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11 April 2018
California Man Apprehended at Cyril E. King Airport Pleads Guilty to Possession of Marijuana with the intent to DistributeRead the Press Release
St. Thomas, USVI – Kelley Hansen, 28, of California, pleaded guilty today in District Court before District Court Judge Curtis V. Gomez, to possession of marijuana with the intent to distribute, United States Attorney Gretchen C.F. Shappert announced.
According to court documents, after communicating with an individual about the sale of marijuana, Hansen agreed to travel to St. Thomas from California to complete the sale. Hansen arrived on St. Thomas onboard a commercial airline and was found in possession of approximately two kilograms of marijuana.
Hansen faces a sentence of not more than five years in prison and a fine of $250,000.00. His sentencing is scheduled for June 21, 2018.
The case was investigated by the Drug Enforcement Administration (DEA) and the Department of Homeland Security U.S. Customs and Border Protection. The case was prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte.
Burnsville Coin Dealer Indicted for Fraud SchemeRead the Press Release
United States Attorney Gregory G. Brooker today announced an indictment charging BARRY RON SKOG, 67, with five counts of sale of counterfeit coins and one count of mail fraud. The defendant made his initial appearance earlier today before Magistrate Judge Franklin L. Noel in U.S. District Court in Minneapolis, Minnesota.
According to the indictment, from June 2012 through October 2016, SKOG devised a scheme to advertise and sell counterfeit coins by fraudulently representing that the coins were legitimate U.S. coins worth hundreds of dollars.
According to the indictment, SKOG owned and operated a business called Burnsville Coin Company and through his business, he posted advertisements for coins in a publication called Numismatic News. When victims responded to the ads, SKOG would mail them lists of available coins for purchase, many of which were counterfeit. In his communications with the victims, SKOG would often represent himself as an employee of the Burnsville Coin Company named “Ron Peterson,” when, in fact, there are no other owners or employees of the company other than SKOG. In total, SKOG fraudulently obtained more than $80,000 from his victims.
This case is the result of an investigation conducted by the Minnesota Commerce Fraud Bureau and the Burnsville Police Department.
Based on the evidence obtained in this case, authorities believe there may be additional victims who have not yet been identified. Anyone with information about this matter is encouraged to call the Minnesota Commerce Fraud Bureau at 651-539-1617. Callers may remain anonymous.
Assistant U.S. Attorney Manda M. Sertich is prosecuting the case.
Defendant Information:
BARRY RON SKOG, 67
Burnsville, Minn.
Charges:
- Sale of counterfeit coins, 5 counts
- Mail fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Bulgarian National Arrested for Conspiracy to Defraud the United States and Illegally Export Prohibited Articles to Syria in Violation of U.S. Export Control LawsRead the Press Release
Zhelyaz Andreev, 29, a Bulgarian national, was arrested pursuant to an Interpol Red Notice based on an Indictment charging him with: conspiracy to defraud the U.S. Government and substantive violations of the Syria Trade Embargo as enforced through the International Emergency Economic Powers Act (IEEPA); and the U.S. Department of Treasury Office of Foreign Assets Control’s (OFAC) designation of Syrian Arab Airlines, aka Syrian Air, as a Specially Designated National (SDN) whose assets are blocked and with whom U.S. nationals are prohibited from transacting business.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office, Special Agent in Charge Robert Luzzi of the Department of Commerce’s Office of Export Enforcement (DOC) Miami Field Office, and the members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement.
Andreev was charged with conspiracy to violate IEEPA and the OFAC regulations by exporting dual-use goods, that is, articles that have both civilian and military application, to Syrian Arab Airlines, the Syrian government’s airline, which is an entity designated and blocked by OFAC for transporting weapons and ammunition to Syria in conjunction with Hizballah, a terrorist organization, and the Iranian Revolutionary Guard Corps.
According to court documents, Andreev worked in the Bulgaria office of AW-Tronics, a Miami export company, which shipped and exported various aircraft parts and equipment to Syrian Arab Airlines. Andreev dealt directly with the Syrian Air principals who procured the parts.
Mr. Demers and Mr. Greenberg commended the investigative efforts of the FBI, DOC, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Defense Criminal Investigative Service, U.S. Customs and Border Protection, and South Florida JTTF. This case is being prosecuted by Assistant U.S. Attorneys Ricardo Del Toro and Michael Thakur of the Southern District of Florida; and Trial Attorney Matthew Walczewski of the National Security Division’s Counterintelligence and Export Control Section.
Buffalo Man Charged with Selling Heroin Linked to the Death of A Hamburg ManRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Tyrone Green, 24, of Buffalo, NY, was arrested and charged by criminal complaint with possession with intent to distribute heroin. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that the charge in the complaint stems from an investigation into an overdose death that occurred in Hamburg, NY on March 26, 2018. Through text messages on the decedent’s cellular telephone, detectives with the Hamburg Police Department and Special Agents with the Drug Enforcement Administration identified Green as the decedent’s supplier. Law enforcement officers then set up a controlled purchase of heroin from the defendant. When Green arrived to sell the heroin, he was arrested and found to be in possession of heroin.
The complaint is the result of an investigation by the Hamburg Police Department, under the direction of Chief Gregory Wickett, and the Drug Enforcement Administration, under the direction of Special-Agent-in-Charge James J. Hunt.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Bradenton Man Sentenced to 16 Years in Federal Prison for Producing and Possessing Child PornographyRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell today sentenced Paul Fabrizio Solis (40, Bradenton) to 16 years in federal prison for producing and possessing child pornography. He was also ordered to serve 25 years on supervised release, following his incarceration. Solis pleaded guilty on November 6, 2017.
According to court documents, Solis took explicit photographs of a young child who was in his care. He kept the images on a thumb drive hidden in a locked safe in his home. He also had more than 4,000 videos and images of child pornography stored on his laptop computer.
This case was investigated by the Federal Bureau of Investigation -Tampa Division, with support from the Bradenton Police Department. It was prosecuted by Assistant United States Attorney Kristen A. Fiore.
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 United States Attorneys Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Boston Man Charged with Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Boston man was arrested yesterday and appeared in federal court in Boston for failure to register as a sex offender.
Lance Pona, 27, was indicted on one count of failing to register as a sex offender. He appeared yesterday before Magistrate Judge Robert B. Collings, who ordered Pona held in custody pending a detention hearing scheduled for Thursday, April 12, 2018.
Pona faces a sentence of no greater than 10 years in prison, a minimum of five years and up to lifetime 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 and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’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, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
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.
Bluffton Woman Sentenced to 60 Months Imprisonment for Bank FraudRead the Press Release
Charleston, South Carolina---- United States Attorney Beth Drake stated that Lecelle Montgomery, age 71, of Bluffton, was sentenced in federal court in Charleston for one count of Bank Fraud, in violation of 18 U.S.C. § 1344(2). United States District Judge Richard Gergel, of Charleston, sentenced Montgomery to 60 months imprisonment followed by 5 years of supervised release and mandatory restitution.
Evidence presented at the change of plea and sentencing hearing established that beginning in 2008 and continuing up to late 2012, Montgomery offered the victims her services as a financial adviser and purposely withheld the fact that she was disbarred by the Financial Industry Regulatory Authority (FINRA). Ultimately, the victims sent Montgomery a combined total of $1,119,440.75 in order to be invested. Instead, the evidence showed that Montgomery used the victims’ money for personal expenditures including gambling at various casinos.
The case was investigated by the FBI. Assistant United States Attorney Matt Austin of the Charleston office prosecuted the case.
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Bergen County, New Jersey, Man Sentenced to Three Years in Prison for Violent North Jersey CarjackingRead the Press Release
NEWARK, N.J. – A Waldwick, New Jersey, man was sentenced today to 36 months in prison for carjacking a taxi and striking the victim on the head with a beer bottle, U.S. Attorney Craig Carpenito announced.
Arlyn Jowany Carrasco Cruz, 28, previously pleaded guilty before U.S. District Judge Jose L. Linares to an information charging him with one count of carjacking. Judge Linares imposed the sentence today in Newark federal court.According to documents filed in this case and statements made in court:
In the early morning hours of Dec. 26, 2016, Cruz and at least five others forcibly took a 2008 Dodge Caravan from a taxicab driver. Cruz and the others forced the taxicab driver into the back of the vehicle and took over driving. As they drove toward Waldwick, Cruz struck the victim in the head with a beer bottle before being let out of the cab.
After dropping Cruz off, the others continued driving the cab to New York, and one individual caused further serious bodily injury to the victim by slicing his throat with a knife before leaving him on the side of the New York State Thruway near Woodbury, New York. The taxicab driver survived.
In addition to the prison term, Judge Linares sentenced Cruz to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, investigators from the Bergen County Prosecutor’s Office, under the direction of Acting Prosecutor Dennis Calo, and the Ridgewood and Hawthorne Police Departments with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Karen D. Stringer of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: Susan C. Cassell Esq., Ridgewood, New Jersey
Beckley Man Pleads Guilty to Passing Counterfeit ChecksRead the Press Release
CHARLESTON, W.Va. – A Beckley man pled guilty today to his role in a mail theft and counterfeit check cashing conspiracy, announced United States Attorney Mike Stuart. Shawn Meadows, 30, entered his guilty plea to uttering counterfeit securities.
Stuart commended the work of the United States Postal Inspection Service and the Beckley Police Department.
“Mail theft and counterfeiting are serious, serious crimes,” said United States Attorney Mike Stuart. “Honest, hardworking taxpayers are left paying for those who cheat, steal and lie and I will protect the taxpayers from criminals like this every single day.”
Meadows admitted that he received three counterfeit checks from his co-defendant, Savion Thomas, which he then passed at three separate branches of a bank in Raleigh County.
Smith faces up to ten years in federal prison and a $250,000 fine when he is sentenced on August 1, 2018. Meadows also agreed to pay more than $7,000 in restitution.
Assistant United States Attorney Eric P. Bacaj is in charge of the prosecution. The plea hearing was held before United States District Judge Irene C. Berger.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Bangor Man Sentenced to over Two Years for Distributing FentanylRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that John Oliveira, 32, of Bangor was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 27 months in prison and three years of supervised release for distributing fentanyl. Oliveira pleaded guilty to the charges on April 17, 2017.
According to court records, on August 16 and 17, 2016, the defendant sold fentanyl to a witness working with law enforcement. During the second sale, the defendant bragged that he was “the best” at selling drugs, he did not “normally have [buyers] waiting too long,” and his buyers “always know what quality is going to be.”
In imposing sentence, Judge Woodcock commented that the defendant had a “horrible criminal history” and that the defendant’s drug dealing was “every parent’s worst nightmare.”
The investigation was conducted by the Maine Drug Enforcement Agency and the Maine Attorneys General’s Office. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Austin men arrested in Bossier City plead guilty to using card skimmers to steal identities, moneyRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that two men from Austin, Texas, pleaded guilty last week to using a credit card skimmer to steal information to create fake credit cards and steal thousands from private accounts.
Emicel Artigas Garcia, 39, and Adalberto Ramos Cuellar, 42, both of Austin, pleaded guilty Friday before U.S. District Judge S. Maurice Hicks Jr., to one count of conspiracy to commit wire fraud and one count of aggravated identity theft.
According to the guilty pleas, the defendants were observed on July 14, 2017 at a Bossier City retail store’s self-checkout counter swiping multiple cards in order to purchase prepaid money and gift cards. Bossier City police later approached the defendants in the parking lot and found seven credit cards and three gift cards in Cuellar’s possession, which bore the defendants’ names. After the electronic information was obtained from the cards, law enforcement agents found that stolen identities were on the cards even though they were labeled with the defendants’ names. Police later searched the defendants’ car and found seven USB thumb drives, one laptop, eight additional re-encoded cards, a cell phone, a gas pump key and a gas pump skimmer. Gas pump skimmers are illegal devices used to steal credit card information. The evidence from the seized devices showed that the defendants downloaded private card information between October 2016 and July 2017. The cell phone contained pictures of screens showing the stolen information, and the laptop contained compromised credit/debit card data for 793 additional cards.
The defendants face up to 20 years in prison for the conspiracy count and two years in prison for the identity theft count, which will run consecutive. They also face five years of supervised release, restitution and a $250,000 fine. Sentencing is scheduled for July 31, 2018.
The U.S. Secret Service and the Bossier City Police Department conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath is prosecuting the case.
Auburn Man Sentenced to Almost Five Years for Possessing a Firearm after Being Convicted of a Domestic Violence MisdemeanorRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Willie Richard Minor, 58, of Auburn, Maine, was sentenced yesterday in U.S. District Court by Judge D. Brock Hornby to 57 months in prison and three years of supervised release for possessing a firearm after being convicted of a misdemeanor crime of domestic violence. Minor was convicted on December 13, 2017, following a two-day jury trial.
