage Woman Sentenced to 105 Months in Federal Prison for Committing Three Bank Robberies Last MayRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Jennifer Marie Trengove, 41, of Anchorage, was sentenced today by Chief U.S. District Judge Timothy M. Burgess to serve 105 months in federal prison for committing three bank robberies in Anchorage last May. Trengove previously pleaded guilty in August 2017 to three counts of bank robbery.
According to court documents, Trengove robbed three different branches of Alaska USA Federal Credit Union during a spree between May 24 and May 26, 2017. Trengove committed the robberies at the E. Dimond Blvd. branch on May 24, at the E. Northern Lights Blvd. branch on May 25, and at the Hartzell Road branch on May 26. At each robbery, Trengove walked up to a teller station and presented a demand note to the teller. It was later determined by law enforcement officers that Trengove had not been carrying a firearm during the robberies.
At the sentencing hearing, Judge Burgess noted that Trengove had a long history of committing serious crimes dating back to when she was 13 years old. The previous convictions included a 2012 federal conviction for bank robbery in Oregon. Judge Burgess also noted that Trengove had a long history of substance abuse and mental health issues, and had been through multiple treatment programs, which had not prevented her from continuing to commit more crimes to support her drug dependency issues. Judge Burgess commented that there was little he could do at this point other than to protect the public by sentencing Trengove to a lengthy prison sentence.
The Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Joseph W. Bottini.
Allergan to Pay $3.5 Million to Settle False Claims Act Allegations Relating to LAP-BAND Bariatric Medical DeviceRead the Press Release
FOR IMMEDIATE RELEASE CONTACT ELIZABETH MORSE
www.justice.gov/usao/md (410) 209-4885
Baltimore, Maryland – New Jersey-based Allergan Inc. has agreed to pay $3.5 million to resolve allegations that Allergan caused health care providers to submit false claims to Medicare and other federal healthcare programs relating to the LAP-BAND Adjustable Gastric Banding System, a device approved by the U.S. Food and Drug Administration for weight reduction for adult patients with obesity who have failed more conservative weight-reduction alternatives.
The settlement agreement was announced today by United States Attorney for the District of Maryland Robert K. Hur; Maureen Dixon, Special Agent in Charge for the Office of Inspector General for the Department of Health and Human Services; and Robert E. Craig Jr., Special Agent in Charge for the Defense Criminal Investigative Service, Mid-Atlantic Field Office.
“Patients have every right to expect that medical devices used during surgery are free of defects. Patients also have the right to expect that procedures involving medical devices have been subject to the rigorous review and approval process of the Food and Drug Administration. When marketing and selling medical devices that may have defects or may be used in unapproved procedures, patients can be put at risk,” said Robert K. Hur, United States Attorney for the District of Maryland.
Allergan distributed, marketed, and sold the LAP-BAND, an inflatable silicone band that is placed around a patient’s stomach during a surgical procedure. Adding or removing saline fluid through a subcutaneous access port adjusts the LAP-BAND, which in turn constricts or expands the size of the stomach pouch.
The United States alleged that between January 2008 and November 2010, Allergan knowingly sold LAP-BANDs with defective or flawed access ports. To conceal the defect or flaw and to induce health care professionals to continue using the LAP-BAND, Allergan misrepresented facts concerning the cause of access port leaks to the public, health care professionals, and the FDA; failed to collect or maintain required data and complaint files; and offered and provided remuneration to health care professionals who reported access port leaks. Additionally, the United States alleged that between 2008 and 2012, Allergan knowingly advertised, marketed, and distributed the LAP-BAND for use in two procedures that were not approved by the Food and Drug Administration. Some of these procedures were not reasonable and necessary for the diagnosis or treatment of an illness or injury. To market and to induce health care professionals to use the LAP-BAND for these uses, Allergan provided remuneration to health care professionals in connection with proctoring, workshops, advisory boards, and training events in which these two uses were discussed and/or demonstrated.
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government's recovery. The civil lawsuit was filed in the District of Maryland and is captioned United States ex rel. Schwartz and Tinsley v. Allergan, CCB-10-2796. As part of today’s resolution, Dr. Schwartz and Mr. Tinsley will receive approximately $594,064 from the settlement.
The Federal share of the civil settlement is $3,300,360 and the state Medicaid share of the civil settlement is $199,640. The claims resolved by this settlement are allegations only, and there has been no determination of liability.
U.S. Attorney Robert K. Hur commended the HHS Office of Inspector General, Office of Personnel Management OIG, and the Department of Defense’s Criminal Investigative Services for their work in the investigation. Assistance also was provided by the National Association of Medicaid Fraud Control Units and offices of various state Attorneys General. The case was handled by Assistant United States Attorney Roann Nichols and Assistant Director Edward Crooke of the Department of Justice Civil Fraud Section.
Saturday 14 April 2018
Two Individuals Charged for Robbery and CarjackingRead the Press Release
SAN JUAN, Puerto Rico – On April 11, 2018, a federal grand jury returned a four-count indictment charging Eddie Ruiz-Vélez, a state correctional officer, and Yissette Burgos-Santiago, for interference with commerce by robbery, and using and carrying a firearm during a crime of violence. Ruiz-Vélez is also facing one count for carjacking, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is in charge of the investigation of the case and arrested both defendants without incident.
