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Wednesday 28 March 2018
Accountant pleads guilty to embezzling from employerRead the Press Release
ATLANTA – Stantisha D. Kemp, an accounting manager who embezzled over $1.5 million dollars from her employer over a six-year period, has pleaded guilty to wire fraud.
“Accountants who lie, cheat, and steal threaten the financial solvency of businesses,” said U.S. Attorney Byung J. “BJay” Pak. “Businesses must remain vigilant against fraud – all too often the perpetrator is someone they know.”
“For several years, Kemp took advantage of her position of managing the company’s payroll,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “Her guilty plea should send a message that no matter your position, you cannot profit illegally, or violate the trust of the company who hires you.”
According to U.S. Attorney Pak, the charges and other information presented in court: From 2007 to 2013, Kemp served as a payroll and accounting manager of an Atlanta-based company that developed medical technology (“the company”). During that time, Kemp embezzled over $1.5 million dollars by falsifying payroll records sent to a third-party payroll processing company and instructing the payroll processor to direct deposit funds into her personal bank accounts on a monthly basis. She falsely instructed the payroll processing company that a doctor with the initials Y.H.J. was a company employee, and she further instructed the payroll processing company to direct deposit Y.H.J.’s salary payments into her personal bank accounts. She concealed her scheme by preparing a set of fabricated internal payroll records that made no mention of Y.H.J., who had not been employed by the company since early April 2010. Nonetheless, Y.H.J.’s unauthorized salary payments were deposited into Kemp’s personal bank accounts, month after month, until February 2013.
Sentencing for Stantisha Kemp, 40, of Atlanta, Georgia, is scheduled for June 11, 2018 at 11:00 a.m., before U.S. District Judge Steven C. Jones.
This case is being investigated by the FBI.
Assistant U.S. Attorney Kamal Ghali is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
12 Southwestern Pennsylvania Residents Facing Federal Cocaine Conspiracy ChargesRead the Press Release
PITTSBURGH- After a lengthy investigation into drug trafficking in Pittsburgh, Pennsylvania, 12 people were indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today. The indictments were returned under seal on March 20 and unsealed this week following the arrests of the defendants.
"Our intense focus on fighting the opioid epidemic in no way deters our efforts to prosecute individuals and organizations trafficking other illegal substances, including cocaine," said U.S. Attorney Brady. "Just as this 14-month investigation resulted in charges against the members of two separate, but related, drug trafficking organizations, we will continue to work tirelessly to identify and prosecute drug dealers at all levels in order to keep our communities safe."
THE INDICTMENTS
The first indictment, containing two counts, named:
Thomas Poole aka Thomas Dupree, 52, of Pittsburgh, PA;
Cameron Mele, 42, of Pittsburgh, PA;
Jayson Markulin, 46, of McKees Rocks, PA;
Brian Horvath, 46, of Pittsburgh, PA;
Albert Mastrippolito, Jr., 59, of Claridge, PA;
Craig George, 50, of Greensburg, PA;
Anthony Monteleone, 58, of Pittsburgh, PA;
Scott Spangler, 38, of North Versailles, PA; and
Richard Kosmar, 56, of Pittsburgh, PA.
According to the indictment, from in and around January 2016, and continuing thereafter to on or about November 30, 2017, the defendants conspired with one another, and others known and unknown, to distribute and possess with intent to distribute cocaine, a Schedule II controlled substance. While all defendants are charged in the conspiracy to distribute the narcotics, Albert Mastrippolito, Jr. is specifically charged with conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine; and Thomas Poole, Cameron Mele, Jayson Markulin and Brian Horvath are specifically charged with conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. Jayson Markulin is charged at Count 2 with possession with intent to distribute cocaine.
The law provides for maximum total sentences ranging from 10 years in prison up to life in prison, as well as mandatory minimum sentences starting at five years in prison. Fines range from $1,000,000 to up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The second indictment, containing two counts, named:
Diop Fitzgerald, 40, formerly of West Mifflin, PA, currently incarcerated;
Landriff Macklin, 39, formerly of Pittsburgh, PA, currently incarcerated; and
James White, 45, of Duquesne, PA.
According to the indictment, from in and around September 2016, and continuing thereafter to on or about November 30, 2017, the defendants conspired with one another, and others known and unknown, to distribute and possess with intent to distribute cocaine. While all defendants are charged in the conspiracy to distribute the narcotics, Landriff Macklin is specifically charged with conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine; and Diop Fitzgerald is specifically charged with conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. Landriff Macklin is charged at Count 2 with possession with intent to distribute 500 grams or more of cocaine.
The law provides for a mandatory minimum of five years and up to a maximum total sentence of 40 years in prison, a fine of up to $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephen S. Gilson is prosecuting these cases on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the indictments in this case. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The Stowe Township Police Department also provided assistance in this investigation. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tuesday 27 March 2018
Wounded Knee Man Pleads Guilty to Second Degree MurderRead the Press Release
United States Attorney Ron Parsons announced Darwin Wade Red Cloud, a/k/a Darwin Raisch, 25, of Wounded Knee, South Dakota, appeared before U.S. Magistrate Judge Daneta Wollmann on March 22, 2018, and pleaded guilty to Second Degree Murder.
The Magistrate Judge recommended Red Cloud’s plea be accepted by the District Court. The maximum penalty upon conviction is life imprisonment and/or a $250,000 fine.
Between August 2014 and October 2014, at Wounded Knee, Red Cloud knowingly failed to provide sufficient sustenance to an infant, which resulted in the baby’s death.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs Office of Justice Services. The case is being prosecuted by Assistant U.S. Attorney Sarah Collins.
A presentence investigation was ordered and a sentencing date will be set. Red Cloud was remanded to the custody of the U.S. Marshals pending acceptance of his plea and sentencing
Woodland Park Man Indicted for Tax EvasionRead the Press Release
DENVER – On March 26, 2018, Scott Daniel Roughen, age 52, of Woodland Park, Colorado was arrested following a federal grand jury indictment on charges of tax evasion, announced United States Attorney Robert C. Troyer and IRS Criminal Investigation Special Agent in Charge Steven Osborne. Roughen had his initial appearance on March 26, 2018, before U.S. Magistrate Judge Kristen L. Mix. His arraignment is set for March 29, 2018, before Magistrate Judge Nina Y. Wang.
Roughen faces one count of tax evasion. According to the indictment, he allegedly failed to file an individual federal tax return for any of the tax years 2000 through 2006. After the IRS assessed tax liabilities for Roughen for those tax years, Roughen allegedly evaded the payment of those taxes in a number of ways, including hiding his income and using bank accounts held in names other than his own. This charge carries a penalty of not more than 5 years imprisonment.
This case is being investigated by the Internal Revenue Service – Criminal Investigation. This case is being prosecuted by Assistant United States Attorney Pegeen Rhyne.
The defendant is presumed innocent unless and until proven guilty in a court of law.
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Wood County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A Wood County man pled guilty today to a federal gun crime, announced United States Attorney Mike Stuart. Charles “Rusty” Conrad, 26, of Parkersburg, pled guilty to being a prohibited person in possession of a firearm. Conrad is prohibited from possessing any firearms due to a 2012 Wood County felony conviction for fraudulent use of an access device. During his plea hearing, Conrad admitted that on July 8, 2016, he possessed sawed-off .12 gauge shotgun at his Parkersburg residence. United States Attorney Stuart commended the investigative efforts of the Parkersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“I firmly believe in protecting our gun rights by keeping firearms out of the hands of felons like this guy,” said United States Attorney Mike Stuart. “We will work with our law enforcement partners every day of the week to prosecute criminals who violate gun laws.”
Conrad faces up to 10 years in federal prison when he is sentenced on June 20, 2018.
Assistant United States Attorney Matt Davis is responsible for the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
This case is being prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
Follow us on Twitter: @SDWVNews and @USAttyStuart
###Williamsport Man Sentenced to Nine Year’s in Prison for Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Morris Smith, age 35, of Williamsport, Pennsylvania, was sentenced to nine years’ imprisonment on March 21, 2018, by United States District Court Judge Matthew W. Brann for possession with intent to distribute cocaine.
According to United States Attorney David J. Freed, Smith pled guilty to possessing more than 28 grams of cocaine base, or “crack,” along with a quantity of cocaine with the intent to distribute the narcotics in the Williamsport area. Smith was arrested in March 2016 in Williamsport following a vehicle and foot pursuit that began when Smith fled a routine traffic stop. Williamsport police recovered over 150 grams of powder cocaine and 74 grams of crack, along with a loaded 9mm handgun, from the trunk of the car Smith drove while attempting to elude police. Those quantities amount to more than 400 individual doses of crack and 900 doses of powder cocaine.
Judge Brann considered Smith’s lengthy criminal history when imposing the sentence, specifically noting two prior federal convictions for drug trafficking and escape.
The investigation was conducted the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Williamsport Bureau of Police. Assistant United States Attorney Sean A. Camoni prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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Williamsport Man Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
WILLIAMSPORT- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Kenneth Sharif Johnson, age 27, of Williamsport, Pennsylvania, was indicted on March 22, 2018, by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney David J. Freed, the indictment alleges that Johnson, a convicted felon, illegally possessed three stolen handguns on June 18, 2016 and that from January 2015 through June 2016, Johnson possessed with the intent to distribute over 28 grams of crack cocaine and a detectable amount of heroin.
The three-count indictment charges Johnson with one count each of possession of a firearm by a convicted felon and receiving stolen firearms and a separate count of possession with intent to distribute crack cocaine and heroin.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the South Williamsport Police Department. Assistant U.S. Attorney George J. Rocktashel is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 40 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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West Mifflin Woman Pleads Guilty in Drug Trafficking SchemeRead the Press Release
PITTSBURGH, PA. - A resident of West Mifflin, Pennsylvania, pleaded guilty in federal court to conspiring to distribute narcotics, United States Attorney Scott W. Brady announced today.
Jammie Fridley, 49, pleaded guilty to one count of conspiring with 20 other individuals, between March and August of 2017, to distribute narcotics. In connection with the guilty plea, the court was advised that Fridley regularly purchased fentanyl, cocaine, and cocaine base from her co-defendant, Skyler Carter, for both personal use and further distribution, and was responsible for the distribution of between 32 and 40 grams of fentanyl. Fridley is the seventh of 21 defendants charged in the case to enter a plea of guilty.
Judge Arthur J. Schwab scheduled sentencing for August 23, 2018 at 11 a.m. Under the Federal Sentencing Guidelines, the actual sentence imposed will depend upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Fridley remains on bond pending the sentencing hearing.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises. Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
Wellsville Man Sentenced on Methamphetamine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051Buffalo, N.Y.–U.S. Attorney James P. Kennedy, Jr. announced today that Derek Fagan, 33, of Wellsville, NY, who was convicted of conspiracy to manufacture, possess with intent to distribute, and to distribute, a mixture and substance containing methamphetamine, was sentenced to 30 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Brendan T. Cullinane, who handling the case, stated that between January of 2011 and October 25, 2012, the defendant conspired to manufacture and distribute methamphetamine. In order to avoid restrictions on the purchase of pseudoephedrine, an important chemical in the methamphetamine manufacturing process, Fagan engaged in the practice of “smurfing” (buying small quantities) at local pharmacies.
