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Thursday 5 April 2018
Canal Winchester Man Charged with Robbing Victims at Gunpoint During Sales of Items Posted on Let Go, CraigslistRead the Press Release
COLUMBUS, Ohio – Dezjuan O. Myers, 21, of Canal Winchester, Ohio, was arrested today and charged with interstate robbery, brandishing a firearm during a crime of violence and possessing a firearm after being convicted of a felony.
Myers is scheduled to appear for arraignment at 2:30pm today before U.S. Magistrate Judge Kimberly A. Jolson.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Columbus Police Chief Kim Jacobs announced the charges.
According to an affidavit filed in support of the criminal complaint, on at least three occasions in March 2018, Myers robbed individuals at gunpoint after agreeing to purchase items from the victims on the app Let Go and on Craigslist.
On March 15, March 24 and March 29, it is alleged that Myers met with separate victims in the parking lot of a church on Gender Road to buy XBOX and Playstation gaming systems posted on Let Go and Craigslist.
Each time, Myers asked the seller victims to go to his house nearby to test that the systems worked. As the victims began to walk with him, he allegedly retrieved a shotgun stashed in a pile of leaves and pointed it at the victims, telling them to leave their items and walk away. On March 29, Myers retrieved the shotgun near a house on Laburnum Drive. Columbus police responded to the scene of each incident, and officers learned the home on Laburnum Drive was the residence of Myers’s grandfather.
Interstate robbery is a federal crime punishable by up to 20 years in prison. Brandishing a firearm during a crime of violence carries a potential sentence seven years to life in prison. Possessing a firearm after being convicted of a felony is a crime punishable by up to 10 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the ATF and Columbus Division of Police, as well as Assistant United States Attorney David J. Bosley, who is prosecuting the case.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Canadian Man Sentenced on Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy announced today that Harvey Peake, 61, of Canada, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine, was sentenced to 87 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorneys Michael Adler and Patricia Astorga, who handled the case, stated that in 2013, Peake recruited co-defendant John Lambert to assist in the transporting of illegal narcotics for distribution. On October 3, 2016, Peake and Lambert traveled to the Seneca Buffalo Creek Casino in downtown Buffalo to hand off 10 kilograms of cocaine. The two men met briefly with a third individual in the casino and then walked towards the parking garage where Peake’s vehicle was parked. Lambert got into the driver’s seat and tapped the brake lights to signal their location to the third individual. Peake then opened the trunk of and removed a suitcase. The third individual pulled up next to the vehicle and Peake attempted to give the suitcase to the individual. Peake and Lambert were then arrested. Law enforcement officers seized the suitcase, which contained approximately 10 kilograms of cocaine.
Lambert was convicted and sentenced to 63 months in prison.
Today’s sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
California Man Sentenced to Federal Prison for Methamphetamine TraffickingRead the Press Release
BOISE - Justin Gomez, 29, of Barstow, California, was sentenced yesterday in United States district court for possession with intent to distribute methamphetamine, U.S. Attorney Bart M. Davis announced. Senior U.S. District Judge Edward J. Lodge sentenced Gomez to 240 months in prison. Judge Lodge also ordered Gomez serve an additional five years of supervised release upon his release from prison.
A federal jury found Gomez guilty of the crime after a two-day trial in April 2017. The evidence presented at trial showed that Gomez and his co-defendant, Salvador Gonzalez, traveled from southern California to Boise, Idaho, to distribute a large quantity of methamphetamine. Local and federal law enforcement officers discovered the conspiracy and intervened. On September 11, 2015, in Meridian, Idaho, both Gomez and Gonzalez were arrested with over two pounds of pure methamphetamine in their possession.
Gonzalez pleaded guilty before trial to two counts of possession with intent to distribute methamphetamine. On November 9, 2016, Judge Lodge sentenced Gonzalez to 120 months in prison.
The case was investigated by the Drug Enforcement Administration and Ada County Sheriff’s Office.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
California Man Pleads Guilty to Multimillion-Dollar Fraud on Film InvestorsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that STEVEN BROWN pled guilty today to defrauding victims of over $9.5 million by participating in a fraudulent scheme to solicit investments in feature-length films and documentaries based on misrepresentations and fraudulent documents. BROWN pled guilty before United States Magistrate Judge Henry B. Pitman and is scheduled to be sentenced on July 18, 2018, at 2:00 p.m., before U.S. District Judge Kimba M. Wood.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Steven Brown defrauded investors of millions of dollars by convincing them to invest in Hollywood films and documentaries with false promises and fraudulent documents. Even after he was arrested, he continued his fraud and induced yet another investor to provide additional money using the same fraudulent tactics. Now Brown’s scheme has been revealed, and he faces significant time for his scheme.”
According to allegations in an Indictment and other documents filed in federal court, as well as statements made in public court proceedings:
From 2009 through 2017, STEVEN BROWN participated in a scheme in which he, along with co-conspirators, solicited investments in the marketing and production of feature-length films and documentaries from investors, including by furnishing them with fraudulent documents and by promising guaranteed returns, which never materialized.
In order to solicit these investments, BROWN and others made material misrepresentations about, among other things, their own investments in the films for which they were soliciting money, as well as investments that they claimed to have received from other investors. To support their claims, BROWN and his coconspirators at times sent the victims falsified financial records that reflected investments in the films that had never actually been made. BROWN and his coconspirators also told certain victims that their investments would be guaranteed by a fictitious entity, and provided falsified documents in support of these purported guarantees. On one occasion, Brown sent an email to a victim attaching what purported to be a current bank statement for an account held by the fictitious entity, as well as an email from an executive at the fictitious entity guaranteeing the victim’s investment. In fact, neither the account nor the executive actually existed.
BROWN continued to solicit investments in film projects based on misrepresentations even after being arrested on the criminal charges brought in this case. In 2017, BROWN solicited an investment from a victim of the scheme in a film production and distribution company with which BROWN was purportedly involved by promising the victim a 50 percent return on the investment. The victim’s funds were never returned and were, in part, used to pay expenses unrelated to any film projects.
In total, BROWN and his co-conspirators solicited millions of dollars from their victims, allegedly to be used for either marketing or production costs associated with the various films. In reality, however, the money that was received from these investors was primarily used to fund other projects, to pay back previously defrauded investors, and to pay the personal expenses of BROWN and his co-conspirators, including, among other things, the purchase of a condominium for BROWN.
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BROWN, 48, of Los Angeles, California, pled guilty to one count of conspiring to commit wire fraud, which carries a maximum term of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Katherine Reilly, Noah Solowiejczyk, and Ryan Finkel are in charge of the prosecution.
Buffalo Woman Sentenced for Access Device Fraud and Aggravated I-D TheftRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Teria Baker, also known as Tiara Baker, 25, of Buffalo, NY, who was convicted of conspiracy to commit access device fraud and aggravated identity theft, was sentenced by U.S. District Judge Lawrence J. Vilardo to 34 months in prison. The defendant was also ordered to pay approximately $143,000 in restitution.
Assistant U.S. Attorney MaryEllen Kresse, who handled the case, stated that from October 2013 to December 2013, the defendant and others traveled to Walmart stores and other retail establishments in Western New York where they used unauthorized credit cards. The cards were obtained without the true account holder’s knowledge or authority. Baker and others purchased $500 store gift cards and other merchandise totaling in excess of $160,000.
The sentencing is the result of an investigation by the United States Postal Inspection Service, under the direction of Acting Inspector-in-Charge Raymond Moss of the Boston Division, and the United States Secret Service, under the direction of Special Agent-in-Charge Lewis Robinson.
Broward Resident Sentenced to Forty-One Months in Prison for Stealing Deceased Grandparents’ Social Security FundsRead the Press Release
A Broward County resident was sentenced today to over three years in federal prison for stealing social security benefits, for years following her grandparents’ death.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Margaret Moore-Jackson, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), made the announcement.
Myriam Etienne, 49, of Pompano Beach, was sentenced today, by U.S. District Judge James I. Cohn, to 41 months’ imprisonment, 3 years of supervised release and ordered to pay restitution.
On January 24, 2018, Etienne was convicted by a federal jury of ninety counts of theft of government funds, in violation of Title 18, United States Code, Section 641. According to evidence presented at trial, Etienne received Social Security Supplemental Security Income (“SSI”) benefits for her grandparents since 2004. The SSA administers numerous programs to provide for the material needs of individuals and their families, including SSI. SSI is a federal program that provides assistance to lower income individuals to meet basic food, shelter, medical and clothing needs. Monthly SSI benefits are paid to eligible individuals.
The evidence presented at trial revealed that these benefits were paid to the Etienne’s grandmother and grandfather and the defendant controlled their funds as a representative payee. The SSI funds were direct deposited into a joint bank account the defendant shared with her deceased grandparents. The trial evidence showed that the Etienne’s grandfather died in Haiti, in 2006, and the defendant’s grandmother died in Haiti, in 2009, and that both grandparents left the United States years before their deaths. The defendant, however, kept receiving the SSI benefits and did not report that her grandparents left the United States or subsequently died in Haiti to the SSA.
The evidence further showed that Etienne signed representative payee accounting records, years after her grandparents deaths, verifying that the SSI money was being utilized for her their food, shelter, clothing and medical treatment. After the defendant’s grandmother and grandfather left the country and subsequently died, the defendant received over $160,000 in SSI payments. The evidence at trial further revealed that the defendant utilized these SSI funds, that had been direct deposited into the joint account, to make mortgage payments on her home, to purchase airline tickets and make payments on her BMW X6 sport utility vehicle.
Mr. Greenberg commended the investigative efforts of the SSA-OIG, the U.S. Department of State and the FBI’s Legal Attaché in Port-au-Prince, Haiti. This case was prosecuted by Assistant U.S. Attorney Randy Katz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Boston Man Indicted for Selling Crack Cocaine to Bedford VA Medical Center ResidentsRead the Press Release
BOSTON – A Boston man was indicted today in federal court in Boston for distributing crack cocaine.
Austin Wilkerson, 41, was indicted today on three counts of distributing cocaine base, also known as crack cocaine, on the Veterans Affairs Medical Center campus in Bedford.
According to court documents, in January 2017, a cooperating witness reported to law enforcement that Wilkerson was selling crack cocaine to Michael Sexton, a resident at the Veterans Affairs Medical Center. On July 27, Aug. 10, and Sept. 5, 2017, Wilkerson provided crack cocaine to Sexton, who then sold it to the cooperating witness at the Veterans Affairs Medical Center in Bedford.
Wilkerson faces a sentence of no greater than 20 years in prison, five years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Sean J. Smith, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Shawn Kelly, Chief of Police of the U.S. Department of Veterans Affairs Police Service, Bedford VA Medical Center, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling's Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bossier City man sentenced to 12 months in prison for damaging Air Force property with vehicleRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that a Bossier City man was sentenced Wednesday to a year in prison for driving a vehicle onto Barksdale Air Force Base and damaging property.
Jeffery Jermaine Francis, 35, of Bossier City, La., was sentenced by District Judge S. Maurice Hicks Jr. on one count of willful damage to property of the United States. He was also sentenced to three years of supervised release and ordered to pay $17,600 in restitution to the U.S. Air Force. According to the October 25, 2017, guilty plea, Francis was driving a green 2003 GMC Yukon on August 20, 2017, and struck a bollard at the west gate of Barksdale Air Force Base. When approached and asked to place the vehicle in park, Francis instead drove onto the base. Barksdale security forces deployed a vehicle entrapment barrier on Barksdale Boulevard, which disabled the vehicle. He then fled the scene on foot. Security forces later discovered that the vehicle belonged to Francis’s girlfriend, and that he was driving under suspension. The estimated cost of damage to Barksdale Air Force property is $17,600.
United States Air Force Police Criminal Investigations conducted the investigation. Assistant U.S. Attorney Allison D. Bushnell prosecuted the case.
Blythewood Woman Pleads Guilty to Embezzlement of Government FundsRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Teresa Yarborough-Walker, age 50, of Blythewood, pled guilty to Theft of Government Funds, a violation of Title 18, United States Code, § 641. Judge Mary Geiger Lewis accepted the plea and will sentence Walker at a later date.
Evidence presented at the hearing established that Walker was the human resources supervisor for Genesis Health Care, Inc. Genesis is a non-profit health care center that offers medical services to poor, rural communities. Genesis was funded by the Health Resources Service Administration, an agency within the US Department of Health and Human Services. Many Genesis patients are on Medicare and Medicaid.
Walker embezzled from Genesis by creating fictitious employees and paying them a salary. She then diverted those salaries to herself. She modified the payroll software to prevent reports from going to management that would have revealed the scheme.
Walker stole approximately $416,257.00.
The maximum penalty faced by Walker is imprisonment for ten years, with a potential fine up to $250,000.
