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Thursday 12 April 2018
Texas Woman Sentenced to Five Years in Prison after Previously Pleading Guilty to Interstate Travel for the Purpose of Engaging in Illicit Sexual Conduct with Fifteen-Year-Old Franklinton MinorRead the Press Release
U.S. Attorney Duane A. Evans announced that MARTHA OJEDA, age 42, of Pflugerville, Texas, was sentenced today by United States District Judge Jane Triche Milazzo to five years in prison followed by ten years of supervised release after previously pleading guilty to a one-count Bill of Information charging her with interstate travel with intent to engage in illicit sexual conduct. OJEDA will also have to register as a sex offender.
According to the court documents, in late February 2017, OJEDA met the minor, a fifteen-year-old boy who resided in Franklinton, Louisiana, on a social networking website. From late February until early April, OJEDA and the minor engaged in sexually explicit correspondence, including simulating sexual intercourse and other sexual contact and plans to engage in sexual acts in the future, on numerous occasions. During the correspondence, OJEDA requested and received sexually explicit images and videos of the minor via a social media-based instant messaging application.
In early April, OJEDA and the minor made plans for OJEDA to travel to Louisiana to pick up the minor and return to Texas together for the purpose of engaging in sex and spending the rest of their lives together. On about April 8, 2017, OJEDA traveled by commercial bus and then by taxi from Texas to the minor’s Franklinton, Louisiana home. OJEDA and the minor then traveled back to New Orleans, where they stayed in a hotel room together and engaged in sexual intercourse. On about April 9, 2017, OJEDA and the minor travelled via commercial bus from New Orleans, Louisiana, to Houston, Texas, for the purpose of engaging in living together in a romantic relationship. OJEDA and the minor then moved to Pflugerville, Texas, where they lived together until the minor was recovered by special agents with the Federal Bureau of Investigation on May 12, 2017.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by agents from the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Jordan Ginsberg.
Ten Defendants Involved with Multi-State Identity Theft Ring Indicted for Credit Card Fraud and Money LaunderingRead the Press Release
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office; and Angel M. Melendez, Special Agent in Charge, ICE-HSI, New York Field Office, announce that a federal grand jury in the Southern District of Florida returned an indictment, on April 6, 2018, charging ten people with offenses including conspiracy to commit access device fraud (credit card fraud), trafficking in counterfeit access devices, use of one or more unauthorized access devices, possession of fifteen or more unauthorized access devices, aggravated identity theft, conspiracy to commit money laundering, and money laundering. This matter is assigned to United States District Court Judge Marcia G. Cooke (Case No. 18-CR-20269).
According to allegations in the indictment, Noe Reina De La Cruz, 27, of Doral, Florida; Raul Gil-Rodriguez, 35, of Paramus, New Jersey; Ney Antonio Lopez De La Cruz, 24, of Doral, Florida; Domingo Reyes, 40, of Doral, Florida; Yousef Michi, 34, of Brooklyn, New York; Esteban Ochoa, 34, of New York; Vantroy Sanchez, 39, of New York, New York; Jeffrey Batista, 27, of New York, New York; Carlos David Franco, 30, of Miami, Florida; and Pedro De La Cruz, 48, of Bronx, New York, used the personal identifying information of other individuals to open credit card accounts without the victims’ knowledge or consent. The conspirators used the fraudulently obtained credit cards to purchase electronics, home goods, expensive designer shoes, travel, spa services, and medical procedures for themselves and others. Some of the conspirators would also resell some of the fraudulently obtained goods, for a percentage of their face value, to Yousef Michi and Carlos David Franco, in order to obtain cash, checks, or wire transfers to Royal Elite Investments Corp., a shell company that Noe Reina De La Cruz controlled.
If convicted of the charged conduct the maximum possible sentences are as follows: conspiracy to commit access device fraud is 5 years in prison; conspiracy to commit money laundering is 20 years in prison; trafficking in counterfeit access devices is ten years in prison; use of one or more unauthorized access devices is ten years in prison; possession of fifteen or more unauthorized access devices is ten years in prison; and the aggravated identity theft charges carry a mandatory term of two years in prison, to run consecutive to the other crimes of conviction.
U.S. Attorney Greenberg commended the investigative efforts of ICE-HSI in this matter. This case is being prosecuted by Southern District of Florida Assistant U.S. Attorneys Lisa H. Miller and Nalina Sombuntham.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tartaglione Ordered to Forfeit More Than $2.4 Million from Fraud SchemeRead the Press Release
United States District Court Judge Joel H. Slomsky on Wednesday ordered Renee Tartaglione to forfeit $2.4 million in proceeds from her scheme to defraud the Juniata Community Mental Health Clinic. Tartaglione was convicted in June 2017, on all 53 counts of conspiracy, theft, fraud and tax evasion. Tartaglione siphoned some $2 million from the clinic of which she was president, and used some of that money to improve a building she owned that then appreciated in value.
“There’s a long list of victims in this case,” said U.S. Attorney William M. McSwain. “The economically disadvantaged served by the clinic deserved better. The guilty verdict, and now the Judge’s forfeiture order, bring a measure of justice for those victims.”
Judge Slomsky ordered the forfeiture to be paid from the proceeds from the sale of Tartaglione’s properties on 3rd Street and 5th Street in Philadelphia, as well as two homes at the New Jersey shore.
The case was prosecuted by Assistant U.S. Attorney Bea L. Witzleben and Department of Justice Trial Attorney Peter Halpern.
The 2016 indictment charged that Tartaglione purchased the building on 3rd Street in Philadelphia, which housed the clinic, and then raised the rent, repeatedly, causing the clinic’s rent for the building to increase from $4,500 per month to $25,000 per month.
Tartaglione’s company, Norris Hancock LLC, also purchased the building on 5th Street and, in December 2012, leased it to the clinic under a lease that called for rent of $35,000 per month for the first two years, and $75,000 per month for the next three years. The market rent for that building was $23,000 per month.
Tampa Man Pleads Guilty to Submitting False Claim for FEMA Benefits Related to Hurricane IrmaRead the Press Release
Tampa, Florida – Gregory A. Douglas, Jr. (40, Tampa) has pleaded guilty to submitting a false claim. He faces a maximum penalty of five years in federal prison. His sentencing hearing has not yet been set.
According to the plea agreement, after Hurricane Irma hit Florida in September 2017, Douglas used a false address in Tampa to apply for $1,514 in disaster assistance from the Federal Emergency Management Agency (“FEMA”). Douglas did not reside at or own a home at that address at the time of the storm. Nevertheless, in his application to FEMA, he falsely represented it to be his primary residence. Douglas also falsely represented that he had been displaced and that he had incurred expenses for temporary housing and critical needs assistance.
This case is part of the United States Attorney’s Disaster Fraud Task Force, which was announced in September 2017. The case was investigated by the U.S. Department of Homeland Security – Office of Inspector General. It is being prosecuted by Assistant United States Attorney Patrick Scruggs.
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. A live operator 24 hours a day, 7 days a week staffs the telephone line. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. You may also visit www.justice.gov/usao-mdfl.
TSA Employee Arrested and Charged with Attempted Production of Child PornographyRead the Press Release
A TSA employee appeared in federal court today to face child pornography charges.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and W. Howard Harrison, Chief Plantation Police Department, made the announcement.
Gary Linder, Jr., 27, of Ft. Lauderdale, was arrested and charged, by criminal complaint, with attempted production of child pornography and sending obscene material to a minor, in violation of, Title 18, United States Code, Sections 3351(a) and 1470. Linder had his initial appearance, today, before United States Magistrate Judge Lurana S. Snow. During the initial hearing, Linder was identified as a TSA employee. A detention hearing is scheduled in this matter for May 10, 2018, before United States Magistrate Judge Barry S. Seltzer.
According to the court docket, including the criminal complaint, in February of 2018, Linder initially began communicating with an eleven year old via text message. The phone was turned over to law enforcement, and over the course of several months Linder sent obscene material and discussed sexually explicit content with the individual he believed to be the minor child, via text message. On several occasions, Linder requested nude photos of the minor child engaged in sex acts.
Mr. Greenberg commended the investigative efforts of the FBI, including the FBI Miami Child Exploitation Task Force, and the Plantation Police Department. Mr. Greenberg also thanked the Coral Springs Police Department and Miramar Police Department for their assistance. This case is being prosecuted by Assistant U.S. Attorney Jodi L. Anton.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Stuart Man Sentenced to 57 Months for Possession of Firearm and AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Farris Dwayne Griffin, age 42, of Stuart, Oklahoma, was sentenced to 57 months imprisonment, and 3 years supervised release for Felon in Possession of Firearm and Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charges arose from an investigation by the Pittsburg County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that from on or about September 3, 2017 to on or about September 5, 2017, within the Eastern District of Oklahoma, the defendant, Farris Dwayne Griffin, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “This office is committed to working with our federal, state, local and tribal partners to protect the public from violent offenders. Enforcement of the federal laws that prohibit convicted felons from possessing firearms is one way that we are able to protect the public. I commend the diligent and cooperative work of the Pittsburg County Sheriff’s Office, the Bureau of Alcohol, Tobacco, and Firearms, and members of the United States Attorney’s Office, for their work on this case and their commitment to public safety.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Christopher Wilson represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Statement of U.S. Attorney John H. Durham on Selection of Robert M. Spector as U.S. Magistrate JudgeRead the Press Release
“Rob is an extraordinarily intelligent person and, without a doubt, one of the hardest working and most productive attorneys I’ve experienced in my 40 years as a prosecutor. His focus on prosecuting cases involving illegal drug distribution, firearm and violent crime offenses have had a significant impact in communities across our state. Most recently, through his tireless work in battling our opioid crisis, he has held numerous dealers who sold drugs that caused overdose deaths accountable, provided justice for overdose victims’ families, and spearheaded an outreach effort that has educated tens of thousands of students and adults about these horrific drugs. Our office is very sorry to lose him, but our loss is the U.S. District Court’s gain. He is a tremendous addition to the federal bench in Connecticut. I am extremely happy for him and wish him all the best.”
Click here to read the U.S. District Court press release.
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, Apr. 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.
South Dakota Man Indicted for Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a South Dakota man has been indicted by a federal grand jury for two counts of Assaulting, Resisting, and Impeding a Federal Officer.
Dayvon Sanchez, age 19, was indicted on February 14, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 12, 2018, and pled not guilty to the Indictment.
The maximum penalty for each count upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on November 19, 2017, Sanchez, physically resisted and forcibly kicked multiple Rosebud Sioux Tribe law enforcement officers.
The charges are merely accusations and Sanchez is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Sanchez was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Solano County Man Sentenced to 11 Years in Prison for Drug and Firearms OffensesRead the Press Release
SACRAMENTO, Calif. — Maurice Antoine Jefferson, 50, of Vacaville, was sentenced today by U.S. District Judge Morrison C. England Jr. to 11 years in prison for possessing marijuana for distribution near a school zone, possessing cocaine for distribution, and possessing a firearm as a felon, U.S. Attorney McGregor W. Scott announced.
According to court documents, Jefferson was the sole proprietor of the Shredders Federation clothing store in Vacaville. He allegedly used the business as a cover to distribute marijuana and cocaine to high school students and others and as a front for money laundering. When agents executed a search warrant at the store in August 2016, they found 6.4 pounds of marijuana, 129 grams of cocaine, and other indicia of drug distribution. Jefferson was carrying a 9 mm pistol with him when Vacaville Police Officers arrived at the business. Jefferson has a felony conviction and is not allowed to possess any firearms.
In January 2018, Jefferson pleaded guilty to possessing marijuana with the intent to distribute it within 1,000 feet of the Will C. Wood High School in Vacaville. During the same hearing, Jefferson also pleaded guilty to possessing cocaine for distribution and possessing a firearm as a felon.
This case was the product of an investigation by the Vacaville Police Department and the Napa Special Investigations Bureau, with assistance from the Solano County District Attorney’s Office.