The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Lieutenant Kevin Reyes and Major Mary Clark; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Region; the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb; the Wellsville Police Department, under the direction of Chief Timothy O’Grady; U.S. Border Patrol, under the direction of Patrol Agent-in-Charge Steven Oldman; and the New York State Department of Environmental Conservation, under the direction of Captain John Burke.
Waldorf Man Sentenced to 105 Years in Prison for Production of Child PornographyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge Paul W. Grimm sentenced Carlos DeAngelo Bell, 30, of Waldorf, Maryland was sentenced to 105 years in prison, followed by a lifetime period of supervised release for 10 counts of Sexual Exploitation of Minors for the Purpose of Producing Child Pornography. Judge Grimm ordered that, should he complete the term of his imprisonment, Bell must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Baltimore; Charles County State’s Attorney Anthony B. Covington, Sr.; Sheriff Troy D. Berry of the Charles County Sheriff’s Office and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to the plea agreement, from the period of January 1, 2014 to December 22, 2016, Bell used and coerced minors to engage in sexually explicit conduct for the purpose of producing child pornography. Bell was charged with committing this offense against ten minors. During the relevant period, Bell was employed as an Instructional Assistant in Charles County Public Schools, and a track and field coach at a Charles County Public High School.
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. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
Acting United States Attorney Stephen M. Schenning thanked HSI, the Charles County State’s Attorney’s Office, the Charles County Sheriff’s Office, and the Maryland State Police. Mr. Schenning also commended Assistant United States Attorneys Timothy F. Hagan and Joseph R. Baldwin of the United States Attorney’s Office for the District of Maryland, who prosecuted this case.
Virginia Beach Man Pleads Guilty to Multiple Bank RobberiesRead the Press Release
RICHMOND, Va. – A Virginia Beach man pleaded guilty today to committing a dozen bank robberies throughout Virginia and North Carolina in 2016 and 2017.
According to court documents, Russell Carter, 50, robbed 11 banks and attempted to rob another, all by approaching the tellers with a note demanding money, and claiming that he had a firearm. Carter robbed nine banks in the Richmond, Williamsburg, and Fredericksburg areas, as well as one bank in Charlottesville, and one in Durham, North Carolina.
Carter pleaded guilty to bank robbery and faces a maximum penalty of 40 years in prison when sentenced on June 19. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea. Assistant U.S. Attorney Peter S. Duffey is prosecuting the case.
This investigation was conducted by FBI Richmond’s Central Virginia Violent Crimes Task Force.
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. 3:17-cr-166.
Verona Man Charged with Multiple Counts of Violating Child Exploitation LawsRead the Press Release
PITTSBURGH, PA - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of attempted production, production, distribution and possession of material depicting the sexual exploitation of minors, United States Attorney Scott W. Brady announced today.
The eight-count indictment, returned on March 21, named John O’Donnell, age 50, of Verona, Pennsylvania, as the sole defendant. O’Donnell was arrested on Friday and today was ordered to be detained pending trial.
According to the indictment, on or about February 28, 2015, March 4, 2015, March 9, 2015, March 24, 2015, April 3, 2015 and April 14, 2015, O’Donnell employed, used, persuaded, induced, enticed, and coerced a minor to engage in sexually explicit conduct for the purpose of producing or attempting to produce a visual depiction of the sexual exploitation of the minor. The indictment also alleges that on or about October 25, 2017, O’Donnell knowingly distributed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age. The indictment further alleges that on or about December 20, 2017, O’Donnell knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a minimum sentence of 15 years in prison and a maximum total sentence of 210 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania Attorney’s General Office, the Allegheny County Police Department and the Allegheny County District Attorney’s Office conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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 (CEOS), 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.
U.S. Attorney Honors Law Enforcement Officials and Bestows Award for Extraordinary ValorRead the Press Release
Senior Mgt. Counsel and Law Enforcement Coordinator Cindy Cipriani (619) 546-9608
NEWS RELEASE SUMMARY – March 23, 2018
SAN DIEGO – U.S. Attorney Adam Braverman will honor the work of federal, state and local law enforcement officers and bestow an award for Extraordinary Valor at the first annual Excellence in the Pursuit of Justice Awards Ceremony today.
“Serving as a law enforcement officer is demanding, dangerous, and all too often unappreciated. Many officers leave their families each day not knowing what dangers lurk ahead, because they want to make a difference. Those who have chosen this profession and who work selflessly day and night through the harshest of conditions are a special breed – they are heroes,” U.S. Attorney Braverman stated. “It is no accident that America’s Finest City is also one of America’s safest cities. The cooperation and collaboration between our federal, state and local law enforcement partners is unparalleled. Today, I honor 80 special officers who have made a difference in our community and moved the cause of justice forward.”
U.S. Attorney Braverman’s Excellence in the Pursuit of Justice Awards are being presented this afternoon to 79 agents and officers who demonstrated creativity, initiative, and persistence to achieve justice in difficult cases, including international murder investigations, counterterrorism matters, opiate diversion conspiracies, and large takedowns of gang-led drug trafficking organizations. “Each of these agents and officers demonstrated total commitment to the cause of justice and refused to give up in the face of numerous obstacles. They went above and beyond to ensure that justice was done, and in doing so they upheld the rule of law, brought justice to victims and enhanced community safety.”
In addition to the Excellence in the Pursuit of Justice Awards, U.S. Attorney Braverman will present an Award for Extraordinary Valor to Special Agent Geoffrey Rice, who works in the Carlsbad office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. SA Rice happened to be attending the Route 91 Harvest music festival in Las Vegas when he heard the unmistakable sound of rapid gunfire. A mass murderer took the lives of 58 and injured more than 500 that day.
Agent Rice was off duty and unarmed, enjoying the concert with his wife on October 1, 2017. The shooter opened fire on the large outdoor gathering of concertgoers from a high rise hotel across the street from the concert venue. In the first few moments after the shooting began there was much confusion as to the source and nature of the sound of the gunfire over the amplified music and the background noise from a crowd of thousands. Many people initially thought that the sound was firecrackers or something else innocuous.
As a result of his extensive tactical training, Agent Rice immediately recognized the sound as gunfire and correctly determined the direction from which it came. After yelling out “gunfire!” he swiftly took action to move himself and his wife to cover behind a metal sound equipment box nearby, even as others in their immediate proximity were shot. As they moved to cover, Agent Rice noticed one person who had sustained a wound to the neck, and helped carry him along to a position of cover. Agent Rice exposed himself further to the assailant’s fire to grab two young women nearby and bring them back with him to safety behind the box.
As Agent Rice and the others gathered behind the sound box, the shooter took direct aim on their cover, repeatedly shooting at it in a clear attempt to penetrate it and hit them. Agent Rice, having correctly assessed that the cover was adequate and that they were in a relatively good position, commanded everyone to stay put. Although some felt their best chance was to run for better cover, Agent Rice’s confidence was compelling. One person nearby who left cover in an attempt to flee was fatally shot.
During a lull in the shooter’s fire, Agent Rice abandoned his position of safety and with help from another person he managed to move the person with the neck injury out into the open, where he had room to lie him flat in order to assess his injuries. Fully exposed to the shooter, Agent Rice performed CPR on the injured person until it was clear that he could do nothing further. As he attempted to treat the injured person the shooter resumed fire, with bullets hitting all around them. Agent Rice only then returned to safety with the injured man.
After some time the shooting stopped and Agent Rice assessed that he and the others could leave their position, and gave them calm and commanding instructions on how to do so. Agent Rice unselfishly remained on scene and at the casualty collection area nearby, volunteering to assist first responders and collecting a statement from a potential witness.
For his heroism, Agent Rice received the Award for Extraordinary Valor during today’s ceremony.
“Agent Rice’s quick thinking and swift action, in the face of an unforeseeable event reflects on his exceptional professionalism and strength of character,” said U.S. Attorney Braverman. “His selfless choice to expose himself to a known fatal threat for an injured stranger demonstrated exceptional personal valor, and exemplifies the finest traditions of law enforcement and public service. Without question his actions saved many lives and he is a hero.”
Two Individuals Charged for Robbery and Carjacking Murder of Orocovis BusinessmanRead the Press Release
SAN JUAN, Puerto Rico – On March 26, 2018, a federal grand jury returned a four-count indictment charging Juan A. Negrón-Rodríguez, 27, and Jonathan Torres-Rojas, 29, for conspiracy to interfere with commerce by robbery, interference with commerce by robbery, carjacking resulting in death, and using and carrying a firearm during a crime of violence resulting in death, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The FBI is in charge of the investigation of the case.
On June 12, 2015, Negrón-Rodríguez and Torres-Rojas robbed and carjacked José A. Medina-Meléndez, 67, as he was closing his bar, “El Rejón del Gallo,” in Orocovis. Before they fled in the victim’s stolen 2001 grey Toyota Sequoia, one of the defendants shot and mortally wounded Medina-Meléndez.
Assistant U.S. Attorney Victor O. Acevedo-Hernández is in charge of the prosecution case. If convicted, the defendants face from 10 years to a maximum sentence of life imprisonment. The charges and allegations in the indictment are merely accusations; all defendants are presumed innocent unless and until proven guilty in a court of law.
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Two Behavioral Health Clinic Operators Sentenced to Prison in Healthcare Fraud ConspiracyRead the Press Release
Jacksonville, FL – Shawn Thorpe (30) and Ruben McLain (46), both of Winston Salem, North Carolina, have been sentenced to prison for their participation in a conspiracy to commit healthcare fraud. Thorpe was sentenced to 2 years’ imprisonment and McLain was sentenced to 4 years and 9 months in federal prison. Thorpe and McLain were also ordered to pay $211,311.20 and $1,159,050.51, respectively, in restitution to their victims.
According to court documents, Thorpe and McLain worked together to create and manage Coastal Bay, a company that provided medical care to Medicaid patients. McLain had been excluded from billing federal healthcare programs based on his 2011 conviction for healthcare fraud. Thorpe never disclosed to the Medicaid program that he was working with an individual who had been excluded from participating in the program. In an effort to conceal his involvement, McLain used an alias – “Julian Winchester;” he performed a variety of functions, including hiring and firing individuals, seeing patients, and performing other managerial tasks using the alias. McLain routinely traveled to Jacksonville from his home in North Carolina to assist in Coastal Bay’s operations.
McLain and his family received significant financial benefits because of his involvement in Coastal Bay. He had access to a Coastal Bay credit card that he used to make routine purchases at restaurants, furniture stores, gas stations, and other places in North Carolina, even though Coastal Bay had no operations in North Carolina. In addition, he and his immediate family received more than $10,000 in direct payments from the Coastal Bay business account.