Court records and trial evidence revealed that on June 14, 2010, Minor was convicted in Maine Superior Court for assaulting his wife at the time. As a result of that misdemeanor conviction, the defendant was prohibited from possessing firearms. On November 27, 2016, the defendant admitted to a detective with the Auburn Police Department that he had a gun and kept it in his apartment. The police subsequently searched his apartment and seized a loaded .38 caliber pistol. At sentencing, the Court found that Minor was subject to an enhanced sentence because he used the pistol to assault another person.
The investigation was conducted by the Auburn and Mechanic Falls Police Departments; the Maine State Police Crime Lab; the FBI; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Antitrust Division Issues 2018 Annual NewsletterRead the Press Release
The Department of Justice’s Antitrust Division today issued the 2018 edition of its annual Spring Newsletter on its website. The Newsletter highlights the Antitrust Division’s recent activities and successes on civil and criminal enforcement, international cooperation, and competition advocacy. The Newsletter includes a message from Assistant Attorney General Makan Delrahim, articles recounting the Antitrust Division’s enforcement actions in the criminal, merger, and civil non-merger areas over the past year, as well as an update on the Division’s international and competition advocacy programs.
“This spring, I have had the opportunity to reflect on my six-month anniversary as Assistant Attorney General of the Antitrust Division, looking back on the important achievements of our career staff and the exciting new developments and announcements still on the horizon,” said Assistant Attorney General Delrahim in his ‘Message from Makan.’ “My goal as Assistant Attorney General is to ensure that the Antitrust Division exercises its power so that the American consumer can reap the rewards of free market competition and innovation.”
The Newsletter highlights these milestones and accomplishments, and features profiles of Division leadership and staff. It can be found at https://www.justice.gov/atr/division-operations/division-update-spring-2018.
Anchorage Woman Sentenced for Embezzling Funds from Local UnionRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that an Anchorage woman has been sentenced in federal court for embezzling nearly $200,000 from a local union.
Anne C. Reddig, 63, of Anchorage, was sentenced yesterday by Chief U.S. District Judge Timothy M. Burgess, to serve 14 months in prison, followed by a three-year term of supervised release, and was ordered to pay $139,960.66 in restitution. Reddig previously pleaded guilty on Sept. 25, 2017, to embezzlement of assets by a labor organization officer.
According to court documents, from March 2007 until she resigned in September 2014, Reddig served as the Secretary-Treasurer of the International Alliance of Theatrical Stage Employees (“IATSE”) Local Union (“LU”) #918. The investigation revealed that Reddig, while an officer of IATSE LU 918, embezzled $193,275.52 in union funds and converted the funds to her own personal use between March 2010 and September 2014. Reddig embezzled the funds by transferring money directly from union accounts into her own accounts, forging the signature of another union officer on checks she wrote for her own benefit, using ATM machines to withdraw cash directly from union accounts, and spending union funds at retail stores via the union’s debit card. The investigation further revealed that Reddig also submitted false reports to the United States Department of Labor by failing to disclose the union funds that she had received.
The U.S. Department of Labor’s Office of Labor-Management Standards conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jonas Walker.
Anchorage Man Sentenced to 50 Months in Federal Prison for Involvement in Opium Distribution ConspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that an Anchorage man was sentenced to federal prison for his involvement in a conspiracy to distribute large amounts of opium, and for possession of methamphetamine.
Kao Ching Saelee, 51, of Anchorage, was sentenced on Monday, April 9, by Chief U.S. District Judge Timothy M. Burgess to 50 months in prison. Saelee was indicted by a federal grand jury in June 2016, together with three co-defendants, for his role in the conspiracy to distribute the opium. Saelee was additionally charged in a separate count for possession of the methamphetamine. He pleaded guilty to the opium and methamphetamine charges in October 2017.
According to court documents, between April and June 2016 in Anchorage, Saelee was involved in helping to distribute approximately 1,200 grams of opium in three separate transactions. The investigation revealed that Saelee had allowed his residence in Anchorage to be used to store large amounts of opium, which were distributed by another participant in the conspiracy. On June 14, 2016, a federal search warrant was executed at Saelee’s residence leading to the seizure of additional amounts of opium and a large amount of methamphetamine.
The Federal Bureau of Investigation Safe Streets Task Force conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Joseph W. Bottini.
***media Advisory***Read the Press Release
UNITED STATES ATTORNEY JOINS WITH GOVERNOR IN HONORING FALLEN HEROES OF LAW ENFORCEMENT
AND TO COMMEMORATE NATIONAL CRIME VICTIMS' RIGHTS WEEK
Back the Blue: Honoring Our Fallen Heroes, and Celebrating Law Enforcement’s Contributions to Crime Victims and Service
CHARLESTON, W.Va. – Federal, state and local law enforcement and advocates of crime victims’ rights will join United States Attorney Mike Stuart in hosting an opening ceremony on Thursday, April 12, 2018, in the Robert C. Byrd United States Courthouse in Charleston, and a Walk/Run for Justice on Friday, April 13, 2018, at Haddad Riverfront Park in Charleston. Both events are being held in recognition of National Crime Victims' Rights Week.
This year’s local theme is “Back the Blue: Law Enforcement’s Contributions to Crime Victims and Service.” The ceremony and walk/run will honor and remember fallen law enforcement who paid the ultimate sacrifice, and celebrate those who continue to serve crime victims and the community. As part of the event, the United States Attorney and the West Virginia Fraternal Order of Police will unveil a statewide tribute to our men and women in blue.
West Virginia Governor James “Jim” Justice, II has issued a Proclamation ordering on April 13th at noon a statewide moment of silence be observed, at which time United States Attorney Mike Stuart has, in addition to the moment of silence, called for all houses of worship to toll their bells.
This years’ events mark the 18th Annual Operation Reach Out event. Operation Reach Out is a collaborative group of federal, state and local agencies and organizations that work to raise awareness about the rights, protections, and services available to crime victims in West Virginia. This event is being held in conjunction with the nationwide observance of National Crime Victims' Rights Week, which begins on April 8 and runs through April 14, 2018.
OPENING CEREMONY:
WHO: United States Attorney Mike Stuart
West Virginia Fraternal Order of Police
Operation Reach Out committee members
Other federal, state and local officials
Families of fallen heroes of law enforcement
Staff of United States Attorney's Office, Southern District of West Virginia
WHAT: Operation Reach Out Opening Ceremony for National Crime Victims’ Rights Week – Back the Blue
WHERE: Robert C. Byrd United States Courthouse – Fifth Floor
300 Virginia Street, East
Charleston, WV 25301WHEN: Thursday, April 12, 2018, at noon. The ceremony will immediately follow a reception and lunch beginning at 11:30 a.m.
WALK/RUN FOR JUSTICE & PRE-RACE CEREMONY:
WHO: United States Attorney Mike Stuart
James Bailey, Senior Counsel to Governor Jim Justice
Major General James A. Hoyer, West Virginia National Guard
Operation Reach Out committee members
Survivors of Crime
Other federal, state and local officials
Staff of United States Attorney’s Office, Southern District of West Virginia
WHAT: Walk/Run for Justice and Pre-Race Ceremony
WHERE: Haddad Riverfront Park
Kanawha Boulevard
Charleston, WV
WHEN: Friday, April 13, 2018. Registration to begin at 11:00 a.m. Ceremony at 11:30 a.m. Race at noon.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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10 April 2018
Windsor Mill Man Sentenced for Procuring Citizenship UnlawfullyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge Richard D. Bennett sentenced Zulquarnain Qureshi, age 71, of Windsor Mill, Maryland, to nine months in prison, followed by one year of supervised release, should he return to the United States, for Procurement of Citizenship Unlawfully. Qureshi plead guilty to the offense on February 5, 2018. As part of the plea agreement, Qureshi was denaturalized and agreed to be removed from the United States.
The sentence was announced by the United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Richard Ingram of the Department of State’s Diplomatic Security Service (DSS), Washington Field Office.
According to his plea agreement, Qureshi fraudulently obtained the passport of a citizen of the United Kingdom and used it to enter the United States in June 1999. Qureshi then lived in the United States, and worked and traveled abroad under that false identity until his August 15, 2017 arrest in Baltimore, Maryland. During the intervening years, Qureshi married a succession of three United States citizens while maintaining his marriage to a woman in his native Pakistan. Through his second marriage, Qureshi was able to obtain lawful permanent resident status as the spouse of a United States citizen.
Qureshi, using the assumed identity, filed for United States citizenship, which was granted, and took the oath on August 10, 2016. The day before a new United States passport was to be sent to Qureshi, Her Majesty’s Passport Office alerted American law enforcement to the fraud. The passport was not delivered and an investigation was undertaken.
United States Attorney Robert K. Hur commended the DSS, the United Kingdom’s Border Force and Passport Office and HSI for their work in the investigation. Mr. Hur thanked Special Assistant U.S. Attorney Brian M. Fish who is prosecuting the case.
Wilkes-Barre Man Sentenced to Eight Years’ Imprisonment for Conspiring to Distribute Crack CocaineRead the Press Release
WILKES-BARRE – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on April 6, 2018, United States District Court Judge A. Richard Caputo sentenced Jaquan Henderson, age 28, of Wilkes-Barre, Pennsylvania, to eight years’ imprisonment and three years of supervised release, for conspiring to distribute crack cocaine.
According to United States Attorney David J. Freed, Henderson pleaded guilty to conspiring to distribute and possess with intent to distribute crack cocaine in February 2016. Henderson was charged with five other individuals in May 2016. Henderson’s sentence was impacted, in part, by his significant criminal history, which qualified him as a career offender under the advisory United States Sentencing Commission Guidelines.
The matter was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives, and by the Luzerne County Drug Task Force. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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Webster County Man Sentenced to over 20 Years in Prison for Role in Methamphetamine Trafficking ConspiracyRead the Press Release
CHARLESTON, W.Va. – A Webster County man who brought more than 4 kilograms of methamphetamine to Charleston was sentenced to 262 months in federal prison, announced United States Attorney Mike Stuart. Quinton Funk, 38, of Webster Springs, previously pled guilty to conspiracy to distribute over 500 grams or more of methamphetamine. Stuart commended the investigation conducted by the Metropolitan Drug Enforcement Network Team (MDENT) with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“The increase in methamphetamine trafficking throughout the Southern District of West Virginia is greatly concerning,” said United States Attorney Mike Stuart. “We need to stop meth now before it becomes an even bigger problem. We will aggressively prosecute meth dealers like Funk to the fullest extent of the law.”
Funk took part in a methamphetamine trafficking conspiracy that transported more than 4 kilograms of crystal methamphetamine from Atlanta and sold it in West Virginia. On January 4, 2017, Funk traveled to Atlanta with codefendants Jamie Harmon and Carl “Yogi” Clark to buy the methamphetamine. He further admitted to bringing the drugs back to West Virginia and selling that methamphetamine. Later that month, Funk was arrested with approximately $28,000 in cash in his backpack, and a loaded Glock 22, .40 caliber pistol in his possession. That same day, MDENT officers executed a search warrant at a hotel room where Funk was staying and found over 130 grams of methamphetamine, scales, baggies, and a gun. In February 2017, law enforcement arrested him again after he provided Christopher Carte, another codefendant, an ounce of methamphetamine to distribute. Officers recovered another $2,700 in cash from Funk when he was arrested. As part of his plea agreement, Funk also admitted to all the drug and gun crimes he was charged with in the indictment.
Two other defendants involved in this methamphetamine conspiracy have been sentenced to federal prison. Christopher Carte, of St. Albans, was sentenced to three years in prison for conspiracy to distribute methamphetamine. Holly Doub, of South Charleston, was sentenced to five days in federal prison for aiding and abetting the distribution of methamphetamine.
Clark and Harmon both pled guilty to distribution of methamphetamine and each faces up to 20 years in federal prison when they are sentenced on April 12, 2018. Clark and Harmon have admitted they possessed approximately four kilograms of methamphetamine during the course of the conspiracy.
Assistant United States Attorneys Haley Bunn and Eric Bacaj are handling the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Volga Man Ordered to Restore Protected Wetlands of the United StatesRead the Press Release
United States Attorney Ron Parsons announced that U.S. District Judge Karen E. Schreier sentenced a Volga, South Dakota man convicted of Disturbing Protected Wetlands of the United States. The sentencing took place on April 9, 2018.
Kevin Jay Mast, age 61, was sentenced to 1 year of probation, ordered to pay a $100 fine, and $10 to the Federal Crime Victims Fund. Mast was also ordered to comply with the restoration of the protected wetlands on his property.