The Federal Bureau of Investigation and Internal Revenue Service investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
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Bakersfield Trucking School Owner and Former DMV Employee Charged with Scheme to Fraudulently Issue California Driver’s LicensesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 13-count indictment on March 29, 2018, against Bikramjit Singh Pannu, aka Victor, 47, and Ulises Pena, 35, both of Bakersfield, charging them with criminal conspiracy, one count each of bribery concerning programs receiving federal funds, five counts of unlawful production of an identification document and five counts of unlawful transfer of an identification document, U.S. Attorney McGregor W. Scott announced today.
Pannu was arrested today and is scheduled to make his initial appearance in federal court at 2:30 p.m. today in Bakersfield before U.S. Magistrate Judge Jennifer Thurston. Pena made his initial appearance before Judge Thurston on April 4, 2018.
According to court documents, Pannu operated Skyway Truck Driving School in Bakersfield that ostensibly provided training to those seeking to obtain driver licenses. When a student could not pass the required DMV license written examinations, Pannu offered to assist them, in return for money, to have his co-defendant Pena, who was employed at a DMV field office in Bakersfield, access DMV records and alter them to show that the individual had passed DMV written examinations even though they had not. The DMV would then mail the student an officially issued California Driver License.
The scheme between Pannu and Pena continued from approximately January 2015 through August 25, 2016. In addition to the charged conspiracy and the bribery charges, the indictment also charges the unlawful production and transfer of five specific commercial Class A California driver’s licenses.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Department of Motor Vehicles, Investigations Division, Internal Affairs. Assistant U.S. Attorneys Henry Z. Carbajal III and David L. Gappa are prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of five years in prison and a $250,000 fine for the conspiracy charge, a maximum statutory penalty of 10 years in prison and a $250,000 fine for the bribery charge, and a maximum statutory penalty of 15 years in prison and a $250,000 fine for each charge of unlawful production and transfer of identification documents. 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Alleged Gang Member Pleads Guilty to Dealing FirearmsRead the Press Release
BOSTON – An alleged member of the Latin Gangsta’ Disciples gang pleaded guilty yesterday to federal firearms trafficking.
Eric Valentin, a/k/a “Jefe,” 22, of Nashua, N.H., pleaded guilty to dealing firearms without a license and conspiracy to deal firearms without a license. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for June 20, 2018. In February 2018, Valentin was charged along with co-defendants Jose Ilarraza, a/k/a “Kae-Kae,” 26, of Newburyport, and Bryan Torres-Almanzar, a/k/a “Flex,” 19, also of Nashua, N.H.
According to court documents, in September 2017, Ilarazza approached an individual, who was working as a cooperating witness for federal investigators, after Ilarazza learned that the cooperator was interested in obtaining firearms from the Dominican Republic. Ilarraza, who was incarcerated at the time at the Essex County Jail following a conviction for breaking and entering and resisting arrest, instructed the cooperating witness to contact Torres-Almanzar, who was allegedly heavily involved in firearms trafficking.
Federal investigators used this information and worked with another cooperating witness to purchase firearms from Torres-Almanzar and his “partner,” Valentin, on six occasions between Sept. 12, 2017, and Oct. 19, 2017. For example, on Sept. 14, 2017, the cooperating witness arranged to purchase a 9mm semiautomatic pistol with a laser sight and an extended magazine for $1,000 from Torres-Almanzar and Valentin. During the sale, Torres-Almanzar and Valentin talked about future gun purchases and told the cooperating witness that “we do business and will take care of you.” They also said that they were in the business of “growing our organization” and that it was a “good thing that he [Ilarraza] introduced us.” During the course of the investigation, the cooperating witness purchased 11 firearms and 200 rounds of ammunition from Torres-Almanzar and Valentin.
Torres-Almanzar pleaded guilty on March 23, 2018, and is scheduled to be sentenced on June 19, 2018. Ilarraza has pleaded not guilty.
The charges of dealing in firearms without a license and conspiracy each provide for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Lawrence Police Chief Roy P. Vasque; Essex County Sheriff Kevin F. Coppinger; Essex County District Attorney Jonathan W. Blodgett; Lowell Police Chief William Taylor; and Nashua (N.H.) Police Chief Andrew J. Lavoie made the announcement today.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Alabama Woman Indicted for Filing False Tax Returns and Stealing from Her EmployerRead the Press Release
WASHINGTON - A federal grand jury in Montgomery, Alabama, has returned an indictment, which was unsealed today, charging a woman with filing false tax returns and wire fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Louis V. Franklin, Sr. for the Middle District of Alabama.
According to the indictment, from February 2007 through May 2014, Alita Baker Edeker of Valley, Alabama stole over $500,000 of her employer’s funds for her own personal benefit and the benefit of others, by directing customer payments to debit and credit cards she controlled. The indictment further alleges that Edeker made false statements and representations in the company’s books and records in order to conceal her misappropriation. After misappropriating the funds, the indictment further alleges that Edeker willfully filed false U.S. individual income tax returns for tax years 2011, 2012, and 2013 that did not report the money.
If convicted Edeker faces a statutory maximum sentence of 20 years in prison for each wire fraud count and three years in prison for each count of filing a false tax return. Edeker also faces a period of supervised release, restitution and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Franklin commended special agents of IRS Criminal Investigation and the Auburn, Alabama Police Department, who investigated the case, and Tax Division Trial Attorney Grace Albinson and Assistant U.S. Attorney Ben Baxley, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Akron man faces at least 20 years in prison after jury convicts him of selling fentanyl that killed Akron womanRead the Press Release
A jury convicted an Akron man of selling fentanyl that caused the death of an Akron woman, U.S. Attorney Justin E. Herdman said.
Jurmaine A. Jeffries, 29, was convicted of distribution of fentanyl and possession with intent to distribute fentanyl following a two-week trial. The jury found Jeffries sold the fentanyl that resulted in the death of an Akron woman on Sept. 16, 2015 inside a home on Goodyear Avenue.
Testimony and evidence presented at trial showed the woman called and texted Jeffries repeatedly on the day she died asking to buy heroin. He replied “B right there” and records from cell phone towers put Jeffries near the woman’s house on the day she died.
After she was found dead, Akron police detectives posed as the woman and texted Jeffries from her phone, asking for more drugs. Jeffries again replied that he would be right there. Police arrested him when he arrived and found him with 38 grams of fentanyl, according to trial testimony and evidence.
Jeffries will be sentenced later this year. He faces a mandatory minimum sentence of 20 years in prison.
“We will prosecute those who sell fentanyl and other drugs that kill our friends and neighbors,” Herdman said. “This defendant drove around Akron delivering poison for profit. The Akron Police Department and all our law enforcement partners did a tremendous job bringing this man to justice.”
This case is being prosecuted by Assistant U.S. Attorneys Teresa Riley and Megan Miller following an investigation by the Akron Police Department and Drug Enforcement Administration.
40-Count Indictment Charges RI Man in International Telemarketing SchemeRead the Press Release
PROVIDENCE, RI – A federal grand jury in Providence, RI, today returned a forty-count indictment charging a Pawtucket, RI, man who is among more than 250 defendants from around the globe named in criminal, civil and forfeiture fraud cases brought by federal and state law enforcement against individuals and organizations that allegedly victimized more than a million Americans, most of whom are elderly.
In February, Attorney General Jeff Sessions announced the largest coordinated sweep of elder fraud cases in history. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused losses of more than half a billion dollars.
Among those charged at the time by way of a federal criminal complaint was Shawn Whitfield, 47, of Pawtucket. Today, a federal grand jury returned an indictment charging Whitfield with one count of conspiracy, ten counts of mail fraud, and twenty-nine counts of wire fraud.
Whitfield’s indictment is announced by United States Attorney Stephen G. Dambruch and Raymond D. Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service (USPIS), Boston Division.
It is alleged that Whitfield participated in a telemarketing lottery scam originating out of Jamaica that targeted United States residents, many of them seniors. The victims were led to believe that they had won a lottery. However, they were told that the cash or prizes they purportedly won would not be released without upfront payment of taxes or fees.
It is alleged that between July 2015 and January 2018, Whitfield collected an estimated $101,541 in payments from at least 47 individuals from 23 states who fell victim to the lottery telemarketing scam. It is alleged that the majority of funds collected by Whitfield were transferred electronically to co-conspirators or others at their direction.
It is alleged that in order to facilitate the scheme, individuals were contacted via telephone and told of their purported winnings. They were instructed to send upfront payments for taxes and fees to Shawn Whitfield at his Pawtucket, R.I., residence. An investigation by the U.S. Postal Inspection Service and the U.S. Attorney’s Office determined that Whitfield collected an estimated $101,541 most of which was later transferred electronically by Whitfield to co-conspirators or others at their direction.
USPIS agents, assisted by members of the Pawtucket Police Department, Rhode Island State Police and the U.S. Marshals Service, executed a court-authorized search of Whitfield’s residence on February 20, 2018. Simultaneously, Whitfield was arrested at his place of employment in Norwood, Mass., by USPIS agents, with the assistance of members of the Norwood Police Department.
An indictment is merely an allegation 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.
Whitfield is being prosecuted by Assistant U.S. Attorney Denise M. Barton, Elder Justice Coordinator for the United States Attorney’s Office for the District of Rhode Island.
If you are a victim or know a victim of elder fraud, you can call 1-877-FTC-HELP or go to ftc.gov/complaint. For downloadable Elder Abuse Prevention resources and for information about community outreach programs in Rhode Island, visit the United States Attorney’s Office’s Elder Justice Initiative web page at https://www.justice.gov/usao-ri/elder-justice
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Wednesday 4 April 2018
Worcester Man Pleads Guilty to Federal Sex Trafficking OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MOHAMED H. ABDI, also known as “Vic,” 25, of Worcester, Massachusetts, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of conspiracy to commit sex trafficking by force, fraud or coercion.
According to court documents and statements made in court, between late December 2016 and January 5, 2017, ABDI and his girlfriend used threats of force and coercion to cause a female victim to engage in prostitution. ABDI and his girlfriend advertised the victim’s prostitution services on Backpage.com and other websites, rented Connecticut hotel rooms where the victim engaged in prostitution, and transported the victim to engage in sexual acts with customers at the hotels and private residences in Connecticut and elsewhere. In addition, ABDI provided the victim with heroin, but withheld the drug from the victim until after she provided sexual services to additional customers. ABDI and his girlfriend also made threats against the victim and her child if the victim reported them to law enforcement.
Judge Arterton scheduled sentencing for June 27, 2018, at which time ABDI faces a maximum term of imprisonment of life.
ABDI has been detained since his arrest on related state charges on January 5, 2017.
This matter is being investigated by the Connecticut Human Trafficking Task Force, Federal Bureau of Investigation and Connecticut State Police, with the assistance of the Wethersfield Police Department and the Worcester Police Department. The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
U.S. Attorney Durham thanked the State’s Attorney for the Judicial District of Tolland and the Worcester County District Attorney’s Office for their cooperation and assistance in the prosecution of this matter.
With tax filing deadline on the way, beware of scamsRead the Press Release
ATLANTA - The deadline for individuals to file their tax returns is quickly approaching. Most will file their taxes and await their refund with no issues or concerns. However, some may encounter an unexpected impediment – an unscrupulous return preparer who took advantage of them, or their identity was stolen and a tax refund has already been claimed in their name by a thief.
“Unfortunately, criminals use tax season to prey on unsuspecting taxpayers,” said U.S. Attorney Byung J. “BJay” Pak. “Remember to be diligent in your tax preparation and beware of offers that sound too good to be true.”
“With the April 17th tax deadline forthcoming, it is important for people to have confidence that when they pay and file their taxes, their fellow Americans are doing the same,” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation. “During these times, every citizen and taxpayer must stay vigilant and aware of the various tax schemes being perpetrated in order to safeguard their identities from being compromised.”
The U.S Attorney’s Office for the Northern District of Georgia, along with IRS-Criminal Investigations and other law enforcement partners, is actively engaged in combating tax preparing cheats and identity thieves. The following cases highlight some of the work done by the U.S. Attorney’s Office and its law enforcement partners over the past year relating to tax fraud.
Anthony Adewale Oloko and Temilola M. Brown
Anthony Adewale Oloko used stolen taxpayer personally identifiable information (PII) to file fraudulent tax returns with the IRS and then directed the tax refunds into fraudulently opened bank accounts. Between February 2014 and February 2017, Oloko filed 139 fraudulent returns totaling $886,895 in refunds. Of these 139 filed returns, nine refunds were actually issued by the IRS, totaling $27,129. The remainder of the fraudulent returns were successfully flagged by IRS systems.
Temilola M. Brown, who worked with Oloko opened a fraudulent bank account using a false name and identification. The investigation revealed that five fraudulent refunds totaling $37,320 were attempted to be directed into that account, but only one refund in the amount of $9,472 was actually deposited into the account. In addition, surveillance footage revealed Brown withdrawing money from ATMs in Mableton and Cumberland, Georgia.