This matter was investigated by the U.S. Department of Health and Human Services - Office of Inspector General and the State of Florida Medicaid Fraud Control Unit. It was prosecuted by Assistant United States Attorney Jay Taylor.
St. Louis Man Pleads Guilty to Three HomicidesRead the Press Release
St. Louis, MO - Jacobi Temple, 27, of Saint Louis, MO, pled guilty yesterday, March 26, 2018, for his killing of James Lacey, Paige Schaefer, and Tammie Thurmond. Mr. Lacey and Ms. Schaefer were shot and killed inside a residence located in the 4400 block of Itaska in the City of Saint Louis. Ms. Thurmond was found by police in an alley behind the 4200 block of South 37th Street and died a short time later.
Temple pled guilty to one count of conspiracy to distribute heroin and two counts of discharge of a firearm in furtherance of drug trafficking where deaths resulted. He appeared before United States District Court Judge John A. Ross.
According to court documents, Temple, along with his two co-defendants, Demante Syms and Samuel Spires, traveled in a vehicle to the area of 4467 Itaska Street. Temple went there to obtain payment for heroin previously distributed by him that had not been paid for. Temple learned of the 4467 Itaska location from Tammie Thurmond who was the mother of Paige Schaefer. While inside 4467 Itaska demanding payment, Temple shot and killed James Lacey and Paige Schaefer. Brittney Brown was shot in the head and severely injured. Shortly after, Temple, Syms and Spires located Ms. Thurmond. Temple took Ms. Thurmond to an alley, then shot and killed her.
After being shot in the head inside the Itaska residence, Brittney Brown struggled to, but successfully contacted 911. Ms. Brown survived but was hospitalized for a significant period of time. While hospitalized (and continuing after her release), Ms. Brown provided invaluable support and assistance to law enforcement officials. Following the change of plea proceeding, United States Attorney Jeffrey B. Jensen praised her strength and courage, saying “Brittney Brown is a very courageous young lady who deserves our community’s respect and gratitude.”
Temple’s guilty plea caps a three-year investigation and federal prosecution resulting in convictions of all three charged participants. Syms and Spires previously pleaded guilty on December 2, 2016, and August 25, 2016, respectively. Sentencing for each of the three co-defendants is as follows: Spires, May 23, 2018; Syms, May 31, 2018; Temple, June 27, 2018.
Likewise, this investigation resulted in the separate prosecution and convictions of Syms and his mother, Tabitha Hunt, for witness tampering in connection with the underlying homicide investigation. Sentencing of Syms and Hunt on those witness tampering charges will also occur on May 31, 2018.
In determining any actual sentence to be imposed, a judge is required to consider the United States Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated as part of the on-going effort between the United States Attorney’s Office, the Saint Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives to address the violent crime within the City of Saint Louis.
Scituate Man Indicted in Alleged Tax Scheme to Thwart IRS Tax CollectionsRead the Press Release
PROVIDENCE – A federal grand jury in Providence returned an indictment today charging a Scituate man with allegedly corruptly endeavoring to impede the internal revenue laws, tax evasion, and perjury, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Stephen G. Dambruch for the District of Rhode Island.
According to the indictment, from 2005 through 2016, Billie Schofield worked for local fishing companies and earned hundreds of thousands of dollars in income. The indictment alleges that Schofield obstructed the Internal Revenue Service’s (IRS) efforts to collect and assess his unpaid taxes by filing false income tax returns, preventing the delivery of IRS levy notices to his employer, and sending bogus checks to the IRS in a fraudulent attempt to pay off an IRS lien placed on his property.
Additionally, the indictment alleges that from 2005 to 2016 Schofield evaded the payment and assessment of his personal tax liabilities by using nominees to hide his personal income, and in February 2018 Schofield gave false testimony before a federal grand jury in response to questions about checks that were drawn on a closed bank account that he submitted to the IRS.
If convicted, Schofield faces a statutory maximum sentence of five years in prison on the tax evasion and perjury charges, as well as three years in prison for obstructing the internal revenue laws. He also faces a period of supervised release, restitution and monetary penalties. An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Dambruch thanked special agents of IRS Criminal Investigation and the U.S. Treasury Inspector General for Tax Administration, who investigated the case, and Assistant U.S. Attorney Sandra Hebert and Tax Division Trial Attorney Christopher O’Donnell, who are prosecuting the case.
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Rhode Island Man Charged in Tax Scheme for Allegedly Thwarting IRS Efforts to Collect Taxes on Hundreds of Thousands of DollarsRead the Press Release
A federal grand jury sitting in Providence returned an indictment today charging a Rhode Island man with corruptly endeavoring to impede the internal revenue laws, tax evasion, and perjury, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Stephen G. Dambruch for the District of Rhode Island.
According to the indictment, from 2005 through 2016, Billie Schofield worked for local fishing companies and earned hundreds of thousands of dollars in income. The indictment alleges that Schofield obstructed the Internal Revenue Service’s (IRS) efforts to collect and assess his unpaid taxes by filing false income tax returns, preventing the delivery of IRS levy notices to his employer, and sending bogus checks to the IRS in a fraudulent attempt to pay off an IRS lien placed on his property.
Additionally, the indictment alleges that from 2005 to 2016 Schofield evaded the payment and assessment of his personal tax liabilities by using nominees to hide his personal income, and in February 2018 Schofield gave false testimony before a federal grand jury in response to questions about checks that were drawn on a closed bank account that he submitted to the IRS.
If convicted, Schofield faces a statutory maximum sentence of five years in prison on the tax evasion and perjury charges, as well as three years in prison for obstructing the internal revenue laws. He also faces a period of supervised release, restitution, and monetary penalties.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Dambruch thanked special agents of IRS Criminal Investigation and the U.S. Treasury Inspector General for Tax Administration, who investigated the case, and Assistant U.S. Attorney Sandra Hebert and Tax Division Trial Attorney Christopher O’Donnell, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Redirections Treatment Operations Manager Charged with Unlawfully Dispensing Buprenorphine and Defrauding MedicaidRead the Press Release
PITTSBURGH, PA – The manager of an opioid addiction treatment practice has been indicted by a federal grand jury in Pittsburgh on charges of unlawfully dispensing controlled substances and health care fraud, Attorney General Jeff Sessions, United States Attorney Scott W. Brady of the Western District of Pennsylvania and United States Attorney William J. Powell of the Northern District of West Virginia announced today. This indictment is the third in Western Pennsylvania since Attorney General Sessions announced the formation of the Opioid Fraud and Abuse Detection Unit, a Department of Justice initiative that uses data to target and prosecute individuals that commit opioid-related health care fraud.
The four-count indictment, returned on March 21, named Christopher Handa, 47, of Pittsburgh, Pennsylvania.
According to the indictment, Handa was an employee in charge of operations at Redirections Treatment Advocates, LLC, an addiction treatment facility with multiple locations in Southwestern Pennsylvania and Northern West Virginia. The indictment alleges that Handa and others conspired to create and submit unlawful prescriptions for buprenorphine, known as Subutex and Suboxone, and then unlawfully dispensed those controlled substances to other persons. Handa is also charged with health care fraud for allegedly causing fraudulent claims to be submitted to Medicaid for payments to cover the costs of the unlawfully prescribed buprenorphine.
"Today we are facing the worst drug crisis in American history, with one American dying of a drug overdose every nine minutes," said Attorney General Jeff Sessions. "It's incredible but true that some of our trusted medical professionals have chosen to violate their oaths and exploit this crisis for profit. Last summer, I sent a dozen of our top federal prosecutors to focus solely on the problem of opioid-related health care fraud in places where the epidemic was at its worst—including Western Pennsylvania. These cases cut off the supply of drugs and stop fraudsters from exploiting vulnerable people. Our prosecutors began issuing indictments back in October, and today we bring even more charges against those who allegedly defrauded the taxpayer while diverting potentially addictive drugs. We will file many more charges in the months to come—because the Department of Justice will be relentless in hunting down drug dealers and turning the tide of this epidemic."
"Because high quality, medication-assisted treatment is so essential to our opioid response, we must act rapidly and decisively to charge the unlawful diversion of buprenorphine," stated U.S. Attorney Brady. "This indictment is the result of a well-coordinated investigation by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which is working to attack the opioid problem at its root: the diversion and overprescription of opioid painkillers."
"We are unified with our sister districts to combat those who believe they can hide behind professional services and violate the law," added U.S. Attorney Powell. We will continue our joint effort to prosecute the opioid crisis at its very source."
"The DEA recognizes that the use of buprenorphine as part of a comprehensive drug treatment program is an effective tool in helping those that struggle with substance use disorder," said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. "We are also aware that when buprenorphine is illegally diverted, it can affect the lives of countless people as well as their families and friends. The DEA will aggressively pursue those that seek to illegally distribute controlled substances as is alleged in this indictment."
"The FBI will continue to investigate those accused of exploiting our health care system at the expense of those suffering from addiction and the taxpayers who help fund rehabilitation centers," said Special Agent in Charge Bob Johnson of the FBI Pittsburgh Division. "I applaud the Health Care Fraud Task Force and its partners as they work to make our community safer."
Handa faces a maximum sentence of 10 years in prison and a fine of $250,000 for each of the two counts charging him with unlawfully dispensing Schedule III controlled substances, a maximum sentence of 10 years imprisonment and a fine of $1 million for the one count charging him with conspiracy to unlawfully dispense a Schedule III controlled substance, and a maximum sentence of 10 years imprisonment and a fine of $250,000 for the one count charging him with health care fraud. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar of the Western District of Pennsylvania and Assistant United States Attorney Sarah Wagner of the Northern District of West Virginia are prosecuting this case on behalf of the United States.
The investigation leading to the indictment in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Unites States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration- Office of Criminal Investigations and the Pennsylvania Bureau of Licensing.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Rapid City Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Troy Sampson, age 40, was indicted on March 20, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 23, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or between December 1, 2017, and January 20, 2018, Sampson, a person required to register under the Sex Offender Registration and Notification Act, did fail to register and update his registration.
The charge is merely an accusation and Sampson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Office. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Sampson was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Randolph Man Sentenced to 15 Years in Federal Prison for Marijuana Trafficking and Money LaunderingRead the Press Release
BOSTON – A Randolph man was sentenced in federal court in Boston yesterday for his role in a trans-national marijuana scheme that distributed thousands of pounds of marijuana and laundered millions of dollars in proceeds.
Michael Gordon, 48, was sentenced by U.S. District Court Judge Douglas P. Woodlock to 15 years in prison, five years of supervised release, and ordered to pay forfeiture of $5,030,812, to forfeit his interests in a house in Randolph, two houses in Florida, $371,239 seized during the investigation, and an Acura SUV used to facilitate his crimes.
In December 2017, Gordon and his co-conspirator, Daphne Jean, were convicted by a federal jury of conspiracy to distribute and possession with intent to distribute marijuana, and conspiring to launder drug money through real estate transactions. Gordon was also convicted of conspiracy to distribute and possession with intent to distribute more than 1000 kilograms (2200 pounds) of marijuana and various counts of money laundering involving the purchase of real estate in Florida and Randolph.
