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30 March 2018
Georgia Residents Indicted for Distributing Meth in AlabamaRead the Press Release
BIRMINGHAM – A federal grand jury on Thursday indicted two Georgia residents on charges of distributing large quantities of methamphetamine in Alabama, announced U.S. Attorney Jay E. Town and Drug Enforcement Administration Assistant Special Agent in Charge Bret Hamilton.
A three-count indictment filed in U.S. District Court charges MICHAEL MONTOYA-AUSTRIA, 26, of Atlanta, and SERGIO ORTIZ, 31, a Mexican national living in Doraville, Ga., with conspiring to distribute 500 grams or more of methamphetamine in Jefferson County between February and March. The indictment also charges both Montoya-Austria and Ortiz with possessing with intent to distribute that quantity of the drug on March 7.
The indictment charges Montoya-Austria with distributing 500 grams or more of methamphetamine in St. Clair County on Feb. 27.
The penalty for each charge is 10 years to life in prison and a maximum $10 million fine.
DEA investigated the case, which Assistant U.S. Attorney Gregory R. Dimler is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Four Men Plead Guilty to Opioid Trafficking ConspiracyRead the Press Release
BOSTON – Four men pleaded guilty this week in federal court in Boston to their roles in an opioid trafficking conspiracy involving the distribution of fentanyl, heroin, and oxycodone across Massachusetts and Florida.
George Noukas, 27, of Manchester, N.H., pleaded guilty on March 28 to conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.
Moses Rodriguez, 30, of Lawrence, Mass., pleaded guilty on March 29 to one count of conspiracy to distribute and to possess with intent to distribute heroin and fentanyl and one count of conspiracy to launder monetary instruments.
Craig Drummond, 26, of Sunny Isles Beach, Fla., and Juan Reyes, 29, of Lawrence, Mass., each pleaded guilty today to one count of conspiracy to distribute and to possess with intent to distribute oxycodone and one count of conspiracy to launder monetary instruments.
U.S. District Court Judge Denise J. Casper deferred acceptance of Noukas’ and Rodriguez’s pleas until sentencing, both of which she scheduled for June 25, 2018. Judge Casper scheduled Drummond’s and Reyes’ sentencings for July 17, 2018, and June 20, 2018, respectively.
Noukas, Rodriguez, Drummond, and Reyes were arrested in March 2017 for their roles in a widespread conspiracy involving opioid trafficking and money laundering offenses in Massachusetts and Florida. Their arrests were the result of a three-year federal investigation into opioid-trafficking in New England.
According to charging documents, from at least 2014, Rodriguez and Noukas distributed sizeable quantities of heroin and fentanyl in the greater Boston area, and Drummond and Reyes transported sizeable quantities of oxycodone from Miami, Fla., to Massachusetts, where it, too, was distributed in the greater Boston area. Proceeds from the illicit oxycodone sales were then transported back to Florida and laundered in various ways.
The charges of conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin provides for a minimum sentence five years and up to 40 years in prison, a lifetime of supervised release, and a fine of $5 million. The charges of conspiracy to distribute and possess with the intent to distribute oxycodone provides for a sentence of no greater than 20 years in prison, a lifetime of supervised release, a fine of up to $1 million, and forfeiture. The charge of conspiracy to launder monetary instruments provides for a sentence of no greater than 20 years in prison, up to five years of supervised release, a fine of up to $500,000, or twice the value of the property laundered, and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Raymond Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service; John Gibbons, U.S. Marshal for the District of Massachusetts; and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Biddeford (Maine), Framingham, Haverhill, Lawrence, Manchester (N.H.), Methuen, Millis, Natick, Stoughton, and Waltham Police Departments. Assistant U.S. Attorneys Karen Beausey, Nadine Pellegrini and Craig Estes of Lelling’s Office are prosecuting the cases.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Officials of Central United Talmudic Academy in Brooklyn Plead Guilty to $3 Million Fraud SchemeRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Elozer Porges and Joel Lowy pleaded guilty to conspiracy to commit mail and wire fraud relating to their participation in a multi-million dollar fraud scheme. Porges and Lowy committed this fraud while serving in the administrative offices of Central United Talmudic Academy (“Central UTA”), a school system located in Williamsburg, Brooklyn. Porges served as Central UTA’s Executive Director, and Lowy served as Porges’s assistant. The pleas were entered before United States District Judge Nicholas G. Garaufis.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Mark Peters, Commissioner, New York City Department of Investigation, and Bethanne M. Dinkins, Special Agent-in-Charge, United States Department of Agriculture, Office of Inspector General, announced the guilty pleas.
According to the indictment, court filings and facts presented during the guilty plea, from between approximately 2013 and 2015, Porges and Lowy submitted documents to the New York State Department of Health (NYSDOH) specifically falsely claiming that its school children had received meals which, in fact, had never been served. The defendants fraudulently inflated the number of meals served at various Central UTA schools in order to obtain larger reimbursement payments from the federal government’s Child and Adult Care Food Program (CACFP), a program funded by the United States Department of Agriculture (USDA) and administered by the NYSDOH that is designed to assist schools and other institutions in providing meals to, among others, at-risk children. In total, Porges and Lowy, fraudulently obtained more than $3 million in reimbursement payments to CUTA.
At their guilty plea proceedings, Porges and Lowy admitted to submitting the inflated meal counts on behalf of Central UTA. As part of their plea agreements, Porges and Lowy are required to reimburse $3,256,338.68 to the USDA in restitution. Lowy is also required to pay restitution in the amount of $98,407.21 for food stamp and child care benefits he improperly obtained from New York City agencies.
When sentenced, Porges and Lowy each face a statutory maximum of 20 years’ imprisonment.
The government’s case is being prosecuted by the Office’s Public Integrity Section. Assistant United States Attorneys Erik Paulsen and Maria Cruz Melendez are in charge of the prosecution.
The Defendants:
ELOZER PORGES
Age: 43
Brooklyn, NYJOEL LOWY
Age: 29
Brooklyn, NYE.D.N.Y. Docket No. 17-CR-431
Federal Jury Finds Charleston Meth Dealer Guilty of Drug CrimesRead the Press Release
CHARLESTON, W.VA. – A federal jury found Don Lamont Wilkerson, 44, of Charleston, guilty of three counts of distributing methamphetamine, announced United States Attorney Mike Stuart. Wilkerson was convicted following a three day jury trial.
United States Attorney Stuart commended the investigative work of the Metropolitan Drug Enforcement Network Team (MDENT).“We are pleased that our community will have one less drug dealer as a result of this jury verdict,” said United States Attorney Mike Stuart. “Wilkerson’s prior felony drug conviction obviously didn’t motivate him to stop being a criminal, so now he gets the privilege of being locked up for a long time.”
Witnesses for the United States testified that Wilkerson sold a total of five ounces of methamphetamine to a confidential informant on three separate occasions in September of 2016. The drug deals took place in retail parking lots in the South Hills and Kanawha City neighborhoods of Charleston. The drugs were subsequently analyzed by the U. S. Customs and Border Patrol’s Savannah laboratory. A forensic chemist testified that the drugs recovered were in fact methamphetamine with a purity level of at least 95%.
Wilkerson, who has a prior felony drug conviction, faces a mandatory minimum of twenty years and up to life in federal prison when he is sentenced on August 7, 2018.
Assistant United States Attorneys Gabriele Wohl and Steven I. Loew are in charge of the prosecution and tried the case before a federal jury. Senior United States District Judge David A. Faber presided over the trial.
This case is 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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Federal Agents Seize 63 Dogs from Suspected Dogfighting RingRead the Press Release
DUBLIN, GA: On March 23, 2018, the United States filed a civil forfeiture complaint seeking the possession of 63 pit bull-type dogs that were allegedly involved in a dog fighting venture in violation of the federal Animal Welfare Act. Pursuant to a federal warrant, the animals were seized on March 19, 2018, in Eastman, Georgia, by United States Department of Agriculture, Office of Inspector General (USDA-OIG) special agents working with the United States Marshals Service, Georgia Bureau of Investigation, Georgia State Patrol (GSP), Oconee Drug Task Force, Dodge County Sheriff’s Office, and Georgia Department of Natural Resources.
According to the complaint filed last week in federal court, the animals were seized after GSP troopers conducted a traffic stop involving a vehicle inside of which an injured dog was found. The operator of the vehicle admitted to having been present at a dog fight in Eastman, Georgia, and provided law enforcement with the location of the fight. At the reported location, agents discovered a disassembled dog fighting “pit” and more than 60 pit bull-type dogs staked to the ground by heavy chains. The condition of a majority of the dogs, including scarring and aggression towards other dogs, was consistent with dog fighting and related training.
After obtaining a search warrant, agents found numerous indications of dog fighting at the Eastman property, including a treadmill with a rope attached to the front part of the machine, antibiotics and other injectable veterinary medications, and a jenny mill, which is used to develop a dog’s endurance and musculature by enticing the animal to run on a circular track. From four grave areas, agents unearthed the remains of seven dogs, five of which had scarring consistent with dog fighting and one of which had a broken leg. During the search, agents noted that none of the live animals had access to food, and most did not have access to water.
Following the seizure, the United States Marshals Service took custody of the animals. K2 Solutions, Inc. and the Humane Society of the United States are assisting with the care of the dogs, at least some of which are pregnant.
“Dog fighting is a barbaric spectacle that has no place in any civilized society, and it will enjoy no quarter in the Southern District of Georgia,” United States Attorney Bobby L. Christine said. “We know that animal fighting ventures often entail other forms of illegal activity involving drugs, firearms, and gambling, and this Office will continue to work with its law enforcement partners at all levels to investigate and successfully prosecute those who contribute to the proliferation of crime and seek to profit off the abuse and suffering of helpless animals.”
USDA-OIG Special Agent-in-Charge Karen Citizen-Wilcox stated, “The United States Department of Agriculture, Office of Inspector General-Investigations, actively investigates allegations of animal abuse. This agency has made animal fighting a high priority in order to demonstrate that these blatant acts of cruelty to animals will no longer be tolerated. We would like to thank United States Attorney’s Office for aggressively prosecuting perpetrators of animal fighting.”
“The Justice Department’s Environment and Natural Resources Division is pleased to have partnered with the U.S. Attorney’s Office, the U.S. Marshals Service, and federal and state law enforcement in this joint effort to remove these animals from harm’s way, pursuant to federal law, as quickly as possible,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “We applaud the agents and attorneys who worked tirelessly and acted on very little notice to achieve this successful outcome.”
Dog fighting is a violent contest in which two dogs that are bred and conditioned for fighting are released by their owners or handlers in a controlled environment to attack each other and fight for purposes of entertainment or gambling. Fights usually end when one dog withdraws, when a handler “picks up” his dog and forfeits the match, or when one or both dogs die. Persons engaged in dog fighting typically use “pit bull”-type dogs, which dog fighters prefer for their compact muscular build, short coat, and the aggression that some display toward other dogs.
The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to fight dogs or to possess, train, sell, buy, deliver, receive, or transport them for that purpose. The statute further authorizes the seizure and forfeiture of animals involved in dog fighting. Once the dogs are forfeited or surrendered to federal authorities, they can be evaluated and placed for adoption. Although federal funds will be used to pay for the care of the dogs while they remain in law enforcement custody, the Animal Welfare Act empowers the government to recover those costs from the dogs’ owners.
Assistant United States Attorneys Theodore S. Hertzberg and Xavier A. Cunningham are pursuing the forfeiture of the dogs on behalf of the United States. USDA-OIG is leading the related federal investigation. For any questions, please contact the United States Attorney’s Office at (912) 652-4422.
Federal Agents Seize 63 Dogs from Suspected Dog Fighting RingRead the Press Release
On March 23, 2018, the United States filed a civil forfeiture complaint seeking the possession of 63 pit bull-type dogs that were allegedly involved in a dog fighting venture in violation of the federal Animal Welfare Act. Pursuant to a federal warrant, the animals were seized on March 19, 2018, in Eastman, Georgia, by United States Department of Agriculture, Office of Inspector General (USDA-OIG) special agents working with the United States Marshals Service, Georgia Bureau of Investigation, Georgia State Patrol (GSP), Oconee Drug Task Force, Dodge County Sheriff’s Office, and Georgia Department of Natural Resources.
According to the complaint filed last week in federal court, the animals were seized after GSP troopers conducted a traffic stop involving a vehicle inside of which an injured dog was found. The operator of the vehicle admitted to having been present at a dog fight in Eastman, Georgia, and provided law enforcement with the location of the fight. At the reported location, agents discovered a disassembled dog fighting “pit” and more than 60 pit bull-type dogs staked to the ground by heavy chains. The condition of a majority of the dogs, including scarring and aggression towards other dogs, was consistent with dog fighting and related training.
