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12 April 2018
Justice Department Announces Nationwide Initiative to Combat Sexual Harassment in HousingRead the Press Release
Today, as the Department of Justice recognizes the 50th Anniversary of the Fair Housing Act, Attorney General Jeff Sessions announced the nationwide rollout of an initiative aimed at increasing awareness and reporting of sexual harassment in housing. The announcement includes an interagency task force between the Department of Housing and Urban Development (HUD) and the Justice Department to combat sexual harassment in housing, an outreach toolkit, and a public awareness campaign. This three-pronged approach will strengthen the Department’s efforts to combat sexual harassment in housing. Under the leadership of Benjamin G. Greenberg, the U.S. Attorney’s Office for the Southern District of Florida supports this important initiative.
“Sexual harassment in housing is illegal, immoral, and unacceptable," said Attorney General Sessions. “It is all too common today, as too many landlords, managers, and their employees attempt to prey on vulnerable women. We will not hesitate to pursue these predators and enforce the law. In October, I ordered a new initiative to bring more of these cases, and we have already won relief for 15 victims. Today we announce three new steps to make the initiative more effective and to win more cases. I want to thank the dedicated and committed professionals in our Civil Rights Division and our partners in the Department of Housing and Urban Development for their hard work in this effort. We will continue to aggressively pursue harassers, because everyone has a right to be safe in their home.”
“All discrimination stains the very fabric of our nation, but HUD is especially focused on protecting the right of everyone to feel safe and secure in their homes, free from unwanted sexual harassment,” said Secretary Ben Carson. “No person should have to tolerate unwanted sexual advances in order to keep a roof over his or her head. Part of our mission at HUD is to provide safe housing and we will remain diligent in this mission to protect those we serve. I look forward to working with Attorney General Sessions and the Department of Justice as part of this task force to bring an end to this type of discrimination.”
“Regardless of who you are, where you live, or where you seek to find housing, everyone in our community has a right to feel safe in their homes, without the threat of sexual harassment or sexual assault while trying to procure or maintain housing,” stated U.S. Attorney Benjamin G. Greenberg. “Through coordinated federal prosecutions, the U.S. Attorney’s Office for the Southern District of Florida will use the full force of the Fair Housing Act (FHA) to go after landlords, property managers, maintenance workers, and anyone else who victimizes tenants and homeowners in violation of the law. We encourage members of the South Florida community who believe they have been a victim of unlawful discriminatory housing practices to contact the Department of Justice.”
In October 2017, the Justice Department announced an initiative to combat sexual harassment in housing and launched pilot programs in Washington, D.C. and the Western District of Virginia. The initiative sought to increase the Department’s efforts to protect women from harassment by landlords, property managers, maintenance workers, security guards, and other employees and representatives of rental property owners. During the pilots, the Department developed and tested ways to better connect both with victims of sexual harassment in housing and with those organizations that victims may turn to first for help – including law enforcement, legal services providers, public housing authorities, sexual assault services providers, and shelters. The Department also tested certain aspects of the initiative in other jurisdictions, including New Jersey, the Central District of California, Massachusetts, Vermont, and Michigan.
The two pilot programs generated an upswing in harassment reporting to the Department from both D.C. and the Western District of Virginia. In D.C., the Department generated six leads since the October 2017 launch. In Virginia, the Department generated three leads. While the Justice Department recognizes that leads and investigations do not always lead to enforcement actions, the pilot program’s results—when extrapolated across all the U.S. Attorney’s Offices across the country—could lead to hundreds of new reports of sexual harassment in housing across the country.
Because of these promising results, the Department is rolling out three major components to the Initiative.
First, the new HUD-DOJ Task Force to Combat Sexual Harassment in Housing will drive a shared strategy between the Department and HUD for combatting sexual harassment in housing across the country. It will focus on five key areas: continued data sharing and analysis, joint development of training, evaluation of public housing complaint mechanisms, coordination of public outreach and press strategy, and review of federal policies.
Second, the outreach toolkit is designed to leverage the Justice Department’s nationwide network of U.S. Attorney’s Offices. The toolkit provides templates, guidance, and checklists based on pilot program feedback. It ultimately will amplify available enforcement resources and help victims of sexual harassment connect with the Department.
Third, the public awareness campaign has three major components: a partnership package with relevant stakeholders, launch of a social media campaign, and Public Service Announcements (PSAs) run by individual U.S. Attorney’s offices. The campaign is specifically designed to raise awareness, and make it easier for victims all over the country to find resources and report harassment.
More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of sexual harassment in housing should call the Department at 1-844-380-6178, send an e-mail to [email protected], or contact HUD at 1-800-669-9777. If you have information or questions about any other housing discrimination, you can contact the Department at 1-800-896-7743.
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Audio file 60-Second PSA TranscriptJudge Sends Sugar Land Resident to Prison for Child Pornography ChargesRead the Press Release
HOUSTON – A federal judge has found a 44-year-old legal permanent resident who lived in Sugar Land guilty of receipt, access with intent to view and possession of child pornography, announced U.S. Attorney Ryan K. Patrick. U.S. District Judge Alfred H. Bennett found Jacinto Lopez-Toledo guilty on Dec. 12, 2017, following two days of trial.
Today, Judge Bennett sentenced Lopez-Toledo to 120 months in prison to be immediately followed by 10 years of supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender. The court also imposed a $15,000 fine and a $10,000 special assessment for the Justice for Victims of Trafficking Act.
Lopez-Toledo came to the attention of law enforcement after investigators found evidence that he was accessing files from a website known to contain child pornography. A search warrant was executed on his residence on Dec. 1, 2015, at which time investigators seized two desktop computers, a laptop computer and an external hard drive.
The forensic examination of the seized devices revealed Lopez-Toledo had 50,216 images and 941 videos of child pornography. These images and videos included children under the age of 12, bondage and acts of violence. Some of the images are of known victims as identified through the National Center for Missing and Exploited Children.
At trial, the court found Lopez-Toledo had an additional 527,844 images and 969 videos which appeared to be child pornography but could not be confirmed as involving a minor. The court also heard that Lopez-Toledo had been collecting and viewing child pornography for several years, dating back to as early as 2003.
Lopez-Toledo has previously admitted he would view and download child pornography from the internet and also from file sharing networks. Prior to trial, he argued those statements should be suppressed as well as the original search warrant which started the overall investigation.
The judge ultimately found him guilty as charged.
Previously released on bond, Toledo-Lopez was ordered into custody following the verdict where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and the Pearland Police Department conducted the investigation with the assistance of the Sugar Land Police Department and Immigration and Customs Enforcement’s Homeland Security Investigations. Assistant U.S. Attorneys Julie N. Searle and Kimberly Leo prosecuted 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."
Jackson County Man Sentenced for Drug and Firearm OffensesRead the Press Release
On April 10, 2018, Alphonso Pierre Allison, 47, a/k/a "Pierre," "P," and "Perry," of Carbondale, was sentenced to federal prison for drug and firearm offenses, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Allison, who had previously pled guilty to a three-count superseding indictment charging conspiracy to distribute crack cocaine and heroin, unlawful distribution of heroin, and unlawful possession of a firearm by a felon, was sentenced to 188 months’ imprisonment, to be followed by 8 years’ supervised release, and was fined $600.00. The offenses occurred between 2015 and July 2016 in Jackson County.
Evidence at the plea and sentencing hearings established that Allison was involved with others in the distribution of crack cocaine and heroin in Murphysboro and Carbondale. On March 31, 2016, Allison sold heroin to a confidential source working for law enforcement. When agents executed a search warrant at Allison’s Murphysboro residence, they located over 18 grams of crack cocaine, 19 grams of heroin, cannabis, a large amount of U.S. currency, and a loaded .22 caliber revolver. When agents later executed a search warrant at Allison’s Carbondale residence, they located 9 grams of crack cocaine, 9.5 grams of heroin, and a large amount of U.S. currency. At sentencing, the district judge found that Allison was responsible for the distribution of 168.25 grams of crack cocaine and 135 grams of heroin. Allison received an enhanced sentence based on his classification as an Armed Career Criminal.
The investigation was conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, and Carbondale Police Department. The Jackson County States Attorney’s Office also assisted in the investigation.
Justice Department Announces Nationwide Initiative to Combat Sexual Harassment in HousingRead the Press Release
WASHINGTON — Today, as the Department of Justice recognizes the 50th Anniversary of the Fair Housing Act, Attorney General Jeff Sessions announced the nationwide rollout of an initiative aimed at increasing awareness and reporting of sexual harassment in housing. The announcement includes an interagency task force between the Department of Housing and Urban Development (HUD) and the Justice Department to combat sexual harassment in housing, an outreach toolkit, and a public awareness campaign. This three-pronged approach will strengthen the Department’s efforts to combat sexual harassment in housing.
“Sexual harassment in housing is illegal, immoral, and unacceptable," said Attorney General Sessions. “It is all too common today, as too many landlords, managers, and their employees attempt to prey on vulnerable women. We will not hesitate to pursue these predators and enforce the law. In October, I ordered a new initiative to bring more of these cases, and we have already won relief for 15 victims. Today we announce three new steps to make the initiative more effective and to win more cases. I want to thank the dedicated and committed professionals in our Civil Rights Division and our partners in the Department of Housing and Urban Development for their hard work in this effort. We will continue to aggressively pursue harassers, because everyone has a right to be safe in their home.”
“All discrimination stains the very fabric of our nation, but HUD is especially focused on protecting the right of everyone to feel safe and secure in their homes, free from unwanted sexual harassment,” said Secretary Ben Carson. “No person should have to tolerate unwanted sexual advances in order to keep a roof over his or her head. Part of our mission at HUD is to provide safe housing and we will remain diligent in this mission to protect those we serve. I look forward to working with Attorney General Sessions and the Department of Justice as part of this task force to bring an end to this type of discrimination.”
In October 2017, the Justice Department announced an initiative to combat sexual harassment in housing and launched pilot programs in Washington, D.C. and the Western District of Virginia. The initiative sought to increase the Department’s efforts to protect women from harassment by landlords, property managers, maintenance workers, security guards, and other employees and representatives of rental property owners. During the pilots, the Department developed and tested ways to better connect both with victims of sexual harassment in housing and with those organizations that victims may turn to first for help – including law enforcement, legal services providers, public housing authorities, sexual assault services providers, and shelters. The Department also tested certain aspects of the initiative in other jurisdictions, including New Jersey, the Central District of California, Massachusetts, Vermont, and Michigan.
The two pilot programs generated an upswing in harassment reporting to the Department from both D.C. and the Western District of Virginia. In D.C., the Department generated six leads since the October 2017 launch. In Virginia, the Department generated three leads. While the Justice Department recognizes that leads and investigations do not always lead to enforcement actions, the pilot program’s results—when extrapolated across all the U.S. Attorney’s Offices across the country—could lead to hundreds of new reports of sexual harassment in housing across the country.
Because of these promising results, the Department is rolling out three major components to the Initiative.
First, the new HUD-DOJ Task Force to Combat Sexual Harassment in Housing will drive a shared strategy between the Department and HUD for combatting sexual harassment in housing across the country. It will focus on five key areas: continued data sharing and analysis, joint development of training, evaluation of public housing complaint mechanisms, coordination of public outreach and press strategy, and review of federal policies.
Second, the outreach toolkit is designed to leverage the Justice Department’s nationwide network of U.S. Attorney’s Offices. The toolkit provides templates, guidance, and checklists based on pilot program feedback. It ultimately will amplify available enforcement resources and help victims of sexual harassment connect with the Department.
Third, the public awareness campaign has three major components: a partnership package with relevant stakeholders, launch of a social media campaign, and Public Service Announcements. The campaign is specifically designed to raise awareness, and make it easier for victims all over the country to find resources and report harassment.
More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of sexual harassment in housing should call the Department at 1-844-380-6178, send an e-mail to [email protected], or contact HUD at 1-800-669-9777. If you have information or questions about any other housing discrimination, you can contact the Department at 1-800-896-7743.
Justice Department Announces Nationwide Initiative to Combat Sexual Harassment in HousingRead the Press Release
MADISON/MILWAUKEE, WIS. — Today, as the Department of Justice recognizes the 50th Anniversary of the Fair Housing Act, Attorney General Jeff Sessions announced the nationwide rollout of an initiative aimed at increasing awareness and reporting of sexual harassment in housing. The announcement includes an interagency task force between the Department of Housing and Urban Development (HUD) and the Justice Department to combat sexual harassment in housing, an outreach toolkit, and a public awareness campaign. This three-pronged approach will strengthen the Department’s efforts to combat sexual harassment in housing.
“Sexual harassment in housing is illegal, immoral, and unacceptable," said Attorney General Sessions. “It is all too common today, as too many landlords, managers, and their employees attempt to prey on vulnerable women. We will not hesitate to pursue these predators and enforce the law. In October, I ordered a new initiative to bring more of these cases, and we have already won relief for 15 victims. Today we announce three new steps to make the initiative more effective and to win more cases. I want to thank the dedicated and committed professionals in our Civil Rights Division and our partners in the Department of Housing and Urban Development for their hard work in this effort. We will continue to aggressively pursue harassers, because everyone has a right to be safe in their home.”
“All discrimination stains the very fabric of our nation, but HUD is especially focused on protecting the right of everyone to feel safe and secure in their homes, free from unwanted sexual harassment,” said Secretary Ben Carson. “No person should have to tolerate unwanted sexual advances in order to keep a roof over his or her head. Part of our mission at HUD is to provide safe housing and we will remain diligent in this mission to protect those we serve. I look forward to working with Attorney General Sessions and the Department of Justice as part of this task force to bring an end to this type of discrimination.”
Wisconsin’s two U.S. Attorneys, Matthew D. Krueger (Eastern District) and Scott C. Blader (Western District) said jointly, “No one should be sexually harassed when buying or renting a home. Our offices are committed to fighting sexual harassment in housing, and we encourage anyone who believes they have been the victim of such conduct to contact the U.S. Justice Department or the Department of Housing and Urban Development.”
In October 2017, the Justice Department announced an initiative to combat sexual harassment in housing and launched pilot programs in Washington, D.C. and the Western District of Virginia. The initiative sought to increase the Department’s efforts to protect women from harassment by landlords, property managers, maintenance workers, security guards, and other employees and representatives of rental property owners. During the pilots, the Department developed and tested ways to better connect both with victims of sexual harassment in housing and with those organizations that victims may turn to first for help – including law enforcement, legal services providers, public housing authorities, sexual assault services providers, and shelters. The Department also tested certain aspects of the initiative in other jurisdictions, including New Jersey, the Central District of California, Massachusetts, Vermont, and Michigan.