From at least July 2011 to November 2014, Gordon shipped large amounts of marijuana from sources in California to Boston through the U.S. Postal Service and Federal Express, and then distributed the marijuana in the Boston area. Jean assisted Gordon by renting apartments that were used to receive the shipments of marijuana, and helping to launder drug proceeds. The operation produced millions of dollars in profits, and Gordon and Jean laundered the drug proceeds by participating in various financial transactions in Massachusetts and elsewhere.
Jean is scheduled to be sentenced on April 6, 2018.
United States Attorney Andrew E. Lelling; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Raymond Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Substantial assistance was also provided by Homeland Security Investigations in San Francisco; the Boston, Norwood, Randolph and Needham Police Departments; the Sonoma County (Calif.) Sheriff’s Department; and the Irwindale (Calif.) Police Department. Assistant U.S. Attorneys Karen Beausey and David G. Lazarus are prosecuting the case.
Prisoner at Mount Oliver Correctional Facility Sentenced for Making ThreatsRead the Press Release
Charleston, WEST VIRGINIA – An inmate serving state prison time in West Virginia was sentenced yesterday to federal prison time for mailing a threatening letter to a federal judge in Utah, United States Attorney Rick A. Mountcastle announced today.
The U.S. Attorney’s Office for the Western District of Virginia prosecuted the case following the recusal of the U.S. Attorney’s Office for the Southern District of West Virginia.
Eric Jacob Riggs, 26, was sentenced yesterday to 60 months in federal prison following his guilty plea on June 29, 2017, to one count of mailing a threatening communication. The case arose from a letter, sent in July 2015 that threatened a United States District Court Judge in Utah. United States Attorney Mountcastle commended the West Virginia State Police Forensic Laboratory, the Federal Bureau of Investigation, and the United States Marshals Service for their investigation and the use of latent fingerprint analysis to identify Jacobs as the perpetrator. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Porter Man Sentenced to 27 Months for Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Donald Jack Kilgore, age 67, of Porter, Oklahoma, was sentenced to 27 months imprisonment, and 2 years supervised release for Felon In Possession Of Firearm And Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charge arose from an investigation by the Broken Arrow Police Department, the Wagoner County Sherriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on or about June 6, 2017, within the Eastern District of Oklahoma, the defendant, Donald Jack Kilgore, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “Reducing violent crime is a top priority of the Department of Justice and the United States Attorney’s Offices. Enforcing the federal gun laws that prohibit convicted felons from possessing firearms is one way that we are able to prevent violence with firearms. The federal and local law enforcement joint investigation of the defendant allowed this office to hold him accountable for his actions.”
The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney John David Luton represented the United States.
Pittsburgh Man Charged with Fentanyl TraffickingRead the Press Release
PITTSBURGH – A local man has been indicted by a federal grand jury in Pittsburgh for fentanyl trafficking, United States Attorney Scott W. Brady announced today.
The indictment charges Dorian Dawson, age 29, of Pittsburgh, with possession with intent to distribute fentanyl on October 17, 2016.
The law provides for a maximum total sentence of up to 30 years in prison and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Pennsylvania Attorney General’s Office and the Brentwood Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Ocala Man Pleads Guilty to Conspiracy to Commit Wire Fraud and Executing A False Income Tax ReturnRead the Press Release
Jacksonville, Florida – Donald Edward Smith (65, Ocala) has pleaded guilty to conspiracy to commit wire fraud and to executing a false income tax return. He faces a maximum penalty of eight years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, between September 2011 and September 2015, Smith and others conspired to engage in a scheme to defraud individuals who were interested in investing in green technology and other projects. Operating under his company, Legacy Investments of Brandon, Inc., Smith solicited funds from investors and promised lucrative returns, as well as access to hundreds of millions of dollars in financing. He was assisted by others that purported to offer services to the investors to obtain funding and/or loans for their projects. These funding opportunities and/or loans never materialized.
Smith knowingly failed to report as income the fraudulent proceeds he received from the victim-investors during 2012. For that tax year, he reported a negative income of $15,122 on his Form 1040, when he should have reported $560,924 as income. His failure to do so resulted in a tax loss of $163,726 to the United States. In his plea agreement, Smith agreed to pay approximately $1.45 million in restitution to the victims of the scheme. He also agreed to pay $1,937,127.95 in restitution to victims of a separate scheme involving investments in a purported Styrofoam recycling business, and to pay restitution to the Internal Revenue Service for the tax loss resulting from the false 2012 Form 1040. Additionally, he agreed to forfeit two parcels of real property, sales proceeds from the sale of a third parcel of real property, a number of vehicles, a backhoe, and $1.45 million.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the State of Florida’s Office of Financial Regulation –Bureau of Financial Investigations. It is being prosecuted by Assistant United States Attorneys Frank Talbot and Bonnie Glober.
Northfield Man Sentenced to 106 Months in Prison for Drug Trafficking and Firearm OffensesRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced today that Justin Gauthier, 39, formerly of Northfield, was sentenced to serve 106 months in federal prison for drug trafficking and firearms crimes.
According to court documents, law enforcement officers executed two search warrants on Gauthier’s Northfield residence. During the first search on August 5, 2016, law enforcement officers seized quantities of methamphetamine and fentanyl, multiple firearms, and $13,980 in cash. During the second search on March 10, 2017, quantities of methamphetamine, fentanyl, carfentanil, additional firearms, and $6,791 in cash were seized.
Gauthier previously pleaded guilty on December 15, 2017, to charges that he unlawfully possessed methamphetamine, heroin, fentanyl, and carfentanil with the intent to distribute and that he unlawfully possessed firearms in furtherance of drug trafficking crimes. As part of his plea agreement, Gauthier forfeited 11 firearms to the United States. Over $20,000 in cash seized from Gauthier previously was forfeited by the State of New Hampshire.
“Guns and drugs are a deadly combination and those who use guns as part of the drug trade present a substantial threat to our community,” said U.S. Attorney Murray. “The defendant’s conduct in this case was especially troubling due to his involvement in distributing carfentanil, an extremely dangerous and deadly drug. In order to protect the public, we will work closely with all of our law enforcement partners to identify, disarm, and prosecute those who seek to profit from the sales of illegal drugs.”
This case was investigated by the New Hampshire State Police, Narcotics Investigation Unit, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Tilton and Northfield, New Hampshire Police Departments. The case was prosecuted by Assistant United States Attorney Jennifer Cole Davis.
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Non-Indian Man Residing on Laguna Pueblo Pleads Guilty to Federal Child Abuse ChargeRead the Press Release
ALBUQUERQUE – Aris Jaramillo, 36, a non-Indian man residing in Encinal, N.M., pled guilty today in federal court in Albuquerque, N.M., to a child abuse charge under a plea agreement with the U.S. Attorney’s Office.
Jaramillo was arrested in Aug. 2017, on a criminal complaint charging him with engaging in child abuse on Aug. 13, 2017, on the Laguna Pueblo in Cibola County, N.M. According to the complaint, Jaramillo struck a Laguna Pueblo child multiple times in the head.
During today’s proceedings, Jaramillo pled guilty to an information charging him with child abuse. In entering the guilty plea, Jaramillo admitted that on Aug. 13, 2017, he became upset and hit the victim several times in the head and left red marks on the victim’s head.
At sentencing, Jaramillo faces a maximum penalty of three years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Laguna Pueblo Tribal Police Department and was prosecuted by Assistant U.S. Attorney Nicholas J. Marshall.
Multiple Arrests Dismantle North Little Rock Drug Trafficking OrganizationRead the Press Release
LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Justin C. King, Assistant Special Agent in Charge of the Little Rock Field Office of the Drug Enforcement Administration (DEA), announced the Tuesday morning arrests of 10 defendants who, along with two other defendants, were charged in a 26-count indictment returned by a federal grand jury on March 6, 2018, and unsealed today.
The overall operation, led by the DEA, was part of the Organized Crime and Drug Enforcement Task Force (OCDETF) case “Wheelin’ and Dealin’,” which focused on the distribution of illegal drugs, including opioids and marijuana, in the North Little Rock area. Along with the 10 arrests Tuesday morning—including one in Clarkson, Washington—one defendant was already in state custody and one defendant was issued a summons to appear in court.
“The opioid epidemic has inflicted an unprecedented toll of addiction and suffering on communities throughout our nation,” Hiland said. “We recognize the Eastern District of Arkansas is not immune to this epidemic, and we will continue to work with the DEA and our law enforcement partners to aggressively pursue and prosecute those who illegally traffic these deadly substances.”
During the course of the investigation law enforcement agents utilized three court-authorized wiretaps, executed three search warrants, and made nine controlled buys and seizures. Agents seized nine firearms, 189 oxycodone pills, 187 alprazolam pills, 61 ecstasy pills, and several pounds of marijuana. The defendants were charged with violations of various drug and firearms laws.
“The arrests and seizures in this investigation are the direct result of outstanding partnerships with federal, state and local law enforcement,” DEA ASAC King said. “DEA, along with our law enforcement partners, will continue to pursue those who threaten our communities through the smuggling and distribution of illegal and dangerous drugs such as prescription drugs and marijuana. The abuse of these drugs can have devastating health and societal effects and these arrests strike a significant blow to the illegal drug trafficking trade in this region.”
The indictment alleges that Michael B. Webb, Jr., directed a drug trafficking organization based in North Little Rock that was responsible for the distribution of marijuana, oxycodone, ecstasy, and alprazolam (Xanax) in Pulaski County and surrounding areas. The indictment further alleges that Terry W. Morrison, aka “T,” supplied Webb’s organization withmarijuana by shipping it through the U.S. mail from the state of Washington to central Arkansas.
“Arresting those who abuse the nation’s mail system by using it to transport illegal narcotics is one of Postal Inspectors’ top concerns,” said Thomas L. Noyes, Inspector in Charge of the Fort Worth Division, U.S. Postal Inspection Service. “We are committed to ensuring the safety of our employees and customers from the violence drug traffickers spread throughout the community. I would like to thank the U.S. Attorney’s Office and the many agencies involved for their hard work and dedication to this case.”
Those defendants arrested or served with a summons will appear before U.S. Magistrate Judge Patricia S. Harris on Wednesday, for plea and arraignment, with the exception of Morrison, who will appear before a federal magistrate judge in the Eastern District of Washington, in Spokane, on Wednesday. Webb, who is in the custody of the Arkansas Department of Corrections, will appear before a federal magistrate judge in the Eastern District of Arkansas at a later date.