After obtaining a search warrant, agents found numerous indications of dog fighting at the Eastman property, including a treadmill with a rope attached to the front part of the machine, antibiotics and other injectable veterinary medications, and a jenny mill, which is used to develop a dog’s endurance and musculature by enticing the animal to run on a circular track. From four grave areas, agents unearthed the remains of seven dogs, five of which had scarring consistent with dog fighting and one of which had a broken leg. During the search, agents noted that none of the live animals had access to food, and most did not have access to water.
Following the seizure, the United States Marshals Service took custody of the animals. K2 Solutions, Inc. and the Humane Society of the United States are assisting with the care of the dogs, at least some of which are pregnant.
“The Justice Department’s Environment and Natural Resources Division is pleased to have partnered with the U.S. Attorney’s Office, the U.S. Marshals Service, and federal and state law enforcement in this joint effort to remove these animals from harm’s way, pursuant to federal law, as quickly as possible,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “We applaud the agents and attorneys who worked tirelessly and acted on very little notice to achieve this successful outcome.”
“Dog fighting is a barbaric spectacle that has no place in any civilized society, and it will enjoy no quarter in the Southern District of Georgia,” said United States Attorney Bobby L. Christine. “We know that animal fighting ventures often entail other forms of illegal activity involving drugs, firearms, and gambling, and this Office will continue to work with its law enforcement partners at all levels to investigate and successfully prosecute those who contribute to the proliferation of crime and seek to profit off the abuse and suffering of helpless animals.”
“The United States Department of Agriculture, Office of Inspector General-Investigations, actively investigates allegations of animal abuse,” said Special Agent in Charge Karen Citizen-Wilcox for USDA-OIG. “This agency has made animal fighting a high priority in order to demonstrate that these blatant acts of cruelty to animals will no longer be tolerated. We would like to thank United States Attorney’s Office for aggressively prosecuting perpetrators of animal fighting.”
Dog fighting is a violent contest in which two dogs that are bred and conditioned for fighting are released by their owners or handlers in a controlled environment to attack each other and fight for purposes of entertainment or gambling. Fights usually end when one dog withdraws, when a handler “picks up” his dog and forfeits the match, or when one or both dogs die. Persons engaged in dog fighting typically use “pit bull”-type dogs, which dog fighters prefer for their compact muscular build, short coat, and the aggression that some display toward other dogs.
The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to fight dogs or to possess, train, sell, buy, deliver, receive, or transport them for that purpose. The statute further authorizes the seizure and forfeiture of animals involved in dog fighting. Once the dogs are forfeited or surrendered to federal authorities, they can be evaluated and placed for adoption. Although federal funds will be used to pay for the care of the dogs while they remain in law enforcement custody, the Animal Welfare Act empowers the government to recover those costs from the dogs’ owners.
Assistant United States Attorneys Theodore S. Hertzberg and Xavier A. Cunningham are pursuing the forfeiture of the dogs on behalf of the United States. USDA-OIG is leading the related federal investigation. For any questions, please contact the United States Attorney’s Office at (912) 652-4422.
FBI Agent Convicted for Falsifying Information When Applying for a PassportRead the Press Release
EL PASO, Texas — Following a four-day trial, a federal jury has convicted a woman on felony offenses for submitting false information when applying for a passport in June 2014, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
Rhonda Lynn Chesser Lindstrom, 41, most recently from Washington, D.C., was convicted last week on three counts of false statement in application for passport. Each false statement count carries a statutory penalty of not more than 25 years in federal prison and a $250,000 fine. Lindstrom is scheduled to be sentenced by U.S. District Judge David Briones on June 7, 2018.
Because Chesser Lindstrom worked as a Special Agent in the El Paso FBI office, and presented cases to the Western District of Texas U.S. Attorney’s office, the Western District of Texas Assistant U.S. Attorneys were recused and Northern District of Texas Assistant U.S. Attorney Paulina Jacobo was appointed as a Special Assistant to the Attorney General.
According to evidence presented at trial, on June 10, 2014, Chesser Lindstrom personally appeared at the United States Department of State, El Paso Passport Agency (EPPA), and submitted an Application for a U.S. Passport. As required by the application, Chesser Lindstrom provided as proof of citizenship a State of Louisiana Birth Certificate issued on August 22, 2011. The date of birth on the birth certificate was August 26, 1977. As proof of identity, Chesser Lindstrom provided a State of Maryland Driver’s License with a date of birth of August 26, 1977.
A Passport Specialist conducted a thorough and detailed review of Chesser Lindstrom’s Passport Application. He noticed that the birth certificate appeared to have been altered. Specifically, the birth certificate showed clear signs of handwritten alterations in three places, the Birth Number, the Birth Date, and the File Date. The birth certificate had erasures and numbers rewritten in the three places. Since it was obvious that the birth certificate was altered, the case was referred to the Fraud Prevention Manager (FPM).
On June 12, 2014, the Passport Application was further reviewed by the Fraud Prevention Office to verify all information submitted by Chesser Lindstrom. The results of the review indicated that Lindstrom’s correct date of birth was August 26, 1976; no record was found of a Rhonda Chesser born on August 26, 1977, as indicated on the birth certificate she provided to the EPPA.
The EPPA asked for additional information and Chesser Lindstrom provided additional false documents after enticing her older sister to participate in creating those documents.
The Department of Justice Office of Inspector General was the lead investigation agency, assisted by the U.S. Department of State, Diplomatic Security Service, Criminal Fraud Investigations, and the United States Department of State, El Paso Passport Agency Program Fraud Office investigated. Assistant U.S. Attorneys Paulina Jacobo and Chris Wolfe prosecuted.
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District Man Sentenced to Three Years in Prison for Sexually Assaulting WomanRead the Press Release
WASHINGTON – Michael Williams, 24, of Washington, D.C., was sentenced today to three years in prison for groping a stranger after knocking her to the sidewalk in downtown Washington, announced U.S. Attorney Jessie K. Liu.
The victim was eight months pregnant at the time. Fortunately, both the victim and her baby sustained no serious injuries.
Williams pled guilty in September 2017, in the Superior Court of the District of Columbia, to a charge of third-degree sexual abuse. He was sentenced by the Honorable Zoe Bush. Following his prison term, he will be placed on three years of supervised release. He also will be required to register as a sex offender for a 10-year period.
According to the government’s evidence, on Friday, May 5, 2017, at about 3:30 p.m., Williams approached the victim just outside the U.S. Tax Court in the 400 block of 3rd Street NW. He was stark naked. When the victim saw Williams approaching, she tried to flee, but Williams caught her, grabbed her, and tackled her to the sidewalk, where he groped her. A guard inside the Tax Court saw the assault and ran outside to try to intervene, but Williams fled. By happenstance, a homicide detective with the Metropolitan Police Department (MPD) was driving by and saw a naked man running up 3rd Street. He jumped out of his car, pursued, caught and arrested Williams. Williams has been in custody since his arrest.
In announcing the sentence, U.S. Attorney Liu commended the quick action of the homicide detective and the security officers at the U.S. Tax Court who helped pursue the defendant. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Brenda C. Williams and Victim/Witness Advocate Juanita Harris. Finally, U.S. Attorney Liu expressed appreciation for the work of Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted this case.
District Man Sentenced to 50 Months in Prison for Sexually Assaulting 12-Year-Old GirlRead the Press Release
WASHINGTON – Davon Rashad Wood, 27, of Washington, D.C., was sentenced today to 50 months in prison for groping a 12-year old girl as she was walking into a community aquatic center in Southeast Washington, announced U.S. Attorney Jessie K. Liu.
Wood pled guilty in September 2017, in the Superior Court of the District of Columbia, to a charge of second-degree child sexual abuse. He was sentenced by the Honorable José M. López. Following his prison term, Wood will be placed on 10 years of supervised release. He also must register as a sex offender for the rest of his life.
According to the government’s evidence, on June 26, 2017, at about 10:45 a.m., the victim was walking into the William H. Rumsey Aquatic Center in the 600 block of North Carolina Avenue SE. Wood held the door for the girl as she entered the aquatic center, then grabbed her buttocks as she walked past him. His actions were captured on the aquatic center’s security cameras. The girl did not know Wood. The Metropolitan Police Department (MPD) provided clips from security footage to the local media in hopes of getting the public’s assistance. Several people then called MPD to identify the man as Wood. Wood was arrested at his home in Southeast Washington on July 2, 2017.
In announcing the sentence, U.S. Attorney Liu praised detectives from MPD’s Youth Division, the aquatic center employees who provided MPD with footage from the center’s security cameras, and members of the public, who helped identify Wood as the perpetrator. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Brenda C. Williams and Victim/Witness Advocate Juanita Harris. Finally, she commended the work of Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted this case.
Connecticut Man Sentenced to 30 Months in Federal Prison for Drug TraffickingRead the Press Release
CONCORD - United States Attorney Scott W. Murray announced today that Anthony Swift, 33, formerly of Hartford, Connecticut, was sentenced to 30 months in federal prison for conspiring to distribute fentanyl and heroin.
Court documents and statements in court showed that on May 23, 2016, the New Hampshire State Police conducted a traffic stop of a vehicle operated by another individual as it traveled north on Interstate 95. Swift was the sole passenger in the vehicle. A search of the vehicle resulted in the seizure of 14.46 grams of fentanyl and 120.4 grams of heroin from a duffel bag in the trunk of the vehicle. Swift acknowledged that he purchased the drugs in Hartford, Connecticut and that the drugs would be distributed in the Presque Isle, Maine area.
Swift pleaded guilty to the charges on November 9, 2017.
“I commend the State Police for their work in preventing this substantial amount of drugs from being distributed,” said U.S. Attorney Murray. “The U.S. Attorney’s Office continues to work closely with all of our law enforcement partners to stop the sales of heroin and fentanyl in New England.”
This investigation was conducted by the New Hampshire State Police Mobile Enforcement Team. Assistant United States Attorney Jennifer Cole Davis is prosecuting the case.
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Columbia Gang Member Pleads to Federal Firearm ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Shamari Delresse Jones, a/k/a “Amari,” age 33, of Columbia, plead guilty in federal court to being a felon in possession of firearms and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2), and 924(e). United States District Judge Mary Geiger Lewis, of Columbia, accepted the guilty plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the United States Probation Office.
Evidence presented in court established that on the evening of July 29, 2017, officers with the Columbia Police Department were on routine patrol on West Beltline Boulevard and observed Jones driving and knew that his driver’s license was under suspension. After confirming that Jones’ license was suspended and noticing that the license plate on the vehicle came back to a completely different vehicle, officers initiated a traffic stop. Jones, the driver, and the passenger both exited the vehicle and Jones was observed with a baggie in his hands. Jones fled on foot as the officers approached, but was apprehended and the baggie was found to contain rounds of .44 caliber ammunition. While the officers were pursuing Jones, the passenger left in the vehicle. Jones was arrested on state charges. The following day, the Lancaster County Sheriff’s Office responded to Jones’ mother’s home in Heath Springs in reference to a shooting. No one was injured, but while at the home, a number of firearms and rounds of ammunition were recovered by law enforcement, including a Bushmaster .223 caliber rifle with an extended magazine and two 12 gauge shotguns. The investigation revealed that upon Jones’ arrest for being in possession of the ammunition, several other individuals moved the firearms from Jones’ Columbia home to his mother’s home in an effort to keep law enforcement from finding the firearms. The investigation also showed that in October 2015, Jones, a known gang member, had attended an offender notification meeting in which he, and others, were advised by law enforcement officials that should they be found in possession of firearms and ammunition, their case would be considered for federal prosecution in light of their extensive prior record.
Jones is prohibited under federal law from possessing firearms and ammunition based upon his prior separate South Carolina state convictions for assault and battery of a high and aggravated nature (2004), distribution of crack cocaine (2009), possession of cocaine (2009), assault with intent to kill (2 counts)(2009), unlawful carrying of a firearm (2009), assault and battery of a high and aggravated nature (2006), possession of cocaine (2010), and possession with intent to distribute marijuana (2015).