Six Defendants Charged with Collectively Trafficking over Four Hundred Migratory BirdsRead the Press Release
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Luis J. Santiago, Special Agent in Charge, United States Fish and Wildlife Service (USFWS), Office of Law Enforcement, Southeast Region; Alfredo Escanio, Major/Regional Commander, Florida Fish and Wildlife Conservation Commission (FWC), Division of Law Enforcement, South B Region; Martin G. Wade, Director, Customs and Border Protection (CBP) Air and Marine Operations, Miami Air and Marine Branch; Pedro Ramos, Superintendent, Everglades and Dry Tortugas National Parks (NPS); and Antonio J. Gomez, Postal Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, announce the filing of federal charges against 6 defendants in 6 separate cases for their involvement with the trafficking of over 400 migratory birds.
In 1918, Congress enacted the Migratory Bird Treaty Act (MBTA) for the protection of migratory birds. Now in its 100th year, the MBTA prohibits, inter alia, the pursuit, hunting, taking, capture, killing, possession, sale, barter, purchase, shipping, exportation, and importation of migratory birds. Migratory birds are listed at Title 50, Code of Federal Regulation, Section 10.13.
Working independently and separately from each other, these six charged defendants used sophisticated methods to traffic protected wildlife, specifically migratory birds. The methods included bird traps augmented by electronic birdcall broadcast systems powered with solar panels and rechargeable batteries; baited bird traps spread throughout the region as collection points; the erection of mist nets at one end of a field during migration season and the operation of a truck from the other end of the field to flush hundreds of migratory birds into the mist nets; the strategic deployment of specially formulated adhesives to glue migratory birds to tree limbs and sticks; and the hunting of migratory birds, in particular the illegal hunting of raptors with rifles. They also used traditional smuggling techniques to unlawfully transport the captured wildlife. These techniques included the shipment of migratory birds to buyers across the country in boxes with hidden compartments; the use of a false name and address on airmail shipments; false statements on customs declarations; and the concealment of the protected wildlife in hair curlers taped to a defendant’s body, beneath baggy pants.
In some instances, the wildlife trafficking in these cases involved severe animal cruelty and resulted in injury to the birds. Some of the trafficked birds showed signs of having sustained injuries while attempting to flee captivity. Some of the birds, specifically some of the hawks, were actually dead at the time of sale and other birds died shortly after purchase. One defendant left the captured birds entangled in netting, where they were preyed upon by wild dogs and cats. Another defendant maimed some of the migratory birds by ripping out their tail feathers. A third defendant, believing that a Loggerhead Shrike (Lanius ludovicianus) was a threat to his inventory of migratory birds for sale, threw the animal against a wall and affixed it to a wooden cross. The defendant filmed this activity and uploaded the images onto a private internet chat group that he used to advertise migratory birds for sale.
In the course of these investigations, undercover USFWS and FWC agents purchased and/or seized migratory birds from all six of these defendants. After a determination that the release of the seized wildlife is safe and appropriate, USFWS will return hundreds of these birds into the wild.
“The U.S. Attorney’s Office stands alongside our law enforcement and community partners as we strive to protect our natural resources and wildlife, including the diverse migratory bird population, that make South Florida such a vibrant environmental sanctuary,” stated U.S. Attorney Benjamin G. Greenberg. “Today’s announcement reinforces our continued commitment to the federal prosecution of individuals who pose a threat to our nation’s wildlife, in particular our protected bird species.”
"The 100th anniversary of the Migratory Birds Treaty Act is a good time to remind Americans of the benefits we all enjoy from a land that is rich in birds and all wildlife,” said Special Agent in Charge Luis Santiago, USFWS Southeast Region’s Office of Law Enforcement. “Our work enforcing this law and others recognizes the value Americans place on wildlife, and it is important to make sure that future generations can enjoy these as well.”
“We are honored to have been a part of these important enforcement efforts,” stated Major Alfredo Escanio, FWC Regional Commander. “We want to get the word out that these birds are protected, and ask the public to let us know if they see anyone trying to trap or sell these birds.”
“As fellow aviators, we at CBP Air and Marine Operations (AMO) were particularly excited to participate in this case, to help set these ‘ornery’ birds free to fly again. AMO uses its specialized capabilities to serve and protect the American people. That includes working with our partners to enforce hundreds of U.S. laws, including the 1918 Migratory Bird Treaty Act,” said Jeff Maher, Deputy Director, CBP Air Operations at the Miami Air and Marine Branch.
"The American people are investing billions of dollars to restore the Everglades and this kind of illegal poaching activity cannot be tolerated,” stated NPS Superintendent Pedro Ramos. “I am grateful to all of our partner agencies, the investigators, and the Department of Justice professionals who have worked on these important cases. Through their hard work, not only are we able to protect important species of birds, but also protect the investments being made in Everglades restoration ultimately for the benefit of future generations."
“As shown through this announcement, violations of the Migratory Bird Treaty threaten the livelihood of innocent animals,” said Antonio J. Gomez, Inspector in Charge, USPIS Miami Division. “This case demonstrates that the U.S. Postal Inspection Service will continue to work tirelessly with our partners to enforce all federal laws that are in place to protect U.S. residents and wildlife. We are proud that our collaborative efforts were successful in bringing justice to the animals horrifically harmed and removed from their natural habitats.”
Today’s announcement reaffirms the collective commitment of federal, state and local authorities to the prosecution of wildlife traffickers. The cases brought under this operation include:
- United States v. Juan Carlos Rodriguez, a/k/a “El Doctor,”
Case No. 18-CR-20141-MOORE
On March 1, 2018, Juan Carlos Rodriguez, 54, of Homestead, was charged in an eighteen-count indictment with selling, offering for sale, bartering, and offering to barter migratory birds.
According to the indictment, between May 2014 and November 2016, Rodriguez trafficked in migratory birds, including Puerto Rican Spindalises (Spindalis portoricensis), Northern Cardinals (Cardinalis cardinalis), Puerto Rican Bullfinches (Loxigilla portoricensis), Yellow-faced Grassquits (Tiaris olivaceus), Blue Grosbeaks (Passerina caerulea), Indigo Buntings (Passerina cyanea), Cooper’s Hawks (Accipiter cooperii), Bobolinks (Dolichonyx oryzivorus), Red-shouldered Hawks (Buteo lineatus), Gray Catbirds (Dumetella carolinensis), Painted Buntings (Passerina ciris), Summer Tanagers (Piranga rubra), Screech-Owls (genus Megascops), and Sharp-shinned Hawks (Accipiter striatus).
Mr. Greenberg commended the investigative efforts of the USFWS, FWC, CBP, CBP Air and Marine Operations and USPIS in this matter. This case is being prosecuted by Assistant U.S. Attorney Jaime Raich.
- United States v. Miguel Loureiro, Case No. 18-CR-20164-MARTINEZ
On March 8, 2018, Miguel Loureiro, 27, of Homestead, was charged in a thirty-six-count indictment for participating in a conspiracy to take migratory birds for commercial purposes, selling and offering migratory birds for sale, and taking migratory birds.
According to the allegations contained in the indictment, beginning in January 2016 and ending in December 2017, Loureiro and a co-conspirator trafficked in migratory birds, including Indigo Buntings (Passerina cyanea), Blue Grosbeaks (Passerina caerulea), Rose-breasted Grosbeaks (Pheucticus ludovicianus), Painted Buntings (Passerina ciris), White-crowned Sparrows (Zonotrichia leucophrys), Clay-colored Sparrows (Spizella palida), and Grasshopper Sparrows (Ammodramus savannarum).Mr. Greenberg commended the investigative efforts of the USFWS, FWC, and NPS. This case is being prosecuted by Assistant U.S. Attorney Jaime Raich.
- United States v. Hovary Muniz, Case No. 18-MJ-2496-SIMONTON
On April 3, 2018, Hovary Muniz, 42, of Miami, was charged by criminal complaint with knowingly selling and offering migratory birds for sale.
According to the criminal complaint, Muniz pled guilty in 2016 to smuggling migratory birds from Cuba into the United States in a fanny pack. In 2017 and 2018, while on probation for the wildlife trafficking offense, Muniz offered Yellow-faced Grassquits (Tiaris olivacea), a Lazuli Bunting (Passerina amoena), and other migratory birds for sale.
Mr. Greenberg commended the investigative efforts of the USFWS and CBP in this matter. This case is being prosecuted by Assistant U.S. Attorneys Jaime Raich and Tom Watts-FitzGerald.
- United States v. Corbo Martinez, Case No. 17-CR-20596-WILLIAMS
On August 24, 2017, Alberto Iran Corbo Martinez, 38, of Hialeah, was charged in a three-count indictment with smuggling goods into the United States and using a false document.
According to the indictment, Corbo Martinez imported Cuban Bullfinches (Melopyrrha nigra) and a Yellow-faced Grassquit (Tiaris olivaceous) from Cuba. He concealed those importations by hiding the birds in hair curlers taped to his legs, beneath baggy pants, and by making false declarations on customs forms.
Mr. Greenberg commends the investigative efforts of the USFWS and CBP in this matter. This case is being prosecuted by Assistant U.S. Attorney Tom Watts-FitzGerald.
- United States v. Reynaldo Mederos, Case No. 18-CR-20140-LENARD
On March 1, 2018, Reynaldo Mederos, 28, of Miami, was charged in a seven-count indictment with selling and offering to sell migratory birds.
According to the indictment and publicly available documents, beginning in July 2016 and ending in November 16, 2017, Mederos trafficked in migratory birds, including Indigo Buntings (Passerina cyanea), Painted Buntings (Passerina ciris), and Blue Grosbeaks (Passerina caerulea).
Mr. Greenberg commended the investigative efforts of the USFWS in this matter. This case is being prosecuted by Assistant U.S. Attorney Jaime Raich.
- United States v. Carlos Hernandez, Case No. 17-CR-20759-MARTINEZ
On October 26, 2017, Carlos Hernandez, 34, of Miami, was charged in a six-count indictment with trapping, selling, and offering to sell migratory birds.
According to the indictment and publicly available documents, beginning in January 2016 and ending in April 2017, Hernandez trapped and trafficked in migratory birds, including Blue Grosbeaks (Passerina caerulea).
Mr. Greenberg commended the investigative efforts of the USFWS and FWC in this matter. This case is being prosecuted by Assistant U.S. Attorney Jaime Raich.
If convicted of the charged conduct, the defendants each face a possible maximum statutory sentence of 5 years in prison for the conspiracy charges and 2 years in prison for trafficking in migratory birds, in violation of the Migratory Bird Treaty Act.
An indictment or a criminal complaint is an accusatory instrument that contains formal charges against a defendant. All persons charged in an indictment or criminal complaint are presumed innocent, unless and until proven guilty in a court of law.
The public is encouraged to report any instances of illegal wildlife trapping and trafficking to the Florida Fish and Wildlife Conservation Commission (FWC) at 888-404-3922 or by email or text to [email protected].
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
- United States v. Juan Carlos Rodriguez, a/k/a “El Doctor,”
Silver Spring Man Sentenced to 20 Years in Prison for Distribution of Child PornographyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge Paula Xinis sentenced Kevin Heiting, age 30, of Silver Spring, Maryland today to 20 years in prison, followed by a lifetime of supervised release, for distribution of child pornography and other admitted conduct detailed in his plea agreement.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
This case began as a lead to HSI from the Swiss Cybercrime Coordination Unit of the Swiss Federal Police regarding an individual distributing child pornography using a Virtual Private Network based in Switzerland.
