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Friday 16 March 2018
Massachusetts Man Sentenced for Trafficking Methamphetamine Through the MailRead the Press Release
BOSTON – A Massachusetts man was sentenced today in federal court in Boston after receiving more than 30 packages of methamphetamine through the mail.
Robert Annette, 58, of Somerville and Provincetown, was sentenced by U.S. District Court Judge Leo S. Sorokin to two years in prison and four years of supervised release. In November 2016, Annette pleaded guilty to conspiracy to possess with intent to distribute and to distribute methamphetamine.
From approximately 2011 through October 2013, Annette and others trafficked methamphetamine through the United States mail. Annette collected packages of methamphetamine sent to him from San Diego by co-defendant Leonard Leseman. In 2012, a Postal Inspector, conducting a routine drug interdiction, located a suspicious package sent by Leseman and addressed to a fictitious name at Annette’s Somerville residence. When the Inspector attempted to deliver the package, Annette refused receipt. From then on, Annette arranged for a network of friends to receive the packages. In total, Leseman mailed more than 30 packages containing methamphetamine to various addresses provided by Annette. During the investigation, law enforcement officers also seized packages containing methamphetamine that Leseman sent to customers in Washington, D.C., and Carnegie, Pennsylvania.
Leseman and Annette communicated via text message to discuss the logistics for orders, shipments and payments. For example, regarding a package that Leseman sent Annette, Leseman advised him: “You’ll see 3 blind mice eating ice cream.” After Leseman mailed the package from San Diego, Postal Inspectors in Massachusetts seized the package and opened it pursuant to a search warrant. Inside the package were three toy mice and an ice cream maker with four ounces of methamphetamine hidden inside.
Five individuals involved in this activity have pleaded guilty and four have been sentenced. In September 2017, Leseman was sentenced to 10 years in prison. Steven Marszalkowski, formerly of Provincetown, was sentenced to 13 months in prison in August 2017; and Scott Hill, formerly of Randolph, was sentenced to 42 months in prison in April 2017. Lawrence Ligocki, of Chelsea, is awaiting sentencing. The government has filed charges against a sixth individual, Dennis Villas of Seattle, Wash., who is scheduled to plead guilty in April 2018 before U.S. Senior District Court Judge Rya W. Zobel.
United States Attorney Andrew E. Lelling; Raymond Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Investigative assistance was provided by the U.S. Postal Inspector Service in San Diego and Pennsylvania, the Pennsylvania State Police, the Massachusetts State Police, and the Provincetown and Truro Police Departments. Assistant U.S. Attorneys James E. Arnold and Craig E. Estes of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Man Sentenced for Threats to CIA and State Department OfficialsRead the Press Release
ALEXANDRIA, Va. – A Herndon man was sentenced today to 57 months in prison for threatening to murder officials and employees of the Central Intelligence Agency (CIA) and the U.S. State Department.
According to court documents, William Lewis Weaver, II, 36, posted multiple messages to Twitter and Pastebin in August and September 2017 regarding his intent to “shotgun” and bomb the CIA and the U.S. State Department. Weaver’s communications indicate that his threats were motivated by his anger toward the CIA and the State Department. On or about Sept. 11, 2017, Weaver sent his landlord a text message that his “focus” was on “shotguns and bombs,” and a few days later, on or about Sept. 15, 2017, Weaver attempted to purchase a shotgun from a store in Sterling. Law enforcement arrested Weaver the next day.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Bartle B. Gorman, Deputy Assistant Secretary for the U.S. Department of State’s Diplomatic Security Service, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorneys Alexander P. Berrang and Nathaniel Smith III prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-235.
Man Sentenced for Making a False Statement on Loan or Credit ApplicationRead the Press Release
United States Attorney Joseph P. Kelly announced that Melchor Ramirez-Chavez, a national of Mexico, was sentenced on March 9, 2018, in Lincoln, Nebraska, by United States District Judge John M. Gerrard, to 12 months and one day imprisonment for making a false statement on a load or credit application.
In March of 2014 the Defendant, Melchor Ramirez-Chavez, applied for a home loan from Equitable Bank using the identity of a deceased relative. The relative had received a “green card” allowing him to seek employment and other benefits under immigration laws. Ramirez-Chavez did not have legal immigration status and falsely used the identity of his deceased relative to apply for the loan.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations.
Man Pleads Guilty to Illegal Use of a Social Security NumberRead the Press Release
U.S. Attorney Duane A. Evans announced that RUFINO MEJIA-ACOSTA, a/k/a Miguel A. Pacheco-Gonzalez (MEJIA-ACOSTA), age 38, a citizen of Mexico, residing in Chalmette, Louisiana, pled guilty today to a one-count Bill of Information for illegal use of a Social Security Number, in violation of Title 42, United States Code, Section 408(a)(7)(B).
According to the Bill of Information, on or about July 3, 2017, MEJIA-ACOSTA, for the purpose of obtaining employment and for other purposes, knowingly and with intent to deceive, did falsely represent on a U.S. Citizenship and Immigration Services Employment Eligibility Verification Form that a Social Security Number not issued to him, was assigned to him.
MEJIA-ACOSTA faces a maximum term of imprisonment of not more than five years, a fine of up to $250,000.00, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Mary Ann Vial Lemmon set sentencing for April 26, 2018.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
MS-13 Gang Leader Pleads Guilty and Admits to Authorizing MurderRead the Press Release
BOSTON –The nationwide leader of MS-13’s Molinos Locos Salvatrucha clique pleaded guilty yesterday in federal court in Boston to charges of racketeering conspiracy involving murder.
Oscar Duran, a/k/a “Demente,” 27, a Salvadoran national who resided in East Boston, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO or racketeering conspiracy. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for June 8, 2018.
After a multi-year investigation, Duran was one of 61 people named in a fifth superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13. MS-13 is one of the largest criminal organizations in the United States with thousands of members across the country, including a sizeable presence in Massachusetts. MS-13 members are required to commit acts of violence, including murder, against suspected gang rivals and those suspected of cooperating with law enforcement. The fifth superseding indictment alleges that, from approximately 2014 to 2016, MS-13 cliques in Massachusetts were responsible for, among other things, six murders and approximately 20 attempted murders, as well as robberies and drug trafficking.
MS-13 is organized in Massachusetts and elsewhere in the form of so-called “cliques,” that is, smaller groups acting under the larger mantle of MS-13, with local cliques generally reporting up to national leaders, and ultimately to the leadership of MS-13 based in El Salvador. Duran was the leader of the Molinos clique for the entire United States, as well as the local Boston-area leader of the clique. In that capacity, Duran encouraged and authorized MS-13 members to commit murder. As part of today’s plea, Duran accepted responsibility for authorizing the murder of a 15-year-old who was stabbed to death on Constitution Beach in East Boston on Sept. 7, 2015.
Duran is the 35th defendant to be convicted in this case either after trial or after entering a guilty plea. He is the 6th defendant in this case to be held responsible for murder.
The charge of RICO conspiracy involving murder provides for a sentence of up to life in prison, five years of supervised release, and up to a $250,000 fine. Duran will also be subject to deportation upon the completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Laurel Man Indicted for Mail FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – A federal grand jury has indicted Adrian Brown, age 33, of Laurel, Maryland, today on mail fraud charges related to a scheme to defraud an automobile insurance company. The indictment was returned on March 14, 2018, and unsealed today upon the arrest of Brown.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Henry P. Stawinksi III of the Prince George’s County Police Department.
According to the two-count indictment, between September 2014 and January 2015, Brown allegedly made false statements to the insurance company claiming he owned a Chevrolet Caprice and that it had been stolen from an apartment complex in Maryland. However, Brown never owned the vehicle. Brown then filed an incident report with the Prince George’s County Police documenting the purported theft. During the course of the insurance investigation, Brown made several false statements about the purchasing and theft of the vehicle.
Brown faces a maximum sentence of 20 years in prison for the conspiracy.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the FBI and Prince George’s Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Menaka S. Kalaskar and Ray D. McKenzie, who are prosecuting the case.
Lafayette man pleads guilty to storing thousands of images of child pornography on laptopRead the Press Release
LAFAYETTE, La. – United States Attorney Alexander C. Van Hook announced today that a Lafayette man pleaded guilty to storing thousands of images of child pornography on his laptop.
Kevin Greer, 47, of Lafayette, pleaded guilty before U.S. Magistrate Judge Patrick Hanna to one count of transportation of obscene material. The plea will become final when accepted by U.S. District Judge Dee D. Drell. According to the guilty plea, law enforcement agents visited Greer at his home on May 17, 2017 as part of an investigation. Greer told the agents that he had used his laptop to view child pornography. Greer’s laptop contained approximately 50 videos and 4,000 images of child pornography, with some minors depicted being as young as toddlers. Greer’s desktop had internet access and was connected to a peer-2-peer network, which allowed others to access the child pornography online.
Greer faces up to 20 years in prison, five years of supervised release and a $250,000 fine. The court set the sentencing date for July 13, 2018.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
The U.S. Department of Homeland Security and Louisiana Bureau of Investigation-Cyber Crimes Unit conducted the investigation. Assistant U.S. Attorneys T. Forrest Phillips and John Luke Walker are prosecuting the case.
Lafayette man pleads guilty to controlled substance, firearms offensesRead the Press Release
LAFAYETTE, La. – United States Attorney Alexander C. Van Hook announced that a Lafayette man pleaded guilty Thursday to possessing with the intent to distribute more than 500 grams of methamphetamine after Lafayette Police Department officers recovered multiple controlled substances and a weapon within his residence.
Don Edmond Washington, 28, of Lafayette, pleaded guilty before U.S. Magistrate Judge Carol Whitehurst to one count of possession with intent to distribute a controlled substance (methamphetamine) and possession of a firearm and ammunition by a previously convicted felon. According to the guilty plea, law enforcement agents searched Washington’s home on May 17, 2017 and found methamphetamine, heroin, buprenorphine, Oxycodone, Alprazolam, one HK USP compact .45 caliber pistol with one magazine, six .45 caliber rounds and $440.
Washington faces 10 years to life in prison, five years of supervised release and a $10 million fine on the controlled substance offense, and he faces up to 10 years in prison and a $250,000 fine related to the firearms offense. The court set a sentencing date of June 18, 2018.
The DEA, ATF, Lafayette Metro Narcotics Task Force and Lafayette Police Department conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy is prosecuting the case.
Killingly Man Sentenced to 18 Months in Federal Prison for Illegal Gun PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that BLAIN S. KOLLBECK, 34, of Killingly, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 18 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on January 4, 2017, law enforcement officers removed a loaded Beretta 9mm Nano handgun and an improvised explosive device from KOLLBECK’s residence. The handgun had an obliterated serial number, and was repainted orange. The investigation revealed that Albert Bonner, also of Killingly, was the registered owner of the gun, and that Bonner provided the gun to KOLLBECK. Bonner knew that KOLLBECK was a convicted felon.
KOLLBECK has prior felony convictions in Connecticut and Florida.
KOLLBECK was arrested on a federal criminal complaint on January 10, 2017. On December 18, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
KOLLBECK, who is released on bond, was ordered to report to prison on July 10.
On July 31, 2017, Bonner pleaded guilty to one count of providing a firearm to a convicted felon. On December 22, he was sentenced to eight months of imprisonment.
This matter was investigated by the Connecticut State Police and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Anastasia E. King.
Johnson City Man Arrested for Sexual Exploitation of a MinorRead the Press Release
SYRACUSE, NEW YORK – Michael Rushmer, age 46, of Johnson City, New York, was arrested and charged with sexual exploitation of a minor, and distribution and receipt of child pornography, announced United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
FBI and Johnson City Police arrested Rushmer at his home in Johnson City, New York, on March 14, 2017. The defendant appeared in federal court in Syracuse before United States Magistrate Judge Thérèse Wiley Dancks and was ordered detained without bail pending trial.
If convicted of sexual exploitation of a child, Rushmer faces a mandatory minimum term of 15 years and a maximum sentence of 30 years in prison. Rushmer also faces a fine of up to $250,000 and a term of post-imprisonment supervised release of at least 5 years and up to life, as well as mandatory registration as a sex offender. The distribution and receipt of child pornography charges carry mandatory minimum sentences of 5 years and up to 20 years in prison on each count. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI, the Johnson City Police Department, and the Broome County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Sahar L. Amandolare.