Jones faces a maximum of 10 years imprisonment, a fine of $250,000, and 3 years of supervised release on the felon in possession of a firearm and ammunition charge. However, if he is deemed an armed career criminal in light of his prior convictions, he would face a statutory mandatory minimum term of imprisonment of 15 years with a maximum of life, a fine of $250,000, and 5 years of supervised release on the firearm charge.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Columbia Police Department, and the Lancaster County Sheriff’s Office and was prosecuted as part of Project CeaseFire, a joint federal, state and local initiative focused upon aggressively prosecuting firearm cases in an effort to reduce violent crime and make our neighborhoods safer. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), a crime reduction strategy originally launched in 2001. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority and reinstituted PSN nationwide. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Canyon, Texas Man Sentenced to 135 Months in Federal Prison for Child Pornography OffenseRead the Press Release
AMARILLO, Texas — Neal Edmond Brown, 46, of Canyon, Texas, was sentenced this week by U.S. District Judge Sidney A. Fitzwater to 135 months in federal prison, following his guilty plea in November 2017 to possession of prepubescent child pornography, announced Erin Nealy Cox, United States Attorney for the Northern District of Texas.
Brown has been in custody since his arrest in October 2017.
According to the plea agreement factual resume filed in the case, the National Center for Missing and Exploited Children (NCMEC) received information that an image depicting child pornography had been uploaded using the Skype program. Law enforcement discovered that the IP address responsible for uploading the image belonged to the Region 16 Education Service Center (ESC) in Amarillo, Texas. With the assistance from Region 16 ESC personnel, agents were able to verify that Brown, the Director of School Finance Operations at Region 16 ESC, was uploading child pornography from his work computer.
On June 21, 2017, a search warrant was executed at Region 16 ESC and agents seized several electronic devices located in Brown’s office. A forensic examination revealed that the electronic devices contained over 900 images of child pornography and over 200 videos of child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation and Amarillo Police Department are investigated the case. Assistant U.S. Attorney Joshua Frausto prosecuted.
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Cambridge, Massachusetts, Man Sentenced in Manhattan Federal Court for Insider TradingRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that FEI YAN, who works as a post-doctoral associate at a major research university in Cambridge, Massachusetts, was sentenced today in Manhattan federal court to 15 months in prison by U.S. District Judge Katherine B. Forrest. In 2016, YAN made almost $120,000 in connection with trading in stocks and options of publicly traded companies, based on misappropriated material nonpublic information.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Fei Yan blatantly circumvented the securities laws that are in place to deter people from doing exactly what he did – trading on nonpublic information to give him a leg up over other investors. Even after searching the internet on ways to get away with his crime, Yan was apprehended for his insider trading, and will now spend time in prison for his crimes.”
According to the Indictment filed in Manhattan federal court, previous court filings, and statements made a public court proceedings:
YAN’s spouse (the “Spouse”) worked at the New York office of an international law firm (the “Law Firm”). In the summer of 2016, the Law Firm was retained by a mining company (the “Mining Company”) to represent it in negotiations to acquire Stillwater Mining Company, a publicly traded company whose shares are traded on the New York Stock Exchange under the symbol “SWC.” On August 25, 2016, in connection with the Spouse’s work at the Law Firm, the Spouse learned of the negotiations between the Mining Company and Stillwater Mining and continued to work on the transaction through December 9, 2016, when it was publicly announced for the first time that the Mining Company would be acquiring Stillwater Mining. While working on the transaction during the fall of 2016, the Spouse had access to material, nonpublic information regarding the potential acquisition.
The Law Firm required its employees, including the Spouse, to abide by a confidentiality policy, which prohibited disclosure of “information received from and about . . . clients . . . [and] other parties involved in transactions with clients.” In addition, YAN and the Spouse had a history, pattern, and practice of sharing confidences.
In early and mid-November 2016, the Spouse billed dozens of hours working on the potential merger between the Mining Company and Stillwater Mining, and YAN and the Spouse were in frequent phone contact. During this period, YAN conducted Internet searches for “yahoo swc” and “stillwater merger,” even though the Mining Company’s potential acquisition of Stillwater Mining had not yet been publicly announced.
On November 22, 2016, the Spouse participated in a call at the Law Firm regarding the potential acquisition. That same day, YAN, using a brokerage account he had previously set up in his mother’s name, bought 71 options to buy Stillwater Mining stock. The next day, there were two phone calls between YAN and the Spouse. After these calls, YAN bought an additional 200 options to buy Stillwater Mining stock.
Negotiations between the Mining Company, represented by the Law Firm, and Stillwater Mining continued to progress, and the Spouse continued to work on the transaction. On December 1, 2016, after a 78-minute phone call with the Spouse the night before, YAN purchased an additional 100 Stillwater Mining options.
The following day, YAN conducted multiple Internet searches and research related to mergers and acquisitions, including searches for “process of acquisition” and “company acquisition process.” Several minutes after conducting these searches, YAN called the Spouse.
YAN and the Spouse also spoke on the phone multiple times on the night of December 5 and the early morning hours of December 6, 2016. Later on the morning of December 6, 2016, YAN bought an additional 341 options to buy Stillwater Mining stock. Later that day, YAN conducted internet research related to insider trading. For example, YAN searched for “how sec detect unusual trade” and accessed at least three articles on financial websites related to insider trading. YAN also searched for the name of an individual who was charged in this District in May 2016 with insider trading.
The next day, shortly after speaking with the Spouse on the phone for approximately 30 minutes, YAN conducted an Internet search for “insider trading with international account” and, shortly thereafter, viewed articles entitled “U.S. Insider Trading Enforcement Goes Global” and “Want to Commit Insider Trading? Here’s How Not to Do It.” The following day, YAN bought an additional 54 options to buy Stillwater Mining stock.
Early on the morning of December 9, 2016, it was publicly announced that the Mining Company would acquire Stillwater Mining for $18 per share. Beginning at approximately 9:33 a.m. Eastern time, minutes after the open of regular market trading, YAN sold the Stillwater Mining options he had previously purchased, resulting in a profit of approximately $109,420. Also that day, YAN conducted Internet searches for “insider trading cases,” and “insider trading options.”
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In addition to his prison sentence, YAN, 31, was sentenced to three years of supervised release and ordered to forfeit $119,428.50, representing the amount of proceeds obtained as a result of trading in Stillwater Mining and related relevant conduct involving trades in the Mattress Firm.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation, and thanked the Securities Exchange Commission, which has filed civil charges in a separate action. Mr. Berman also thanked the FBI’s Boston Office and the U.S. Attorney’s Office for the District of Massachusetts for their assistance in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Brendan F. Quigley is in charge of the prosecution.
Californian Man Indicted for Fraudulent Bank Accounts Opened with Stolen IdentitiesRead the Press Release
BIRMINGHAM – A federal grand jury on Thursday indicted a California man for stealing other peoples’ identities and using them to open accounts at the Birmingham-based BBVA Compass Bank, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp Jr.
A 12-count indictment filed in U.S. District Court charges EDUARDO FERNANDO VILLANUEVA ARANGUENA, 32, of Reseda, Calif., with six counts each of bank fraud and aggravated identity theft. Aranguena obtained personally identifying information for six individuals and opened an account or accounts in those individuals’ names at Compass Bank between Sept. 15, 2016, and Nov. 1, 2016, according to the indictment.
Aranguena used the fraudulently established accounts to deposit, withdraw and transfer money, as well as to make purchases, load gift cards, open lines of credit and apply for credit cards, according to the indictment.
“With today’s technology, cybercriminals can commit identity theft against a Birmingham, Alabama, bank from thousands of miles away,” said Assistant U.S. Attorney Jonathan Keim, who is prosecuting the case. “We appreciate the investigative assistance of the U.S. Attorney’s Offices for the Central District of California and the Western District of North Carolina and the Charlotte Field Office of the FBI.”
The maximum penalty for bank fraud is 30 years in prison and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Aggravated identity theft carries a mandatory two-year prison sentence, which would have to be served consecutively to any sentence imposed for bank fraud, and a possible fine of $250,000 or twice the gross gain or loss, whichever is greater.
The FBI investigated the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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California Men Plead Guilty to Roles in Fentanyl Distribution ConspiracyRead the Press Release
AMARILO, Texas — Two men from California, Erasmo Ramirez-Romero and Jorge Ramirez, appeared yesterday afternoon before U.S. District Judge Sidney A. Fitzwater, and pleaded guilty to their roles in a fentanyl distribution conspiracy, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Ramirez-Romero, 31, and Ramirez, 22, each pleaded guilty to one count of possession with intent to distribute fentanyl. The defendants face a maximum sentence of not more than 20 years in federal prison and a $1 million fine. Judge Fitzwater set a sentencing date of July 11, 2018.
According to documents filed in the case, on January 14, 2018, law enforcement was working routine patrol in Carson County, Texas stopped a 2005 Nissan Altima for driving in the left lane when not passing. The officer made contact with the driver of the vehicle, who was later identified as Ramirez, and the passenger, who was later identified as Ramirez- Romero. The officer noticed indicators of possible criminal activity and inconsistencies with Ramirez’s and Romero’s stories about their trip.
Ramirez consented to a search of the vehicle. During the search of the vehicle, law enforcement located four bundles of Fentanyl, weighing approximately 10 pounds, in the passenger side quarter panel in the trunk.
The case is being investigated by the Texas Department of Public Safety and the Drug Enforcement Administration. Assistant U.S. Attorney Joshua Frausto is in charge of the prosecution.
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California Man Pleads Guilty to Trafficking in Counterfeit Sports ApparelRead the Press Release
A Mountain House, California man pleaded guilty today in Sacramento for trafficking in counterfeit sports apparel.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge Sean Ragan of the FBI’s Sacramento Field Office and Sheriff Scott Jones of the Sacramento County Sheriff’s Department made the announcement.
Seyyed Ali Noori, 50, pleaded guilty to two counts of trafficking in counterfeit goods before U.S. District Judge Garland E. Burrell Jr. of the Eastern District of California. Noori was indicted by a federal grand jury on Jan. 14, 2016, and will be sentenced on June 15.
According to admissions made in connection with his plea, Noori owned and operated Goldstar Wholesale LLC, a regional wholesale distributor based in Tracy, California, and also sold goods at the Galt Flea Market in Galt, California. In August, October, and November 2013, undercover officers with the Sacramento Intellectual Property Task Force purchased hundreds of dollars of counterfeit hats, shirts, and other accessories from Noori. These items bore counterfeit trademarks belonging to professional sports franchises in the National Football League, the National Basketball Association, Major League Baseball, and the National Hockey League, as well as apparel brands like Monster Energy, Nike, and New Era. Purchases were made from Noori at the Galt Flea Market and the Goldstar warehouse.
Noori admitted that on Nov. 12, 2013, he was served with a notice directing him to cease-and-desist selling goods bearing counterfeit NFL, MLB, NBA, NHL, and Monster Energy trademarks. Noori signed a declaration that he understood the cease-and-desist notice and would refrain from selling such products in the future.
Nonetheless, according to Noori’s admissions, he continued to sell the counterfeit goods. On Dec. 3, 2013, undercover Task Force officers visited Noori’s retail stand at the Galt Flea Market, where Noori indicated that he could no longer display the counterfeit items for sale. Instead, he directed the officers to his box truck for the counterfeit goods, which they purchased. On Dec. 19, 2013, a search warrant executed at the Goldstar warehouse recovered thousands of items openly displayed for sale, including pieces of headwear, shirts, and accessories, all bearing counterfeit sports trademarks.
This case was investigated by the Sacramento Intellectual Property Task Force, the FBI’s Sacramento Field Office and the Sacramento County Sheriff’s Office. Trial Attorneys Aaron R. Cooper and Timothy C. Flowers of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.
CEOs and Owner Plead Guilty to Facilitating Substance Abuse Treatment Fraud Scheme Involving KickbacksRead the Press Release
This week, two CEOs and the owner of Zenith Health Services Inc., Monty Health Care Services, Inc., Peaceful Encounters, LLC, National Diagnostic Testing Inc., and Paramount Health Solutions Inc., pled guilty for their roles in a health care fraud scheme.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Jimmy Patronis, Florida Chief Financial Officer; Michael J. Waters, Special Agent in Charge, Amtrak Office of Inspector General (Amtrak-OIG); Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA); and Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), made the announcement.
John Michael Skeffington, 52, of Boca Raton, pled guilty to participating in a health care fraud conspiracy, in violation of Title 18, United States Code, Section 1349, and obstructing a criminal health care investigation, in violation of Title 18, United States Code, Sections 1518(a) and 2. Co-defendant Babette Hayes, 58, of Sarasota, pled guilty to obstructing a criminal heath care investigation. Co-defendant Mona Montanino, 56, of Boca Raton, also pled guilty to obstructing a criminal health care investigation
According to court documents, Skeffington, Hayes and Montanino established five shell companies, disguised as “laboratory marketing companies,” in order to unlawfully refer medically unnecessary and excessive bodily fluid tests for residents and patients of sober homes and substance abuse treatment facilities to various clinical laboratories and rural hospitals. Hayes and Montanino purported to be the chief executive officers of some of the companies, but it was Skeffington who actually operated and controlled the companies and directed the co-defendants’ actions. In exchange for patient referrals, the laboratories and hospitals would provide a pre-set percentage of insurance payments (“kickbacks”) to the defendants, which they would then share with the sober homes and substance abuse treatment facilities.
