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28 March 2018
Chicago Man Who Sold Crack Cocaine in Cedar Rapids Sentenced to over Fifteen Years’ ImprisonmentRead the Press Release
A man who sold crack cocaine in Cedar Rapids for a year was sentenced on March 27, 2018, to more than 15 years in federal prison.
Soy Franklin, age 36, originally from Chicago, Illinois, received the prison term after a November 6, 2017, guilty plea to distribution of cocaine base near a protected location.
In a plea agreement, Franklin admitted that he sold crack cocaine in Cedar Rapids, Iowa, from July 2016 to July 2017. Franklin further admitted that he sold crack cocaine to a confidential police informant on five separate occasions. On two occasions, Franklin sold crack cocaine while near an elementary school.
Franklin was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. He was sentenced to 188 months’ imprisonment. Franklin must also serve a six-year term of supervised release after the prison term. There is no parole in the federal system. Franklin is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Drew O. Inman and investigated by the Cedar Rapids Police Department, the Iowa Division of Narcotics Enforcement, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 17-CR-40.
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Channelview Woman Sentenced for Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas - A 36-year-old Channelview, Texas woman has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Jessica Burgos pleaded guilty on Dec. 13, 2017, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 168 months in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, from March 2015 to March 2017, Burgos was involved in a methamphetamine distribution organization which trafficked more than 30 kilograms of drugs through the Houston, Beaumont and Lufkin areas. As members of the conspiracy began being arrested on drug related charges, other members filled leadership positions within the organization. In early 2017, Burgos took over leadership of the organization when her nephew and co-defendant, Brian Garcia, was arrested and imprisoned. Burgos was arrested on Mar. 22, 2017 and indicted by a federal grand jury on Aug. 10, 2017.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Michelle S. Englade.
Canadian Man Sentenced in Case Involving Largest Seizure of Cocaine in District HistoryRead 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 Parminder Sidhu, 43, of Brampton, Ontario, who was convicted of conspiracy to export from the United States five kilograms or more of cocaine, was sentenced to 15 years (180 months) in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that between 2009 and May 10, 2011, the defendant conspired with Michael Bagri, Ravinder Arora, Alvin Randhawa, Gursharan Singh, and Harinder Dhaliwal to export cocaine from the United States to Canada. In September 2010, Sidhu hired defendant Bagri to travel to California to pick up cocaine. Defendant Bagri then hid 97 kilograms of cocaine in a false compartment in the floor of a tractor trailer. The tractor trailer was then driven to Cheektowaga, NY where it was turned over to defendant Ravinder Arora. Defendant Arora then proceeded to Canada. At the Lewiston-Queenston Bridge, Special Agents with the Department of Homeland Security and Customs and Border Patrol seized the 97 kilograms of cocaine from the false compartment during a secondary inspection.
On May 1, 2011, Sidhu directed defendant Bagri to travel once again to California. After hiding another 26 kilograms of cocaine in another tractor trailer, the rig was driven to a truck stop in Pembroke, N.Y. The tractor trailer was then picked up by a driver hired by Parminder Sidhu. As the driver exited the truck stop, Bagri followed behind in another vehicle. Agents later stopped the tractor trailer and Sidhu’s vehicle and seized the 26 kilograms of cocaine.
During the execution of a search warrant at Sidhu’s residence in Canada, agents discovered drug ledgers which detailed nine addition smuggling trips in 2009 and 2010. These trips involved approximately 1,617 kilograms of cocaine being transported from the United States into Canada.
All six defendants have been convicted and sentenced.
Today’s sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in- Charge Kevin Kelly; Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations; the Peel Regional Police Department, under the direction of Chief Jennifer Evans; the Canada Border Services Agency, under the direction of Rick Comerford; Regional Director General, Southern Ontario Region; and the Toronto Police, under the direction of Chief William Blair.