On January 21, 2018, Ruiz-Vélez and Burgos-Santiago, aided and abetted by others, planned and robbed a Chinese restaurant in the municipality of Yauco, PR. Burgos-Santiago was an employee of the Chinese restaurant. The defendants unlawfully took approximately $1,200 U.S. currency, from and in the presence of persons, against their will by means of actual and threatened force, violence, and fear of injury, immediate and future, to their person.
On that same date, Ruiz-Vélez, aiding and abetting others, with the intent to cause death or serious bodily harm took a 2010 Hyundai Elantra that had been transported, shipped, and received in interstate or foreign commerce, from and in the presence of a male victim by force, violence, and intimidation while carrying and brandishing a firearm.
Special Assistant U.S. Attorney Camille García-Jiménez is in charge of the prosecution case. If convicted, the defendants face from seven years to a maximum sentence of life imprisonment. The charges and allegations in the indictment are merely accusations; all defendants are presumed innocent unless and until proven guilty in a court of law.
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Friday 13 April 2018
United States Attorney Russell Coleman Announces Addition of Assistant United States Attorney to the Paducah District OfficeRead the Press Release
LOUISVILLE, Ky. - United State Attorney Russell M. Coleman announced today the addition of Assistant United States Attorney Madison Sewell to the Paducah, Kentucky, District Office effective immediately.
“As promised, this Office is committing resources to the Purchase, Pennyrile, and rural communities of our District.” stated United States Attorney Russell M. Coleman. “Madison Sewell brings a wealth of experience, talent, and passion for prosecuting both criminal and civil offenses. As a former prosecutor for this Office, Mr. Sewell has a proven record in tackling drug trafficking organizations, removing illegally held firearms from our streets, and protecting our most vulnerable citizens.”
Sewell joins Assistant United States Attorney Seth Hancock, branch manager of the Paducah office, in prosecuting cases before U.S. District Judges, in United States District Courts, located in Paducah, Owensboro and Bowling Green.
A Henderson, Kentucky native, Sewell attended Yale University and Stanford Law School before clerking for a district court judge in Washington State and then Sixth Circuit Judge, Hon. Eugene Siler in London, KY. Sewell briefly served as an Assistant Federal Public Defender in Ohio before joining the United States Attorney’s Office for the Western District of Kentucky from 2004-2008, to include a voluntary stint in the Paducah Office. Sewell prosecuted cases in the Environment and Natural Resources Division at Main Justice in Washington, D.C., and most recently served as an Assistant County Attorney in Henderson County.
“The announcement today of an additional full-time prosecutor is one more down payment on a promise to support our law enforcement partners in reducing criminal activity in the western part of the Commonwealth,” stated U.S. Attorney Coleman.
Union County, New Jersey, Tax Preparers Charged with Tax FraudRead the Press Release
NEWARK – Two Union County, New Jersey, tax preparers were arrested today on charges of filing scores of fraudulent tax returns, U.S. Attorney Craig Carpenito announced.
Samuel Davis Jr., 52, and Kyna Felder-Ruiz, 35, both of Plainfield, New Jersey, were indicted by a federal grand jury on April 11, 2018. Davis is charged with conspiring to aid and abet the filing of more than 70 false tax returns, seven counts of aiding and abetting in the filing of false tax returns, and three counts of filing his own false tax returns. Felder-Ruiz is charged with conspiring to aid and abet the filing of more than 70 false tax returns and four counts of aiding and abetting in the filing of false tax returns. They are scheduled to appear today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to the indictment:
Davis is the owner and operator of Get Organized Tax & Accounting (GOTA), a tax preparation business in Plainfield. He retired as a detective sergeant from the N.J. State Police in 2016 after 28 years. Felder-Ruiz, who worked for the N.J. State Police as a public safety dispatcher for approximately two years and is currently a firefighter for the City of Plainfield, New Jersey, works as a tax preparer at GOTA. For the tax years 2011 to 2016, Davis and Felder-Ruiz prepared false individual income tax returns for various clients. They used a number of fraudulent practices, including falsely claiming deductions and fabricating educational credits in order to obtain refunds for their clients in amounts greater than those to which they were entitled.
For the tax years 2012 through 2014, Davis filed false individual income tax returns by falsely reporting the gross business income to GOTA. By doing so, Davis defrauded the IRS of tens of thousands of dollars in taxes.
The false filing charges with which Davis and Felder-Ruiz are charged each carry a maximum potential penalty of three years in prison and a $100,000 fine or twice the gross pecuniary gain or loss from the fraud. The maximum penalty for the conspiracy offense is five years in prison and a fine of $250,000, or twice the gross loss or gain caused by the offense.