The fraud scheme took advantage of higher insurance reimbursement rates for testing conducted by hospitals. In some cases, the hospitals would submit claim forms as if the patients submitted samples in person when, in reality, the patients were hundreds of miles away, were never treated at the hospitals, and were unaware that their insurance plans were billed for the services. During the course of the scheme, Skeffington increased his use of rural hospitals for the fraudulent testing, after insurance companies began to scrutinize claims from clinical laboratories for bodily fluid tests.
The kickback amounts, often disguised as payments for sales commissions to Skeffington’s companies, were based on written and unwritten agreements between Skeffington and the laboratories and hospitals. Upon receiving the payments, Skeffington would directly or indirectly provide kickback payments to the sober homes and substance abuse treatment center owners who were accomplices in the scheme.
Once Skeffington, Montanino and Hayes became aware of the FBI investigation into fraudulent medical claims, they created dozens of fake documents meant to obstruct the investigation and disguise the kickbacks as hourly payments for marketing services. They asked, both those from whom they had received kickbacks and those to whom they provided kickbacks, to sign the documents to further conceal their illegal activities. Signed documents and invoices were back-dated to make it appear as though they had been signed and submitted before the kickback payments were made.
The defendants are scheduled to be sentenced by Senior United States District Judge Kenneth A. Marra on July 6, 2018 at 1:30 p.m.
These cases are the result of the work of the Greater Palm Beach Health Care Fraud Task Force. The Task Force’s ongoing investigation into substance abuse treatment fraud in the Southern District of Florida has resulted in 18 convictions to date. Agencies of the Task Force include the FBI, IRS-CI, the Florida Division of Investigative and Forensic Services, Amtrak OIG, DOL-EBSA, and NICB.
Mr. Greenberg commended the investigative efforts of all law enforcement agencies connected with the Task Force, as they continue to combat sober home abuses and health care fraud.
These cases are being prosecuted by Assistant U.S. Attorneys A. Marie Villafaña and Alexandra Chase.
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.
Brazilian National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON – Geovane Jose Ferreira, 34, a Brazilian national, pleaded guilty today in federal court in Boston to one count of unlawful reentry of a deported alien. U.S. District Court Judge Indira Talwani scheduled sentencing for June 28, 2018.
On Aug. 2, 2017, law enforcement officers in Essex encountered Ferreira and determined him to be unlawfully present in the United States. Ferreira was previously deported on Dec. 17, 2003.
Ferreira faces a sentence of no greater than two years in prison, one year of supervised release, a fine of $250,000 and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit is prosecuting the case.
Bolivar Man Sentenced to over 22 years in Federal PrisonRead the Press Release
Jackson, TN – A Bolivar, Tenn., man has been sentenced to federal prison for conspiracy to distribute 50 grams or more of actual methamphetamine (ICE). U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
On March 29, 2018, Deon Brown, Sr., 49, a/k/a/ "Pleezy," was sentenced to 275 months in United States District Court in Jackson, Tenn., by the Honorable J. Daniel Breen. Brown participated in a conspiracy that from August 29, 2014 through March 19, 2016 was distributing ICE in the Western District of Tennessee and elsewhere.
U.S. Attorney D. Michael Dunavant said: "Use and trafficking of methamphetamine continues to destroy lives, families, and communities across West Tennessee. The joint cooperation between federal, state, and local law enforcement in this OCDETF case demonstrates our ability and resolve to dismantle drug trafficking organizations, including those that distribute narcotics from locations across the country. The significant sentence in this case sends a clear message to those drug dealers who distribute poison in the Western District of Tennessee: You cannot prey upon our citizens for your selfish personal gain with impunity; there will be a reckoning."
Facts introduced at the sentencing hearing revealed that during the time period of the conspiracy, Brown was responsible for distributing 10.89 kilos of actual methamphetamine. Agents conducted undercover purchases of the ICE from Brown. At sentencing, proof of airline trips made by Brown to Las Vegas to purchase the product for himself and others was introduced. Brown and the co-conspirators were purchasing the illegal narcotics in Las Vegas for $200 to $300 per ounce and were reselling it in Tennessee and Mississippi for $1200 to $1600 an ounce.
On May 11, 2015, agents purchased 82 grams of 97.5% pure methamphetamine from Brown for $2700. On May 14, 2015, Agents purchased 56 grams of 96.9% pure methamphetamine from Brown for $1800. On June 3, 2015, Agents purchased 27.87 grams of methamphetamine from Brown for $900. Finally, on July 22, 2015, Agents purchased 112.4 grams of 99.1% pure methamphetamine from Brown for $3200.
This prosecution is part of an extensive investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt and dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Drug Enforcement Administration; Tennessee Bureau of Investigation; 24th Judicial District Drug Task Force; and Jackson-Madison County Metro Narcotics.
Assistant U.S. Attorney Beth C. Boswell prosecuted this case on the government’s behalf.
Atlantic Beach Drug Dealer Sentenced to More Than Three Years in PrisonRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Sunshine Marie McEwen (43, Atlantic Beach) to three years and five months in federal prison for failing to register as a sex offender.
According to court documents, on August 20, 1998, McEwen was convicted of sexual battery on a 12-year-old child in Jacksonville. After her release from state prison in September 2013, she resided in Atlantic Beach. On May 15, 2015, McEwen sold drugs to an individual in Atlantic Beach and later fled to California without updating her sex offender registration. She also failed to register in California as required by the Sex Offender Registration and Notification Act. On November 28, 2015, McEwen was arrested in Palm Springs and extradited to Florida to face her drug charges. On July 6, 2016, she was convicted for selling cocaine within 1,000 feet of a church and sentenced to 78 months in state prison.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the U.S. Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders.
This case was investigated by the U.S. Marshals Service, the Jacksonville Sheriff’s Office, the Atlantic Beach Police Department, the Florida Department of Law Enforcement, and the Palm Springs Police Department. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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, 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.
Amarillo Man Sentenced to 212 Months in Federal Prison on Drug ChargeRead the Press Release
AMARILLO — U.S. District Judge Sidney A. Fitzwater sentenced Jose Santillan, 25, of Amarillo, Texas, earlier this week to 212 months’ in federal prison. Santillan was convicted in December 2017, following a three-day trial, on one count of conspiracy to distribute and possess with intent to distribute 50 grams or more of pure methamphetamine The announcement was made today by U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Santillan has been in custody since the time of his arrest in April 2017.
According to evidence presented at trial, on February 2, 2016, a Texas Department of Public Safety agent working in an undercover capacity arranged to purchase eight ounces of methamphetamine from Guadalupe Vargas-Mayorga. Through surveillance and recorded telephone calls between the undercover agent and Vargas-Mayorga, law enforcement learned that Vargas-Mayorga obtained the eight ounces of methamphetamine from Jose Santillan and then delivered that methamphetamine to the undercover agent. Laboratory results confirmed that Vargas-Mayorga and Santillan delivered 192 grams of pure methamphetamine to the undercover agent on February 2, 2016. The evidence presented at trial also showed that Santillan had been supplying Vargas-Mayorga with methamphetamine for further distribution since approximately 2014. Additionally, evidence presented at sentencing showed that Santillan was receiving large shipments of liquid methamphetamine from Mexico.
The Drug Enforcement Administration, Department of Homeland Security, Texas Department of Public Safety, Amarillo Police Department, Potter County Sheriff’s Office, and Randall County Sheriff’s Office investigated. Assistant U.S. Attorneys Sean Taylor and Joshua Frausto and Deputy Criminal Chief Assistant U.S. Attorney Jeffrey Haag prosecuted the case.
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Albuquerque Man Pleads Guilty to Federal Mail Theft, Drug Trafficking, Firearms and Identity Theft ChargesRead the Press Release
ALBUQUERQUE – Nathan Berke, 38, of Albuquerque, N.M., pled guilty today in federal court to drug trafficking, firearms, mail theft, and aggravated identity theft charges under a plea agreement that recommends that he be sentenced to a term of imprisonment within the range of 120 to 204 months. The guilty plea was announced by U.S. Attorney John C. Anderson and Inspector in Charge Melisa Llosa of the Phoenix Division of the U.S. Postal Inspection Service.
Berke and co-defendant Joann Bell, 37, also of Albuquerque, were charged on May 24, 2017, in a 14-count indictment with drug trafficking, firearms, mail theft, bank fraud and aggravated identity theft offenses. Bell pled guilty in Dec. 2017, and on Dec. 5, 2017, a superseding indictment charging Berke individually, was filed.
The 13-count superseding indictment charged Berke with the following offenses: participation in a methamphetamine trafficking conspiracy in July 2016, in Bernalillo County; possession of methamphetamine with intent to distribute on July 28, 2016, in Bernalillo County; using a firearm in furtherance of a drug trafficking crime on July 28, 2016, in Bernalillo County; possession of stolen mail on July 28, 2016, in Bernalillo County; possession of methamphetamine with intent to distribute on Aug. 9, 2016, in San Juan County; being a felon in possession of a firearm on July 28, 2016, in Bernalillo County; possession of stolen mail on Aug. 9, 2016, in San Juan County; and three counts of bank fraud and three counts of aggravated identity theft from July 23, 2016 through July 25, 2016, in New Mexico.
During today’s proceedings, Berke pled guilty to a four-count felony information charging him with conspiracy, two counts of possession of methamphetamine with intent to distribute, and using a firearm in furtherance of a drug trafficking crime. Additionally, Berke pled guilty to Counts 5 through 13 of the superseding indictment charging him with being a felon in possession of a firearm, two counts of possession of stolen mail, three counts of bank fraud and three counts of aggravated identity theft.
In entering the guilty plea, Berke admitted the following:
- On July 28, 2016, Berke possessed 100 grams of methamphetamine in Bernalillo County, which he intended to distribute to others, stolen mail, and two loaded firearms. Berke also acknowledged that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
- On Aug. 9, 2016, Berke possessed approximately 105 grams of methamphetamine in San Juan County, which he intended to distribute to others, and stolen mail.
- Between July 23, 2016 and July 25, 2016, Berke used identity information from stolen mail and counterfeit identifications to pass counterfeit and unauthorized checks in the names of others to purchase gift cards at Albuquerque-area stores, which he then sold to others for cash. Berke also admitted that in this time-period, he attempted to open a membership account at an Albuquerque-area store using a counterfeit check, counterfeit identifications and a drivers’ license in the name of another person.
On Dec. 14, 2017, Bell pled guilty to conspiracy, possessing methamphetamine with intent to distribute, and possessing stolen mail. In entering the guilty plea, Bell admitted that on July 28, 2016, she and another person possessed approximately 100 grams of methamphetamine, which they intended to distribute to others. Bell also admitted that on that same day, she possessed mail that belonged to others but had been stolen from an authorized depository for U.S. mail. Bell entered her guilty plea under a plea agreement that recommended the imposition of a sentence of five years of imprisonment.
Bell previously had been arrested in Sept. 2016, on a criminal complaint charging her with repeatedly stealing mail from U.S. Postal Service mail collection boxes located outside of U.S. Post Offices in Albuquerque by using a “fishing” device she fed into the mailbox to “fish” mail out. Bell was indicted in this case on Oct. 12, 2016, and was charged with stealing and receiving stolen mail on Sept. 18, 2016 in Bernalillo County. On March 30, 2017, Bell pled guilty to the indictment and admitted using a “fishing” device to pull mail out of USPS collection boxes on Sept. 17 and 18, 2016. The sentence imposed in that case will run concurrent to the five-year term of imprisonment to be imposed on Bell based on the guilty plea entered in Dec. 2017.
Berke and Bell both remain in custody pending sentencing hearings, which have yet to be scheduled.
This case was investigated by the U.S. Postal Inspection Service with assistance from the DEA and is being prosecuted by Assistant U.S. Attorneys Nicholas Jon Ganjei and Sean J. Sullivan.
Accomplice to Fugitive Lawyer Pleads Guilty to Conspiracy to EscapeRead the Press Release
An Eastern Kentucky man pleaded guilty today for his role in assisting a former Social Security disability lawyer escape from federal custody.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge Amy S. Hess of the FBI’s Louisville, Kentucky Field Division and Special Agent in Charge Michael McGill of the Social Security Administration-Office of Inspector General’s (SSA-OIG) Philadelphia Field Division made the announcement.