On May 19, 2016, based in part on the Swiss investigative lead, a federal search warrant was executed at Heiting’s residence in Silver Spring, Maryland, and law enforcement seized five hard drives, two laptop computers, a tower computer, and a cellular telephone. A forensic analysis of just one of the seized hard drives revealed more than 17,913 video files and 405,071 image files, many of which depicted children, including infants and toddlers, engaged in sexually explicit conduct. A file-sharing program found on Heiting’s computer revealed that Heiting shared over 100,000 files between June 8, 2014 and January 6, 2015. The analysis revealed that thousands of users connected to one of Heiting’s laptop computers and downloaded files. The analysis further showed that Heiting both received and distributed child pornography using the laptop computer.
The same afternoon that the search warrant was executed, Heiting purchased a new laptop computer. On August 4, 2016, Heiting traveled from Maryland to Central America with the laptop, which Heiting was using to run a file sharing program and to conduct online chats with minors. On Heiting’s return from Central America, the laptop was detained by officers from U.S. Customs and Border Protection and subsequently forensically examined. The analysis revealed that in addition to sharing and downloading child pornography, Heiting was communicating with a 14-year-old boy over the “dark web” using an encrypted web chat application. Enticed and persuaded by Heiting, the victim sent Heiting images of himself engaged in sexually explicit conduct.
On August 29, 2016, Heiting was indicted on federal child pornography charges and placed on pretrial release, with conditions which forbade Heiting from possessing Internet capable devices. On February 1, 2017, law enforcement agents executed a search warrant at Heiting’s residence and recovered a laptop computer, two 5TB hard drives, and three USB thumb drives that had been hidden by Heiting in an air purifier cabinet. An initial forensic review of the laptop revealed that it contained a file-sharing program and the encrypted “dark web” application that Heiting had previously used. The laptop computer had last been accessed the very morning the search warrant was executed.
Heiting will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
A hearing will be held in July 2018 to determine the amount of restitution to be paid to child pornography victims.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Robert K. Hur commended HSI Baltimore, the Montgomery County Police Department, the Maryland State Police Internet Crimes Against Children Task Force, and U.S. Customs and Border Protection – Atlanta for their work in the investigation, and the Swiss Federal Police for their assistance. Mr. Hur thanked Assistant U.S. Attorney Joseph R. Baldwin and Special Assistant U.S. Attorney Julie Finocchiaro, who prosecuted the case.
Shreveport man sentenced to 30 months in prison for illegally possessing a revolverRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that a Shreveport felon was sentenced Tuesday to 30 months in prison for possessing a revolver.
Christopher Deshun Owens, 28, of Shreveport, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of possession of a firearm by a convicted felon. He was also sentenced to three years of supervised release. According to the December 13, 2017 guilty plea, Shreveport 911 operators received a call on August 10, 2017 from Owens’ ex-girlfriend. They heard the ex-girlfriend and Owens arguing about a firearm. Owens had entered the ex-girlfriend’s home with a firearm. Police later arrived and detained Owens. A Charter 2000, Shelton, Conn., Model: Undercover, Caliber .38 SPL revolver was recovered from a child’s dresser drawer in the house. Owens initially denied carrying the gun but later admitted to it. Owens was previously convicted in Bossier Parish for possession of marijuana, second offense.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safe for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Tiffany E. Fields prosecuted the case.
Seminole Man Sentenced to 77 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Rodney Phillip Aird, age 50, of Seminole, Oklahoma, was sentenced to 77 months imprisonment, and 4 years supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B). The charges arose from an investigation by the Seminole Nation Tribal Police and the Drug Enforcement Administration.
The Indictment alleged that on or about August 13, 2017, within the Eastern District of Oklahoma, the defendant, Rodney Phillip Aird, did knowingly and intentionally possess with the intent to distribute 5 grams or more of methamphetamine (actual), a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “No one can deny the horrendous impact that methamphetamine has had on our communities. Those people who distribute it must be stopped and held accountable for their unlawful actions. I commend the members of the Seminole Nation Tribal Police, DEA and United States Attorney’s Office for their diligent work and cooperative efforts to combat the sale of dangerous drugs.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney John David Luton represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Seligman Man Sentenced for MethRead the Press Release
SPRINGFIELD, Mo. – A Seligman, Mo., man has been sentenced in federal court for possessing methamphetamine to distribute following a high-speed pursuit by law enforcement officers that ended at a chicken farm.
Jeffery B. Stout, 37, of Seligman, was sentenced by U.S. District Judge Stephen R. Bough on Tuesday, April 10, 2018, to seven years in federal prison without parole.
On Dec. 13, 2017, Stout pleaded guilty to possession of methamphetamine with the intent to distribute.
Stout was arrested on July 7, 2016, following a high-speed pursuit by law enforcement officers. A Barry County sheriff’s deputy attempted to stop Stout, who had been reported driving a red Camaro on the wrong side of the road, after the vehicle’s license plates did not match. Stout led officers on a chase with speeds up to 102 miles per hour. Stout eventually stopped after he entered a chicken farm, drove into a field, lost control, and spun out the wheels. As the wheels were spinning, officers blocked Stout from pulling forward and pulled Stout and a passenger out of the vehicle.
Officers searched the vehicle and found a Jack Daniels tin can that contained 24.6 grams of pure methamphetamine, seven baggies that contained methamphetamine, four baggies that contained methamphetamine residue, more than $1,000 in cash, various drug paraphernalia and a sparkler bomb device.
Stout has committed seven drug offenses since 2002. Those convictions started with a municipal conviction with a suspended sentence in 2002. He then went to prison for drugs in 2008 in Arkansas. In 2013, he was convicted again for drugs in Missouri, where he was put in a drug court program. His probation was then revoked concurrent to a new drug conviction in 2014 and he was sent to the 120-day treatment program in the Missouri Department of Corrections. He was discharged from probation on April 13, 2016, less than three months before the events of this case.
Stout also has a prior conviction for aggravated assault on a family member, where he pointed a shotgun at his live-in girlfriend during an argument and threatened her. He has eight prior convictions for driving without a valid license, along with prior convictions for failure to appear in court, trespassing, leaving the scene of an accident, criminal contempt and resisting arrest.
This case was prosecuted by Special Assistant U.S. Attorney Jody Larison. It was investigated by the Barry County, Mo., Sheriff’s Department, the Missouri State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Seattle Area Man Sentenced to 33 Years in Prison for Sex Trafficking Teens and Young WomenRead the Press Release
David D. Delay, 52, of Lynnwood, Washington, was sentenced today in a U.S. District Court in Seattle to 33 years in prison for his predatory and exploitive scheme to recruit young women and teens to prostitution for his own enrichment, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Annette L. Hayes of the Western District of Washington, and Special Agent in Charge Jay S. Tabb, Jr. of the FBI’s Seattle Field Office. Delay was also ordered to pay $76,700 in restitution to his victims, plus additional costs for counseling and medical care. Following prison Delay must register as a sex offender and will be on supervised release for the rest of his life. Because Delay has continued to harass his victims on social media, the judge requested the prison system and U.S. Probation limit his access to social media and computers. At today’s sentencing hearing U.S. District Judge Robert S. Lasnik said “He deserves a long sentence and a sentence that sends a message to the community that these crimes will not be tolerated.”
At the conclusion of a ten-day trial, the jury convicted the defendant on Nov. 6, 2017, of 17 federal felonies, including one count of conspiracy to engage in sex trafficking by force, fraud, and coercion; three counts of sex trafficking; three counts of attempted sex trafficking; one count of conspiracy to transport individuals for purposes of prostitution; six counts of transporting individuals for purposes of prostitution; two counts of production of child pornography; and one count of obstruction of justice.
According to evidence presented in court, including the testimony of seven victims, the defendant targeted vulnerable teenagers and young women in their early 20s by claiming to be a famous film producer with a multi-million dollar contract from HBO to produce a documentary on prostitution. Delay enticed his victims, several of whom he convinced to travel across the country to be with him, into working for him as prostitutes by falsely claiming that they would make up to $20 million by participating in his documentary. In order to convince the victims that his assertions were true, Delay sent them falsified bank account screenshots supposedly depicting the profits of his other films, a photograph of himself outside of an HBO office, and seemingly official, binding contracts that he asked them to sign that obligated them to pay him over a thousand dollars per week in prostitution proceeds. Delay falsely promised some of his victims that he was negotiating for them to star in a reality television show produced by Ryan Seacrest. Representatives from HBO and Ryan Seacrest Productions testified that the companies did not have any business dealings with Delay.
Once the victims arrived in Seattle, the defendant coerced them into prostituting themselves for his profit. He manipulated them emotionally, psychologically, and sexually; isolated them; made them completely dependent on him; and in some instances threatened legal action against them, falsely claiming that the victims had violated their contracts and were subject to civil penalties. In furtherance of his sex trafficking scheme, the defendant also enticed two minor victims to produce graphic pornographic photographs and videos for him, and in two instances threatened to release sexually explicit video images of his victims unless they complied with his demands.
“Delay used fraud and fear against vulnerable young women and girls to coerce them into commercial sex, turning them into sexual commodities for his own profit,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Department of Justice will continue to vigorously pursue sex traffickers and today’s sentence is an example of our ongoing efforts to hold traffickers accountable for their horrific crimes and vindicate the rights of their victims.”
“The long prison sentence imposed in this case is just punishment for the devastating impact this defendant had on his victims,” said U.S. Attorney Hayes. “As they bravely testified in court, the defendant’s conduct left his victims with deep and lasting emotional scars. There simply is no place in civilized society for the kind of sexual exploitation that this defendant engaged in without so much as a second thought.”
“The FBI remains committed to working with federal, state and local partners to combat such egregious criminal activities " said Special Agent in Charge Jay Tabb, of the FBI’s Seattle Field Office. “In this case, the FBI worked closely with the Redmond Police Department and the US Attorney’s Office to get survivors the help they need, and traffickers the justice they deserve. Given the complexity of Mr. Delay’s criminal schemes, our team included multiple experts all working as part of the Child Exploitation Task Force, a unit which continues to identify other victims and predators so we can disrupt cycles of abuse. ”
“We are proud of the excellent work done by the Redmond Police in partnership with the FBI,” said Redmond Police Chief K. Wilson. “Our close working relationship with our law enforcement partners through the FBI taskforce, allowed us to bring the needed resources to bear to ensure the defendant was arrested and convicted of his crimes.”
Co-defendant Marysa Comer, 23, of Matthews, North Carolina, previously pleaded guilty on Nov. 16, 2015, to one count of conspiracy to commit sex trafficking for her role in Delay’s scheme. She was sentenced to 36 months in prison on Dec. 1, 2017.
The case was investigated by the FBI’s Seattle Field Office and the Redmond Police Department, along with assistance from the FBI’s Chicago Field Office, the King County Sheriff’s Office, the King County Prosecuting Attorney's Office, the Beaverton, Oregon Police Department, and the Bureau of Prisons. The case was prosecuted by Assistant U.S. Attorney Kate Crisham and Trial Attorney Matthew Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Seattle Area Man Sentenced to 33 Years in Prison for Sex Trafficking Teens and Young WomenRead the Press Release
A 52-year old Lynnwood, Washington man was sentenced today in U.S. District Court in Seattle to 33 years in prison for his predatory and exploitive scheme to recruit young women and teens to prostitution for his own enrichment, announced U.S. Attorney Annette L. Hayes. DAVID D. DELAY was convicted of 17 federal felonies following a ten-day jury trial in November 2017. At today’s sentencing hearing U.S. District Judge Robert S. Lasnik said “He deserves a long sentence and a sentence that sends a message to the community that these crimes will not be tolerated.”
“The long prison sentence imposed in this case is just punishment for the devastating impact this defendant had on his victims,” said U.S. Attorney Hayes “As they bravely testified in court, the defendant’s conduct left his victims with deep and lasting emotional scars. There simply is no place in civilized society for the kind of sexual exploitation that this defendant engaged in without so much as a second thought.”
“Delay used fraud and fear against vulnerable young women and girls to coerce them into commercial sex, turning them into sexual commodities for his own profit,” said Acting Attorney General John Gore of the Civil Rights Division. “The Department of Justice will continue to vigorously pursue sex traffickers and today’s sentence is an example of our ongoing efforts to hold traffickers accountable for their horrific crimes and vindicate the rights of their victims.”