The two pilot programs generated an upswing in harassment reporting to the Department from both D.C. and the Western District of Virginia. In D.C., the Department generated six leads since the October 2017 launch. In Virginia, the Department generated three leads. While the Justice Department recognizes that leads and investigations do not always lead to enforcement actions, the pilot program’s results—when extrapolated across all the U.S. Attorney’s Offices across the country—could lead to hundreds of new reports of sexual harassment in housing across the country.
Because of these promising results, the Department is rolling out three major components to the Initiative.
First, the new HUD-DOJ Task Force to Combat Sexual Harassment in Housing will drive a shared strategy between the Department and HUD for combatting sexual harassment in housing across the country. It will focus on five key areas: continued data sharing and analysis, joint development of training, evaluation of public housing complaint mechanisms, coordination of public outreach and press strategy, and review of federal policies.
Second, the outreach toolkit is designed to leverage the Justice Department’s nationwide network of U.S. Attorney’s Offices. The toolkit provides templates, guidance, and checklists based on pilot program feedback. It ultimately will amplify available enforcement resources and help victims of sexual harassment connect with the Department.
Third, the public awareness campaign has three major components: a partnership package with relevant stakeholders, launch of a social media campaign, and Public Service Announcements (PSAs) run by individual U.S. Attorney’s offices. The campaign is specifically designed to raise awareness, and make it easier for victims all over the country to find resources and report harassment.
More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of sexual harassment in housing should call the Department at 1-844-380-6178, send an e-mail to [email protected], or contact HUD at 1-800-669-9777. If you have information or questions about any other housing discrimination, you can contact the Department at 1-800-896-7743.
Pubic Service Announcement
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Illegal Alien Deported on Seven Prior Occasions Pleads Guilty and Sentenced to 21 Months in PrisonRead the Press Release
U.S. Attorney Brandon J. Fremin announced today that a JOSE PEREZ-BARRIOS, age 46, plead guilty and was sentenced on a single count indictment charging him with illegal reentry into the United States by a removed alien.
The indictment charges, and the defendant admitted, that he is a citizen of Mexico, was knowingly present in the United States without having obtained the consent of the Attorney General of the United States or his successor, the Secretary for Homeland Security. The defendant has been previously removed from the United States on or about January 27, 2015, from Alexandria, Louisiana, and on six (6) previous occasions between 2011 and 2013.
United States District Court Judge Shelly Dick sentenced PEREZ-BARRIOS to twenty-one (21) months in prison and ordered that his sentence run consecutively to any sentence he may receive should he be convicted of a Second Degree Battery charge, currently pending in the 19th Judicial District Court.
U.S. Attorney Brandon J. Fremin stated, “Our duty is to protect public safety, taxpayer money and enforce the rule of law. This prosecution is one of many that my office intends to bring in support of the Attorney General’s Immigration Enforcement Policy and in fulfilment of my duty to the residents of the Middle District. I appreciate the hard work by all those involved in this important matter.”
This matter is being investigated by the U.S. Immigration and Customs Enforcement, and is being prosecuted by Assistant United States Attorney Lyman E. Thornton III.
Husband and Wife Sentenced for Making Meth Where Minor Child Was PresentRead the Press Release
Abingdon, VIRGINIA – A husband and wife from Bristol, Virginia will each spend time in federal prison after being sentenced last week on a pair of federal drug charges related to the manufacturing of methamphetamine on premises where a minor child was present, United States Attorney Thomas T. Cullen announced.
Charles Daniel Houser, 32, was sentenced on April 29, 2018, to 48 months in prison. In a separate hearing the same day, his wife, Ashley Nicole Houser, 32, was sentenced to 36 months in prison. The defendants previously pleaded guilty to one count each of conspiracy to manufacture methamphetamine and one count of creating a substantial risk of harm to the life of a minor while manufacturing methamphetamine.
“Our office will continue to aggressively prosecute cases involving the manufacturing of methamphetamine, particularly in cases where children are present or reside,” United States Attorney Cullen said today. “As a result of our efforts, we have seen a decline in the number of methamphetamine manufacturing cases in Southwest Virginia. We will continue to work diligently with our federal, state, and local law-enforcement partners to investigate and prosecute these cases.”
“Methamphetamine is an extremely dangerous drug. Not only can distribution and use of methamphetamine put Virginians at risk, but manufacturing methamphetamine is an inherently dangerous process that poses significant risk to the public and community,” said Attorney General Herring. “Southwest Virginia has been hit hard by addiction and methamphetamine, in particular. My team and I take these cases very seriously and we will continue to work with our federal and local partners to keep Southwest Virginia safe.”
According to information presented at previous hearings by Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, the defendants maintained a premises on Hobbs Road in Bristol for the purpose of manufacturing methamphetamine. Charles Houser, Ashley Houser, and the couple’s five-year-old son were present at the house during the period between July 5, 2015, and July 13, 2016, when the defendants have admitted to manufacturing methamphetamine.
During the execution of a search warrant at the premises on July 13, 2016, officers recovered a variety of items used for the production of methamphetamine, including a mortar bowl with residue, Crown Camp fuel, pipe cutters, funnels, sulfuric acid drain cleaner, and other drug paraphernalia, including smoking devices and syringes. A large burn pile containing additional items indicative of a recent methamphetamine laboratory was also discovered. The Housers and their minor child arrived during the search warrant execution and the defendants later admitted their activities related to the manufacture of methamphetamine.
The investigation of the case was conducted by the Washington County Sheriff’s Office and the Drug Enforcement Administration. Special Assistant United States Attorney and Virginia Assistant Attorney General Suzanne Kerney-Quillen prosecuted the case for the United States.
Houston Jury Convicts Former U.S. CongressmanRead the Press Release
HOUSTON – A federal jury convicted former U.S. Representative Stephen E. Stockman for orchestrating a scheme to steal hundreds of thousands of dollars from charitable foundations and the individuals who ran those foundations to illegally finance Stockman’s campaigns for public office and to pay for his and others’ personal expenses. U.S. Attorney Ryan Patrick. Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Assistant Director in Charge Nancy McNamara of the FBI's Washington Field Office and Special Agent in Charge D. Richard Goss of IRS-Criminal Investigation’s (CI) Houston Field Office made the announcement.
Stockman, 60, of Clear Lake, was convicted of seven counts of mail and wire fraud, one count of conspiracy to make conduit campaign contributions and false statements to the Federal Election Commission (FEC), one count of making coordinated excessive campaign contributions, two counts of making false statements to the FEC, 11 counts of money laundering and one count of filing a false tax return. Thomas Dodd, 38, of the Houston area, a former special assistant in Stockman’s congressional office, and Jason Posey, 46, formerly of Houston, a former Stockman congressional staffer, previously pleaded guilty to their involvement in the scheme.
“This case was a fantastic collaboration between the Southern District of Texas and the Department of Justice Criminal Division,” said Patrick. When public officials use their office to defraud donors and violate federal law, we will hold them accountable. Corrupt officials like former congressman Stockman make it harder for the honest ones to do their jobs.”
“Stephen Stockman abused his position as United States Congressman to defraud charitable donors and then used the proceeds of his crimes to corrupt the election process and make a range of impermissible personal expenditures,” said Cronan. “The Criminal Division is committed to preserving the public’s confidence in our government by investigating and prosecuting corrupt public officials. We also will continue to address the threat that illegal coordinated campaign contributions pose to the integrity of federal elections, and aggressively pursue these offenses at every appropriate opportunity.”
“Former Representative Stockman used his position as a Member of Congress to fraudulently solicit charitable donations for the purpose of keeping himself in public office,” said McNamara. “Today’s verdict shows that no one is above the law and the FBI and our partners will thoroughly investigate all allegation of violations of federal election system.”
“The integrity of our political system is paramount to maintaining our way of life,” said Goss. “IRS-CI Agents along with the assistant of our federal partners unraveled a scheme in which Stockman diverted considerable funds intended for charitable organizations for his own purposes that included funding his campaign. This type of behavior undermines our democracy and cannot be tolerated.”
According to the evidence presented at trial, from May 2010 to October 2014, Stockman solicited and obtained approximately $1.25 million in donations based on false pretenses. Specifically, in 2010, Stockman diverted a significant portion of $285,000 in charitable donations to pay for his and Dodd’s own personal expenses and to further Stockman’s own interests. The evidence at trial established that in 2011 and 2012, Stockman and Dodd received an additional $165,000 in charitable donations, much of which Stockman used to finance his 2012 congressional campaign.
According to the evidence at trial, shortly after Stockman took office in the U.S. House of Representatives in 2013, he and Dodd used the name of a nonprofit entity to solicit and receive a $350,000 charitable donation. Stockman used this donation for a variety of personal and campaign expenses, including illegal conduit campaign contributions, a covert surveillance project targeting a perceived political opponent and payments associated with Stockman’s U.S. Senate campaign in early 2014.
Trial evidence also demonstrated that in connection with Stockman’s Senate campaign, Posey used a nonprofit entity to secure a $450,571 donation in order to fund a purported independent expenditure for a mass-mailing project attacking Stockman’s opponent. In reality, Stockman directed and supervised the independent expenditure. Only approximately half of the donation was spent on the mail campaign, and Posey used a portion of the unspent balance to pay for expenses associated with Stockman’s Senate campaign and to fund personal expenses.
Stockman was taken into custody following the return of the verdict.
Sentencing has been set for Aug. 17, 2018. At that time, he faces up to 20 years for each of the mail and wire fraud charges, five years for the making coordinated campaign contributions, five years for each conviction of making false statements, another 10 years for each of the money laundering counts and up to three years for filing a false tax return.
The FBI and IRS-CI conducted the investigation. Assistant U.S. Attorney Melissa Annis of the Southern District of Texas and Trial Attorneys Ryan J. Ellersick and Robert J. Heberle of the Criminal Division’s Public Integrity Section are prosecuting the case.
Hartford Man Indicted for Sex Trafficking OffensesRead the Press Release
United States Attorney Matthew D. Krueger has announced that Christopher L. Childs (age 45) of Hartford, Wisconsin, appeared in federal court today for an arraignment on multiple offenses related to sex trafficking.
U.S. Attorney Krueger explained that earlier this week, a grand jury returned a three-count indictment against Childs. Count One alleges that beginning before 2009 and continuing through his arrest on March 29, 2018, Childs conspired with others to use force, fraud, and coercion to cause victims to engage in commercial sex acts, in violation of Title 18, United States Code, Section 1594. Count Two and Count Three, in turn, allege that Childs used force, fraud, and coercion to cause specific victims to engage in commercial sex acts, in violation of Title 18, United States Code, Sections 1591(a)(1) & 1591(b)(1).
If convicted of any of the counts, Childs faces up to life in prison. If convicted of Count Two or Count Three, Childs would face a mandatory minimum sentence of 15 years in federal prison and up to a life term of supervised release following any term of imprisonment. Childs also faces a fine of up to $250,000 per count.
U.S. Attorney Krueger commented, “The United States Attorney’s Office is dedicated to working with our federal, state, and local partners to prosecute these offenses vigorously and seek justice for the victims of human trafficking.” United States Krueger specifically commended the victims in this case for speaking out and helping to ensure that additional women do not become victims of violent sex trafficking by this defendant.
This case was investigated by the Federal Bureau of Investigation, the United States Department of Labor’s Office of Inspector General, the Internal Revenue Service, the Dodge County Sheriff’s Office, the Hartford Police Department, the Racine Police Department, the Department of Homeland Security, the Milwaukee Police Department, and the Wisconsin Department of Justice’s Division of Criminal Investigation.
The case has been assigned to Assistant United States Attorneys Erica J. Lounsberry and Richard G. Frohling for prosecution.
The public is cautioned that an indictment is merely a formal charge that a defendant has committed one or more violations of federal law, and every defendant is presumed innocent unless, and until, proven guilty.
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Harrisburg Man Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Khiri Arter, age 25, of Harrisburg, Pennsylvania, was indicted on April 11, 2018, by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney David J. Freed, the indictment alleges that Arter possessed with intent to distribute heroin, fentanyl, and crack cocaine on September 13, 2017, in Harrisburg. The indictment also alleges that Arter possessed a loaded Smith & Wesson 9mm handgun in furtherance of drug trafficking and unlawfully possessed that handgun as a previously convicted felon.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg Police Department. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense imprisonment for life, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Grand Island Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Joseph P. Kelly announced that on April 12, 2018, René Magana, 43 of Grand Island, was sentenced to 10 years (120 months) in prison for possession with intent to distribute 50 grams or more of methamphetamine. Following the prison sentence, Magana will serve five years on supervised release.
On December 29, 2016, a search warrant was executed at Magana’s residence in Grand Island. During that search, he was found in possession of at least 54 grams of actual (pure) methamphetamine along with a digital scale and small plastic self-seal baggies.
This case was investigated by the Central Nebraska Drug & Safe Streets Task Force.
Fugitive Wanted for the Kidnapping and Murder of a Federal Agent is Added to the FBI’s “Ten Most Wanted Fugitives” ListRead the Press Release
Federal Bureau of Investigation Deputy Director David L. Bowdich, Drug Enforcement Administration (DEA) Acting Administrator Robert W. Patterson, U.S. Department of State Deputy Assistant Secretary James Walsh, and U.S. Marshals Service Acting Associate Director Derrick Driscoll today announced the addition of fugitive Rafael Caro-Quintero to the FBI’s list of “Ten Most Wanted Fugitives.”
Fugitive Rafael Caro-Quintero marks the 518th addition to the “Ten Most Wanted Fugitives” list. Caro-Quintero is wanted for his alleged involvement in the 1985 kidnapping and murder of DEA Special Agent Enrique Camarena Salazar aka “Kiki.” This is the first time a DEA fugitive has been listed on the FBI Top Ten Most Wanted Fugitives List.
In addition, DEA and U.S. Attorney Richard P. Donoghue for the Eastern District of New York today announced the unsealing of an additional indictment against Quintero, alleging his role as leader of a continuing criminal enterprise and the individual responsible for the brutal murder of Camarena. The indictment also details his leadership role in trafficking methamphetamine, heroin, cocaine and marijuana into the United States and elsewhere and reflects his criminal activities from 1980 to 2017. (EDNY Docket No. 15-CO-208(S-2)
On July 30, 1992, a federal arrest warrant was issued by the U.S. District Court, Central District of California, charging Caro-Quintero with violent crimes in aid of racketeering; conspiracy to kidnap a federal agent; kidnapping of a federal agent; felony murder of a federal agent; aiding and abetting; and accessory after the fact.