This multi-agency approach is a hallmark of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Ithaca Man Charged with Possession of a Silencer, Explosives and Fraudulent Firearm PurchaseRead the Press Release
SYRACUSE, NEW YORK - Maximilien R. Reynolds, age 19, of Ithaca, New York, was arrested and charged with possession of a destructive device and a silencer, as well as aiding and abetting the “straw purchase” of a rifle.
The announcement was made by United States Attorney Grant C. Jaquith; Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Ashan M. Benedict, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); City of Ithaca Police Chief Pete Tyler; and Tompkins County District Attorney Matthew Van Houten.
Reynolds appeared today in United States District Court in Syracuse on a criminal complaint alleging that he possessed the silencer and destructive device in his apartment in Ithaca, and aided and abetted in the straw purchase of a rifle. The defendant has been ordered held without bail pending a hearing.
The charges alleging Maximilien R. Reynolds possessed a firearm and silencer each carry a maximum sentence of up to 10 years in prison, a term of post-imprisonment supervised release of up to 3 years, and fine of up to $10,000. The charges alleging that the defendant aided and abetted in the straw purchase of a rifle each carry a maximum sentence of up to 10 years in prison, a term of supervised release of up to 3 years, and a fine of up to $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI, the ATF, the City of Ithaca Police Department, the New York State Police, and the Cornell University Police Department, and is being prosecuted by Assistant U.S. Attorney Richard Southwick, with assistance from the Tompkins County District Attorney’s Office.
Illegal Alien Sentenced to More than 7 Years in Prison for $20M Stolen Identity Refund Fraud SchemeRead the Press Release
PITTSBURGH, Pa. –A former resident of Ozone Park, New York, has been sentenced in federal court to 87 months in prison and three years of supervised release on his conviction of conspiracy to commit wire fraud and aggravated identity theft, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Abiodun Bakre, who was in the United States illegally during the period in which he committed the offenses. In imposing sentence, Judge Cercone noted that the wire fraud conspiracy in which Bakre participated was the largest financial fraud case the Court had presided over in more than 30 years on the bench. All told, the fraud involved over $69 million in attempted losses, with more than $20 million in fraudulently obtained federal tax refunds actually being sent out by the Internal Revenue Service. The Court also noted that over 11,000 people "were the victims of this nefarious activity."
According to information presented to the court, Bakre opened numerous bank accounts using stolen identities for the purpose of using those bank accounts as repositories for fraudulently obtained federal tax refunds. In the course of the investigation, a search of Bakre’s residence uncovered multiple ledgers containing hundreds of stolen identities and numerous false identification documents which were used in furtherance of the conspiracy.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Brady commended the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of Bakre.
Honduran Man Sentenced for Immigration OffenseRead the Press Release
United States Attorney Duane A. Evans announced that ALLAN ROSALES-BENITEZ, age 32, a native of Honduras, was sentenced today after previously pleading guilty to a one-count indictment for illegal reentry of a removed alien.
United States District Court Judge Lance M. Africk sentenced ROSALES to time served (8 months), followed by one year of supervised release, and a $100 special assessment fee. The defendant will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on May 27, 2017, ROSALES was found in the United States after having been previously removed from the United States on July 11, 2012.
U.S. Attorney Evans praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
Glendale Man Sentenced for Mortgage Fraud in CarmichaelRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Koryun Hakobyan, 64, of Glendale, to two years in prison for his role as a straw buyer in a mortgage fraud scheme, U.S. Attorney McGregor W. Scott announced.
According to court documents, Hakobyan was recruited to act as a purchaser of a house in Carmichael. Hakobyan signed the loan application that was prepared for him, although he knew that the information in the application was false. Based on the false information about Hakobyan’s income, assets, employment and intent to occupy the house on July 3, 2007, the lender agreed to 100 percent financing and wired approximately $824,000 to buy the house.
Hakobyan never lived in the house, and instead, another person moved in. Two months after the purchase, Hakobyan applied for a $200,000 Home Equity Line of Credit based on a fraudulent application that misrepresented his length of ownership, his employer, gross monthly income and the outstanding loan balance. Once Hakobyan received the HELOC, he withdrew the money and transferred most of it to his daughter and son-in-law.
Because of Hakobyan’s fraudulent loan applications, banks lent more than a million dollars, and when he defaulted, the lenders lost approximately $580,000.
This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Lee S. Bickley prosecuted the case.
Franklin County Man Sentenced for Methamphetamine OffenseRead the Press Release
On March 14, 2018, Kevin W. Shuman, 41, of Benton, was sentenced to federal prison for a methamphetamine offense, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Shuman, who had previously pled guilty to a one-count indictment charging conspiracy to distribute in excess of 50 grams of methamphetamine, was sentenced to 235 months of imprisonment, to be followed by four years of supervised release. The indictment alleged that the offense occurred between December 2015 and March 2017, in Franklin and Williamson Counties. Evidence at the plea and sentencing hearings established that Shuman was involved with other persons in the distribution of ice in southern Illinois. Ice is methamphetamine, which has a purity level of at least 80 percent. At sentencing, the district court found that Shuman was responsible for the distribution of more than four kilograms of ice.
The investigation was conducted by the Southern Illinois Drug Task Force, Southern Illinois Enforcement Group, and Franklin County Sheriff’s Office.
Four defendants face fraud charges in bogus fundraising efforts for wounded military veteransRead the Press Release
Pocketed over $125,000 in funds for personal use
PRESS RELEASE
New Albany-United States Attorney Josh Minkler announced today federal charges against four individuals who are alleged to have stolen over $125,000 in an elaborate fraud scheme posing as fundraisers for America’s veterans and their families.
“Our American veterans have dutifully served this country through many wars and deserve better than to be deprived of donations from giving donors,” said Minkler. “The acts of these fraudsters have eroded the trust and good will of those who want to contribute to legitimate fundraising organizations, including those that support our veterans.”
Those charged include:
James D. Linville, 44, Clarksville, a/k/a Sergeant Bob Davis
Thomas A. Johnson, 42, Henryville, a/k/a Paul Bradley
Amy L. Bennett, 40, Henryville
Joanie Watson, 38, Clarksville
The conspiracy was led by Linville who filed paperwork with the Indiana Secretary of State’s Office to form the Wounded Warrior Fund, Inc. and the Wounded Warrior Foundation, Inc. in a scheme to solicit donations from individuals and businesses residing in Indiana, Kentucky, and Ohio. Linville and Johnson contacted businesses and individuals around the Midwest in an attempt to raise funds for the Wounded Warrior Fund and the Wounded Warrior Foundation accounts by stating the funds were for veterans and their families. They solicited funds by telephone, facsimile and in person; many individuals were led to believe they were donating to the nationally renowned Wounded Warrior Project.
Linville and Johnson are alleged to have used the aliases of “Sergeant Bob Johnson” and “Paul Bradley” when making the solicitations. By using aliases, they masked their true identity and in many cases misled the donors into believing they were being solicited by a former military member thus adding to their credibility. In one scheme, the defendants solicited for donations to purchase overseas calling cards and in another, they requested school supplies for active duty military families. Bennett and Watson would pick up checks and other donations made by individuals and businesses who intended to donate to veterans and their families. Donations made to these programs and similar fictitious campaigns for veterans were not distributed to veterans and their families; instead, the donations were used by members of the conspiracy for their personal benefit.
Throughout the conspiracy, it is alleged that the defendants collected donations from over 1000 individuals and businesses totaling over $125,000 in cash, gift cards, merchandise and in-kind donations.
The Wounded Warrior Project is a legitimate 501(c) 3 organization with offices in multiple cities around the country. It is a veteran’s charity and service organization which offers a variety of programs, services, and events for wounded veterans of the military. This organization is separate and distinct from the Wounded Warrior entities operated by the defendants.
The United States Secret Service and the Clark County Sheriff’s Department investigated this case.
“The results of this investigation are a testament to the Secret Service’s commitment to strong partnerships between local and federal law enforcement agencies,” said Richard Ferretti, Special Agent in Charge of the U.S. Secret Service Louisville Field Office. “We would like to thank the Clark County Sheriff’s Department and the U.S. Attorney’s Office – Southern District of Indiana for their hard work and partnership in this case.”
“I would like to commend the great teamwork between the Clark County Sheriff’s Office, U.S. Secret Service, U.S. Marshalls, and U.S. Attorney’s Office for bringing these individuals to justice,” stated Sheriff Jamey Noel. “The alleged crimes in this case preyed on honest, hardworking people, families, and businesses in our community under a false pretense they were helping veterans. We owe our veterans a great debt of gratitude; we will not tolerate people taking advantage of them. We will continue to work together to investigate fraudulent organizations to protect our community.”
Kyle M. Sawa is prosecuting this case for the government and said all defendants face up to 20 years imprisonment if convicted.
An indictment is only a charge and not evidence of guilt. All defendants are considered innocent until proven otherwise in federal court.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to use partnerships with law enforcement agencies to prosecute individuals who participate in large-scale fraud schemes and exploit vulnerable victims. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 5.1
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Former police chief of village in Mahoning County pleaded guilty to child pornography crimesRead the Press Release
The police chief of a village in Mahoning County pleaded guilty to child pornography crimes, law enforcement officials said.
Andrew M. Soloman, 36, is scheduled to be sentenced on June 28.
He pleaded guilty to one count of receiving and possessing visual depictions of minors engaged in sexually explicit conduct.
Soloman was the police chief of Craig Beach Village when he committed the crimes. He met the juvenile victim when responding to her residence for calls about harassment and a juvenile runaway. During their interactions, the victim sat in Soloman’s cruiser for several hours and talked. He provided her with his work email address, according to court documents.
The two continued to communicate via text and email. The victim sent Soloman sexually explicit photographs of herself and Soloman responded by sending sexually explicit photographs via his work email account. This took place from Oct. 24 through Dec. 7, 2017 according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan following an investigation by the Federal Bureau of Investigation, the Ohio Bureau of Criminal Investigation, the Mahoning County Sheriff’s Office and the Austintown Police Department.
Former Jersey City Police Officer Sentenced to 18 Months in Prison for Bribery Conspiracy Involving Off-Duty Work AssignmentsRead the Press Release
NEWARK, N.J. – A former Jersey City, New Jersey, police officer was sentenced today to 18 months in prison for paying bribes in order to obtain compensation for off-duty work he did not perform, U.S. Attorney Craig Carpenito announced.
Michael O’Leary, 35, of Jersey City, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit bribery. Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Private contractors and utility companies sometimes needed the services of off-duty Jersey City police officers for certain projects, including work in Jersey City that could obstruct the flow of traffic. O’Leary was an officer who was eligible to perform off-duty work.
From November 2013 through April 2016, O’Leary engaged in a conspiracy in which he paid bribes to another Jersey City officer who was authorized to assign off-duty work, in exchange for that officer’s official assistance in submitting phony vouchers to Jersey City indicating that O’Leary had completed certain off-duty assignments. As a result, O’Leary was compensated for work he never performed.
In addition to the prison term, Judge Vazquez sentenced O’Leary to two years of supervised release and ordered him to pay restitution of $113,145 and forfeiture of $39,587.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy A. Gallagher in Newark, with the investigation.
The Jersey City Police Department is cooperating with the investigation.
The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: John Lynch Esq., Union City, New Jersey
Former Head of Enfield Community Development Corp Pleads Guilty to Conspiring to Steal Government FundsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DARRIN LAMORE, 47, of Enfield, waived his right to be indicted and pleaded guilty today in New Haven federal court to a conspiracy offense related to his theft of government funds.
According to court documents and statements made in court, LAMORE was the executive director of the Enfield Community Development Corporation (“ECDC”), a non-profit corporation that oversees economic development projects in Enfield, primarily in the Thompsonville section of the town. The ECDC is supported with federal funds administered by the State of Connecticut. From June 2012 to October 2015, LAMORE conspired with an employee of the Town of Enfield to take funds intended for economic development in Enfield and apply them to LAMORE’s salary. To hide their fraudulent activity and to maintain funding for the ECDC, the conspirators repeatedly falsified the books and records of the ECDC.