According to evidence presented in court, including the testimony of seven victims, the defendant targeted vulnerable teenagers and young women in their early 20s by claiming to be a famous film producer with a multi-million dollar contract from HBO to produce a documentary on prostitution. Delay enticed his victims, several of whom he convinced to travel across the country to be with him, into working for him as prostitutes by falsely claiming that they would make up to $20 million by participating in his documentary. In order to convince the victims that his assertions were true, DELAY sent them falsified bank account screenshots supposedly depicting the profits of his other films, a photograph of himself outside of an HBO office, and seemingly official, binding contracts that he asked them to sign that obligated them to pay him over a thousand dollars per week in prostitution proceeds. DELAY falsely promised some of his victims that he was negotiating for them to star in a reality television show produced by Ryan Seacrest. Representatives from HBO and Ryan Seacrest Productions testified that the companies did not have any business dealings with DELAY.
Once the victims arrived in Seattle, the defendant coerced them into prostituting themselves for his profit. He manipulated them emotionally, psychologically, and sexually; isolated them; made them completely dependent on him; and in some instances threatened legal action against them, falsely claiming that the victims had violated their contracts and were subject to civil penalties. In furtherance of his sex trafficking scheme, the defendant also enticed two minor victims to produce graphic pornographic photographs and videos for him, and in two instances threatened to release sexually explicit video images of his victims unless they complied with his demands.
“The FBI remains committed to working with federal, state and local partners to combat such egregious criminal activities " said Special Agent in Charge Jay Tabb, of the FBI’s Seattle Field Office. “In this case, the FBI worked closely with the Redmond Police Department and the US Attorney’s Office to get survivors the help they need, and traffickers the justice they deserve. Given the complexity of Mr. Delay’s criminal schemes, our team included multiple experts all working as part of the Child Exploitation Task Force, a unit which continues to identify other victims and predators so we can disrupt cycles of abuse. ”
“We are proud of the excellent work done by the Redmond Police in partnership with the FBI. Our close working relationship with our law enforcement partners allowed us to bring the needed resources to bear to ensure the defendant was arrested and convicted of his crimes,” said Redmond Police Chief K. Wilson.
Judge Lasnik ordered DELAY to pay $76,700 in restitution to his victims, plus additional costs for counseling and medical care. Following prison DELAY must register as a sex offender and will be on supervised release for the rest of his life. Because DELAY has continued to harass his victims on social media, the judge requested the prison system and U.S. Probation limit his access to social media and computers.
Co-defendant Marysa Comer, 23, of Matthews, North Carolina, previously pleaded guilty on November 16, 2015, to one count of conspiracy to commit sex trafficking for her role in Delay’s scheme. She was sentenced to 36 months in prison on December 1, 2017.
The case was investigated by the FBI’s Seattle Field Office and the Redmond Police Department, along with assistance from the FBI’s Chicago Field Office, the King County Sheriff’s Office, the King County Prosecuting Attorney's Office, the Beaverton, Oregon Police Department, and the Bureau of Prisons. The case was prosecuted by Assistant U.S. Attorney Kate Crisham and Trial Attorney Matthew Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Sacramento Man Charged with Firearm Offenses and Possession of MethamphetamineRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against John Allan Trotter, 36, of Sacramento, charging him with possession of a firearm in furtherance of a drug trafficking offense and possession with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, on February 8, 2018, Trotter was arrested after leading Sacramento County Sheriff’s detectives on a high-speed chase. Trotter crashed his car and ran from law enforcement officers before being apprehended. Trotter had a loaded gun, methamphetamine, and scale in his car at the time of the crash.
This case is the product of an investigation by the Sacramento County Sheriff’s Department, Sacramento County District Attorney’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Justin Lee is prosecuting the case.
If convicted of possession of a firearm in furtherance of a drug trafficking offense, Trotter faces a mandatory minimum statutory penalty of five years in prison and up to life in prison and a $250,000 fine. If convicted of possession with intent to distribute methamphetamine, he faces a penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
Rotech Agrees to Pay $9.68 Million to Settle False Claims Act Liability Related to Improper Billing for Portable OxygenRead the Press Release
The Justice Department announced today that Rotech Healthcare Inc., a Florida-based respiratory equipment supplier, has agreed to pay $9.68 million for knowingly submitting false claims for portable oxygen contents to Medicare. As part of the settlement, Rotech admitted that it knowingly billed portable oxygen contents to Medicare for beneficiaries who did not use or require them. The Company further admitted to billing Medicare regardless of whether such contents were delivered.
“This settlement serves as a warning to suppliers who bill first and ask questions later,” said Acting Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division. “We will investigate and take action against companies who cut corners and place profits over compliance with Medicare’s billing requirements.”
Medicare covers rentals of portable and stationary oxygen equipment for up to 36 months and allows suppliers to bill monthly for oxygen to be used with that equipment for up to 24 additional months after the rental period. Between January 2009 and March 2012, Rotech automatically billed Medicare for portable oxygen contents for all Medicare beneficiaries after the 36-month rental period, without verifying that the beneficiaries used or needed portable oxygen, and without obtaining the requisite proof of delivery. Rotech continued this practice despite knowing that it resulted in the submission of claims for portable oxygen contents that were ineligible for reimbursement.
“Many people believe that healthcare fraud is a victimless crime; I assure you it is not,” said United States Attorney Joseph D. Brown of the Eastern District of Texas. “Medicare is funded largely by you and me, the American taxpayers, and fraud contributes to runaway health care costs. I commend the whistleblower who had the courage to come forward and who worked with investigators to get to the bottom of this case. Because of her, we were able to recoup millions of dollars improperly paid to Rotech.”
The allegations resolved by this settlement arose from a whistleblower lawsuit filed under the False Claims Act by Janet Hale, a former employee in Rotech’s billing department. Under the False Claims Act, private citizens can sue on behalf of the government and share in any recovery. Ms. Hale will receive $1,645,600.
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the United States Attorney’s Office for the Eastern District of Texas, the Federal Bureau of Investigation, the Department of Health and Human Services Office of Inspector General, and the Texas Office of the Attorney General – Medicaid Fraud Control Unit.
The case is captioned United States ex rel. Hale v. Rotech Healthcare Inc., 4:14-cv-545 (E.D. Tex.).
Rocklin Man Sentenced for Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Aleksandr Kovalev, 54, of Rocklin, was sentenced today by U.S. District Judge Morrison C. England Jr. to three years and 10 months in prison for wire fraud involving financial institutions, U.S. Attorney McGregor W. Scott announced.
According to court documents, Kovalev was in the business of developing, building and selling real property in Sacramento, Fairfield, and Stockton. As the real estate market began to weaken, Kovalev offered to make incentive payments to purchasers, through “down payment assistance” or by making other payments to the buyers to be used in whatever manner the buyers wanted. Most of the payments to the buyers were out of escrow and were often paid through intermediaries, originating in Kovalev’s bank account. These payments were not disclosed to the lenders, and had the effect of substantially reducing the sales price below what was represented to the lenders.
Dozens of properties were involved in Kovalev’s mortgage fraud scheme, with several million dollars of losses to the lenders. Kovalev is the last to be sentenced out of nine individuals who were prosecuted as part of this mortgage fraud scheme.
This case was the product of an investigation by the Federal Bureau of Investigation and the IRS Criminal Investigation. Assistant U.S. Attorney Todd A. Pickles prosecuted the case.
Rochester Man Pleads Guilty to Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy Jr. announced today that Michael Krepp, 57, of Rochester, NY, pleaded guilty to possession of child pornography before U.S. District Judge Charles J. Sirgusa. The charge carries a mandatory minimum penalty of 120 months in prison and a maximum penalty of 240 months.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that between September 9, 2017, and January 22, 2018, an FBI Special Agent, working undercover, discovered multiple files containing videos and images of child pornography. Some of the videos and images depicted prepubescent children in sexual situations. Investigators determined that the IP address connected to the files resolved to one utilized by the defendant. Digital media recovered from Krepp in February 2018 contained child pornography.
The defendant was previously convicted of Rape 3rd in State Court and is a registered sex offender.
The plea is the result of an investigation by the Federal Bureau of Investigation, Buffalo Division, under the direction of Acting Special Agent-in-Charge Kevin P. Lyons.
Sentencing is scheduled for July 12, 2018 before Judge Siragusa.
River Ridge Man Charged with Stealing over $1,000,000 from EmployerRead the Press Release
U.S. Attorney Duane A. Evans announced that DON MANUEL ZEMO, JR., age 55, a resident of River Ridge, Louisiana, was charged yesterday in a one-count bill of information with conspiracy to commit mail fraud, in violation of 18 U.S.C. ' 371, for his role in stealing over $1,000,000 from his employer, a privately owned and operated company that provided portside services as a terminal operator and stevedore at the Port of New Orleans.
According to the bill of information, ZEMO was hired in 1999. Between 2003 and 2015, he served as the General Manager of Port Operations. In that capacity, ZEMO oversaw and managed Company A’s day-to-day operations at Company A’s terminal at the Port of New Orleans, including handling all financial documentation, personnel decisions, job scheduling, implementing of Company A’s policies at Company A’s Port of New Orleans terminal, and facilitating the billing of Company A’s customers.
In about August 2009, R.Z. formed U.S. Gulf Trade, Inc., and until July 2015, ZEMO diverted approximately $1,033,639.54 over the course of eighty (80) transactions from Company A to himself and U.S. Gulf Trade. ZEMO did so by representing to Company A’s customers that USGT, and not Company A, had provided certain services and material to the customer when, in fact, Company A’s equipment, employees, and material was used to provide the services and directing customers to transmit payments to USGT, not Company A, for the services rendered and material provided, without Company A’s knowledge or authorization..
If convicted, ZEMO faces a maximum term of imprisonment of five years, a fine of up to $250,000.00, three years supervised release after imprisonment, and a mandatory $100 special assessment.
U. S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Internal Revenue Service – Criminal Investigations. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Registered Sex Offender Heads to Prison…AgainRead the Press Release
HOUSTON – A 45-year-old Porter man has again been sent to prison, this time for three federal charges to include distribution, receipt and possession of child pornography, announced U.S. Attorney Ryan K. Patrick. Eric Furzland is a sex offender who has been required to register since his conviction for indecency with a child in 1997 in Harris County. He pleaded guilty Oct. 12, 2017.
Today, U.S. District Judge Alfred H. Bennett sentenced Furzland to a total of 288 months in federal prison. He will also serve 20 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Furzland will also again be ordered to register as a sex offender.
Authorities believed Furzland was uploading and storing child pornography into a virtual storage account. He had been using a variety of online applications to chat with others about child pornography and trade materials. He later posted such materials to a cloud storage service and made the link to his account available to at least one other person.
Law enforcement executed a search warrant at his residence, at which time they seized computer media and cellular phones. Forensic analysis of the phone, computer media and virtual storage accounts revealed 300 child pornography images and 2000 child pornography videos.
At a detention hearing held shortly after his arrest in April 2017, Furzland was found to be a flight risk and danger to the community. He has been in custody since that time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorney Sherri Zack is prosecuting the case which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Rotech Agrees to Pay $9.68 Million to Settle False Claims Act Liability Related to Improper Billing for Portable OxygenRead the Press Release
WASHINGTON – The Justice Department announced today that Rotech Healthcare Inc., a Florida-based respiratory equipment supplier, has agreed to pay $9.68 million for knowingly submitting false claims for portable oxygen contents to Medicare. As part of the settlement, Rotech admitted that it knowingly billed portable oxygen contents to Medicare for beneficiaries who did not use or require them. The Company further admitted to billing Medicare regardless of whether such contents were delivered.
“This settlement serves as a warning to suppliers who bill first and ask questions later,” said Acting Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division. “We will investigate and take action against companies who cut corners and place profits over compliance with Medicare’s billing requirements.”