CEO and President of Premium Ticket Resale Business Pleads Guilty to Running Multimillion-Dollar Ponzi SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JASON NISSEN pled guilty today to defrauding victims of more than $60 million by falsely representing that he was using the victims’ money to further a profitable, multimillion-dollar wholesale ticket business. NISSEN pled guilty before U.S. District Judge Paul A. Engelmayer, and is scheduled to be sentenced on August 21, 2018.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he admitted in court today, Jason Nissen’s pitch to investors about access to premium sports and entertainment tickets was a sham. His investment scheme was really a Ponzi scheme. Now he awaits sentencing for his admitted swindle.”
According to allegations in a Complaint and other documents filed in federal court, as well as statements made in public court proceedings:
Since at least in or about 2010, JASON NISSEN has operated a ticket resale business (the “Ticket Company”) through which NISSEN purchased large quantities of premium tickets for sporting and entertainment events, and then resold such tickets for a profit.
The Ticket Company is a ticket resale business located in Manhattan, New York, of which NISSEN was the chief executive officer and president. The Ticket Company’s website stated that “[The Ticket Company] is an industry leader in providing VIP access and premium tickets to all concerts, Broadway theatre, red carpet premieres and sporting events worldwide . . . the Ticket Company stocks one of the largest revolving inventories for sports, concerts, and theatre worldwide.”
From at least in or about 2015 to in or about May 2017, NISSEN defrauded multiple investors in ticket deals arranged by the Ticket Company of tens of millions of dollars. NISSEN represented to these investor victims that he would use their money to purchase bulk quantities of premium tickets to sporting and entertainment events such as the Super Bowl (football), the World Cup (soccer), the U.S. Open (tennis), and “Hamilton” (Broadway musical), and then resell the tickets at a profit. However, in truth and in fact, NISSEN used the victims’ money in large part to repay other victims and to enrich himself.
To further perpetuate his fraudulent scheme and to raise additional sums from victims, NISSEN falsified financial documents and inflated accounts receivable ledgers, which NISSEN presented to certain victims as purported proof that their money was being used to purchase premium tickets for resale.
In total, JASON NISSEN defrauded victims of more than $60 million.
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NISSEN, 45, of Roslyn, New York, pled guilty to one count of wire fraud, which carries a maximum term of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Douglas S. Zolkind and Lara Pomerantz are in charge of the prosecution.
Buffalo Man Sentenced on Heroin and Fentanyl ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Francis Tessina, 45, of Buffalo, NY, who was convicted of possession with intent to distribute heroin and fentanyl, was sentenced to 48 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that on March 9, 2015, the defendant sold heroin and fentanyl to an individual cooperating with law enforcement. The following day, as Tessina was again preparing to sell heroin and fentanyl to the same person, he was arrested.The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, the Hamburg Police Department, under the direction of Chief Gregory Wickett, and the Evans Police Department, under the direction of Chief Douglas Czora.
Brooklyn Man Sentenced to 80 Months’ Incareration for Bank Fraud and Aggravated Identity TheftRead the Press Release
Bright Ogodo, 43, of Brooklyn, New York, was sentenced today to 80 months in prison following his conviction of bank fraud and aggravated identity theft, announced United States Attorney Louis D. Lappen.
In sentencing Ogodo, the court found that Ogodo was a leader of a bank fraud and aggravated identity theft ring that used “runners,” to pose as TD Bank customers by using false drivers’ licenses and other means of identification of the TD Bank customers, including their names, social security numbers, and dates of birth. As part of his guilty plea, Ogodo had admitted that he recruited the runners, drove the runners to TD Bank branches in the Philadelphia area, as well as in New York, New Jersey, Connecticut, and Delaware, gave the runners the false drivers’ licenses and other means of identification, and instructed them how to access the TD Bank customers’ accounts. Ogodo had also admitted that he and the runners deposited large-dollar counterfeit checks and small amounts of cash and money orders into the bank accounts, thereby learning the account numbers (if they were not already known) and also as a way of being able to know the exact date, location, and amount of the last deposit into the account, which co-schemers then used to set up on-line access to the accounts. Ogodo admitted that the runners, posing as the true account holders, obtained new ATM cards tied to the TD Bank customers’ checking accounts, and then one or more co-schemers, including defendant Ogodo himself, began to deplete the funds in that checking account by using the newly-obtained ATM cards to withdraw cash and purchase merchandise and money orders. Ogodo also admitted that he transferred funds from the TD Bank customers’ existing home equity lines of credit (HELOC) into the checking accounts that were tied to the ATM cards in the possession of defendant Ogodo and other co-schemers, which allowed defendant Ogodo and other co-schemers to obtain over $523,000 from the TD Bank accounts. Ogodo admitted that he intended to cause TD Bank to sustain more than $785,000 in losses, as that is the amount of counterfeit checks and HELOC and other transfers made into the checking accounts tied to the ATM cards in the co-schemers’ possession.