These cases were investigated by the DEA Little Rock District Office Tactical Diversion Squad composed of DEA agents and local task force officers. DEA was assisted by the North Little Rock Police Department, United States Postal Inspection Service, Pulaski County Sheriff’s Office, and Arkansas Attorney General’s Medicaid Fraud Control Unit. The case is being prosecuted by Assistant United States Attorney Julie Peters.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available on-line athttp://www.justice.gov/edar
Twitter:
@EDARNEWSDefendants, Charges and Maximum Penalties
United States v. Michael B. Webb, Jr., et al.: 4:18CR00179 KGBMICHAEL B. WEBB, JR., 29, North Little Rock, AR $
ROOSEVELT FRANKS, 48, North Little Rock, AR %
TEASHARA HARRISON, 30, North Little Rock, AR %
REGGIE HORTON, 28, Hot Springs, AR %
MICHAEL JAMES, aka WHITE MIKE, 31, Sherwood, AR %
TERRY W. MORRISON, aka T, 66, Clarkston, WA % @
GARRETT SHEETS, 27, North Little Rock, AR %
REGINALD SMITH, aka RED, 29, Stuttgart, AR %
FRANCES VIDAL, 52, North Little Rock, AR *
STACY VINCENT, aka STACY BOLDEN, 29, North Little Rock, AR %
JEREMY WEBB, 24, North Little Rock, AR %
CHANTES WILLIAMS, 38, Little Rock, AR %% = arrested Tuesday, March 27, 2018
$ = Already in state custody
@ = Arrested in Clarkston, Washington
* = Served with summons to appearSTATUTORY SENTENCES
The offenses of Conspiracy to Possess with Intent to Distribute and Distribution/Possession with Intent to Distribute the Schedule I and II controlled substances identified in the indictment are punishable by not more than 20 years’ incarceration with a possible fine up to $1,000,000, and not less than 3 years’ supervised release.
The offenses of Conspiracy to Possess with Intent to Distribute and Distribution/Possession with Intent to Distribute the Schedule IV controlled substance identified in the indictment is punishable by not more than 5 years’ incarceration with a possible fine up to $250,000, and not less than 1 year supervised release.
The offense of Felon in Possession of a Firearm is punishable by not more than 10 years’ incarceration with a possible file of up to $250,000, and not more than 3 years supervised release.
The offense of Possession of a Firearm in Furtherance of a Drug Trafficking Crime is punishable by not less than 5 years and up to life incarceration, consecutive to any other sentence, with a possible fine of up to $250,000, and not more than 5 years supervised release.
The offense of Use of a Communications Facility in Commission of a Drug Trafficking Crime is punishable by not more than 4 years incarceration, a possible fine of up to $250,000, and not more than 1 year supervised release.The offense of Conspiracy to Launder Monetary Instruments is punishable by not more than 20 years’ incarceration with a possible fine up to $500,000, and not less than 3 years’ supervised release.
The offense of Misprision of a Felony is punishable by not more than 3 years’ incarceration, with a possible fine of up to $250,000, and not more than 1 year supervised release.
Mexican National Charged with Illegal Re-entry After DeportationRead the Press Release
Fernando Salinas-Palma, a/k/a “Fernando Gutierrez-Palma,” of Norristown, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Louis D. Lappen. The indictment alleges that on or about February 21, 2018, Salinas-Palma, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about April 6, 2012, April 24, 2012, and June 30, 2012. If convicted the defendant faces a maximum possible sentence of ten years.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations (“HSI”), and is being prosecuted by Assistant United States Attorney Katherine E. Driscoll.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Mexican Man Sentenced to Prison for Illegally Returning to the United States Following Two Prior DeportationsRead the Press Release
A Mexican man who illegally returned to the United States after two prior deportations was sentenced today to more than three months in federal prison.
Noel Ramirez-Bonifacio, age 31, a citizen of Mexico illegally present in the United States and residing in Humboldt, Iowa, received the prison term after a January 11, 2018, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Ramirez-Bonifacio admitted he had previously been deported from the United States on February 24, 2007, and November 14, 2007, and that he illegally reentered the United States without the permission of the United States government. On November 10, 2017, immigration officials learned of Ramirez-Bonifacio’s illegal reentry into the United States following his arrest in Hamilton County, Iowa, for driving while license under suspension. On November 28, 2017, Ramirez-Bonifacio was found by immigration officers during a traffic stop in Hamilton County. Ramirez-Bonifacio had been convicted of possession of drug paraphernalia in Humboldt County in November 2014.
Ramirez-Bonifacio was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Ramirez-Bonifacio was sentenced to 105 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Ramirez-Bonifacio is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 17-CR-3054.
Follow us on Twitter @USAO_NDIA.
Maryland Woman Sentenced to Prison for Her Role in Stolen Identity and Tax Refund Fraud SchemeRead the Press Release
A Maryland woman was sentenced today to 28 months in prison for her involvement in a scheme to fraudulently obtain millions of dollars in income tax refunds, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Special Agent in Charge Kimberly Lappin of the Internal Revenue Service Criminal Investigation Washington D.C. Field Office, Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service, Washington Division and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
According to court documents, Cheryle Murphy, 48, participated in a massive and sophisticated stolen identity refund fraud scheme involving a network of more than 130 people, many of whom were receiving public assistance. Conspirators fraudulently claimed refunds for tax years 2005 through 2012, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts, and incarcerated prisoners. The overall case involved the filing of over 12,000 fraudulent federal income tax returns that sought at least $42 million in refunds.
Conspirators played various roles in the scheme to include: stealing identifying information, creating and mailing fraudulent federal tax returns, cashing fraudulent refund checks and forging endorsements of identity theft victims. The false returns typically reported inflated or fictitious income from a sole proprietorship and claimed phony dependents to generate an Earned Income Tax Credit, a refundable federal income tax credit for working families with low to moderate incomes. To date, approximately two dozen participants in this scheme have pleaded guilty.
From approximately August 2010 through November 2010, Murphy participated in claiming approximately $570,280 in fraudulent refunds from the IRS. Murphy agreed to allow her residence to be used for the delivery of tax refund checks and agreed with a co-conspirator to be paid for each check she received. Murphy also deposited into bank accounts under her name two cash deposits and four checks which Murphy received from a co-conspirator and that were obtained as part of the scheme. Ultimately, Murphy deposited a total of approximately $73,396 obtained as part of the scheme, of which she withdrew from ATMs approximately $17,500.
In addition to the term of imprisonment imposed, U.S. District Judge Rosemary M. Collyer ordered Murphy to serve three years of supervised release and to pay $127,180 in restitution to the IRS. She also ordered a forfeiture money judgment of $17,500.
Principal Deputy Assistant Attorney General Zuckerman, U.S. Attorney Liu, Special Agent in Charge Lappin, Inspector in Charge Wemyss and Assistant Inspector General Phillips commended the special agents, who conducted the investigation, and Assistant U.S. Attorneys Ellen Chubin Epstein and Michelle Bradford of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorney Kimberly G. Ang of the Tax Division, who prosecuted the case, as well as Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues.
They also expressed appreciation for the work of Tax Division Trial Attorneys Jeffrey B. Bender, Thomas F. Koelbl, and Jessica Moran and acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein, Assistant U.S. Attorney Chrisellen Kolb, Paralegal Specialists Aisha Keys and Donna Galindo, former Paralegal Specialists Jessica Mundi and Julie Dailey, Litigation Technology Specialist Ron Royal, Investigative Analysts William Hamann and Zachary McMenamin, and Victim/Witness Services Coordinator Tonya Jones.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Maryland Woman Sentenced to Prison for Her Role in Stolen Identity and Tax Refund Fraud SchemeRead the Press Release
WASHINGTON – A Maryland woman was sentenced today to 28 months in prison for her involvement in a scheme to fraudulently obtain millions of dollars in income tax refunds, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Special Agent in Charge Kimberly Lappin of the Internal Revenue Service Criminal Investigation Washington D.C. Field Office, Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service, Washington Division and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
According to court documents, Cheryle Murphy, 48, participated in a massive and sophisticated stolen identity refund fraud scheme involving a network of more than 130 people, many of whom were receiving public assistance. Conspirators fraudulently claimed refunds for tax years 2005 through 2012, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts, and incarcerated prisoners. The overall case involved the filing of over 12,000 fraudulent federal income tax returns that sought at least $42 million in refunds.
Conspirators played various roles in the scheme to include: stealing identifying information, creating and mailing fraudulent federal tax returns, cashing fraudulent refund checks and forging endorsements of identity theft victims. The false returns typically reported inflated or fictitious income from a sole proprietorship and claimed phony dependents to generate an Earned Income Tax Credit, a refundable federal income tax credit for working families with low to moderate incomes. To date, approximately two dozen participants in this scheme have pleaded guilty.
From approximately August 2010 through November 2010, Murphy participated in claiming approximately $570,280 in fraudulent refunds from the IRS. Murphy agreed to allow her residence to be used for the delivery of tax refund checks and agreed with a co-conspirator to be paid for each check she received. Murphy also deposited into bank accounts under her name two cash deposits and four checks which Murphy received from a co-conspirator and that were obtained as part of the scheme. Ultimately, Murphy deposited a total of approximately $73,396 obtained as part of the scheme, of which she withdrew from ATMs approximately $17,500.
In addition to the term of imprisonment imposed, U.S. District Judge Rosemary M. Collyer ordered Murphy to serve three years of supervised release and to pay $127,180 in restitution to the IRS. She also ordered a forfeiture money judgment of $17,500.
Principal Deputy Assistant Attorney General Zuckerman, U.S. Attorney Liu, Special Agent in Charge Lappin, Inspector in Charge Wemyss and Assistant Inspector General Phillips commended the special agents, who conducted the investigation, and Assistant U.S. Attorneys Ellen Chubin Epstein and Michelle Bradford of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorney Kimberly G. Ang of the Tax Division, who prosecuted the case, as well as Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues.
They also expressed appreciation for the work of Tax Division Trial Attorneys Jeffrey B. Bender, Thomas F. Koelbl, and Jessica Moran and acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein, Assistant U.S. Attorney Chrisellen Kolb, Paralegal Specialists Aisha Keys and Donna Galindo, former Paralegal Specialists Jessica Mundi and Julie Dailey, Litigation Technology Specialist Ron Royal, Investigative Analysts William Hamann and Zachary McMenamin, and Victim/Witness Services Coordinator Tonya Jones.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Manhattan U.S. Attorney Announces Arrests of Operators of Multi-State Prostitution RingRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Angel M. Melendez, Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations in New York (“HSI”), announced today the arrest of GUI YOU WU, a/k/a “David, a/k/a “Michael,” YOUMEI CHEN, a/k/a “Ah Mei,” a/k/a “You Mei Chen,” GUIXIA WU, and HONG ZHONG, a/k/a “5023,” a/k/a “023,” stemming from a conspiracy to engage in the interstate trafficking of women, primarily Chinese nationals, for the purposes of prostitution. GUIXIA WU was arrested in Bronxville, New York, and the other three defendants were arrested in Flushing this morning. They will be presented today before U.S. Magistrate Judge Paul E. Davison in White Plains federal court.
U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants promoted and managed a multi-state prostitution business through an extensive network of operators who worked in different locations to advertise and facilitate prostitution. These defendants then allegedly raked in millions dollars from their illegal and exploitive activities.”