Mast was indicted for Disturbing Protected Wetlands of the United States by a federal grand jury on September 6, 2017. He was found guilty by a jury of his peers on January 18, 2018.
In 1973, the U.S. Fish & Wildlife Service purchased an easement for waterfowl management rights. The easement prohibited the drainage of any wetland areas on the property. In 2010, the U.S. Fish & Wildlife notified Mast that his plan to install drain tile conflicted with the protected wetlands and was not authorized. Despite the warning, Mast installed the drain tile in the fall of 2013. The sentence imposed by the Court requires Mast to restore all six protected wetland areas on his property by August 1, 2018.
“The wetland areas of South Dakota provide crucial habitat for the reproduction of waterfowl, and the U.S. Attorney’s Office strictly enforces protection of these areas. Requiring the defendant to restore the affected wetlands sends an important message, that this type of blatant disregard for the law will not be tolerated,” said U.S. Attorney Parsons.
This case was investigated by the U.S. Fish and Wildlife Service. Assistant U.S. Attorney Jeff Clapper prosecuted the case.
Violent Crime Federal Prosecution UpdateRead the Press Release
St. Louis, MO – The United States Attorney’s Office will prosecute aggressively violent criminals and drug dealers. Federal prosecution is a powerful tool in the fight to reduce violent crime. Below is a list of defendants prosecuted federally in March:
Jamacian Brown, 28, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Keiven Cole, 32, Spanish Lake, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Tyrone Davis, 45, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Jerry Hampton, 38, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Courtney Brown, 36, was indicted by a federal grand jury on one felony count of conspiracy to possess with intent to distribute methamphetamine and one count of possessing a firearm in furtherance of a drug trafficking crime resulting in death.
Paris Devine, 25, was indicted by a federal grand jury on one felony count of conspiracy to possess with intent to distribute methamphetamine; one count of discharging a firearm in furtherance of a crime of violence and one count of carjacking.
Tracy Johnson, 36, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Dustin Lockwood, 33, Arnold, was indicted by a federal grand jury on one felony count of possession of a firearm in a school zone and one count of possession of a silencer.
Jermaine Rhodes, 25, St. Louis, was indicted by a federal grand jury on one felony count of possession with intent to distribute fentanyl; one count of possession with the intent to distribute marijuana; one felony count of possession of a firearm in furtherance of a drug trafficking crime; and felon in possession of a firearm.
Devin Tate, 24, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Amechie Baldwin, 31, Olivette, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Anthony Bounds, 35, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of one or more firearms; possession with intent to distribute cocaine base (crack); and possession of a firearm in furtherance of a drug trafficking crime.
Shaahree Buckley, 38, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Rafael Foster, 32, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute a controlled substance; and possession of a firearm in furtherance of a drug trafficking crime.
Paris Gordon, 47, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Shannon Jackson, 32, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Edward McGinnist, 34, was indicted by a federal grand jury on one felony count of possession with intent to distribute methamphetamine; possession with intent to distribute heroin; and felon in possession of a firearm.
Shaun Bonner, 35, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Antoine Bonnett, 42, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute cocaine base; possession of a firearm in furtherance of a drug trafficking crime; and possession with intent to distribute cocaine base.
Maurice Cooper, 38, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Ted Moses was indicted by a federal grand jury on one felony count of felon in possession of a firearm and conspiracy to possess with the intent to distribute in excess of 500g of cocaine.
Cory Smith, 29, Fenton, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Eric Steward, 27, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Deon Story, Jr., 37, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Christopher Walter, 44, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Zackary Ward, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Donnell Witherspoon, 37, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Tyreece Young, 20, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Andre Adams, 32, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Darryl Allen, 49, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Justin Cordes, 42, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Anthony Drake, 33, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Travis Johnson, 33, was indicted by a federal grand jury on one felony count of possess with intent to distribute fentanyl; possess one or more firearms in furtherance of the drug trafficking crime; and felon in possession of a firearm.
Calvin Monger, Jr., 31, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Corey States, 40, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Cameron Sutton, 25, St. Ann, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute marijuana; and possession of a firearm in furtherance of a drug trafficking crime.
Stacy Albright, 45, St. Clair, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Charles Dabney, 41, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Vernon DeFrance, 51, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Lyle Deloch, 32, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
David Ewing, Jr., St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Ernest Harris, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Shaun Jackson, 25, St. Louis, was indicted by a federal grand jury on one felony count of conspiracy to distribute 100g or more of heroin; possession with intent to distribute 100g or more of heroin; and possession of a firearm in furtherance of a drug trafficking crime.
Daria Wright, 21, St. Louis, was indicted by a federal grand jury on one felony count of conspiracy to distribute 100g or more of heroin; possession with intent to distribute 100g or more of heroin; and possession of a firearm in furtherance of a drug trafficking crime.
Walter King, 43, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute heroin; and possession of a firearm in furtherance of a drug trafficking crime.
Carl Terry, 37, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Derek Whitfield, 35, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of one or more firearms; possession with intent to distribute fentanyl;
Michael E. Broom, Jr., 28, St. Louis, pled guilty to felon in possession of a firearm.
Johnnie Stewart, 36, St. Louis, pled guilty to felon in possession of a firearm.
Chad M. Jackson, 34, Florissant, pled guilty to felon in possession of a firearm.
Anthony Young, 44, St. Louis, pled guilty to felon in possession of a firearm.
Eric Thompson, 49, St. Louis, pled guilty to felon in possession of a firearm.
Antonio Gray, 30, St. Louis, pled guilty to felon in possession of a firearm.
Kenyetta Chapman, 22, Stockton, CA, pled guilty to felon in possession of a firearm.
Kenneth Johnson-Pace, 24, St. Louis, pled guilty to felon in possession of a firearm.
Jerome Hughes, 30, St. Louis, pled guilty to felon in possession of a firearm.
Dominique D. Simpson, 28, St. Louis, pled guilty to felon in possession of a firearm.
Amin Suluki-Bey, 48, St. Louis, pled guilty to felon in possession of a firearm.
Demarye Briggs, 21, St. Charles, pled guilty to felon in possession of a firearm.
Christopher Starks, 37, St. Louis, pled guilty to felon in possession of a firearm.
Rashad Faries, 26, St. Louis, pled guilty to felon in possession of a firearm.
Christopher Starks, 37, St. Louis, pled guilty to felon in possession of a firearm.
Teran Willis, 35, St. Louis, pled guilty to felon in possession of a firearm.
Nicholas O. Johnson, 28, St. Louis, pled guilty to possession with the intent to distribute fentanyl and possession of a firearm in furtherance of a drug trafficking crime.
Jake Richardson, 24, St. Louis, pled guilty to importing a firearm.
Willie McFarland, 42, St. Louis, pled guilty to felon in possession of a firearm.
Jason Baker, 41, Imperial, pled guilty to felon in possession of a firearm.
Earl McNeal, 24, St. Louis, pled guilty to felon in possession of a firearm.
Quavon D. Williams, 22, pled guilty to carjacking and use of a firearm during a crime of violence.
Michael Thomas-Williams, 35, Hazelwood, pled guilty to felon in possession of a firearm.
Joe Edger, 43, St. Louis, was sentenced to 360 months in prison for conspiracy to possess a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm.
Damon D. Williams, 41, was sentenced to 90 months in prison for felon in possession of a firearm.
Armond Calvin, 20, St. Louis, was sentenced to 13 months in prison for felon in possession of a firearm.
Joseph Stewart, 42, St. Louis, was sentenced to 24 months in prison for felon in possession of a firearm
Deangelo H. Young, 25, St. Louis, was sentenced to 70 months in prison for felon in possession of a firearm.
Brandon Johnson, 34, St. Louis, was sentenced to 32 months in prison for felon in possession of a firearm.
Stephonne Wilder, 22, St. Ann, was sentenced to 15 months in prison for felon in possession of a firearm.
Dwayne Bowden, 36, St. Louis, was sentenced to 27 months in prison for felon in possession of a firearm.
Charles Leonard, 48, St. Louis, was sentenced to 66 months in prison for felon in possession of a firearm and possession with intent to distribute a mixture or substance containing a detectable amount of fentanyl.
Calvin E. Kyles, 33, St. Louis, was sentenced to 96 months in prison for felon in possession of a firearm.
Terrance L. Thomas, 25, St. Louis, was sentenced to 60 months in prison for possession of a firearm in furtherance of a drug trafficking crime.
Lamont Brison, 27, St. Louis, was sentenced to 29 months in prison for felon in possession of a firearm.
Ronald A. Golden, Jr., 45, University City, was sentenced to 117 months in prison for use of a firearm during a crime of violence.
Jeramie Blount, 33, St. Louis, was sentenced to 38 months in prison for felon in possession of a firearm.
Quontre Thomas, 27, Florissant, was sentenced to 110 months in prison for felon in possession of a firearm.
Jon A. Parker, 29, Union, was sentenced to 27 months in prison for felon in possession of a firearm.
Laron Hutchins, 27, St. Louis, was sentenced to 60 months in prison for felon in possession of a firearm.
Jason Mitchell, 35, Fenton, was sentenced to 42 months in prison for felon in possession of a firearm.
Roy C. White, 36, was sentenced to 60 months in prison for possessing a firearm during the commission of a federal crime of violence.
Deandriss Bowden, 22, St. Louis, was sentenced to 27 months in prison for felon in possession of a firearm.
Lavell T. Sherman, 24, St. Louis, was sentenced to 27 months in prison for felon in possession of a firearm.
Fidencio Lagunes-Elias, 36, Chesterfield, was sentenced to 10 months in prison for felon in possession of a firearm.
Laythan Hearton, 32, St. Louis, was sentenced to 37 months in prison for felon in possession of a firearm.
Hollis Weaver, 26, St. Louis, was sentenced to 27 months in prison for felon in possession of a firearm.
James C. Smith, 33, Florissant, was sentenced to 50 months in prison for felon in possession
United States Recovers over $130,000 Resolving Allegations that Federal Gas Lessee Violated the False Claims ActRead the Press Release
DENVER -- The United States Attorney for the District of Colorado, Bob Troyer, today announces the recovery of $130,752 to settle allegations that two companies, Sanders Oil & Gas, LLC and Sanco Operating Company, violated the federal False Claims Act by failing to pay money owed to the Department of the Interior’s Office of Natural Resources Revenue (ONRR) for natural gas produced from a federal lease located in New Mexico.
Federal lands can be leased for the production of natural gas in exchange for the payment of royalties on the value of the gas that is produced, among other obligations. Each month, companies with federal leases are required to report to ONRR the amount of royalties due and then pay the amount owed.
The settlement announced today resolves claims by the United States that Sanders and Sanco failed to report any production or pay any of its royalty obligation to the United States for gas produced from the Mesa Diablo lease in New Mexico from September, 2010, through December, 2016. The United States further alleged that although Sanders and Sanco paid some money for gas that was produced from that lease between January, 2010, and August, 2010, they owed additional royalties and had failed to pay the full amount that was due during this 9-month period.
“Gas companies that cheat on royalty payments are going to get caught. Our office is systematically ensuring that they pay what they owe for resources they take from federal lands. These are resources owned by all Americans, and we won’t tolerate the failure to pay for them,” said United States Attorney Bob Troyer.
“The obligation to pay federal mineral royalties is essential to the responsible development of oil and gas from public lands, and the OIG is committed to work with DOJ and its federal partners to ensure that companies developing public resources meet their legal responsibilities,” stated Ron Gonzales, Special Agent in Charge of the Department of the Interior-Office of Inspector General’s Energy Investigations Unit.
“The Bureau of Land Management takes its oversight responsibilities seriously, and will work diligently with our partners to hold liable those companies that fail to meet their legal and regulatory commitments,” said Shannon Tokos, Acting Deputy Director of the BLM’s Office of Law Enforcement and Security.
The United States Attorney’s Office acknowledges the cooperation and teamwork demonstrated by governmental entities involved in today’s recovery. Special thanks are extended to the Office of Natural Resources Revenue, the Department of the Interior’s Office of the Solicitor, the Energy Investigations Unit of the Department of the Interior’s Office of Inspector General, and the Special Investigations Group of the Bureau of Land Management. The United States Attorney’s Office in Denver, Colorado works closely with these offices in the pursuit of unpaid or underpaid oil and natural gas revenue, claims for which are processed at the Office of Natural Resources Revenue at the Federal Center in Lakewood.
The United States was represented in this matter by Assistant United States Attorney Amanda Rocque and former Special Assistant United States Attorney Marisela Sandoval.