The case was investigated by the Bureau of Immigration and Customs Enforcement, Homeland Security Investigations, and was prosecuted by Assistant United States Attorney Michael S. Lowe.
Brooklyn Man Charged with Conspiring to Rob Federal Express TruckRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Angel M. Melendez, Special Agent in Charge of the Department of Homeland Security, Homeland Security Investigations (“HSI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced the arrest of STANLEY ROGERS for conspiring to rob a Federal Express truck transporting diamonds from wholesale jewelry centers in the diamond district. ROGERS was arrested Monday in Brooklyn, New York, and was presented before Magistrate Judge Barbara C. Moses in Manhattan federal court.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Stanley Rogers concocted a potentially dangerous scheme to assault a FedEx truck driver with a tranquilizer and then steal the precious gems inside the truck. Thankfully his alleged scheme was foiled when he attempted to seek the assistance of an undercover police officer.”
Special Agent in Charge Angel M. Melendez, said “Through our New York City Airport Border Enforcement Security Task Force, HSI and its partners have been able to thwart what could have been a very dangerous situation involving a robbery attempt in broad daylight on the busy streets of this city. Allegedly looking to make off with diamonds and precious stones, Rogers’s plan to get rich quick put the lives of several people at risk. We are happy the jewels, and more importantly, the people of New York, remain safe.”
According to the allegations in the Complaint[1]:
ROGERS conspired to rob a Federal Express truck in Manhattan while the truck was transporting diamonds and other precious stones on behalf of various merchants in Manhattan’s diamond district. ROGERS planned to administer near-lethal dosages of a veterinary tranquilizer to the truck’s operator, and steal the truck and its contents.
ROGERS’s arrest came after he sought the assistance of an undercover NYPD detective to help him kill an associate he believed might reveal the details of the robbery.
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ROGERS, 36, of Brooklyn, New York, is charged with one count of conspiracy to commit a Hobbs Act robbery, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
The charge in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Dominic Gentile is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the texts of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Bronx Man and Staten Island Man Arrested for Stealing over $900,000 in Produce and ServicesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Bethanne M. Dinkins, Special Agent-in-Charge of the U.S. Department of Agriculture, Office of Inspector General (“USDA-OIG”), and Daniel D. Brownell, the Commissioner of the New York City Business Integrity Commission (“BIC”), announced today the unsealing of a complaint charging ROBERT GUILIANO and RODIN DIAZ with wire fraud and conspiracy to commit wire fraud in connection with a scheme to steal more than $900,000 from produce growers, shipping services providers, and others. GUILIANO and DIAZ were arrested this morning and were presented this afternoon before Magistrate Judge Barbara C. Moses in federal court in Manhattan.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Robert Guiliano and Rodin Diaz engaged in a long-term fraud, stealing nearly $1 million in sweet potatoes, peppers, and other goods and services from small farms and businesses located across the United States. Thanks to the hard work of the BIC, NYPD, and USDA, their scheme has come to an end.”
USDA-OIG Special Agent-in-Charge Dinkins said: “The USDA strives to ensure integrity within the produce industry through its administration of the Perishable Agricultural Commodities Act, which protects businesses dealing in fruits and vegetables by establishing and enforcing a code of fair business practices and helping to resolve disputes. When presented with evidence of extensive fraud being committed against hardworking produce growers by entities not licensed under PACA, we were glad to assist our investigative partners in identifying and holding accountable those responsible.”