U.S. Attorney Carpenito credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Shana W. Chen of the Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense Counsel:
Davis: Thomas Ashley Esq., Newark
Felder-Ruiz: TBDU.S. Attorney’s Office Commemorates National Crime Victims’ Rights WeekRead the Press Release
BISMARCK – U.S. Attorney Christopher C. Myers announced that on April 13, 2018, the U.S. Attorney’s Office for the District of North Dakota hosted a National Crime Victims’ Rights Week Awards Ceremony to raise awareness about crime victims’ rights and to recognize individuals throughout the state who provide outstanding services to victims. Victim assistance awards were presented to the following individuals:
Assistant United States Attorney Victim Assistance Award – Jonathan O’Konek, U.S. Attorney’s Office, Bismarck.
Support Staff Victim Assistance Award – Vicki Thompson, Legal Assistant, U.S. Attorney’s Office, Fargo.
Victim-Witness Advocate Assistance Award – Amy Jacobson, Human Trafficking Navigator, Youthworks, Bismarck.
Special Agent Victim Assistance Award – Frank Gasper, Special Agent, Federal Bureau of Investigation, Bismarck.
State Law Enforcement Victim Assistance Award – Lt. Calise Linstrom, McHenry County Sheriff’s Office, Towner & Det. Dale Ackland, Jamestown Police Department, Jamestown.
Crime Victim Service Legacy Assistance Award – Paula Bosh, Victim Specialist, Federal Bureau of Investigation, Minot.
Special Courage Victim Assistance Award – Nikki Anderson, Thriver, Trained Therapeutic Arts Facilitator, Founder of Art of Hope and Healing, Plains Art Museum, Fargo.
United States Attorney Myers stated, “It is an honor to recognize these professionals who tirelessly work every day, and often into the evening, to ensure victims are safe and have a voice in the criminal justice system. These award winners are truly passionate about helping people and the recognition for their efforts is long overdue.”
The U.S. Department of Justice’s Office for Victims of Crime (OVC) leads communities throughout the country in their annual observances of the national Crime Victims’ Rights Week, April 8-14, by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. This year’s theme—Expand the Circle: Reach All Victims—highlights how the investment of communities in crime victims expands the opportunity for victims to disclose their victimization, connect with services, and receive the support they need. The theme also acknowledges the many barriers facing victims of crime especially those with disabilities, LGBTQ victims, older adults, speakers with limited English proficiency, American Indians and Alaska Natives, and others from historically marginalized communities.
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U.S. Attorney Reaches Settlement with Westchester Developer to Increase Accessibility for People with Disabilities at Two Apartment Complexes in Rockland CountyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that the United States has settled a federal Fair Housing Act (“FHA”) lawsuit against GINSBURG DEVELOPMENT COMPANIES (“GINSBURG DEVELOPMENT”), which was filed in September 2016. Under the settlement, GINSBURG DEVELOPMENT has agreed to make retrofits to two apartment complexes in Haverstraw, New York, the Riverside and the Parkside, which together contain more than 200 rental units, in order to make them more accessible to individuals with disabilities. GINSBURG DEVELOPMENT also has committed to establish procedures to ensure that its future residential development projects will comply with the accessibility requirements of the FHA. Additionally, the settlement requires GINSBURG DEVELOPMENT to provide up to $125,000 to compensate aggrieved persons and to pay a civil penalty of $50,000. The resolution of this lawsuit was approved on April 12, 2018, by U.S. District Judge Nelson S. Román. Previously, on September 28, 2016, the United States obtained in this lawsuit a court-ordered preliminary injunction on consent that requires GINSBURG DEVELOPMENT to ensure accessibility at four Westchester rental complexes currently under development – Saw Mill Lofts in Hastings-on-Hudson, Harbor Square Crossings in Ossining, and River Tides and 1177 Warburton Avenue in Yonkers.
Manhattan U.S. Attorney Geoffrey S. Berman said: “The Fair Housing Act’s accessibility provisions protect people with disabilities wherever they live. Today’s settlement, just one day after the 50th anniversary of the FHA, is part of the Office’s ongoing effort to fulfill the Act’s promise of accessibility throughout the Southern District of New York. All people, with or without physical limitations, should be able to live with dignity in accessible accommodations.”
The FHA’s accessible design and construction provisions require new multifamily housing complexes constructed after January 1993 to have basic features accessible to persons with disabilities. According to the allegations in the complaint and the factual admissions in the settlement stipulation, the Riverside and Parkside apartment complexes, which GINSBURG DEVELOPMENT designed and constructed, have a number of inaccessible features, including excessively high thresholds within individual units, insufficient clear floor spaces in bathrooms and kitchens, and doors in both individual units and common areas that are not wide enough to accommodate people in wheelchairs.
Pursuant to the settlement, GINSBURG DEVELOPMENT agrees to make retrofits to both public and common use areas and individual units to ensure that Riverside and Parkside are accessible. The settlement also requires GINSBURG DEVELOPMENT to establish procedures to ensure FHA compliance at its future development projects, including to retain an FHA compliance consultant to assess the design documents and conduct site visits to identify non-compliant conditions. In addition, GINSBURG DEVELOPMENT agrees to institute policies and training to ensure that its employees and agents will comply with the FHA’s accessibility requirements.