Anthony Adewale Oloko was sentenced on February 12, 2018, to four years and three months in prison. Temilola M. Brown was sentenced on February 13, 2018, to one year and one day in prison, in connection with a scheme to use stolen taxpayer PII to file fraudulent tax returns with the IRS and then direct the tax refunds into fraudulently opened bank accounts. Both Oloko and Brown had previously pleaded guilty to theft of public money charges, and Oloko also pleaded guilty to one count of aggravated identity theft.
This case was investigated by Treasury Inspector General for Tax Administration (TIGTA), and Assistant U.S. Attorney Michael Herskowitz prosecuted the case.
Leshanda Hunte and Raphael Menard
On February 16, 2018, Leshanda Hunte was convicted by a jury of one count of conspiracy to commit theft of government money and five counts of theft of government money. Hunte's husband, Raphael Menard, was also charged in the case. He pleaded guilty to conspiracy to commit theft of government money in January 2018.
Hunte and Menard operated a tax refund scheme that involved filing false federal tax returns using the names and Social Security numbers of real people, but with false financial information that created the impression that the filer was owed a sizeable refund. The tax victims were elderly, disabled, and in some cases had died before the returns were filed. The IRS then issued tax refunds, every penny of which made its way to four bank accounts opened by Hunte and Menard in Dunwoody, Georgia. Using this scheme, Hunte and Menard stole more than $100,000 in tax refunds in just two months in the fall of 2012, although the evidence at trial established that the tax refund scheme had been operating at least as early as November 2011. The bank account activity showed that Hunte and Menard used the stolen tax refund money to finance their own lifestyle, including expenditures for rent, travel and expensive restaurants.
The tax refund scheme unraveled after astute employees at the bank noticed the suspicious refund activity and froze the Hunte-Menard accounts. When three bankers told Hunte why they froze the accounts, Hunte responded that she was a tax preparer and that the refund checks belonged to her “clients.” The bankers told Hunte that she would have to bring each client into the bank to sign a release before the bank could pay out the money. A few days later Hunte brought a man into the bank whom she presented as a client; in reality, the man was her cousin and roommate. After being deceived, the bank gave Hunte $8,573 in cash. Two days later, Menard went to the bank and tried the same trick. This time, however, a banker noticed that the third party presented a fake ID and she called the Dunwoody Police Department, who arrested Menard and the other man.
Hunte, 34, and Menard, 32, of Marietta, Georgia, will be sentenced before U.S. District Court Judge William S. Duffey, Jr., on May 8, 2018. Hunte and Menard each face a maximum of five years’ imprisonment for their conspiracy convictions. Hunte also faces an additional sentence of up to ten years' imprisonment for each of the five substantive theft convictions.
This case is being investigated by the Internal Revenue Service Criminal Investigation, with valuable assistance from the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Trevor Wilmot and Samir Kaushal are prosecuting the case.
Calvin C. Barnes, Sharon Ceacal, Kenneth Cottrell, Zechariah Daniel, Derrick Lawson, Reynolds Scott III, Anthony Shivers and Calvin C. Williams
Eight members of a large Atlanta-based tax fraud and money laundering conspiracy have been sentenced for their roles in stealing funds from the U.S. Treasury.
In 2009, 2010, 2011 and 2012, members of the conspiracy filed and caused to be filed over 100 fraudulent corporate tax returns, claiming $35 million in refunds for fuel taxes falsely claimed to have been paid on fuel purchased for off-road company vehicles. The IRS actually paid the co-conspirators over $5.6 million from those falsely claimed tax refunds, before those losses were stopped at the time of the first arrest in this investigation in May 2012. The false claims were made in the names of hijacked corporations and shell companies, none of which used off-road vehicles or paid the fuel tax claimed for refund.
Kenneth Cottrell, who has worked as a tax preparer, was personally involved in the preparation of some of the fraudulent returns. Calvin L. Barnes, Sharon Ceacal, Zechariah Daniel, Derrick Lawson, Reynolds Scott III and Calvin C. Williams were primarily involved with negotiating the fraudulently obtained refund checks and distributing the proceeds to coconspirators. Anthony Shivers assisted his brother Charlie Shivers III with whatever needed to be done in the conspiracy.
U.S. District Judge Thomas W. Thrash imposed sentences on the eight defendants, who had all pleaded guilty, as follows:
•Calvin L. Barnes, a/k/a “Big Cal”, 36, of Forest Park, Georgia, was sentenced to one year and one day in prison.
•Sharon Ceacal, 51, of Warner Robins, Georgia, was sentenced on August 2, 2017 to a year and a day in prison.
•Kenneth Cottrell, 33, of Atlanta, Georgia, was sentenced on July 31, 2017 to six months in prison.
•Zechariah Daniel, a/k/a “Zech”, a/k/a “Leroy Harris”, 36, of Atlanta, Georgia, was sentenced on August 2, 2017 to two years, four months in prison.
•Derrick Lawson, 43, of Lithonia, Georgia, was sentenced on August 3, 2017 to one year, six months in prison.
•Reynolds Scott III, 49, of Atlanta, Georgia, was sentenced on August 2, 2017 to four months in prison.
•Anthony Shivers, 47, of Lovejoy, Georgia, was sentenced on May 1, 2017 to three years, five months in prison.
•Calvin C. Williams, a/k/a “Lil’ Cal”, 48, of Smyrna, Georgia, was sentenced on August 2, 2017 to 10 months in prison.
This case was investigated by the IRS Criminal Investigation, the U.S. States Secret Service, and Assistant U.S. Attorney Alana R. Black prosecuted the case.
Jahmir Antoine Robinson
From April 2011 through April 2012, Jahmir Robinson ran a scheme to defraud the United States by filing false federal income tax returns using stolen identities. Robinson obtained personal identity information, including names, Social Security numbers, and dates of birth, of true individuals to file federal tax returns without their authorizations. To circumvent IRS checks and balances, Robinson obtained Employer Identification Numbers (EINs) from the IRS for 17 individual corporations and filed fictitious Forms 944 so that the IRS database would automatically match employer income tax withholdings against the individual returns.
In total, Robinson used the stolen identities and EINs to file 153 fraudulent individual tax returns with the IRS for tax years 2010 and 2011. Robinson caused the IRS to disburse refunds to an account he controlled. As a result of the scheme, Robinson caused a tax loss totaling $409,114.27.
Jahmir Antoine Robinson, 35, of Lithonia, Georgia, was sentenced by U.S. District Judge Leigh Martin May to four years, six months in prison in federal prison, four years of supervised release, and ordered to pay $240,033.33 in restitution. He was convicted on these charges on November 8, 2017, after he pleaded guilty. Robinson was sentenced for running a stolen identity refund fraud (SIRF) scheme after he stole the identities of 153 people, and caused a tax loss of approximately $409,000.
This case was investigated by the IRS Criminal Investigation, and Assistant U.S. Attorney Bernita B. Malloy prosecuted the case.
Kim Earlycutt, Shannon King, and Marcia Farmer
Three defendants, Kim A. Earlycutt, Shannon A. King, and Marcia Farmer, obtained identity documents of foreign nationals and forged foreign identity documents in connection with their work at T&K Tax Services and More, which Earlycutt partially owned. Using these identity documents, the defendants submitted IRS W-7 forms to get individual taxpayer identification numbers (ITINs). The defendants then created false and fraudulent tax claim forms, specifically Forms 1040, or individual income tax returns, using these ITINs. Included with these Forms 1040 were falsified W-2 forms, which had fraudulent employer information, income, withholding amounts, and deduction amounts.
The defendants filed the fraudulent tax returns with the IRS, by mailing them and by using T&K’s electronic filing number. The tax returns all contained requests for refunds which were not actually due. The defendants enriched themselves by retaining a portion of the tax refunds that had been fraudulently obtained, including in some instances the entire refund. In all, they sought refunds in excess of $7 million and actually received over $5 million in fraudulent refunds. They used these fraudulent funds to pay personal expenses, including paying their personal automobile insurance. One defendant, Kim Earlycutt, used the fraudulent funds for gambling.
Kim A. Earlycutt, 54, of Covington, Georgia, was sentenced on August 25, 2017, to nine years in prison and ordered to pay restitution in the amount of $5,222,634.
Shannon A. King, 37, of Lithonia, Georgia, was sentenced on August 24, 2017, to four years, six months in prison and ordered to pay restitution in the amount of $2,596,169.
Marcia Farmer, 51, of Snellville, Georgia, was sentenced on August 29, 2017, to one year, six months in prison to be followed by nine months of home confinement and was ordered to pay restitution in the amount of $3,370,811.
All three were sentenced by U.S. District Judge Leigh Martin May.
This case was investigated by Internal Revenue Service Criminal Investigation, the U.S. Postal Inspection Service, and the U.S. Secret Service.
Assistant U.S. Attorney Christopher J. Huber prosecuted the case.
Shamil Dean
Tax preparer, Shamil Dean was sentenced to two years in prison for her role in stealing fraudulently obtained tax refunds payable to another person. Dean maintained two bank accounts into which she deposited $147,318.64 through electronic deposits and paper U.S. Treasury checks. These funds were fraudulently obtained tax refunds, from returns filed in the names of identity theft victims. Dean transferred or withdrew the proceeds from the fraudulent refunds shortly after depositing them.
On May 3, 2017, U.S. District Judge Leigh Martin May sentenced Dean to two years in prison. Dean was also ordered to pay $110,773.55 in restitution. Dean had pleaded guilty to a single count of aggravated identity theft on February 22, 2017.
The case was investigated by IRS Criminal Investigation, and Assistant U.S. Attorney Alana R. Black and David M. Zisserson and Charles M. Edgar of the Department of Justice, Tax Division prosecuted the case.
Gianna C. Liady
Gianna C. Liady co-owned K-1 Financial, a tax return preparation firm operating in Atlanta, Georgia. In November 2017, Liady pleaded guilty to a one-count Information charging her with assisting in the preparation and filing of a false federal income tax return. Liady prepared and filed false tax returns on behalf of K-1 Financial’s customers causing a tax loss to the United States of approximately $197,506.
U.S. District Court Judge Eleanor L. Ross sentenced Liady to serve one year, three months in prison and to pay restitution in the amount of $197,506.
This case was investigated by IRS Criminal Investigation.
Assistant U.S. Attorney Bernita B. Malloy and Trial Attorney Sean Beaty of the Justice Department’s Tax Division prosecuted the case.
Go to https://www.irs.gov/ and click on 2018 Dirty Dozen for more on tax schemes.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Wheeling man sentenced for firearm chargeRead the Press Release
WHEELING, WEST VIRGINIA – Charles Smith Rippy, Jr., of Wheeling, West Virginia, was sentenced today to 15 months incarceration for a firearm charge, United States Attorney Bill Powell announced.
Rippy, age 63, pled guilty to one count of “Unlawful Possession of Firearm” in January 2018. Rippy, having been convicted of two felonies, admitted to illegally possessing a .22 caliber pistol in Ohio County in April 2017.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives and the Wheeling Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.Wexford Man Failed to Register as a Sex Offender, Fled to Avoid Serving a 10-Year Prison Sentence for Conspiring to Sex Traffic a MinorRead the Press Release
PITTSBURGH, PA - A former resident of Allegheny County, Pennsylvania has pleaded guilty in federal court to charges of failure of to register as a sex offender and failure to surrender for service of sentence, United States Attorney Scott W. Brady announced today.
Daniel Teed, age 56, of Wexford, PA, pleaded guilty before United States District Judge Arthur J. Schwab.
According to information presented to the Court, from October 23, 2017, and continuing until February 13, 2018, Teed, who was required to register under the Sex Offender Registration and Notification Act after having been convicted of Conspiracy to Commit Sex Trafficking of Children on June 14, 2017, knowingly failed to register, as required by the SORNA. In addition, Teed, after having been released, while awaiting his surrender for service of sentence after conviction, and having been directed by the Court to surrender for service of sentence to the Federal Correctional Institution (FCI) Loretto in Western Pennsylvania on January 2, 2018, knowingly and willfully failed to surrender as ordered by the Court.
Teed was arrested on February 12 in Flagstaff, Ariz., following a nationwide manhunt led by the U.S. Marshals Service. Teed, a convicted sex offender, was wanted for failing to surrender to serve a 10-year prison term. Deputy Marshals were dispatched to multiple states and eventually developed information that Teed had traveled to Flagstaff. Investigation revealed that Teed was employing an alias and had disguised his appearance to avoid capture.
United States District Judge Schwab scheduled sentencing for September 13, 2018. The law provides for a maximum total sentence of 20 years imprisonment, fine of $500,000.00, a term of supervised release for no more than three years, or any or all of the above. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The United States Marshals Service and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Teed.
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.
West Haven Woman Sentenced to 5 Years in Federal Prison for Robbing 3 BanksRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that COURTNEY WORTHINGTON, 31, of West Haven, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 60 months of imprisonment, followed by three years of supervised release, for robbing three Connecticut banks.