“Together with our federal partners at the DEA, the U.S. Marshals Service, and the U.S. Department of State, we are committed to bring to justice this dangerous criminal and cartel leader responsible for the brutal murder of a DEA Agent,” said FBI Deputy Director Bowdich. “Special Agent Camarena was devoted to stopping drug trafficking and breaking the cycle of drug-related crime. He showed tremendous courage to pursue the most violent drug traffickers, and it is because of his courage, and his selflessness, that we're not going to stop looking for Caro-Quintero until we find him and put him back behind bars where he belongs.”
“The DEA is grateful for all of the federal law enforcement agencies that have committed to pursuing Rafael Caro-Quintero until the moment he is captured and returned to his rightful place in prison,” said DEA Acting Administrator Patterson. ‘Kiki’ Camarena holds a special place in our hearts and his sacrifice will always be remembered by the men and women of DEA who carry out our mission every day.”
“Our $20 million Narcotics Reward Program offer reflects the State Department’s commitment to the government-wide effort to track down Caro-Quintero,” said Deputy Assistant Secretary of State Walsh. “We’re pleased to be using the Reward Program to support this reinvigorated law enforcement effort, and at long last bring this criminal to justice.”
“The U.S. Marshals remain steadfast in the pursuit of justice for our brother, DEA Special Agent “Kiki” Camarena,” said U.S. Marshals Associate Director for Operations Derrick Driscoll. “We will continue to leverage all resources and work with our law enforcement partners here and in Mexico to develop the information that will lead to the capture of Rafael Caro Quintero.”
Caro-Quintero is widely regarded as one of the Mexican “godfathers” of drug trafficking, and helped to form the Guadalajara Cartel in the late 1970s. Allegedly, he became one of the primary suppliers of heroin, cocaine, and marijuana to the United States, and was in charge of the cartel in Costa Rica and the U.S./Mexico border.
In November of 1984, Mexican authorities raided a 2,500 acre marijuana plantation owned by Caro-Quintero. The Guadalajara Cartel blamed Special Agent Camarena for the takedown, and decided to retaliate.
Special Agent Camarena – a former Marine, fireman, police officer, and deputy sheriff – was extremely close to unlocking a million-dollar drug pipeline from Mexico to the United States in 1985. Before he was able to expose the drug-trafficking operations, he was kidnapped en route to lunch with his wife on Feb. 7, 1985, in Guadalajara, Jalisco, Mexico. Allegedly, the direct orders for the kidnapping came from Caro-Quintero. Camarena was surrounded by five armed men who threw him into a car, then sped away. It is believed that Camarena died within two to three days of his kidnapping, but his body was not found until March 5, 1985. Special Agent Camarena is survived by his wife and three sons.
The Department of State’s Narcotics Rewards Program is offering a reward of up to $20 million for information leading to the arrest and/or conviction of Rafael Caro-Quintero. Anyone with information concerning Caro-Quintero should take no action themselves, but should immediately contact the nearest U.S. Embassy or Consulate.
Caro-Quintero is described as follows: Name: Rafael Caro-Quintero, aka “Rafa”
Dates of Birth Used: Oct. 24, 1952; October 2, 1952; Nov. 24, 1952; Oct. 24, 1955; Nov. 24, 1955; March 9, 1963
Height: 6’0”
Weight: Approximately 159 to 170 pounds
Place of Birth: Badiraguato, Sinaloa, Mexico
Rafael Caro-Quintero replaces Jesus Roberto Munguia on the “Ten Most Wanted Fugitives” list.
The FBI’s “Ten Most Wanted Fugitives” list was established in March of 1950. Since then, 484 fugitives have been apprehended or located – 162 of them as a result of citizen cooperation.
Tips may also be directed 1-800-CALL-FBI (1-800-225-5324), or can be submitted online at tips.fbi.gov.
Additional information concerning Caro-Quintero, including his Wanted poster and the FBI’s list of “Ten Most Wanted Fugitives”, can be found by visiting the FBI’s website at www.fbi.gov.Fugitive Added to FBI’s “Ten Most Wanted List” is Subject of an INTERPOL Red NoticeRead the Press Release
Today, a fugitive wanted for the kidnapping and murder of a federal agent was added to the FBI’s “Ten Most Wanted Fugitives” List. Fugitive Rafael Caro-Quintero is also the subject of a U.S.-issued INTERPOL Red Notice processed by INTERPOL Washington—the U.S. National Central Bureau. The announcement was made during a news conference held by Federal Bureau of Investigation Deputy Director David L. Bowdich, Drug Enforcement Administration Acting Administrator Robert W. Patterson, U.S. Department of State Deputy Assistant Secretary James Walsh, and U.S. Marshals Service Acting Associate Director Derrick Driscoll. The Drug Enforcement Administration news release is available here.
The Department of State’s Narcotics Rewards Program is offering a reward of up to $20 million for information leading to the arrest and/or conviction of Rafael Caro-Quintero. Anyone with information concerning Caro-Quintero should take no action themselves, but should immediately contact the nearest U.S. Embassy or Consulate. Caro-Quintero is considered armed and extremely dangerous.
One of the primary missions of INTERPOL and INTERPOL Washington is to seek the location, and ultimately the arrest, of fugitives wanted in the United States and in other countries. INTERPOL Washington assists federal, state, local, and tribal authorities in the United States seeking the location of fugitives who have fled the United States, and assists foreign police in locating their fugitives believed to be in the United States. INTERPOL Washington is also responsible for seeking the publication of all INTERPOL Notices, including Red or wanted fugitives Notices, on behalf of U.S. authorities, and alerting U.S. authorities to the existence of INTERPOL Notices published on behalf of other countries.
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
Source INTERPOL The INTERPOL Red Notice for Rafael Caro-Quintero.Four-Year Prison Sentence for Filing False Income Tax Returns Highlights Consequences for Tax CrimesRead the Press Release
ROCK ISLAND, Ill. – The sentencing today of a Rock Island, Ill., woman for preparing false tax returns to generate refunds serves to highlight the potential serious legal consequences for running afoul of the tax laws.
This afternoon, U.S. District Judge Sara Darrow sentenced Roshaun J. Terry to 48 months in prison and ordered her to pay $214,329 in restitution to the IRS. Terry waived indictment and pleaded guilty on Sept. 18, 2017, to preparing false income tax returns for others to generate refunds. From February 2010 to May 2015, Terry was responsible for preparation of approximately 240 false tax returns that requested more than $500,000 in fraudulent refunds. Assistant U.S. Attorney Don Allegro represented the government in the prosecution of Terry.
In advance of the April 17, 2018, tax filing deadline, the U.S. Attorney’s Office and IRS Criminal Investigation, Chicago Field Office, are reminding citizens that falsely preparing tax returns and evading taxes are crimes.
“Every year, the people of the Central District of Illinois dutifully fulfill their obligation to fund their state and local governments,” stated U.S. Attorney John Childress. “Unfortunately, a few shirk that duty or worse, attempt to profit at the expense of their fellow citizens. Such behavior is not only illegal but unjust and those who engage in tax crimes will face vigorous investigation and prosecution.”
“As we approach the closing of this tax filing season, those Americans who file accurate, honest and timely returns can be assured that the government will hold accountable those who do not,” said Gabriel Grchan, the Special Agent in Charge of the Chicago Field Office. “Today’s sentencing of Roshaun Terry emphasizes that the Internal Revenue Service and the U.S. Attorney’s Office will continue their aggressive pursuit of those who would attempt to defraud America’s tax system.”
Three additional tax cases with activity in December 2017 reinforce this message:
Hisham Jaber, of Peoria, Ill., owner of H & M Investments, Inc., was sentenced to 24 months in prison and ordered to pay $506,416 in restitution to the IRS. Jaber operated Smokers Paradise, two retail tobacco shops, in Pekin and Canton, Ill. Jaber pleaded guilty in August to underreporting or failing to report a combined total of more than $1.5 million in taxable income for H & M Investments, Inc., for tax years 2010 through 2013. Supervisory Assistant U.S. Attorney Darilynn J. Knauss represented the government in the prosecution of Jaber.
Tina Cozart, of California, formerly of Carlock, Ill., was sentenced to 42 months in prison for defrauding her former employer of more than $1 million. In addition to restitution to her former employer and an insurance company, Cozart was ordered to pay $346,299 to the IRS. Cozart pled guilty to wire fraud and filing a false tax return. Supervisory Assistant U.S. Attorney Darilynn J. Knauss represented the government in the prosecution of Cozart.
West Mpetshi (ma-pet-shē), of Jacksonville, Ill., was indicted on charges that he aided and assisted in the preparation of false income tax returns in 2015 and 2016. Trial is scheduled for August 2018. Assistant U.S. Attorney Gregory K. Harris is representing the government in the prosecution of Mpetshi. An indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
For help and assistance in choosing reputable tax professionals for preparing tax returns, or for assistance in preparation of individual tax returns, please visit the official IRS website: https://www.irs.gov/help-resources
Four people indicted for marijuana grow operation in Geauga and Ashtabula counties; nearly 1,600 plants and 20 firearms were seizedRead the Press Release
Four people were indicted in federal court for their roles in a marijuana grow and distribution ring in which nearly 1,600 plants and numerous firearms were seized.
Named in the six-count indictment are: James Nagy, 37, of Willoughby; Kenneth Sovaca, 27, of Geneva; Bridget Gregori, 27, of Richmond Heights, and Robert Weikart, 37, of Wickliffe.
Nagy, Sovaca and Weikert are charged with conspiracy to possess with intent to distribute marijuana. Weikart is charged with possession of a firearm in furtherance of drug trafficking.
All four defendants are charged with maintaining a drug house from an address on Ledge Road in Thompson Township. Nagy and Weikart are charged with maintaining a drug house related to an address on Clay Street in Ashtabula County.
Investigators seized approximately 1,580 plants from two locations on Nov. 7, 2017. They also seized $107,822 in cash and approximately 20 firearms, according to court documents.
“We have seen time and again that guns are unfortunately present in every large drug operation,” U.S. Attorney Justin E. Herdman said. “This was a large marijuana trafficking organization that, not surprisingly, included an AK-47 and other firearms as part of its illegal enterprise. This is but one example of what we see in law enforcement operations all the time – where there are large amounts of drugs and cash, violence and firearms are almost always present as well.”
DEA Special Agent in Charge Timothy Plancon said: “Drug trafficking and violence are synonymous. The arrest and prosecution of these gun-toting marijuana dealers contributes to the safety of the Geauga and Ashtabula community.”
This case was investigated by the Drug Enforcement Administration, Geauga County Sheriff’s Office, Willoughby Police Department, Ashtabula County Sheriff’s Office, Ashtabula Police Department, Westlake Police Department, Lake County Narcotics Agency and Ohio BCI. It is being prosecuted by Assistant U.S. Attorney Marisa T. Darden and Special Assistant U.S. Attorney Christopher Joyce of the Geauga County Prosecutor’s Office.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Four Indicted for Heroin TraffickingRead the Press Release
BOSTON – Three Lawrence men and one Leominster man were indicted today in federal court in Worcester in connection with a heroin trafficking scheme.
Carlos Rodriguez, 42; Ernesto Rodriguez, 48; and Joshua Sanchez, 27; all of Lawrence, and Jorge Burgos, 39, of Leominster, were indicted today on charges of conspiring to distribute and possess with the intent to distribute in excess of 100 grams of heroin and fentanyl. On Feb. 7, 2017, the defendants were arrested; Burgos and Sanchez have been detained since, and Carlos Rodriguez and Ernesto Rodriguez were released on conditions.
According to court documents, as a result of various wiretaps capturing the defendants’ discussions of sales and purchases of heroin/fentanyl, in November and December 2017, law enforcement agents conducted surveillance of Burgos purchasing heroin for resale from Carlos Rodriguez, Ernesto Rodriguez, and others. In addition, on Dec. 19, 2017, law enforcement stopped Sanchez after he left Carlos Rodriguez’s home and found Sanchez in possession of approximately 60 grams of suspected heroin/fentanyl. The following day, after intercepted communications suggested that Carlos Rodriguez would be delivering 50 grams of heroin to Burgos at his residence in Leominster, agents conducted a stop of the vehicle Carlos Rodriguez was driving and recovered approximately 50 grams of suspected heroin and/or fentanyl. Further investigation led to the recovery of at least 100 additional grams of suspected heroin and fentanyl from Ernesto Rodriguez. It is further alleged that intercepted communications captured Carlos Rodriguez discussing with Burgos how agents had stopped him on the way to Burgos’ residence and captured him discussing with another individual where to hide a firearm from authorities.
The charge of conspiring to distribute in excess of 100 grams of heroin provides for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Raymond Moss, Acting Inspector in Charge of the United States Postal Inspection Service; Massachusetts Attorney General Maura Healey; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Worcester Police Chief Steven M. Sargent; Leominster Interim Police Chief Michael Goldman; Milford Police Chief Thomas J. O’Loughlin; and Leicester Police Chief James J. Hurley made the announcement today. Assistant U.S. Attorney Mark Grady of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Four Correctional Officers Indicted in Federal CourtRead the Press Release
BOISE – A Boise federal grand jury has indicted four current correctional officers employed by the Idaho Department of Correction (“IDOC”), U.S. Attorney Bart M. Davis announced. In another case, the grand jury indicted a former IDOC correctional officer, a former IDOC inmate and the inmate’s associate.
Both cases were indicted on April 10, 2018, and all seven defendants were arrested earlier today. One indictment charges four IDOC correctional officers with several federal offenses as follows:
- IDOC correctional officer Timothy Landon, 35, of Boise, is charged with two counts of conspiracy to aid and abet the distribution of controlled substances and one count of possession and transportation of contraband cigarettes;
- IDOC correctional officer Richard McCollough, 36, of Boise, is charged with one count of conspiracy to aid and abet the distribution of controlled substances, two counts of possession of a firearm in furtherance of a drug trafficking crime and one count of distribution of cocaine;
- IDOC correctional officer Eric Thompson, 38, of Star, is charged with one count of conspiracy to aid and abet the distribution of controlled substances, two counts of possession of a firearm in furtherance of a drug trafficking crime and one count of distribution of cocaine; and
- IDOC correctional officer Robert Wallin, 35, of Boise, is charged with one count of conspiracy to aid and abet the distribution of controlled substances and one count of possession and transportation of contraband cigarettes.
The case arose out of the defendants’ willingness to participate in a large-scale drug trafficking organization and to use their positions as IDOC employees to assist in illegal activity.