Business Integrity Commission Commissioner Daniel D. Brownell said: “The defendants’ alleged actions undermine the integrity of New York City’s wholesale markets. The NYC Business Integrity Commission, along with our law enforcement partners, will continue to protect the markets and their participants from those who seek to prey on them through fraudulent schemes such as the one the defendants have been charged with today.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:[[1]]
GUILIANO and DIAZ used multiple corporate entities and fictitious names in order to obtain produce and shipping services on credit, for which the defendants did not pay. To further their scheme, GUILIANO and DIAZ represented that they were independent businessmen operating within the produce industry when, in fact, they were co-conspirators working together to defraud victims of goods and services worth over $900,000.
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GUILIANO, 40, of the Bronx, New York, and DIAZ, 53, of Staten Island, New York, are each charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
The charges in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Mr. Berman praised the outstanding investigative work of the Business Integrity Commission, the New York City Police Department, and the United States Department of Agriculture.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Timothy V. Capozzi is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the texts of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Bradenton Bail Bondsman Sentenced to More Than Seven Years for Cashing Stolen and Fraudulent Treasury ChecksRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced James J. Jean-Rene (54, Riverview) to seven years and four months in federal prison for conspiracy, theft of government property, and identity theft. As part of his sentence, the court also entered a money judgment in the amount of $850,174.92, the proceeds of the charged criminal conduct. A federal jury found guilty him on October 3, 2017.
According to documents and testimony presented at trial, Jean-Rene deposited more than 100 United States Treasury checks for tax refunds or veterans’ pension benefits into bank accounts for his bail bonds company – A United Bail Bonds. He falsely claimed that the checks were payments for bail bonds. The victims in this case included veterans and elderly and disabled individuals. During the course of the conspiracy, Jean-Rene stole over $850,000.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Department of Veterans Affairs, Office of Inspector General. It was prosecuted by Assistant United States Attorneys Kristen A. Fiore and Cherie L. Krigsman.
Boston Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Boston man was sentenced today in federal court in Boston for failing to register as a sex offender.
Harris Taubman, 57, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to eight months in prison, five years of supervised release, and ordered to pay a $5,000 fine. In January 2018, Taubman pleaded guilty to one count of failing to register as a sex offender.
Taubman is required to register as a Level 2 sex offender in Massachusetts based on a 2009 federal conviction for possession and receipt of child pornography. Taubman last registered his address in September 2016; in March 2017, law enforcement discovered that Taubman had left that address in January 2017 and thereafter failed to update his registration with the Sex Offender Registry Board.
United States Attorney Andrew E. Lelling and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistance was provided by the Boston Police Department. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Bergen County, New Jersey, Man Charged with Bribing State Department EmployeeRead the Press Release
NEWARK N.J. – A Bergen County, New Jersey, man was charged today with offering a bribe to an employee of the U.S. Department of State, U.S. Attorney Craig Carpenito, announced.
Luis Santos, 27, of Teaneck, New Jersey, was arrested this morning and charged by complaint with one count of bribery of a public official. Santos is scheduled to appear this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court.
According to the complaint:
Santos offered to pay a United States Consular Adjudicator approximately $2,500 to favorably handle and review non-immigrant visas, which allowed individuals from the Dominican Republic to apply for entry into the United States.
Santos faces a maximum potential penalty of 15 years in prison and a fine of up to $250,000.
U.S. Attorney Carpenito credited special agents of the State Department’s Diplomatic Security Service, under the direction of Aaron Codispoti, Acting Director of the Office of Investigations and Counterintelligence, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Karen D. Stringer of the U.S. Attorney’s Office, Special Prosecutions Division in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless proven guilty.