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Union Woman Pleads Guilty to Tax FraudRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Ashley E. Browning, age 31, of Union, pled guilty in federal court in Anderson, to preparing and presenting false tax returns, a violation of Title 26, United States Code, Section 7206(2). United States District Judge Timothy M. Cain, of Anderson, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Browning prepared and filed, and assisted in preparing and filing of, multiple tax returns for customers in exchange for fees. Browning carried out this conduct from her home in Union County and also from the homes of her customers who resided in and around Union County. Browning repeatedly falsified information in returns she prepared in order to generate fraudulent refunds. For example, Browning repeatedly submitted false information about customers’ income, federal withholding, and educational expenses. Because of this pattern of falsification, the Government issued approximately $200,000 more in refunds than it would have if accurate and honest information had been submitted by Browning.
Ms. Drake stated the maximum penalty Browning can receive is a fine of $100,000 and/or imprisonment for 3 years, supervised release of one year, plus a special assessment of $100.
The case was investigated by agents with the Internal Revenue Service and the Union City Police Department. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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U.S. Department of Justice Observes National Crime Victims' Rights Week with Events Throughout the CountryRead the Press Release
In observance of National Crime Victims’ Rights Week, April 8-14, 2018, United States Attorney Brandon Fremin of the Middle District of Louisiana will be participating in several local events observing National Crime Victims’ Rights Week, including “An Evening of Remembrance” event hosted by the East Baton Rouge Sheriff’s Office and a Crime Victims’ Rights picnic hosted by the East Baton Rouge District Attorney’s Office.
“In law enforcement, we are sworn to serve and protect,” Attorney General Sessions said. “We carry out this oath every day by protecting the rights of law abiding people from criminals and by achieving justice for crime victims. This week, we remember the millions of Americans who have been victimized by criminals and we thank those who have gone above and beyond the call of duty in their service to those victims. As we do so, we recommit ourselves to fulfilling our oath and to reducing crime in America.”
U.S. Attorney Brandon Fremin of the Middle District of Louisiana stated, “The importance of our law enforcement mission is most clearly illustrated by those who have been victimized by crime. Their stories remind us that crime statistics are not mere statistics; they represent real crimes affecting real people and real families. This week we remember those victims and recommit ourselves to making our community a safer place.”
Each year in April, the Department of Justice and United States Attorney’s Offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorney’s Offices organize events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s observance takes place April 8-14, with the theme Expand the Circle: Reach All Victims.
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 13, 2018, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Middle District of Louisiana Victim Witness Program at (225) 389-0443.
U.S. Attorney’s Office Partners with Local Law Enforcement to Commemorate National Crime Victims’ Rights WeekRead the Press Release
LEXINGTON, Ky. - The U.S. Attorney’s Office for the Eastern District of Kentucky, along with the Fayette Commonwealth’s Attorney’s Office, the Fayette County Attorney’s Office, the Lexington Police Department, and the Office of the Fayette County Sheriff will commemorate National Crime Victims’ Rights Week (NCVRW), April 8-14, 2018, at the Lexington Crime Victims’ Rights Luncheon, on April 11, 2018. The luncheon is a collaboration of local law enforcement partners, to raise awareness about crime victims’ issues and rights and introduce the community to the important resources and services available. According to the most recent Bureau of Justice Statistics survey, victims experience more than five million violent crimes and nearly 15 million property crimes a year.
This local partnership will commemorate the advancement of victims’ rights and highlight issues surrounding victimization at this event at 11:30 am, at the Fayette County Circuit Courthouse Multi-Purpose Room. During the event, the U.S. Attorney’s Office will honor Rajbir Datta, an Assistant United States Attorney, with the Office’s Danny Ray Smith Crime Victims’ Rights Award. Danny Ray Smith, the first Victim-Witness Coordinator at the U.S. Attorney’s Office, was a champion in advocating for expanded support and services to communities affected by crime. Datta will receive the award for his tireless efforts to pursue restitution for victims in a significant fraud case that affected hundreds of victims. The other law enforcement partners will be presenting awards as well.
The Office for Victims of Crime (OVC) of the U.S. Department of Justice leads communities throughout the country in their annual observances of National Crime Victims’ Rights Week, by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. This year’s theme—Expand the Circle: Reach All Victims—highlights how the investment of communities in crime victims expands the opportunity for victims to disclose their victimization, connect with services, and receive the support they need. The theme also acknowledges the many barriers facing victims of crime especially those with disabilities, LGBTQ victims, older adults, speakers with limited English proficiency, American Indians and Alaska Natives, and others from historically marginalized communities.
“Victims’ rights are of great importance in the criminal justice system, and I take very seriously my Office’s duty to ensure that victims’ voices are heard,” stated United States Attorney Robert M. Duncan, Jr. “I am proud to partner with members of the law enforcement community to honor and renew our commitment to victims of crime.”
OVC and the U.S. Attorney’s Office, along with our local partners, encourage widespread participation in the week’s events and in other victim-related observances throughout the year. The U.S. Department of Justice will host OVC’s annual National Crime Victims’ Service Awards Ceremony, in Washington, D.C., to honor outstanding individuals and programs that serve victims of crime.
For additional information about this year’s National Crime Victims’ Rights Week, and how to assist victims in your community, please contact Jenny Parker, Victim Assistance Specialist, at 859-685-4906, or visit U.S. Attorney’s Office website, at www.justice.gov/usao-edky. For additional ideas on how to support victims of crime, visit OVC’s website at www.ovc.gov.
U.S. Attorney’s Office Announces Additional Charges Against Athletic Apparel Company Executive and Others for Allegedly Defrauding Four NCAA Division I UniversitiesRead the Press Release
Robert S. Khuzami, the Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, announced the filing of a Superseding Indictment against defendants JAMES GATTO, a/k/a “Jim,” MERL CODE, and CHRISTIAN DAWKINS in United States v. Gatto, 17 Cr. 686 (LAK). The Superseding Indictment (“the Indictment”) expands the scope of the charged wire fraud conspiracy to include alleged payments to the families of six student-athletes in connection with those players’ decisions to attend four different NCAA Division I Universities – the University of Louisville, the University of Miami, the University of Kansas, and North Carolina State University – all of which were sponsored by the same major athletic apparel company (“Company-1”).[1]
The investigation remains ongoing. The FBI strongly encourages anyone with information they believe to be relevant to contact the FBI by calling a special hot line established to receive tips in connection with this investigation: 212-384-2135.
The case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Edward B. Diskant, Noah Solowiejczyk, Eli J. Mark, Robert L. Boone, and Aline Flodr are in charge of the prosecution.
[1] As the paragraph above indicates, the entirety of the text of the Superseding Indictment constitute only allegations, and every fact described therein should be treated as an allegation.
U.S. Attorney's Office Joins in Recognizing National Crime Victims' Rights Week, April 8-14, 2018Read the Press Release
PORTLAND, Ore. – Every April, the Justice Department’s Office for Victims of Crime (OVC) leads communities across the country in observing National Crime Victims’ Rights Week (NCVRW) to honor crime victims, promote their rights and recognize those who advocate on their behalf. This year’s NCVRW will be held April 8-14, 2018 with the theme of Expand the Circle: Reach All Victims.
The U.S. Attorney’s Office joins its federal, state, local and tribal law enforcement partners in taking this opportunity to highlight the importance of providing necessary services at the earliest possible stage of victimization and litigation. Early intervention helps prevent further victimization and encourages victim involvement in the criminal justice system, mitigating the cycle of violence and restoring hope for the future.
"In law enforcement, we are sworn to serve and protect," Attorney General Sessions said. "We carry out this oath every day by protecting the rights of law abiding people from criminals and by achieving justice for crime victims. This week, we remember the millions of Americans who have been victimized by criminals and we thank those who have gone above and beyond the call of duty in their service to those victims. As we do so, we recommit ourselves to fulfilling our oath and to reducing crime in America."
“According to Bureau of Justice statistics, victims experience more than five million crimes of violence and nearly 15 million property crimes annually. Sadly, odds are most Americans have been a victim of crime or know someone personally who has,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Now more than ever, victims of crime deserve a voice. They deserve to know that others stand with them and recognize their courage.”
“So often in this country when we talk about crime, the focus is on those who are breaking the law, including significant attention paid to the criminal’s life, arrest and punishment. For the men and women of the FBI, though, any given case is about much more than just handcuffs and court appearances. Our compassion for the victims is at the core of who we are and why we do what we do. For us, the rights and needs of the trafficked child, armed robbery victim or senior citizen who lost his life savings are just as important - if not more so – than the story of the person who caused such harm,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.
This year’s theme—Expand the Circle: Reach All Victims—highlights how the investment of communities in crime victims expands the opportunity for victims to disclose their victimization, connect with services and receive the support they need. The theme also acknowledges the many barriers facing victims of crime especially those with disabilities, LGBTQ victims, older adults, speakers with limited English proficiency, American Indians and Alaska Natives, and others from historically marginalized communities.
OVC and the U.S. Attorney’s Office encourages widespread participation in the week’s events and in other victim-related observances throughout the year. The Justice Department will host OVC’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 13, 2018 to honor outstanding individuals and programs that serve victims of crime. For additional information about this year’s National Crime Victims’ Rights Week and how to assist victims in your community, please visit OVC’s website at www.ovc.gov.
If you or someone you know has been a victim of a crime, please contact your local law enforcement agency or your nearest FBI office immediately. The FBI Portland Field Office can be reached at (503) 224-4181.
U.S. Attorney for Kansas Spotlights Crime Victims’ RightsRead the Press Release
KANSAS CITY, KAN. – Protecting the rights of crime victims is a high priority, U.S. Attorney Stephen McAllister said today.
The U.S. Attorney’s office for the District of Kansas is joining advocates from across the state in recognizing National Crime Victims’ Rights Week, April 8-14, 2018.
“As a society we must not lose sight of the costs and suffering that crime inflicts on those who are victims. Many organizations—federal, state and local—provide support and services to the victims of crime. The Constitution creates and requires recognition of several rights for those accused of crime, and rightly so. But our society also must recognize the dignity of the victims of crime, strive to ease the pain and loss many have suffered, and fully support victims’ legitimate interest in seeing justice done.”
McAllister said victim assistance staff members will be participating in the 21st Annual Crime Victims’ Rights Conference in Topeka, April 11 and 12. In coming months, the U.S. Attorney’s Office will be co-hosting the 2018 Indian Country Conference in Omaha, Neb., May 9-10, and hosting the 2018 Human Trafficking Conference in Manhattan, Kan., July 10-11.
Events across the nation this week recognize the Crime Victim’s Rights Act, which guarantees victims protection from an accused, accurate and timely information about court proceedings and the right to be treated with fairness and respect for their dignity and privacy.
Each year in April, the Department of Justice and United States Attorney’s Offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorney’s Offices take part in events to honor the victims and advocates, as well as bring awareness to services available to victims of crime. This year’s theme is Expand the Circle: Reach All Victims.
The U.S. Department of Justice will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 13, 2018, to honor outstanding individuals and programs that serve victims of crime.
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at https://ojp.gov/. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Office for the District of Kansas’ Victim Witness Program at 316-269-6481.
U.S. Attorney Nolan to Testify Before U.S. Senate Judiciary SubcommitteeRead the Press Release
On April 11, 2018, United States Attorney Christina E. Nolan will testify at a hearing before the Senate Judiciary Committee’s Subcommittee on Crime and Terrorism. Her remarks, titled “Defeating Fentanyl: Addressing the Deadliest Drugs Fueling the Opioid Crisis,” are scheduled to begin at 2:30 p.m. Eastern Daylight Time.
Two Tennessee Health Care Executives Charged for Role in $4.6 Million Medicare Kickback SchemeRead the Press Release
Nashville, Tenn. – April 9, 2018 - Two Tennessee health care executives were charged in an indictment unsealed today for their alleged participation in a $4.6 million Medicare kickback scheme involving durable medical equipment (DME).
Joining U.S. Attorney Don Cochran of the Middle District of Tennessee in making the announcement were Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Atlanta Region, Special Agent in Charge John F. Khin of the U.S. Department of Defense Criminal Investigative Service’s (DCIS) Southeast Field Office and Director Mark Gwyn of the Tennessee Bureau of Investigation.
John Davis, 40, of Brentwood, Tennessee, and Brenda Montgomery, 69, of Camden, Tennessee, were each charged with one count of conspiracy to defraud the United States and to pay and receive health care kickbacks, and seven counts of paying and receiving health care kickbacks. Davis is the former CEO of Comprehensive Pain Specialists (CPS), a large, multi-state pain management company. Montgomery is the owner, founder and CEO of CCC Medical Inc., a DME company with five locations in Tennessee and headquartered in Camden. Davis and Montgomery were arrested this morning and appeared this afternoon before U.S. Magistrate Judge Alistair E. Newbern of the Middle District of Tennessee.