Through this scheme, LAMORE stole more than $95,000 from the ECDC.
LAMORE pleaded guilty to one count of conspiracy to commit wire fraud and theft from a program receiving federal funds, an offense that carries a maximum term of imprisonment of five years.
As part of his guilty plea, LAMORE has agreed to cooperate with this ongoing investigation.
LAMORE was arrested on a criminal complaint on February 16, 2018. He is released on a $25,000 bond pending sentencing, which is not scheduled. The case is assigned to U.S. District Judge Alvin W. Thompson in Hartford.
This investigation is being conducted by the Connecticut Public Corruption Task Force, notably the Federal Bureau of Investigation, and the Enfield Police Department. The Task Force also includes members from the Internal Revenue Service, Criminal Investigation Division, U.S. Department of Housing and Urban Development – Office of Inspector General, the U.S. Department of Health and Human Services – Office of Inspector General, and U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Liam Brennan.
Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 203-238-0505.
Former Federal Correctional Officer Pleads Guilty in Brooklyn Federal Court to Solicitation to Commit a Crime of ViolenceRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, George Gonzalez, a former officer with the United States Bureau of Prisons, pleaded guilty to solicitation to commit a crime of violence, and possession of a firearm while subject to a protective order. The proceeding was held before United States District Judge Roslynn R. Mauskopf.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Ashan M. Benedict, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Division, announced the guilty plea.
“With today’s guilty plea, George Gonzalez will go from supervising inmates to being one himself,” stated United States Attorney Donoghue. “While he attempted to hire gang members to brutally assault his wife and another individual, the defendant’s plan was thwarted thanks to the swift reaction of our law enforcement partners, including the outstanding work of ATF undercover agents.” Mr. Donoghue expressed his grateful appreciation to the Federal Bureau of Prisons and the United States Department of Justice, Office of the Inspector General, New York Field Office, for their assistance in the investigation.
“ATF remains committed to protecting the public from individuals that seek to spread violence in their community. George Gonzalez hatched a dastardly plan that could have resulted in serious harm and or death to his estranged wife and her new partner but for the valiant efforts of law enforcement spearheaded by ATF Agents and NYPD Detectives,” stated ATF Special Agent-in-Charge Benedict. “I would like to thank the Special Agents and Task Force Officers of the NYPD/ ATF Joint Robbery Task Force, the Federal Bureau of Prisons and the Office of the Inspector General for their coordination and diligent efforts on this case. I would also like to extend my gratitude to the United States Attorney’s Office for their work in prosecuting the case.”
According to court filings and facts presented during the plea proceeding, on or about and between December 2016 and January 2017, Gonzalez engaged in multiple recorded meetings and conversations with individuals he believed to be gang members, but who were actually undercover ATF agents. During these meetings, the defendant offered to pay to have his estranged wife and her new domestic partner assaulted and tortured. Specifically, Gonzalez instructed the undercover agents that they should make it “look like a robbery” and that they could keep whatever valuable items were in the home as partial payment. The defendant suggested that the undercover agents “take a hammer to the spine” so that the victims would be paralyzed and “suffer…for the rest of their lives.” The defendant opined that he would “do it himself,” but that he had previously travelled to Florida to confront the intended targets, and the police were called. The investigation revealed that the defendant, who was assigned at the time to the Metropolitan Detention Center in Brooklyn, was subject to an Order of Protection issued in Family Court, prohibiting him from having any contact with his spouse and requiring him to surrender any firearms in his possession.
As part of the scheme, Gonzalez provided the undercover agents with photographs and pedigree information of the intended victims and offered to pay to have the undercover agents procure firearms and travel from New York to Florida. During the execution of a search warrant at the defendant's home in Staten Island, two loaded, unlicensed firearms were recovered.
When sentenced, the defendant faces a statutory maximum sentence of 12 ½ years’ imprisonment.
The government’s case is being prosecuted by Assistant U.S. Attorney Artie McConnell.
The Defendant:
George Gonzalez
Age: 55
Staten Island, New YorkE.D.N.Y. Docket No. 17-CR-51 (RRM)
Former Baltimore City Department of Transportation Supervisor Pleads Guilty to Taking Thousands in BribesRead the Press Release
March 16, 2018
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Daryl Christopher Wade, age 50, of Rosedale, Maryland, pleaded guilty today to Extortion Under Color of Official Right related to an extortion scheme.
The charges were announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Inspector General Isabel M. Cumming of the Baltimore City Office of Inspector General.
Wade was a City of Baltimore employee between 1988 through 2017, most recently with the Baltimore City Department of Transportation (“DOT”) as a Construction Project Supervisor II within the DOT’s Street Cut Unit. The DOT Street Cut Unit helps to monitor and administer fines associated with street cuts and street cut permits. According to the criminal information and the plea agreement, Wade used his official position at City of Baltimore’s Department of Transportation to claim that he could void street cut fines in return for payments.
According to the plea agreement, Wade accepted multiple cash payments, in exchange for claiming that he could erase Baltimore DOT street cut fines. Baltimore City street cut permits are required for companies who need to impede into a public street, alley, sidewalk, or other right-of-way for purposes of construction. The street cut permits are valid for 120 days before they expire, and DOT will assess a fine of $50 per day for each street cut not repaired past the expiration date.
Also according to the plea agreement, Wade and co-defendant Jerome Walter Stephens, the owner of a Baltimore construction and utilities company, either attempted to or actually extorted other business owners throughout Baltimore. In one such instance, Person A was the Vice President of a Virginia based company that provided all phases of underground utility construction and sewer rehabilitation throughout the east coast and had approximately $55 million in contracts with the City of Baltimore to restore and/or replace water and sewer lines throughout the City. Person A’s efforts to restore and/or replace water and sewer lines throughout Baltimore was in accordance with the City of Baltimore’s consent decree agreement with the Environmental Protection Agency (Civil Action No. JFM-02-1524). The purpose of the consent decree was to take all measures possible to enable Baltimore to comply with the Clean Water Act including addressing the City’s sewer lines discharging untreated sewage into the Back River, Patapsco River and the Chesapeake Bay. In order to complete those contracts, Person A's company conducted street cuts to reach water and sewer lines to restore and/or replace these water and sewer lines.
In January 2016, Person A met with Stephens at one of Person A’s offices, located in Prince George’s County, Maryland. Stephens told Person A that Person A’s company would be receiving $1.3 million in street cut fines from the street cuts unit in the near future. This was the first that Person A had learned of the $1.3 million in perspective fines. Stephens then said he had a connection in the street cuts unit that could reduce the $1.3 million in fines by 80% to $260,000, if Person A paid 20%, a $52,000 bribe, to Stephens’s connection. Stephens also stated something to the effect of: if you want to play, you got to pay. Person A made clear that he was not interested in paying the $52,000 bribe and would sue the City of Baltimore over the fines if necessary.
Also according to the plea agreement in February 2016, Person B, a local Baltimore business owner, began renovations on a restaurant in Baltimore, Maryland. Person B hired Stephens to overhaul the water lines into Person B’s business. In July 2016, Stephens informed Person B that he (Stephens) would have to cut into the road. Stephens informed Person B that the complete repaving, from curb to curb, had an estimated additional cost to Person B of between approximately $10,000 to approximately $12,000 but said he had a connection "downtown" in the City of Baltimore who could save Person B on the costs associated with completely repaving if Person B was willing to pay a bribe. Due to Person B's limited budget, and the fact that the street had already been cut, Person B agreed to pay Wade a $2,200 to repave the smaller sections of the road. Stephens and Wade next discussed how much Wade would accept and Wade agreed to a $2,200 bribe Person B gave Stephens $2,200 in cash which Stephens then gave Wade.
Finally, according to the plea agreement, Person C, who ran a plumbing and drain construction business in Baltimore, Maryland, was previously fined approximately $17,000 for street cuts in Baltimore City. In March 2016, Person C attended a Baltimore City street cut appeal hearing regarding the fine. Wade stopped the hearing and requested to speak with Person C outside the hearing. Once outside the hearing, Wade explained to Person C that if Person C helped Wade that he would help Person C.
In early September 2016, Wade met in-person with Person C and agreed to accept $5,000 to remove the offer. On September 22, 2016, Person C paid Wade the first $3,000 in cash. Wade arrived at the meeting driving a Baltimore City issued government vehicle. At the direction of Wade, Person C threw the $3,000 into Wade’s Baltimore City government vehicle. After the money was in his Baltimore City government vehicle, Wade stated “you good for life with me. . . .” and later laughed and further stated to Person C, “we in cahoots now. . . .”
Wade faces a maximum sentence of 20 years in prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for August 10, 2018 at 9:30 a.m.
Acting United States Attorney Stephen M. Schenning commended the FBI and Baltimore City Office of Inspector General for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Phil Selden and Leo Wise, who are prosecuting the case.
Florida Airplane Broker Sentenced to over Seven Years for Tax and Wire FraudRead the Press Release
A Pompano Beach, Florida, resident was sentenced today to 90 months in prison for filing fraudulent tax returns, wire fraud, and filing false monthly reports with the U.S. Probation Office announced U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents and evidence presented at trial, Timothy J. Beverley, 61, worked as an airplane broker at Majestic Jet Inc., a company in Pompano Beach that provided aircraft charters. From 2010 through 2013, Beverly stole more than $2.2 million from Majestic Jet by directing airplane escrow agents to wire funds from the sale of planes to nominee bank accounts that Beverly controlled. Beverly also stole funds directly from Majestic’s business bank accounts and used the money to pay for personal expenses including his boat and rent. Beverley did not report this income on his 2010 through 2013 personal tax returns.
The trial evidence further revealed that while working at Majestic Jet, Beverley was on supervised release stemming from his federal conviction for money laundering in January 2004. As a condition of his supervised release, Beverley was required to file monthly reports with the U.S. Probation Office that listed his net earnings from employment. Between November 2009 through October 2012, Beverley did not disclose the money he stole from Majestic Jet on his filed reports.
In addition to the term of imprisonment, U.S. District Court Judge Beth Bloom ordered Beverley to serve three years of supervised release and to pay restitution in the amount of $634,906. U.S. Attorney Greenberg and Principal Deputy Assistant Attorney General Zuckerman commended the special agents of Internal Revenue Service Criminal Investigation. This case was prosecuted by Senior Litigation Counsel Neil Karadbil of the U.S. Attorney’s Office and Assistant Chief Greg Tortella of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Airplane Broker Sentenced to over Seven Years for Tax and Wire FraudRead the Press Release
A Pompano Beach, Florida, resident was sentenced today to 90 months in prison for filing fraudulent tax returns, wire fraud, and filing false monthly reports with the U.S. Probation Office announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.
According to court documents and evidence presented at trial, Timothy J. Beverley, 61, worked as an airplane broker at Majestic Jet Inc., a company in Pompano Beach that provided aircraft charters. From 2010 through 2013, Beverly stole more than $2.2 million from Majestic Jet by directing airplane escrow agents to wire funds from the sale of planes to nominee bank accounts that Beverly controlled. Beverly also stole funds directly from Majestic’s business bank accounts and used the money to pay for personal expenses including his boat and rent. Beverley did not report this income on his 2010 through 2013 personal tax returns.
The trial evidence further revealed that while working at Majestic Jet, Beverley was on supervised release stemming from his federal conviction for money laundering in January 2004. As a condition of his supervised release, Beverley was required to file monthly reports with the U.S. Probation Office that listed his net earnings from employment. Between November 2009 through October 2012, Beverley did not disclose the money he stole from Majestic Jet on his filed reports.
In addition to the term of imprisonment, U.S. District Court Judge Beth Bloom ordered Beverley to serve three years of supervised release and to pay restitution in the amount of $634,906. Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Greenberg commended the special agents of Internal Revenue Service Criminal Investigation. This case was prosecuted by Senior Litigation Counsel Neil Karadbil of the U.S. Attorney’s Office and Assistant Chief Greg Tortella of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Five Manhattan Doctors Indicted for Accepting Bribes and Kickbacks from A Pharmaceutical Company in Exchange for Prescribing Powerful Fentanyl NarcoticRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing today of an Indictment in Manhattan federal court charging five Manhattan doctors, GORDON FREEDMAN, JEFFREY GOLDSTEIN, TODD SCHLIFSTEIN, DIALECTI VOUDOURIS, and ALEXANDRU BURDUCEA, with participating in a scheme to receive bribes and kickbacks in the form of fees for sham educational programs (“Speaker Programs”) from a pharmaceutical company (“Pharma Company-1”) in exchange for prescribing millions of dollars’ worth of a potent fentanyl-based spray manufactured by Pharma Company-1 (the “Fentanyl Spray”), among other offenses. FREEDMAN, GOLDSTEIN, SCHLIFSTEIN, VOUDOURIS, and BURDUCEA were arrested this morning. All are expected to be presented before U.S. Magistrate Judge Sarah Netburn in Manhattan this afternoon.