According to court documents and statements made in court, WORTHINGTON robbed the TD Bank at 636 Campbell Avenue in West Haven on December 19, 2016; the Peoples Bank at 198 Amity Street in Woodbridge on January 2, 2017, and the TD Bank at 184 Route 81 in Killingworth on January 5, 2017. During each robbery, WORTHINGTON handed the teller a note containing threats and demanding money.
WORTHINGTON was arrested on January 5, 2017, at a hotel in East Haven. On July 12, 2017, she pleaded guilty to one count of bank robbery. She has been detained since her arrest.
This investigation was conducted by the Federal Bureau of Investigation, Connecticut State Police, West Haven Police Department and Woodbridge Police Department. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Waterbury Man Pleads Guilty to Distributing Heroin to Danbury Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANDRE REED, 25, of Waterbury, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of distribution of heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on March 1, 2016, at approximately 11:39 p.m., Danbury Police responded to a service station on the report of a woman in medical distress in a restroom. At the location, officers observed the victim on her knees, with her face on the floor, taking a deep gasping breath every 20 seconds. The victim also was holding a syringe. The victim was transported to the hospital, where she was placed on life support. She has since recovered from the overdose.
The investigation revealed that REED supplied heroin to another individual who then sold it to the victim.
Judge Meyer scheduled sentencing for July 18, 2018, at which time REED faces a maximum term of imprisonment of 20 years. REED is detained pending sentencing.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force and the Torrington, Danbury and Wilton Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
U.S. Attorney Commemorates National Crime Victims’ Rights Week, April 8-14Read the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that in commemoration of National Crime Victims’ Rights Week (NCVRW), April 8-14, 2018, the U.S. Attorney’s Office (USAO) and the Westbrook Police Department (WPD) are hosting a presentation by L.Y. Marlow to raise awareness about crime victims’ issues and rights and the need for support and services for victims of crime. The presentation will take place on April 18th at 9:00 a.m. at the Westbrook Performing Arts Center, in Westbrook, Maine.
Ms. Marlow is an author, a speaker and the founder of Saving Promise, a national domestic violence prevention organization. Ms. Marlow will share her personal story, which includes a family legacy of more than four generations of domestic violence, to address what she believes is a global health crisis – intimate partner violence.
The Office for Victims of Crime (OVC) of the U.S. Department of Justice (DOJ) leads communities throughout the country in their annual observances of NCVRW by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. This year’s theme --Expand the Circle: Reach All Victims -- highlights how the investment of communities in crime victims expands the opportunity for victims to disclose their victimization, connect with services, and receive the support they need. The theme also acknowledges the many barriers facing victims of crime especially those with disabilities, LGBTQ victims, older adults, those with limited English proficiency, American Indians and Alaska Natives, and others from historically marginalized communities.
OVC and the USAO encourage widespread participation in the week’s events and in other victim-related observances throughout the year. DOJ will host OVC’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C., on April 13, 2018, to honor outstanding individuals and programs that serve victims of crime. For additional information about this year’s National Crime Victims’ Rights Week and how to assist victims in your community, visit OVC’s website at www.ovc.gov.
Two More Sentenced for Large-Scale Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Two more members of a large-scale conspiracy to distribute methamphetamine in Greene County, Mo., were sentenced in federal court today.
Eduardo Diaz, 53, of Las Vegas, Nev., and Amber Vantuyl, 36, of Springfield, Mo., were sentenced by U.S. District Judge M. Douglas Harpool. Diaz was sentenced to 12 years in federal prison without parole. Vantuyl was sentenced to seven years and 10 months in federal prison without parole.
Both Diaz and Vantuyl pleaded guilty participating in a conspiracy to distribute methamphetamine. In total, the quantity of pure methamphetamine involved in the conspiracy, which lasted from October 2013 to Feb. 29, 2016, weighed in excess of 4.5 kilograms. The methamphetamine distributed during the conspiracy, according to court documents, primarily originated from Mexico and was smuggled to Missouri.
According to court documents, a steady stream of purchasers came to the home of the conspiracy’s leader, Patrick R. Brigaudin, 55, of Springfield, to purchase methamphetamine from him, or to deliver methamphetamine to him. On Feb. 29, 2016, Diaz transported approximately 12 pounds (5.4 kilograms) of methamphetamine and six pounds of heroin to Brigaudin’s residence. When he arrived in Missouri, Diaz picked up co-defendant Adrian Ortiz-Corrales, 43, also of Las Vegas, and they traveled together to Brigaudin’s residence to deliver the methamphetamine and heroin. While they were removing the methamphetamine from a vehicle, they and Brigaudin were arrested.
Vantuyl admitted that she possessed methamphetamine, which she had obtained from Brigaudin, and some or all of which she intended to distribute to another person.
Brigaudin was sentenced on March 21, 2018, to 30 years in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy and to a related money-laundering conspiracy. Ortiz-Corrales also pleaded guilty to the drug-trafficking conspiracy and is scheduled to be sentenced on Tuesday, April 10, 2018.
Seven defendants have been sentenced in this case. Richard Todd Sherwood, 59, of Willard, Mo., was sentenced on March 27, 2018, to eight years and 10 months in federal prison without parole. Jennifer Minor, 42, of Springfield, was sentenced on March 14, 2018, to seven years and 10 months in federal prison without parole. William Frank Eft, 67, of Springfield was sentenced on March 21, 2018, to six years in federal prison without parole. Co-defendant Gayla Rochelle Phillips, 42, of Willard, Mo., was sentenced on March 21, 2018, to three years in federal prison without parole.
Eight co-defendants have pleaded guilty and await sentencing.
This case is being prosecuted by United States Attorney Timothy A. Garrison and Supervisory Assistant U.S. Attorney Randall Eggert. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the Ozark, Mo., Police Department, the Greene County, Mo., Sheriff’s Department, COMET (the Combined Ozarks Multijurisdictional Enforcement Team) and the South Central Drug Task Force.
Two Maryland men admit to firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two men from Federalsburg, Maryland, have admitted to a their roles in a conspiracy involving the sale and transfer of firearms, United States Attorney Bill Powell announced.
Thorn Ashton Guessford, age 26, and Stephen Clark Krieger, age 66, each pled guilty to one count of “Conspiracy.” They admitted to being a part of a conspiracy to transfer and sell firearms across state lines from May until July 2017 in Berkeley County, West Virginia and elsewhere.
Guessford and Krieger each face up to five years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Paul T. Camilletti is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
The United States and Missouri Reach Agreement with Doe Run Resources Corporation on Cleanup of More Than 4,000 Lead-Contaminated Residential Yards in MissouriRead the Press Release
The United States, together with the State of Missouri, announced a consent decree today that requires the Doe Run Resources Corporation (Doe Run) to clean up more than 4,000 lead-contaminated residential properties near the Big River Mine Tailings Site in St. Francois County, Missouri. The consent decree is subject to a 30-day public comment period.
According to the settlement terms, Doe Run is required to excavate lead contaminated soil on approximately 4,100 affected residential properties, and to perform additional cleanup at the Hayden Creek mine waste area.
“Under today’s action by DOJ, EPA, and the State of Missouri, Doe Run has agreed to take significant actions to address lead contamination at thousands of residential properties in St. Francois County,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “Part of the ‘Old Lead Belt,’ this area is in the midst of one of the largest former lead mining districts in the world. Timely action to clean up these contaminated areas is vital to the surrounding communities.”
“Protecting our communities from the toxic effects of lead is one of Administrator Pruitt’s top priorities,” EPA Region 7 Administrator Jim Gulliford said. “I am pleased that this agreement will result in the cleanup of more than 4,000 residential properties, helping to protect the residents of St. Francois County.”
Historical mining activities in St. Francois County released hazardous heavy metals, including lead, cadmium, and zinc, onto residential properties. This settlement is a mixed funding arrangement where EPA will contribute up to $31.54 million toward the cleanup, which is estimated to cost a total of $111 million.
Lead exposure can cause a range of adverse health effects, from behavioral disorders and learning disabilities to seizures and death, putting young children at the greatest risk because their nervous systems are still developing. During the 2013 to 2016 period, there were approximately 200,000 children across the nation ages 1-5 years with elevated blood lead levels above 5 micrograms per deciliter, the reference level that the Centers for Disease Control and Prevention uses to identify children with blood lead levels that are much higher than most children’s levels and who require case management.
In the three zip codes comprising the majority of the Big River Mine Tailings Site, between 9.3 percent and 16.7 percent of children have an elevated blood lead level above 5 micrograms per deciliter.
Reducing childhood lead exposure and addressing associated health impacts is a top priority for the Trump Administration and EPA. On February 15, EPA Administrator Scott Pruitt hosted key members of the Trump Administration to collaborate on a federal strategy making childhood lead exposure a priority for their respective departments and agencies.
Through the Superfund Task Force he established in May 2017, Administrator Pruitt is also revitalizing EPA’s Superfund Program to prioritize and take action to expeditiously establish control over any Superfund site where the risk of human exposure is not fully controlled. The cleanup of these residential properties reflects EPA’s commitment to reduce human exposure, especially children’s exposure, to hazardous substances.
The consent decree was lodged in the U.S. District Court for the Eastern District of Missouri. Notice of the lodging of the consent decree will appear in the Federal Register allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. The consent decree will available for viewing at www.justice.gov/enrd/Consent_Decrees.html.
Texas Businessman Pleads Guilty to Participating in Multi-Million Dollar Fraud Scheme that Exploited Big Crow Program Office at Kirtland Air Force BaseRead the Press Release
ALBUQUERQUE – Jose Diaz, 58, a businessman from El Paso, Texas, pleaded guilty today in federal court in Albuquerque, N.M., to participating in a fraudulent scheme to defraud the United States out of millions of dollars through contracts involving the now defunct Big Crow Program Office at Kirtland Air Force Base in Bernalillo County, N.M.
Diaz entered his guilty plea to three counts, a conspiracy charge and two fraud charges, of the 46-count Indictment in which he is charged. Diaz’ plea agreement, attached to this press release, includes a nine and a half page admission of facts in which he acknowledges and accepts responsibility for the criminal conduct attributed to him in the indictment.
Diaz remains on conditions of release pending his sentencing hearing, which has yet to be scheduled. His sentencing exposure on the charges to which he pleaded guilty, is discussed below. Under the terms of the plea agreement, the United States will move to dismiss the remaining charges against Diaz after his sentencing hearing.
Summary of the Indictment
Diaz and three co-defendants, Milton Boutte, 72, of Moriarty, N.M., George Lowe, 56, of Fort Washington, Md., and Arturo Vargas, 55, of El Paso, Texas, were indicted in Nov. 2017, in a 46-count indictment charging them with perpetuating a fraudulent scheme to defraud the United States from Oct. 2004 through Feb. 2009, in Bernalillo County, N.M., and elsewhere. The indictment generally alleged that the defendants perpetuated their scheme by submitting fraudulent invoices to federal agencies and fraudulently participating in a government program intended to promote minority-owned small businesses. According to the indictment, beginning in fall 2004, Boutte, who was then the Director of the Big Crow Program Office, and Lowe, a lobbyist, conspired and schemed with Diaz and Vargas, owners of minority-owned small businesses who had contracts with the Big Crow Program Office, to pay lobbyists, consultants and contractors with funds fraudulently obtained from the United States. The defendants allegedly did so even though the Big Crow Program Office was not authorized to lobby or to expend appropriated funds for lobbying activities under the contracts they were operating under.
The indictment alleged that the defendants facilitated their fraudulent scheme by exploiting a U.S. Small Business Administration (SBA) program intended to promote the development of small businesses owned by socially and economically disadvantaged individuals by making them eligible to obtain sole-source contracts from government agencies without competitive bidding. In April 1995, Diaz enrolled his company, Miratek, in the SBA program and in 2004 Miratek received a sole-source contract to provide technical and managerial support for the Big Crow Program Office. After the sole-source contract was awarded to Miratek, the defendants allegedly conspired fraudulently to misapply funds to pay Lowe and other lobbyists for lobbying on Big Crow’s behalf, allegedly diverting at least $529,000 of the contract funds to pay Lowe and his firm, Broadcreek Associates. This allegedly violated the conditions of the SBA program and of Miratek’s contract because lobbying services were not within the authorized scope of work and because Lowe was not an employee of Miratek. In furtherance of their alleged frauds, the defendants allegedly disguised the nature of the claims for services purportedly provided by Lowe and other lobbyists.