Medicare covers rentals of portable and stationary oxygen equipment for up to 36 months and allows suppliers to bill monthly for oxygen to be used with that equipment for up to 24 additional months after the rental period. Between January 2009 and March 2012, Rotech automatically billed Medicare for portable oxygen contents for all Medicare beneficiaries after the 36-month rental period, without verifying that the beneficiaries used or needed portable oxygen, and without obtaining the requisite proof of delivery. Rotech continued this practice despite knowing that it resulted in the submission of claims for portable oxygen contents that were ineligible for reimbursement.
“Many people believe that healthcare fraud is a victimless crime; I assure you it is not,” said United States Attorney Joseph D. Brown of the Eastern District of Texas. “Medicare is funded largely by you and me, the American taxpayers, and fraud contributes to runaway health care costs. I commend the whistleblower who had the courage to come forward and who worked with investigators to get to the bottom of this case. Because of her, we were able to recoup millions of dollars improperly paid to Rotech.”
The allegations resolved by this settlement arose from a whistleblower lawsuit filed under the False Claims Act by Janet Hale, a former employee in Rotech’s billing department. Under the False Claims Act, private citizens can sue on behalf of the government and share in any recovery. Ms. Hale will receive $1,645,600.
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the United States Attorney’s Office for the Eastern District of Texas, the Federal Bureau of Investigation, the Department of Health and Human Services Office of Inspector General, and the Texas Office of the Attorney General – Medicaid Fraud Control Unit.
The case is captioned United States ex rel. Hale v. Rotech Healthcare Inc., 4:14-cv-545 (E.D. Tex.).
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Principal Deputy Assistant Attorney General Andrew Finch Delivers Introductory Remarks at the 2018 Antitrust Writing Award CeremonyRead the Press Release
Thank you for inviting me here this evening. I am delighted to be part of the celebration of the talented nominees and winning authors that have contributed to our understanding of antitrust law. It’s also wonderful to look out and see so many friends and familiar faces. This is a great way to kick off the week of the Spring meeting.
I am going to start with an apology of sorts: I’m not going to announce any new Antitrust Division policies or enforcement actions. And I’m not going to dive into the hot antitrust topics of the day, such as “so-called” big data or standards-essential patents. I hope that’s not a disappointment, but I think you’ll hear more than enough of that over the next several days. Instead, I would like to say a few words about good writing and its role in antitrust law.
Many have observed that words are the raw material and tools of the legal profession. Indeed, all that we do as lawyers is work with words: The words of ordinary people—the things they say and emails they write—that can become evidence; the words in contracts and disclosures; the words of witnesses in depositions and at trial; the words in lawyers’ memos, briefs and oral arguments; the words in law review articles by learned academics; the words of the judges in their decisions and orders (including some of the best words, such as “affirmed” or “reversed,” depending on your case or client); and, not least, the words enacted by Congress.
From the perspective of the legal advocate, words are only the beginning. The words must be strung together in sentences and paragraphs in order to persuade. That brings us to the importance of good writing, which is what we are here to celebrate this evening.
Lawyers worth their salt must be able to write clearly and effectively, but I’d suggest that strong writing is especially important in the domain of antitrust law. I think there are two reasons for that.
First, antitrust law is a common-law field. That presents opportunities for persuasive lawyers and judges to make their case for the proper interpretation or application of a short statutory phrase like “restraint of trade” or “substantially to lessen competition” in light of experience and logic.
Second, modern antitrust law relies heavily on economics. The ability to explain complex and technical economics concepts with clarity and precision has become one of the most important skills in our corner of the legal profession. In that regard I should note that, as the legal profession becomes more and more specialized, effective legal advocacy requires writers to resist an over-reliance on jargon. Indeed, antitrust lawyers can be among the worst offenders in this regard. Too often, we fall back on shorthand terms or phrases to convey meaning: Section 1, Section 2, Section 7, Section 8, HHIs, SSNIP tests, horizontal and vertical, rule of reason and per se, quick look, elimination of double marginalization . . . the list goes on.
It is unsurprising that clear and lively writing has been especially influential in antitrust jurisprudence. Antitrust opinions that have been cited time and again are those that instruct and persuade by enlivening abstract or technical concepts with clever prose. Great antitrust opinions often convey complex ideas in memorable ways.
Judge Boudin, who happens to be a former Antitrust Division Deputy, wrote an article explaining how metaphors can be very effective in antitrust writing. He wrote that “[m]etaphors meet the same felt need for graspable ideas in a different way by making the abstractions of antitrust more concrete and often more dramatic.”
One memorable example is from Socony-Vacuum Oil, where Justice Douglas described competitive pricing as the “central nervous system of the economy.” Or who can forget a phrase like “the Magna Carta of free enterprise”? These insightful metaphors capture the essence of antitrust law, and they have left a lasting impression on antitrust jurisprudence.
The sparse text and common-law nature of Section 1 of the Sherman Act provide an especially good opening for the influence of judges that are gifted writers to leave their mark on the development of the law. In the seminal Chicago Board of Trade decision 100 years ago, Justice Brandeis described the rule of reason—which the Court had introduced just under seven years before—as follows: “The true test of legality is whether the restraint imposed is such as merely regulates and perhaps thereby promotes competition or whether it is such as may suppress or even destroy competition.” That elegant formulation is the essence of the test we still apply to the vast majority of challenged conduct, weighing procompetitive benefits against anticompetitive effects.
Insightful writing has continued to refine Section 1’s categories over the years. For example, we learned from Justice White in the BMI decision that “easy labels do not always supply ready answers.” That was his succinct way of telling us that antitrust analysis must be sufficiently nuanced to take into account the characteristics of the conduct that is under scrutiny.
The BMI decision also announced what may be the most often-quoted test for application of the per se rule, asking whether the practice at issue “facially appears to be one that would always or almost always tend to restrict competition and decrease output . . . or instead one designed to ‘increase economic efficiency and render markets more, rather than less, competitive.’”
Another one of my personal favorites comes from the Supreme Court’s 1984 Copperweld decision, which used imaginative language to explain why a parent company and its wholly owned subsidiary no longer could be held liable for a conspiracy under Section 1. Chief Justice Burger wrote: “A parent and its wholly owned subsidiary have a complete unity of interest. Their objectives are common, not disparate; their general corporate actions are guided or determined not by two separate corporate consciousnesses, but one. They are not unlike a multiple team of horses drawing a vehicle under the control of a single driver.” (I confess that I’m afraid that clever imagery may not withstand the test of time in the coming age of driverless cars.)
As for Section 2, enduring prose that immediately comes to mind is in Judge Learned Hand’s Alcoa opinion, written in 1945. Although Judge Hand found that Alcoa illegally monopolized the aluminum market, he distinguished illegal monopolization from lawful monopoly with striking clarity when he wrote that “[a] single producer may be the survivor out of a group of active competitors, merely by virtue of his superior skill, foresight and industry. . . . The successful competitor, having been urged to compete, must not be turned upon when he wins.”
That’s an important lesson that—once learned—you can never quite forget. It continues to teach us not to punish a firm due to its size or natural commercial success, and that phrase is still quoted in antitrust writing today. Indeed, the Supreme Court adopted suspiciously similar language years later in Grinnell when it distinguished “the willful acquisition or maintenance of [monopoly] power” from “growth or development as a consequence of a superior product, business acumen, or historic accident.”
While we are on the subject of memorable antitrust jurisprudence, I should take a moment to acknowledge one of the best legal writers in American jurisprudence more generally, the late Justice Scalia. Justice Scalia contributed significantly to U.S. antitrust jurisprudence and, perhaps more importantly, to the art of persuasive writing itself.
Former Solicitor General (and Scalia Clerk) Paul Clement said recently that “[t]he best lines in a Scalia opinion were no mere rhetorical flourishes. They were images — usually far removed from the technical legal questions at hand — that perfectly captured the point the Justice was trying to make.”
Scalia’s last major antitrust opinion, Trinko, is often quoted for, among other things, his explanation of why forcing monopolists to share their goods or services with competitors is a bad idea. “Enforced sharing,” he wrote, “requires antitrust courts to act as central planners, identifying the proper price, quantity, and other terms of dealing—a role for which they are ill suited. Moreover, compelling negotiation between competitors may facilitate the supreme evil of antitrust: collusion.”
I should also note that in Trinko Justice Scalia also described the Aspen Skiing decision—the “leading case” for imposing liability for refusing to deal under Section 2—as “at or near the outer boundary of § 2 liability.” I think there’s a clever skiing metaphor buried in there somewhere.
In conclusion, I note that our nation appears to be in the midst of what some have called an “antitrust moment.” Antitrust law makes national and global headlines on a weekly—if not daily—basis. Last Friday morning, I saw a puzzled anchor on CNBC ask a guest whether “monopsony” is a real word.
In this environment, good antitrust writing takes on an increased significance. The wide range of topics covered in the works being honored this evening will contribute to this important conversation.
Pittsburgh Man Pleads Guilty to Southside Armed Bank Robbery SpreeRead the Press Release
PITTSBUGRH, PA. - A former resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of violating federal robbery laws, United States Attorney Scott W. Brady announced today.
Thomas Hetrick, age 50, pleaded guilty to five counts before United States District Judge Schwab.
In connection with the guilty plea, the court was advised that Hetrick, while armed with either a knife or a gun, robbed the Dollar Bank, located at 1712 East Carson Street, Pittsburgh, PA, on August 21, 2017; the First Commonwealth Bank, located at 2501 East Carson Street, Pittsburgh, PA, on August 24, 2017 and again on August 30, 2017; and the First Commonwealth Bank, located at 500 East Waterfront Drive, Pittsburgh, PA 15210, on September 25, 2017. Hetrick also attempted to rob, while armed with a knife, the same First Commonwealth Bank, located at 2501 East Carson Street, Pittsburgh, PA, on September 25, 2017.
Judge Schwab scheduled sentencing for September 26, 2018. The law provides for a total maximum sentence of not more than 25 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered Hetrick remain in custody.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The FBI Pittsburgh’s Violent Crimes Task Force, with assistance from the Homestead Police Department, the Allegheny County Sheriff’s Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Thomas Hetrick.
Pierre Woman Indicted for Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, woman has been indicted by a federal grand jury for two counts of Assaulting, Resisting, and Impeding a Federal Officer.
Toni Ladeaux, age 21, was indicted on March 13, 2018. She appeared before U.S. Magistrate Judge Mark A. Moreno on April 12, 2018, and pled not guilty to the Indictment.
The maximum penalty for each count upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on February 8, 2018, Ladeaux, forcibly kicked multiple Rosebud Sioux Tribe law enforcement officers.
The charges are merely accusations and Ladeaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Ladeaux was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Owner of Michigan Marketing Company Charged with Tax CrimesRead the Press Release
A federal grand jury sitting in Flint, Michigan, has returned an indictment, which was unsealed yesterday, charging a Michigan business owner with filing a false tax return and failing to file tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment, Sarah Vidican, owned and operated a marketing and consulting company in Michigan and Florida under the name Magnalty LLC (Magnalty). Magnalty allegedly provided marketing and consulting services to physicians and chiropractors.
The indictment charges that Vidican filed a false 2012 partnership tax return for Magnalty that underreported the business’s income. The indictment further alleges that Vidican failed to file a personal tax return for 2013 and failed to file a 2014 partnership tax return for Magnalty, despite having an obligation to do so.
If convicted, Vidican faces a statutory maximum sentence of three years in prison for filing a false tax return and one year in prison for each failure to file count. Vidican also faces a period of supervised release, restitution and monetary penalties. An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Mark McDonald and William Guappone, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Owner of Kansas Medical Staffing Company Indicted in Employment Tax SchemeRead the Press Release
A federal grand jury sitting in Kansas City, Kansas, returned an indictment, which was unsealed yesterday, charging a Jefferson County, Kansas, man with seven counts of willful failure to pay over employment 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 Stephen McAllister for the District of Kansas.