The settlement requires GINSBURG DEVELOPMENT to provide up to $125,000 to compensate aggrieved persons. Aggrieved persons may be entitled to monetary compensation from the fund created through today’s settlement. Aggrieved individuals may include those who:
- Were discouraged from living at Riverside or Parkside because of the lack of accessible features;
- Have been hurt in any way by the lack of accessible features at Riverside or Parkside;
- Paid to have an apartment at Riverside or Parkside made more accessible to persons with disabilities; or
- Otherwise were discriminated against on the basis of disability at Riverside or Parkside as a result of the inaccessible design and construction of the properties.
Any individual who may be entitled to compensation can file a claim by contacting the Civil Rights Complaint Line at (212) 637-0840, using the Civil Rights Complaint Form available on the United States Attorney’s Office’s website http://www.justice.gov/usao/nys/
civilrights.html, or by sending a written claim to:U.S. Attorney’s Office, Southern District of New York
86 Chambers Street, 3rd Floor
New York, New York 10007
Attention: Chief, Civil Rights Unit
Finally, the GINSBURG DEVELOPMENT also agrees to pay a civil penalty of $50,000.
Since 2010, the Office has filed nearly 30 lawsuits to enforce the FHA to combat racial, gender, and disability discrimination in housing, including in the areas of design and construction, sexual harassment, and fair lending.
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Li Yu, Natasha W. Teleanu, Jacob Lillywhite, and Lauren Lively are in charge of the case.
U.S. Attorney Announces the Indictments of Nineteen Individuals on Federal Firearms Charges; Several are Convicted FelonsRead the Press Release
Memphis, TN – On March 29, 2018, a federal grand jury indicted 19 individuals for federal firearms violations. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictments today. As charged in the indictments, seventeen of the defendants are prohibited by federal firearms laws from possessing firearms. In three of the cases, the grand jury charged the defendants with using a firearm during a drug or violent crime.
Several defendants charged in this series of indictments are alleged to be convicted felons. Under federal law, it is illegal for an individual convicted of a felony to possess a firearm. This is a violation of Title 18, United States Code (USC), § 922(g)(1). A violation of this section is punishable by a term of up to 10 years imprisonment, a fine of up to $250,000, and a term of supervised release of no less than two years. The penalty for a violation of § 922(g)(1) is enhanced when a defendant has a prior criminal record that includes three convictions for a violent felony or serious drug offenses. Under this enhanced sentencing provision, the defendant is subject to a mandatory minimumstatutory sentence of at least 15 years imprisonment, with a maximum sentence of life imprisonment.
U.S. Attorney D. Michael Dunavant said: "It is the goal of the Justice Department to reduce violent crime. As part of this effort, our office places a high priority on the criminal prosecution of individuals who, because they are convicted felons or have convictions for misdemeanor crimes of domestic violence, illegally possess firearms, or who use firearms to commit violent crimes or engage in drug trafficking while armed. We will continue our effort to reduce violent crime in West Tennessee by aggressively prosecuting those who possess firearms illegally or use firearms to commit crimes."
Federal firearms laws also prohibit an individual convicted of a misdemeanor crime of domestic violence from possessing a firearm. This is a violation of 18 USC §922(g)(9). An individual convicted of violating this section is subject to a term of up to 10 years imprisonment, a fine of up to $250,000, and a term of supervised release of no less than two years.
It is also against federal law to possess or use and carry a firearm during or in relation to a crime of violence or a drug trafficking crime. This is a violation of 18 USC § 924(c). A violation of this section is punishable by a mandatory minimum sentence of at least five years imprisonment to a maximum of life imprisonment.
Dennis Boykin, 26, of Memphis, was charged with possessing a Phoenix Arms .25 caliber pistol after being convicted of a felony, in violation of 18 USC § 922(g)(1). Assistant U.S. Attorney Libby Rogers is prosecuting this case.
Brian Brock, 38, of Memphis, was charged with possessing a Raven Arms .25 caliber pistol after being convicted of a felony, in violation of 18 § USC 922(g)(1). He was also charged in a second count of the indictment with possessing the same firearm after being convicted of a misdemeanor crime of domestic violence in violation of 18 USC § 922(g)(9). Special Assistant U.S. Attorney Bryce Phillips is prosecuting this case.
Kristen Brenner, 32, of Memphis, was charged with possessing a Sig Sauer 9mm caliber pistol after being convicted of a felony, in violation of 18 USC § 922(g)(1). Assistant U.S. Attorney Karen Hartridge is prosecuting this case.
Jacob Buggs, 36, of Memphis, was charged with possessing a Jimenez 9mm caliber pistol after being convicted of a felony, in violation of 18 USC § 922(g)(1). Assistant U.S. Attorney Karen Hartridge is prosecuting this case.
Timothy Cook, 27, of Memphis, was charged with possessing a Harrington and Richardson .32 S&W long caliber revolver after being convicted of a felony, in violation of 18 USC § 922(g)(1). Assistant U.S. Attorney David Biggers is prosecuting this case.
Marquez Harris, 25, of Memphis, was charged with possessing a Riger 9mm caliber pistol after being a convicted of a felony, in violation of 18 USC § 922(g)(1). Assistant U.S. Attorney Karen Hartridge is prosecuting this case.