FBI Assistant Director-in-Charge William F. Sweeney said: “Prostitution is a serious and harmful offense. And, in some cases prostitution can serve as a gateway for criminals with direct connections to human trafficking, organized crime, and other illegal activities. The migratory nature of these crimes makes it critical for law enforcement entities to work together to tackle this widespread dilemma. We will continue to support our law enforcement partners who play a critical role in combating this type of criminal activity.”
HSI Special Agent-in-Charge Angel M. Melendez said: “For years these individuals allegedly used women as a commodity, selling them for sex and transporting the women from hotel to motel and state to state. For those who choose trafficking of people as a profession, you will be arrested, you will be prosecuted, and you will face the consequences of your actions.”
According to the Indictment[1] unsealed today in federal court:
Between about 2013 and 2017, GUI YOU WU was the manager of a business engaged in the interstate trafficking of women, primarily Chinese nationals, for the purposes of prostitution (the “Prostitution Business”). As part of the Prostitution Business, GUI YOU WU and others transported women for the purposes of prostitution to and from hotels and motels in multiple states, including New York, Connecticut, Delaware, Maryland, Virginia, Colorado, Missouri, and elsewhere, by means of vehicles and through the purchase of airline tickets.
The Prostitution Business recruited customers through the placement and purchase of advertisements for escort services on classified websites such as Backpage.com. CHEN, GUIXIA WU, and ZHONG assisted GUI YOU WU in the promotion and management of the Prostitution Business through, among other things, payment for hotels and other business expenses, placement of advertisements, coordination of travel, communication with women working as prostitutes, and the movement and receipt of proceeds from the Prostitution Business.
GUI YOU WU also employed several individuals, including ZHONG, as telephone operators for the Prostitution Business (the “Operators”). The Operators placed advertisements to recruit customers for the Prostitution Business and used cellphones to coordinate between the customers and the prostitutes.
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GUI YOU WU, 46, of Flushing, CHEN, 51, of Flushing, GUIXIA WU, 49, of Bronxville, and ZHONG, 37, of Flushing, are each charged with one count of conspiring to violate the Mann Act and the Travel Act by conspiring to transport an individual or individuals in interstate commerce with the intent that such persons engage in prostitution, or any sexual activity for which a person can be charged with a criminal offense, and by traveling in interstate commerce or causing someone else to travel in interstate commerce or using or causing to be used the mail and facilities in interstate and foreign commerce, with the intent to promote, manage, establish, carry on, and facilitate unlawful prostitution and promotion of prostitution, which carries a statutory maximum penalty of 10 years in prison. GUI YOU WU is also charged with violating the Mann Act by knowingly transporting an individual in interstate commerce with the intent that the individual engage in prostitution and sexual activity on or about February 25, 2016, which carries a statutory maximum penalty of 10 years in prison.
The statutory maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Any individuals who believe they have information that may be relevant to the investigation should contact the FBI at 212-384-1000 or https://tips.fbi.gov/.
Mr. Berman praised the work of the FBI and HSI and thanked the Orange County District Attorney’s Office, the Sullivan County District Attorney’s Office, and the Orange County Sheriff’s Office for their assistance with this investigation. He added that the investigation is continuing.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Jessica Feinstein, Allison Nichols, and Jamie Bagliebter are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Mandeville Financial Adviser Convicted of Stealing up to $1.5 Million from InvestorsRead the Press Release
United States Attorney Brandon J. Fremin announced today the conviction of a Mandeville investment adviser who stole up to $1.5 million from investors in a widespread investment fraud scheme.
On March 26, 2018, RALPH WILLARD SAVOIE, age 70, of Mandeville, Louisiana, pled guilty to mail fraud before U.S. District Judge Shelly D. Dick. As a result of his guilty plea, SAVOIE faces a significant term of imprisonment, fines, restitution orders, forfeiture, and a term of supervised release following imprisonment. A sentencing date has not yet been scheduled.
As SAVOIE acknowledged in court during his guilty plea, from in or about January 2013 through at least March 2016, he executed a scheme to defraud victim investors by means of materially false and fraudulent pretenses, promises, and representations. SAVOIE told his victim investors that he would invest their funds in securities and insurance, and described the investment opportunities as a “sure thing.” SAVOIE also guaranteed the victim investors high rates of return. However, instead of investing the funds as promised, SAVOIE spent the victim investor funds on jewelry, hotels, and restaurants, and withdrew the funds in cash. SAVOIE also used victim investor funds to pay his credit card bills and rent and to pay off other victim investors who had previously invested their money with him.
Towards the end of SAVOIE’S fraudulent scheme, a victim investor confronted SAVOIE about his investment. SAVOIE admitted to the victim investor that what he did with the victim investor’s money was illegal. Despite admitting his criminal conduct, SAVOIE later told the victim investor that he would never see his money returned if he reported the matter to law enforcement. SAVOIE also concealed from victim investors that the Financial Industry Regulatory Authority, an organization dedicated to market integrity and investor protection, had barred him from acting as a broker or otherwise associating with firms that sell securities to the public. During his guilty plea, SAVOIE admitted that he stole up to $1.5 million from investors.
U.S. Attorney Fremin stated, “My office, along with our federal, state, and local partners, is committed to aggressively pursuing corrupt professionals who abuse their positions of trust to fraudulently line their own pockets. I greatly appreciate the efforts of those prosecutors and agents with my office, IRS-CI, the Louisiana Office of Financial Institutions, and the Louisiana Bureau of Investigation who have worked together on this important matter.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Internal Revenue Service Criminal Investigation Division, with the assistance of the Louisiana Office of Financial Institutions and the Louisiana Bureau of Investigation, a section of the Louisiana Department of Justice. It is being prosecuted by Assistant United States Attorney Ryan Rezaei.
Luzerne County Man Sentenced to 27 Months in Prison for Role in Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that Cleveland Linder, age 33, of Plymouth, was sentenced on March 23, 2018, by Senior U.S. District Court Judge James M. Munley to serve 27 months in prison for his role in a heroin trafficking conspiracy that operated in Luzerne County during 2014.
According to United States Attorney David J. Freed, Linder previously pleaded guilty to conspiring with others to distribute heroin. Linder admitted to being involved in the distribution of more than 60 grams and less than 80 grams of heroin, which is equivalent to between 2,500 and 3,300 retail bags of heroin.
Judge Munley also ordered Linder to serve three years on supervised release following his prison sentence.
The investigation resulted in the arrest of ten people connected to the drug ring, all of whom pleaded guilty. Desmond Mercer, the leader of the conspiracy, was sentenced to 14 years in prison. Two key associates, Shaquan Murphy and Shaliek Stroman, were each sentenced to 12 ½ years in prison. Another member of the drug ring, Antoine Jamison, received a five-year prison sentence. Omar Bell, another member of the drug ring, was recently sentenced to 52 months in prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Pennsylvania State Police, and Kingston Police. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Justice Department and West Palm Beach Announce Settlement Related to the City’s Resolution and the Department’s Immigration Cooperation Grant ConditionsRead the Press Release
The Department of Justice and the City of West Palm Beach announced today that they had reached an agreement regarding Resolution Number 112-17. The Department had been investigating whether West Palm Beach’s Resolution Number 112-17 and polices related to the resolution comply with 8 U.S.C. § 1373, which protects information sharing between local law enforcement and the Department of Homeland Security (DHS).
Following the City’s agreement to, and subsequent dissemination of, a memorandum from West Palm Beach to its employees stating West Palm Beach’s position that its local laws do not restrict information sharing with DHS, the Department issued a letter to West Palm Beach concluding its section 1373 review. The letter stated, “[i]n light of our ongoing discussions and your agreement to and sending of a memorandum to all employees stating that they are not restricted from sharing information with DHS, we find no evidence that you are currently out of compliance with section 1373.”
West Palm Beach also agreed to dismiss its lawsuit requesting a declaration that its Resolution complies with federal law and challenging the Department’s authority to impose immigration cooperation-related grant conditions.
Today’s settlement protects public safety by providing assurance that West Palm Beach’s Resolution, as interpreted by West Palm Beach, does not violate section 1373, and permits DHS to receive the information it may need to take custody of aliens who commit crimes.
Justice Department Sues to Shut Down LaGrange, Georgia Tax Return PreparerRead the Press Release
The United States sued in federal court in Newnan, Georgia, to permanently bar Lucrezia Finch Henderson from preparing federal income tax returns for others, the Justice Department announced today. The complaint alleges that Henderson unlawfully reported information on her customers’ returns that resulted in the customers claiming more tax credits and refunds than they were entitled to receive.
As alleged in the complaint, Henderson engaged in abusive tax schemes such as reporting fake businesses on her customers’ returns in order to generate losses to lower their tax liabilities. Henderson falsely claimed education credits for customers who did not attend college that year, according to the complaint. According to that complaint, Henderson prepares tax returns at Infinity Tax located at 104 Sage Commercial Drive, Suite B, in Lagrange, Georgia.
The IRS has a list of steps on their website that you can take now in anticipation of filing your 2017 federal income tax return and ten tips for choosing a tax preparer. Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2018 and taxpayers seeking a return preparer should remain vigilant. The IRS has some information on their website about selecting a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Files Lawsuit to Shut Down St. Louis Tax Preparation BusinessRead the Press Release
A mother-daughter tax return preparer team in St. Louis, Missouri, prepares false federal income tax returns for their customers, according to a new lawsuit filed by the Department of Justice today. The suit asks the court to permanently bar Cherlynn Harrington, Linda McClendon, and their business Goodlink, LLC d/b/a Goodlink Tax Services from preparing federal income tax returns for others. The complaint alleges that defendants unlawfully understate their customers’ income tax liabilities and overstate their customers’ refunds.
The complaint alleges that Harrington and McClendon fabricate income and/or expenses in order to improperly claim the Earned Income Tax Credit (EITC), sometimes charging their customers more than $1,500 to prepare these false tax returns. In some cases, Harrington made unauthorized withdrawals from debit cards loaded with her customers’ false tax refunds according to the complaint.
The IRS has a list of steps on their website that you can take now in anticipation of filing your 2017 federal income tax return. Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2018 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jury Convicts Tipton Man of Producing Child PornographyRead the Press Release
A man who produced child pornography involving a prepubescent child and traded child pornography with others was convicted by a jury on Friday, March 23, 2018, after a four-day trial in federal court in Cedar Rapids.
Christian Hansen, age 40, from Tipton, Iowa, was convicted of one count of sexual exploitation of a child, one count of sexually exploiting a child while being required to register as a sex offender, one count of distribution of child pornography, one count of receipt of child pornography, and five counts of possession of child pornography.
The evidence at trial showed that, in July 2017, Hansen took photos of a prepubescent child’s genital area and e-mailed the photos to others. Hansen also traded child pornography with others and possessed child pornography on multiple devices. At the time of these offenses, Hansen was required to register as a sex offender based on his 2011 Nebraska convictions for three counts of possession of child pornography.
Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Hansen remains in custody of the United States Marshal pending sentencing. Hansen faces a mandatory minimum sentence of 35 years’ imprisonment and a possible maximum sentence of 240 years’ imprisonment, a $2,250,000 fine, $45,900 in special assessments, and supervised release for 5 years to life following any imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by Homeland Security Investigations, the Iowa Division of Criminal Investigation, the Tipton Police Department, and the Cedar Rapids Police Department.
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.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 17-99.
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Iowa Hospital to Pay $1.88 Million to Resolve False Claims Act Allegations Relating to Improper Inpatient Admission ClaimsRead the Press Release
DAVENPORT, Iowa – Genesis Medical Center, an acute care hospital in Davenport, has agreed to pay $1.88 million to the United States to resolve allegations it violated the False Claims Act.
The settlement resolves claims that, from January 1, 2013, to December 31, 2016, Genesis violated the False Claims Act by improperly retaining Medicare overpayments for hospital inpatient admission claims when those claims should have been billed at the lower reimbursement rate for either outpatient or observation services. The False Claims Act claims resolved by this settlement are allegations only and there has been no determination of liability.
“Our office will aggressively use the False Claims Act to ensure all health care providers play by the same rules and taxpayers do not pay the bill for unnecessary services,” said Marc Krickbaum, United States Attorney for the Southern District of Iowa. “This recovery sends the message to health care providers there will be consequences if they fail to comply with state and federal regulations. We also note and appreciate the hospital’s cooperation throughout the investigation.”
The United States Attorney’s Office for the Southern District of Iowa, in conjunction with the United States Attorney’s Office for the Northern District of Iowa, initiated this case. False Claims Act cases can also be brought under the qui tam provisions of the Act, which encourage whistleblowers to bring suit on behalf of the United States and share in any recovery.
Hazleton Men Indicted for Trafficking Heroin and Crystal MethamphetamineRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Daniel Silvestre-Ubri a/k/a Joel DeJesus-Marquez, a/k/a Mayor, age 38, and Willis De La Rosa, a/k/a Joey Reyes Arroyo, a/k/a Willie, age 32, both of Hazleton, Pennsylvania, were indicted by a federal grand jury on May 17, 2016, for drug trafficking offenses. The indictment remained under seal until both defendants were apprehended, De La Rosa in June 2016 and Silvrestre-Ubri in March 2018. Both men were detained following their initial appearances before the court.
According to United States Attorney David J. Freed, the indictment charges Silvestre-Ubri and De La Rosa with conspiring to distribute heroin and in excess of 500 grams of crystal methamphetamine from February through April 2016. The indictment also charges Silvestre-Ubri with distributing heroin and crystal methamphetamine on March 24, 2016.
The case was investigated by Homeland Security Investigations, the Pennsylvania Office of the Attorney General and the Pennsylvania State Police. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This case also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The penalties under federal law for the most serious offenses are a minimum of 10 years and a maximum of life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Grand Island Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Joseph P. Kelly announced that on March 27, 2018, Rowden D. Schneberger, 32, of Grand Island was sentenced to 14 years and five months (173 months) in federal prison for possession with intent to distribute five grams or more of actual methamphetamine on November 7, 2016. Following the prison term, Schneberger will serve four years on supervised release.
On November 7, 2017, Schneberger sold approximately one ounce of methamphetamine to a confidential informant in Grand Island. Testing at the State Lab showed at least 25 grams of actual/pure methamphetamine.
This case was investigated by the Central Nebraska Drug and Safe Streets Task Force.
Golden Company Sentenced for Violating the Clean Air ActRead the Press Release
DENVER – OE Construction Corporation, a Golden-based excavation and underground utility company, pled guilty yesterday to being an accessory after the fact to violating the Clean Air Act. U.S. Magistrate Court Judge Kristin L. Mix sentenced OE to pay a $15,000 fine and up to $55,000 in restitution to companies that purchased modified trucks from OE. She also sentenced OE to three years of supervised probation, during which time the government will closely monitor OE’s trucks to ensure that their emissions systems are in compliance with state and federal law.
According to the plea agreement, an employee at OE worked with a Canadian company called J-Ball Electronics to falsify the monitoring devices required by the Clean Air Act on at least six OE Construction-owned vehicles. The OE Construction employee purchased kits from J-Ball that allowed him to alter the vehicles’ emission control systems. The effect of these modifications was to dramatically increase the release of dangerous pollutants from these vehicles, including particulate matter, NOx (mono-nitrogen oxides), and hydrocarbons.
When contacted by the government concerning these Clean Air Act violations, OE Construction admitted that four vehicles had been modified, and assured the government that only the four vehicles had been tampered with and that it had repaired the four vehicles. However, OE Construction did not reveal that J-Ball and OE’s employee had modified at least two other vehicles that OE Construction intended to put up for auction. In this way, OE attempted to avoid detection, prosecution, and punishment for the additional vehicles that the OE employee had modified.
“We take seriously our job of protecting the environment in Colorado, and we won’t hesitate to prosecute corporations or individuals committing environmental crimes,” said U.S. Attorney Bob Troyer.
“Emission control devices for vehicles are required to ensure public health and safety,” said Jeffrey Martinez, special agent in charge of EPA’s criminal enforcement program in Colorado. “The illegal actions in this case were not isolated incidents or mistakes; they were deliberately and carefully planned. Today’s sentencing shows that EPA and its law enforcement partners will hold responsible those who violate laws designed to protect the health of our communities.”
This matter was investigated by the EPA’s Criminal Investigation Division. The prosecution was handled by Assistant U.S. Attorneys Rebecca Weber and Suneeta Hazra.
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Georgia Man Admits Using Fictitious Businesses for $530,000 Unemployment Insurance, Tax Fraud SchemeRead the Press Release
NEWARK, N.J. – A Georgia man today admitted devising a scheme in which he and others fraudulently collected unemployment benefits and tax refunds by pretending to have worked for several phony companies that he created, U.S. Attorney Craig Carpenito announced.
Lashawn Porcher, 32, of Lawrenceville, Georgia, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of conspiracy to commit mail fraud and one count of aiding and assisting in the filing of a false tax return.
According to documents filed in this case and statements made in court:
Porcher incorporated numerous fictitious businesses in New Jersey, including Computer Tyme Corporation, Cleaning Experience Corporation, Cleaning Time, and The Dream Team, all of which did not conduct any actual business and had no offices, employees, or officers.
From February 2010 through June 2014, Porcher used Computer Tyme Corporation and Cleaning Experience Corporation to seek unemployment insurance benefits for himself and other conspirators based on false claims that they had received compensation as employees of these companies.
To carry out the scheme, Porcher submitted fraudulent wage reports to the N.J. Department of Labor and Workforce Development for himself and others. He also supplied his conspirators with false wage records so that they could submit false claims as well. As a result, Porcher and others were able to fraudulently receive $436,982 in unemployment benefits.
In addition, Porcher used Cleaning Time and The Dream Team to prepare false federal tax returns for himself and other purported employees of these fictitious companies. Porcher admitted falsifying information on W2 forms concerning their wages in order to obtain inflated tax refunds for tax years 2009 through 2012. As a result, he and other conspirators fraudulently collected approximately $103,276 in tax refunds.
The mail fraud conspiracy charge carries a maximum potential penalty of 20 years in prison. The filing of a false tax return charge carries a maximum potential penalty of three years in prison. Both charges carry a potential $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 11, 2018.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Labor Office of Inspector General, under the direction of Acting Special Agent in Charge Peter Nozka in New York, special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, and postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s Office Special Prosecution’s Division in Newark.
Defense counsel: Leticia M. Olivera Esq., Office of the Federal Public Defender, Newark
Four Clarksburg men admit to their roles in a drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Four Clarksburg residents have admitted to their roles in a drug distribution operation, United States Attorney Bill Powell announced.
Ernest Russell Claypool, Jr., age 53, pled guilty to one count of “Aiding and Abetting the Possession of Firearm in Furtherance of Drug Trafficking Crime” and one count of “Maintaining Drug-Involved Premises-Aiding and Abetting.” Claypool admitted to having 20 different firearms, including pistols, shotguns, rifles, and revolvers, during and in relation to a drug trafficking crime. He also admitted to maintaining a property in Clarksburg for distributing heroin and storing and distributing marijuana. The crimes occurred from an unknown date until September 2017 in Harrison County.
Chadley Russell Claypool, age 32, pled guilty to one count of “Conspiracy to Distribute Heroin” and one count of “Distribution of Fentanyl.” Claypool admitted to distributing heroin in Harrison County from an unknown date to September 2017. He also admitted to selling fentanyl in August 2017 in Harrison County.
Colton Justice Kallel, age 22, pled guilty to one count of “Distribution of Fentanyl” and one count of “Aiding and Abetting the Distribution of Fentanyl in Proximity of a Protected Location.” Kallel admitted to selling fentanyl on July 11, 2017 in Harrison County. He also admitted to selling fentanyl near Clarksburg City Park, on July 31, 2017 in Harrison County.
Zachery Allen Queen, age 26, pled guilty to one count of “Aiding and Abetting the Distribution of the Controlled Substance Analogue Cyclopropylfentanyl.” Queen admitted to selling the drug in August 2017 in Harrison County.
Ernest Claypool faces up to life incarceration and a fine of up to $250,000. Chadley Claypool and Queen each face up to 20 years incarceration and a fine of up to $1,000,0000 for each count. Colton Kallel faces up to 20 years incarceration and a fine of up to $1,000,0000 for the first count, and faces up to 40 years incarceration and a fine of up to $2,000,000 for the second count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook is prosecuting the cases on behalf of the government. The case was investigated by the Greater Harrison Drug and Violent Crimes Task Force and the West Virginia State Police Bureau of Criminal Investigation.
U.S. Magistrate Judge Michael John Aloi presided.Former Union Official Sentenced to 10 Months in Prison for Stealing More Than $130,000 from OrganizationRead the Press Release
WASHINGTON – Takisha Brown Dorsey, a former union official with the Fraternal Order of Police, was sentenced today to 10 months in prison on a federal charge stemming from her theft of more than $130,000 from the organization, announced U.S. Attorney Jessie K. Liu and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office.
Brown Dorsey, 42, of Waldorf, Md., pled guilty in March 2017 to a charge of wire fraud, in the U.S. District Court for the District of Columbia. She was sentenced by the Honorable Reggie B. Walton. Following her prison term, Brown Dorsey will be placed on six months of home confinement and three years of supervised release. Judge Walton also ordered her to pay $132,305 in restitution and an identical amount in a forfeiture money judgment.
According to a statement of offense filed at the time of the plea, Brown Dorsey took office in January 2012 as the elected chairperson of the union representing correctional officers employed by the District of Columbia Department of Youth Rehabilitation Services (DYRS). She led the Fraternal Order of Police-DYRS, which has approximately 240 members, through December 2015. As chairperson, Brown Dorsey, who also was a correctional officer, had access to union funds and was authorized to spend union money in accordance with bylaws.