“Our Medicare program is designed to help those who are most vulnerable and in need of medical services and equipment,” said U.S. Attorney Cochran. “Stealing funds from our health care system places the vulnerable at greater risk and diverts public funds into the pockets of the greedy individuals who exploit those with the greatest need. We will be un-relenting in our efforts to bring to justice, those individuals and corporations who choose to profit at the expense of the health of those individuals with the greatest need.”
“The charges against John Davis and Brenda Montgomery, alleging almost three quarters of a million dollars in illegal health care kickbacks and the submission of over $4.6 million in fraudulent claims to Medicare, demonstrate the Department of Justice’s commitment to protect taxpayer dollars and to hold corporate executives accountable for fraudulent and abusive conduct,” said Acting Assistant Attorney General Cronan. “Kickbacks such as those alleged in the indictment distort markets and undermine public trust. The Criminal Division and our law enforcement partners will continue to root out fraud, waste and abuse in our health care programs, no matter how complex the schemes.”
“Kickback schemes like this one do not benefit patients or the Medicare program,” said Special Agent in Charge Jackson. “These arrangements are simply designed to line the pockets of the defendants at the expense of the taxpayer.”
“In concert with our partner agencies, DCIS aggressively investigates fraud and corruption that undermines the integrity of Department of Defense programs,” said Defense Criminal Investigative Service Special Agent in Charge John F. Khin. “These defendants selfishly put greed and personal gain before the safety and well-being of our military members, their families, and retirees, who deserve the best medical care available."
“Having the support and cooperation of our partner local, state and federal agencies is critical in our combined efforts to protect Tennesseans from individuals attempting to derive a personal benefit at the expense of patients and taxpayers,” said TBI Director Mark Gwyn.
According to the indictment, from June 2011 to June 2017, Montgomery paid Davis, approximately 60 per cent of the Medicare proceeds, as kickbacks, in exchange for Davis directing CPS employees and providers to send Medicare DME orders and referrals to Montgomery’s CCC Medical. It is alleged that Montgomery and Davis used a nominee and filed false tax documents to disguise the kickbacks.
Beginning in or around May 2015, according to the indictment, Davis and Montgomery renegotiated their illegal agreement to further obscure their personal contract from Medicare and from CPS owners and employees. The indictment alleges that from approximately May 2015 until approximately November 2015, Montgomery agreed to pay Davis $200,000 for the sham purchase of a shell entity known as ProMed Solutions LLC (ProMed). Davis and Montgomery renegotiated the sham transaction after Montgomery complained that her referrals from CPS had been lower than expected, and Montgomery ultimately paid $150,000 for the shell, ProMed, according to allegations in the indictment. The true purpose of this payment was to induce Davis to continue driving CPS referrals to CCC Medical, the indictment alleges.
The indictment alleges that Montgomery, through CCC Medical, submitted over $4.6 million in fraudulent claims to Medicare, and that Medicare paid a total of $2.6 million on those claims. Further, the indictment alleges that Montgomery paid more than $770,000 in illegal kickbacks to Davis.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by HHS-OIG, DCIS and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. Assistant U.S. Attorney Ryan Raybould of the Middle District of Tennessee and Trial Attorney Anthony Burba of the Criminal Division’s Fraud Section and are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws throughout the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have collectively billed the Medicare program for over $12.5 billion.
Two Jamestown Men Arrested on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Tyler Craig Anderson, 27, and Robert Lincoln, 26, both of Jamestown, NY, were arrested and charged by criminal complaint with conspiracy to make false statements to purchase firearms, which carries a mandatory penalty of five years in prison. In addition, Anderson is charged with possession with intent to distribute cocaine, and possession of a firearm in furtherance of drug trafficking crimes which are punishable by a mandatory minimum five years in prison and a maximum of life in prison.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that according to the complaint, the Ellicott Police Department received complaints from area residents regarding suspected drug dealing at Anderson’s residence. According to residents, there were frequent and short visits by a number of people driving a variety of vehicles. As a result, law enforcement officers conducted controlled purchases of cocaine from Anderson at his residence on Willard Street Extension. Law enforcement officers learned during those controlled drug sales that Anderson had a number of firearms at his residence.
On March 9, 2018, law enforcement officers executed a search warrant at Anderson’s residence and recovered cocaine, marijuana, drug paraphernalia, 14 firearms, and ammunition. The defendant was taken into custody at the scene.
Subsequent investigation determined that at least three of the firearms were purchased by defendant Lincoln at a sporting goods store in Russell, Pennsylvania. According to the complaint, Lincoln completed the required federal forms stating that he was the purchaser of the firearms, but shortly thereafter, he turned the firearms over to Anderson.
Law enforcement officers reviewed a Facebook page believed to be operated by defendant Anderson. One post read, "I gotta bout 30 guns and I love em all the same bang bang 'merica." Another Facebook user commented, "And get them all taken the same when they say you can't have them anymore." Anderson responded, "They' re gonna have to kill me mane [sic]."
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Kevin P. Lyons, the Jamestown Police Department, under the direction of Chief Harry Snellings, and the Ellicott Police Department, under the direction of Chief William L. Ohnmeiss, Jr.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Two Associates of La Cosa Nostra Sentenced to Prison for Extortion-Related ChargesRead the Press Release
BOSTON – Two associates of the Genovese La Cosa Nostra (LCN) crime family were sentenced today in federal court in Worcester on extortion-related charges.
Ralph Santaniello, 50, and Giovanni Calabrese, 54, both of Longmeadow, were sentenced by U.S. District Court Judge Timothy S. Hillman to five years in prison and two years of supervised release, and three years in prison and two years of supervised release, respectively. In November 2017, Santaniello and Calabrese each pleaded guilty to one count of conspiracy to interfere with commerce by threats or violence; one count of interference with commerce by threats or violence – aiding and abetting; one count of conspiracy to use extortionate means to collect extensions of credit; and one count of using extortionate means to collect extensions of credit – aiding and abetting. Santaniello and Calabrese were arrested and charged in August 2016 along with three other associates, Gerald Daniele, 52, of Longmeadow; Francesco Depergola, 62, of Springfield; and Richard Valentini, 51, of East Longmeadow.
According to plea documents and evidence presented in court, Santaniello, Calabrese, and their co-defendants, were associates of the New York-based Genovese LCN crime family and engaged in various criminal activities in Springfield, Mass., including loansharking and extortion from legitimate and illegitimate businesses, such as illegal gambling businesses and the collection of unlawful debts. The defendants used violence, exploited their relationship with LCN, and implied threats of murder and physical violence to instill fear in their victims.
In 2013, Santaniello, Calabrese, Depergola and Valentini attempted to extort money from a Springfield businessman. Santaniello assaulted the businessman, and Santaniello and Calabrese threatened to cut off the man’s head and bury his body if he did not comply. Over a period of two months, the businessman paid $20,000 to Santaniello, Calabrese, Depergola and Valentini to protect himself and his business.
In addition, during a six-month period in 2015, Daniele extended two extortionate and usurious loans to an individual, and then, along with Santaniello and Calabrese, threatened the individual if he did not make payments on the loans.
In March 2018, Daniele was sentenced to two years in prison. In December 2017, Depergola pleaded guilty and Valentini was convicted by a federal jury; they are both scheduled to be sentenced on May 11, 2018.
United States Attorney Andrew E. Lelling; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Hampden County District Attorney Anthony Gulluni; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Kevin O’Regan, Chief of Lelling’s Springfield Branch Office; Assistant U.S. Attorney Katharine Wagner of Lelling’s Springfield Branch Office; and Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section are prosecuting the cases.
Two Associates of La Cosa Nostra Sentenced to Prison for Extortion-Related ChargesRead the Press Release
Two associates of the Genovese La Cosa Nostra (LCN) crime family were sentenced today in federal court in Worcester, Massachusetts on extortion-related charges.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Andrew E. Lelling for the District of Massachusetts, Special Agent in Charge Harold H. Shaw of the FBI Boston Field Division, Hampden County District Attorney Anthony Gulluni and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement.
Ralph Santaniello, 50, and Giovanni Calabrese, 54, both of Longmeadow, Massachusetts, were sentenced by U.S. District Court Judge Timothy S. Hillman to serve 60 months in prison and 36 months in prison, respectively. Following their prison sentences, they were both ordered to serve two years of supervised release. In November 2017, Santaniello and Calabrese each pleaded guilty to one count of conspiracy to interfere with commerce by threats or violence; one count of interference with commerce by threats or violence – aiding and abetting; one count of conspiracy to use extortionate means to collect extensions of credit; and one count of using extortionate means to collect extensions of credit – aiding and abetting. Santaniello and Calabrese were arrested and charged in August 2016 along with three other associates, Gerald Daniele, 52, of Longmeadow; Francesco Depergola, 62, of Springfield, Massachusetts; and Richard Valentini, 51, of East Longmeadow, Massachusetts.
According to plea documents and evidence presented in court, Santaniello, Calabrese, and their co-defendants, were associates of the New York-based Genovese LCN crime family and engaged in various criminal activities in Springfield, Massachusetts, including loansharking and extortion from legitimate and illegitimate businesses, such as illegal gambling businesses and the collection of unlawful debts. The defendants used violence, exploited their relationship with LCN, and implied threats of murder and physical violence to instill fear in their victims.
In 2013, Santaniello, Calabrese, Depergola and Valentini attempted to extort money from a Springfield businessman. Santaniello assaulted the businessman, and Santaniello and Calabrese threatened to cut off the man’s head and bury his body if he did not comply. Over a period of two months, the businessman paid $20,000 to Santaniello, Calabrese, Depergola and Valentini to protect himself and his business.
In addition, during a six-month period in 2015, Daniele extended two extortionate and usurious loans to an individual, and then, along with Santaniello and Calabrese, threatened the individual if he did not make payments on the loans.
In March 2018, Daniele was sentenced to two years in prison. In December 2017, Depergola pleaded guilty and Valentini was convicted by a federal jury; they are both scheduled to be sentenced on May 11.
Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section, Assistant U.S. Attorney Kevin O’Regan, Chief of Lelling’s Springfield Branch Office and Assistant U.S. Attorney Katharine Wagner of Lelling’s Springfield Branch Office are prosecuting the cases.Truck Driver Sentenced for Alien Smuggling Resulting in DeathRead the Press Release
CORPUS CHRISTI, Texas – A 45-year-old Weslaco man has been ordered to federal prison following his conviction of human smuggling which resulted in the death of an undocumented alien trapped inside a toolbox, announced U.S. Attorney Ryan K. Patrick.
Juan Enrique Escobedo-Moreno pleaded guilty Jan. 5, 2018, admitting he smuggled the victim in his tractor trailer. The victim died after being trapped in a toolbox measuring only 30 inches long, 26 inches wide and 16 inches deep.
Today, U.S. District Judge Janis Graham Jack handed Escobedo-Moreno a 210-month sentence to be immediately followed by three years of supervised release. At the hearing, additional evidence was presented detailing the defendant’s previous alien smuggling apprehensions and describing the egregious conditions under which Escobedo-Moreno transported the aliens in this case leading to the death of one of the aliens. In handing down the sentence of more than 17 years, the court noted Escobedo-Moreno exhibited “a complete disregard for human life."
According to the facts presented to the court at the time of the plea, Escobedo-Moreno drove his 2002 Kenworth tractor-trailer into the primary inspection area of the Falfurrias Border Patrol checkpoint shortly after midnight on Oct. 3, 2017. He claimed to be a hauling a load of watermelons from Edinburg to Houston and that no one else was with him. Upon inspection, authorities discovered one Mexican national hidden inside a small closet directly behind the driver’s seat. Escobedo-Moreno and that undocumented alien made no mention of anyone else in the vehicle.
Authorities later discovered the remains of an individual concealed in a tool compartment under the sleeper berth. When in the down position, the bed was secured with an exterior latch that would be inaccessible from inside the tool storage compartment under the bed and prevent anyone from freeing themselves. According to information presented in court, Escobedo-Moreno specifically instructed the victim to pull the bed down hard to make sure it would latch and stay closed.
Escobedo-Moreno remains in custody pending transfer to a Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Border Patrol conducted the investigation with the assistance of the Brooks County Sheriff’s Office. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Three People Charged with Sex Trafficking of A ChildRead the Press Release
NEWARK, N.J. – Two individuals who allegedly forced a child into commercial sex acts at multiple hotels throughout Middlesex, Bergen, and Essex counties, will appear in court today with one of their customers to face federal sex trafficking charges, U.S. Attorney Craig Carpenito announced.
Richard Ortiz, 22, and Gabriella Colon, 18, both of Bronx, New York, are charged by complaint with two counts of sex trafficking of a child and one count of transporting a minor in interstate commerce for the purpose of prostitution. Aryeh Goodman, 35, of East Brunswick, New Jersey, is charged in a separate complaint with one count of sex trafficking of a child.