Also unsealed today were the guilty pleas of two former Pharma Company-1 employees, Jonathan Roper and Fernando Serrano, in connection with their participation in the bribery and kickback scheme. Both Roper and Serrano are cooperating with the Government.
Manhattan U.S. Attorney Geoffrey S. Berman said: “These prominent doctors swore a solemn oath to place their patients’ care above all else. Instead, they engaged in a malignant scheme to prescribe Fentanyl, a dangerous and potentially fatal narcotic 50 to 100 times more potent than morphine, in exchange for bribes in the form of speaker fees. Payments from pharmaceutical companies should not influence how doctors prescribe --- especially when a potent and dangerous drug like Fentanyl is involved. This scheme to use their patients as an instrument for profit has resulted in the indictment of five physicians.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “A substance as powerful as Fentanyl should be prescribed based only on doctors’ own independent medical judgment. In this case, as alleged, a series of doctors were convinced to push aside their ethical obligations and prescribe a drug for profit to patients who turned to them for help. Doctors and medical professionals everywhere should be reminded of the faith and trust placed upon them, and that the health and safety of their patients is not for sale.”
As alleged in the Indictment[1] unsealed today in Manhattan federal court:
The Fentanyl Spray
The Fentanyl Spray, which is manufactured by Pharma Company-1, is a powerful painkiller that is approximately 50 to 100 times more potent than morphine. The FDA approved the Fentanyl Spray only for the management of breakthrough pain in cancer patients. Prescriptions of the Fentanyl Spray typically cost thousands of dollars each month, and Medicare and Medicaid, as well as commercial insurers, reimbursed prescriptions written by the defendants.
The Speaker Program Bribery and Kickback Scheme
Pharma Company-1 launched a “Speakers Bureau” in or about August 2012. While the Speakers Bureau was purportedly aimed at educating other practitioners about the Fentanyl Spray, in reality Pharma Company-1 used its Speakers Bureau to induce the doctors to prescribe large volumes of the Fentanyl Spray by paying them Speaker Program fees.
Speakers were supposed to conduct a slide presentation for other health care practitioners regarding the Fentanyl Spray at each Speaker Program. In reality, many of the Speaker Programs led by the defendants were predominantly social affairs where no educational presentation about the Fentanyl Spray occurred. Attendance sign-in sheets for the Speaker Programs were frequently forged by adding the names and signatures of health care practitioners who had not actually been present.
Freedman’s Participation in the Scheme
FREEDMAN was a doctor certified in pain management and anesthesiology who owned a private pain management office on Manhattan’s Upper East Side. FREEDMAN, who was also an Associate Clinical Professor at a large hospital in Manhattan (“Hospital-1”), received approximately $308,600 in Speaker Program fees from Pharma Company-1 in exchange for prescribing large volumes of the Fentanyl Spray.
In March 2013, a Regional Sales Manager for Pharma Company-1 sent an email to FREEDMAN informing him that he would receive more Speaker Programs in the coming months because Pharma Company-1 wanted prescriptions of the Fentanyl Spray to increase, and urging FREEDMAN to put more patients on the Fentanyl Spray. FREEDMAN responded, in part, “Got it,” and significantly increased his Fentanyl Spray prescriptions in the following months, during which he received approximately $33,600 in Speaker Program fees.
In 2014, FREEDMAN’s prescriptions of the Fentanyl Spray rose even further, and he was the fourth-highest prescriber of the Fentanyl Spray nationally in the final quarter of 2014, accounting for approximately $1,132,287 in overall net sales of the Fentanyl Spray in that quarter. During 2014, FREEDMAN was the highest-paid Pharma Company-1 Speaker in the nation, receiving approximately $143,000.
GOLDSTEIN’s Participation in the Scheme
GOLDSTEIN was a doctor of osteopathic medicine who owned a private medical office on the Upper East Side. GOLDSTEIN received approximately $196,000 in Speaker Program fees from Pharma Company-1 in exchange for prescribing large volumes of the Fentanyl Spray. After GOLDSTEIN began prescribing a competitor painkiller, Pharma Company-1 pressured him to stop doing so and switch patients to the Fentanyl Spray, which GOLDSTEIN did.
In 2014, GOLDSTEIN was approximately the fifth-highest-paid Pharma Company-1 Speaker nationally. He was the sixth-highest prescriber of the Fentanyl Spray in the last quarter of 2014, accounting for approximately $809,275 in overall net sales of the Fentanyl Spray in that quarter.
SCHLIFSTEIN’s Participation in the Scheme
SCHLIFSTEIN was a doctor certified in physical medicine and rehabilitation who co-owned with GOLDSTEIN a private medical office on the Upper East Side. SCHLIFSTEIN, who also worked as an attending physiatrist and consulting physician at two other Manhattan hospitals, received approximately $127,100 in Speaker Program fees from Pharma Company-1 in exchange for prescribing large volumes of the Fentanyl Spray.
In or about October 2013, SCHLIFSTEIN expressed an interest in becoming a Speaker for Pharma Company-1. So a senior Pharma Company-1 executive traveled to New York, and took SCHLIFSTEIN, GOLDSTEIN, and others, to a Manhattan strip club where Pharma Company-1 spent approximately $4,100 on a private room, alcoholic drinks, and “lap dances” for SCHLIFSTEIN and GOLDSTEIN. In the month following that outing and SCHLIFSTEIN’s nomination as a Speaker, SCHLIFSTEIN’s Fentanyl Spray prescriptions increased substantially.
In late 2014, Pharma Company-1 significantly decreased SCHLIFSTEIN’s Speaker Programs in order to send a message to SCHLIFSTEIN that he would need to prescribe larger volumes of the Fentanyl Spray. In response, SCHLIFSTEIN repeatedly requested more Speaker Programs. Pharma Company-1 told SCHLIFSTEIN it would assign him more Speaker Programs only if he prescribed larger volumes of the Fentanyl Spray. SCHLIFSTEIN’s Fentanyl Spray prescriptions then increased substantially, and Pharma Company-1 rewarded him with more Speaker Programs.
By the end of the second quarter of 2015, SCHLIFSTEIN was approximately the 19th-highest prescriber of the Fentanyl Spray nationally, accounting for approximately $593,373 in net sales in that quarter.
VOUDOURIS’s Participation in the Scheme
VOUDOURIS was a doctor specializing in oncology and hematology who worked at a private medical office on the Upper East Side, and was an Assistant Clinical Professor at Hospital-1. VOUDOURIS received approximately $119,400 in Speaker Program fees from Pharma Company-1 in exchange for prescribing large volumes of the Fentanyl Spray.
In September 2014, VOUDOURIS, who had recently been nominated as a Speaker, had dinner with, among others, several Pharma Company-1 executives, as well as Roper and Serrano. During the dinner, the Pharma Company-1 Vice-President of Sales told VOUDOURIS that he wanted her to prescribe the Fentanyl Spray to one new patient every day, and that VOUDOURIS would be allocated Speaker Programs if she continued prescribing the Fentanyl Spray.
In the week that followed the dinner, VOUDOURIS did not prescribe what Pharma Company-1 viewed as an adequate quantity of the Fentanyl Spray. Roper and Serrano met with VOUDOURIS and told her that Pharma Company-1 expected VOUDOURIS to write more Fentanyl Spray prescriptions. In the months that followed the dinner and this conversation, VOUDOURIS’s Fentanyl Spray prescriptions rose significantly.
By the end of the first quarter of 2015, VOUDOURIS was approximately the 10th-highest prescriber of the Fentanyl Spray nationally, accounting for total net sales of the Fentanyl Spray of approximately $581,500 in that quarter.
BURDUCEA’s Participation in the Scheme
BURDUCEA was a doctor certified in pain management and anesthesiology, was an Assistant Professor of anesthesiology at Hospital-1, and practiced at an anesthesiology and pain management office associated with Hospital-1. BURDUCEA received approximately $68,400 in Speaker Program fees from Pharma Company-1 in exchange for prescribing large volumes of the Fentanyl Spray. In addition, Pharma Company-1 hired BURDUCEA’s then-girlfriend, now wife (“CC-1”), to work as BURDUCEA’s sales representative and paid her in large part based on the volume of Fentanyl Spray prescribed by her assigned doctors, including BURDUCEA.
By the end of the end of the second quarter of 2015, BURDUCEA was approximately the 14th-highest prescriber of the Fentanyl Spray nationally, accounting for total net sales of the Fentanyl Spray of approximately $621,345 in that quarter.
* * *
A chart containing the names, ages, residences, charges, and maximum penalties for the defendants is attached. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Berman praised the investigative work of the FBI, and thanked HHS OIG and the New York City Police Department for their participation in the investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Noah Solowiejczyk and David Abramowicz are in charge of the prosecution; paralegal specialist Jake Sidransky provided additional support.
Defendant
Age
Hometown
Charges (Potential Maximum Term of Imprisonment)
GORDON FREEDMAN
57
Mount Kisco, NY
Anti-Kickback conspiracy (5 years), Violation of the Anti-Kickback Statute (5 years), and Honest services fraud conspiracy (20 years)
JEFFREY GOLDSTEIN
48
New Rochelle, NY
Anti-Kickback conspiracy (5 years), Violation of the Anti-Kickback Statute (5 years), Honest services fraud conspiracy (20 years), Aggravated identity theft (2 years mandatory), Wrongful disclosure of individually identifiable health information (1 year)
TODD SCHLIFSTEIN
49
New York, NY
Anti-Kickback conspiracy (5 years), Violation of the Anti-Kickback Statute (5 years), Honest services fraud conspiracy (20 years), Wrongful disclosure of individually identifiable health information (1 year)
DIALECTI VOUDOURIS
47
Long Island City, NY
Anti-Kickback conspiracy (5 years), Violation of the Anti-Kickback Statute (5 years), Honest services fraud conspiracy (20 years), Aggravated identity theft (2 years mandatory), Wrongful disclosure of individually identifiable health information (1 year)
ALEXANDRU BURDUCEA
41
Little Neck, NY
Anti-Kickback conspiracy (5 years), Violation of the Anti-Kickback Statute (5 years), Honest services fraud conspiracy (20 years), False statements to federal officers (5 years), Wrongful disclosure of individually identifiable health information (1 year)
[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.
Felon with Firearm Sentenced to 75 Months in PrisonRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Senior United States District Court Judge Hugh Lawson sentenced Jahmal Malcom McGee, age 24, of Valdosta, GA, to 75 months of imprisonment for possession of a firearm by a convicted felon. The sentence was handed down on March 14, 2018 in Valdosta, Georgia.
Mr. McGee pled guilty to the charge on October 12, 2017. As part of the plea Mr. McGee admitted that on April 25, 2017, two FBI Task Force Officers (TFOs) encountered him and learned that he had an active warrant outstanding for violating his probation. Mr. McGee was also known to be an active member of the Black Gangster Disciples. Mr. McGee was then arrested and, during a search incident to that arrest, authorities found a small quantity of methamphetamine and a stolen Glock, 9 mm, semi-automatic pistol in Mr. McGee’s right pocket. A thirty round Glock magazine containing thirty 9 mm cartridges was also found in his left side front pocket.
Mr. McGee was prohibited from possessing a firearm as the result of a 2013 conviction of conviction for possession with intent to distribute cocaine and possession of a firearm during the commission of a felony in Lowndes County Superior Court. He was also convicted of attempted armed robbery in Lowndes County 2015.
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.
“Yet another case of guns and drugs being found together on a convicted felon. Hopefully the sentence in this case, along with others prosecuted by my office and our state counterparts, will get the message out that criminals with guns will do more time because of their decision to go armed. That is the goal of the Project Safe Neighborhood Initiative, and it is being achieved,” said United States Attorney Peeler.