The charges of conspiracy to aid and abet the distribution of controlled substances and distribution of cocaine are punishable by a minimum of ten years in prison up to life and a $10,000,000 fine. The charge of possession of a firearm in furtherance of a drug trafficking crime is punishable by a minimum of five years in prison in addition to the sentence for the underlying drug crime. A second conviction for this offense carries with it an additional 25-year prison sentence to run consecutively to the first conviction for this offense and the underlying drug crime. The charge of possession and transportation of contraband cigarettes is punishable by up to five years in prison and a $250,000 fine.
The second indictment charges former IDOC correctional officer Joshua Barney, 43, of Boise, former IDOC inmate Colin McIntyre, 27, of Stanfield, Oregon, and McIntyre’s associate, Tiffany Culbertson, 23, of Meridian, each with one count of conspiracy to commit Hobbs Act extortion under color of official right, two counts of Hobbs Act extortion under color of official right, one count of conspiracy to use a facility in interstate commerce in furtherance of unlawful activity and two counts of use of a facility in interstate commerce in furtherance of unlawful activity.
This case arose out of the defendants’ scheme to smuggle contraband into an IDOC prison facility. Hobbs Act violations are punishable by up to 20 years in prison and a $250,000 fine. Conspiracy to use, and using, a facility in interstate commerce in furtherance of unlawful activity is punishable by up to five years in prison and a $250,000 fine.
The indictments resulted from an investigation initiated by the Federal Bureau of Investigation (FBI) at IDOC’s request to address concerns of corruption among IDOC correctional officers. In addition to the FBI, the Boise Police Department, the Meridian Police Department, and the Ada County Prosecutor’s Office participated in the investigation.
An indictment is a means of charging a person with criminal activity. It is not evidence. A person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
- IDOC correctional officer Timothy Landon, 35, of Boise, is charged with two counts of conspiracy to aid and abet the distribution of controlled substances and one count of possession and transportation of contraband cigarettes;
Four Area Pharmacists, One Doctor, and One Patient Recruiter Charged with Scheme to Bill Insurance for Medications Not DispensedRead the Press Release
An indictment was unsealed today charging Samir Berri, R.Ph.; Anthony Cole, R.Ph.; Shamimur Rahman, R.Ph.; Ghassan Hamka, R.Ph.; Asm Akter Ahmed, M.D.; and Fouzi Ramouni with multiple health care fraud offenses, U.S. Attorney Matthew Schneider announced today. Berri, Ahmed and Ramouni are also charged with distributing and conspiring to distribute controlled substances (all opioids).
Schneider was joined in the announcement by Special Agent in Charge Timothy Slater of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office.
Charged in the indictment are:
Samir Berri, R.Ph., 42, of West Bloomfield
Anthony Cole, R.Ph., 38, of Wyandotte
Shamimur Rahman, R.Ph., 41, of Clinton Township
Ghassan Hamka, R.Ph., 31, of Dearborn
Fouzi Ramouni, 42, of Madison Heights
Dr. Asm Akter Ahmed, 58, of Hamtramck,
According to the indictment, between January 2011 and August 2017, the four pharmacists were co-owners and pharmacists-in-charge of four area pharmacies – Conant Plaza Pharmacy, 3611 Carpenter Street in Detroit; Buckley’s Pharmacy of Hazel Park, 20721 Dequindre in Hazel Park; Buckley’s Pharmacy of Detroit, 14313 Greenfield in Detroit; Buckley’s Eastside Pharmacy, 15014 Eight Mile in Detroit; and Buckley Brands, 18021 Conant Street in Detroit.
The indictment alleges that all four pharmacies fraudulently billed Medicare, Medicaid, and Blue Cross Blue Shield for controlled substances, that were dispensed, and high-priced medications that were not dispensed. The scheme was detected by Medicare, in part, because of a deficit between each pharmacy’s recorded inventories and the claims that each submitted for insurance reimbursement. The fraudulent billings netted the pharmacies combined profits in excess of five million dollars, which the co-owners then converted to their own personal use. As one part of the scheme to defraud, the defendants billed insurance companies for providing medications to people who had died prior to the claimed date of delivery.
The indictment further alleges that some of the fraudulent billings were generated in connection with a related conspiracy between defendants Samir Berri, Dr. Akter Ahmed and Fouzi Ramouni. According to the indictment, Ramouni recruited and paid Medicare and Medicaid beneficiaries to visit Dr. Akter Ahmed. Without a genuine examination or a showing of medical necessity, Dr. Ahmed prescribed opioids for these patients, including Carisoprodol and promethazine codeine syrup. In addition to prescribing opioids, Dr. Ahmed also prescribed unnecessary and expensivemedications. Ramouni and/or the “patient” then took the opioid prescriptions to Conant Plaza Pharmacy, where Samir Berri would fill them without questions. Berri would, in turn, bill insurance for dispensing the controlled substances, and fraudulently bill insurance for dispensing the expensive maintenance medications. According to the indictment, the controlled substances diverted for sale on the street had a street value in excess of $1,000,000.
United States Attorney Schneider stated, “Today’s opioid epidemic is fueled, in part, by the greed of certain doctors and pharmacists who knowingly divert legitimate pain medications and narcotics to drug dealers for illegal distribution in our communities. To make matters worse, these doctors and pharmacists sometimes defraud Medicare, Medicaid and private insurance in order to generate even greater profits for themselves. We will continue to use every means available to investigate and prosecute these cases.”
“Today’s operation highlights the FBI’s commitment to combating the illegal distribution of opioids and narcotics by doctors, pharmacists, and dealers”, said Timothy R. Slater, Special Agent in Charge, Detroit Division of the FBI. “This investigation makes it clear that dishonest health care professionals who exploit Medicare, Medicaid, and private insurance companies through fraudulent billing and other schemes will be held accountable for their crimes”.
“Medical professionals have an obligation to ensure the appropriate prescribing and dispensing of Opioid medications”, said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “When they choose to turn their back on this obligation in order to fulfill their appetite for improper financial gain they will be held accountable. The OIG has made combatting the opioid crisis a top enforcement priority and will continue to work with our law enforcement partners to investigate those who act illegally and put patient’s health and safety at risk”.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
If convicted of a health care fraud charge, the defendants face a maximum sentence of imprisonment of ten years, and a maximum fine of $250,000.
The case was investigated by Special Agents of the HHS and FBI, with cooperation and assistance from the Michigan Department of Health and Human Services - Office of Inspector General.
Anyone with information about suspected health care fraud in Michigan is encouraged to contact the FBI’s Detroit Field Office at 313-965-2323.
The case is being prosecuted by Assistant U.S. Attorneys John Engstrom and Brant Cook.
Fostoria man indicted for recording himself sexually assaulting young boys and having more than 1,000 images of child pornographyRead the Press Release
A Fostoria man was indicted for recording himself sexually assaulting young boys and having more than 1,000 images of child pornography, said U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Stephen D. Anthony.
Charles Brian O’Neill, 58, was indicted for production of child pornography and receipt and distribution of child pornography.
Investigators responded to O’Neill’s house based upon a tip that he had numerous images of nude boys between the ages of 2 and 17. Investigators located child pornography on O’Neill’s phone and arrested him. A subsequent search of O’Neill’s barn on Bairdstown Road in Wood County contained sexual paraphernalia, condoms and sex toys, as well as children’s costumes, according to court documents.
A review of a computer in the barn showed a video of O’Neill performing sex acts on a prepubescent male. Another video shows O’Neill performing sex acts on a prepubescent male inside a bedroom, according to court documents.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Federal Bureau of Investigation and Fostoria Police Department. It is being prosecuted by Assistant U.S. Attorney Tracey Ballard Tangeman.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Fort Dix Correctional Officer Charged with Accepting Bribes in Exchange for Delivering Contraband to InmatesRead the Press Release
NEWARK, N.J. – A corrections officer was arrested for allegedly accepting cash bribes in exchange for delivering contraband to inmates at Federal Correctional Institution Fort Dix (FCI Fort Dix), U.S. Attorney Craig Carpenito and Special Agent in Charge Ronald G. Gardella of the U.S. Department of Justice Office of the Inspector General, New York Field Division, announced today.
Paul Anton Wright, 32, of Berlin, New Jersey, was arrested by federal agents this morning and charged by complaint with agreeing to accept and accepting bribes. Wright appeared this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and was released on $100,000 unsecured bond.
According to the complaint:
In 2015, Wright, a corrections officer at FCI Fort Dix, allegedly smuggled contraband, including K2 synthetic marijuana and suboxone, a Schedule III narcotic used to treat opioid addiction, to inmates inside FCI Fort Dix. Wright received the contraband and cash bribes from two individuals outside of FCI Fort Dix.
For instance, between February and September 2015, Wright received thousands of dollars in cash payments from the relative of an FCI Fort Dix inmate and subsequently delivered contraband, including K2, to the inmate. According to bank records, on Feb. 19, 2015, there was a $2,500 cash withdrawal from the relative’s bank account and a $2,500 deposit into Wright’s bank account the following day. There were also three phone calls between Wright and the relative during this two-day period. On other occasions, the cash payments were deposited into Wright’s bank accounts or used by Wright for cash buy-ins at the Borgata casino in Atlantic City, New Jersey.
In addition, between October and December 2015, Wright received thousands of dollars in cash payments from the relative of an inmate’s girlfriend. Wright met with this relative in Bronx, New York, on multiple occasions, and on each occasion, Wright accepted contraband and cash. He subsequently delivered the contraband to an inmate at FCI Fort Dix.
The bribery count with which Wright is charged carries a maximum potential penalty of 15 years in prison and a $250,000 fine.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Justice Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge Gardella, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the U.S. Attorney’s Office Criminal Division.
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Defense counsel: Linda Foster Esq., Assistant Federal Public Defender, Newark
Former U.S. Congressman Convicted of Mail and Wire Fraud, Campaign Finance Violations, Money Laundering and Filing a False Tax ReturnRead the Press Release
A federal jury convicted former U.S. Representative Stephen E. Stockman for orchestrating a scheme to steal hundreds of thousands of dollars from charitable foundations and the individuals who ran those foundations to illegally finance Stockman’s campaigns for public office and to pay for his and others’ personal expenses. Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Assistant Director in Charge Nancy McNamara of the FBI's Washington Field Office and Special Agent in Charge D. Richard Goss of Internal Revenue Service-Criminal Investigation’s (IRS-CI) Houston Field Office made the announcement.
Stockman, 61, of Clear Lake, Texas, was convicted of seven counts of mail and wire fraud, one count of conspiracy to make conduit campaign contributions and false statements to the Federal Election Commission (FEC), one count of making coordinated excessive campaign contributions, two counts of making false statements to the FEC, 11 counts of money laundering and one count of filing a false tax return. Thomas Dodd, 38, of the Houston, Texas area, a former special assistant in Stockman’s congressional office, and Jason Posey, 46, formerly of Houston, a former Stockman congressional staffer, previously pleaded guilty to their involvement in the scheme.
“Stephen Stockman abused his position as United States Congressman to defraud charitable donors and then used the proceeds of his crimes to corrupt the election process and make a range of impermissible personal expenditures,” said Acting Assistant Attorney General Cronan. “The Criminal Division is committed to preserving the public’s confidence in our government by investigating and prosecuting corrupt public officials. We also will continue to address the threat that illegal coordinated campaign contributions pose to the integrity of federal elections, and aggressively pursue these offenses at every appropriate opportunity.”
“This case was a fantastic collaboration between the Southern District of Texas and the Department of Justice’s Criminal Division,” said U.S. Attorney Patrick. “When public officials use their office to defraud donors and violate federal law, we will hold them accountable. Corrupt officials like former congressman Stockman make it harder for the honest ones to do their jobs.”
“Former Representative Stockman used his position as a Member of Congress to fraudulently solicit charitable donations for the purpose of keeping himself in public office,” said Assistant Director McNamara. “Today’s verdict shows that no one is above the law and the FBI and our partners will thoroughly investigate all allegation of violations of federal election system.”
“The integrity of our political system is paramount to maintaining our way of life,” said Special Agent in Charge Goss. “IRS-CI Agents along with the assistant of our Federal partners unraveled a scheme in which Stockman diverted considerable funds intended for charitable organizations for his own purposes that included funding his campaign.” This type of behavior undermines our democracy and cannot be tolerated.”
According to the evidence presented at trial, from May 2010 to October 2014, Stockman solicited and obtained approximately $1.25 million in donations based on false pretenses. Specifically, in 2010, Stockman diverted a significant portion of $285,000 in charitable donations to pay for his and Dodd’s own personal expenses and to further Stockman’s own interests. The evidence at trial established that in 2011 and 2012, Stockman and Dodd received an additional $165,000 in charitable donations, much of which Stockman used to finance his 2012 congressional campaign.
According to the evidence at trial, shortly after Stockman took office in the U.S. House of Representatives in 2013, he and Dodd used the name of a nonprofit entity to solicit and receive a $350,000 charitable donation. Stockman used this donation for a variety of personal and campaign expenses, including illegal conduit campaign contributions, a covert surveillance project targeting a perceived political opponent and payments associated with Stockman’s U.S. Senate campaign in early 2014.
Trial evidence also demonstrated that in connection with Stockman’s Senate campaign, Posey used a nonprofit entity to secure a $450,571 donation in order to fund a purported independent expenditure for a mass-mailing project attacking Stockman’s opponent. In reality, the independent expenditure was directed and supervised by Stockman. Only approximately half of the donation was spent on the mail campaign, and Posey used a portion of the unspent balance to pay for expenses associated with Stockman’s Senate campaign and to fund personal expenses.
Stockman was taken into custody following the return of the verdict. Sentencing has been set for Aug. 17.
The FBI and IRS-CI conducted the investigation. Assistant U.S. Attorney Melissa Annis of the Southern District of Texas and Trial Attorneys Ryan J. Ellersick and Robert J. Heberle of the Criminal Division’s Public Integrity Section are prosecuting the case.
Former Puerto Rico Senator and Businessman Sentenced to Prison for BriberyRead the Press Release
Former Puerto Rico Senator Hector Martinez Maldonado and Juan Bravo Fernandez, the former president of Ranger American, one of the largest private security companies in Puerto Rico, were each sentenced today to 48 months in prison, respectively, for their roles in a bribery scheme involving the passage of legislation beneficial to Bravo Fernandez’s business, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.
Martinez Maldonado, 49, of Carolina, Puerto Rico, and Bravo Fernandez, 63, of San Juan, were each sentenced by Judge Francisco A. Besosa. Judge Besosa also ordered Bravo Fernandez to pay a $150,000 fine and Martinez Maldonado to pay a $15,000 fine. Maldonado and Fernandez were convicted on May 26, 2017, of federal program bribery.