All three defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court. Ortiz, Colon, and Goodman were originally arrested on related state charges in February 2018.
According to the complaints:
From January 2018 through February 2, 2018 Ortiz and Colon forced a child identified in the complaint as “Victim-1” to engage in commercial sex acts with various individuals at multiple hotels scattered throughout Middlesex, Bergen, and Essex counties.
In January 2018, Colon used her friendship with Victim-1 to convince Victim-1 to visit Colon in New York. After Victim-1 arrived in New York, Victim-1 learned that Colon was prostituting herself to support herself and her boyfriend, Ortiz.
Shortly thereafter, Colon and Ortiz transported Victim-1 to a hotel in New Jersey, where they allegedly took sexually explicit photographs of Victim-1. Colon and Ortiz then posted those images and advertised the sexual services of Victim-1 on Backpage.com.
When customers responded to the online advertisements, Colon or Ortiz would set up “dates” with Victim-1, where they allegedly forced Victim-1 to engage in commercial sex acts with those customers. Colon or Ortiz collected all of the proceeds and purchased a Jaguar, which they then used to transport Victim-1 between New York and New Jersey to engage in additional sex acts.
Goodman, a registered sex offender, was one of the individuals who responded to the advertisements that Colon and Ortiz posted. After Goodman allegedly had sex with Victim-1, Goodman offered to pay for additional time with Victim-1 and later invited Victim-1 to travel to New York to meet him.
The sex trafficking charge carries a mandatory minimum penalty of 10 years in prison and a maximum term of life imprisonment. The conspiracy to transport a minor to engage in prostitution charge is punishable by a maximum potential penalty of life imprisonment. Both charges carry a potential $250,000 fine.The charges and allegations in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney and the District of New Jersey Human Trafficking Coordinator Meredith Williams of the U.S. Attorney’s Office OCDETF/Narcotics Unit in Newark.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Andrew C. Carey, and the East Brunswick Police Department, under the direction of Chief James Conroy, with the investigation.
Three Individuals Indicted for Bribing Naval Employee to Allow Them to Make Unauthorized Liquor PurchasesRead the Press Release
Three New York residents were indicted today in two separate indictments for providing cash bribes to an employee of the U.S. Department of the Navy to make unauthorized liquor purchases at a Navy Exchange (NEX), announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.
Adam Agaev, 43, and David Manasherov, 37, both of Brooklyn, New York, were charged together in a nine-count indictment, and Edwin D. Fragoso, 44, of Freeport, New York, was charged in a six-count indictment, all in the Eastern District of New York. Agaev and Manasherov allegedly purchased liquor worth over $5 million, and Fragoso purchased over $1.3 million of liquor, over the course of the scheme. In addition to bribery, the defendants were also charged with conspiracy to defraud the United States, wire fraud, and honest services fraud. Manasherov was charged with tampering with an official proceeding and destruction of evidence subject to a federal search warrant. Fragoso was charged with making false statements to law enforcement agents.
Eric J. Jex, 29, of Uniondale, New York, an employee of the U.S. Department of the Navy who received the bribes, previously pleaded guilty to one count of bribery before U.S. District Judge Joanna Seybert of the Eastern District of New York and is scheduled to be sentenced on May 11.
According to admissions made in connection with Jex’s guilty plea, as a supervisory sales associate at the NEX at Mitchel Field in Garden City, New York, Jex was responsible for preparing and processing retail transactions, and he had direct authority to make decisions concerning large liquor orders and shipments from the NEX’s warehouse in Suffolk, Virginia. He was also subject to policies limiting access to the NEX’s goods to authorized personnel, such as Navy service members, and requiring NEX employees to check purchasers’ IDs.
According to the allegations in the indictments filed today, from approximately Nov. 13, 2015, through Dec. 13, 2016, Jex agreed with Agaev, Manasherov and Fragoso to arrange repeated large purchases of liquor from the NEX. Jex allowed these three unauthorized purchasers to buy NEX liquor at significant discounts. According to his plea agreement, Jex admitted that, in exchange, he accepted more than $250,000 in cash bribes, typically $5 to $20 per case of liquor.
In doing so, the indictments allege that Agaev, Manasherov and Fragoso caused interstate wires to be sent from New York to Virginia, deprived New York State of excise taxes and resold the liquor purchased from the NEX for profit.
The Naval Criminal Investigative Service (NCIS), Alcohol and Tobacco Tax and Trade Bureau (TTB), and New York State Department of Taxation and Finance, Criminal Investigations Division investigated the case. Trial Attorneys Luke Cass and Andrew Laing of the Criminal Division’s Public Integrity Section are prosecuting the case with the assistance of the U.S. Attorney’s Office for the Eastern District of New York.Tax Crime Does Not PayRead the Press Release
It’s that time of year again: tax season. The Justice Department would like to remind the public during this time of year that evading your tax obligations could end badly, with substantial fines and penalties, and even long prison sentences. Taxpayers are also reminded to be on the lookout for unscrupulous tax return preparers, who seek to inflate refunds by falsifying deductions, among other 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, and that individual may still be responsible for any unpaid taxes, interest, and fines resulting from these crimes.
“Tax returns are signed under the penalties of perjury, and every taxpayer is ultimately responsible for the contents of his or her own return,” cautioned Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. “While the vast majority of Americans truthfully report and pay their taxes, unfortunately there are those who seek to cheat the system and take a free ride on the backs of the hard working men and women of this country. The Justice Department is committed to bringing tax evaders and those who falsely prepare tax returns to justice.”
Over the past year, federal prosecutors for the Tax Division and U.S. Attorney’s offices across the country have worked tirelessly with special agents of Internal Revenue Service Criminal Investigation and other law enforcements agencies to investigate and prosecute those who illegally evade their taxes. These enforcement efforts continue year round.
Recent Tax Evasion Prosecutions of Individuals
- In July 2017, a Watertown, New York, restaurateur was sentenced to 150 months in prison for tax evasion and investment fraud. He engaged in a scheme to evade more than $4 million in taxes and obstruct the IRS.
- In October 2017, a Grand Junction, Colorado, business owner was sentenced to 88 months in prison for tax evasion and failing to file corporate and individual tax returns. He had not filed a personal tax return since 1992 and had not paid individual income taxes since 1993.
- In January 2017, a St. Louis, Missouri, tax return preparation business owner was sentenced to 27 months in prison for tax evasion. He underreported his businesses’ gross receipts by over $1.5 million and evaded over $580,000 in tax.
- In August 2017, a south Florida salesman was sentenced to 12 months and one day in prison for tax evasion. From 2002 to 2015, he earned over $1.5 million in income selling hurricane resistant windows and evaded paying over $350,000 in taxes. Except for the 2007 tax year, he had not filed an income tax return since 2002.
Recent Employment Tax Prosecutions
- In March 2018, the owners of a Memphis, Tennessee, staffing company, who were husband and wife, were sent to jail for failing to pay over payroll taxes and filing false tax documents. The husband was sentenced to 75 months in prison and his wife was sentenced to one year in prison. They failed to pay over $2.8 million in withholdings and other employment taxes to the IRS and filed false employment tax returns.
- In October 2017, the owner of a Las Vegas, Nevada, strip club was sentenced to 24 months for evading employment taxes. The former owner of The Crazy Horse Too evaded paying more than $1.7 million in employment taxes.
- In July 2017, a Potomac, Maryland, doctor and entrepreneur was sentenced to 119 months and 29 days in prison for defrauding his former company’s shareholders and for failing to pay more than $7.5 million in employment taxes.
Recent Prosecutions Involving Offshore Bank Accounts
- In October 2017, two Tampa, Florida, business executives were sentenced to prison for 54 months and 72 months respectively for their roles in a conspiracy to defraud the United States using an offshore tax shelter scheme. They conspired to create and promote a sham offshore tax shelter strategy marketed to clients.
- In July 2017, a Fort Myers, Florida, businessman was sentenced to 57 months in prison for conspiring with investment advisors to hide money in offshore bank accounts. He used secret numbered bank accounts and foreign shell companies to hide millions of dollars in order to evade more than $728,000 in U.S. taxes.
- In October 2017, a Greenwich, Connecticut, resident pleaded guilty to failing to report to the Department of Treasury funds he maintained in foreign bank accounts. He opened accounts at several banks, including Credit Suisse, UBS, Bank Leu, Clariden Leu, and Bank Hofmann. In 2004, the value of his foreign accounts exceeded $28 million. For over a decade, he filed false tax returns, on which he failed to report income from his foreign accounts.
Recent Prosecutions of Attempts to Obstruct the IRS
- In July 2017, a Loveland, Colorado, businessman and delicatessen owner was sentenced to 24 months in prison for conspiring to file fraudulent claims for tax refunds. He conspired with his return preparer to file three tax returns that claimed more than $1 million in bogus refunds, of which the IRS paid $350,765. He spent the funds on precious metals and coins, a truck, jewelry, luxury travel, and sporting equipment.
- In November 2017, a Greensboro, North Carolina, resident was sentenced to 37 months in prison for corruptly endeavoring to obstruct the IRS. He filed several fraudulent tax returns with the IRS that included fake income and withholdings, which claimed over $750,000 in fraudulent refunds. He also filed documents with the Guilford County Register of Deeds purporting to renounce his United States citizenship and proclaiming to be a sovereign citizen.
- In October 2017, a Boynton Beach, Florida, resident was sentenced to 30 months in prison for obstructing the IRS. He filed fraudulent personal tax returns with the IRS that sought more than $5.6 million in fraudulent refunds, of which the IRS paid more than $485,000. He used the funds to purchase a house and multiple vehicles, including a Jaguar and Mercedes Benz.
More information about the Tax Division’s enforcement efforts in these and other areas can be found on the division’s website. The IRS website also has information about how you can blow the whistle on people who fail to pay the tax that they owe.
Southern California Federal Court Shuts Down Tax Return PreparerRead the Press Release
A federal court in San Diego has permanently barred Melissa Lang (formerly known as Melissa Ann Vega) from preparing federal tax returns for others, the Justice Department announced today. In its complaint, the government alleged that Melissa Lang operated tax return preparation businesses called “L&T Works” and “Lang Works, LLC” and fraudulently reduced her customers’ tax liabilities by improperly claiming a variety of deductions and education tax credits. Specifically, the government’s complaint alleged that Lang, of San Diego, California, caused to be filed returns that claimed fraudulent refunds of more than $9,000,000, which included approximately $7,020,020 in false education credits. The complaint alleges that Lang filed, or caused to be filed though her associates and employees, approximately 4,194 false returns.
Lang agreed to the civil injunction order entered against her, which requires her to turn over to the United States a list of all principals, managers, employees, and independent contractors for Ms. Lang’s tax preparation businesses. Lang has already pleaded guilty to conspiracy to file false, fictitious, and fraudulent claims, tax evasion, and aggravated identity theft.
The IRS has a list of steps on their website that you can take now in anticipation of filing your 2017 federal income tax return and ten tips for choosing a tax preparer. Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2018 and taxpayers seeking a return preparer should remain vigilant. The IRS has some information on their website about selecting a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Scranton Men Plead Guilty to Armed Robberies of Two Gas StationsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Durrell Davenport, age 27, and Amod Phillips, age 28, both of Scranton, Pennsylvania, pleaded guilty on April 9, 2018, before United States District Court Judge Malachy E. Mannion, to federal robbery charges filed in connection with the armed robbery of the EFuel gas station and food mart located on Pittston Avenue in Scranton.
According to United States Attorney David J. Freed, Davenport and Phillips admitted to the charge of brandishing firearms in furtherance of a crime of violence, filed in connection with the robbery of the EFuel gas station on June 8, 2017. Approximately $266 and several packs of cigarettes were taken in the robbery. Davenport also pleaded guilty to the charge of interference with commerce by robbery, stemming from a separate armed robbery of the Sunoco gas station and convenience store on South Main Avenue in Scranton, which occurred on June 20, 2017. Davenport stole $386 and several packs of cigarettes in that robbery. Davenport and Phillips were indicted by a grand jury in November 2017.
Judge Mannion ordered a presentence investigation be completed. Sentencing will be scheduled at a later date.
The investigation was conducted by the Scranton Police Department, the Bureau of Alcohol, Tobacco and Firearms, and the Federal Bureau of Investigation. Assistant United States Attorney Robert J. O’Hara 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.