The case was investigated by FBI Task Force Officers, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Valdosta Police Department. Assistant United States Attorney Sonja B. Profit prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Felon Sentenced to Federal Prison for Possessing Fully Automatic "Uzi" MachinegunRead the Press Release
United States Attorney Brandon Fremin announced that yesterday United States District Judge John W. deGravelles sentenced MARCUS JOSHUA LUTER, age 30, of Gonzales, Louisiana, to 52 months in federal prison and three years of supervised release following his conviction for possession of firearms by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1).
LUTER’s prosecution arose from an undercover operation conducted by the Denham Springs Police Department. Acting on a tip that the defendant was interested in finding black market buyers for firearms that he intended to burglarize from a residence, on February 5, 2017, an undercover officer with the Denham Springs Police Department met with the defendant at a prearranged location. After wiping down a fully automatic Uzi machinegun and a .308 semi-automatic rifle with a towel, the defendant joked that he did not want his fingerprints on a weapon. The defendant then sold both weapons to the undercover officer for $3,500 in cash and was subsequently arrested. In September of 2013, LUTER had been convicted of simple burglary, a felony, and was therefore prohibited from possessing firearms.
Following a local news report, a victim who recognized the firearms, reported both as stolen from his residence.
U.S. Attorney Brandon Fremin stated, “I commend the excellent work of the agents, prosecutors, and victim in this matter, especially the Denham Springs Police Department whose interception of these firearms before they could circulate on the black market may very well have saved lives.”
The matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana, the Baton Rouge Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Denham Springs Police Department. The matter has been prosecuted by Assistant United States Attorneys Elizabeth E. White and J. Brady Casey.
Federal Jury Convicts El Paso Woman in Kidnapping CaseRead the Press Release
In El Paso today, a federal jury convicted 36–year-old Norma Juarez Taha on federal charges in connection with the kidnapping of a 20-year-old female in El Paso in February 2017, announced United States Attorney John F. Bash and Federal Bureau of Investigation Special Agent in Charge Emmerson Buie, Jr.
The jury convicted Taha on one count of kidnapping and one count of possession of a firearm during a crime of violence. Evidence presented during trial revealed that on February 13, 2017, the defendant, known to her victim as Sister Norma, went into the victim’s house at approximately 3:30 A.M. and lured the victim out of the house by telling her that her family was in danger and that immigration authorities were attempting to deport them. The defendant drove the victim to a remote residence on the east side of El Paso that belonged to Taha’s mother. At the residence, the victim saw that Taha was in possession of a firearm. Subsequently, Taha placed the victim in her mother’s truck and injected her with a mixture of drugs. Taha’s mother then drove the victim across the border to a residence in Juarez. Taha and her mother left the victim at that residence and never returned. At approximately 10:30 P.M. on February 13, 2017, two individuals at the residence transported the victim to the Paso Del Norte Port of Entry. The victim was then transported to an El Paso hospital where she received medical attention.
Further investigation by FBI agents revealed that Taha agreed to kidnap the victim on the ground that her lifestyle brought embarrassment to her family. During a search of the defendant’s vehicle and residence, authorities discovered the firearm possessed by Taha, as well as the medication used by Taha to inject the victim during the kidnapping.
Taha faces up to life in federal prison on the kidnapping charge and a minimum of five years in federal prison on the firearms charge. She remains in federal custody pending sentencing scheduled for May 22, 2018, before United States District Judge Frank Montalvo in El Paso.
The FBI investigated this case. Assistant United States Attorneys Patricia Acosta and Shane Wagman are prosecuting this case on behalf of the Government.
Fallbrook Man Charged in Fentanyl Overdose DeathRead the Press Release
Assistant U. S. Attorney Timothy Coughlin (619) 546-6768 and Assistant U.S. Attorney Larry A. Casper (619) 546-6734
NEWS RELEASE SUMMARY – March 16, 2018
SAN DIEGO – On November 2, 2017, a 26-year-old Fallbrook man told his wife he had been sober for 100 days. Two days later, she found him lying face down on their living room floor. She called 911 but it was too late.
Cause of death: Fentanyl toxicity.
What followed was a five-month investigation by the San Diego County Sheriff’s Department resulting in federal charges against 41-year-old Corey Bernard Green of Fallbrook, who, according to a federal complaint, supplied the drug that led to the overdose. Green is charged with Distribution of Fentanyl Resulting in the Death of the Fallbrook man, identified in court documents only as JAS.
“As the opioid epidemic rages across the nation, we will do everything we can to save lives,” said U.S. Attorney Adam Braverman. “That includes investigating overdose deaths as homicides and pursuing charges against dealers of the poison that is killing people every single day in this country.”
“This investigation and criminal filing represents the San Diego Sheriff's Department's commitment to combating the opioid epidemic, utilizing every available resource to identify and apprehend suspects whose narcotic trafficking activities lead to so many needless deaths,” said Sheriff Bill Gore.
The investigation by a San Diego Sheriff’s detective determined that JAS took an Uber taxi to Green’s Fallbrook residence to purchase fentanyl. An examination of JAS’s cell phone confirmed he paid for an Uber taxi on Friday morning, November 3, 2017. The detective obtained Green’s cell phone after he was arrested on unrelated charges of manufacturing a controlled substance. Text messages obtained from Green’s cell revealed he had been in contact with JAS for several days prior to the overdose death.
Their drug-based relationship culminated on Friday November 3, 2017, when Green allegedly sold JAS a fentanyl- laced product. The contents of that text message are included below:
11-1-17 JAS “Hey u up?”
11-2-17 Green “I’m Up”
11-2-17 JAS “And I’m sure you already know but I have no cash just these bottles and batteries of u need”
11-2-17 Green “I only have a little China but it’s even a ton stronger then the last powder”
11-2-17 JAS “Just did half. Feeling good. Thanks again.”
11-2-17 Green “Ok”
11-3-17 JAS “I actually got money today! No chance I could get you to come out if I pay extra?” Or if you’re up I could take an uber real quick”
11-3-17 Green “R u driving?” Will you have that Uber stop at McDonalds for me? I’ll throw you a little extra? It’s China.”
According to the complaint, the slang term “China,” when used in this context, is reference to a strong heroin containing fentanyl.
The last known contact with JAS occurred Friday night, November 3, 2017, when he said good night to his wife and went to play video games in the couple’s living room. She woke up the next morning and found him.
An investigation of Green’s recent criminal activity found that on November 30, 2017, Green was arrested and charged by the San Diego District Attorney’s Office with manufacturing a controlled substance. Green subsequently pleaded guilty to that charge and is currently serving a sentence in state custody. The United States has filed a writ to have Green transferred into federal custody to face the Distribution of Fentanyl Resulting in Death charge. He is expected to appear before a U.S. Magistrate Judge in federal court next week to face the federal charge.
The U.S. Attorney’s Office has recently charged two other individuals with the same crime. Alleged fentanyl distributor Kyle Anthony Shephard was arrested and charged in February with Distribution of Fentanyl Resulting in Death. According to the complaint, Shephard distributed fentanyl to a United States Marine on January 27, 2017, which resulted in the death of the Marine identified in the complaint only as “MC.” For further information, please see Case Number 18-mj-0935-MDD.
While final numbers have not been released, preliminary estimates reflect that deaths caused by fentanyl analogs doubled in San Diego County in 2017 over 2016.
DEFENDANT Case Number 18-mj-1215-BGS
Corey Bernard Green Age: 41
SUMMARY OF CHARGES
Distribution of Fentanyl Resulting in Death – Title 21, U.S.C., Section 841(b)(1)(C)
Maximum penalty: Mandatory minimum 20 years in prison up to life
AGENCY
San Diego Sheriff’s Department
San Diego Sheriff’s Department Regional Crime Lab
San Diego Medical Examiner’s Office
San Diego District Attorney’s Office
United States Attorney’s Office
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Facebook posting from prison leads to new charges against federal inmateRead the Press Release
ATLANTA – Joe L. Fletcher, a current inmate at the U.S. Penitentiary in Atlanta (USP Atlanta), has been indicted by a federal grand jury following a Facebook video posting that showed Fletcher in his prison cell talking on a contraband phone with family members and friends. During the conversations, Fletcher bragged about his ability to possess a phone in prison, called himself “a motivational speaker for gangsters,” and also claimed responsibility for a 2010 murder in Ohio.
“This inmate was particularly proud of himself when he posted a lengthy interactive video on his Facebook page that showed him talking on a contraband phone from inside his prison cell,” said U.S. Attorney Byung J. “BJay” Pak. “He made a further claim that he committed a murder in another state. Prisoners with illegal phones and similar devices inside our prisons pose a serious problem that threatens the safety and security of employees and the public. We are committed to helping the Bureau of Prisons eradicate dangerous contraband inside federal prisons in our district.”
“This defendant’s alleged braggadocio potentially will earn him more time in USP Atlanta, which he claims to enjoy,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The FBI will continue to seek out those inmates and others who smuggle cell phones into a prison environment, because of the harm they cause and the continued criminal activity they afford inmates.”
According to U.S. Attorney Pak, the indictment, and other public information: Joe L. Fletcher, who has convictions for drug trafficking and illegal possession of a firearm, arrived at USP Atlanta on January 5, 2018. On January 27, 2018, he posted to his public Facebook page a 49-minute video recording of a phone conversation with family members and friends. During the conversation, Fletcher bragged that he could possess a phone in any prison and that he was enjoying his time inside USP Atlanta.
After calling himself “a motivational speaker for gangsters,” Fletcher then claimed credit for committing a murder in 2010 in Akron, Ohio. The day after the Facebook posting, corrections officers searched Fletcher’s cell and found two concealed cell phones plugged into the ceiling light fixtures.
Joe L. Fletcher, 30, of Akron, Ohio, is charged with illegally possessing a communication device inside a federal prison. He was arraigned before U.S. Magistrate Judge Linda T. Walker. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the FBI.
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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
FBI Impersonator Pleads GuiltyRead the Press Release
Gulfport, Miss – Troy Graham entered guilty pleas today to 3 counts of extortion, brandishing a firearm during a robbery and possession of a firearm by a convicted felon, U. S. Attorney D. Michael Hurst, Jr., announced today.
Graham, 34, of New Orleans, admitted he impersonated a federal agent and demanded drugs and money from a Kiln, Mississippi marijuana dealer by threatening the dealer with false arrest warrants and imprisonment. Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives learned of the impersonation and posed as a marijuana source of supply from Colorado. ATF arrested Graham in a D’Iberville parking lot when he showed up with a loaded gun to rob the Colorado dealer.
Graham faces a potential sentence of 37 years to life on the three charges. U.S. District Judge Sul Ozerden has set sentencing for Thursday, June 28, 2018, at 9:30 a.m.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is prosecuted by Assistant United States Attorney Annette Williams.
Defendant Sentenced in Card Cracking SchemeRead the Press Release
GREENSBORO, N.C. - United States Attorney Matthew G.T. Martin of the Middle District of North Carolina announced that Craig McINNIS, II, was sentenced March 13, 2018, by the Honorable Judge Thomas D. Schroeder in Federal Court in Winston-Salem, North Carolina, to 45 months confinement.
McINNIS, 28, of Durham, North Carolina, pleaded guilty on December 7, 2017, to false statements to a bank and aggravated identity theft. McINNIS was involved in a "card cracking scheme" in which he identified victims through social media sites, including dating websites such as "Plenty O' Fish" and "Tinder." He falsely represented to the women he met online that he could help them make easy money through an investment, convincing them to provide their debit cards, PINs, and other account information. McINNIS used the bank and debit card information obtained from victims to order checks from the victims' banks, which he then altered and counterfeited by replacing the victim’s name with the name of a corporation. He would then make the counterfeit checks payable to another of the victims whose information he had also obtained by false pretenses. After depositing the counterfeit checks, McINNIS would immediately withdraw the fraudulently deposited funds, often using the fraudulently obtained debit card of one of his victims.
In addition to 45 months imprisonment, McINNIS was ordered to serve five years of supervised release after completing his sentence and to pay restitution to State Employees' Credit Union and the victims of the offenses.