According to evidence presented at trial, Martinez Maldonado was elected to the Puerto Rico Senate in 2004 and began serving a four-year term in January 2005. He was reelected in 2008. Beginning in 2005, Martinez Maldonado served as Chairman of the Puerto Rico Public Safety Committee, exercising significant control over legislation related to security and community safety. Bravo Fernandez was the president and chief executive officer of Ranger American, one of the largest private security firms in Puerto Rico.
The jury convicted the defendants for their role in a bribery scheme in which Bravo Fernandez provided Martinez Maldonado and Jorge de Castro Font, another former Puerto Rico senator, with a trip to Las Vegas to watch a championship boxing match between Winky Wright and Felix “Tito” Trinidad, a legendary Puerto Rican boxer, in exchange for the senators’ help with legislation favorable to Bravo Fernandez’s business interests.
Documents and evidence presented at trial showed that the trip to Las Vegas included first-class airfare; meals and drinks; hotel rooms at the Mandalay Bay Resort and Casino; $1,000 tickets to the Trinidad vs. Wright boxing match; and hotel rooms in Miami for the return trip. On March 2, 2005, the day that Bravo Fernandez paid for the boxing tickets, Martinez Maldonado submitted one of the bills favorable to Bravo Fernandez for consideration by the Puerto Rico Senate. The evidence at trial also showed that the hotel reservation was made the day after Martinez Maldonado presided over a Public Safety Committee hearing for one of the bills at which Bravo Fernandez testified, and that, the day after the three men returned from their trip to Las Vegas, Martinez Maldonado and de Castro Font both cast their votes in support of one of Bravo Fernandez’s bills in the Senate.
De Castro Font, 54, served in the Puerto Rico House of Representatives from 1989 to 2004, and served in the Puerto Rico Senate from 2005 to 2008. De Castro Font pleaded guilty on Jan. 21, 2009, to 20 counts of honest services wire fraud and one count of conspiracy to commit extortion. He was sentenced on May 17, 2011, to 60 months in prison.
The case is being investigated by the FBI’s San Juan Office. The case is being prosecuted by Deputy Chief Peter Koski and Trial Attorneys Monique Abrishami and Gwendolyn Stamper of the Criminal Division’s Public Integrity Section.
Former Local Judge Charged with Soliciting Sexual Contact in Exchange for Favorable Action on Traffic OffencesRead the Press Release
WASHINGTON – A former local probate judge for Hart County, Georgia, was charged in an indictment today for soliciting sexual contact in exchange for favorable action on driving under the influence charges and other traffic offenses, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Charles E. Peeler of the Middle District of Georgia and Special Agent in Charge David J. Levalley of the FBI’s Atlanta Division.
Bobby Joe Smith, 77, of Hartwell, Georgia, was charged with one count of bribery and three counts of civil rights violations in an indictment filed today in the Middle District of Georgia. Smith is expected to have his initial appearance on Wednesday, April 25.
According to the allegations in the indictment, between May 2013 and May 2014, Smith met separately with three different women in his office regarding driving under the influence charges and/or other traffic offenses. During these meetings, each of the women sought Smith’s assistance in reducing or eliminating her charges and potential punishments in these matters. Smith allegedly kissed the first woman on the lips and groped her multiple times without her consent. Smith subsequently reduced the charges and punishments for all of her pending offenses. During meetings with the second woman, Smith allegedly kissed her on the lips, groped her, and exposed himself. The woman’s charges were ultimately resolved by another judge after Smith left office. To help the third woman with a speeding ticket she received in another county, Smith allegedly left a message for a probate judge in that county, providing details about the woman’s citation and falsely claiming that the woman was his granddaughter. After placing the phone call, Smith allegedly kissed the woman on the lips and attempted to grope her. According to the indictment, none of these three women consented to Smith’s sexual advances.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI’s Athens Resident Agency. Trial Attorney Heidi Boutros Gesch of the Criminal Division’s Public Integrity Section and Deputy Criminal Chief Danial Bennett of the U.S. Attorney’s Office for the Middle District of Georgia are prosecuting the case.
Former Local Judge Charged with Soliciting Sexual Contact in Exchange for Favorable Action on Traffic OffensesRead the Press Release
A former local probate judge for Hart County, Georgia, was charged in an indictment today for soliciting sexual contact in exchange for favorable action on driving under the influence charges and other traffic offenses, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Charles E. Peeler of the Middle District of Georgia and Special Agent in Charge David J. Levalley of the FBI’s Atlanta Division.
Bobby Joe Smith, 77, of Hartwell, Georgia, was charged with one count of bribery and three counts of civil rights violations in an indictment filed today in the Middle District of Georgia. Smith is expected to have his initial appearance on Wednesday, April 25.
According to the allegations in the indictment, between May 2013 and May 2014, Smith met separately with three different women in his office regarding driving under the influence charges and/or other traffic offenses. During these meetings, each of the women sought Smith’s assistance in reducing or eliminating her charges and potential punishments in these matters. Smith allegedly kissed the first woman on the lips and groped her multiple times without her consent. Smith subsequently reduced the charges and punishments for all of her pending offenses. During meetings with the second woman, Smith allegedly kissed her on the lips, groped her, and exposed himself. The woman’s charges were ultimately resolved by another judge after Smith left office. To help the third woman with a speeding ticket she received in another county, Smith allegedly left a message for a probate judge in that county, providing details about the woman’s citation and falsely claiming that the woman was his granddaughter. After placing the phone call, Smith allegedly kissed the woman on the lips and attempted to grope her. According to the indictment, none of these three women consented to Smith’s sexual advances.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI’s Athens Resident Agency. Trial Attorney Heidi Boutros Gesch of the Criminal Division’s Public Integrity Section and Deputy Criminal Chief Danial Bennett of the U.S. Attorney’s Office for the Middle District of Georgia are prosecuting the case.
Former Idaho Resident Indicted for Preparing Fraudulent Income Tax ReturnsRead the Press Release
BOISE – A federal grand jury indicted David Brannum, 55, of Washougal, Washington, and formerly of Caldwell, Idaho, for preparing false income tax returns, U.S. Attorney Bart M. Davis announced.
Brannum operated a tax preparation business called “Dave’s Tax Service” in Idaho in tax years 2011, 2012, and 2013. The indictment alleges that Brannum falsified certain itemized deductions in his clients’ federal income tax returns to improperly decrease their tax liability and to inflate their tax refunds. Many clients were subsequently audited and paid back taxes and penalties. The indictment charges Brannum with thirty-one counts of aiding and assisting in the filing of false and fraudulent income tax returns.
Aiding and assisting in the filing of fraudulent federal income tax returns is punishable by up to three years in prison, a $250,000 fine, and up to one year of supervised release.
The case was investigated by the IRS Criminal Investigations division.
An indictment is a means of charging a person with criminal activity. It is not evidence. A person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Federal Correctional Officer Indicted for Making False StatementsRead the Press Release
Ocala, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Heather Lee Kussoff (31, Cape Coral) with making a false statement to a federal law enforcement agency. If convicted, she faces a maximum penalty of five years in federal prison.
According to the indictment and information presented in court, Kussoff worked as a correctional officer at the Coleman Federal Correctional Complex (FCC) in Sumter County. In 2014, she developed a personal relationship with an inmate at one of the penitentiaries. In direct violation of her job responsibilities and training, Kussoff corresponded with the inmate in a romantic capacity, shared extensive details of her personal life, and communicated directly with members of the inmate’s family. When confronted by federal authorities in March 2015, Kussoff lied under oath about the existence of the relationship and then abruptly resigned from the Bureau of Prisons.
An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Department of Justice – Office of the Inspector General, the Federal Bureau of Prisons, and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Former Employee of New Jersey Bank and Two Others Charged with Stealing Client Information and FundsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Patricia Tarasca, the Special Agent-in-Charge of the New York Region for the Federal Deposit Insurance Corporation (“FDIC”) Office of Inspector General, and Ruth M. Mendonca, the Acting Postal Inspector-in-Charge of the Newark Division of the United States Postal Inspection Service (“USPIS”), announced the unsealing today of an indictment charging SECONEY BROWN, ANTOINETTE MITCHELL-BROWN, a/k/a “Antoinette Mitchell-Morgan,” and ANTHONY ATKINSON with conspiracy to commit bank fraud and aggravated identity theft, in connection with a scheme to fraudulently obtain more than $700,000 from clients of a bank in New Jersey (“Bank-1”), at which MITCHELL-BROWN was employed during the scheme. BROWN, MITCHELL-BROWN, and ATKINSON were arrested today and will be presented later today before U.S. Magistrate Judge Robert W. Lehrburger. The case has been assigned to U.S. District Judge Gregory H. Woods.
U.S. Attorney Geoffrey S. Berman said: “Antoinette Mitchell-Brown allegedly stole client information from a bank at which she was employed and, with the help of Seconey Brown and Anthony Atkinson, used that information in an attempt to steal hundreds of thousands of dollars from the very customers Mitchell-Brown was supposed to be serving. Thanks to the work of the FDIC Office of Inspector General and the USPIS, the defendants’ alleged scheme has now been exposed.”
FDIC Special Agent-in-Charge Patricia Tarasca said: “This indictment unsealed today holds the three defendants accountable for stealing bank account information from innocent victims and aiming to transfer more than $600,000 for their personal gain. We are pleased to work with our law enforcement partners to investigate such matters of identity theft, as a way to protect banks from such abuses and the system’s integrity.”
Acting Postal Inspector-in-Charge Ruth M. Mendonca said: “Through disguise and deceit, these defendants created an elaborate bank fraud scheme to defraud financial institutions and their customers. The use of the U.S. Mail to facilitate any fraud scheme will never be tolerated by U.S. Postal Inspectors, who will continue to aggressively pursue these types of investigations.”
According to the allegations in the Indictment[1]:
From at least September 2016 until at least December 2016, MITCHELL-BROWN, BROWN, and ATKINSON engaged in a scheme to fraudulently obtain funds from more than 25 accounts at Bank-1, at which MITCHELL-BROWN was then employed. In furtherance of the scheme, MITCHELL-BROWN stole victims’ bank account information from her employer and used that information to, among other things, write checks for thousands of dollars from victims’ accounts and initiate wire transfers from victims’ accounts to bank accounts controlled by members of the scheme. BROWN and ATKINSON, among other things, paid members of the scheme or otherwise induced other individuals (some of whom provided unwitting assistance) to cash or deposit the fraudulent checks from MITCHELL-BROWN, and provide the proceeds to BROWN, ATKINSON, or, at BROWN and ATKINSON’s direction, other individuals. In total, the defendants’ scheme fraudulently obtained more than $77,000 and attempted to obtain at least an additional $660,000.
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BROWN, 25, and MITCHELL-BROWN, 41, both of East Orange, New Jersey, and ATKINSON, 22, of the Bronx, New York, are each charged with one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison, and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the assigned judge.
Mr. Berman praised the outstanding investigative work of the FDIC Office of Inspector General and the USPIS. Mr. Berman also thanked United States Immigration and Customs Enforcement’s Homeland Security Investigations and the East Orange Police Department for their assistance in the investigation.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to http://www.usdoj.gov/usao/nys/victimwitness.html.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Louis A. Pellegrino and Robert B. Sobelman are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former Chief Financial Officer of “Soup Nazi” Business Sentenced to 9 Months’ Imprisonment for Tax EvasionRead the Press Release
Earlier today, in federal court in Brooklyn, Robert N. Bertrand, the Former Chief Financial Officer of Soupman, Inc. (“Soupman”), was sentenced by United States District Judge Pamela K. Chen to nine months’ imprisonment for failure to pay Medicare, Social Security and federal income taxes, to be followed by a one year term of supervised release. Soupman, which is based on Staten Island, licenses its name and recipes from Al Yeganeh, the inspiration for the “Soup Nazi” character on the television series “Seinfeld.” The Court also ordered Bertrand to pay $78,518.18 in restitution to the United States. Bertrand pleaded guilty in December 2017.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and James D. Robnett, Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the sentence.
According to court filings and facts presented during court proceedings, as Soupman’s CFO, Bertrand had a corporate responsibility to collect, truthfully account for and pay Medicare, Social Security and federal income taxes for Soupman’s employees. Between 2010 and 2014, Bertrand made unreported payments to Soupman employees, and compensated certain employees in large unreported stock awards. Bertrand never reported this employee compensation to the IRS, and never paid Medicare, Social Security and federal income taxes on the side payments or the stock awards, despite a 2012 warning from an external auditor that these payments should be reported to the IRS. From 2010 through 2014, Soupman’s total approximate unreported cash and stock compensation was more than $2.85 million, and the total approximate tax loss to the United States was in excess of $593,000.
“Bertrand has been held to account for abusing his position as the CFO of a publicly traded company in a long-running scheme that cheated the nation’s treasury out of hundreds of thousands of dollars,” stated United States Attorney Donoghue. “Today’s sentencing makes clear that this Office, with our partners at the IRS, will pursue corporate gatekeepers like the defendant who fail to enforce their companies’ tax obligations.”
“Corporate executives such as Mr. Bertrand have a responsibility to collect and turn over all IRS withholding taxes,” stated IRS-CI Special Agent-in-Charge Robnett. “His failure to withhold and pay over is a clear violation that directly impacts those employees of Soupman Inc. and U.S. taxpayers now and in the future. Today justice is served, and Mr. Bertrand is being held accountable for his criminal actions.”
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Kaitlin T. Farrell is in charge of the prosecution.
The Defendant:
Robert N. Bertrand
Age: 63
Norwalk, ConnecticutE.D.N.Y. Docket No. 17-CR-186
Former Airline Employee Sentenced for Hacking PenAir’s Ticketing and Reservations SystemRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a former airline employee has been sentenced in federal court for hacking PenAir’s ticketing and reservation system between April and May 2017.
Suzette Kugler, 59, of Desert Hot Springs, California, was sentenced today by U.S. District Judge Sharon L. Gleason, to serve five years of probation, and 250 hours of community service. Kugler, who has no prior criminal history, previously pleaded guilty as charged to the felony offense on Jan. 26, 2018, to one count of fraud in connection with computers. As part of the plea agreement, Kugler agreed to pay $5,616 in restitution to PenAir, paid in full by the time of sentencing.
According to court documents, Kugler was a long-time employee of PenAir, who parted ways with the company in February 2017, dissatisfied with the circumstances surrounding her departure. During her employment, Kugler had administered PenAir’s Sabre database system, which the airline depended on for ticketing and reservations. The investigation revealed that, upon retirement, Kugler used her specialized knowledge regarding the Sabre database to create fake employee accounts with high-level privileges, without authorization, and then used those accounts to destroy critical information in a series of network intrusions. It was discovered that the primary fake employee account used in the intrusions was created by Kugler a week before she left the company.