Curtis Lee Wyatt, 48, of Raccoon, Kentucky, pleaded guilty to one count of conspiracy to escape from custody before U.S. District Judge Danny C. Reeves of the Eastern District of Kentucky. Sentencing has been scheduled for June 29, before Judge Reeves.
In September 2017, Wyatt was charged in a seven-count indictment with conspiracy to escape, instigating and assisting escape, conspiracy to commit failure to appear, aiding and abetting failure to appear, and making false statements to the FBI in connection with his role in assisting former Social Security disability lawyer Eric Christopher Conn escape from federal custody. The indictment alleges that Conn, while on home confinement after pleading guilty to two federal offenses but before being sentenced, escaped from custody by severing an electronic monitoring device from his ankle during a court-approved visit to Lexington, Kentucky on June 2, 2017, and fled to the Mexican border. According to the indictment, Conn ultimately failed to appear for his sentencing hearing on July 14, 2017.
As part of his guilty plea, Wyatt admitted that he conspired with Conn to escape from custody by, in the months prior to Conn’s escape, assessing security measures at various pedestrian checkpoints along the United States-Mexican border and advising Conn of whether identification was checked upon exiting the United States. Wyatt further admitted that on the day prior to Conn’s escape, he provided Conn with a Faraday bag for the purpose of suppressing the signal emitted from Conn’s electronic monitoring device, as well as with an escape vehicle that Wyatt had previously purchased with cash, registered in Montana and secreted in a parking garage in Pikeville, Kentucky.
Conn is scheduled to proceed to trial on the escape charges on June 11, 2018 in Lexington before Judge Reeves.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI and SSA-OIG investigated the case. Trial Attorney Dustin M. Davis of the Criminal Division’s Fraud Section and Trial Attorneys Ann Marie Blaylock and Rebecca Caruso of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
29 March 2018
“Porch Pirate” Pleads Guilty to Stealing PackagesRead the Press Release
CORPUS CHRISTI, Texas – A 38-year-old Corpus Christi man has been convicted of possessing stolen mail, announced U.S. Attorney Ryan K. Patrick along with Postal Inspector in Charge Adrian Gonzalez of the U.S. Postal Inspection Service (USPIS).
Christopher Escobedo admitted to stealing packages that the U.S. Postal Service (USPS) had left on the front porches of Corpus Christi residents between Dec. 31, 2017, and Jan. 8, 2018. Authorities identified Escobedo or his vehicle in video surveillance at a number of locations where packages were stolen. On one occasion, an observant neighbor confronted Escobedo as he attempted to take a package. The neighbor was able to supply the authorities with Escobedo’s description and a license plate number of the vehicle he was using. Postal inspectors used this information to track down Escobedo and link him to a number of other package thefts in the area.
“The USPIS is committed to ensuring customers’ mail is protected from theft and criminal activity,” said Gonzalez. “Our efforts to protect the nation’s mail system is a strategic part of our mission and one of our highest priorities. Postal inspectors will vigorously pursue anyone attempting to commit theft against the USPS and its customers.”
U.S. District Judge Nelva Gonzales Ramos accepted the plea today and set sentencing for July 19, 2018. At that time, Escobedo faces up to five years in federal prison and a possible $250,000 maximum fine.
The USPIS conducted the investigation with the assistance of the Corpus Christi Police Department. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Youngstown man charged for sharing images of young children being sexually assaultedRead the Press Release
A Youngstown man was charged in federal court for sharing images of young children being sexually assaulted.
Daniel B. Fleischer, 36, was charged with one count of receipt and distribution of child pornography.
Fleischer used his Kik account, accessed by his cell phone, to receive, distribute and possess child pornography, including images of young children being raped and sexually assaulted, according to court documents.
Law enforcement officials searched Fleischer’s home on Weston Avenue on March 28. Fleischer told police he viewed “hundreds of child pornography images” that depicted “young” boys and girls, according to court documents.
“These are cases with real victims, children whose lives will be forever changed because adults assaulted and violated them,” U.S. Attorney Justin Herdman said. “We will continue to work to prosecute those who re-victimize these children by sharing and downloading these images.”
This case is being investigated by the FBI, Ohio BCI and the Youngstown Police Department. It is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Worcester Man Pleads Guilty to Lying to Federal InvestigatorsRead the Press Release
BOSTON – A Worcester man pleaded guilty today in federal court in Worcester to lying to federal investigators involved in the investigation of Kevin A. Perry, a former Worcester restaurateur.
Christopher Slavinskas, 32, pleaded guilty to making a false statement to federal investigators engaged in a criminal investigation. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for June 29, 2018.
During the summer of 2017, federal investigators interviewed Slavinskas about the concealment of cash proceeds from illegal drug sales associated with Perry. Slavinskas told the investigators that he helped conceal $200,000 on behalf of Stacey Gala, Perry’s wife, and that he returned the $200,000 to Gala after approximately 30 days. In reality, Slavinskas concealed approximately $330,000 in cash proceeds from Perry’s illegal drug sales, but spent at least $130,000 of it on himself and others – returning only $200,000 of the $330,000 to Gala.
In October 2017, Perry pleaded guilty to federal charges of money laundering and fentanyl distribution and is awaiting sentencing. Gala and Joseph Herman, the former manager of The Usual, a restaurant previously owned by Perry, were indicted for conspiracy to commit money laundering in February 2018.
Slavinskas faces a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Raymond Moss, Acting Inspector in Charge of the United States Postal Inspection Service; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Greg A. Friedholm of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Waterloo Man Sentenced to Prison for Selling Crack CocaineRead the Press Release
A man who sold crack cocaine and had a shotgun in his house was sentenced today to more than a year in federal prison.
Johnston Phillips, age 64, from Waterloo, Iowa, received the prison term after an October 30, 2017, guilty plea to distribution of crack cocaine. At the guilty plea, Phillips admitted that he sold crack cocaine on March 14, 2017. During a search warrant at Phillips house a week later, law enforcement recovered a Mossberg shotgun. Phillips’ residence was also being used by other crack cocaine dealers to make sales. Phillips had previously been convicted of possession of crack cocaine and forgery in state court.
Phillips was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Phillips was sentenced to 14 months’ imprisonment. He must also serve a 6-year term of supervised release after the prison term. There is no parole in the federal system.
Phillips is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Ravi T. Narayan and Emily K. Nydle and were investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Iowa Division of Narcotics Enforcement, the Tri-County Drug Enforcement Task Force, the Waterloo Police Department, the Black Hawk County Sheriff’s Office, the Cedar Falls Police Department, the Cedar Rapids Police Department, the Iowa City Police Department, the Linn County Sheriff’s Office, and the Iowa State Patrol.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-2050.
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Violent Robbery Crew Member Sentenced in Brooklyn Federal Court to 18 Years’ Imprisonment for Cold Case MurderRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Yefferson Rodriguez-Lopez, a member of a violent robbery crew that operated in the New York metropolitan area from 1998 to 2003, was sentenced by United States District Judge Raymond J. Dearie to 18 years’ imprisonment and five years’ supervised release, following his guilty plea to a murder committed in 1999 during a robbery of a narcotics stash house. Rodriguez-Lopez was arrested on the federal charges in July 2016 and pleaded guilty in March 2017.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the sentence.
According to court filings, between 1998 and 2003, Rodriguez-Lopez was a member of a violent robbery crew that targeted drug dealers in and around New York City, including Brooklyn and Queens. The robbery crew typically involved between three and five participants; some members of the crew, armed with firearms, would enter an apartment to steal narcotics or currency, while other members of the crew waited outside to serve as lookouts and getaway drivers. After a robbery, members of the crew generally sold the narcotics they recovered in bulk to other drug traffickers. Over several years, the crew stole millions of dollars in cash, approximately 90 kilograms of cocaine and approximately 14 kilograms of heroin.
On March 6, 1999, the defendant participated in a robbery of a narcotics stash house in the Bronx. The defendant and a co-conspirator waited for the victim to enter the narcotics stash house, forcibly pushed themselves in and tied the victim’s hands behind his back. The defendant placed a gun to the victim’s head and when the victim jerked his head back, it caused the weapon to fire. Afterwards, the defendant drove away with other members of the robbery crew and discarded his gun. The defendant evaded arrest for several years by using different aliases and altering his fingerprints.
Mr. Donoghue extended his grateful appreciation to the DEA’s New York Drug Enforcement Task Force, who conducted the investigation. The task force is comprised of agents and officers of the DEA, New York City Police Department and the New York State Police.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Hiral D. Mehta and Soumya Dayananda are in charge of the prosecution.
The Defendant:
YEFFERSON RODRIGUEZ-LOPEZ
Age: 43
New York, New YorkE.D.N.Y. Docket No. 16-CR-275 (RJD)
United States Reaches Settlement with Cumberland County on ADA ProceduresRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced a settlement with Cumberland County under Title II of the Americans with Disabilities Act (ADA) for the County to identify an ADA Coordinator; to provide notice to those with disabilities on how to contact the ADA Coordinator; to establish an ADA grievance procedure; and to make its website more accessible to those with disabilities.
According to United States Attorney David J. Freed, the United States Attorney’s Office received a complaint from an individual with a disability that Cumberland County did not have a process by which the disabled could request accommodations or file complaints of inaccessibility, and the County did not have an ADA coordinator. After an investigation, with the County’s complete cooperation, the United States Attorney’s Office found that the complaint had merit.
Under the terms of the agreement, the County has named Holly Sherman as ADA Coordinator. The County will post on its Internet Home Page and in conspicuous locations in its public buildings notices that individuals who request accommodations and have complaints of inaccessibility should direct those issues to the ADA Coordinator. The notice must post an address, phone number, and email of the coordinator. The agreement also requires that the County establish an ADA Grievance Procedure and develop procedures to make the County’s webpages more accessible to those with disabilities.
“This agreement demonstrates Cumberland County’s commitment to ensuring that individuals with disabilities will have an equal opportunity to access and participate in the County’s government programs,” said U.S. Attorney David J. Freed. “With an ADA Coordinator, individuals with disabilities will now have a person in the County who can answer their questions, accept accommodations requests, and receive their complaints.”
This investigation was handled by Assistant United States Attorney Michael J. Butler. Those interested in finding out more about the ADA can access the ADA website at www.ada.gov.
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United Blood Nation Gang Associate Sentenced to 13 Years for Racketeering Conspiracy and Murder in Aid of RacketeeringRead the Press Release
CHARLOTE, N.C. – Briana Shakeyah Johnson, 22, of Concord, N.C., was sentenced today by U.S. District Judge Max O. Cogburn, Jr. to 156 months in prison and 5 years of supervised release on charges of conspiracy to participate in racketeering activity (RICO) and murder in aid of racketeering, for her involvement in the murders of Douglas and Deborah London, announced U.S. Attorney R. Andrew Murray of the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and court proceedings, Johnson, a/k/a “Breezy B” a/k/a “Breezy V,” was an associate of the Charlotte-area Valentine Blood set of the United Blood Nation gang (UBN or Bloods). Court documents show that Johnson met UBN gang member Malcolm Jarrell Hartley in April 2014 and became his girlfriend.
According to court documents, on May 25, 2014, three UBN members, Jamell Lamon Cureton, Nana Yaw Adoma and David Lee Fudge, robbed The Mattress Warehouse, a store owned by Douglas and Deborah London. The three were later charged in connection with that robbery. According to court records, Cureton and other Bloods gang members discussed that Douglas London was the only eye witness that could identify Cureton, and that he needed to be eliminated. As an associate of the Bloods, Johnson was present at gang meetings during which the Londons’ murder was planned.
The gang’s leadership authorized Hartley to proceed with the murder, and on October 23, 2014, Johnson drove Hartley to the Londons’ home in Lake Wylie, S.C. Johnson waited in the car while Hartley shot both victims, and then drove Hartley back to Charlotte, first stopping at Rahkeem McDonald’s house to dispose of the gun. Johnson and Hartley then returned to Hartley’s apartment where they met with other gang members. According to filed documents, while at the apartment, Hartley described the victims’ murders and the group celebrated. After the murders, Hartley was “ranked up” or “promoted” to a 2-Star General for carrying out the leadership’s orders.