Artavious Holmes, 23, of Memphis, was charged with possessing a Baretta 9mm caliber pistol in furtherance of drug trafficking crime, in violation of 18 USC § 924(c), and possession of less than 50 kilograms of marijuana with intent to distribute, in violation of 21 USC § 841(a)(1). The marijuana violation, as charged in the indictment, is punishable by imprisonment for up to five years, a fine of up to $250,000, and a term of supervised release of at least 2 years. Assistant U.S. Attorney Libby Rogers is prosecuting this case.
Alfonzo Johnson a/k/a "Alphonzo Johnson," 37, of Memphis was charged with possessing a Raven Arms .25 caliber pistol after being convicted of a felony, in violation of 18 USC § 922(g)(1). Special Assistant U.S. Attorney Bryce Phillips is prosecuting this case.
Philanese Martin, 34, ofMemphis, has been charged with possessing a Ruger .380 caliber pistol after being convicted of a felony in violation of 18 USC § 922(g)(1) and with intent to distribute marijuana; cocaine; and crack cocaine, in violation of title 21 USC § 841(a)(1). As charged in the indictment, the § 841(a)(1) violations are punishable by imprisonment for no more than 20 years, a fine of up to $250,000, and a term of supervised release of at least three years. Assistant U.S. Attorney Libby Rogers is prosecuting this case.
Jeremy McGarvey, 23, of Munford, has been charged with possessing a Remington .30-06 caliber rifle and a Taurus .380 caliber pistol after being convicted of a felony, in violation of 18 USC § 922(g)(1). Assistant U.S. Attorney Raney Irwin is prosecuting this case.
Hittites McKinney, 24, of Memphis, has been charged with possessing a Sig Sauer .40 caliber pistol after being convicted of a misdemeanor crime of domestic violence, in violation of 18 USC § 922(g)(9). Special Assistant U.S. Attorney Bryce Phillips is prosecuting this case.
Henry Mitchell, 39, of Memphis, has been charged with possessing a Browning 9mm pistol after being convicted of a felony, in violation of 18 USC § 922(g)(1). Assistant U.S. Attorney Libby Rogers is prosecuting this case.
Rodney Lee Parnell, 51, of West Memphis, AR, has been charged with the robbery of the Best Western Hotel on Madison Avenue in Memphis, in violation of 18 USC § 1951, and using and brandishing a firearm during a crime of violence, in violation of 18 USC § 924 (c). A violation of § 1951, the Hobbs Act, is punishable by a term of imprisonment of no more than 20 years, a fine of no more than $250,000, and a mandatory term of supervised release of five years. As charged in the indictment, a violation of § 924(c) is punishable by a minimum mandatory sentence of at least seven years imprisonment and a maximum sentence of life imprisonment. Assistant U.S. Attorney Kevin Whitmore is prosecuting this case.
Lazarus Payne, 34, of Memphis, has been charged with possessing an American Tactical 5.56 caliber rifle after being convicted of a felony, in violation of 18 USC § 922(g)(1). Assistant U.S. Attorney Raney Irwin is prosecuting this case.
Marlon Pruitt, 44, of Memphis, was charged with possessing a Winchester 20 gauge shotgun after being convicted of a felony, in violation of 18 USC 922(g)(1). He was also charged with possession of less than 50 kilograms of marijuana with intent to distribute in violation of 21 USC § 841(a)(1). This violation is punishable by a term of imprisonment of up to 5 years, a fine of up to $250,000, and a term of supervised release of up to 3 years. Assistant U.S. Attorney J. William Crow is prosecuting this case.
Stephen Seward, 28, of Memphis, was charged in a four-count indictment with violating federal firearms and drug laws. In count 3 of the indictment, he was charged with possessing a Sig Sauer .22 caliber pistol and a Ruger .380 caliber pistol after being convicted of a misdemeanor crime of domestic violence, in violation of 18 USC § 922(g)(9). He was also charged in 2 counts of the indictment with possession of heroin and cocaine with intent to distribute in violation of 21 USC § 841(a)(1). Each drug violation is punishable by a term of imprisonment of no more than 20 years, a fine of no more than $1,000,000, and a term of supervised release of at least 3 years. The grand jury also charged Seward with possessing a Sig Sauer .22 caliber pistol and a Ruger .380 caliber pistol in furtherance of the drug crimes charged in the indictment, in violation of title 18 USC § 924(c). A violation of § 924(c) as charged in this case is punishable by a minimum mandatory sentence of at least five years imprisonment and a maximum sentence of life imprisonment. Assistant U.S. Attorney J. William Crow is prosecuting this case.
Christopher Smith, 26, of Memphis, was charged with possessing a Magnum Research 9 mm caliber pistol after being convicted of a felony, in violation of 18 USC § 922(g)(1). Assistant U.S. Attorney Marques Young is prosecuting this case.
Leroy Taylor, 28, of Memphis, was charged with possessing a Ceska Zbrojovka 9 X 19mm caliber pistol after being convicted of a felony, in violation of 18 USC § 922(g)(1). Assistant U.S. Attorney Raney Irwin is prosecuting this case.