Bergen County, New Jersey, Doctor Sentenced to 18 Months in Prison for Role in Test-Referral Bribe Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, doctor was sentenced today to 18 months in prison for his role in a test-referral bribe scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Craig Carpenito announced.
Basel Batarseh, 57, of Franklin Lakes, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of accepting bribes in violation of the Federal Travel Act. Judge Chesler imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court: Batarseh, an internal medicine doctor with a practice in West New York, New Jersey, accepted bribes totaling more than $104,000 from BLS employees and associates between November 2007 and August 2010. In exchange, Batarseh generated more than $1.3 million in lab business for BLS.
In addition to the prison term, Judge Chesler sentenced Batarseh to one year of supervised release, fined him $7,500 and ordered forfeiture of $104,611.
The investigation has thus far resulted in 53 convictions – 38 of them doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.
The investigation has to date recovered more than $13 million through forfeiture. On June 28, 2016, BLS, which is no longer operational, pleaded guilty and was required to forfeit all of its assets.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the ongoing investigation.The government is represented by Senior Litigation Counsel Joseph N. Minish, Assistant U.S. Attorney Danielle Alfonzo Walsman and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward, of the office’s Asset Forfeiture and Money Laundering Unit.
Defense counsel: Curtis LaForge Esq., Saddle Brook, New Jersey
Bergen County Man Admits Defrauding Two International Companies of $3 Million and Failing to Pay over $880,000 in TaxesRead the Press Release
NEWARK, N.J. – A Park Ridge, New Jersey, man today admitted using shell companies and phony invoices to scam both his and his wife’s employers out of millions of dollars, U.S. Attorney Craig Carpenito announced.
Philip Charles de Gruchy, 64, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to Count One and Counts 10 through 15 of a superseding indictment charging him with conspiracy to commit mail fraud and subscribing to false individual and corporate tax returns.
According to documents filed in this case and statements made in court:
From August 2007 through April 2, 2010, de Gruchy’s then-wife Barbara Brown was employed by “Company A,” a toy and juvenile products retailer headquartered in Wayne, New Jersey, first as director of customer relationship management and then as director of global customer relations management. She had authority to hire and pay contractors. Brown caused Company A to enter into a business relationship with CEM Inc., an entity that she and de Gruchy secretly controlled. From Nov. 5, 2007, through March 4, 2010, CEM submitted approximately 170 invoices to Company A totalling more than $3 million for alleged marketing consulting work that was ultimately unnecessary, worthless, or never completed.
Although the checks that Company A issued to CEM were mailed to various Canadian addresses, the checks were ultimately deposited by de Gruchy into a CEM account at bank branches located in Park Ridge. De Gruchy wrote checks out of the CEM account payable directly to either de Gruchy, Brown or two companies affiliated with de Gruchy: Silk Farm Inc. and Ontario LLC. De Gruchy and Brown then used the money for personal purposes, including home renovations, mortgage payments on the Park Ridge residence that Brown and de Gruchy shared, and credit card expenses.
From July 2010 through Nov. 11, 2011, de Gruchy was employed as the director of global relations management by “Company B,” an international manufacturer and retailer of luxury suitcases and accessories, headquartered in South Plainfield, New Jersey. He was responsible for a data migration project designed to assist Company B with identifying customer purchasing patterns. De Gruchy obtained verbal approval from Company B to hire Brown to assist him on the migration project. At no time did de Gruchy reveal his personal and financial relationship with Brown.
From November 2010 until November 2011, Brown submitted invoices in her own name or the name of her company, BI Insights, totaling more than $300,000 for purported work related to the data migration project. De Gruchy approved all of the invoices submitted by Brown and BI Insights. The work was ultimately unnecessary, worthless, or never completed. Checks from Company B totaling $216,825 were sent to one of the Canadian addresses used to receive checks from Company A and deposited into a Canadian bank account. Certain funds from the Canadian bank account were thereafter transferred to de Gruchy and Brown’s joint personal bank accounts in the United States.De Gruchy also admitted that he filed false federal tax returns, Forms 1040, for the calendar years 2009 and 2010, in which he knowingly overstated expenses and understated gross receipts, including receipts from the fraudulent conduct involving Company A and Company B. De Gruchy further admitted that he filed false federal corporate income tax returns, Forms 1120, for the calendar years 2009 and 2010 for CEM Inc. and Silk Farm Inc., in which he falsely claimed certain payments as business expenses. De Gruchy acknowledged at the plea hearing that he owes the IRS approximately $882,844 in additional taxes for 2009 and 2010.