To date, eight other Bloods gang members have been sentenced as a result of this investigation. Jamell Lamon Cureton, and Malcolm Jarrel Hartley were sentenced to life in prison for the double-murder of Douglas and Deborah London. Cureton received a second life sentence for the 2013 murder of Kwamne Clyburn. Rahkeem Lee McDonald was also sentenced to life in prison for his role in the Londons’ murder. David Lee Fudge was ordered to serve 26 years in prison. Ibn Rashaan Kornegay was sentenced to 23 years in prison. Nehemijel Maurice Houston was sentenced to 20 years in prison. Daquan Lamar Everrett was sentenced to 13 years in prison, and Centrilla Shardon Leach was ordered to serve 13 years in prison.
Three more defendants previously convicted at trial currently await sentencing: Randall Hankins, II, Nana Yaw Adoma, and Akheem Tahja McDonald were convicted of racketeering conspiracy charges in October 2017. Hankins was also convicted of two counts of murder in aid of racketeering and two counts of use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence for his role in the murder of the Londons. Adoma and Akheem McDonald were each convicted of one count of murder in aid of racketeering and one count of use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in death for Clyburn’s murder. Adoma was also convicted of one count of assault with a dangerous weapon in aid of racketeering and one count of use or carry of a firearm in relation to a crime of violence and possession of firearm in furtherance of a crime of violence, for his role in the armed robbery of the Londons’ business.
The investigation was led by the FBI, with the invaluable assistance of CMPD and the York County Sheriff’s Office. Assistant U.S. Attorney Don Gast is prosecuting the case.
Two Sent to Prison for Trafficking CocaineRead the Press Release
McALLEN, Texas – Two men have been ordered to federal prison following their convictions in a cocaine trafficking conspiracy, announced U.S. Attorney Ryan K. Patrick. Jesus A. Villarreal, 58, of Sullivan City, and Juan Cristobal Hernandez, 39, of Reynosa, Tamaulipas, Mexico, pleaded guilty Feb. 6, 2017.
Today, U.S. District Judge Ricardo Hinojosa ordered Villarreal and Hernandez to each serve 92 months, respectively. Villarreal will serve three years of supervised release following completion of his prison term. Not a U.S. citizen, Hernandez is expected to face deportation proceedings following his sentence.
Both admitted they conspired to possess with the intent to distribute cocaine. As part of their guilty pleas, each admitted to assisting with coordinating the trafficking of 108 kilograms of cocaine from McAllen to Houston from April 2 to April 9, 2015. Both were also held responsible for a total of 134 kilograms of cocaine as the court considered another narcotics seizure in which both men were involved.
Both men have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Rolando Martinez Jr., 33, of Rio Grande City, is also charged in the case. He is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the Drug Enforcement Administration (DEA) at 1-956-992-8400 or Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) at 1-866-347-2423.
The DEA and HSI conducted the investigation dubbed Operation Killing Time with the assistance of the Texas Department of Public Safety and task force officers from police departments in San Juan, McAllen, Palmview, Weslaco and Mission. Assistant U.S. Attorney Juan F. Alanis is prosecuting the case.
Two Out-of-State Men Indicted on Federal Fraud Charges Involving a Credit Card SchemeRead the Press Release
St. Louis, MO – Omar Leigh and Kolley Touray were indicted on multiple fraud counts involving a conspiracy to commit bank and mail fraud and aggravated identity theft.
According to court documents, the purpose of the conspiracy was to profit from the use of stolen Bank of America customers’ personal identifying information that they had purchased from the Dark Web. Leigh used the bank’s automated telephone service to request that the bank mail new credit cards and new personal identification numbers, “PINs,” to the addresses on file for the customers. Through use of software that allowed them to imitate the customers’ telephone numbers, the conspirators were able to defeat the bank’s verification process that relied on comparing the telephone number used to call the bank with the customers’ telephone number it had on file.
When the bank mailed the new cards and PINs to the addresses on file for the customers, Leigh and Touray drove to the customers’ homes and stole the credit cards and PINs from their mailboxes. Immediately after leaving the residences, Leigh and Touray drove to Bank of America automated teller machines to initiate cash advances on the accounts using the fraudulently obtained credit cards and PINs.
Omar Leigh, 25, Smyrna, GA, and Kolley Touray, 39, Milwaukee, WI, were indicted by a federal grand jury today on one felony count each of conspiracy to commit bank and wire fraud, four felony counts of bank fraud, one felony count of possession of stolen mail, one felony count of access device fraud, and five felony counts of aggravated identity theft.
If convicted, each count of conspiracy to commit bank and wire fraud, and bank fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million; possession of stolen mail carries a term of incarceration of 5 years and/or a fine of up to $250,000.00; and aggravated identity theft is a mandatory two years in prison consecutive to any other term of imprisonment. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Postal Inspection Service. Assistant United States Attorney Tracy Berry is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Two Former Airline Industry Executives Convicted of Orchestrating Multimillion Dollar Scheme to Steal Passenger Money from EscrowRead the Press Release
A federal jury in the District of New Jersey found the former chief executive officer and the former vice president of a now-bankrupt public air charter operator guilty yesterday for their roles in a scheme to steal millions of dollars in passenger money for future travel from an escrow account, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Special Agent in Charge Todd A. Damiani of the U.S. Department of Transportation Office of Inspector General’s New England Field Office.
Judy Tull, 73, and Kay Ellison, 58, both of Edenton, North Carolina, were each convicted of one count of conspiracy to commit wire fraud affecting financial institutions and to commit bank fraud, four substantive counts of wire fraud affecting financial institutions and three substantive counts of bank fraud following a seven-day trial. Tull is the former CEO of Myrtle Beach Direct Air and Tours (Direct Air), which was headquartered in Myrtle Beach, South Carolina, with operations in Daniels, West Virginia, and Ellison is its former vice president and managing partner. Sentencing has been scheduled for July 17, 2018 before U.S. District Judge Susan D. Wigenton of the District of New Jersey, who presided over the trial.
“Judy Tull and Kay Ellison stole passengers’ money to try and prop up their failing company,” said Acting Assistant Attorney General Cronan. “Their brazen scheme created a multimillion dollar shortfall that left passengers stranded at airports, and banks and credit card companies scrambling to pick up the pieces. “This important case is just the latest example of the pivotal role the Fraud Section plays in the Department of Justice’s ongoing efforts to combat white collar fraud.”
“This investigation demonstrates the Department of Transportation Office of Inspector General’s (DOT-OIG) commitment to protecting the traveling public from fraudulent schemes involving charter flight operations,” said DOT-OIG Regional Special Agent in Charge Damiani. “We will continue our vigorous efforts in preventing, detecting and prosecuting fraud that erodes the public’s confidence in the integrity of transportation-related goods and services.”
According to evidence presented at trial, from October 2007 through March 2012, Tull and Ellison engaged in a scheme to steal passengers’ money for future travel from an escrow account by artificially inflating the amount of money the defendants claimed they were entitled to receive, and by sending this falsified amount in a letter to the escrow bank telling the escrow bank to release the money. The evidence further established that to cover up their fraud, the defendants falsified profit and loss statements to make the company look like it was making money rather than losing money, and sent these falsified documents to credit card companies and banks to trick them into continuing to do business with the company.
Testimony at trial established that two financial institutions sustained losses of nearly $30 million for having to refund thousands of passengers their money that should have been held for them in escrow, but was actually stolen by the defendants as part of their fraud.
Robert Keilman, 73, of Marlboro, New Jersey, Direct Air’s former Chief Financial Officer, pleaded guilty to charges stemming from his role in this scheme and is awaiting sentencing.
This case was investigated by DOT-OIG. Trial Attorneys Michael T. O’Neill and Cory E. Jacobs of the Criminal Division’s Fraud Section are prosecuting the case. Former Fraud Section Trial Attorney L. Rush Atkinson also investigated the case.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Two Alaska Residents Charged for Attempting to Smuggle Drugs into PrisonRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that two Alaska residents have been charged for attempting to smuggle drugs into the State of Alaska Department of Corrections (“DOC”) Mat-Su Pretrial Correctional Facility (“Mat-Su Pretrial”) in Palmer.
Joshua Jacob Reed, 30, an inmate at Mat-Su Pretrial at the time of the offense, and Olivia Danielle Blake, 27, of Wasilla, were both named in the indictment. Reed is charged with (1) attempt to possess with the intent to distribute a controlled substance, and (2) attempt to possess contraband in prison. Blake is charged with (1) distribution of a controlled substance, and (2) attempt to provide contraband in prison.
According to the indictment, on or about Feb. 28, 2017, Blake allegedly attempted to pass drugs to Reed, who was an inmate at Mat-Su Pretrial at the time. Blake did so at Reed’s direction on the morning that Reed was set for trial in an unrelated state criminal case. The drugs that Reed and Blake attempted to smuggle into Mat-Su Pretrial included quantities of methamphetamine, heroin, and Buprenorphine, which is one of the narcotic drugs in Suboxone.
The law provides for a maximum sentence of 20 years in prison and a fine of $1 million, or both, for the most serious charges alleged in the indictment. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
The Federal Bureau of Investigation (“FBI”) conducted the investigation, with assistance from DOC, which led to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney Andrea W. Hattan.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Trio Pled Not Guilty to Conspiracy to Manufacture and Pass Counterfeit United States CurrencyRead the Press Release
United States Attorney Ron Parsons announced that a trio with ties to Oklahoma and North Carolina have been indicted by a federal grand jury for Conspiracy to Manufacture Counterfeit United States Currency and Passing of Counterfeit United States Currency.
Michael Glenn Ogden, age 37, Mary Ellen Autry, age 40, and Marcus Paul Franklin, age 41, were indicted on March 20, 2018. They appeared before U.S. Magistrate Judge Daneta Wollmann on March 20, 2018, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to the trio using printers, paper, and chemicals to convert legitimate $10 U.S. currency bills into counterfeit $100 U.S. currency bills. Using this equipment, they manufactured and passed thousands of dollars of counterfeit U.S. $100 bills in South Dakota and other states.
The charges are merely accusations and Ogden, Autry, and Franklin are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rapid City Police Department and the United States Secret Service. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Ogden, Autry, and Franklin were remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for May 29, 2018.
Three Cuban Nationals Plead Guilty to Conspiring to Steal Credit Card Numbers from Gas PumpsRead the Press Release
Three Cuban nationals who had been residing in Texas before their arrest pleaded guilty today to conspiracy to commit access device fraud, U.S. Attorney Duane A. Evans announced today. According to documents filed today in open court, all three defendants admitted that they agreed together and with others to obtain credit and debit card numbers that had been skimmed from gas pumps and use these numbers to make purchases.
YUSNIEL HERNANDEZ PEREZ (32), YADIER ALUIJAS FERNANDEZ (31), and HENRY DAVID MARTINEZ (23) admitted that they traveled to the Eastern District of Louisiana from Texas in July 2017. They traveled to locations in Louisiana where skimmers had been previously installed, returned to Texas, and then came back to Louisiana with counterfeit access devices, which they used to make purchases as a local merchant. A fourth defendant, ALAYN ALVAREZ CASTRO, was arrested in December 2017 in Miami, Florida and remains charged in this case.
Judge Feldman set sentencing for PEREZ, FERNANDEZ, and MARTINEZ for July 11, 2018 at 1:30 p.m. At sentencing, each faces a statutory maximum sentence of five years in prison, along with monetary penalties, supervised release, and mandatory restitution.
U.S. Attorney Evans commended special agents of the United States Secret Service, as well as Jefferson Parish Sheriff’s Deputies, who investigated the case and Assistant U.S. Attorney Hayden Brockett is in charge of the prosecution.
Texas Man Sentenced to 10 Years in Prison for Cocaine ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that VICTOR ESQUIVEL, age 28, of Brownsville, Texas, was sentenced today for charges relating to narcotics trafficking.
ESQUIVEL pled guilty on December 19, 2017, to conspiring to distribute and to possess with the intent to distribute 5 kilograms or more of cocaine hydrochloride. According to court documents, ESQUIVEL, along with co-defendants Roel RANGEL and Kevin DECUIR, conspired to distribute approximately 28 kilograms of cocaine hydrochloride.
Judge Ivan L. R. Lemelle sentenced ESQUIVEL to 120 months in the Bureau of Prisons, as well as 5 years of supervised release following the term of imprisonment.
U.S. Attorney Evans praised the work of Homeland Security Investigations. Assistant U.S. Attorney Nicholas D. Moses is in charge of the prosecution.
Tampa Man Sentenced for Gift Card Fraud SchemeRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday today sentenced Ravon Jackiel Forbes-Hodge (25, Tampa) to three years and six months in federal prison for credit card fraud and aggravated identity theft. The court also ordered him to pay $31,422 in restitution to victims of the fraud. Forbes-Hodge pleaded guilty on January 11, 2018.