Terrance Ware, 25, of Memphis, was charged with possessing a Taurus .40 caliber pistol after being convicted of a felony, in violation of 18 USC § 922(g)(1). Assistant U.S. Attorney Marques Young is prosecuting this case.
The charges and allegations contained in the indictments are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Tonawanda Man Pleads Guilty to Distributing FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Dominique McDowell, 26, of Tonawanda, NY, pleaded guilty to possession with intent to distribute, and distribution of butyryl fentanyl and U-47700, before U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that the investigation began with the overdose death of an individual in the Town of Amherst. Subsequent investigation determined that between March 30, 2017, and April 18, 2017, the defendant sold butyryl fentanyl and U-47700 to undercover law enforcement officers on five separate occasions in the Town of Amherst and Tonawanda. In addition, between December 2016 and April 18, 2017, McDowell sold heroin to confidential sources on multiple occasions.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; the Amherst Police Department, under the direction of Chief John C. Askey; the Tonawanda Police Department, under the direction of Chief Jerome Uschold; and the New York State Police, under the direction of Major Edward Kennedy.
Sentencing is scheduled for July 28, 2018, before Judge Arcara.
Tonawanda Man Pleads Guilty to Distributing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Dakkar Young, 23, of Tonawanda, NY, pleaded guilty to distribution of child pornography, before U.S. District Judge Lawrence J. Vilardo. The charge carries a minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that in May 2017, the defendant uploaded eight pictures containing child pornography onto a social networking site. In December 2017, a search warrant was executed at the Young’s home and various electronics were seized. A forensic examination of the defendant’s cell phone revealed images of child pornography as well as videos of Young sexually abusing a child under the age of 16. As part of the plea, the defendant admitted to producing child pornography of the child.
The plea is the result of an investigation by the New York State Police ICAC Task Force, under the direction of Major Edward Kennedy, and Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Kevin P. Lyons.
Sentencing is scheduled for July 27, 2018, at 9:30 a.m. before Judge Vilardo.
Terminix Employee Illegally Applied Pesticides Containing Methyl Bromide to Residences in St. John, St. Croix, and St. Thomas, U.S.V.I.Read the Press Release
WASHINGTON – Jose Rivera, 59, was indicted yesterday by a federal grand jury for violating the Federal Insecticide, Fungicide, and Rodenticide Act. According to the indictment, Rivera illegally applied fumigants containing methyl bromide in multiple residential locations in the U.S. Virgin Islands, including the condominium resort complex in St. John, where a family of four fell seriously ill in March 2015, announced Assistant Attorney General Jeffrey H. Wood of the Environment and Natural Resources Division and United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands.
The indictment alleges that Rivera knowingly applied restricted-use fumigants at the Sirenusa resort in St. John for the purpose of exterminating household pests on or about Oct. 20, 2014, and on or about March 18, 2015. The defendant was also charged with applying the restricted-use pesticide in eight residential units in St. Croix and one additional unit in St. Thomas between April 2013 and February 2015.
In 1984, EPA banned the indoor use of methyl bromide products. The few remaining uses are severely restricted. Pesticides containing methyl bromide in the U.S. are restricted-use due to their acute toxicity, meaning that they must only be applied by a certified applicator. Health effects of acute exposure to methyl bromide are serious and include central nervous system and respiratory system damage. Pesticides can be very toxic and it is critically important that they be used only as approved by EPA.
Earlier this year, TERMINIX LP and TERMINIX, USVI were sentenced to pay a total of $9.2 million in criminal fines and restitution. The companies were also ordered to perform community service following an investigation and guilty pleas to their use and application of illegal fumigants in multiple residential locations in the Virgin Islands.
The case was investigated by EPA Criminal Investigation Division, working cooperatively with the Virgins Islands government and the Agency for Toxic Substances and Disease Registry. Senior Litigation Counsel Howard P. Stewart of the Justice Department’s Environmental Crimes Section, and Assistant U.S. Attorney Kim L. Chisholm for the District of the Virgin Islands are prosecuting the case with the assistance of Patricia Hick, EPA Region II Regional Criminal Enforcement Counsel.
An indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
For more information about EPA’s pesticide program and its requirements, visit www.epa.gov/pesticides/.
For more information on methyl bromide, visit www.epa.gov/region2/methyl-bromide.pdf.
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Strongsville man charged with selling anabolic steroidsRead the Press Release
A Strongsville man was charged in federal court for selling anabolic steroids, said U.S. Attorney Justin E. Herdman.
George Najjar, 57, was charged in a criminal information with one count of possession with intent to distribute steroids. Najjar did knowingly and intentionally manufacture and possess with the intent to distribute and distributed anabolic steroids from 2013 through December 3, 2014, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, 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.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Henry F. DeBaggis.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
South Jersey Business Owner Charged with Tax FraudRead the Press Release
Chung Lam, age 39, of Sicklerville, New Jersey, was charged today by Information with 12 counts of failure to collect and pay taxes, in violation of 26 U.S.C. § 7202, announced United States Attorney William M. McSwain. Lam owned a C&L Labor, a company that provided temporary workers to other companies. Lam paid hundreds of its employees in cash, as “under the table” wages on which no employment taxes were withheld.