The indictment alleged that, in April 2004, after Miratek’s eligibility for the SBA program expired, the defendants created a joint venture to take its place in the fraudulent scheme. According to the indictment, Diaz and Vargas created a joint venture known as Vartek, LLC, to afford Diaz the ability to continue to have access to sole-source contracts under the SBA program and to enable the defendants to continue to perpetuate their scheme to defraud the United States. The indictment alleges the SBA relied on the promises and representations of Diaz and Vargas and approved the Vartek joint venture on Dec. 20, 2005. Vartek was awarded two sole-source contracts, valued at approximately $3,209,116 and $3,847,939, respectively, to provide technical and analytical support for the Big Crow Program Office similar to the contracts previously awarded to Miratek.
The indictment further alleged that Diaz and Vargas misappropriated funds authorized under the Vartek contracts to pay Lowe and other unauthorized lobbyists, consultants and contractors at Boutte’s direction. Diaz and Vargas allegedly submitted fraudulent invoices to the U.S. Army Contracting Agency containing claims for payment for services purportedly provided by Lowe and other lobbyists, consultants and contractors. To conceal and disguise the nature of those payments, the defendants allegedly misrepresented in those invoices that Lowe and other lobbyists, consultants and contractors were Vartek employees. To further disguise the diversion of large sums, the defendants allegedly made fictional claims for work purportedly performed under the contracts by other persons. The defendants allegedly fabricated the hours that those purported employees worked on the contracts. Diaz and Vargas allegedly falsely represented that the lobbyists and consultants were “project managers” and billed the government at or near the highest rate allowed under the contracts. In aggregate, the defendants fraudulently claimed and obtained payments under the Vartek contracts totaling more than $5,800,000 for lobbyists, consultants and unauthorized contractors, of which at least $506,000 was diverted and paid to Lowe and his firm, Broadcreek Associates. Diaz also falsified and fabricated the hours that he himself worked under those contracts.
The indictment includes forfeiture provisions requiring that the defendants forfeit to the United States any property, real or personal, which constitutes or is derived from proceeds of their crime if the defendants are convicted of the offense of conspiracy to commit wire fraud.
Statutory Penalties for Charges in Indictment 17-CR-3338-JB
Count 1 charges Boutte, Diaz, Vargas and Lowe with conspiracy to defraud the United States with respect to claims, in violation of 18 U.S.C. § 286, and carries a maximum penalty of ten years of imprisonment and a fine of not more than $250,000 or twice the pecuniary loss or gain.
Count 2 charges Boutte, Diaz, Vargas and Lowe, with conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and carries a maximum penalty of 20 years of imprisonment and a fine of not more than $250,000 or twice the pecuniary loss or gain.
Counts 3 and 4 charge Boutte, Diaz and Vargas with fraud against the United States, in violation of 18 U.S.C. § 1031, and aiding and abetting such fraud, in violation of 18 U.S.C. § 2. Each charge carries a maximum penalty of 20 years of imprisonment and a fine not more than $5,000,000 if the loss is less than $500,000, but not to exceed $10,000,000 in the aggregate.
Counts 5 through 46 charge certain of the defendants with making false, fictitious and fraudulent claims, in violation of 18 U.S.C. § 287, and aiding and abetting the making of such claims, in violation of 18 U.S.C. § 2. Each charge carries a maximum penalty of five years of imprisonment and a fine of not more than $250,000. Counts 5 through 9 charge Boutte, Diaz and Lowe; Counts 10 through 22 charge Boutte, Diaz, Vargas and Lowe; Counts 23 through 24 charge Boutte, Diaz and Vargas; and Counts 25 through 46 charge Boutte, Diaz and Vargas.
Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case was investigated by the Major Procurement Fraud Unit of the U.S. Army Criminal Investigations Command, Defense Criminal Investigations Services, Defense Contract Audit Agency – Investigative Support, and U.S. Small Business Administration Office – Office of Inspector General, and General Services Administration – Office of Inspector General. Assistant U.S. Attorneys Timothy S. Vasquez and Jeremy Peña are prosecuting the case.
Plea AgreementTahlequah Man Pleads Guilty to Possession of A Counterfeit ObligationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Nicholas Ryan Renfro, age 25, of Tahlequah, Oklahoma, pled guilty to Possession Of A Counterfeit Obligation Of The United States, in violation of Title 18, United States Code, Section 474(a), punishable by not more than 25 years imprisonment, a fine up to $250,000.00 or both.
The Indictment alleged that on or about January 10, 2018, in the Eastern District of Oklahoma, the Defendant, Nicholas Ryan Renfro, did knowingly have in his possession and custody, with intent to sell or otherwise use, a falsely made and counterfeited one-hundred-dollar Federal Reserve Note, Series: 2009A, Serial No. LF255122509J, Quadrant # 4, Face Plate 301, Back Plate 397, Federal Reserve Bank F6, made after the similitude of obligations issued under the authority of the United States.The charges arose from an investigation by the Tahlequah Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Secret Service.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney John David Luton represented the United States.
Sweeping Two-Day Operation Targets International Organized Crime in Sacramento Area NeighborhoodsRead the Press Release
SACRAMENTO, Calif. — Today, U.S. Attorney McGregor W. Scott, FBI Special Agent in Charge Sean Ragan, DEA Special Agent in Charge John J. Martin, Homeland Security Investigations Special Agent in Charge Ryan L. Spradlin, and IRS Criminal Investigation Assistant Special Agent in Charge Cindy Chen announced one of the largest residential forfeiture efforts in the nation’s history in a multi-agency effort to eradicate criminal enterprises operating in neighborhoods throughout the Sacramento region.
“Transnational criminal organizations are a blight on our communities, bringing dangerous drugs to our streets and trying to impose a false sovereignty over our neighborhoods,” Attorney General Sessions said. “The day I was sworn in as Attorney General, President Trump ordered me to make dismantling these organizations a priority, and we are carrying out that order with vigor. Today we take a major step toward that end using civil asset forfeiture, which is a key tool that helps us defund organized crime and weaken the criminals and the cartels. We have searched and filed forfeiture actions against dozens of houses allegedly used for criminal activity by Chinese drug traffickers, making this one of the largest residential forfeiture actions in American history. I want to thank all of our fabulous OCDETF members with the FBI, DEA, the Marshals Service, ICE, the IRS, Homeland Security Investigations, and our state and local partners with the California Highway Patrol, the Sacramento and Placer County Sheriffs’ Offices, and the Elk Grove police. They have helped make Sacramento safer. At the Department of Justice, we will remain focused on carrying out President Trump’s order and keeping dangerous and illegal drugs out of our country.”
“When criminal organizations funded by money from China reach into our cities to profit from illegal activity, our communities suffer,” said U.S. Attorney Scott. “These marijuana grow operations are illegal under federal and state law and are used to distribute marijuana all over the United States. They are a blight on our neighborhoods and create an unsafe environment for the men, women, and children who live there. The scope of this enforcement operation sends a clear message to international organized crime: get out of our neighborhoods. If you don’t, we will pursue you with all of the resources available to the federal government, seize your assets, search your properties, and target you for criminal prosecution. The success of this operation speaks to the effective partnerships across the federal and local law enforcement community and our united commitment to reduce violent crime in our residential neighborhoods by taking them back from criminal organizations with international ties and financing.”
“The FBI is committed to working with its federal, state, and local partners to disrupt and dismantle transnational organized criminal enterprises that place financial gain from their illicit activities ahead of the safety, security, and health of the residential communities they have hidden within,” said Special Agent in Charge Sean Ragan of the Federal Bureau of Investigation Sacramento Field Office. “Our partnerships within the intelligence and law enforcement communities are essential to ensure identification and coordinated investigation of those who threaten our neighborhoods with crimes such as drug trafficking, money laundering and human trafficking.”
“This operation targeted a sophisticated large-scale organized criminal network operating in our backyard,” said DEA Special Agent in Charge John J. Martin. “Individuals looking for opportunity chose the Sacramento region to set up shop and profit. DEA and our law enforcement partners will not stand for this and the message has been sent to those looking to invade our area with similar aspiration – you are not welcome. The citizens of our community deserve safe neighborhoods and we will work every day to ensure it.”
“Homeland Security Investigations has unique investigative authorities and has lent vast resources of specialized teams from across the country for this large-scale joint operation,” said Ryan L. Spradlin, Special Agent in Charge for HSI overseeing Sacramento. “The work on this case highlights our signature transnational investigative authorities and how we are able to help tackle these types of criminal organizations working side-by-side with all of our federal partners to make our communities safer.”
“This was a large-scale operation, with millions of dollars coming into the US from China,” said Cindy Chen, Assistant Special Agent in Charge, IRS Criminal Investigation. “This criminal organization used foreign money to purchase homes and turned them into marijuana grow houses; all at the cost of innocent neighborhoods. We are proud to provide our financial expertise as we work alongside our law enforcement partners to bring criminals to justice.”
On April 3 and 4, 2018, hundreds of federal agents and local law enforcement officers executed search warrants at approximately 74 houses suspected of being used by an international organization for marijuana cultivation, as well as two related business offices. Simultaneously, civil forfeiture actions were filed against more than 100 houses in the Sacramento region suspected of being related to this criminal organization and used as indoor marijuana grows. Some of the houses searched during this operation are subject to the forfeiture action. This represents one of the largest residential forfeiture efforts in the nation’s history.
Since 2014, state and federal law enforcement agencies have been investigating a number of indoor marijuana grows in residential neighborhoods throughout the Sacramento area. Common elements in some of the cases started to emerge: the down payments on the houses were financed by wires mainly from Fujian Province, in China; they used common Sacramento realtors; they used hard-money lenders rather than traditional banks; and they used straw buyers. The houses would then be converted into large-scale marijuana grows that often occupied a substantial portion, if not all, of the house and frequently involved hundreds or thousands of marijuana plants, which were later processed and distributed to other parts of the country, particularly the Eastern United States.
Such large-scale indoor grows violate federal and state law, as well as local codes and ordinances throughout the region. Further investigation found houses in the cities of Sacramento and Elk Grove and the counties of Sacramento, Calaveras, Placer, San Joaquin, El Dorado, Yuba, and Amador. The houses tended to use an extraordinary amount of electricity per month due to high-wattage lighting, circulatory fans, and other equipment, posing fire and environmental hazards; and frequently were left damaged or uninhabitable due to the grow operations. The influx of these marijuana cultivation sites into neighborhoods creates a risk of increased crime in from burglaries, robberies, and related activity. As of this afternoon, agents have seized approximately 61,050 marijuana plants from the houses and approximately 200 kilos of processed marijuana. They have also seized 15 firearms.
This operation was conducted by the Federal Bureau of Investigation, the Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the IRS Criminal Investigation with assistance from the U.S. Marshals Service, the Sacramento County Sheriff’s Office, the Elk Grove Police Department, the California Highway Patrol, the Placer County Sheriff’s Office, and the U.S. Customs and Border Protection Air and Marine Operations.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) effort. The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Swanzey Man Pleads Guilty to Possessing Child PornographyRead the Press Release
CONCORD – David Maclean, 71, of Swanzey, New Hampshire, pleaded guilty in federal court to possessing child pornography, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, the investigation began in July of 2017 with the Maricopa County Sherriff’s Department Cyber Crimes Unit in Phoenix, Arizona. Maclean previously resided in Arizona. In September of 2017, law enforcement officers executed a search warrant at the defendant's residence. A review of various electronic devices found in the residence showed that they contained images and videos of child pornography.
Maclean is scheduled to be sentenced on July 13, 2018.
“Protecting children is a high priority of the U.S. Attorney’s Office and our law enforcement partners,” said U.S. Attorney Murray. “Child pornography crimes cause untold amounts of damage to their young victims. We will continue to work closely with our law enforcement partners to identify and prosecute those who possess, manufacture or distribute child pornography.”
“Homeland Security Investigations (HSI) is dedicated to working together with our law enforcement partners to bring about justice in child exploitation cases like this one,” said Michael Shea, Acting Special Agent in Charge, HSI, Boston. “We will continue to take a coordinated team effort and ensure that child predators, whether they produce or distribute these vile, disturbing images be held accountable for their offenses.”
This matter was investigated in New Hampshire by the Internet Crimes Against Children Task Force and Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Helen White Fitzgibbon.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
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Statement by Attorney General Sessions on National Guard DeploymentRead the Press Release
Attorney General Jeff Sessions issued the following statement on border security:
“Earlier this week, media outlets reported that a so-called ‘migrant caravan’ was making its way through Mexico with the intent of illegally crossing the southern border of the United States. The President was clear that this caravan needed to be stopped before it arrived at our southern border, and his efforts now appear to be successful. But let me be clear as well: we will not accept the lawlessness of these types of efforts and those who choose to violate our laws, and those who conspire to assist others to violate our laws, will face criminal prosecution.
“When I visited Nogales, Arizona, in April 2017, I announced my direction to federal prosecutors to prioritize the prosecution of all illegal entry, illegal reentry, and alien smuggling offenses. We have surged hundreds of immigration judges to our border over the last year. We hired new judges at the fastest pace ever. We added performance metrics to ensure that these cases aren’t languishing in the courts while illegal aliens spend years living in our country without consequences. We will have a more efficient and effective immigration court system that supplies due process. As such, aliens who enter our country illegally should be aware that the government will use any and all lawful tools, including expedited removal and prompt immigration proceedings, to ensure that our immigration courts will not be burdened with cases that lack merit under the law.