According to the indictment, David Monhollon failed to pay over federal income, Social Security, and Medicare taxes withheld from the wages paid to employees of his medical staffing company, First Call Medical Group. The indictment alleges that Monhollon was the owner of First Call and was obligated to pay over to the IRS such payroll taxes on behalf of his company. Instead of remitting the money to the IRS, Monhollon allegedly used the funds to pay for personal expenses including racecar parts and equipment.
If convicted, the defendant faces a statutory maximum sentence of five years in prison for each count. He also faces a period of supervised release, restitution, and monetary penalties. An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney McAllister commended special agents of IRS Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Leon Patton and Tax Division Trial Attorney John Mulcahy, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Owner of Kansas Medical Staffing Company Indicted in Employment Tax SchemeRead the Press Release
KANSAS CITY, KAN. – A federal grand jury sitting in Kansas City, Kan., returned an indictment Wednesday charging a Jefferson County, Kan., man with seven counts of willful failure to pay over employment taxes to the Internal Revenue Service (IRS).
U.S. Attorney Stephen McAllister and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division announced the indictment today.
According to the indictment, David Monhollon failed to pay over federal income, Social Security and Medicare taxes withheld from the wages paid to employees of his medical staffing company, First Call Medical Group. The indictment alleges that Monhollon was the owner of First Call and was obligated to pay over to the IRS such payroll taxes on behalf of his company. Instead of remitting the money to the IRS, Monhollon allegedly used the funds to pay for personal expenses including racecar parts and equipment.
If convicted, the defendant faces a statutory maximum sentence of five years in prison for each count. He also faces a period of supervised release, restitution and monetary penalties. An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney McAllister commended special agents of IRS Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Leon Patton and Tax Division Trial Attorney John Mulcahy, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Ocean Springs Man Sentenced to Two Years in Prison for Wire Fraud SchemeRead the Press Release
Gulfport, Miss. – Thomas Richard Lepre, 63, of Ocean Springs, Mississippi, was sentenced today by U.S. District Judge Sul Ozerden to two years in federal prison followed by three years of supervised release for a wire fraud scheme, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze. Lepre was also ordered to pay $504,369.00 in restitution to victims.
Lepre devised a fraudulent wire scheme as an owner in a commercial financing partnership known as Alternative Financing Group ("AFG"). AFG purported to broker loans for individuals unable to obtain financing through traditional methods. Sources of income for the loans came from private investors to whom Lepre represented their moneys would be used to fund loans for AFG borrowing clients. The investigation revealed that, in fact, Lepre converted a large portion of the wired funds to his own use.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Andrea Jones.
Northfield man charged with stealing $684,000 after still working while collecting disability benefits for back injuryRead the Press Release
A Northfield man was charged today with stealing more than $684,000 after still working while collecting disability benefits, said U.S. Attorney Justin E. Herdman.
Thomas H. Cannell, 62, was charged via criminal information with one count of theft of government funds and one count of wire fraud.
Cannell fraudulently collected benefits from Social Security and Ohio Bureau of Workers’ Compensation for beginning in 1980, when he developed lower back pain at work. Cannell had been entitled to disability payments from a work-related injury in 1982. However, Cannell was required to report to both agencies whether he returned to work, which would terminate his ability to receive continued payments from both agencies, according to a criminal information.
Cannell developed a scheme where he could conceal his income as a fireplace salesman by not being paid directly from his employers. This scheme continued for decades until investigators uncovered Cannell working in 2016, according to court documents.
Special Agents James Altman from the Social Security Administration Office of the Inspector General and Alec Gilchrist from the Ohio Bureau of Workers' Compensation, Special Investigations Department, conducted the investigation. Special Assistant U.S. Attorney Payum Doroodian is prosecuting the case.
If convicted, the Court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An information 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.
North Carolina man admits to firearm chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jared Tyrone Cooke, of Charlotte, North Carolina, has admitted to using a firearm during a crime of violence, United States Attorney Bill Powell announced.
Cooke, age 24, pled guilty to one count of “Use of a Firearm During a Crime of Violence.” He admitted to brandishing a 12-gauge shotgun during a robbery in January 2017 in Morgantown, West Virginia.
Cooke faces not less than seven years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Morgantown Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
North Branford Man Admits to Hacking Apple iCloud Accounts of More Than 200 People, Including CelebritiesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that GEORGE GAROFANO, 26, of North Branford, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to a computer hacking offense related to a phishing scheme that gave him illegal access to more than 200 Apple iCloud accounts, many of which belonged to members of the entertainment industry.
This matter stems from an investigation conducted by the FBI in Los Angeles into the leaks of photographs of numerous female celebrities in September 2014. The U.S. Attorney’s Office for the Central District of California, which is leading the prosecution, filed charges against GAROFANO on January 11, 2018. The parties agreed to transfer the case to the District of Connecticut for further prosecution.
According to court documents and statements made in court, from April 2013 through October 2014, GAROFANO engaged in a phishing scheme to obtain usernames and passwords for iCloud accounts. GAROFANO admitted that he sent e-mails to victims that appeared to be from security accounts of Apple and encouraged the victims to send him their usernames and passwords, or to enter them on a third-party website, where he would later retrieve them. GAROFANO used the usernames and passwords to access his victims’ iCloud accounts, which allowed him to steal personal information, including sensitive and private photographs and videos. In some instances, GAROFANO traded the usernames and passwords, as well as the materials he stole from the victims, with other individuals.
By illegally accessing the iCloud accounts, GAROFANO gained access to approximately 240 accounts. Although many of GAROFANO’s victims were members of the entertainment industry in California, many non-celebrities who live in Connecticut were also victimized.
GAROFANO pleaded guilty to one count of unauthorized access to a protected computer to obtain information, an offense that carries a maximum term of imprisonment of five years. A sentencing date is not scheduled.
GAROFANO is released on a $50,000 bond.
This case is being prosecuted by Assistant U.S. Attorney Neeraj Patel of the District of Connecticut, and Assistant U.S. Attorney Ryan White of the Central District of California.
Nicaraguan National Pleads Guilty to Illegal Re-Entry of a Removed Alien Previously Convicted of a FelonyRead the Press Release
U. S. Attorney Duane A. Evans announced that NORWIN CASTELLON-LOPEZ, age 35, a citizen and national of Nicaragua, pled guilty yesterday to a one-count Bill of Information for illegally re-entering the United States having previously been deported as an illegal alien and having previously been convicted of a felony.
According to court documents, CASTELLON-LOPEZ was found in the United States on or about January 11, 2017, after having been previously removed from the United States on December 22, 2010, and October 7, 2015. Further, on August 30, 2010, CASTELLON-LOPEZ was convicted of a felony in Orleans Parish Criminal District Court.
CASTELLON-LOPEZ faces a maximum term of imprisonment of ten (10) years, a fine of $250,000.00, and up to three (3) years of supervised release following any term of imprisonment. Sentencing is scheduled for June 20, 2018, before Chief United States District Judge Engelhardt.
U.S. Attorney Evans praised the work of the U. S. Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Michael M. Simpson is in charge of the prosecution.
Niagara Falls Woman Pleads Guilty in Debt Collection SchemeRead 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 Debbie Seright, 52, of Niagara Falls, NY, pleaded guilty to conspiracy to commit wire fraud before U.S. District Judge Richard J. Arcara. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Maura K. O’Donnell, who is handling the case, stated that Seright managed supposed debt collection agencies, which operated under various names, including Lakeside Mediations, Lincoln Mediation, Valentine Legal Mediation, First Point Mediation, State Filing and Legal Services and Elite Services. As a manager, the defendant directed and trained other employees to engage in fraudulent debt collection practices. Specifically, Seright and the employees she managed placed telephone calls to "debtors" throughout the United States and, in an effort to induce the "debtors" to make payments, used various fraudulent tactics, including falsely representing their identities, falsely threatening to arrest them, and claiming the existence of criminal charges against the "debtors.” The defendant and employees also routinely collected on debts which they knew had already been satisfied, and collected money from "debtors" from whom they had already collected payment, deemed to be "easy targets." "Debtors" were instructed to make payment to the various debt collection businesses through various means, including MoneyGram payments, bank wire transfers, and debit/credit card payments.
Between July 2015 and December 2016, the section of the debt collection operation Seright participated in collected approximately $1,154,213.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special-Agent-in-Charge Kevin Kelly; the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge James D. Robnett; and the United States Postal Service Inspection Service, under the direction of Acting Inspector-in-Charge Raymond Moss.
Sentencing is scheduled for July 24, 2018, at 1:00 p.m. before Judge Arcara.
New Orleans Man Pleads Guilty to Drug Conspiracy and Firearms OffensesRead the Press Release
U.S. Attorney Duane A. Evans announced that JUSTIN CRAFT, age 29, of New Orleans, pled guilty to several drug and firearms charges, including conspiracy to distribute and possess with intent to distribute one hundred grams or more of heroin and possessing firearms in furtherance of a drug trafficking crime.
According to court documents, In March of 2017, members of the NOPD/HIDTA Task Force received information from a source of information that three individuals, including CRAFT, were heroin distributors in the area of Mandeville Street and Derbigny Street in New Orleans.
On April 11, 2017, officers conducted surveillance of the individuals and observed CRAFT conduct a hand-to-hand narcotics transaction with an individual. Officers arrested the individual and seized cocaine base that he purchased from CRAFT. A second individual who was also arrested after purchasing heroin in the area, informed officers that he called one telephone that was shared by CRAFT and two other persons. According to the individual, any one of the three would answer the phone and sell him an ounce of heroin on a weekly basis.
Officers and DEA Special Agents obtained a search warrant for CRAFT’S residence at 14070 Wales Street in New Orleans. During the search, officers and agents seized 4.9 grams of heroin and several firearms, including two semi-automatic rifles, a semi-automatic pistol, and a shotgun.
CRAFT faces a minimum term of fifteen years’ imprisonment and a maximum of life imprisonment. U.S. District Judge Carl J. Barbier set sentencing for June 28, 2018.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration, the New Orleans Police Department, and the St. Bernard Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney André Jones is in charge of the prosecution.
New Orleans Man Charged with Bank Robbery and Interstate Transportation of Stolen PropertyRead the Press Release
U.S. Attorney Duane A. Evans announced that RONALD VANTRESS, JR., age 53, of New Orleans, was charged in a three-count indictment with bank robbery, interstate transportation of stolen property, and interstate transportation of a stolen motor vehicle, in violation of 18 U.S.C. §§ 2113(a), 2314, and 2312.
According to the indictment, RONALD VANTRESS, JR., robbed the Gulf Coast Bank and Trust, located at 201 North Carrollton Ave., New Orleans, Louisiana, on March 21, 2018. In addition, RONALD VANTRESS JR. transported a stolen 2009 Toyota Camry, a stolen license plate, and other stolen property from New Orleans to Texas after the robbery.
If convicted, RONALD VANTRESS, JR. faces a maximum term of imprisonment of twenty years, a fine of up to $250,000.00, three years supervised release after imprisonment, and a mandatory $100 special assessment on the bank robbery count.
U. S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
New Jersey Couple Resentenced for Child AbuseRead the Press Release
NEWARK, N.J. – A former U.S. Army major and his wife were sentenced today for their respective roles in abusing their adopted children, who all were less than 4 years old and developmentally delayed, through neglectful and cruel acts, including breaking their bones, denying them medical attention, withholding water and force-feeding them hot sauce, U.S. Attorney Craig Carpenito announced.
Carolyn Jackson, 40, was sentenced to 40 months in prison and her husband, John E. Jackson, 42, formerly a major in the Army at the Picatinny Arsenal Installation in Morris County, New Jersey, was sentenced to three years of probation. Both will get credit for time already served.