If convicted the defendant faces a maximum possible sentence of 60 years imprisonment, a fine of $3,000,000, a special assessment of $1,200, and three years of supervised release.
The case was investigated by the Internal Revenue Service and is being prosecuted by Assistant United States Attorney Laurie Magid.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
South Florida Certified Public Accountant Indicted for Tax FraudRead the Press Release
A federal grand jury sitting in Miami, Florida, returned an indictment on Tuesday, April 10 charging a Miami, Florida, certified public accountant with tax evasion, failing to file tax returns and failing to pay over payroll taxes to the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.
According to the indictment, Darryl Sharpton owned The Sharpton Group, a Miami-based public accounting firm that specialized in financial and management consulting, audit and attestation, and tax and wealth planning. Sharpton allegedly filed personal income tax returns for the years 2004 through 2008 and 2010, but failed to pay the reported taxes. Sharpton is further alleged to have failed to file personal income tax returns for years 2011 through 2016 despite his obligation to do so.
The indictment charges that after Sharpton failed to pay his taxes, the IRS audited and assessed additional taxes against him and issued levies and liens in further effort to collect the unpaid taxes. Sharpton allegedly responded by removing himself from his company’s payroll, paying his personal expenses through the corporate bank accounts, and lying to an IRS collections official.
In addition, the indictment alleges that Sharpton failed to timely pay over to the IRS payroll taxes that he withheld from the paychecks of The Sharpton Group’s employees.
If convicted, Sharpton faces a statutory maximum sentence of five years in prison for the tax evasion charge, five years in prison for each count of failing to pay over payroll taxes, and one year in prison for each count of failing to file tax returns. He also faces a period of supervised release, restitution and monetary penalties. An indictment merely alleges that a crime has been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Greenberg commended special agents of IRS Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Christopher Clark and Tax Division Trial Attorneys Sean Beaty, Mara Strier, and Charles M. Edgar, Jr., who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
South Charleston Meth Dealer Sentenced to 8 Years for Federal Drug CrimesRead the Press Release
CHARLESTON, W.Va. – A methamphetamine dealer from South Charleston was sentenced today to 8 years in federal prison, announced United States Attorney Mike Stuart. Jamie Harmon, 38, previously pled guilty to distribution of methamphetamine.
Stuart commended the thorough investigation conducted by the Metropolitan Drug Enforcement Network Team (MDENT) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“Thanks to our law enforcement partners, another meth dealer is out of business,” said United States Attorney Mike Stuart. “Meth is a serious growing problem and now dealers are blending it with other poisons like fentanyl. It’s priority we keep these poisons off the streets and we’ll lock up every crystal meth dealer we can find.”
Harmon admitted that in January 2017, he and other individuals brought approximately four kilograms of crystal methamphetamine from Atlanta to Charleston. On January 12, 2017, officers with MDENT executed a search warrant at a hotel room and found over 130 grams of methamphetamine, scales, baggies, and a gun. The methamphetamine was part of the approximately four kilograms Harmon and others brought back from Atlanta, and it was lab-tested and confirmed to be over 90% pure. Harmon also admitted to distributing additional methamphetamine to confidential informants during controlled buys in March 2017.
Three other defendants involved in this methamphetamine conspiracy have been sentenced to federal prison. Quinton Funk, of Webster Springs, was sentenced to 21 years and 10 months in prison for conspiracy to distribute methamphetamine. Christopher Carte, of St. Albans, was sentenced to three years in prison for conspiracy to distribute methamphetamine. Holly Doub, of South Charleston, was sentenced to five days in federal prison for aiding and abetting the distribution of methamphetamine.
Assistant United States Attorneys Eric Bacaj and Haley Bunn were responsible for the prosecutions. United States District Judge Joseph R. Goodwin presided over these cases.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Seven Suspected Cocaine and Marijuana Traffickers ArrestedRead the Press Release
Montgomery, Alabama– Seven suspected cocaine and marijuana traffickers were arrested early Thursday morning, announced United States Attorney Louis V. Franklin, Sr. These arrests follow an indictment by a federal grand jury charging the seven defendants with conspiracy to distribute narcotics, primarily in the Montgomery area.
The following individuals are in custody: Cyrus Phyfier, 49, Edgar Lee Coleston, 40, Erwin Marvin Smith, 57, Gene Earl Easterling, Jr., 46, and George Edward Jones, III, 40, all from Montgomery. As well as Ernest Lee Rhodes, 35, from Greenville, and Jacques Bradley, Jr., 34, from Ohio.
The federal investigation has led to the seizure of approximately $1,000,000.00 in U.S. currency and jewelry, as well as the seizure of firearms and controlled substances.
Each defendant is charged with one count of conspiracy to distribute controlled substances, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life imprisonment. There is no parole in the federal system.
An indictment merely alleges that crimes have been committed. Each defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The defendants made their initial appearance in federal court on Thursday and will remain in federal custody pending a detention hearing.