“But this will not be enough if Congress does not act to pass clear, fair, and effective legislation that ends the illegality and creates a system that serves the national interest is crucial at this time. It is essential for Congress to act.
“The Department of Justice fully supports the efforts of the Departments of Defense and Homeland Security announced today to secure our border. I will soon be announcing additional Department of Justice initiatives to restore legality to the southern border.”Springfield Family Among Seven Defendants Indicted for Heroin ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man along with his three sons and a daughter, another Springfield resident and a Columbia, Mo., woman have been indicted by a federal grand jury for their roles in a conspiracy to distribute heroin.
Lucian Robinson, also known as “OG,” 60, of Springfield; his three sons, Charles A. Robinson, also known as “Big C,” 37, of Springfield, Corey L. Robinson, also known as “C Money,” 34, address unknown, and Brian M. Robinson, also known as “Bubba,” 34, of Memphis, Tenn.; his daughter, Brandie R. Robinson, also known as “Pooh,” 37, of St. Louis, Mo.; and Cordny D. Adams, 29, of Springfield, and Crystal D. Birdsong, also known as “Crystal D. Brinkley,” 34, of Columbia, Mo., were charged in a 20-count indictment returned under seal by a federal grand jury in Springfield, Mo., on Tuesday, March 27, 2018. That indictment was unsealed and made public upon the arrest and initial court appearance of Lucian Robinson on Tuesday, April 2, 2018.
Each of the seven co-defendants is charged with participating in a conspiracy to distribute one kilogram or more of heroin in Cole, Callaway and Greene Counties from July 1, 2015, to March 27, 2018.
In addition to the drug-trafficking conspiracy, Brandie Robinson is charged with three counts of distributing heroin in Greene County.
Brian Robinson is also charged with three counts of distributing heroin in Greene County and two counts of possessing heroin with the intent to distribute.
Corey Robinson is also charged with one count of distributing heroin in Greene County and two counts of possessing heroin with the intent to distribute in Greene County. Corey Robinson is also charged with one count of being a felon in possession of a firearm. Corey Robinson, who has been convicted of a felony, allegedly was in possession of a Taurus 9mm semi-automatic pistol on March 7, 2017.
Lucian Robinson is also charged with two counts of possessing heroin with the intent to distribute in Greene County. Lucian Robinson and Crystal Birdsong are charged together in one count of possessing heroin with the intent to distribute.
Adams is also charged with two counts of distributing heroin in Greene County and one count of possessing heroin with the intent to distribute in Greene County.
Charles Robinson is also charged with one count of possessing heroin with the intent to distribute in Greene County.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorneys Randall D. Eggert and Michael S. Oliver. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Springfield, Mo., Police Department and the Jefferson City, Mo., Police Department.
South Texas Gang Member Ordered to PrisonRead the Press Release
BROWNSVILLE, Texas – A 29-year-old Brownsville resident has been ordered to prison following his conviction of being a felon in possession of a firearm, announced U.S. Attorney Ryan K. Patrick. Rafael Gandaria pleaded guilty Sept. 20, 2017.
Today, U.S. District Judge Rolando Olvera ordered him to prison for a total of 87 months in prison. At the hearing, the court heard that Gandaria is affiliated with Partido Revolucianario Mexicano, a security threat group in south Texas and Mexico, and that the sentence was necessary to protect the public from Gandaria’s future crimes.
The court also heard additional information regarding Gandaria’s criminal history which was determined to be in the highest criminal category under the U.S. Sentencing Guidelines. His convictions include simple battery in Georgia in 2005, attempted robbery in Brownsville in 2007, assault on a public servant in Brownsville in 2011, assault family violence in Brownsville in 2011, evading arrest in Brownsville in 2011, resisting arrest in 2013 in Florida and possession of a controlled substance in Minnesota in 2014.
As a convicted felon, he is prohibited from possessing a firearm per federal law.
His crimes included violent behavior while being incarcerated for this firearms charge. Judge Olvera also heard argument relating to Gandaria’s violence towards jailers while being detained and his transportation to and from jail for court settings. Judge Olvera noted Gandaria lacked remorse for his actions before handing down the sentence.
Gandaria had posted a rap video on Facebook in which he displayed a Smith & Wesson SD40VE pistol. In November 2016, authorities executed a search warrant at his residence, at which time they located and seized that firearm.
Gandaria will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms & Explosives conducted the investigation. Assistant U.S. Attorney Jason Corley is prosecuting the case.
Six Aliens Indicted on Illegal Reentry ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging ALCIBIADES UVANDO-DE LAO, age 45, of Mexico, DANIEL LUIS PEREZ-FLORES, age 34, of Mexico, ORLANDO ECHEVERRIA-HERNANDEZ, age 40, of El Salvador, SELEDONIO MARTINEZ, age 52, of El Salvador, ALFREDO MENDIOLA-ALVAREZ, age 40, of Mexico, and JESUS CERVANTEZ-RUIZ, age 48, of Guatemala, with Illegal Reentry of a Deported Alien.
If convicted of Illegal Reentry of a Deported Alien, UVANDO-DE LAO, previously deported twice and found in Lenoir County, PEREZ-FLORES, previously deported five times and found in Sampson County, and ECHEVERRIA-HERNANDEZ, previously deported and found in Cumberland County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
MARTINEZ, found in Wake County, is alleged to have been previously deported subsequent to a felony conviction (making a false statement). Therefore, if convicted, he faces a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
MENDIOLA-ALVAREZ, found in Wake County, and CERVANTEZ-RUIZ, found in Bladen County, are alleged to have been previously deported subsequent to aggravated felony convictions. MENDIOLA-ALVAREZ is alleged to have been previously convicted of indecent liberties with a child and illegal reentry subsequent to an aggravated felony conviction. CERVANTEZ-RUIZ is alleged to have been previously convicted of assault with a deadly weapon inflicting serious injury and illegal reentry subsequent to an aggravated felony conviction. Therefore, if convicted, they would face a maximum imprisonment term of 20 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations.
Saratoga Orthopedic Surgeon Sentenced to A Year in Prison for Providing False Billing Statement to Health Care Benefit ProgramRead the Press Release
SAN JOSE- Gregory Belcher was sentenced today to 12 months and a day in prison for making a false statement related to a health care benefits program, announced Acting United States Attorney Alex G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Lucy H. Koh, U.S. District Judge, following an eight-week trial in which Belcher and his wife, Dr. Vilasini Ganesh, were convicted of making false statements to a health care benefit program.
On December 15, 2017, Belcher, 56, and his wife, Ganesh, 47, both of Saratoga, Calif., were convicted of crimes related to making misrepresentations related to health care matters. The evidence at trial demonstrated Belcher submitted a false claim in connection with a billing matter related to the physical therapy practice he conducted from the offices of the Campbell Medical Group in Saratoga, Calif. Evidence also demonstrated Ganesh, Belcher’s wife and office partner, submitted false and fraudulent claims to several health care benefit programs for services that she knew were not properly payable. For example, Ganesh included claims for days when a patient had not been seen by the provider. She also submitted claims for patients who had been seen by another physician provider who no longer was affiliated with her practice.
On July 13, 2017, a federal grand jury indicted the defendants, charging them with one count of conspiracy to commit health care fraud, in violation of 18 U.S.C. § 1349; one count of conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h); multiple counts health care fraud, in violation of 18 U.S.C. § 1347 and 2; and making a false statement relating to health care matters, in violation of 18 U.S.C. § 1035. The jury convicted Belcher of one count of making a false statement relating to health care matters and convicted Ganesh of five counts of health care fraud and five counts of making false statements. The jury acquitted the defendants of the remaining counts.
In addition to the prison term, Judge Koh sentenced Belcher to a 3-year term of supervised release. Belcher will begin serving the sentence June 6, 2018.
Judge Koh scheduled Ganesh’s sentencing hearing for April 25, 2018, at 9:15 a.m., in San Jose.
Assistant U.S. Attorneys Patrick Delahunty and Jeff Nedrow are prosecuting the case with the assistance of Susan Kreider and Nina Burney Williams. The prosecution is the result of an investigation by the FBI.
San Angelo Methamphetamine Trafficker Sentenced to 30 Years in Federal PrisonRead the Press Release
SAN ANGELO, Texas — A San Angelo, Texas, man, Mateo Raymond Flores, III, aka “Lawrence Flores,” “Arturo Flores,” “Rogelio Cadena,” “Gordo,” “Mr. G,” 49, was sentenced last week to 360 months in federal prison by U.S. District Judge Sam R. Cummings, following his guilty plea in November 2017 to an indictment charging one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine. U.S. Attorney Erin Nealy Cox of the Northern District of Texas made the announcement today.
Flores, who was a fugitive on state charges and living in Mexico at the time of indictment, was charged in a July 2017 federal indictment along with codefendants, Romelia Flores, 47, Pablo Cantu Hernandez, 61, Mario Moreno, Jr., 39, and Shelly Brannon Fowler, 51. All defendants pleaded guilty to their roles. Judge Cummings previously sentenced Hernandez to 235 months in federal prison, Moreno to 151 months in federal prison and Fowler to 188 months in federal prison. Romelia Flores is awaiting sentencing.
According to the plea agreement factual resume, Flores was identified as a source of supply of methamphetamine in the San Angelo area. Flores used the residence of Hernandez as a storage location for his methamphetamine.
On April 26, 2016, a state search warrant was executed at the San Angelo residence of Hernandez. Hernandez admitted that he was storing methamphetamine for Flores. Investigators seized approximately 2.89 pounds of methamphetamine. Hernandez stated that he had stored and distributed approximately 150 pounds of methamphetamine for Flores for the past three years at his residence, collected drug proceeds and sent them to Flores in Mexico.
U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Juanita Fielden prosecuted the case.
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Romanian Man Sentenced to Time Served for Illegal Entry into the United StatesRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Novak Ciurar, 30, of Romania, pleaded guilty and was sentenced yesterday in U.S. District Court by Magistrate Judge John C. Nivison to time served (four days) for entering the United States illegally.
Court records reveal that on March 31, 2018, Ciurar entered the United States from Canada in Hodgdon, Maine at a location not designated for entry to the United States. U.S. Border Patrol agents located the defendant shortly after his entry. Ciurar is a citizen of Romania and did not have any immigration documents that would allow him to remain in the United States. Ciurar has now been placed in proceedings to remove him from the United States.
The investigation was conducted by the U.S. Border Patrol which is the mobile, uniformed law enforcement arm of U.S. Customs and Border Protection within the Department of Homeland Security responsible for securing U.S. borders between ports of entry. The U.S. Border Patrol relies on cooperation and assistance from members of the community that live along the border. If you observe suspicious activity in the border area, please do not hesitate to contact the U.S. Border Patrol at (800) 851-USBP; if this activity is in Canada, please call (800) 222-TIPS.
Rochester Attorney Admits to Unlawfully Receiving Retirement BenefitsRead the Press Release
ALBANY, NEW YORK – Diane M. Cecero, age 64, of Pittsford, New York, admitted today to unlawfully “double-dipping” and receiving state retirement benefits to which she was not entitled. She agreed to pay back those benefits, with interest, as part of a pretrial diversion agreement.
The announcement was made by United States Attorney Grant C. Jaquith and New York State Comptroller Thomas P. DiNapoli.
From 1982 to 1996, Cecero was an Assistant Attorney General with the New York State Attorney General’s Office (NYAG). In that job, she earned retirement credits as a participant in the New York State and Local Retirement System (NYSLRS).
In 1996, she left the NYAG to become the Legal and Labor Relations Officer at Monroe Community College (MCC), part of the State University of New York. Cecero eventually became General Counsel of MCC and was employed there until August 2015.
When she left the NYAG, Cecero retained her membership in NYSLRS, but she stopped earning NYSLRS service credit. When she joined MCC, Cecero chose to join the SUNY Optional Retirement Program (SUNY ORP), a public retirement system separate from NYSLRS.
As part of the diversion agreement, Cecero admitted that while employed with MCC, she incorrectly filled out an Application for Service Retirement, dated April 3, 2008, which caused NYSLRS to pay to her approximately $85,000 in retirement benefits to which she was not entitled during the years 2008 through 2014. Cecero also admitted that while drawing retirement benefits from NYSLRS, she also participated in SUNY ORP. As part of the agreement, Cecero did not admit to committing fraud or to any criminal conduct.
United States Attorney Grant C. Jaquith said: “Thanks to the thorough investigation by the Comptroller’s Division of Investigations, improper retirement benefits are being repaid with interest. We are committed to continued work with the Office of the Comptroller to safeguard the public fisc and use all appropriate means to secure restitution and individual accountability for violations of law.”