The United States Treasury Office of Inspector General Task Force and the City of Durham Police Department investigated this case. The case was prosecuted by Special Assistant United States Attorney Kennedy Gates and Assistant United States Attorney Frank J. Chut, Jr.
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Dallas Man Convicted of Mortgage Fraud OffensesRead the Press Release
DALLAS — Yesterday, a federal jury convicted Chukwuma Jonas Osuagwu, 45, of Dallas, following a seven-day jury trial before U.S. District Judge Ed Kinkeade, of several counts related to a mortgage fraud scheme, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Specifically, Osuagwu was convicted of five counts of bank fraud and one count of conspiracy to commit bank fraud. He faces a maximum statutory penalty of 30 years in federal prison and a $1 million fine for each count of bank fraud and conspiracy to commit bank fraud. Osuagwu will remain in custody pending sentencing.
Osuagwu was charged along with codefendant, James W. Mitchell, 36, of Boston, in a 12-count indictment in August 2016 with tax and mortgage fraud offenses. Mitchell pleaded guilty in November 2016 to one count of conspiracy to commit bank fraud. Mitchell faces a maximum penalty of not more than five years and a $250,000 fine. He is scheduled to be sentenced on April 11, 2018.
The five counts of tax fraud and one count of tax obstruction Osuagwu was charged with in the August 2016 indictment are still pending.
According to evidence presented at trial, starting in September 2006 and continuing for more than a year, Osuagwu engaged in a series of fraudulent real estate transactions in which he either personally purchased or sold to one or more straw purchasers or co-conspirators three residential condominium units on Hood Street in Dallas. Osuagwu was able to personally purchase, or assist others in purchasing multiple residential condominium units only by submitting, or causing to be submitted on behalf of others, false, fraudulent and fictitious statements, documents and representations. Fraudulent documents submitted included, false bank statements, employment letters, false IRS W-2 statements or false paystubs indicating the purchaser worked for Osuagwu’s company, Inforation, Inc. These documents caused one or more financial institutions, including Bank of America, J.P. Morgan Chase Bank and Wells Fargo Bank, to issue a mortgage loan they otherwise would not have issued.
IRS Criminal Investigation and the Federal Housing Finance Agency Office of Inspector General led the investigation; Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) assisted.
Assistant U.S. Attorneys Adrienne Frazior and J. Nicholas Bunch are in charge of the prosecution.
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Correctional Officer at Federal Prison in Victorville Arrested on Charges of Sexually Abusing Female InmatesRead the Press Release
RIVERSIDE, California – A correctional officer employed by the U.S. Bureau of Prisons (BOP) at the Federal Correctional Complex in Victorville has been arrested on charges of sexually abusing two female inmates.
Apolonio Gamez, 40, of Lake Elsinore, was arrested Thursday afternoon and is expected to make his initial court appearance this afternoon in United States District Court in Riverside.
Gamez is charged in a criminal complaint filed on Wednesday that accuses him one count of sexual abuse of a ward.
According to the affidavit in support of the criminal complaint, Gamez engaged in sexual activity with one inmate on two occasions in September 2016 while he was on duty as a correctional officer.
Gamez allegedly directed a second female inmate to engage in a sexual act with him in May 2017 after he caught her attempting to steal food from a storage facility. Gamez alleged threated to send the victim to the “hole,” and then directed her to engage in sexual activity, which the victim did not resist because “she felt frozen and powerless with fear,” according to the affidavit.
The complaint further alleges that Gamez exposed himself to a third inmate and attempted to engage in a sexual act with her in the summer of 2017.
Gamez has worked for the BOP at several California locations since August 2012. He has been assigned to the Victorville complex since July 2016.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If he were to be convicted of the charge in the complaint, Gamez would face a statutory maximum penalty of 15 years in federal prison.
The case against Gamez is being investigated by the Department of Justice Office of the Inspector General and the Federal Bureau of Investigation.
The prosecution is being handled by Assistant United States Attorneys Julius J. Nam and Sean Peterson of the Riverside Branch Office.
Convicted Felon Indicted for Possession of Firearm and HeroinRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, man who was previously convicted of federal heroin distribution charges was indicted today with drug distribution and firearms crimes, U.S. Attorney Craig Carpenito announced.
Jihad Garrett, 34, is charged with possession of heroin with intent to distribute, possession of a firearm in the course of committing that drug crime, and being a previously convicted felon in possession of a handgun. He is scheduled to make his initial appearance next week before U.S. Magistrate Judge Cathy Waldor in Newark federal court.
According to the indictment:
Garrett was charged in connection with the Feb. 23, 2018, seizure of a vehicle he was driving. Newark police subsequently recovered from the vehicle 500 packets of heroin that were prepared for distribution and a .40 caliber handgun loaded with seven rounds of ammunition.
Garrett was convicted in 2012 in Newark federal court on heroin distribution charges and was sentenced to 74 months in prison.
The current heroin distribution charge carries a maximum of 20 years in prison; the count of possession of a firearm during the drug offense carries a mandatory minimum sentence of five years in prison and a maximum term of life in prison that must be served upon completion of the drug offense. The charge of being a felon in possession of a firearm carries a maximum term of 10 years in prison.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited the FBI, under the leadership of Special Agent in Charge Timothy Gallagher; the U.S. Marshal’s Service, under the leadership of U.S. Marshal Juan Mattos Jr., and the Newark Department of Public Safety, under the direction of Anthony F. Ambrose, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorneys Robert Frazer and Desiree Latzer of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
Columbus Couple Sentenced for Conspiring to Kidnap Man After Cocaine Sale FailedRead the Press Release
COLUMBUS, Ohio – William Hernandez Castillo, 26, and Citlaly Casillas, 22, both of Columbus, were each sentenced today in U.S. District Court for conspiracy to commit kidnapping following a failed drug transaction. Hernandez Castillo was sentenced to 48 months in prison and Casillas was sentenced to 42 months in prison.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Gahanna Police Chief Dennis Murphy and Westerville Police Chief Joseph Morbitzer announced the sentence imposed today by U.S. District Judge James L. Graham.
According to the Statement of Facts in this case, Hernandez Castillo and Casillas conspired to kidnap an individual from April 4 through April 7, 2017.
In March 2017, the individual told Casillas that an associate of his wanted to buy one kilogram of cocaine. Casillas and Hernandez Castillo agreed to buy the drugs and intended to sell the cocaine for more than $30,000.
When the time came to complete the transaction on April 4, the associate took the cocaine without paying.
Hernandez Castillo then called the owner of the drugs, who was in Mexico, to discuss how to respond. The owner of the drugs told Hernandez Castillo to hold the individual responsible for his associate. The owner said if he did not receive the drugs or the money, he would send enforcers to deal with the individual and his family.
Following the phone call, Hernandez Castillo told the individual that he had to come with Hernandez Castillo and Casillas.
From April 4 through April 7, Hernandez Castillo and Casillas seized, confined and kidnapped the victim for ransom at their Columbus residence. Hernandez Castillo told the victim that people from Mexico would harm his family if the drug owner did not receive the drugs or money.
During his confinement, Casillas told the victim stories of a 2015 fatal shooting at La Michoacana market in Columbus in order to scare him and keep him from leaving the residence. She joked that Hernandez Castillo would cut off one of the victim’s fingers if he left.
After contacting his girlfriend and mother, the victim was driven by Hernandez Castillo on April 7 to a location in Columbus, where they believed ransom money was waiting. When the victim arrived at the drop location, law enforcement secured him.
Casillas was arrested during the execution of a search warrant at her residence on April 17. Hernandez Castillo was arrested the same day, and the two have remained in custody since.
“The defendants held a victim ransom for days, communicating threats of violence and invoking an infamous murder at La Michoacana market in Columbus in 2015,” U.S. Attorney Glassman said. “They also made clear that they were taking orders from Mexico, suggesting these threats were backed by the full resources of an international drug-trafficking organization.”
U.S. Attorney Glassman commended the investigation of this case by the FBI, DEA, Gahanna Police and Westerville Police, as well as Assistant United States Attorney Peter K. Glenn-Applegate, who is representing the United States in this case.
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Citizen of Honduras Sentenced to Prison for Reentering U.S. after Being DeportedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CARLOS ANARIBA, also known as Marvin Guillen, 27, a citizen of Honduras last residing in Stamford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to six months of imprisonment for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, in November 2008, ANARIBA, using the name Marvin Guillen, was charged in Connecticut Superior Court in Stamford with assault, weapons, breach of peace and forgery offenses. After ANARIBA posted bond, he was released to the custody of U.S. Immigration and Customs Enforcement and, in March 2009, was deported from the U.S. to Honduras.
ANARIBA subsequently returned to the U.S.
In October 2014, ANARIBA, using his true name, was arrested by Stamford Police for a burglary offense. In February 2016, he was arrested by Stamford Police on larceny charges.
A biometric match connected the three criminal cases and confirmed that ANARIBA and Guillen are the same individual. ANARIBA resolved all three cases and, in October 2016, was sentenced in state court to 25 months of incarceration, concurrently, on each count.
On November 17, 2017, ANARIBA pleaded guilty in federal court to one count of reentry of a removed alien. He will deported to Honduras when he completes his prison term.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Calhoun Has Supervised Release Revoked for Firearms OffenseRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that on March, 15 2018, Senior United States District Court Judge Hugh Lawson revoked the Supervised Release for Frederick Tyrone Calhoun, age 35, of Lakeland, Georgia and ordered him to serve forty-eight (48) months in the Bureau of Prisons.
Mr. Calhoun violated two mandatory conditions of supervised release. The first is that he committed the offense of Possession of a Firearm by a Convicted Felon. The second is that he committed an Aggravated Assault.
Judge Lawson heard evidence from GBI Special Agent Cyrus Purdiman and former Lakeland Police Officer Justin Jones that on September 10, 2016, Lakeland, Georgia police officers responded to a call of shots fired in a Lakeland, Georgia neighborhood. While officers were responding to that scene, they heard more gunshots in the nearby area. Upon responding to the second scene, officers found Lewis Shukung Geddie lying on the ground suffering from gunshot wounds to his arm and hip. Mr. Geddie stated Fredrick Tyrone Calhoun shot him and then fled the scene on foot.
An individual arrived at the scene shortly thereafter and informed officers that Mr. Calhoun was at a nearby residence and wished to surrender to officers. The officers proceeded to the residence and contacted Mr. Calhoun. Upon questioning, Calhoun claimed that he shot Mr. Geddie in self-defense. An FBI/TFO testified that five .45 caliber shell casings found at the scene were fired from a weapon that Mr. Calhoun was known to carry. The only weapon recovered at the scene was the .40 caliber Glock that was found next to Mr. Geddie. There were no .40 caliber shells found at the scene.
On September 11, 2016, Lanier County, Georgia authorities arrested Calhoun on State of Georgia charges stemming from this incident. These were disposed of in a completely separate sentencing hearing following a guilty plea on December 1, 2017, in the Superior Court of Lanier County.
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.
United States Attorney Charles E. Peeler noted that while his office was not able to address Mr. Calhoun’s state law violation violent crimes due to lack of jurisdiction, he is committed to ensuring that those who have previously been prosecuted by his office be held to answer whenever their post-release conduct violates the conditions imposed by the Court at the time of their original sentencing.
The case was investigated by the Federal Bureau of Investigation and Georgia Bureau of Investigation. Assistant United States Attorneys Sonja B. Profit and Leah E. McEwen prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Buffalo Woman Sentenced for Use of Fraudulently Obtained Credit CardRead 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 Tamika Favors, 35, of Buffalo, NY, who was convicted of misdemeanor bank larceny, was sentenced by U.S. Magistrate Judge Jeremiah J. McCarthy, to a two year term of probation, and ordered to pay $8,000 in restitution.
Assistant U.S. Attorney MaryEllen Kresse, who handled the case, stated that in August 2013, the defendant used a fraudulently obtained Citibank credit card to make purchases in excess of $8,000. In addition, Favors had 15 credit cards sent to her home and to nearby addresses without the knowledge or permission of the true account holders. Those fraudulently obtained credit cards were then used by others to make unauthorized purchases.
The sentencing is the result of an investigation by the U.S. Postal Inspection Service, under the direction of Acting Inspector-in-Charge Ray Moss of the Boston Division, and the United States Secret Service, under the direction of Special Agent-in-Charge Lewis Robinson.