The investigating agencies include the Drug Enforcement Administration (DEA), the Alabama Law Enforcement Agency, the Montgomery Police Department, the Prattville Police Department, the Elmore County Sheriff’s Office, the Central Alabama Drug Task Force, the Autauga County Sheriff’s Office, the Millbrook Police Department, the Butler County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Postal Inspection Service, the U.S. Marshals Service, and the State of Alabama Attorney General’s Office. Assistant United States Attorneys Curtis Ivy, Jr., and R. Randolph “Rand” Neeley are prosecuting the case.
Sentencings for April 6 - April 13, 2018Read the Press Release
CONRAD DEWAYNE WEBB, 53, of Glenrock, Wyoming was sentenced by Federal District Court Judge Scott W. Skavdahl on April 6, 2018 for being a felon in possession of a firearm. Webb was arrested in Glenrock, Wyoming. He received twenty-four months of imprisonment, to be followed by thirty-six months of supervised release. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
STACY JO KNAPP (AKA Stacy Jo Rafay), 43, of Gillette, Wyoming was sentenced by Federal District Court Judge Scott W. Skavdahl on April 6, 2018 for being a felon in possession of a firearm. Knapp was arrested in Gillette, Wyoming. She received thirty-six months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $200.00 fine, and a $100.00 special assessment. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
NOE ROBLES-CANALES, 34, of Zacatecas, Mexico was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 11, 2018 for illegal re-entry of a previously deported alien into the United States . Robles-Canales was arrested in Cheyenne, Wyoming. He received time served plus ten days to allow for deportation proceedings and ordered to pay $100.00 in special assessment to be remitted at the time of deportation. The US Immigration and Customs Enforcement Agency investigated this case.
LINUS SITTING EAGLE, 61, of Arapahoe, Wyoming was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 11, 2018 for Social Security Title II Representative Payee Fraud. Sitting Eagle appeared pursuant to a summons. He received twelve months of probation, and was ordered to pay restitution in the amount of $65,544.32 and a $100.00 special assessment. The Social Security Administration and FBI investigated this case.
DARREL "BUD" GOODMAN, 51, of Arapahoe, Wyoming was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 12, 2018 for conspiracy to distribute methamphetamine. Goodman was arrested in Arapahoe, Wyoming. He received forty-six months of imprisonment, to be followed by ninety-six months of supervised release, and ordered to pay a restitution in the amount of $750.00 and a $100.00 special assessment. The Fremont County Sheriff Office, Bureau of Indian Affairs, the Tribal Fish and Game, DEA, FBI, and the Wyoming Division of Criminal Investigation investigated this case.
VIRGIL JAMES BEHAN, III, 30, of Arapahoe, Wyoming was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 11, 2018 for conspiracy to distribute methamphetamine . Behan was arrested in Arapahoe, Wyoming. He received thirty months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $100.00 special assessment. The Fremont County Sheriff Office, Bureau of Indian Affairs, the Tribal Fish and Game, DEA, FBI, and the Wyoming Division of Criminal Investigation investigated this case.
ALBERT MEDICINE CLOUD, 28, of Thermopolis, Wyoming was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 12, 2018 for conspiracy to distribute methamphetamine. Medicine Cloud was arrested in Lander, Wyoming. He received twelve months and one day of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay community restitution in the amount of $200.00 and a $100.00 special assessment. The Fremont County Sheriff Office, Bureau of Indian Affairs, the Tribal Fish and Game, DEA, FBI, and the Wyoming Division of Criminal Investigation investigated this case.
HOKASHINA FASTHORSE, 31, of Riverton, Wyoming was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 12, 2018 for assault with a dangerous weapon with intent to do bodily harm. Fasthorse was arrested in Lander, Wyoming. Fasthorse received fifteen months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $100.00 special assessment. The Fremont County Sheriff Office, Bureau of Indian Affairs, the Tribal Fish and Game, DEA, FBI, and the Wyoming Division of Criminal Investigation investigated this case.
JAQUER GARCIA, 40, of Sheridan, Wyoming was sentenced by Federal District Court Judge Alan B. Johnson on April 13, 2018 for possession with intent to distribute methamphetamine. Garcia was arrested in Cheyenne, Wyoming. He received one hundred forty months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $100.00 special assessment. The Sheridan Police Department, Sheridan County Sheriff’s Office, and the Wyoming Division of Criminal Investigation investigated this case.
San Francsico Man Charged with Tax EvasionRead the Press Release
SAN FRANCISCO – San Francisco resident Jin Ming Yan was charged today in a criminal information with evading federal income taxes, announced Acting United States Attorney Alex G. Tse and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf.
According to the information, Yan, 54, of San Francisco, Calif., is alleged to have substantially underreported the amount of taxable income he owed for the 2011 tax year.
Yan’s initial appearance and arraignment are yet to be scheduled.
An information merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant in this case faces a maximum sentence of five years in prison, a fine of $250,000 or twice the value of the gain or loss from the offense, restitution, three years of supervised release, and a $100 special assessment. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation, and the Federal Bureau of Investigation.