In 2014, Brown Dorsey removed a safeguard requiring a second signature on all union checks, making herself the only required signatory. She also was the only one who had access to the union’s bank account and the ATM card that was associated with it. On Nov. 24, 2015, the union took a vote of no confidence in Brown Dorsey, and soon after that, members of the union’s executive board visited the Bank of America to inquire about the union’s finances. The balance was only $277, even though more than $100,000 in union dues were deposited into the account in calendar 2015. At the time that Brown Dorsey resigned, in December 2015, the union was about $92,000 in debt; at the beginning of her tenure, the union had a balance of $49,100.
A subsequent investigation determined that, from April 2013 through December 2015, Brown Dorsey withdrew, debited, or transferred more than $130,000 from the union’s bank account for her personal use or for deposit into her personal account.
In announcing the sentence, U.S. Attorney Liu and Assistant Director in Charge Vale commended the work of those who investigated the case from the FBI’s Washington Field Office. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Aisha Keys and Kristy Penny, former Special Assistant U.S. Attorney Vesna Harasic-Yaksic, who assisted with forfeiture issues, and Assistant U.S. Attorney Kendra D. Briggs, who prosecuted the matter.
Former Pratt School Secretary Indicted on Federal Firearms ChargesRead the Press Release
WICHITA, KAN. – A former Pratt school secretary was indicted Tuesday on federal firearms charges, U.S. Attorney Stephen McAllister said.
Claudia Rodriguez-Oviedo, 33, a citizen of Mexico, was indicted on two counts of unlawful possession of a firearm by an alien illegally in the United States. The indictment alleges that on Nov. 8, 2017, she possessed a Remington handgun and 35 rounds of ammunition.
Rodriguez-Oviedo currently is serving a 12-month sentence after she was convicted in Pratt County District Court on charges of placing a fake bomb threat to USD 382 in Pratt.
If convicted, she faces a sentence of up to 10 years in federal prison and a fine up to $250,000 on each count. Immigration and Customs Enforcement’s Enforcement and Removal Operations (ERO) investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
OTHER INDICTMENTS
Jerry A. Anderson, Jr., 32, Hutchinson, Kan., is charged with one count of bank robbery. The indictment alleges that on March 8, 2018, he robbed the Meritrust Credit Union at 2900 S. Oliver in Wichita.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
Javier Pichardo, 55, a citizen of Mexico, is charged with one count of illegal re-entry after being deported (count one), one count of unlawful production of an identification document (count two), one count of misuse of a Social Security number (count three) and one count of aggravated identity theft (count four). The crimes are alleged to have occurred in 2017 and 2018 in Sedgwick County, Kan.
Upon conviction, he faces up to two years in federal prison and a fine up to $250,000 on count one, up to 15 years and a fine up to $250,000 on count two, up to five years and a fine up to $250,000 on count three, and a mandatory two years (consecutive) on count four. Immigration and Customs Enforcement’s Enforcement Removal Operations (ERO) investigated. Assistant U.S. Attorney David Lind is prosecuting.
Cindy Hernandez, 33, Moreno Valley, Calif., is charged with one count of possession with intent to distribute five kilograms or more of cocaine. The crime is alleged to have occurred Feb. 11, 2018, in Wabaunsee County, Kan.
If convicted, she faces a penalty of not less than 10 years and a fine up to $10 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Skip Jacobs is prosecuting.
John Johnson, 41, Canal Winchester, Ohio, and Catherine Boyd, 36, Grove City, Ohio, are charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred March 8, 2018, in Wabaunsee County Kan.
If convicted, they face a penalty of not less than 10 years in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Skip Jacobs is prosecuting.
Donya Swayden, 34, Medicine Lodge, Kan., is charged with three counts of embezzlement from the U.S. Postal Service and three counts of making false entries in postal records. The crimes are alleged to have occurred in 2017 in Pratt County, Kan.
The indictment alleges she issued three postal orders to customers who did not pay for them.
If convicted, she faces up to five years in federal prison and a fine up to $250,000. The U.S. Postal Service investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Former NYPD Officer Sentenced to More Than 14 Years in Prison on Extortion and Firearms ChargesRead the Press Release
Earlier today in federal court in Brooklyn, Besnik Llakatura was sentenced by United States District Judge Eric N. Vitaliano to 171 months’ imprisonment, to be followed by a term of five years’ supervised release, for his convictions on two counts of Hobbs Act extortion conspiracy and one count of brandishing a firearm in relation to a crime of violence. The charges relate to the defendant’s participation in two schemes to extort small business owners in Astoria, Queens. At the time of his crimes, Llakatura was an active-duty police officer with the New York City Police Department (NYPD) assigned to the 120th Precinct on Staten Island. Llakatura was suspended without pay upon his arrest in December 2013 and dismissed from the NYPD following his guilty plea in December 2015. The Court also imposed restitution in the amount of $10,000 and forfeiture in the amount of $10,000.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, NYPD, announced the sentence.
“In flagrant violation of his sworn duty to serve and protect the community, former police officer Llakatura, along with his criminal partners, used fear, intimidation and threats of violence to demand payment from hard-working citizens who dared to open businesses on their so-called ‘turf’ of Astoria, Queens,” stated United States Attorney Donoghue. “Today’s sentence drives home the message that no one is above the law and a police officer who commits crimes against the community he serves will be held fully accountable.” Mr. Donoghue extended his grateful appreciation to the members of the Joint Organized Crime Task Force, which includes agents of the FBI and detectives of the NYPD, which led the investigation, as well as the NYPD’s Internal Affairs Division for their cooperation and assistance in the investigation.
“Besnik Llakatura took an oath to serve and protect the citizens of New York City as an officer of the NYPD, while simultaneously pledging his allegiance to a violent organized crime group bent on shaking down local Queens business owners within the Albanian community,” stated FBI Assistant Director-in-Charge Sweeney. “He quickly discovered what happens to those who find themselves on the wrong side of the law, and after his guilty plea, was stripped of his shield of honor. Today’s sentence is a reminder that even those who enforce the rules will still be held to their highest standards.”
According to prior court filings and evidence presented at the trial of co-defendant Dervishaj, between May and November 2013, Llakatura, Dervishaj and Nikolla conspired and attempted to extort a Queens restaurant owner, demanding monthly payments in exchange for so-called “protection.” Shortly after the victim opened a restaurant in Astoria, Dervishaj demanded $4,000 per month because the victim had opened it in “our neighborhood.” The victim sought help from his friend Llakatura, at the time an NYPD officer. Unbeknownst to the victim, Llakatura was already conspiring with Dervishaj and Nikolla in the extortion scheme. Llakatura actively discouraged the victim from reporting the extortion to the police, and warned the victim that Dervishaj would hurt him and had ties to dangerous Albanian organized crime figures – including his brother Plaurent Dervishaj, at the time Albania’s most wanted fugitive. When the victim failed to make the demanded payments, Nikolla – accompanied by Dervishaj – threatened him on a public street in Queens and chased him at gunpoint, before the victim managed to escape in his car. Shortly thereafter, Dervishaj called the victim and told him that he “got lucky this time.” Over the course of five months, each of the three defendants took turns collecting monthly extortion payments totaling $24,000.
During the same time period, Llakatura and his co-defendants also conspired and attempted to extort a proprietor of two social clubs in Astoria. Accompanied by Dervishaj, Nikolla demanded payments of $1,000 per week, once again for “protection.” The victim refused to make the demanded payments and stopped going to his social clubs out of fear for his safety. Court-authorized wiretaps of the defendants’ telephones revealed that all three defendants worked together to locate the victim and force him to pay. In one instance, the defendants confronted a friend of the victim in an effort to find the victim and send him a message. Llakatura and his co-defendants threatened, punched and pulled a gun on the victim’s friend, leaving him with injuries to his face. Upon learning of this assault, the extortion victim fled to a foreign country for a period of time to avoid the defendants’ extortionate threats, and later sold his social clubs.
Co-defendant Redinel Dervishaj, who was convicted of 12 extortion and firearms counts after a three-week trial, was previously sentenced on March 24, 2017 to 57 years’ and one day of imprisonment. Co-defendant Denis Nikolla, who previously pled guilty to three extortion counts and one firearms count, was sentenced on March 10, 2017 to 18 years’ imprisonment.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Nadia Shihata, Patrick Hein and M. Kristin Mace are in charge of the prosecution.
The Defendant:
BESNIK LLAKATURA
Age: 38
Residence: Staten Island, New YorkE.D.N.Y. Docket No. 13-CR-668 (ENV)
Former Lincoln Accountant Sentenced for Wire FraudRead the Press Release
United States Attorney Joseph P. Kelly announced that Sarah E. Batenhorst, 42, of Lincoln, Nebraska, was sentenced in Lincoln, Nebraska, to 10 months in prison by United States Senior District Judge Richard G. Kopf, for wire fraud. Batenhorst was also ordered to serve a period of 3 years on supervised release and pay restitution in the amount of $343,773.55.
From 2006 to 2016 Batenhorst worked as an assistant bookkeeper and then accountant at the Nebraska Rural Electric Association (NREA) with access to the NREA checking account. Beginning in 2014, without authorization or approval of the NREA board or other officers, Batenhorst increased her annual salary. Also in 2015, Batenhorst, began increasing printing and set-up rates for the Rural Electric Nebraska magazine, and used the increased income to pay her own Discover credit card account and personal loans.
Additionally, Batenhorst paid her Discover credit card and personal loan accounts from checks fraudulently written on the NREA account and then, to conceal her actions, she altered copies of those checks and also altered the NREA bank statements. These checks were processed through wire transfers from Nebraska, in interstate commerce, through intermediate banks, to the bank used by Discover Card, located in the state of Delaware.
This case was investigated by the Federal Bureau of Investigation and the Lincoln Police Department.
Former Car Dealership General Manager Sentenced to 11 More Months in Prison for Fraud SchemeRead the Press Release
ERIE, Pa. - A former resident of Edinboro, Pennsylvania, has been sentenced in federal court to 11 months in jail on his conviction of violating federal bankruptcy laws, conspiracy to commit wire fraud and wire fraud in two separate cases, United States Attorney Scott W. Brady announced today. The sentence imposed will be consecutive to the two-year sentence the defendant is presently serving.
United States District Judge David S. Cercone imposed the sentence on Douglas Alan Grooms, 47.
According to information presented to the court, Grooms concealed property from the United States Bankruptcy Trustee in connection with his bankruptcy case. In addition, from in and around May 2015, to in and around March 2016, Grooms and two co-defendants engaged in a scheme to defraud auto loans providers by utilizing two straw purchasers to buy vehicles in their own names from Rick Weaver Buick GMC. The vehicles would then actually remain in a co-defendant's possession. The three facilitated the scheme by falsifying the loan applications to make the straw purchasers appear more credit worthy and by not revealing that the straw purchasers were buying multiple vehicles at the same time. The value of many of the vehicles was also inflated to increase the funds received by the co-conspirators.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation, the Pennsylvania State Police and the Erie Police Department for the investigation leading to the successful prosecution of Grooms.