Brazilian National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Brazilian national was sentenced today in federal court in Boston for illegally reentering the United States after deportation.
Josilei DeCastro, a/k/a Marcos Santos, a/k/a Marcos Augusto Dos Santos, 37, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to six months in prison and one year of supervised release. DeCastro will face deportation proceedings upon completion of his sentence. In December 2017, DeCastro pleaded guilty to one count of unlawful reentry of a deported alien.
In May 2016, DeCastro was arrested and charged in state court with multiple counts of sexual assault on a nine-year-old child. In July 2016, DeCastro was indicted by the state on those charges. His state case is pending; his federal sentence will be served concurrent to any state sentence that might be imposed.
On Dec. 9, 2016, while held on the aforementioned state charges, DeCastro was encountered by law enforcement officers at the Middlesex House of Corrections and determined to be illegally present in the United States. DeCastro was previously deported on July 17, 2000.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Kenneth G. Shine and David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.
Berkeley County man admits to fentanyl distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Bradley Markley, of Hedgesville, West Virginia, has admitted to distributing fentanyl, United States Attorney Bill Powell announced.
Markley, age 32, pled guilty to one count of “Distribution of Fentanyl and Acetyl Fentanyl.” Markley admitted to distributing the drugs in October 2016 in Berkeley County.
Assistant U.S. Attorneys Anna Z. Krasinski and Lara K. Omps-Botteicher are prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Behind the HeadlinesRead the Press Release
Link: https://www.youtube.com/watch?v=ozgbviAdP20&feature=youtu.be&app=desktop
Amherst Man Sentenced for His Role in Drug ConspiracyRead 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 Rohan Chopra, 23, of Amherst, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, MDMA, also known as “Molly,” was sentenced to 24 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Patricia Astorga, who handled the case, stated that the defendant conspired with co-defendants Connor Dempsey and Joel Jacob. All three defendants agreed that Chopra would store various controlled substances at an apartment rented by Dempsey and Jacob that was located at 365 Campus Drive in Buffalo. Chopra was also allowed to sell drugs out of the apartment. Dempsey and Jacob gave Chopra keys to the apartment so that he could access and distribute the drugs stored there. Chopra also ordered controlled substances from the Internet and had them delivered to the apartment. Chopra instructed Dempsey and Jacob not to sign for packages and to deny that they were expecting a package to avoid liability.
On August 17, 2016, Jacob signed for a parcel addressed to him during a controlled delivery by the U.S. Postal Inspection Service. The package, which Chopra ordered over the Internet using bitcoins, was sent from Munchen, Germany and contained over 180 grams of MDMA. During a search of the apartment, officers recovered quantities of marijuana, LSD, cocaine, THC, Xanax, and ketamine. They also found a digital scale, baggies, empty capsules, other drug paraphernalia, and another mail parcel addressed to Chopra. After Chopra learned about the search, he contacted Dempsey and Jacob and asked them to take responsibility for a quantity of the controlled substances found in the apartment.
Dempsey and Jacob have been convicted and sentenced.
Today’s sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; and the U.S. Postal Inspection Service, under the direction of Inspector-in-Charge Ray Moss of the Boston Division.
Thursday 15 March 2018
York County Man Charged with Child Exploitation OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Robert T. Donelon, age 55, of Etters, Pennsylvania, was indicted yesterday by a federal grand jury for offenses involving the exploitation of minors.
According to United States Attorney David J. Freed, the indictment alleges that on January 10, 2018, Donelon possessed images of child pornography depicting a minor engaged in sexually explicit conduct, and received child pornography over the internet. The indictment also seeks forfeiture of all electronic equipment connected with the images of child pornography.
This case was investigated by the West York Borough Police Department with the assistance of the Federal Bureau of Investigation. Assistant United States Attorney James T. Clancy is prosecuting the case.
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."
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 maximum penalty under federal law for the receipt of child pornography offenses is 20 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. That charges carries a mandatory minimum term of imprisonment of 5 years. The possession of child pornography charge is punishable by a maximum of 10 years’ imprisonment and a $250,000 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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Wyoming Man Sentenced to Four Years in Federal Prison for Methamphetamine DistributionRead the Press Release
BILLINGS - The United States Attorney’s Office announced today that Emmanuel Arce-Gaxiola., a 29 year-old resident of Rock Springs, Wyoming, was sentenced to 48 months in prison, 3 years of supervised release, and a $300 special assessment. Arce-Gaxiola was convicted of possession with intent to distribute methamphetamine, in violation of 21 U.S.C. § 841(a)(1), and two counts of distribution of methamphetamine, in violation of 21 U.S.C. § 841(a)(1).
In May 2015, Arce-Gaxiola sold methamphetamine to a confidential informant on two separate occasions in Billings. Agents with the Eastern Montana High Intensity Drug Trafficking Area Task Force then executed search warrants on his vehicle and hotel room and seized approximately 388 grams of pure methamphetamine.
In total, agents seized 415 grams of pure methamphetamine during the investigation. That converts to 3,320 individual dosage units of the drug that reached drug users in Montana.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
Woman Sentenced to Five Years in Prison for Multi-Million Dollar Tax Return SchemeRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on March 14, 2018, Amalia Gamboa (age 41), of Milwaukee, Wisconsin, was sentenced in federal court to 5 years in prison for fraudulently obtaining over $4.6 million in tax refund checks. The sentence followed her guilty plea to mail fraud, in violation of Title 18 United States Code, Section 1341, theft of government money, in violation of Title 18, United States Code, Section 641, and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Gamboa was also ordered to pay $4,681,690.42 in restitution to the Internal Revenue Service. Gamboa additionally agreed to be voluntarily deported after her prison sentence to Mexico due to her lack of legal status in the United States.
Gamboa committed her theft by fraudulently obtaining Individual Tax Identification Numbers (“ITINs”) from the IRS. An ITIN is what the IRS issues to individuals who cannot, due to their immigration status, obtain a Social Security number. Individuals who obtain an ITIN use it to file their income tax returns.
To obtain an ITIN, an applicant has to provide the IRS certain personal identifying documents, such as national identifications or voter cards. Gamboa obtained personal identifying documents from citizens of Mexico, fraudulently applied for ITINs in their names, and then filed false tax returns using the ITINs she obtained.
In the fraudulent tax returns that she filed, Gamboa claimed the Additional Child Tax Credit (“ACTC”). The ACTC reduces tax liability dollar for dollar, and the unused portion of a refundable credit is still payable to the taxpayer. Accordingly, even someone who has no tax liability may qualify to receive the ACTC. Gamboa falsely claimed dependents in the tax returns that she filed to fraudulently receive the ACTC.
From November 2010 through March 2017, Gamboa received at least $4,681,690.42 in U.S. Treasury refund checks from her scheme. When handing down the sentence, United States District Judge Pamela Pepper said that anyone who commits tax fraud “steals from every hard working person who pays taxes in the country,” and Judge Pepper stated that her sentence must “send a message” to others that tax fraud offenses are serious crimes that require significant sentences. Judge Pepper also said, referring to tax fraud cases over which she has presided, that she had “never seen a single person responsible for this much loss in my time as a judge,” and further described the amount that Gamboa stole as “mind blowing.”
“IRS Criminal Investigations is sworn to protect the tax system and bring to justice those who steal from the U.S. Treasury,” said St. Paul Acting Special Agent in Charge Hubbard Burgess. “The IRS and Department of Justice remain determined and vigilant in ferreting out these types of identity theft cases and holding those who engage in similar behavior fully accountable.”
“This case sends a clear warning: Tax fraud and identity theft are serious crimes and will be prosecuted aggressively. The honest taxpayers that fund our government deserve to know that cheaters face real punishment. We commend IRS Criminal Investigation for its excellent work in this case.”
This case was investigated by IRS Criminal Investigation and prosecuted by Assistant United States Attorney Keith Alexander.
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For further information contact:
Public Information Officer Dean Puschnig at (414) 297-1700
Westchester Hedge Fund Manager Pleads Guilty to Securities FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that MICHAEL SCRONIC, a former hedge fund manager, pleaded guilty today to securities fraud before U.S. District Judge Cathy Seibel. SCRONIC admitted as part of his plea that he had defrauded the 45 investors in his Scronic Macro Fund of more than $22 million.
Manhattan U.S. Attorney Geoffrey S. Berman stated: “Michael Scronic lied about the performance of his investment fund, telling investors that his returns were as high as 13 percent. But, in fact, his fund was wholly unsuccessful, resulting in millions of dollars in losses. And what wasn’t lost in the market, Scronic used for his own personal expenses. Now he faces significant time in prison for his fraud.”
According to the allegations contained in the Indictment and other court documents, SCRONIC, raised more than $22 million from 45 investors in the Scronic Macro Fund (the “Fund”) from April 2010 to the October 2017. SCRONIC told investors that the Fund had positive returns in all but one of the 22 quarters from January 2012 through June 2017, with the highest reported quarterly return being 13.4 percent in the fourth quarter of 2014. In reality, the Fund lost money in 28 out of 29 quarters of its operation, with a total net loss of about $15.7 million before commissions. The Fund’s only positive quarter was its first quarter of operation in 2010.
As a result of these trading losses, the total assets SCRONIC claimed the Fund had in each quarter far exceeded its actual assets. For example, SCRONIC sent account statements to investors that together showed total fund assets of $21.7 million as of June 30, 2017. In actuality, on that date, the combined balance of SCRONIC’s brokerage and bank accounts was just $102,376.
In addition to losing money on trades, SCRONIC used investor money for personal expenses. His personal expenditures averaged more than $500,000 including monthly rent of $12,275 for his primary residence in Westchester, New York, mortgage payments on a vacation home in Stratton, Vermont, fees for multiple beach and country clubs, including a $30,000 payment to the Stratton Mountain Club in July 2017, and miscellaneous items charged to credit cards in amounts averaging more than $15,000 a month.
As of the summer of 2017, SCRONIC was unable to pay redemptions requested by Fund investors because he did not have sufficient funds on hand. He told investors seeking redemptions that he would pay redemptions only at quarter end, that he was too busy and preoccupied with a relative’s medical condition to pay redemptions, and that he was unavailable to pay redemptions because he was on vacation. In some cases, SCRONIC ignored redemption requests.
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SCRONIC, 46, of Manhattan, New York, pleaded guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
SCRONIC is scheduled to be sentenced by Judge Seibel on July 9, 2018, at 11:00 a.m.
Mr. Berman praised the investigative work of the FBI. He also thanked the U.S. Securities and Exchange Commission for their assistance in the investigation.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys James McMahon and Daniel Loss are in charge of the prosecution.
Washington County Businessman and Convicted Felon Charged with Fraud, Tax and Firearms OffensesRead the Press Release
PITTSBURGH – A resident of Washington County, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on charges of wire fraud, tax evasion, conspiracy to defraud the United States, false bankruptcy declaration, and unlawful possession of a firearm by a felon, United States Attorney Scott W. Brady announced today.
The 13-count indictment, returned on March 14, 2018, named George Retos, Jr., age 69, of Washington, Pennsylvania, as the sole defendant.
According to the indictment, Retos defrauded a Small Business Administration preferred lender, Preferred Capital BIDCO, Inc., in connection with $2,000,000 in loans to Prime Plastics, Inc. and Branikas Investments LLC, two entities operated and controlled by Retos. In violation of the loan agreements, Retos allegedly misappropriated tens of thousands of dollars of loan proceeds and pledged collateral through, among other expenditures, the financing of a $41,000 BMW for a family member and tens of thousands of dollars in charges at casinos in Western Pennsylvania and Las Vegas, Nevada.
The indictment also alleges that Retos willfully attempted to evade and defeat the payment of income taxes due and owing by him to the United States of America by concealing from the Internal Revenue Service (IRS) the nature and extent of his income and assets as well as the location thereof; placing business interests in the names of nominees; paying personal expenses with funds and bank accounts of Prime Plastics, Inc., Branikas Investments, Inc., and a third entity, Plastic Power, Inc., all companies controlled by Retos; issuing checks drawn on Prime Plastics, Branikas Investments and Plastic Power bank accounts payable to Retos; and making ATM withdrawals and purchases at casinos in the Western District of Pennsylvania, Las Vegas, Nevada, and elsewhere using Prime Plastics, Branikas Investments and Plastic Power funds and bank accounts.