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 for the robbery charges under federal law is 20 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. The charge of brandishing a firearm in furtherance of a crime of violence carries a mandatory minimum sentence of seven years’ imprisonment, consecutive to any other sentence. 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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San Francisco Civic Center Heroin Trafficker Sentenced to More Than Five Years in PrisonRead the Press Release
SAN FRANCISCO – Marvin Gustavo Benegas-Castro was sentenced today to 62 months in prison for possessing with the intent to distribute heroin announced Acting United States Attorney Alex G. Tse and Drug Enforcement Administration (DEA) Special Agent in Charge John J. Martin. The sentence was handed down by the Honorable William H. Alsup, U.S. District Judge, following the entry of Benegas-Castro’s guilty plea to the charges on January 23, 2018.
The San Francisco Police Department (SFPD) began its investigation into Benegas-Castro, 32, a Honduran national residing in Oakland, after seeing what they believed was Benegas-Castro selling heroin in San Francisco’s Civic Center Plaza. According to his plea agreement, Benegas Castro admitted that on August 31, 2017, he was arrested by SFPD officers for possessing with the intent to distribute illegal drugs. Specifically, Benegas-Castro admitted he was carrying baggies and bindles of heroin weighing over 35 grams and an additional 15 baggies of methamphetamine weighing over 9 grams. At Benegas-Castro’s apartment, officers found baggies and bindles of heroin weighing over 471 grams, $3,572 in cash, a digital scale, plastic baggies, more methamphetamine, and cocaine. Benegas-Castro admitted that on the day of his arrest, he knowingly possessed with the intent to distribute more than 100 grams of heroin.
On November 14, 2017, a federal grand jury indicted Benegas-Castro charging him with one count of distribution and possession with intent to distribute heroin, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C); one count of possession with intent to distribute heroin, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(i); and one count of possession with intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C). Pursuant to his guilty plea, Benegas-Castro pleaded guilty to the second heroin charge; the remaining charges were dismissed.
In addition to the prison term, Judge Alsup ordered Benegas-Castro to serve a five-year period of supervised release. Benegas-Castro is currently in custody and will begin serving his sentence immediately.
Special Assistant U.S. Attorney Christopher Vieira is prosecuting the case with the assistance of Kimberly Richardson. The prosecution is the result of an investigation by the DEA and the San Francisco Police Department.
Real Estate Developer Sentenced to 85 Months in Prison for Defrauding Investors and Lenders out of MillionsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOHN DiMENNA, 75, of Vero Beach, Florida, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 85 months of imprisonment, followed by three years of supervised release, for operating an extensive real estate investment and financing scheme.
According to court documents and statements made in court, DiMENNA worked in the commercial real estate industry, arranging for the purchase and development of large commercial real estate projects in Fairfield County, including hotels or multi-tenant properties with hundreds of apartments. DiMENNA and his business partners operated through various entities including Seaboard Realty LLC, Seaboard Stamford Investment Group (SSIG), and Seaboard Properties Group LLC. To raise capital for real estate projects, DiMENNA and his partners sold membership interests to outside investors in each LLC that owned or was to purchase a designated commercial property. DiMENNA also sold interests to investors in other LLCs that did not own specific properties but were to have some involvement in certain projects. Various financial institutions and other entities provided millions of dollars in financing to purchase, renovate or construct DiMENNA’s commercial real estate projects. DiMENNA oversaw each project, including each entity’s profitability, its cash flow, operating cash needs and any additional funds needed for repairs or renovations.
Between approximately 2010 and March 2016, DiMENNA engaged in a scheme to defraud investors and financial institutions. Knowing that certain of his properties were not cash positive, and without disclosing this fact to investors and lenders, DiMENNA used funds from separate cash-positive entities to support capital improvements, construction, and operating expenditures in other LLCs that needed the cash. In addition, DiMENNA used funds from cash positive entities to continue to make required interest and preferred returns to investors of any entity that he managed, regardless of the true available cash that an entity might have to fund such payments.
As part of the scheme, DiMENNA prepared spreadsheets that inflated the projected cash flows of certain projects, and then shared the spreadsheets with his business partners knowing that they would be marketing the ventures to potential investors. DiMENNA also provided his business partners with false sales contracts, false lease commitments and other false documents concerning the status and prospect of the various real estate investments.
DiMENNA provided existing investors inaccurate financial information in order to induce investors not to withdraw an investment, and he provided prospective investors with false information about a project’s financial viability to induce them to invest. DiMENNA frequently received a template from his accounting manager that set forth actual financial figures relating to a property, and then changed the numbers to make the figures appear stronger. In certain instances, DiMENNA simply created his own template with his own false figures and then provided the summaries to current and potential investors.
DiMENNA also sold investors equity in certain entities at a time when he knew the entities were fully subscribed and thus not eligible for receiving investment monies.
During the scheme, DiMENNA provided lenders and appraisers with inaccurate financial data concerning the various real estate properties and other entities used to collateralize various loans, including providing lenders with overstated income figures, understated expense figures, false personal financial statements, false bank statements, and false tax returns relating to the properties. He also failed to disclose to potential lenders intercompany debt obligations and all unrecorded liens on particular properties, and he created false releases of liens and UCC filing documents.
DiMENNA often sought financing from various lenders without informing existing lenders of prior loans secured by the property at issue, entered loan agreements with lenders without recording such agreements, and forged the names of his two business partners on various documents without their knowledge to secure financing. At times, DiMENNA entered into financing agreements with lenders without the knowledge, consent or authorization of his two business partners.
Through this scheme, victim investors lost approximately $28 million and victim lenders lost approximately $37 million, for a total combined loss of $64.7 million.
On September 11, 2017, DiMENNA pleaded guilty to two counts of wire fraud.
DiMENNA, who is released on a $250,000 bond, was ordered to report to prison on July 9, 2018.
This matter was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Christopher A. Schmeisser.
Prolific Marijuana Smuggler Sentenced to Six More Years in Prison for Attempting to Buy A Reduction in SentenceRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Joe Harry Pegg (70, Ft. Lauderdale) to six years in federal prison for conspiracy to obstruct justice, obstruction of justice, and lying to federal law enforcement officers. The court ordered him to serve this sentence consecutive to his current 30-year term of incarceration that is set to expire in 2020. Pegg was found guilty on August 17, 2017, following a jury trial.
According to court documents and evidence presented at trial, during the 1980s and 1990s in south Florida, Pegg was a significant drug trafficker who made millions of dollars by importing and distributing marijuana. In 1982, he was convicted in the Eastern District of Louisiana for conspiring to import and distribute nearly 650,000 pounds of marijuana. By the early 1990s, Pegg was the head of a marijuana shipping organization that used go-fast boats to transport large quantities of marijuana from the Caribbean to the Dry Tortugas, off the coast of Florida. In 1994, Pegg was arrested by federal agents after one of his vessels was intercepted off the coast of Fort Myers with approximately 10,000 pounds of marijuana onboard. He was subsequently convicted for a marijuana importation conspiracy and was sentenced in 1996 to 30 years in federal prison.
In 2008, while incarcerated at the Coleman Federal Correctional Complex, Pegg and his cellmate, Isidro Moreno, devised a scheme to defraud the United States by attempting to secure Pegg’s early release from prison using “third-party cooperation.” In some instances, an individual can stand in for a cooperating defendant and provide assistance to law enforcement and ultimately reduce the defendant’s original sentence. Pegg and Moreno knew, however, that third-party cooperators couldn’t be paid by anyone, including Pegg or anyone acting on his behalf.
After Moreno was released from prison, he enlisted Fernando Morales to act as a third-party cooperator on Pegg’s behalf, whereby Morales agreed to work with law enforcement to set up drug deals that would be credited to Pegg to try and reduce his sentence. Morales agreed to be the third-party cooperator, but he also wanted compensation for his efforts. Pegg, Moreno, and other conspirators agreed to pay Morales $60,000, and to conceal the payments from federal authorities.
After an arrest was made as a result of Morales’s cooperation, authorities learned that Pegg, through his family members, had made large cash payments to Moreno and Morales. Once Pegg learned that the government was investigating his conduct, he directed Moreno and others conspirators to lie to investigators and to conceal the payments from government officials.
In addition to Pegg, two former federal agents were convicted for their involvement in this scheme. Former DEA agent Samuel Murad, the case agent who originally investigated Pegg’s marijuana trafficking case, pleaded guilty to tax evasion and witness tampering and received a year in prison for failing to report hundreds of thousands of dollars received from the Pegg family, and for obstructing the FBI’s investigation. Former DEA agent Robert Quinn was sentenced to three years’ probation for lying to federal agents. Isidro Moreno and Fernando Morales were also convicted of conspiracy to obstruct justice and lying to federal authorities, respectively.
These cases were investigated by the Federal Bureau of Investigation and were prosecuted by Assistant United States Attorneys Simon A. Gaugush, Josephine W. Thomas, and Anita M. Cream.
Previously Convicted Physician Arrested for Fraud and Aggravated Identity TheftRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that SPYROS PANOS, a former orthopedic surgeon, who was previously convicted of health care fraud, was charged with wire fraud, health care fraud, and aggravated identity theft, in connection with a scheme in which he assumed the identity of a licensed orthopedic surgeon and obtained over $860,000 in payments for reviewing patient files in Workers Compensation cases. PANOS was arrested this morning at his home in Hopewell Junction, New York, and was presented before U.S. Magistrate Judge Paul E. Davison in White Plains federal court this morning.
According to the allegations contained in the Complaint unsealed today[1]:
SPYROS PANOS, the defendant, was an orthopedic surgeon practicing in Dutchess County and residing in Hopewell Junction (the “PANOS Residence”). In or about August 2013, PANOS surrendered his license to practice medicine, and on or about October 31, 2013, he pled guilty, in United States District Court for the Southern District of New York, to a health care fraud charge (the “Health Care Fraud Charge”). In or about April 2014, PANOS began serving a 54-month sentence. On or about September 16, 2016, PANOS was released to a halfway house and then, about a month later, to home confinement. Since March 2017, he has been serving a two-year term of supervised release.
In connection with medical treatment relating to Workers’ Compensation claims, a peer review may be conducted when a treating physician requests a variance in treatment. The doctor performing the peer review is a licensed independent doctor who reviews the patient file but does not examine the patient, and writes a report opining whether the variance is appropriate. There are companies that supply doctors who conduct such peer reviews. Prior to being assigned to perform peer reviews, the doctor must establish that he/she has the proper credentials by providing, among other things: the schools from which the doctor earned his/her degrees and other educational credentials, the states in which he/she is licensed to practice medicine, and other pedigree and background information such as birth date and social security number.
In or about December 2013 (which was after PANOS pled guilty on October 31, 2013, and before he surrendered to serve his sentence on April 2, 2014) a company called Excel O LLC (hereafter “Excel O”) was formed. The registered agent for Excel O is a family member of PANOS and is not a licensed physician (“Family Member-1”).
An orthopedic surgeon purporting to be practicing medicine at “Excel Orthopedics” (the “Excel Doctor”) performed peer reviews for several review companies. The same credentialing information for the Excel Doctor was submitted to five of the Review Companies (the “Five Review Companies”), and they paid for the Excel Doctor’s peer review services by checks made out to Excel O LLC or Excel Orthopedics. The Excel Doctor communicated with them using the same email address (the “Email Account”) that is subscribed to by the Excel Doctor and was created on or about September 13, 2013, approximately one month before SPYROS PANOS, the defendant, pled guilty to the Health Care Fraud Charge. Thereafter, PANOS communicated with at least two of the companies by email and logging on to the companies’ secure servers through an IP address assigned to PANOS’s residence.
On or about December 21, 2013, approximately six months before PANOS surrendered to serve his prison sentence, an account in the name of Excel O was opened at a local credit union (“Excel O Account-1”). Family Member-1 is the only name associated with the account. Between the time Excel O Account-1 was opened until about three months after PANOS surrendered to serve his sentence for the Health Care Fraud Charge, checks totaling over $239,000, issued by one of the above review companies, as well as a sixth review company, made out to Excel O LLC or Excel Orthopedics, were deposited into Excel O Account-1. No further checks from peer review companies were deposited into Excel O Account-1.
On or about December 2, 2016, approximately two months after PANOS was released from prison, a second Excel O account was opened at the same credit union (“Excel O Account-2”) and, again, Family Member-1 is the only name associated with the account. Between in or about December 2016 and in or about October 2017, over $636,500 in checks issued by the Five Review Companies, made out to Excel O LLC or Excel Orthopedics, were deposited into Excel O Account-2.
After the Review Companies’ checks were deposited into these accounts, money was removed through withdrawals of cash or checks that were made out to Family Member-1, drawn on the accounts, and then deposited into a third account (the “Family Account”). The Family Account is in the name of Family Member-1 and two other members of PANOS’s family, neither of whom is a licensed physician. From the Family Account, some money was withdrawn and over $100,000 was transferred to bank accounts in Hong Kong. A member of PANOS’s family deposited Review Company checks into Excel O Account-2, withdrew money from that account, and transferred money into the Family Account. And, on several occasions in September and October of 2017, PANOS and Family Member-1 went to the credit union and wire transferred money out of the Family Account.