According to court documents, Forbes-Hodge and others obtained stolen credit card account numbers and bank account information from various financial institutions. The conspirators purchased or stole reloadable gift cards and embossed them with their own names and the stolen account numbers. They then used the counterfeit cards at retailers throughout the Tampa Bay area to purchase merchandise that they later returned to different locations to receive store credit in the form of gift cards. The conspirators then sold the fraudulently obtained gift cards for cash.
Between February and June 2017, Forbes-Hodge used counterfeit credit cards and stolen account information to purchase thousands of dollars in merchandise from Home Depot stores. He then returned the merchandise to different Home Depot locations and obtained store credit in the form of Home Depot gift cards. Forbes-Hodge sold thousands of dollars in fraudulently obtained Home Depot gift cards in exchange for cash. He was responsible for at least 55 fraudulent purchases, using approximately 30 different counterfeit credit cards and stolen account information during this period.
This case was investigated by the United States Secret Service, the Hillsborough County Sheriff’s Office, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
Stamford Man Sentenced to 41 Months in Prison for Trafficking MarijuanaRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that WILLIAM REYES, also known as “Big Head,” 36, of Stamford, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 41 months of imprisonment, followed by three years of supervised release, for trafficking marijuana.
According to court documents and statements made in court, in the summer of 2017, REYES and John Koukouras utilized a residence located at 40 Guernsey Hill Road in Lagrangeville, New York, to grow, process and distribute marijuana. The investigation revealed that REYES was also being supplied with large quantities of marijuana by Gustavo Garcia, of Queens, New York. In July 2017, Garcia delivered approximately 40 pounds of marijuana to REYES in exchange for approximately $80,000.
REYES was arrested on July 26, 2017. On that date, investigators conducted court-authorized searches of REYES’ Stamford residence and the Lagrangeville residence. A search of the Stamford residence revealed approximately 18 kilograms of marijuana, paraphernalia associated with narcotics distribution, and $71,004 in cash, and a search of the Lagrangeville residence revealed 140 marijuana plants and related equipment.
Judge Arterton ordered REYES to forfeit his interest in both the $71,004 in cash seized from his residence, and a 2012 Toyota Camry.
REYES has been detained since his arrest. On January 5, 2018, he pleaded guilty to one count of conspiracy to possess with intent to distribute marijuana.
Koukouras and Garcia pleaded guilty to related charges. On February 7, 2018, Koukouras was sentenced to 24 months of imprisonment. Garcia awaits sentencing.
This matter is being investigated by the Drug Enforcement Administration, Stamford Police Department and New York State Police. The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Sarala V. Nagala.
Springfield Man Sentenced for Heroin DistributionRead the Press Release
BOSTON – A Springfield man was sentenced yesterday in federal court in Springfield for distribution of heroin.
Hector Pabon, 42, was sentenced by U.S. District Court Judge Mark G. Mastroianni to seven years in prison and six years of supervised release. In June 2015, Pabon pleaded guilty to one count of distribution and possession with intent to distribute heroin.
Pabon was arrested and charged in April 2014 for distributing heroin in Hampden County.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Office, made the announcement. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office prosecuted the case.
Southwest Honkeys Gang Member Pleads Guilty to Meth Conspiracy While IncarceratedRead the Press Release
SPRINGFIELD, Mo. – A Southwest Honkeys gang member pleaded guilty in federal court today to operating a methamphetamine conspiracy from his prison cell.
Nathaniel R. Eisenhour, 30, of Springfield, Mo., pleaded guilty before U.S. Magistrate Judge David P. Rush to participating in a conspiracy to distribute methamphetamine from Dec. 15, 2016, to April 20, 2017. Eisenhour was incarcerated in the custody of either the Greene County jail or the Missouri Department of Corrections for almost the entire period of the conspiracy.
Eisenhour, a member of the Southwest Honkeys prison gang, admitted that he communicated with associates while he was incarcerated to sell methamphetamine and to collect money for past drug debts.
Eisenhour was arrested on Dec. 21, 2015, on an outstanding parole violation warrant. Eisenhour, while incarcerated, instructed one of his associates to take the money from drug sales to a family member. On Jan. 30, 2017, federal agents seized $31,800 from the family member who was holding the money for Eisenhour. In a jail call, Eisenhour had previously authorized another family member to obtain $200 from that same stash. The total of $32,000, including the seized amount and the $200 that was removed before the seizure, represented approximately 2.2 kilograms in methamphetamine sales, based on the price Eisenhour discussed with one of the associates who distributed for him after his arrest.
Under federal statutes, Eisenhour is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Josephine Larison. It was investigated by the Springfield, Mo., Police Department, the Ozark, Mo., Police Department, the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
South Carolina Man Indicted for $1 Million Investment Scheme and Tax EvasionRead the Press Release
CHARLOTTE, N.C. – A criminal bill of indictment was unsealed today in federal court, charging Nickolas M. Godfrey, 39, of Fort Mill, South Carolina, with securities fraud, wire fraud, and transactional money laundering in connection with a $1 million investment fraud scheme and a related tax evasion scheme, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Murray is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI).
According to allegations contained in the indictment, from 2012 to at least 2015, Godfrey obtained more than $1 million by engaging in a Ponzi scheme through his company, Coast to Coast Business Funding LLC (Coast to Coast), which purportedly provided short-term cash advances to businesses. The indictment alleges that Godfrey induced at least 20 victims to invest with Coast to Coast, by falsely representing that the company was successfully generating substantial revenue. Godfrey maintained a website for Coast to Coast, which also falsely represented that the company was accredited by the Better Business Bureau. To further solicit investments from victims, Godfrey made numerous false representations to victims, including promising returns of as much as 73.5%.
Contrary to promises made to victim investors, Godfrey used victims’ money to pay for personal expenditures and for the expenses of his other businesses, and to make Ponzi-type payments to earlier victims.
When victims complained about missed payments and demanded more information, Godfrey tried to appease them by creating fake documents, including fake financial statements for Coast to Coast, and a fake list of clients to which Coast to Coast had purportedly provided financing.
In addition to the investment fraud scheme, the indictment alleges that Godfrey engaged in in a tax evasion scheme by evading the payment of tax liabilities assessed by the IRS related to his ownership and operation of two hair salons, Bliss Day Spa & Salon (Bliss) in Pineville, N.C., and Alter Ego Salon & Day Spa (Alter Ego) in Charlotte. The indictment alleges that Godfrey committed tax evasion by, among other things, failing to pay federal employment taxes that he had withheld from the paychecks of employees at Bliss and Alter Ego, and taking multiple steps to thwart the IRS’ collection efforts. For example, the indictment alleges that Godfrey commingled the amounts withheld from his employees’ paychecks with other business and personal funds, including money obtained from victim investors, and used those funds to pay for personal expenses. Godfrey also lied to IRS employees attempting to collect the unpaid taxes, according to the allegations in the indictment. In addition, as alleged in the indictment, Godfrey filed individual U.S. Federal Income Tax Returns for the years 2009 through 2012 that failed to report accurately the net income he received from his businesses.
Godfrey had his initial appearance today before U.S. Magistrate Judge David Keesler. The securities fraud charge carries a penalty of up to 20 years in prison and a $5 million fine. The wire fraud charge carries a penalty of up to 20 years in prison and a $250,000 fine. The transactional money laundering charge carries a penalty of up to 10 years in prison and a fine of up to $250,000 or not more than twice the amount of the criminally derived property involved in the transaction. The tax evasion charge carries a penalty of five years in prison and a $250,000 fine.
All charges contained in the indictment are allegations. The defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
The investigation was led by the FBI and IRS-CI. Assistant United States Attorney Daniel Ryan, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Social Services Director of a Nursing Home Charged with ID Theft from Elderly ResidentsRead the Press Release
St. Louis, MO – Jabbaar Smith, 37, of St. Louis, was indicted today on seven counts of identity theft and two counts of aggravated identity theft.
The indictment alleges between 2015 and 2016, Smith was employed as a Social Services Director at an area nursing home. His duties included purchasing items for the residents from funds maintained in their personal accounts. Smith would purchase items from companies through the internet on behalf of nursing home residents who were over the age of 60. Smith then returned some of the merchandise and the vendor mailed refund checks made payable to the elderly nursing home residents. Smith intercepted the refund checks, forged the residents’ names as endorsements, and deposited the refund checks into his personal bank account.
Smith also impersonated an elderly resident during a telephone call with the Social Security Administration and, based on information provided by Smith, the administrative agency unwittingly changed the resident’s direct deposit information to Smith’s personal bank account. Social Security payments for that resident were then deposited into Smith’s personal bank account.
If convicted, identity theft carries a maximum penalty of 15 years in prison and a $250,000 fine on each count and aggravated identity theft carries a mandatory two-year term of imprisonment. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the Social Security Administration and St. Louis County Police Department. Assistant U.S. Attorney Tracy Berry is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
This indictment coincides with the United States Department of Justice coordination of a nationwide elder fraud sweep. Attorney General Jeff Sessions and law enforcement partners are coordinating the largest sweep of elder fraud cases in history. The cases involve more than two hundred and fifty defendants from around the globe who victimized more than a million Americans. In total, the charged elder fraud schemes caused losses of more than half a billion dollars. The Department coordinated its announcement with the FTC and state Attorneys General, who independently filed numerous cases targeting elder frauds within the sweep period.
Elder fraud complaints
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
Sober Home Owner Sentenced to over Five Years in PrisonRead the Press Release
Albert Samukia Jones Saye, a/k/a “Albert Jones,” the owner of several now-defunct sober homes was sentenced in federal court today to more than 5 years in prison and ordered to pay over $2 million in restitution, for his role in a health care fraud conspiracy.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Jimmy Patronis, Florida Chief Financial Officer; Michael J. Waters, Special Agent in Charge, Amtrak Office of Inspector General (Amtrak-OIG); Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA); and Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), made the announcement.
Jones, 27, of Boynton Beach, was sentenced by U.S. District Judge Robin L. Rosenberg to 71 months in prison, to be followed by 3 years of supervised release and was ordered to pay $$2,071,406 in restitution. In January 2018, Jones pled guilty to participating in a health care fraud conspiracy and maintaining a drug-involved premises (Case No. 17-CR-80229).
According to court documents, Jones owned and operated several recovery residences, commonly known as “sober homes,” in Palm Beach County from 2014-2016, including “No Drug Zone,” “Carter Care Recovery,” and “A T Way.” When properly managed, these recovery residences, operated as alcohol and drug-free living environments for individuals attempting to abstain from substance abuse.
Jones used his sober homes to facilitate a health care fraud scheme. Jones referred more than 100 residents for medically unnecessary urine and saliva tests to Reflections Treatment Center, in exchange for kickbacks from Reflection’s owner, Kenneth Chatman. In some cases, treatment center workers would forge patient signatures on sign-in sheets and submit their own bodily fluids for the tests. In return for referring insured residents for the treatment and testing, Chatman would provide kickbacks and bribes to Jones.
To further defraud insurance companies, Jones would encourage drug use among his insured residents, even providing and using drugs with them, to cause “relapses,” which would extend their stays in his sober homes and lead to more unnecessary tests at Reflections. To keep the scheme going, Jones, Chatman, and other co-conspirators actively recruited people with medical insurance to reside in the sober homes by offering bribes in the form of free or reduced rent, money, controlled substances and other benefits. In exchange, the residents would attend drug treatment and submit to regular and random drug testing at Reflections. During the time-period in which the crimes were committed, 36 insurance companies paid out more than $2 million in fraudulent medical claims to Reflections. In May 2017, Chatman was sentenced to 27 years in prison for his role in the scheme and other offenses (Case No. 17-CR-80013).
This case is the result of the work of the Greater Palm Beach Health Care Fraud Task Force. The Task Force’s ongoing investigation into substance abuse treatment fraud in the Southern District of Florida has resulted in 17 convictions to date. Agencies of the Task Force include the FBI, IRS-CI, the Florida Division of Investigative and Forensic Services, Amtrak OIG, DOL-EBSA, and NICB.
Mr. Greenberg commended the investigative efforts of all law enforcement agencies connected with the Task Force, as they continue to combat sober home abuses and health care fraud.
This case is being prosecuted by Assistant U.S. Attorneys A. Marie Villafaña and Alexandra Chase.
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.
Six MS-13 Members Born in El Salvador Indicted in Maryland on Charges Ranging from Racketeering Conspiracy, Murder, and Attempted MurderRead the Press Release
A federal grand jury has indicted today six MS-13 members, five of whom were unlawfully in the United States, on charges in connection with their MS-13 gang activities, including racketeering conspiracy; murder in aid of racketeering; violent crimes in aid of racketeering; use, carry and possession of a firearm during and in relation to a crime of violence; and conspiracy to commit murder in aid of racketeering.