Kugler’s unauthorized network intrusions were intended to prevent employees in any of the eight airports serviced by PenAir from being able to book, ticket, modify, or board any flight until the stations were again added in the system. PenAir personnel worked through the night to bring the stations back online.
The Court at sentencing commended PenAir for remediating the damage caused by Kugler before it resulted in significant disruption for air travelers in Alaska and other states.
Special Agents with the Cyber Unit of the Anchorage Division of the Federal Bureau of Investigation (“FBI”) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Adam Alexander.
Florida Escort Service Owner Pleads Guilty to Underreporting IncomeRead the Press Release
A Miami escort service owner pleaded guilty today to filing a false tax return, 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, Dennis Zarudny, 40, filed a false individual income tax return for 2011 that underreported his total income from his escort business, Denzar Inc., which did business as “Elite Escort Service” in the Miami area. Zarudny’s escort service was marketed on the internet as a “prestigious escort agency providing 24 hour outcall escort services & adult entertainment for upscale gentlemen and couples in South Florida.”
For tax years 2011 through 2014, Zarudny filed false corporate and personal income tax returns with the IRS, which substantially underreported his business’ income. Zarudny allowed his customers to pay for the escorts’ services by cash, check, and credit card. Zarudny reported income from credit card transactions, but did not fully report the income he received from customers who paid in cash and check.
U.S. District Judge Jose E. Martinez scheduled sentencing for June 11. Zarudny faces a statutory maximum sentence of three years in prison, as well as a period of supervised release, monetary penalties and restitution.
U.S. Attorney Greenberg and Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Joshua Rothstein and Tax Division Trial Attorney Grace Albinson, who are prosecuting this case.
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 http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Escort Service Owner Pleads Guilty to Underreporting IncomeRead the Press Release
A Miami escort service owner pleaded guilty today to filing a false tax return, 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, Dennis Zarudny, 40, filed a false individual income tax return for 2012 that underreported his total income from his escort business, Denzar Inc., which did business as “Elite Escort Service” in the Miami area. Zarudny’s escort service was marketed on the internet as a “prestigious escort agency providing 24 hour outcall escort services & adult entertainment for upscale gentlemen and couples in South Florida.”
For tax years 2011 through 2014, Zarudny filed false corporate and personal income tax returns with the IRS, which substantially underreported his business’ income. Zarudny allowed his customers to pay for the escorts’ services by cash, check, and credit card. Zarudny reported income from credit card transactions, but did not fully report the income he received from customers who paid in cash and check.
U.S. District Judge Jose E. Martinez scheduled sentencing for June 11. Zarudny faces a statutory maximum sentence of three years in prison, as well as a period of supervised release, monetary penalties, and restitution.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Greenberg commended special agents of IRS Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Joshua Rothstein and Tax Division Trial Attorney Grace Albinson, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Filipino Woman Pleads Guilty to Passport FraudRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Emelita Ignacio Arindela, a/k/a “Esperanza Ignacio Arindela,” “Esperanza Hooper,” Emily I. Arindela,” and “Emily Ingacio Arindela,” 43, of Mount Desert Island, Maine, and previously of the Philippines, pleaded guilty today in U.S. District Court to passport fraud.
According to court records, in 2000, the defendant assumed the name and date of birth of her older sister in order to marry a U.S. citizen in the City of Valenzuela, Philippines. In 2002, she entered the United States under her sister’s identity. In 2009, she became a naturalized U.S. citizen using her sister’s identity. Later that year, she legally changed her name to Emily I. Arindela. In 2010, she applied for a U.S. passport using her new name and her sister’s date of birth.
The defendant faces up to 10 years in prison and a $250,000 fine. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Diplomatic Security Service of the U.S. Department of State.
Federal Inmates at USP Canaan Charged with Assaulting Fellow InmateRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jesus Chavez, age 27 and Rudy Mendoza age 33, both federal inmates at the United States Penitentiary Canaan (“USP Canaan”), located in Waymart, Pennsylvania, were indicted on April 10, 2018, by a federal grand jury with assaulting another inmate with a dangerous weapon.
According to United States Attorney David J. Freed, the indictment alleges that Chavez and Mendoza assaulted a fellow inmate at USP Canaan on June 17, 2017. Both inmates were also charged with possessing a homemade weapon fashioned from a sharpened piece of metal, commonly known as a “shank.”
The investigation was conducted by the Federal Bureau of Investigation and officers from USP Canaan. The case is being prosecuted by Assistant United States Attorney Evan Gotlob.
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 is 15 years of imprisonment a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Federal Inmate Pleads Guilty to Possession of a WeaponRead the Press Release
BECKLEY, W.Va. – United States Attorney Mike Stuart announced today that an inmate at the Beckley Federal Correctional Institution (FCI) pled guilty to possession of a weapon. Coleman Ferrell, 31, an inmate at FCI Beckley, pled guilty to possession of a weapon by a federal inmate.
Stuart praised the work of the Bureau of Prisons (BOP).
“This was a very serious situation that could have led to tragedy for prison staff and other inmates,” said United States Mike Stuart. “My team is committed to working with the Bureau of Prisons to prosecute these cases.”
Ferrell admitted that on December 22, 2017, he possessed a handcrafted weapon known as a “shank” inside FCI Beckley. He faces up to five years in prison when he is sentenced on July 18, 2018.
United States District Court Judge Irene C. Berger presided over the plea hearing. Assistant United States Attorney John File is handling the prosecution.
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Federal Indictment Targets Multi-State Methamphetamine OperationRead the Press Release
United States Attorney Brandon Fremin announced today the unsealing of a federal grand jury indictment arising from an extensive federal, state, and local criminal investigation into a multi-state methamphetamine drug organization operating in Ascension Parish and elsewhere.
The indictment charges eight individuals with various federal narcotics and weapons charges spanning from September 2014 through December 2016, including a conspiracy to distribute methamphetamine throughout Ascension Parish. If convicted, each defendant faces significant incarceration, fines, restitution, forfeiture, and supervised release following incarceration.
The following individuals are charged in the indictment:
- EDWARD DANIEL BAROWSKY, a.k.a. “Ed,” age 49, of Glendale, Arizona, is charged with conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine, distribution of heroin, and three counts of distribution of 50 grams or more of methamphetamine.
- FRANK H. ASHFORD, III, age 48, of Prairieville, Louisiana, is charged with possession with intent to distribute 5 grams or more of methamphetamine and possession of firearms in furtherance of a drug trafficking crime.
- DWAYNE K. BRAUD, a.k.a. “Bandit,” age 40, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine, distribution of 5 grams or more of methamphetamine, possession with intent to distribute 50 grams or more of methamphetamine, and possession of firearms in furtherance of a drug trafficking crime.
- JACEY E. BRAUD, age 37, of Gonzales, Louisiana, is charged with conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine.
- RONALD COOPER, age 48, of St. Amant, Louisiana, is charged with conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine and possession with intent to distribute 50 grams or more of methamphetamine.
- CHELSEA M. SANFORD, age 26, of St. Amant, Louisiana, is charged with conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine, possession with intent to distribute 50 grams or more of methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime.
- DONALD RAY. SANFORD, age 40, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine, distribution of 50 grams or more of methamphetamine, possession of firearms in furtherance of a drug trafficking crime, and possession of firearms by a convicted felon.
- JIMMY WHITE, age 33, of Amite City, Louisiana, is charged with conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine and possession with intent to distribute 50 grams or more of methamphetamine.
United States Attorney Brandon Fremin stated, “Unfortunately the unprecedented number of drug overdoses in our country is not limited to opioids. Methamphetamine overdose deaths are occurring at historic rates, with increasingly organized and efficient domestic and international operations fueling the surge by providing higher purities at lower prices. We must and will aggressively pursue and meet the multi-pronged drug threats facing our communities. I commend the outstanding efforts of the DEA, IRS-CI, the Ascension and Livingston Parish Sheriffs’ Offices, and my staff on this important matter.”
Brad L. Byerley, the Assistant Special Agent-in-Charge of the U.S. Drug Enforcement Administration Baton Rouge District Office stated, “Through remarkable partnerships with federal, state and local law enforcement, we are making major progress in preventing methamphetamine trafficking from taking hold in our communities. This investigation and these indictments are a compelling example of that success.”
This operation was conducted as part of the Organized Crime Drug Enforcement Task Force (OCDETF) Program, which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
This matter is being handed by the U.S. Attorney’s Office for the Middle District of Louisiana in conjunction with Drug Enforcement Administration, Ascension Parish Sheriff’s Office, Livingston Parish Sheriff’s Office, and the Internal Revenue Service—Criminal Investigation Division. Assistant U.S. Attorney Jamie A. Flowers, Jr. is prosecuting the case.
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Federal Authorities Move Against Fraudulent Tax Return Preparers and Remind All Taxpayers of their Tax Season ResponsibilitiesRead the Press Release
LOS ANGELES – As the tax filing season comes to an end, federal authorities are reminding members of the public of their obligation to timely file accurate tax documents – and that evading taxes or defrauding the Internal Revenue Service can led to substantial fines, penalties and prison sentences.
Taxpayers are also reminded to be on the lookout for unscrupulous tax return preparers who may seek to inflate refunds by falsifying deductions and other fraudulent means. Even if a tax return preparer makes an error on an individual’s tax return, it is still the taxpayer’s responsibility to pay the correct taxes.
As part of their year-round efforts to combat tax fraud, federal prosecutors with the United States Attorney’s Office have worked tirelessly with special agents at the Los Angeles Field Office of IRS Criminal Investigation to investigate and prosecute those who illegally evade their taxes. Today, they are announcing a series of cases targeting tax return preparers who allegedly defrauded the IRS by filing fraudulent returns.
“Corrupt tax return preparers compromise the tax system, harming their clients, other taxpayers and the United States government,” said United States Attorney Nicola T. Hanna. “The defendants recently charged by my office are accused of breaking a fundamental trust with their clients, and their actions place themselves and their clients into legal jeopardy.”
“Income tax return preparers are a vital part of the U.S. tax system. About 56 percent of taxpayers use tax professionals to prepare their returns,” stated IRS Criminal Investigation Special Agent in Charge R. Damon Rowe. “Selecting the right tax professional is critically important because taxpayers are ultimately responsible for what they submit on their tax return.”
Today, the United States Attorney’s Office and IRS Criminal Investigation announced three criminal cases targeting income tax return preparers.
L.A. County Social Services Employee Pleads Guilty to Tax Refund Fraud Scheme
A Los Angeles County employee pleaded guilty on Wednesday to engaging in a scheme to defraud the Internal Revenue Service through the submission of fraudulent federal income tax returns.
Roberta Josephine Yashu, who also goes by Roberta Josephine Beltran, 36, who was an employee of the Los Angeles County Department of Public Social Services (DPSS), pleaded guilty before United States District Judge Dolly M. Gee to one count of conspiracy to commit wire fraud through the preparation and filing of false income tax returns.
According to a plea agreement filed in this case, Yashu filed income tax returns on behalf of family members and friends that contained false information on dependent children, as well as altered or fictitious earned income. The fraudulent tax returns, filed for a number of years through the beginning of 2016, sought inflated tax refunds.
Yashu obtained the names and Social Security numbers of the children she falsely listed as dependents on the tax returns she prepared through a database she had access to during her employment at DPSS.
Yashu often kept the fraudulent refunds for herself. As a result of the fraudulent tax returns she filed, Yashu defrauded IRS out of at least $175,305.
Yashu faces a statutory maximum sentence of 20 years in federal prison and a $1 million fine when she sentenced by Judge Gee on August 15.
This case is the product of an investigation by IRS Criminal Investigation, which received assistance from the Los Angeles County Office of County Investigations.
The case is being prosecuted by Assistant United States Attorney Andrew Brown of the Major Frauds Section.
Inglewood Return Preparer Arrested on Tax Fraud Charges
The operator of a tax preparation business, the Inglewood-based Ultimate Professional Services, was arrested Wednesday morning on charges that she prepared and filed fraudulent income tax returns for her clients.
Karen McCoy, 69, of Compton, was charged in an indictment returned Tuesday by a federal grand jury. The indictment charges McCoy with 31 counts of aiding and assisting in the preparation of false tax returns.
The indictment alleges that McCoy prepared and filed 31 tax returns on behalf of 18 different clients which claimed false deductions. McCoy allegedly prepared tax returns containing inflated deductions that the taxpayers were not entitled to take.
For the 31 tax returns in question, which were filed for the 2011 through 2015 tax years, the fraudulently claimed deductions totaled $352,931, according to the indictment.
At her arraignment Wednesday afternoon, McCoy entered a not guilty plea and was ordered to stand trial before United States District Judge Christina A. Snyder on June 5.
If convicted of the charges contained in the indictment, McCoy would face a statutory maximum sentence of three years in federal prison and a fine of $100,000 for each of the 31 counts in the indictment.
This case is the product of an investigation by IRS Criminal Investigation and is being prosecuted by Assistant United States Attorney Valerie Makarewicz of the Tax Division.
Previously Convicted Return Preparer Arrested on Theft and Identity Theft Charges
A former income tax return preparer who was convicted in 2002 of preparing false tax returns was arrested this morning on new charges of fraudulently using the identities and Social Security numbers of two individuals to steal federal income tax refund checks.
Elton Leander Barnes, Jr., 55, previously of Irvine and now of South Los Angeles, allegedly negotiated federal income tax refund checks issued in the names of the identity theft victims.
Barnes was named in a four-count indictment returned last month by a federal grand jury. The indictment specifically charges Barnes with two counts of theft of government property and two counts of aggravated identity theft.
The indictment alleges that Barnes fraudulent converted to his own use two income tax refund checks in the amounts of $3,028 and $7,189.
If convicted of theft of government property, Barnes will face a statutory maximum sentence of 10 years in federal prison for each of the two counts. In addition, each count of aggravated identity theft carries a mandatory, consecutive sentence of two years in federal prison.
Barnes is expected to be arraigned on the indictment this afternoon in United States District Court in Los Angeles.
This case is the product of an investigation by IRS Criminal Investigation. The case is being prosecuted by Assistant United States Attorneys James Hughes and Valerie Makarewicz of the Tax Division.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
Return preparer fraud, identity theft, and inflated refund schemes are three of the Internal Revenue Service’s Dirty Dozen List of Tax Scams for 2018. The IRS has some information on its website about selecting a return preparer and has launched a free directory of federal tax preparers. Also, the IRS has a list of steps on its website that you can take now in anticipation of filing your 2017 federal income tax return and ten tips for choosing a tax preparer.