Convicted by a jury in July 2015 on multiple counts of child endangerment, Carolyn Jackson had originally received 24 months in prison and John E. Jackson had received probation and 400 hours of community service when they were originally sentenced in December 2015. The government appealed their sentences to the U.S. Court of Appeals for the Third Circuit, which ruled in July 2017 that the District Court had committed several errors in the process of imposing those sentences.
“Obviously, we are disappointed that the court did not agree with the sentences we sought,” U.S. Attorney Carpenito said. “This is a case where the victims were children, horribly abused by the foster parents to whom they were entrusted. A punishment that was severe – but fair – was warranted.”
The Jacksons were each found guilty following a four-month trial before U.S. District Judge Katharine S. Hayden in Newark federal court of one count of conspiracy to endanger the welfare of a child; Carolyn Jackson was found guilty of 11 substantive counts of endangering the welfare of a child and John Jackson was found guilty of nine substantive counts of endangering the welfare of a child. Judge Hayden imposed the sentences today in Newark federal court.
The case falls under federal jurisdiction because the crimes were committed on a military base. John Jackson was discharged from the Army in May 2015.
According to documents filed in this case and the evidence at trial:
From August 2005 until April 23, 2010, Carolyn and John Jackson conspired to engage in a constant course of neglect and cruelty towards three children they fostered and then adopted. The Jacksons told their biological children not to report the physical assaults to others, saying that the punishments and disciplinary techniques were justified, as they were “training” the adopted children how to behave.
After John Jackson was informed by a family friend that the oldest biological child had revealed the abuse in the Jackson household, John Jackson reported the breach to Carolyn Jackson, who retaliated against that biological child by beating the child 30 times with a belt.
As part of the conspiracy, the Jacksons physically assaulted their adopted children with various objects, causing two children to sustain fractured bones (including a fractured spine, fractured skull and fractured upper arms); failed to seek prompt medical attention for their injuries; withheld sufficient nourishment and food from their adopted children; withheld adequate water from two of their children and, at times, prohibited them from drinking water altogether; forced two of the children to consume foods intended to cause them pain and suffering, such as red pepper flakes and hot sauce, and caused one child to ingest excessive sodium or sodium-laden substances while being deprived of water, leading to a life-threatening condition on two separate occasions in two states. The Jacksons even punished one adopted child, who had to resort to sneaking food and drinking from the toilet, by hitting the child, making the child ingest hot sauce, and forcing the child to eat a raw onion like an apple.
None of the children, adoptive and biological, remain in the custody of the defendants.
Judge Hayden also sentenced Carolyn Jackson to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, with the investigation leading to today’s sentencings. He also thanked the U.S. Army Criminal Investigation Command, under the command of Major General David E. Quantock, and the Morris County Prosecutor’s Office, under the direction of Prosecutor Fredric M. Knapp.
The government is represented by Deputy U.S. Attorney Thomas Eicher and Assistant U.S. Attorney John Romano of the U.S. Attorney’s Office in Newark.
Nampa Man Pleads Guilty to Federal Gun ChargeRead the Press Release
BOISE – Raul Efrain Lopez Jr., 36, of Nampa, Idaho, pleaded guilty today to unlawful possession of a firearm, U.S. Attorney Bart M. Davis announced. A federal grand jury indicted Lopez on January 9, 2018. The indictment alleged that Lopez possessed a firearm after previously being convicted of a felony crime.
According to court documents, in November 2017, law enforcement stopped Lopez while he was driving in Nampa, Idaho, and arrested him on an outstanding warrant. Officers could see firearms in the backseat of the car and subsequently located a shotgun, three rifles, a handgun, ammunition, and magazines. Lopez is prohibited from possessing firearms due to a felony conviction for possession of a controlled substance.
Unlawful possession of a firearm is punishable by up to ten years imprisonment, three years of supervised release, a $250,000 fine, and a $100 special assessment.
Sentencing is set for July 10, 2018, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
This case was investigated by the Treasure Valley Metro Violent Crimes Task Force. The Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
This case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Modesto Tax Return Preparer Charged with Tax FraudRead the Press Release
FRESNO, Calif. — On April 5, 2018, a federal grand jury returned an 11-count indictment against Chris Donell Smith, 54, of Stockton, charging him with assisting in the preparation of false tax returns, U.S. Attorney McGregor W. Scott announced.
According to the indictment, Smith prepared federal income tax returns for New Covenant Tax & Accounting in Modesto. He allegedly prepared fraudulent returns for a number of his clients that reported false items or dollar amounts without their knowledge or consent. For some of these clients, he prepared a correct tax return which he gave the client, but then electronically filed a fraudulent return claiming a higher refund. He directed that the payment of the refund be split, with the amount the client expected going into the client’s own bank account and the additional higher amount going into an account controlled by Smith. The indictment charges that Smith defrauded the IRS of approximately $63,000.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Mark J. McKeon is prosecuting the case.
If convicted, Smith faces a maximum statutory penalty of three years in prison and a $250,000 fine on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Michigan Man Sentenced to 45 Years in Federal Prison for Violently Forcing Children to Engage in ProstitutionRead the Press Release
CHICAGO — A Michigan man has been sentenced to 45 years in federal prison for violently forcing two children and a young woman to engage in prostitution.
FABRIEAL DELANEY, 32, brought some of his victims to the Chicago area from Michigan to perform sex acts for money. He used violence, verbal abuse and drug addiction to maintain control over his victims, all of whom were 16 years old or younger when he befriended them and began grooming them for prostitution.
U.S. District Judge Manish S. Shah on Wednesday imposed the 45-year sentence in federal court in Chicago. Delaney, of Battle Creek, Mich., and formerly of Palatine, Ill., was previously convicted by a jury on eight sex trafficking counts.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. Substantial assistance was provided by the Cook County Sheriff’s Police Department, the Illinois State Police, the Will County State’s Attorney’s Office, the FBI field divisions in Detroit and Kalamazoo, Mich., the Kalamazoo, Mich., Police Department, the Battle Creek, Mich., Police Department, and the Stop-It Program of the Salvation Army Family and Community Services.
“The defendant preyed upon young and vulnerable girls for his own profit,” Assistant U.S. Attorney Rajnath Laud argued in the government’s sentencing memorandum. “Defendant’s crime is incredibly serious, and warrants a sentence of several decades in prison.”
Evidence at trial revealed that Delaney took photographs of the girls and posted them in online advertisements offering commercial sex. He rented hotel rooms that were used for encounters with individuals who responded to the advertisements. Delaney at first took half of the money earned by his victims, but eventually he took all of it.
In July 2011, Delaney transported two minor females and a young woman from Michigan to a hotel in Tinley Park, Ill., to engage in prostitution at what Delaney believed was a bachelor party. Delaney expected the victims to engage in sexual activity with up to 12 men for $150 to $300 per customer. Unbeknownst to Delaney, the purported bachelor party was a ruse set up by federal law enforcement that had been investigating his sex trafficking crimes. Delaney was arrested and has remained in custody ever since.
Some of Delaney’s victims testified at trial about their ordeals. The adult victim testified that Delaney threatened her by holding a hot iron next to her face.
Michigan Man Sentenced for Stealing Xerox TonerRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that David Miedel, 42, of Michigan, who was convicted of conspiracy to transfer stolen property in interstate commerce, was sentenced to 12 months in prison by U.S. District Judge Charles J. Siragusa. The defendant was also ordered to pay restitution to Xerox in the amount of $1,031,680.24.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that the Xerox Company provides branded printing toner to customers who have entered into lease contracts for office equipment. As part of a lease, the customer is invoiced a flat rate per month for office equipment, including printers, copiers, scanners, multifunction devices, and graphic arts production equipment. In order to operate each piece of equipment, supplies are required, including toner. The supplies can be expensive to buy individually, so Xerox offers an “all-inclusive” contract. Xerox provides the supplies and the customer pays the company based on the number of prints made with the supplies. The supplies must be consumed by the customer and at all times remain the property of Xerox until consumed in the leased equipment.
In August 2015, Miedel contacted employees of a logistics company who worked at the company’s warehouse in Charlotte, North Carolina where Xerox supplies, which had been returned by customers, were being stored. The defendant told employees that he wanted to purchase the returned supplies. On September 11, 2015, Miedel traveled to North Carolina to purchase the supplies for himself and his partner, who also resided in Michigan. Miedel purchased 92 units of Xerox supplies for which he paid the warehouse employees $1,800 in cash. The defendant then drove the stolen supplies to Michigan where they were sold.
In September 2015, Miedel began purchasing stolen Xerox supplies from a person he believed was a logistics company employee in Webster, NY. Between September 15, 2015, and March 2016, the defendant traveled to Webster several times to purchase what he believed were stolen Xerox supplies worth approximately $200,000. The total loss to Xerox from Miedel’s conduct was $1,031,680.24.
Today’s sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.Michigan Healthcare Management Company Employees Indicted in Employment Tax SchemeRead the Press Release
A federal grand jury sitting in Flint, Michigan, has returned an indictment, which was unsealed yesterday, charging two managers of a healthcare management services company with failing to pay over payroll taxes to the Internal Revenue Service (IRS) and a third employee of the company with attempting to obstruct the internal revenue laws, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment, Edward Cespedes and Joseph DeSanto managed and exercised control over the finances of a healthcare management services company, Integrated HCS Practice Management, operating in Southfield, Michigan. Gerri Avery was allegedly employed by the company as an executive assistant and was responsible for paying expenses.
The indictment charges that Cespedes and DeSanto from October 2013 to February 2014 failed to pay over to the IRS the full amount of payroll taxes withheld from employee paychecks, despite having an obligation to do so. Cespedes and DeSanto are alleged to have used the misappropriated money to pay the operating expenses of the company and to pay their own personal expenses.
The indictment further alleges that from July 2014 to July 2017, Gerri Avery obstructed the IRS’ attempts to collect the past due payroll taxes by providing materially false information to IRS collection officials.
If convicted, Cespedes and DeSanto face a statutory maximum sentence of five years in prison on each count of failure to pay over payroll taxes and Avery faces a maximum sentence of three years in prison on the obstruction count. The defendants also face a period of supervised release, restitution, and monetary penalties. An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Acting Deputy Assistant Attorney General Stuart M. Goldberg commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Mark McDonald and William Guappone, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Mercer County Man Sentenced to 92 Months in Prison for Cocaine Distribution ConspiracyRead the Press Release
TRENTON, N.J. – A Trenton man was sentenced today to 92 months in prison for his role in a conspiracy to distribute more than a kilogram of cocaine and crack cocaine in the Trenton area, U.S. Attorney Craig Carpenito announced.
Bobby Williams, 38, previously pleaded guilty before U.S. District Judge Michael A. Shipp to Count One of a superseding indictment charging him with conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine and to manufacture, distribute, and possess with intent to distribute 28 grams or more of cocaine base. Judge Shipp imposed the sentence today in Trenton federal court.
According to the documents filed in this case and statements made in court:
From September 2013 through his arrest on Jan. 13, 2016, Williams conspired with co-defendants Khalfini Richardson, William Enmond and Capitol T. Wellons to distribute cocaine and manufacture and distribute crack cocaine primarily from two adjacent residences in Trenton.
At his plea hearing, Williams admitted conspiring to distribute a total of 1.72 kilograms of cocaine and 82.9 grams of crack cocaine.
In addition to the prison term, Judge Shipp sentenced Williams to five years of supervised release.
Enmond entered a guilty plea and was sentenced on July 20, 2017, to 60 months in prison. Richardson and Wellons both pleaded guilty and were sentenced February 21, 2018, to 156 months and 84 months, respectively, in prison.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Molly Lorber and Joseph Gribko of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: John S. Furlong Esq., Ewing, New Jersey
Memphis Man Pleads Guilty to Aggravated Identity TheftRead the Press Release
Memphis, TN – A Memphis man has pleaded guilty to possession of accessing devices with intent to defraud and aggravated identity theft. U.S. Attorney D. Michael Dunavant of the Western Division of Tennessee announced the guilty plea today.