State Comptroller Thomas P. DiNapoli said: “For the six years Ms. Cecero was general counsel to Monroe Community College, she unlawfully took $85,000 in state pension benefits on top of her six-figure salary. As a result of our investigation, she must repay the money with interest. I thank United States Attorney Jaquith for prosecuting this case.”
The practice of drawing retirement benefits while remaining a public employee is informally known as “double-dipping,” and is prohibited under state law with few exceptions, none of which applied to Cecero. Additionally, while she was improperly receiving retirement benefits from NYSLRS, Cecero unlawfully participated in a second retirement plan, SUNY ORP, to which her then-employer MCC contributed more than $100,000 for her benefit.
Today, the United States Attorney’s Office filed a wire fraud charge against Cecero. As part of the pretrial diversion agreement, it agreed that it would dismiss the charge if, within 18 months, Cecero paid total restitution of $156,918.20: $116,918.20 to NYSLRS and an additional $40,000 to MCC.
This case was investigated by the Office of the State Comptroller’s Division of Investigations, and was prosecuted by Assistant U.S. Attorneys Michael Barnett and Cyrus P.W. Rieck.
Richland County Man Indicted on Methamphetmine-Related ChargeRead the Press Release
A Richland County, Illinois man was indicted on April 3, 2018, on a methamphetamine- related charge, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today. Justin R. Mason, age 35, of Olney, Illinois was the only defendant named in the one-count Indictment, which charges that from August 2017, until on or about March 7, 2018, in Richland County, and elsewhere, Mason conspired with others to knowingly and intentionally distribute methamphetamine. The Indictment further alleges that the conspiracy involved fifty (50) grams or more of methamphetamine (Ice), or five hundred (500) grams or more of a mixture and substance containing methamphetamine.
If convicted of the charge, Mason faces 10 years to life imprisonment, up to a $10,000,000 fine, and supervised release of not less than 5 years.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Richland County Sheriff’s Office.
Rhode Island Man Sentenced for Armed Bank RobberyRead the Press Release
BOSTON - A Rhode Island man was sentenced today in federal court in Boston for armed bank robbery.
Michael A. Dirocco, 35, was sentenced by U.S. District Court Judge Douglas P. Woodlock to 77 months in prison and five years of supervised release. In November 2017, Dirocco pleaded guilty to one count of armed bank robbery.
On Nov. 14, 2014, two men entered a branch of the Webster Bank in Seekonk, Mass. One of the men vaulted over the teller’s counter and started taking money from the drawers. The other man brandished what appeared to be a black semi-automatic handgun and pointed it at the tellers. The two then fled the scene in a large black SUV with $10,065 in stolen cash.
A short time later, an individual in Rhode Island observed two men removing license plates from a large black SUV and exchanging them with Rhode Island plates. The individual was able to record the Rhode Island license plate numbers and provide them to law enforcement officers. The officers then spoke to the registered owner of the vehicle with Rhode Island license plates and determined that the owner’s son, Dirocco, was operating her vehicle.
When officers in Rhode Island later located the black SUV, Dirocco was no longer the operator; he was now using a green pickup truck, which was later observed heading in their direction. Upon seeing police, the truck’s driver, later confirmed to be Dirocco, stopped the vehicle, made an abrupt U-turn, and sped off, resulting in an extended car chase that culminated with Dirocco crashing the vehicle into a tree. Dirocco matched the description of the gun wielding bank robber and was subsequently arrested. In September 2016, Dirocco was charged in federal court in Boston and has been detained since.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Bristol County District Attorney Thomas M. Quinn made the announcement today. The Rhode Island State Police and Burrillville, R.I., Cranston, R.I., Pawtucket, R.I., and Seekonk, Mass., Police Departments provided valuable assistance. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Repeat Sex Offender Indicted on Charges of Receipt and Possession of Child PornographyRead the Press Release
SPRINGFIELD, Ill. – A federal grand jury has charged Taylor Vanderploeg, 20, of the 700 block of West California, Urbana, Ill., with receipt and possession of child pornography. The two-count indictment, returned today, alleges that on or about Dec. 24, 2017, Vanderploeg received visual depictions of minors engaged in sexually explicit conduct. The indictment also alleges that on March 2, 2018, Vanderploeg possessed mobile devices and other digital storage material containing child pornography.
On March 28, 2018, Vanderploeg was arrested and charged in a criminal complaint. During a court appearance on March 28, before U.S. Magistrate Judge Eric I. Long, in Urbana, Vanderploeg was ordered detained in the custody of the U.S. Marshals Service.
According to the affidavit filed in support of the complaint, at the time of the alleged offenses, Vanderploeg was on probation for a September 2017 conviction for possession of child pornography in Iroquois county, Ill., and is also a registered sex offender.
If convicted, the statutory maximum penalty for receipt of child pornography, as a repeat offender, is 40 years in prison; the maximum penalty for possession of child pornography is 20 years in prison. Both charges carry fines of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson. The charges are the result of an investigation by the Champaign Police Department and the Champaign County Probation Office.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Portsmouth Heroin Dealer Sentenced to 25 YearsRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to 25 years in prison for drug distribution and possession of multiple firearms.
According to court records and evidence presented at trial, Benitez Auguarius Moody, 35, distributed crack cocaine, heroin, and fentanyl in Portsmouth from the summer of 2015 through March 2016. Moody was arrested on Aug. 10, 2016, after the Portsmouth Police Department conducted a series of controlled buys of heroin with Moody and executed a search warrant at his residence. During the search, law enforcement recovered 97 grams of crack cocaine, two grams of heroin and fentanyl mixture, four firearms (two special revolvers and two semi-automatic pistols), and $4,000 in cash.
Moody was convicted by a federal jury on April 28, 2017, of possession with intent to distribute cocaine base, heroin, and fentanyl; possession of a firearm in furtherance of drug trafficking; and possession of a firearm by a convicted felon.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Tonya D. Chapman, Chief of Portsmouth Police, made the announcement after sentencing by Senior U.S. District Judge Henry Coke Morgan, Jr. Assistant U.S. Attorney Sherrie Capotosto prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-124.
Portland Woman Given 15 Months in Prison for Tax EvasionRead the Press Release
PORTLAND, Ore. – Anna Ngo, 57, of Portland, was sentenced today to 15 months in prison and ordered to pay nearly $500,000 in restitution for a tax evasion scheme involving two local businesses. Ngo previously pleaded guilty to one count of tax evasion in violation of 26 U.S.C. §7201 on December 14, 2017.
“As a business owner, Ms. Ngo had a legal obligation to pay her fair share of taxes and she failed to do so,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Tax evasion is a serious crime that victimizes all Americans. The U.S. Attorney’s Office will continue to pursue similar prosecutions in an effort to preserve the fairness and integrity of our tax system.”
“With the April 17th tax deadline looming, it is important for people to have confidence that when they pay their taxes, their neighbors and co-workers are doing the same,” said Troy A. Burrus, Acting Special Agent in Charge of the IRS Seattle Field Office.
According to court documents, Ngo evaded payment of her tax liabilities in 2004, 2005, 2007 and 2008 by placing two of her businesses, Hot Rocks Beauty Salon and Beyond Hair Nails Spa, in the names of nominees with the cooperation of her niece. Ngo told the IRS she did not own the businesses. Additionally, Ngo filed fraudulent income tax returns upon which she failed to report income from the two businesses.
An investigation revealed that Ngo evaded payment of her outstanding tax liability. Her evasion included “quitclaiming,” or relinquishing ownership of rental property she owned to her son shortly before federal income tax liens were filed in 2011. Investigators also found that Ngo spent significant amounts of money at electronic stores, including $126,900 in 2011 alone, despite owing significant taxes and being aware of the liability. Multiple audits revealed that Ngo owes more than $502,000 in taxes, penalties and interest for 2004, 2005, 2007 and 2008.
This case was investigated by IRS Criminal Investigation and prosecuted by Clemon D. Ashley, Assistant U.S. Attorney for the District of Oregon.
Portland Man Receives Prison Sentence for Selling Counterfeit Nike Sneakers OnlineRead the Press Release
PORTLAND, Ore. – James Pepion, of Portland, was sentenced today to four months in prison followed by three years supervised release for selling counterfeit Nike sneakers online and laundering his proceeds. A restitution hearing has been scheduled for July 9, 2018.
According to court documents, Pepion offered rare Nike sneakers for sale on the website Get-Supplied.com and through related businesses, including Supplied, Inc., and SwagSupply, Inc. using online platforms such as Instagram, eBay, and Shopify. Though Pepion acquired many of the limited-edition sneakers he resold through legitimate channels, he also imported counterfeit versions of some sneakers directly from black market sources in China, selling them as authentic Nike footwear to unwitting buyers. These fraudulent sales triggered numerous complaints to Nike as well as to Pepion.
Between June 2013 and September 2015, Pepion wired $174,460.00 to sellers in China, almost all of which was for counterfeit shoes and packaging. Pepion combined the proceeds of the sales of these counterfeit Nike sneakers with the proceeds of sales of authentic sneakers in various financial accounts in order to conceal the illegal source of much of his income.
Pepion previously pleaded guilty to one count each of trafficking in counterfeit goods and money laundering on Friday, June 30, 2017.
This case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) and IRS Criminal Investigation (IRS CI) and prosecuted by Ryan W. Bounds and Julia E. Jarrett, Assistant U.S. Attorneys for the District of Oregon.
Parkersburg Man Pleads Guilty to Receiving Child PornographyRead the Press Release
Defendant faces at least five and up to 20 years in federal prison
CHARLESTON, W.Va. – A Parkersburg man pled guilty today to a child pornography crime, announced United States Attorney Mike Stuart. Terry Allen Riley, 59, entered his guilty plea to receiving child pornography. U.S. Attorney Stuart commended the investigative efforts of the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, and the Parkersburg Police Department.
“These cases are truly crimes of hideous violence and a priority for my team,” said United States Attorney Mike Stuart. “Riley’s conviction means another child predator will soon be behind bars.”
Riley admitted that on June 12, 2015, he received a video of a prepubescent minor engaged in sex acts. The video was received on Riley’s computer located at his residence. The investigation revealed that Riley was using a cloud-based email service to download, receive, and distribute child pornography. Riley further admitted to possessing over 600 images and videos of minors engaged in sex acts, and that some of those images involved sadistic conduct or conduct involving infants and toddlers.
Riley faces at least five and up to 20 years in federal prison when he is sentenced on July 3, 2018. Upon his release from prison, he will be required to serve a term of supervised release of at least five years and up to life. He will also be required to register as a sex offender.
First Assistant United States Attorney Lisa G. Johnston and Assistant United States Attorney Jennifer Rada Herrald are in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Oklahoma City Behavioral Health Counselor Pleads Guilty to Defrauding MedicaidRead the Press Release
OKLAHOMA CITY – SAMUEL OKERE, 61, of Oklahoma City, has pleaded guilty to Medicaid fraud, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma, and Mike Hunter, Oklahoma Attorney General.
Okere is a licensed professional counselor and owner of New Life Counseling Services. On November 15, 2017, a federal grand jury charged him with 224 counts of defrauding the Oklahoma Health Care Authority through false claims for behavioral health counseling. In particular, the indictment alleged that Okere billed for counseling sessions for multiple individuals, primarily children, at times when he could not have been counseling them. For example, some of the times and dates billed were when clients were at school. Others were when Okere was engaged in activities inconsistent with counseling, such as speaking on the phone with representatives of the Oklahoma Health Care Authority.
On April 3, 2018, Okere pleaded guilty to health care fraud. At sentencing, he faces a maximum of ten years in federal prison, to be followed by three years of supervised release. He could also be fined up to $250,000 and will be required to pay restitution to Medicaid in the amount of $141,545.16. A portion of the restitution will go to SoonerCare and a portion to the Centers for Medicare and Medicaid Services. Sentencing will take place in approximately 90 days.
"Our partnership with the Attorney General’s Office is strong and effective in combatting health care fraud in Oklahoma," said Acting U.S. Attorney Troester.
"I appreciate U.S. Attorney Troester and his office for their assistance in helping us reach this successful outcome," Attorney General Hunter said. "Health care fraud harms defenseless citizens who rely on essential services and taxpayers, who fund these programs. I am glad we could work together on this case to hold Okere accountable for his actions."
This case is the result of an investigation by the Oklahoma Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorney Amanda Maxfield Green and Assistant Oklahoma Attorney General Lory Dewey, who is also a Special Assistant U.S. Attorney, are prosecuting the case. Reference is made to court filings for further information.
North Royalton man indicted for conspiring to distribute controlled substance analogues commonly sold as MollyRead the Press Release
A North Royalton man was indicted in federal court for conspiring to distribute controlled substance analogues commonly sold on the street as Molly.