The indictment further alleges that Retos conspired to defraud the IRS when he agreed with another individual not to pay over to the IRS payroll and employer taxes of Prime Plastics, Inc. and Plastic Power, Inc. Specifically, to avoid ongoing collection efforts by the IRS related to unpaid taxes of Prime Plastics, Inc., Retos and his co-conspirator allegedly arranged for employees of Prime Plastics, Inc. to be transferred to Plastic Power, Inc., which, in turn, also failed to pay employer and payroll taxes to the IRS. According to the indictment, the unpaid employer and payroll taxes totaled hundreds of thousands of dollars.
In addition, the indictment charges Retos with wire fraud in connection with a scheme to fraudulently obtain unemployment compensation from the Commonwealth of Pennsylvania for Prime Plastics, Inc. and, later, Plastic Power, Inc. employees. According to the indictment, Retos reduced the salaries of numerous employees and instructed them to seek unemployment from the state to make up the difference, knowing full well that the employees were ineligible for such unemployment compensation. During the execution of the scheme, Retos allegedly continued to siphon company funds for his personal benefit.
The indictment also alleges that at Retos’ direction, Prime Plastics, Inc. filed for bankruptcy and, among other things, falsely stated that there had been no withdrawals from the entity outside the normal course of business during the preceding two years. In fact, as alleged, Retos was responsible for numerous such expenditures, including thousands of dollars belonging to Prime Plastics, Inc. spent by Retos at casinos in Las Vegas, Nevada and elsewhere.
Finally, the indictment also alleges that Retos, after having been convicted in or around December 1992 of income tax evasion, false statements in connection with a credit application, mail fraud, and interstate transportation of stolen property, possessed on June 26, 2013, a Kel Tec handgun, .380 caliber, and ammunition, .380 hollow point.
U.S. Attorney Brady stated, "George Retos, Jr. is alleged to have used multiple businesses he controlled as his personal slush fund, siphoning money for his use at casinos and for the purchase of a BMW for a relative, among other things. In doing so, the indictment alleges that he committed myriad serious crimes, including engaging in two fraud schemes separately targeting a government-backed lender and the Pennsylvania unemployment compensation system, as well as participating in a conspiracy to defraud the IRS out of significant unpaid business taxes. The U.S. Attorney’s office will continue to investigate and prosecute serious financial crimes, and when a convicted felon is found in possession of a firearm, as is alleged here, we will see that they are held accountable to the full extent of the law."
"Today’s multiple count indictment is the result of the cooperative efforts of IRS-Criminal Investigation and our law enforcement partners," said Acting Special Agent in Charge Ed Wirth. "The Special Agents of IRS-CI remain diligent in their pursuit of those who attempt to undermine the system by committing tax fraud and bankruptcy fraud."
"An important mission of the Office of Inspector General is to investigate allegations of fraud related to the Department of Labor's unemployment insurance program. We will continue to work with our law enforcement partners to safeguard benefits intended for unemployed American workers," stated Richard Deer, Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
"The FBI is committed to rooting out these types of fraudulent activities and today’s indictment highlights the continued need for that," said Special Agent in Charge Robert Johnson.
Retos faces a maximum sentence of 20 years imprisonment and a fine of $250,000 for each of the seven counts charging him with wire fraud, a maximum sentence of five years imprisonment and a fine of $250,000 for each of the five counts charging him with income tax evasion, conspiracy and false bankruptcy declaration, and a maximum sentence of ten years imprisonment
and a fine of $250,000 for the felon in possession charge. 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 Attorneys Mary McKeen Houghton and Eric G. Olshan are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation; the Department of Labor, Office of Inspector General; and the Internal Revenue Service, Criminal Investigation, 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.
Warren County Doctor Indicted for Illegal Prescriptions of Opioid Narcotic Drugs to Three WomenRead the Press Release
St. Louis, MO – Philip D. Dean, M.D., 62, of Warrenton, Missouri, was indicted today with eight felony charges for making false statements to Medicare and Medicaid and illegally distributing fentanyl, hydrocodone, and other controlled prescription drugs without a legitimate medical purpose.
According to the Indictment, Dr. Dean had personal relationships with several women, and during the relationships provided these women with prescriptions for narcotic pain relief opioid drugs. With one woman, Dr. Dean wrote her multiple prescriptions using the name of her family member, and then Dr. Dean personally picked some of these drugs up from the pharmacy and paid the co-payment amount. With another woman, Dr. Dean exchanged text and social media messages with sexual content before making prescription decisions for her. Finally, Dr. Dean prescribed a drug called Subsys®, a narcotic pain relief drug that contains Fentanyl, to one of the women, causing Medicaid to pay approximately $213,000. However, Subsys® is only approved for use in cancer patients with breakthrough pain, and the woman who received the Subsys® prescriptions did not have cancer.
If convicted, the charges of false statements to Medicare and Medicaid carry a maximum penalty of 5 years in prison and a $250,000 fine. The drug distribution charges have maximum penalties of either 20 or 5 years in prison and a fine of either $1,000,000 or $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the U.S. Department of Health and Human Services, Office of the Inspector General, and the Drug Enforcement Administration, with assistance from the Federal Bureau of Investigation, the Medicaid Fraud Control Unit of the Missouri Attorney General’s Office, and the Warrenton Police Department. Assistant United States Attorney Andy Lay is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in the complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
United States Attorney's Office Addresses Opioid EpidemicRead the Press Release
As part of his office’s “prevention, preservation and prosecution” efforts, U.S. Attorney Andrew Birge encouraged the public to attend an upcoming community presentation at Grandville Public High School and announced the arrival in West Michigan of additional resources for the Drug Enforcement Administration.
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge invited the media to meet today with him and several partners from the community and law enforcement on how they are addressing the opioid crisis.
“It’s a matter of saving lives,” U.S. Attorney Birge declared as he recounted the staggering statistics recently released:
• Since 2009, drug overdose deaths have outpaced traffic accidents as the leading cause of injury death in the United States.
• Life expectancy in the United States dropped for two years in a row after more than a century of steady progress.
• The number of children admitted to hospitals for opioid overdose has nearly doubled since 2004, according to a study recently published in the journal Pediatrics.
• More people died of an overdose in 2016 than ever before-- and more than died in the entire Vietnam War.
• The Centers for Disease Control identified Michigan as one of the states experiencing a significant increase in its drug overdose death rates through 2016; and up over 24% for women just last year, according to the United Health Foundation.
• Emergency Department visits for opioid overdoses rose 30% in all parts of the country from July of 2016 through September of 2017. Opioid overdoses were up 70% in the Midwest during that period.
• Preliminary numbers from the Medical Examiner in Kent County for 2017 indicate that we lost at least 137 community members in this County to drug overdose deaths—a 50% increase over the preceding year, with more cases pending.
U.S. Attorney Birge explained: “We also know that this trend started with prescription drugs. Addiction to these drugs leads to heroin and worse, including fentanyl bought off the street. About 80% of heroin users report using prescription drugs prior to heroin.”
U.S. Attorney Birge then discussed the three ways his office is addressing the epidemic:
• Prevention, educating the public and community members—especially our youngest—to discourage the new use of these dangerous drugs;
• Preservation, furthering information about what can be done to protect those currently suffering from Substance Abuse disorders, teaming with medical and treatment professionals and those that provide overdose antidotes to the community; and
• Prosecution, investigating and charging those that would profit from the spread of these dangerous substances in our community.
In the area of prevention, the U.S. Attorney’s Office is teaming with Grandville Public Schools to host a community presentation on the epidemic in the Grandville High School Auditorium on March 19, 2018. “I cannot stress enough how important it is for parents and teenagers to understand this epidemic. Teenagers learn and grow by making the occasional poor choice, but they can’t afford to make poor choices with opioids,” explained U.S. Attorney Birge.
The Superintendent of Grandville Public Schools, Roger Bearup, spoke with the media about the upcoming presentation and discussion. “Grandville Public Schools is honored to partner with our state and national officials to provide this opportunity to raise public awareness of this very unfortunate crisis that plagues West Michigan and our country,” he offered. In addition, Grandville Police Chief, Dan Steere, addressed the effect that opioids have had in his community.
As for preserving the lives of those caught in the addiction spiral, Dr. Jeanne Kapenga talked about Families Against Narcotics (FAN) and how FAN educates the public and provides support for families facing addiction. Dr. Kapenga will also present about the basics of addiction and recovery at the Grandville event.
“My office, of course, enforces the law,” U.S. Attorney Birge said. “Enforcing the law deters the suppliers and saves lives.” He gave as an example his office’s prosecution last year of a physician from Albion, Dr. Horace Davis, for illegally prescribing opioid painkillers and committing healthcare fraud. And he highlighted the heroin trafficking conspiracy his office charged last fall against 28 people. “We used the tools at our disposal to build that case, including wiretaps and the secrecy of the grand jury. During the initial takedown, we seized over 21 kilograms of heroin, over 13 kilograms of cocaine and over $1.3M in cash.” He added that his office prosecuted 50% more heroin cases and defendants last year than the year before and that he expects that rate to keep rising. “The federal penalties for drug trafficking are heavy; trafficking offenses can carry mandatory minimum penalties of five, ten, and twenty years and even life in prison, depending on the amount of drugs involved and criminal history. So my message for those who would turn people into addicts or take advantage of those who are already addicted, is the following: we’re going to use every tool we have to come looking for you and to prove your guilt and the federal sentences you will face if convicted are severe.
On the subject of enforcement, Bruce McColley, the Assistant Special Agent in Charge of the Detroit Field Office of the Drug Enforcement Administration, and Cathy Gallagher, the Detroit Diversion Program Manager, addressed additional resources the DEA is bringing to West Michigan. The Grand Rapids office of the DEA will have more agents installed to investigate diversion of prescription drugs to non-medical uses, which fuels the epidemic. U.S. Attorney Birge explained that the additional resources “will substantially improve our ability to deter and prevent prescription drugs from ending up in the wrong hands.”
Link to:
Flyer - 2018 OPIOID Summit at Grandville Public SchoolsEND
Two Solano County Men Indicted for Conspiring to Bomb a Suisun City ResidenceRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Thomas Wayne Capenhurst, 33, of Dixon, and Robert Lee McGraw, 20, of Fairfield, charging both men with conspiracy, malicious use of explosive materials, and using a destructive device during a crime of violence, U.S. Attorney McGregor W. Scott announced. The indictment also charges McGraw with possessing an unregistered destructive device.
According to court documents, Capenhurst offered to pay McGraw and another man $10,000 each to place pipe bombs at his brother’s house in Suisun City. According to the complaint, Capenhurst gave McGraw three homemade pipe bombs and directed him to “try to knock the house down.”
The complaint alleges that on February 17, 2018, McGraw walked to the front door of a home on Blue Jay Drive in Suisun City, just before 1:00 a.m., and set one of the pipe bombs on the front porch. According to the complaint, McGraw lit the fuse, banged on the front door, and then ran. Afterwards, the pipe bomb detonated and blew the front door off its hinges. Law enforcement found pieces of metal shrapnel lodged in the home’s exterior walls, and windows broken nearby. Court documents state that a family of five was active inside the home, having just returned from a trip to the Bay Area.
This case is the product of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Federal Bureau of Investigation’s Solano County Violent Crimes Task Force, and the Suisun City Police Department. Special assistance was provided by the Dixon Police Department, Fairfield Police Department, Vacaville Police Department, Vallejo Police Department, Benicia Police Department, the Solano County Sheriff’s Office, and the California Highway Patrol.
If convicted of malicious use of explosive materials, Capenhurst and McGraw both face a penalty of not less than five years, and up to 20 years, in prison, and a $250,000 fine. If convicted of using a destructive device during a crime of violence, each defendant faces a penalty of not less than 30 years in prison, up to life, and a $250,000 fine. If convicted of conspiracy, Capenhurst and McGraw face a maximum penalty of five years in prison and a $250,000 fine. If convicted of possessing an unregistered destructive device, McGraw faces a maximum statutory penalty of 10 years in prison and a $10,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.