The doctor whose credentialing information was submitted to the review companies and represented to be the Excel Doctor’s credentials (“Doctor-1”) is a licensed physician who is an orthopedic surgeon employed by a practice in Westchester County, not Excel Orthopedics. Doctor-1 did not submit his/her credentialing information to the review companies referred to above, did not conduct any peer reviews, did not authorize PANOS or anyone else to use his/her credentialing information to conduct peer reviews, and did not receive any of the review company fees for services he/she was falsely represented to have performed.
* * *
PANOS, 49, is charged in three counts. The first count charges him with wire fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The second count charges him with health care fraud, which carries a maximum sentence of 10 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The third count charges him with aggravated identity theft, which requires a two year prison term to be served consecutive to a sentence imposed for the wire and health care fraud charges. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the U.S. Postal Inspection Service, the Office of the Inspector General of the U.S. Department of Health and Human Services, and the New York Inspector General for their assistance.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Margery B. Feinzig and Kathryn Martin are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Press Conference at United States Attorney’s OfficeRead the Press Release
The United States Attorney and Law Enforcement Officials will host a press conference on Tuesday, April 3, 2018, at 2:00 p.m. CDT, regarding an Organized Crime and Drug Enforcement Task Force investigation.
WHO: United States Attorney Trent Shores
Tulsa Police Department Chief Chuck Jordan
Drug Enforcement Agency Resident Agent in Charge Dave King
Internal Revenue Service Assistant Special Agent in Charge Keven Caramucci
WHAT: Press Conference regarding a significant marijuana seizure and resulting charges stemming from a United States Attorney’s Office led investigation involving the Organized Crime and Drug Enforcement Task Force. US Attorney Shores and attending law enforcement officials will be available for individual interviews, as needed, following main press conference.
WHEN: 2:00 p.m. CDT, April 3, 2018.
WHERE: United States Attorney’s Office
David E. O’Meilia Conference Room
110 West Seventh Street, Suite 300
Tulsa, Oklahoma 74119
NOTE: Government issued photo I.D. necessary for admission to U.S. Attorney’s Office.
Pittsburgh Man Charged with March 2018 Robbery of Key Bank in DowntownRead the Press Release
PITTSBURGH, Pa. - One resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on a charge of Bank Robbery, United States Attorney Scott W. Brady announced today.
The one-count indictment named Jonathan Owens, age 55, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the indictment, on or about March 19, 2018, Owens robbed Key Bank, located at 300 6th Avenue, in downtown Pittsburgh. Key Bank is insured by the Federal Deposit Insurance Corporation.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the City of Pittsburgh Bureau of Police 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.
Philadelphia Woman Pleads Guilty to Defrauding Blind ManRead the Press Release
PHILADELPHIA – Tania Thompson-Rapley, 57, of Philadelphia, PA, pleaded guilty to stealing $50,000 from a legally blind Philadelphia homeowner. Thompson-Rapley falsely pretended to be a lawyer to help the victim pay the real estate taxes on his home. Thompson-Rapley then assisted the victim secure a bank loan for $50,000. However, rather than use that money to pay the victim’s real estate taxes, Thompson-Rapley used that money for her own personal expenses. Thompson-Rapley then sent forged documents to the victim and to the attorneys working for the City of Philadelphia which falsely reported that the taxes had been paid. Thompson-Rapley is scheduled to be sentenced on July 24, 2018 before the Honorable Mitchell S. Goldberg.
The case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Robert Livermore.
Orono Woman Sentenced to 5 Years Probation for Social Security FraudRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Amanda Harding a/k/a “Amanda Grass,” 33, of Orono, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to five years of probation for social security fraud. Harding was also ordered to pay $26,616 in restitution. Harding pleaded guilty on August 31, 2017.
According to court records, the defendant began receiving Supplemental Security Income (“SSI”) payments in 2006. SSI benefits are paid by the Social Security Administration (“SSA”) to disabled adults and children who have limited income and resources. The defendant was living in Maine when she first obtained SSI benefits. Between 2006 and 2016, the defendant was repeatedly informed that she needed to report any change of address to the SSA. On October 8, 2011, the defendant married a Canadian citizen, moved to New Brunswick, Canada, and applied for Canadian citizenship. She resided in Canada from October 2011 through February 2016. The defendant did not inform SSA of her change of address and illegally obtained over $26,000 in SSI benefits. During an interview with law enforcement agents, the defendant admitted that she understood if she told SSA that she moved to Canada her SSI benefits would be significantly reduced.
The case was investigated by SSA’s Office of Inspector General, U.S. Customs and Immigration Enforcement’s Homeland Security Investigations, and the Canadian Border Patrol.
Oakland Park Resident Sentenced to Federal Prison for Tax Preparation SchemeRead the Press Release
Weguel Legentus, 41, of Oakland Park, Florida, was sentenced yesterday to federal prison for conspiring with his wife and co-defendant, Chantale Baptiste, to defraud the Internal Revenue Service (IRS) with respect to claims, and filing false claims with the IRS.
Benjamin G. Greenberg, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Dana E. Watson, Chief, Margate Police Department; Scott Israel, Sheriff, Broward Sheriff’s Office (BSO); and Jimmy Patronis, Chief Financial Officer Florida Department of Financial Regulations (OFR), made the announcement.
At sentencing, United States District Judge Darrin P. Gayles sentenced to Legentus to 33 months in prison. Legentus will serve a three-year term of supervised release at the conclusion of his prison sentence.
According to publicly filed court documents, Legentus and his wife, co-defendant Chantale Baptiste, operated CMB Financial Group, Inc. (“CMB”), a tax preparation business, located primarily in Broward County. As tax preparers, Legentus and Baptiste would meet with their clients and prepare their clients’ tax returns. From at least as early as 2013 through 2016, Legentus and Baptiste prepared and filed false and fraudulent federal income tax returns on behalf of their clients. They did so by attaching to their clients’ tax returns false and fraudulent tax credit forms, and false and fraudulent IRS Schedule C forms reflecting profits or losses associated with businesses that their clients did not operate. These false and fraudulent credits and Schedule C profits or losses had the effect of increasing the refund owed by the IRS to the client. Legentus and Baptiste would then provide their clients with a copy of their prepared federal income tax return and represent that the information contained in the copy provided would be filed with the IRS on his clients’ behalf.
Baptiste and Legentus would then alter their clients’ tax returns without their clients’ knowledge and inflate the refund amount requested even further. Baptiste and Legentus would then file the false and fraudulent federal income tax returns with the inflated refund amount with the IRS. The IRS would then disburse the tax refunds to bank accounts controlled by Baptiste and Legentus, who would retain for their own use and benefit the amount of the inflated tax refund, as well as their fees. On occasion, Legentus and Baptiste would retain the entire tax refund amount for themselves. For example, one of their client’s refunds for approximately $12,000 was stolen in its entirety and deposited into an account controlled by Baptiste and Legentus. When clients would complain to Legentus and Baptiste, they would often be ignored, or lied to, about the status of their tax refund.
Legentus previously pled guilty to conspiracy to defraud the IRS with respect to claims, in violation of Title 18, United States Code, Section 286, and filing false claims with the IRS, in violation of Title 18, United States Code, Section 287. Baptiste is scheduled to be sentenced on May 31, 2018.
Mr. Greenberg commended the investigative efforts of IRS-CI, the Margate Police Department, BSO, and OFR. Mr. Greenberg also thanked the Ft. Lauderdale Police Department, the Coral Springs Police Department, and the Palm County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorneys J. Mackenzie Duane and Michael Berger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Norwalk Medical Practice, CEO and Physician Pay $650,830 to Settle False Claims Act AllegationsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that WORLD HEALTH CLINICIANS, INC. (“WHC”), its Chief Executive Officer, SCOTT GRETZ, and a physician formerly employed by WHC, DR. GARY BLICK, have entered into a civil settlement agreement with the federal and state governments in which they will pay $650,830 to resolve allegations that they violated the federal and state False Claims Acts.
WHC is a medical practice located in Norwalk specializing in the treatment of HIV/AIDS patients and sexually transmitted infections. GRETZ is the CEO of WHC. BLICK worked at WHC from the inception of the practice in 2011, until he left the practice in 2016. Prior to working at WHC, BLICK had his own medical practice specializing in the treatment of HIV/AIDS patients.
The government alleges that WHC, BLICK and GRETZ submitted false claims to the Medicare and Medicaid programs by billing for physical therapy services and certain office visit services that were not provided. Instead of receiving physical therapy or office visit services, Medicare and Medicaid patients seen at the practice received massages provided by a massage therapist. Those services were billed to Medicare and Medicaid as if the patients had, in fact, received physical therapy services and office visit services.
Medicare does not recognize massage therapists as providers and expressly prohibits massage therapists from enrolling in the Medicare program. Under Connecticut law, massage therapists may not provide physical therapy, as physical therapy is expressly excluded from a massage therapist’s scope of practice. In addition, a massage therapist is not qualified to provide office visit services.
To resolve the allegations under the federal and state False Claims Acts, WHC, BLICK and GRETZ have agreed to pay $650,830, which covers conduct occurring from January 1, 2007, through September 30, 2015. Pursuant to their agreement with the government, WHC and GRETZ will pay $361,013.77 and BLICK will pay $289,816.23.
“We expect that medical practices and physicians who participate in federal health care programs will bill for their services accurately and honestly,” said U.S. Attorney Durham. “The U.S. Attorney’s office in Connecticut is committed to vigorously pursuing health care providers who submit false claims to federal health care programs.”
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot and by Assistant Attorney General Gregory O’Connell of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
New York Man Charged with Calling in False Bomb Threat from Amtrak TrainRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that TODD J. MILLER, 36, of New York, N.Y., has been charged by federal criminal complaint with intentionally conveying to law enforcement false information about an explosive device on a train traveling to Connecticut.
MILLER was arrested last night at LaGuardia Airport in Queens, New York. He appeared today before U.S. District Judge Jeffrey A. Meyer in New Haven and was released on a $100,000 bond. The charge carries a maximum term of imprisonment of five years.
As alleged in the criminal complaint, on the evening of March 18, 2018, MILLER called a 911 dispatcher in New Jersey and reported that he was on Amtrak Train 2256 traveling from Washington, D.C., toward Penn Station in New York City, and that a female passenger “has a bomb in her bag.” MILLER described the woman as having brown hair and a scarf. By the time Amtrak investigators received notice of the call and were mobilized to stop and search the train, the train was in Connecticut. Amtrak officials stopped Train 2256 at Green’s Farms Station in Westport, where passengers were directed to detrain, and bomb squad members boarded and searched the train. No evidence of any explosive device or materials was detected.
The complaint alleges that an investigator contacted MILLER, who was in New York, by phone. On the call, MILLER said the woman, who he described this time as having red hair and a red scarf, was carrying a “black bag carry on suitcase with a handle.” He said she kept checking her bag without taking anything out; kept asking the First Class attendant what the next stop was, and seemed to want to get off the train and leave her bag behind. The officer detected slurring in MILLER’s voice and asked if he had consumed alcohol that day. MILLER replied that he had consumed “one glass of red wine.” Asked if he suffered from mental illness, MILLER replied “no, absolutely not. This is the first time I’ve ever made a call like this before. I am worried for everyone on that train. Someone has to check that lady out.”
The complaint further alleges that investigators determined that MILLER had actually been traveling on Amtrak Train 2258, not 2256. When Amtrak Train 2258 arrived into Green’s Farms Station shortly thereafter, it was stopped, inspected, and eventually found not to contain any explosive devices or materials. During the stop, Amtrak officers interviewed an attendant from the First Class car where MILLER had been sitting. The attendant stated that MILLER appeared intoxicated upon boarding in Washington, that he consumed multiple drinks on the train, and that he had been removed in New York owing to his intoxication. The attendant also advised that MILLER had been involved in hostile exchanges with a woman who was sitting in a different row from him in the First Class car.
The complaint alleges that investigators identified and interviewed the subject female and determined that that she was not carrying any explosives, was not checking a “carry on suitcase with a handle,” was not “checking her bag without taking anything out,” and would have been largely out of MILLER’s view unless he repeatedly stood up to observe her over or around the intervening seat row, or rows. The complaint further alleges that MILLER, motivated by a grudge against the subject female, called 911 to relay false information about a suspected bomb on the train, and continued to convey false information to investigators while the public safety response was ongoing.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force, Connecticut State Police, Metropolitan Transportation Authority Police Department, Amtrak Police Department, and Westport Police Department. The case is being prosecuted by Assistant U.S. Attorney Henry K. Kopel.