The indictment was announced by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Acting U.S. Attorney Stephen M. Schenning for the District of Maryland; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Baltimore Office; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Baltimore Field Division; Police Chief Timothy J. Altomare of the Anne Arundel Police Department and State Attorney Wes Adams of the Anne Arundel State’s Attorney Office.
Charged in the nine-count indictment are alleged MS-13 members and associates Moises Alexis Reyes-Canales aka Sicopata, 19; Marlon Cruz-Flores, aka Little S, 22; Fermin Gomez-Jimenez, 20; Manuel Martinez-Aguilar, aka El Lunatic and Zomb, 19; Juan Carlos Sandoval-Rodriguez, aka Picaro, El Pastor, and Gasper, 20; and David Diaz-Alvarado, 20. All the defendants except Cruz Flores, of Annapolis, Maryland, were illegally residing in Annapolis.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Anne Arundel County, Prince George’s County, Montgomery County and Frederick County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to the indictment, at least prior to in or about 2015, and continuing through at least in or about 2017, Reyes-Canales, Cruz-Flores, Gomez-Jimenez, and Martinez-Aguilar, participated in a racketeering conspiracy that included assaults, murder, attempted murder, robbery, and drug trafficking.
According to the indictment, MS-13 members and associates conspired to murder a rival gang member. On or about March 11, 2016, Sandoval-Rodriguez lured the victim to a park in Annapolis, Maryland with the intent to murder the victim. On or about that same date, Cruz-Flores, Gomez-Jimenez, Sandoval-Rodriguez, and Diaz-Alvarado, and other members and associates of MS-13 murdered the victim in Annapolis, for the purpose of gaining entrance to, maintaining, and increasing position in MS-13.
According to the indictment, on Oct. 23, 2016, Reyes-Canales, Cruz-Flores, Gomez-Jimenez, and Martinez-Aguilar conspired to and attempted to murder two victims in Annapolis, for the purpose of gaining entrance to, maintaining, and increasing position in MS-13. Reyes-Canales, Cruz-Flores, Gomez-Jimenez, and Martinez-Aguilar, and other members and associates of MS-13 attempted to kill one of the victims by stabbing the victim multiple times and attempted to kill a second victim by shooting and stabbing the victim multiple times.
All of the defendants are currently detained on related federal or state criminal charges. Initial appearances have not yet been scheduled.
An indictment is not a finding of guilt. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by HSI Baltimore, ATF Baltimore, Anne Arundel Police Department and Anne Arundel State’s Attorney Office. Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Seema Mittal, as well as Special Assistant U.S. Attorney Samantha Mildenberg of the District of Maryland are prosecuting this case.
Six Defendants Charged in Superseding Indictment with Narcotics ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a superseding indictment charging six defendants with narcotics conspiracy and possession of firearms in furtherance of a drug trafficking crime. Named in the indictment are:
• Shawn Woods, 26, of Buffalo, NY; • Mikel Lowe, 24, of Buffalo, NY; • Aaron Mack, 26, of Buffalo, NY; • Michael Walker, 26, of Buffalo, NY; • Shameris Washington, 20, of Buffalo, NY; and
• Maurice Rice, 20, of Buffalo, NY.Some of the defendants are also facing additional charges of possession with intent to distribute fentanyl, heroin, butyryl fentanyl, furanyl fentanyl, and U-47700, maintaining a drug premises, and possession with intent to distribute crack cocaine and marijuana. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that according to the superseding indictment, the defendants are charged with trafficking heroin, cocaine, crack cocaine, fentanyl and other illegal narcotics over the course of seven years in the Western New York area. The defendants are also accused of possessing numerous firearms in furtherance of their drug distribution activities.
A detention hearing is scheduled for the six defendants on March 30, 2018 at 11:00 a.m. before U.S. Magistrate Judge H. Kenneth Schroeder.The superseding indictment 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 Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Lackawanna Police Department, under the direction of Chief James Michel; and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard.
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.
Sentencings for March 27 - March 28, 2018Read the Press Release
TREVOR SAMUEL BOYD, 25, of Mills, Wyoming was sentenced by Federal District Court Judge Alan B. Johnson on March 27, 2018 for being a felon and unlawful user of a controlled substance in possession of a firearm . Boyd was arrested in Mills, Wyoming. He received forty-one months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $400.00 fine. This case was investigated by the US Bureau of Alcohol, Tobacco, and Firearms.
ROEL MENDOZA-CONTRERAS, 53, of Ciudad Obregon, Sonora, Mexico was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 26, 2018 for illegal re-entry of a previously deported alien into the Unites States. Mendoza-Contreras was arrested in Cheyenne, Wyoming. He received twenty-four months of imprisonment, to be followed by thirty-six months of supervised release, ordered to pay a $100.00 special assessment, and is subject to deportation. This case was investigated by the US Immigration and Customs Enforcement Agency.
EDGAR LUJAN-PEREZ, 24, of Chihuahua, Mexico was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 26, 2018 for illegal re-entry of a previously deported alien into the United States. Lujan-Perez was arrested in Casper, Wyoming. He received time served plus 10 days to allow for deportation proceedings, and ordered to pay a $100.00 special assessment to be remitted at the time of deportation. This case was investigated by the US Immigration and Customs Enforcement Agency.
DERRICK EARL ARGUE, 24, of Gillette, Wyoming was sentenced by Federal District Court Judge Scott W. Skavdahl on March 28, 2018 for transportation of child pornography. Argue was arrested in Gillette, Wyoming. He received one hundred twenty months of imprisonment, to be followed by one hundred twenty months of supervised release, and ordered to pay a $100.00 special assessment and a $5,000.00 Justice for Victims Trafficking Act special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
PEDRO JOSE ROSALES-TRUJILLO, 49, of Bachiniva, Chihuahua, Mexico was sentenced by Federal District Court Judge Alan B. Johnson on March 28, 2018 for illegal re-entry of a previously deported alien into the United States. Rosales-Trujillo was arrested in Cheyenne, Wyoming. He received thirty-seven months of imprisonment and ordered to pay a $100.00 special assessment. This case was investigated by the US Immigration and Customs Enforcement Agency.
Rapid City Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Receipt of Child Pornography and Possession of Child Pornography.
Caleb Oien, age 22, was charged on March 20, 2018. Oien appeared before U.S. Magistrate Judge Daneta Wollmann on March 26, 2018, and pleaded not guilty to the charges. The penalty upon conviction is a mandatory minimum of 5 years up to 20 years in prison and/or a $250,000 fine, a minimum of 5 years up to lifetime supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Oien knowingly receiving and possessing images of child pornography between July 2017 and January 2018 at Rapid City. The charges are merely an accusation and Oien is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah Collins is prosecuting the case.
Oien was released pending trial. A trial date has not been set.
Radiation Therapy Company Agrees to Pay up to $11.5 Million to Settle Allegations of False Claims and KickbacksRead the Press Release
DALLAS – Texas-based SightLine Health LLC (SightLine), which operates radiation therapy centers throughout the United States, has agreed to settle a False Claims Act lawsuit alleging that it knowingly submitted claims to the Medicare program that violated the Anti‑Kickback Statute, the Justice Department announced today. Together with Integrated Oncology Network Holdings LLC (ION), which acquired SightLine in 2011, SightLine has agreed to pay the government up to $11.5 million. The announcement was made today by U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and instead is based on the best interests of the patient. It prohibits anyone from offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. Claims submitted in violation of the Anti-Kickback Statute may subject the claimant to liability under the False Claims Act.
The settlement announced today resolves allegations that SightLine violated the Anti-Kickback Statute and the False Claims Act by targeting physicians that were able to refer patients to its cancer treatment centers, and paid those physicians a share of its profits pursuant to investment arrangements that were set up to allow physicians to profit from their referrals. Specifically, the United States alleged that SightLine formed a series of leasing companies in which referring physicians were permitted to invest, and through which SightLine allegedly distributed the profits that its physician-investors generated by referring cancer patients for radiation therapy.
“As the professionals charged with recommending and referring medical procedures for our community, physicians’ primary motivation must remain the well-being of their patients,” said U.S. Attorney Erin Nealy Cox. “Today’s settlement demonstrates our determination to eliminate complex business ventures that improperly interpose financial considerations into our physicians’ medical judgment.”
“Investment arrangements that are structured to improperly compensate physicians for referrals can encourage physicians to make decisions based on financial gain rather than the best interest of their patients,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice is committed to preventing illegal inducements, in whatever form, that undermine the integrity of our public health programs.”
In addition to resolving their alleged False Claims Act liability, ION, SightLine, and their related entities have entered into a five-year Corporate Integrity Agreement with the HHS-OIG. This agreement is intended to increase accountability and transparency and to deter future misconduct. The Corporate Integrity Agreement includes internal and external monitoring of the relationships between the ION and SightLine entities and referring physician investors.
“Companies seeking to boost profits by paying physicians kickbacks for patient referrals undermine impartial medical judgment and increase health care costs for everyone,” said Chief Counsel to the HHS Inspector General Gregory Demske. “We will continue to investigate such illegal, wasteful business arrangements in order to protect government health programs and the patients served by them.”
The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The act permits private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to share in any recovery. The act also allows the Government to take over the case, as it did here in part. The whistleblower will receive up to $1.725 million.
This matter was handled by the Assistant U.S. Attorney Kenneth Coffin of the U.S. Attorney’s Office for the Northern District of Texas, the Justice Department’s Civil Division, and the HHS Office of the Inspector General.
The case is captioned United States ex rel. IIRT, LLC v. Sightline Health LLC, et al.., Civil Action No. 3-15CV-3202N (N.D. Tex.). The claims resolved by this settlement are allegations only and there has been no determination of liability.
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Radiation Therapy Company Agrees to Pay up to $11.5 Million to Settle Allegations of False Claims and KickbacksRead the Press Release
Texas-based SightLine Health LLC (SightLine), which operates radiation therapy centers throughout the United States, has agreed to settle a False Claims Act lawsuit alleging that it knowingly submitted claims to the Medicare program that violated the Anti‑Kickback Statute, the Justice Department announced today. Together with Integrated Oncology Network Holdings LLC (ION), which acquired SightLine in 2011, SightLine has agreed to pay the government up to $11.5 million.
The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and instead is based on the best interests of the patient. It prohibits anyone from offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. Claims submitted in violation of the Anti-Kickback Statute may subject the claimant to liability under the False Claims Act.
The settlement announced today resolves allegations that SightLine violated the Anti-Kickback Statute and the False Claims Act by targeting physicians that were able to refer patients to its cancer treatment centers, and paid those physicians a share of its profits pursuant to investment arrangements that were set up to allow physicians to profit from their referrals. Specifically, the United States alleged that SightLine formed a series of leasing companies in which referring physicians were permitted to invest, and through which SightLine allegedly distributed the profits that its physician-investors generated by referring cancer patients for radiation therapy.
“Investment arrangements that are structured to improperly compensate physicians for referrals can encourage physicians to make decisions based on financial gain rather than the best interest of their patients,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice is committed to preventing illegal inducements, in whatever form, that undermine the integrity of our public health programs.”
“As the professionals charged with recommending and referring medical procedures for our community, physicians’ primary motivation must remain the well-being of their patients,” said U.S. Attorney Erin Nealy Cox. “Today’s settlement demonstrates our determination to eliminate complex business ventures that improperly interpose financial considerations into our physicians’ medical judgment.”
In addition to resolving their alleged False Claims Act liability, ION, SightLine, and their related entities have entered into a five-year Corporate Integrity Agreement with the HHS-OIG. This agreement is intended to increase accountability and transparency and to deter future misconduct. The Corporate Integrity Agreement includes internal and external monitoring of the relationships between the ION and SightLine entities and referring physician investors.
“Companies seeking to boost profits by paying physicians kickbacks for patient referrals undermine impartial medical judgment and increase health care costs for everyone,” said Chief Counsel to the HHS Inspector General Gregory Demske. “We will continue to investigate such illegal, wasteful business arrangements in order to protect government health programs and the patients served by them.”
The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The act permits private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to share in any recovery. The act also allows the Government to take over the case, as it did here in part. The whistleblower will receive up to $1.725 million.
This matter was handled by the U.S. Attorney’s Office for the Northern District of Texas, the Justice Department’s Civil Division, and the HHS Office of the Inspector General.
The case is captioned United States ex rel. IIRT, LLC v. Sightline Health LLC, et al.., Civil Action No. 3-15CV-3202N (N.D. Tex.). The claims resolved by this settlement are allegations only and there has been no determination of liability.