Robert Przybylski, 37, was indicted on one count of conspiracy to distribute controlled substances, one count of possession of controlled substances to intent to distribute and two counts of attempted possession of controlled substances with intent to distribute.
Przbylski conspired with others from September 2016 to the present to possess N-ethyl Pentylone and N-ethyl Norpentylone, Schedule I analogue drugs often sold as the street drug Molly, according to the indictment.
Przbylski possessed 46 grams of N-ethyl Norpentylone in October 2016. He attempted to possess a kilogram of N-ethyl Norpentylone on Oct. 4, 2016 and tried to possess N-ethyl Pentylone on July 10, 2017, according to the indictment.
This case is being investigated by Homeland Security Investigations and the Medina County Drug Task Force. It is being prosecuted by Assistant U.S. Attorney Matthew Cronin.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
A charge 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.
New Orleans-Area Woman Pleads Guilty to Scheme to Possess Oxycodone by Fraud and to Possess with Intent to Distribute Oxycodone on the Black MarketRead the Press Release
WASHINGTON – A New Orleans, Louisiana-area woman pleaded guilty today for her participation in a scheme to obtain oxycodone through fraud by creating fictitious prescriptions and to possess with intent to distribute oxycodone on the black market.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Duane A. Evans of the Eastern District of Louisiana, Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office and Special Agent in Charge Stephen G. Azzam of the U.S. Drug Enforcement Administration (DEA)’s New Orleans Field Division made the announcement.
Danielle Nicole Lesslie, 30, of Metairie, Louisiana was charged in a one-count Information with conspiracy to acquire and obtain possession of oxycodone through fraud and to possess with the intent to distribute oxycodone. She pleaded guilty before U.S. District Judge Lance M. Africk of the Eastern District of Louisiana. She is scheduled to be sentenced by Judge Africk on June 28.
“Danielle Lesslie used a physician’s stolen prescription template to create fraudulent prescriptions for opioids and then used those prescriptions to distribute approximately 312,050 milligrams of oxycodone pills on the black market,” said Acting Assistant Attorney General Cronan. “This case is indicative of the Department’s ongoing, multifaceted approach to combating the opioid epidemic.”
“The costs imposed on our society by the opioid epidemic are great,” said U.S. Attorney Evans. “That is why we will continue to prosecute individuals like Ms. Lesslie who participate in the illegal distribution of prescription drugs to members of the public.”
“The opioid epidemic continues to ravage our communities,” said FBI Special Agent in Charge Rommal. “This case demonstrates how the FBI will continue to investigate those who contribute to this problem, especially those who steal from physicians to do so.”
“HHS-OIG will never hesitate to investigate those who defraud federal health care programs in order to obtain and then sell opioid prescriptions on the black market,” said HHS-OIG Special Agent in Charge Porter. “Working with our law enforcement partners, our investigators will continue to crack down on prescription drug fraud in order to ensure that taxpayer dollars are not illegally being utilized to fund the opioid epidemic, as well as to protect the public from the illegal distribution of these prescription drugs.
“Danielle Lesslie and her co-conspirators in this scheme heartlessly contributed to the opioid epidemic plaguing our society today,” said DEA Special Agent in Charge Azzam. “This malicious conduct puts lives at risk and won’t be tolerated. We will continue to protect the integrity of the medical profession, including physicians who have their prescription templates stolen from them. DEA, along with our law enforcement partners, will continue to aggressively pursue those who seek to perpetuate and profit from the opioid crisis in this country, as well as undermine our nation’s taxpayer funded federal health care programs.”
On Oct. 5, 2017, Lesslie was arrested on a federal criminal complaint, which alleged that Lesslie used a physician’s stolen prescription template to create fraudulent prescriptions for oxycodone that were filled by New Orleans area pharmacies and then resold on the black market.
In pleading guilty, Lesslie admitted that, between February 2017 and September 2017, she created fraudulent prescriptions using personal identifying information provided to her by her co-conspirators, which were then used to obtain oxycodone pills that were subsequently resold on the black market. She admitted to providing these fraudulent prescriptions to other individuals who she knew would fill the prescriptions, and then would facilitate the resale of the pills on the black market. In some instances, Lesslie knew that certain individuals used their Medicaid benefits when filling the fraudulent prescriptions. In total, she admitted distributing approximately 312,050 milligrams of oxycodone pills that were obtained using the fraudulent prescriptions that she created.
This case was investigated by the FBI; HHS-OIG, Office of Investigations; the DEA and the Jefferson Parish Sheriff’s Office. Trial Attorney Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Myles Ranier of the Eastern District of Louisiana are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 3,000 defendants who collectively have billed the Medicare program for over $11 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
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New Orleans-Area Woman Pleads Guilty to Scheme to Possess Oxycodone by Fraud and to Possess with Intent to Distribute Oxycodone on the Black MarketRead the Press Release
A New Orleans, Louisiana-area woman pleaded guilty today for her participation in a scheme to obtain oxycodone through fraud by creating fictitious prescriptions and to possess with intent to distribute oxycodone on the black market.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Duane A. Evans of the Eastern District of Louisiana, Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office and Special Agent in Charge Stephen G. Azzam of the U.S. Drug Enforcement Administration (DEA)’s New Orleans Field Division made the announcement.
Danielle Nicole Lesslie, 30, of Metairie, Louisiana was charged in a one-count Information with conspiracy to acquire and obtain possession of oxycodone through fraud and to possess with the intent to distribute oxycodone. She pleaded guilty before U.S. District Judge Lance M. Africk of the Eastern District of Louisiana. She is scheduled to be sentenced by Judge Africk on June 28.
“Danielle Lesslie used a physician’s stolen prescription template to create fraudulent prescriptions for opioids and then used those prescriptions to distribute approximately 312,050 milligrams of oxycodone pills on the black market,” said Acting Assistant Attorney General Cronan. “This case is indicative of the Department’s ongoing, multifaceted approach to combating the opioid epidemic.”
“The costs imposed on our society by the opioid epidemic are great,” said U.S. Attorney Evans. “That is why we will continue to prosecute individuals like Ms. Lesslie who participate in the illegal distribution of prescription drugs to members of the public.”
“This case is yet another example of how the opioid abuse and trafficking epidemic is affecting New Orleans and many other U.S. cities," said Special Agent in Charge Rommal. "Using her knowledge and experience in the medical field, Danielle Lesslie was able to generate numerous fraudulent prescriptions, resulting in a substantial number of pills on the street. In many instances these pills were sold for profit by Lesslie in an effort which ultimately contributed to the overall opioid epidemic. Through Lesslie’s fraudulent activities and greed, countless people were harmed, as well as several New Orleans area communities placed at risk. The FBI, along with our federal, state, and local partners remain committed to investigating allegations of prescription fraud and abuse in Louisiana.”
“HHS-OIG will never hesitate to investigate those who defraud federal health care programs in order to obtain and then sell opioid prescriptions on the black market,” said HHS-OIG Special Agent in Charge Porter. “Working with our law enforcement partners, our investigators will continue to crack down on prescription drug fraud in order to ensure that taxpayer dollars are not illegally being utilized to fund the opioid epidemic, as well as to protect the public from the illegal distribution of these prescription drugs.
“Danielle Lesslie and her co-conspirators in this scheme heartlessly contributed to the opioid epidemic plaguing our society today,” said DEA Special Agent in Charge Azzam. “This malicious conduct puts lives at risk and won’t be tolerated. We will continue to protect the integrity of the medical profession, including physicians who have their prescription templates stolen from them. DEA, along with our law enforcement partners, will continue to aggressively pursue those who seek to perpetuate and profit from the opioid crisis in this country, as well as undermine our nation’s taxpayer funded federal health care programs.”
On Oct. 5, 2017, Lesslie was arrested on a federal criminal complaint, which alleged that Lesslie used a physician’s stolen prescription template to create fraudulent prescriptions for oxycodone that were filled by New Orleans area pharmacies and then resold on the black market.
In pleading guilty, Lesslie admitted that, between February 2017 and September 2017, she created fraudulent prescriptions using personal identifying information provided to her by her co-conspirators, which were then used to obtain oxycodone pills that were subsequently resold on the black market. She admitted to providing these fraudulent prescriptions to other individuals who she knew would fill the prescriptions, and then would facilitate the resale of the pills on the black market. In some instances, Lesslie knew that certain individuals used their Medicaid benefits when filling the fraudulent prescriptions. In total, she admitted distributing approximately 312,050 milligrams of oxycodone pills that were obtained using the fraudulent prescriptions that she created.
This case was investigated by the FBI; HHS-OIG, Office of Investigations; the DEA and the Jefferson Parish Sheriff’s Office. Trial Attorney Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Myles Ranier of the Eastern District of Louisiana are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 3,000 defendants who collectively have billed the Medicare program for over $11 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Muskogee Man Pleads Guilty to CounterfeitingRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Ricky Lee Banks, age 40, of Muskogee, Oklahoma, pled guilty to Counterfeiting An Obligation Of The United States, in violation of Title 18, United States Code, Sections 471 and 2, punishable by not more than 20 years imprisonment, a fine up to $250,000.00 or both for each count.
The Indictment alleged that in or about November, 2017, to on or about January 16, 2018, in the Eastern District of Oklahoma, the Defendant, Ricky Lee Banks Jr., with intent to defraud, did counterfeit and falsely make an obligation of the United States, that is, a falsely made and counterfeited one-hundred-dollar Federal Reserve Note, Back plate number 158, No front of bill, No serial number.
The charges arose from an investigation by the Muskogee Police Department and the United States Secret Service.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney John David Luton represented the United States.
Mulberry Woman Sentenced for Setting Fire in the Ozark National ForrestRead the Press Release
Fort Smith, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Shelly Raye Winfrey, age 47, of Mulberry, was sentenced today to 130 days incarceration, with credit for 130 days served, followed by three years of supervised release and was ordered to pay $1,500.00 in restitution on one count of Setting Fire on Lands of The United States. The Honorable Chief Judge P.K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to Court records, on April 9, 2017, an off-duty Crawford County Deputy Sheriff and a friend were driving up a dirt road in Franklin County north of Mulberry, Arkansas, when they saw a woman get out of her vehicle, bend over, and then get back in her vehicle and drive off at a high rate of speed. As she left, they saw she had ignited a dead pine tree. The men attempted to extinguish the fire and called the Sheriff’s Office for a local fire department to respond to the scene. The deputy also provided a description of the woman and vehicle. The woman was later identified as Winfrey.
The Mulberry Fire Department arrived and extinguished the fire. The Deputy and friend then continued their journey north and came upon another fire burning approximately one mile from the first fire. They called that fire in and left the area due to concern that they could be trapped by a forest fire. The Mulberry Fire Department extinguished the second fire as well as a third fire that was located further north of the second fire.
During this time, the fire department personnel saw a vehicle that matched the description given by the deputy. A Franklin County Deputy Sheriff arrived, and as he tried to stop the vehicle, the driver and sole occupant, Winfrey, began throwing ignited currency out of the window. Winfrey was taken into custody and transported to the Franklin County Detention Center.
During the investigation it was determined that Winfrey set fires on land belonging to the United States. Specifically, land belonging to the United States Forest Service known as the Ozark National Forest. Winfrey confirmed and admitted that she illegally set timber on fire on April 9, 2017.
Winfrey was indicted by a federal grand jury in June 2017 and entered a guilty plea in December 2017.
This case was investigated by the U.S Forest Service and the Franklin County Sheriff’s Office. Assistant United States Attorney Claude Hawkins prosecuted the case for the United States.
Mobile County Man Receives 10-Year Sentence for Bank Robbery and Possession of a Firearm in Furtherance of a Violent CrimeRead the Press Release
The United States Attorney, Richard W. Moore, announces that Gregory Owens, a 55 year old, resident of Mobile, Alabama was sentenced to 121 months of incarceration followed by five years of supervised release for a bank robbery and possession of a firearm in furtherance of a violent crime, bank robbery.
On September 14, 2017, Owens entered the Hancock Bank located at 2110 Demetropolis Road, Mobile, Alabama with a green handgun. He approached a teller, gave her a note that demanded money. When she hesitated, he pointed the firearm at her. In fear, the teller then gave Owens approximately $5,645.00 that included a dye pack. Owens took the money then fled the bank. Almost immediately, the dye pack exploded and Owens dropped the money and continued to flee. The note he provided to the teller had his address affixed to it. Officers then went to Owens’ residence. He was not there. Officers spoke to his mother. His mother provided his cell number and Owens was located at an area hotel by tracking his cell phone. Owens was arrested still wearing the clothes he wore during the robbery. He was Mirandized and then gave consent to search his vehicle and the green firearm was located inside the vehicle. Owens pled guilty on December 29, 2017.
The Federal Bureau of Investigation along with the Mobile Police Department investigated the case and presented it to the United States Attorney’s Office for prosecution. The prosecutor assigned to the case was Assistant United States Attorney, Gina S. Vann.