Father and Son Indicted in Large Scale Vehicle Odometer Roll Back SchemeRead the Press Release
Jackson, Miss. – Mark Longgrear, 53, of Jackson, and son, Zachary Longgrear, 29, of Madison, both waived appearance for their arraignments before U.S. Magistrate Judge F. Keith Ball after having been recently indicted and charged with rolling back the odometers of multiple high mileage vehicles and selling such fraudulently altered vehicles with doctored titles, announced U.S. Attorney Mike Hurst and Deputy Administrator Heidi King with the U.S. Department of Transportation, National Highway Traffic Safety Administration.
The Indictment alleges that, from 2014 through at least February 2018, Mark Longgrear, along with his son, Zachary Longgrear, both individually and under their company Southern Auto Buyers LLC, bought a large number of late model, high mileage vehicles from numerous sources, thereafter illegally altered the odometers of these vehicles to show lower mileage, forged and fraudulently created paperwork to secure new titles showing false lower mileage on these vehicles, and then sold the vehicles directly to individuals and automobile dealerships at much higher prices. Thereafter, some of these rolled-back vehicles were subsequently sold by dealerships to consumers in the Mississippi area and elsewhere.
The Longgrears were charged with one count of conspiracy, which carries a maximum penalty of 5 years in prison and a $250,000.00 fine. In Counts 2-8, the Longgrears were charged with altering odometers of motor vehicles, and in Counts 9-14, the Longgrears were charged with giving or causing to be given false statements relating to odometers, all of which carry maximum penalties of three years per count and a $250,000.00 fine, or twice the gross gain or loss, whichever is greater. Finally, in Counts 15-20, the Longgrears were charged with making, uttering or possessing forged or counterfeit certificates of title for motor vehicles, which carry maximum penalties of 10 years in prison and $250,000.00 fine.
This case is set for trial on May 14, 2018 before the Honorable Carlton W. Reeves. The public is reminded that the indictment is merely an accusation and that the defendants are each presumed innocent unless and until proven guilty.
The case is the result of an investigation by the United States Department of Transportation, National Highway Traffic Safety Administration, Office of Odometer Fraud
Investigation, with assistance from the United States Postal Inspection Service, and the U.S. Marshals Service. It is being prosecuted by Assistant U.S. Attorney Keesha Middleton.
Odometer fraud is the disconnection, resetting, or alteration of a vehicle’s odometer with the intent to change the number of miles indicated. NHTSA estimates that more than 450,000 vehicles are sold each year with false odometer readings.
"Odometer fraud costs American consumers more than $1 billion annually, said NHTSA Deputy Administrator King. "We will continue to work with Department of Justice and state DOT partners to investigate odometer fraud, deter tampering, and inform consumers of the potential signs and dangers associated with this crime."
NHTSA has established a special hotline to handle odometer fraud complaints. Individuals who have information relating to odometer tampering should call (800) 424-9393 or (202) 366-4761. Individuals can also file a complaint online at www.NHTSA.gov/Equpment/Odometer-Fraud.
Erie Woman Charged with Preparing False Tax Returns for Herself and OthersRead the Press Release
ERIE, Pa. – A resident of Erie, Pennsylvania has been indicted by a federal grand jury in Erie on charges of false income tax return and aid or assist false or fraudulent document, United States Attorney Scott W. Brady announced today.
The fourteen-count indictment named Andrea Jones as the sole defendant.
According to the indictment presented to the court, Jones prepared false federal income tax returns for herself and others who used her as their return preparer for calendar years 2011, 2012, 2013, 2014 and 2015.
The law provides for a maximum total sentence of 42 years in prison, a fine of $3,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The 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.
Erie City Council President Indicted on Fraud and Theft Charges Relating to her Non-Profit OrganizationRead the Press Release
ERIE, Pa. – The founder of an Erie non-profit organization and current Erie City Council President has been indicted by a federal grand jury in Erie on charges of wire fraud, theft of government property and false writing or document to the government, United States Attorney Scott W. Brady announced today.
The 33-count indictment, returned yesterday, named Sonya Arrington, 51, of Erie, Pennsylvania, as the sole defendant.
"When public officials and those who seek donations for charitable purposes commit dishonest acts, public confidence suffers," stated U.S. Attorney Brady. "We will root out and prosecute corrupt individuals whenever we find them engaging in fraudulent acts while serving in a public position or using charitable contributions to their nonprofit organizations for private gain."
According to the indictment presented to the court, Arrington diverted funds donated to Mothers Against Teen Violence, a non-profit organization she created to help prevent violence among teenagers, to pay for her gambling and personal expenses. Specifically, the indictment alleges that from December 2011 to March 2018, Arrington engaged in a scheme to defraud MATV of at least $70,000. She allegedly solicited donations from individuals and entities in person and by email; received donations to MATV in cash and checks payable to MATV and deposited a portion of the donations into MATV bank accounts and kept a portion in cash for herself; and did not deposit cash but kept donations for herself. She also allegedly used the debit card for the MATV bank accounts to make purchases unrelated to the organization’s purposes, for things like personal items of clothing, groceries, car washes and food at restaurants; used the debit card for MATV to pay personal bills for T-Mobile, State Farm, First Energy and others; and deposited checks to MATV into personal bank accounts and kept a portion for personal use. The indictment alleges that on 113 occasions from April 2012 to January 2018, Arrington used the MATV debit card to withdraw MATV funds at Presque Isle Downs & Casino. The indictment also alleges that Arrington fraudulently received approximately $29,558 in Social Security disability benefits and submitted a document to the Social Security Administration that contained a false statement.
The law provides for a maximum total sentence of 635 years in prison, a fine of $7,750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Social Security Administration, Office of Inspector General, 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.
El Departamento de Justicia Anuncia Una Iniciativa Nacional Para Combatir El Acoso Sexual En La ViviendaRead the Press Release
WASHINGTON, D.C. — Ayer, el día en que el Departamento de Justicia reconoce el 50º aniversario de la ley de Vivienda Justa, el Fiscal General Jeff Sessions anunció el lanzamiento nacional de una iniciativa cuyo objetivo es aumentar el nivel de concientización y denuncia de acoso sexual en la vivienda. Este anuncio incluye un grupo de trabajo interinstitucional entre el Departamento de la Vivienda y Desarrollo Urbano (HUD, por sus siglas en inglés) y el Departamento de Justicia para combatir el acoso sexual en la vivienda, herramientas de promoción comunitaria y una campaña de concientización pública. Este enfoque triple apoyará los esfuerzos del Departamento por combatir el acoso sexual en la vivienda.
«El acoso sexual en la vivienda es ilegal, inmoral e inaceptable», afirmó el Fiscal General Sessions. «Hoy día, estamos viendo con demasiada frecuencia cómo los arrendatarios y administradores de propiedades, así como sus empleados, intentan aprovecharse de mujeres vulnerables. No dudaremos en perseguir a esos depredadores y hacer cumplir la ley. En octubre, mandé formarse una nueva iniciativa para identificar más casos de este estilo y ya hemos conseguido remedios para 15 víctimas. Hoy anunciamos tres pasos nuevos para dar más efectividad a la iniciativa y ganar más casos. Quisiera agradecer a los profesionales dedicados y comprometidos de nuestra División de Derechos Civiles, así como nuestros socios en el Departamento de la Vivienda y Desarrollo Urbano por su excelente trabajo en este empeño. Continuaremos a perseguir de modo agresivo a los acosadores porque todos tienen derecho a sentirse seguros en sus casas».
«Todo tipo de discriminación representa un estigma en el tejido de nuestra nación, pero el HUD está especialmente enfocado en la protección del derecho de todos a sentirse seguros en sus casas y libres de acoso sexual indeseado», declaró el Secretario Ben Carson. «Nadie debe verse obligado a tolerar avances sexuales indeseados para mantener un techo. Como parte de nuestra misión en el HUD, proporcionamos viviendas seguras, y seguiremos adelante con esta misión, siempre diligentes, para proteger a quienes servimos. Anticipo con ganas nuestra colaboración con el Fiscal General Sessions y el Departamento de Justicia como parte de este grupo de trabajo para acabar con este tipo de discriminación».
En octubre del 2017, el Departamento de Justicia anunció una iniciativa para combatir el acoso sexual en la vivienda y lanzó programas piloto en Washington, D.C. y el Distrito Occidental de Virginia. Esta iniciativa buscó fortalecer los esfuerzos del Departamento por proteger a mujeres del acoso a manos de arrendatarios, gestores de propiedad, trabajadores de mantenimiento, guardias de seguridad y otros empleados y representantes de dueños de propiedades de alquiler. Durante los programas piloto, el Departamento desarrolló y probó formas de conectarse mejor tanto con víctimas del acoso sexual en la vivienda como con aquellas organizaciones a las que víctimas suelen dirigirse primero para pedir ayuda, entre ellas la policía, proveedores de servicio legales, autoridades de la vivienda pública, proveedores de servicios para víctimas del asalto sexual y refugios. Asimismo, el Departamento probó ciertos aspectos de la iniciativa en otras jurisdicciones, incluyendo Nueva Jersey, el Distrito Central de California, Massachusetts, Vermont y Michigan.
Los dos programas pilotos llevaron a un incremento en la denuncia ante el Departamento del acoso, tanto de Washington, D.C. como del Distrito Occidental de Virginia. En Washington, el Departamento ha generado seis pistas desde el lanzamiento en octubre del 2017, mientras que en Virginia el Departamento ha generado tres. El Departamento de Justicia reconoce que las pistas e investigaciones no siempre conducen a medidas de aplicación de la ley; no obstante, los resultados del programa piloto, al extrapolarse por todas las oficinas de fiscales federales por todo el país, pueden traducirse en cientos de nuevas denuncias de acoso sexual en la vivienda por todo Estados Unidos.
Debido a estos resultados prometedores, el Departamento está implementando tres componentes fundamentales de la Iniciativa.
En primer lugar, el nuevo Grupo de Trabajo Conjunto del HUD y DOJ para Combatir el Acoso Sexual en la Vivienda implementará una estrategia conjunta entre el Departamento y el HUD para combatir el acoso sexual en la vivienda por todo el país. Se enfocará en cinco áreas clave: el intercambio y análisis de datos continuo; el desarrollo conjunto de mecanismos de capacitación, evaluación de denuncias relacionadas con la vivienda pública; la coordinación de promoción pública y estrategia de prensa; y una revisión de las políticas federales.
En segundo lugar, las herramientas de promoción comunitaria están diseñadas para apalancar la red nacional de Oficinas de Fiscales Federales del Departamento de Justicia. Las herramientas incluyen plantillas, orientación y listas de control basadas en los comentarios recibidos acerca del programa piloto. Al final, multiplicará los recursos de aplicación de la ley disponibles y ayudará a las víctimas del acoso sexual a ponerse en contacto con el Departamento.
Por último, la campaña de concientización pública tiene tres componentes fundamentales: un paquete de colaboración con las partes relevantes, el lanzamiento de una campaña en los medios sociales y anuncios de servicio público (PSA, por sus siglas en inglés), todo dirigido por las Oficinas de los Fiscales Federales. La campaña está específicamente diseñada para concientizar el público y simplificar el proceso para víctimas por todo el país para buscar recursos y denunciar el acoso.
Para más información sobre la División de Derechos Civiles y las leyes de derechos civiles que hace cumplir, vaya a www.usdoj.gov/crt o a www.justice.gov/crt-espanol. Aquellas personas que creen haber sido víctimas del acoso sexual en la vivienda deben llamar al Departamento al 1-844-380-6178, mandar un correo electrónico a [email protected] o comunicarse con el HUD al 1-800-669-9777. Si tiene información o preguntas acerca de cualquier otro tipo de discriminación en la vivienda, puede comunicarse con el Departamento al 1-800-896-7743.
Eight Charged with Conspiring to Traffic Minors for Commercial Sex in New Mexico and ArizonaRead the Press Release
ALBUQUERQUE – U.S. Attorney John C. Anderson, New Mexico Attorney General Hector H. Balderas, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, Acting Special Agent in Charge Jack P. Staton of Homeland Security Investigations (HSI) in El Paso, and Bernalillo County Sheriff Manuel Gonzales, III, announced today that eight defendants have been indicted on federal child sex trafficking charges. The defendants are charged with conspiring to sex traffic minors in New Mexico and Arizona, to transport minors to engage in criminal sexual activity, and sex trafficking of minors.
The eight defendants, Chante Bickham, 24, Camara Cherry-Amos, 23, Breeauna Langton, 19, Keron Eugene Lucious, 20, Jason L. Jackson, 23, Devin Perkins, 21, and Andrew Wyatt, 29, all of Albuquerque, and John Dompierre, 54, of Phoenix, Ariz., are charged in an 11-count superseding indictment that was filed on April 10, 2018. The superseding indictment charges the eight defendants with conspiring to recruit and force minors to engage in commercial sex acts, and five of the defendants with transporting a minor in interstate commerce for the purpose of engaging in prostitution. It also charges each defendant with sex trafficking of minors. The superseding indictment alleges that the defendants committed the crimes in Bernalillo County, N.M., and elsewhere between Feb. 2017 and Jan. 2018.
Cherry-Amos, Langton, Lucious and Wyatt, who were arrested yesterday, made their initial appearances in federal court in Albuquerque this morning. They remain in custody pending detention hearings, which are scheduled for tomorrow morning, at which time they also will be arraigned on the superseding indictment.
Bickham is in state custody on related state charges and will be transferred into federal custody to answer to the charges in the superseding indictment. Jackson, who was arrested on a related charge in Nov. 2017, is detained on that related charge; his arraignment hearing is currently scheduled for April 16, 2018. Perkins was arrested in Dec. 2017 on a related charge and is detained; his arraignment hearing has yet to be scheduled.
Dompierre has yet to be arrested and is considered a fugitive.
Superseding Indictment 17-CR-03246-MV
Charges and Statutory Penalties
Count 1 charges the eight defendants with conspiracy to commit sex trafficking of minors from Feb. 2017 through Jan. 2018, in violation of 18 U.S.C. §§ 1594 (a) and (c), and carries a mandatory minimum penalty of 15 years and a maximum penalty of life in prison, and a fine of not more than $250,000.
Count 2 charges Bickham, Cherry-Amos, Dompierre, Jackson and Wyatt with conspiracy to transport minors to engage in criminal sexual activity from Nov. 2017 through Jan. 2018, in violation of 18 U.S.C. §§ 2423 (a) and (c), and carries a mandatory minimum penalty of ten years and a maximum of life in prison, and a fine of not more than $250,000.
Counts 3 through 11 charge each of the defendants with sex trafficking of one of two minors on various dates from Feb. 2017 through Jan. 2018, in violation of 18 U.S.C. §§ 1591 (a) and (b)(2), and carries a mandatory minimum penalty of 15 years and a maximum of life in prison, and a fine of not more than $250,000.
Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The investigation of this case was initiated and led by the Bernalillo County Sheriff’s Office and the New Mexico Office of the Attorney General, and thereafter was joined by the Albuquerque offices of the FBI and Homeland Security Investigations. Assistant U.S. Attorney George C. Kraehe is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, 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 http://www.justice.gov/psc/.
Bickham Superseding IndictmentEast Cleveland man indicted for a carjacking in Cleveland Heights and an armed bank robbery in Richmond HeightsRead the Press Release
An East Cleveland man was indicted in federal court for a carjacking in Cleveland Heights and an armed bank robbery in Richmond Heights.
Lashawn Davis, 18, was indicted on two counts of brandishing a firearm during a crime of violence, one count of carjacking and one count of armed bank robbery.
Davis brandished a firearm on Feb. 4 when he took a 2016 Hyundai Elantra from someone on Coventry Road in Cleveland Heights.
He also brandished a firearm on Feb. 17 when he robbed the Dollar Bank on Wilson Mills Road in Richmond Heights, according to the indictment.
Davis posted a photo of himself to Instagram that was taken on Jan. 3 showing himself holding two new Glock pistol boxes. A victim of the bank robbery described the weapon used as having two circles in the area of the muzzle. An employee of the bank heard a robber yell: “you got five seconds or I’m going to (expletive) kill you,” according to court documents.
A bank employee captured the license plate of the getaway vehicle. It was the same license plate as the vehicle that was carjacked in Cleveland Heights 13 days earlier, according to court documents.
Agents searching Davis’ residence at 1835 Penrose Ave. found a revolver and a Glock 27 pistol with an attached red laser sight. Together, the muzzle and the laser sight appeared as circles. A fresh stack of $2 bills were also found in his bedroom. A new stack of $2 bills were taken during the bank robbery, according to court documents.
“If you point a firearm at someone while robbing them, we will work to send you to prison for as long as the law allows,” said U.S. Attorney Justin E. Herdman. “This case is a great example of law enforcement working together to get a dangerous criminal off the streets.”
FBI Special Agent in Charge Stephen D. Anthony said: “The FBI Violent Crime Task Force will continue working with our law enforcement partners to rid our streets of violent criminals like this one. This individual terrorized the driver of the car he carjacked and the folks present in the bank that he robbed. Davis is being held accountable for the illegal actions he chose to engage in.”
“This was good work done by law enforcement – we got a dangerous person off our streets,” said Cuyahoga County Prosecutor Michael C. O’Malley. “This collaboration between CPD, ATF, FBI and my office’s Crime Strategies Unit means the U.S. Attorney’s Office is getting a stronger case for prosecution, sending a loud signal that if you break the law you will be caught and harshly prosecuted.”
The case remains under investigation.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Federal Bureau of Investigation, the Cleveland Division of Police, the Cleveland Heights Police Department and the Richmond Heights Police Department, with assistance from the Cuyahoga County Prosecutor’s Crime Strategies Unit. It is being prosecuted by Assistant U.S. Attorneys Scott Zarzycki and Robert J. Patton.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Dubuque Woman Sentenced to over 2 Years in Federal Prison for Possessing Ice Methamphetamine for SaleRead the Press Release
A Dubuque woman who possessed approximately 30 grams of ice methamphetamine and intended to distribute it to others was sentenced April 11, 2018, to 31 months in federal prison.
Ashley Ann Laufenberg, age 28, from Dubuque, Iowa, received the prison term after a November 6, 2017, guilty plea to possession with intent to distribute methamphetamine. In a plea agreement, Laufenberg admitted she possessed about 2 grams of ice methamphetamine with the intent to distribute it while driving a car in Dubuque. At the time, Laufenberg had a warrant for her arrest and law enforcement officers initiated a traffic stop on her car. She unsuccessfully attempted to flee from officers by driving away during the traffic stop. After she was caught, officers found more than $400, a bullet, and a cell phone on her person. Officers at the jail also found 2 grams of methamphetamine on her person. Laufenberg admitted to possessing and selling about 30 grams of ice methamphetamine.
Information at the sentencing hearing showed that Laufenberg’s criminal conduct escalated over time. She was previously convicted of theft and possession of marijuana at ages 17 and 20 and assault while displaying a dangerous weapon at age 27. Laufenberg was selling methamphetamine while on probation for possession of methamphetamine as a third offender, as well as while on probation for assault while displaying a dangerous weapon. Laufenberg previously had a deferred judgment in state court revoked after she tried to stab a man with a knife.
Laufenberg was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Laufenberg was sentenced to 31 months’ imprisonment. She must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Laufenberg is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. 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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-1046-LTS.
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Dominican National Pleads Guilty to Drug ConspiracyRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to his role in a drug trafficking organization that operated in Taunton and Boston.
Yeurys Tejeda, 29, a Dominican national formerly residing in Boston, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl. In February 2017, Tejeda was arrested and charged along with 22 co-defendants. U.S. District Court Judge Indira Talwani scheduled sentencing for July 10, 2018.
From mid-2016 through February 2017, federal law enforcement investigated two drug trafficking organizations operating in Taunton and Boston, one led by Jose Antonio Lugo-Guerrero, and the other led by Fernando Hernandez. Hernandez’s organization was based in Taunton and sold heroin and fentanyl to customers who re-distributed a portion of the drugs they obtained. It is alleged that Hernandez obtained drugs from a network of suppliers that included Lugo-Guerrero.
According to court documents, Lugo-Guerrero operated a drug trafficking organization in Fall River and Boston that allegedly obtained a significant quantity of illegal drugs by robbing other drug traffickers. Lugo-Guerrero was assisted by co-defendants Wilmi Hernandez-Diaz, Jancer Soto, Juan Morales-Ortiz, Isis Y. Lugo-Guerrero, Jose Negron, Glendalee Rodriguez, Jose Camacho, and Tejeda. Tejeda helped Lugo-Guerrero plan and attempt to rob another drug dealer, and Lugo-Guerrero offered to supply Tejeda with drugs, including cocaine.
Hernandez pleaded guilty and was sentenced in February 2018 to 188 months in prison. Hernandez-Diaz and Morales-Ortiz pleaded guilty and were each sentenced in January 2018 to 30 months in prison. Soto also pleaded guilty and was sentenced in March to five years of probation. Camacho and Rodriguez pleaded guilty in March 2018 and are scheduled to be sentenced, respectively, on June 15 and June 12, 2018. Jose Antonio Lugo-Guerrero, Isis Y Lugo-Guerrero, and Negron have pleaded not guilty.
The conspiracy charge provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Fall River Police Chief Daniel S. Racine; New Bedford Police Chief Joseph C. Cordeiro; Taunton Police Chief Edward James Walsh; Boston Police Commissioner William B. Evans; and Bristol Country District Attorney Thomas M. Quinn made the announcement today. Assistant U.S. Attorney Ted Heinrich of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dominican National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national was charged today in federal court in Boston with illegally reentering the United States after being deported.
Yerinaldo Arias Guzman, 31, was indicted on one count of illegal reentry of a deported alien.
According to court documents, Guzman was previously deported on June 20, 2017. Law enforcement officers discovered Guzman on March 16, 2018, and determined him to be illegally present in the United States.
Guzman faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon 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 and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dominican National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national was charged today in federal court in Boston with illegally reentering the United States after being deported.
Maximo Diaz-Tejada, 44, was indicted on one count of illegal reentry of a deported alien.
According to court documents, Diaz-Tejada was previously deported on Oct.1, 2013. Law enforcement officers discovered Diaz-Tejada on Dec. 14, 2017, and determined him to be illegally present in the United States.
Diaz-Tejada faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon 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 and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dominican National Arrested for Aggravated Identity TheftRead the Press Release
BOSTON – A Dominican national was arrested today in Miami Beach, Fla., for misusing a Social Security number and aggravated identity theft.
Adys Sanchez, 46, was charged in federal court in Boston on April 5, 2018, with one count of misuse of a Social Security number and one count of aggravated identity theft. Sanchez appeared in federal court in Miami today at 2pm.
According to the indictment unsealed today, in April 2014, Sanchez represented that a Social Security number belonging to another person was her own in an application for a driver’s license renewal at the Massachusetts Registry of Motor Vehicles. The indictment further alleges that Sanchez committed aggravated identity theft by using the Social Security number of another person.
False representation of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence, one year of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; Scott Antolik, Special Agent in Charge of the Social Security Administration Office of Inspector General; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Doctor Del Área De El Paso Denunciado De Cargos Federales De DrogasRead the Press Release
El Abogado de los Estados Unidos John F. Bash junto con Steve A. Borak, Interino Agente Especial en Cargo de la Administración para el Control de Drogas (DEA por sus siglas en inglés) de la División de El Paso anunciaron un doctor loacalizado en El Paso fue denunciado de cargos federales de traficante de drogas.
La semana pasada, el gran jurado de acusación regresó con la denuncia de 12 cargos contra el Dr. Thomas Glenn Easter, II y su codemandada Elizabeth Lightfoot, también de El Paso, con dos cargos de conspiración de distribución de Xanax y otras substancias controladas fuera de la capacidad de la práctica profesional. El Dr. Easter fue denunciado con 10 cargos adicionales de distribución de Xanax y otras substancias controladas fuera de la capacidad de la práctica profesional. Autoridades alegan que el Dr. Easter, con asistencia de la Sra. Lightfoot, fue responsable de dispensar prescripciones numerosas de varias medicamentos en cambio de favores.
“El abuso de prescripciones se ha aumentado agresivamente en la comunidad,” dijo el Abogado de los Estados Unidos John F. Bash. “Vamos a tomar medias enérgicas sobre los médicos licenciados que violan la ley – y sus obligaciones profesionales – en dispensar substancias controladas ilegalmente.”
Si se condenan, cada demandado/a puede recibir a lo máximo cinco años en la prisión federal. Los dos demandados están libre bajo una fianza.
“Dr. Thomas Glenn Easter, II, y su codemandada Elizabeth Lightfoot contribuyeron al epidémico de la distribución de substancias controladas que plaga nuestra sociedad,” dijo el Interino Agente Especial en Cargo Steve Borak. “Su comportamiento puso vidas al riesgo y no será tolerada. La DEA, junto con nuestros socios, continuaremos de seguir los que buscan perpetuar y lucrarse de la diversión de las drogas recetadas.”
La División de Diversión Táctico de la Administración para el Control de Drogas en El Paso, junto con el Departamento de Seguridad Pública de Tejas, conducieron ésta investigación. Michael Rose Whyte es el abogado fiscal de parte del gobierno.
Una denuncia simplemente es un cargo y no debería ser considerada como evidencia de culpabilidad. Los demandados son inocentes hasta comprobados culpables antes un tribunal.
Diagnostic Company Owner Sentenced for Kickbacks, Health Care Fraud and Money LaunderingRead the Press Release
HOUSTON – The owner of multiple diagnostic businesses and a durable medical equipment company has been ordered to federal prison in relation to the Team Work Ready (TMR) health care fraud conspiracy, announced U.S. Attorney Ryan K. Patrick. Mark Edward Farias, 48, of Houston pleaded guilty April 17, 2017, admitting to a conspiracy to pay kickbacks, health care fraud as well as money laundering.
Today, U.S. District Judge Gray Miller handed Farias a 68-month sentence to be immediately followed by three years of supervised release. At the hearing, Judge Miller denied Farias’ request for probation and considered the duration of his criminal activity, the repetitive nature of the crime and the $4,122,980 his companies billed. The court also ordered Farias to pay $2,790,704 in restitution to the Department of Labor Office of Worker’s Compensation who administers the Federal Employees Compensation Act (FECA) health insurance program.
Farias was the owner of a durable medical equipment business known as AMR Medical Supply as well as three medical diagnostic businesses - Winlock Medical Surgical LLC, ARC Diagnostics LLC and Tessla Diagnostics LLC - located in Texas and Louisiana. As part of his guilty plea, Farias admitted he paid the owner and CEO of TWR – Jeffrey Eugene Rose, 55, of Houston - at least $436,213.54 in kickbacks for access to at least 419 patients from TWR clinics in Texas and Louisiana. Farias admitted he attempted to hide and conceal the kickback payments by indicating on the payments that they were for marketing. Farias did not receive any marketing services from TWR, just patients covered by the FECA program. In addition to engaging in kickbacks, Farias admitted he also committed health care fraud by submitting up-coded claims for the kickback patients, including claims for diagnostic testing that were not medically necessary, and for diagnostic reports that were not produced. Farias also admitted to engaging in money laundering with the criminal proceeds he received from FECA.
Rose was convicted of conspiracy, health care fraud, wire fraud and money laundering in October 2016 following a three-week trial. Also convicted were chief financial officer Pamela Annette Rose, 55, of Houston, along with the clinic’s vice president of operations Frankie Lee Sanders, 55, also of Houston. Team Work Ready defendants Pamela Rose and Sanders were sentenced in July of last year to 120 and 300 months, respectively. Jeffrey Rose is scheduled for sentencing on June 1, 2018, before U.S. District Judge Ewing Werlein Jr.
Farias was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
U.S. Postal Service - Office of Inspector General (OIG), Department of Labor – OIG, IRS - Criminal Investigation, Department of Veterans Affairs - OIG and Department of Homeland Security – OIG conducted the joint investigation. Assistant U.S. Attorney Julie Redlinger is prosecuting the case.
Detroit Man Pleads Guilty to Drug ChargeRead the Press Release
BECKLEY, W.Va. – United States Attorney Mike Stuart announced today that a Detroit man pled guilty to a federal drug charge. William James Springer, 31, of the Detroit area, pled guilty to distribution of a quantity of oxymorphone. Springer admitted that on October 5, 2016, he distributed three oxymorphone pills to a confidential informant. He further admitted that between September 2016 and December 2016 he was involved in distributing about 300 40 mg oxymorphone pills in Greenbrier County, including pills which he distributed as charged in the other counts of the indictment. Springer faces up to 20 years in prison when he is sentenced on July 18, 2018. Stuart praised the work of the Greenbrier Valley Drug and Violent Crime Task Force.
“We should send Detroit a bill. They send us their drug dealers and we lock them up,” said United States Attorney Mike Stuart. “They have wreaked havoc in West Virginia for far too long. Detroit drug dealers are not welcome here.”
United States District Court Judge Irene C. Berger presided over the plea hearing. Assistant United States Attorney John File is handling the prosecution.
The case was investigated as part of the Greenbrier Valley Heroin and Pill Initiative, an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the sale of heroin and the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
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