According to information presented at the plea hearing on April 9, between June 2011 and July 2016, Melvin Gene Griggs Jr., 32, used the identifying information of multiple victims to access victims’ credit card and bank accounts.
U.S. Attorney D. Michael Dunavant said: "Aggravated identity theft and schemes to defraud or compromise the personal and financial security of countless vulnerable victims will not be tolerated. This case demonstrates our commitment to protect the personal and financial information of citizens and institutions, and to hold offenders accountable for these disturbing crimes of dishonesty. We are pleased to work with our federal and local law enforcement partners to achieve justice for the victims in this case."
During the course of the investigation, the government found that the personal identifying information of over 400 victims had been compromised. The information included credit card numbers, CVV2 numbers, ATM pin numbers, bank names, routing and bank account numbers, phone numbers, social security numbers, birth dates, mothers’ maiden names, AOL IDs, email address and physical addresses.
The scheme to defraud included opening new accounts in the victim’s name and/or adding himself as an authorized user to a victim’s account. Griggs would then have credit cards and financial statements from the accounts mailed to him. The credit cards were used to make purchases at local retailers and online. He also obtained money from victims’ bank accounts by wire transfers and cashing checks.
"Identity theft has a huge financial and emotional impact on the individual victims involved and the American public as a whole. This investigation is an excellent example of partnership between federal law enforcement agencies working together," said David M. McGinnis, Inspector in Charge, Charlotte Division. "I fully commend the hard work and countless hours put forth by all of the law enforcement agencies involved, which resulted in bringing this individual to justice."
Griggs faces a maximum penalty of 20 years imprisonment, a fine of $250,000 and 3 years supervised release. The defendant is scheduled to be sentenced on August 10, 2018 by U.S. District Judge Thomas L. Parker.
The case was investigated by the United States Postal Inspection Service, United States Secret Service and the Memphis Police Department.
Assistant U.S. Attorney Lorraine Craig is prosecuting this case on the government’s behalf.
Meadville Man Charged with Violating Laws Relating to the Sexual Exploitation of ChildrenRead the Press Release
ERIE, Pa. - A former resident of Meadville, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
The four-count superseding indictment named Dennis Michael Kerr, 27, as the sole defendant.
According to the indictment presented to the court, Kerr received, transported and possessed computer images and movies depicting minors engaging in sexually explicit conduct. Kerr also transported and attempted to transport obscene material to an individual Kerr thought was a minor.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The law provides for a maximum total sentence of 70 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the superseding indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Maurice man sentenced to 36 months in prison for fraudulently obtaining more than $1.2 million from Abbeville bankRead the Press Release
LAFAYETTE, La. – United States Attorney David C. Joseph announced that a man from Maurice was sentenced Tuesday to three years in prison for submitting false receipts in order to draw more than $1.2 million from a bank line of credit.
Richard J. Viator Jr., 53, of Maurice, Louisiana, was sentenced by U.S. District Judge Dee D. Drell on one count of bank fraud. He was also sentenced to five years of supervised release and was ordered to pay $1,227,908.54 in restitution. According to the January 10, 2018 guilty plea, Viator was the owner/president of the oilfield company Safety Analysis Team Inc. located in Abbeville, Louisiana. Viator had a revolving line of credit for $2 million at an Abbeville bank. In order to access the credit, he was required to submit receipts. From November 4, 2010 to February 23, 2011, Viator received 11 draws or payments from the line of credit based on false and fraudulent invoices, which purported to be accounts receivable from various companies for work performed by Safety Analysis Team.
The FBI conducted the investigation. Assistant U.S. Attorneys Jamilla A. Bynog and Kelly P. Uebinger prosecuted the case.
Manhattan U.S. Attorney Announces Distribution of More Than $500 Million to Victims of Madoff Ponzi SchemeRead the Press Release
Attorney General Jeff Sessions, Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), announced today that the Madoff Victim Fund established by the Department of Justice began its second distribution of $504.2 million in funds forfeited to the United States Government in connection with the Bernard L. Madoff Investment Securities LLC (“BLMIS”) fraud scheme. These funds will be sent to more than 21,000 victims worldwide, the second of two payments totaling nearly $1.3 billion that the Madoff Victim Fund will return to victims. More than $4 billion in assets have been recovered as compensation for losses suffered by the collapse of BLMIS, following the largest fraud in history. Another $5 billion in assets recovered by the U.S. Attorney’s Office are being separately paid to Madoff victims through the BLMIS Customer Fund administered by the Securities Investor Protection Act Trustee.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Bernie Madoff committed history’s largest Ponzi scheme. This Office prosecuted Madoff himself, and others who helped perpetrate his fraud, and continues to vigorously pursue money recoveries for his victims. Today’s payment of more than $500 million is this Office’s second installment in a series of distributions that represent our ongoing commitment to find relief for victims of Madoff’s heinous crimes.”
Attorney General Jeff Sessions said: “In one of the most notorious and unconscionable financial crimes in history, Bernie Madoff robbed tens of thousands of individuals, pension plans, charitable organizations and others, all the while funding a lavish personal lifestyle. Through the use of asset forfeiture, the Department of Justice has recovered over $4 billion of Mr. Madoff’s fraud, and we continue to work to compensate those he defrauded. Last June, the Department approved more than 39,000 petitions for compensation. Today, during National Crime Victims’ Rights Week, the Department returns more than a half-billion dollars to nearly 22,000 law-abiding people and organizations. We cannot undo the damage that Bernie Madoff has done, but today’s distribution will provide significant relief to many of the victims of one of the worst frauds of all time.”
FBI Assistant Director William F. Sweeney Jr. said: “While today’s distribution of funds is indeed historical in scope, we understand no amount of money could ever restore the damage done by Madoff as a result of his selfish behavior and unforgivable financial crimes. To all of his many victims and their families, we realize this gesture may not provide the consolation necessary to remove the pain and suffering you have been brought to bear, but we are hopeful it provides some sense of relief, and we remain committed to achieve justice for all victims of inexcusable financial crimes.”
Since the early 1970s, BERNARD L. MADOFF (“MADOFF”) used his position as Chairman of BLMIS, the investment advisory business he founded, to steal billions from his clients. On March 12, 2009, MADOFF pled guilty to 11 federal felonies, admitting that he had turned his wealth management business into the world’s largest Ponzi scheme, benefitting himself, his family, and select members of his inner circle. On June 29, 2009, United States District Judge Denny Chin sentenced MADOFF to 150 years in prison for running the largest fraudulent scheme in history. Judge Chin ordered MADOFF to forfeit $170,799,000,000 as part of MADOFF’s sentence.
The Madoff Victim Fund is funded through recoveries by the U.S. Attorney’s Office in various criminal and civil forfeiture actions, and is overseen by Richard Breeden, the former Chairman of the United States Securities and Exchange Commission, in his capacity as Special Master appointed by the Department of Justice to assist in connection with the victim remission proceedings.
Of the approximately $4.05 billion that will be made available to victims through the Madoff Victim Fund, approximately $2.2 billion was collected as part of the civil forfeiture recovery from the estate of deceased MADOFF investor Jeffry Picower. An additional $1.7 billion was collected as part of a Deferred Prosecution Agreement with JPMorgan Chase Bank N.A. for MADOFF-related Bank Secrecy Act violations. Additional funds were collected through criminal and civil forfeiture actions against MADOFF and his co-conspirators, and certain MADOFF investors.
Mr. Berman praised the work of the FBI and the Madoff Victim Fund, and thanked the Money Laundering and Asset Recovery Section of the Department of Justice’s Criminal Division for their assistance.
For more information about the Madoff Victim Fund, compensation to victims of BLMIS, eligibility criteria, and payment information, please visit www.madoffvictimfund.com.
The case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant United States Attorneys Jonathan Cohen, Louis A. Pellegrino, and Niketh Velamoor are in charge of the case.
Manhattan U.S. Attorney Announces Arrest of Former CEO of Alaska-Based Fiber Optic Company for Perpetrating A Multimillion-Dollar Investment Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a complaint charging ELIZABETH ANN PIERCE with wire fraud in connection with a scheme to use forged guaranteed revenue contracts to fraudulently induce investors to invest more than $250 million in a fiber optic cable network in Alaska. PIERCE surrendered this morning in New York, New York, to FBI agents and will be presented before Magistrate Judge Robert W. Lehrburger this afternoon.
U.S. Attorney Geoffrey S. Berman said: “To realize her plan to build a fiber optic system that would service Alaska and connect it to the lower 48 states, Elizabeth Ann Pierce allegedly convinced two investment companies that she had secured signed contracts that would supposedly generate hundreds of millions of dollars in guaranteed future revenue from the system. As it turned out, those sales agreements were worthless because the customers had not signed them. Instead, as alleged, Pierce had forged counterparty signatures on contract after contract. As a result of Pierce’s deception, the investment companies were left with a system that is worth far less than Pierce had led them to believe.”
Assistant Director William F. Sweeney said: “It’s important for stakeholders to maintain a certain level of awareness into how their investments are being managed. In this case, thanks to a customer who was paying close attention to their invoices and noticed something was up, Pierce’s alleged scheme began to fall apart. The false agreements she tried to pass off as legitimate didn’t add up. In the end, her alleged crime was discovered. Today’s charges highlight our commitment to detecting financial crimes of all kinds, and protecting those victims who invest their hard-earned money with those looking to make an easy profit.”
According to the allegations contained in the Complaint[1] unsealed today in Manhattan federal court:
PIERCE was the chief executive officer of a telecommunications company based in Anchorage, Alaska (the “Fiber Optic Company”), that built, operates, and markets a high-speed fiber optic cable system. The system consists of three segments: a subsea segment that spans the Alaskan Arctic; a terrestrial segment that runs north to south along the Dalton Highway; and a land-based network of pre-existing fibers that connects the subsea and terrestrial segments that the Fiber Optic Company wholly or jointly owns or controls with another telecommunications company. The Fiber Optic System is connected to the lower 48 states through other existing networks.
Between May 2015, and July 2017, PIERCE engaged in a scheme to induce two investment companies to invest more than $250 million in the Fiber Optic System by providing them with forged broadband capacity sales contracts (the “Fake Revenue Agreements”). Under the Fake Revenue Agreements, the customers – other telecommunications companies that resell capacity to end users such as businesses and households – appeared to have made binding commitments to purchase specific wholesale quantities of bandwidth from the Fiber Optic Company at specific prices. The cumulative value of the Fake Revenue Agreements was more than $24 million during the first year of the subsea segment’s operation, approximately $10 million during the first year of the terrestrial segment’s operation, and approximately $1 billion over the life of the Agreements. In fact, the Fake Revenue Agreements were completely worthless because PIERCE had forged the counterparties’ signatures.
Certain of the Fake Revenue Agreements never existed at all, while others were false versions of genuine revenue agreements that were more favorable to the Fiber Optic Company than the genuine agreements. For example, under one of the Fake Revenue Agreements, the customer supposedly agreed to buy increasingly more gigabits per second of capacity over a period of 20 years from the Fiber Optic Company. That contract, if genuine, would have assured the Fiber Optic Company of hundreds of millions of dollars in future revenue. In reality, negotiations over that deal ended unsuccessfully, and PIERCE never disclosed that fact to the investors. Under another Fake Revenue Agreement, the customer had purportedly agreed to buy a fixed, predetermined amount of capacity regardless of subsequent market conditions. In actuality, that customer was not obligated to buy any capacity.
PIERCE’s scheme began unraveling when a customer disputed invoices that it received from the Fiber Optic Company pursuant to one of the Fake Revenue Agreements. Shortly thereafter, PIERCE abruptly resigned from the Fiber Optic Company.
* * *
PIERCE, age 54, of Anchorage, Alaska, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison.
Mr. Berman praised the investigative work of the FBI.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Sarah Lai is in charge of the prosecution. The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.