Brown, who was charged with de Gruchy in the superseding indictment, passed away in May 2017. As such, the charges against her were dismissed in June 2017.
The mail fraud conspiracy charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The false tax return counts each carry a maximum potential penalty of three years in prison and a $250,000 fine, or twice gross gain or loss from the offense. Sentencing is scheduled for July 9, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, and IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, with the investigation.
The government is represented by Senior Litigation Counsel Leslie F. Schwartz of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Wanda Akin Esq., Newark
Beaver Falls Man Charged with Possessing Heroin and CocaineRead the Press Release
PITTSBURGH - A resident of Beaver Falls, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count indictment named Anthony Taylor, 34, as the sole defendant.
According to the indictment, on or about August 30, 2017, Taylor possessed with the intent to distribute a quantity of heroin, a Schedule I controlled substance, and a quantity of cocaine, a Schedule II controlled substance.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine not to exceed $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Pennsylvania Attorney General’s Office, and the New Brighton Police Department conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bankruptcy Attorney Pleads Guilty in Manhattan Federal Court to Embezzlement from A Bankruptcy EstateRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that PINCUS DAVID CARLEBACH, a bankruptcy attorney, pled guilty today in Manhattan federal court to embezzling funds from a client’s bankruptcy estate. From January 2016 through February 2016, CARLEBACH, whose client was in bankruptcy proceedings in the United States Bankruptcy Court for the Southern District of New York, caused the transfer of $30,000 in estate assets to himself for his own use. CARLEBACH pled guilty before U.S. District Judge Jesse M. Furman to one count of embezzlement from a bankruptcy estate.
Manhattan U.S. Attorney Geoffrey S. Berman stated: “Pincus David Carlebach abused his position as a bankruptcy attorney for his own financial gain. As he admitted in Manhattan federal court today, Carlebach caused the unlawful transfer of $30,000 from his client’s bankruptcy estate to himself. Our Office is committed to prosecuting those who misuse positions of trust for their own gain, including attorneys who do so in violation of their professional duties.”
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CARLEBACH, 57, of Brooklyn, New York, faces a maximum sentence of five years in prison and three years of supervised release. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the Office of the United States Trustee for the Southern District of New York and the United States Marshals Service for their work on the case.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Timothy V. Capozzi is in charge of the prosecution.
Armed robber of Kay Jewelers sentencedRead the Press Release
ATLANTA - Cephos Leyon Jamal White, a/k/a Jamal, has been sentenced to ten years, one month in federal prison for the armed robbery of a jewelry store in Conyers, Georgia in April 2017.
“White robbed four jewelry stores at gunpoint, tied the employees up, and stole jewelry worth more than $1 million,” said U.S. Attorney Byung J. “BJay” Pak. “The cooperation between federal and local law enforcement ended this crime spree, and brought him to justice.”
“Thanks to the cooperation between our local and federal partners, White and his accomplice will be out of commission for a long time,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “Though the lives of the innocent victims they terrorized will never be the same, those victims can take solace in the fact White won’t be able to terrorize anyone else while he serves a lengthy sentence.”
“I am very proud of the efforts by our Detectives and the working relationship with the FBI and US Attorney’s Office in bringing these people to justice,” said Conyers Police Chief Gene Wilson. “We are pleased to bring the victims in this case, and others, a sense of security after such a harrowing robbery committed by these individuals.”
According to U.S. Attorney Pak, the charges and other information presented in court: On April 18, 2017, Cephos Jamal White and Sandrika Sears went to a Kay Jewelers store in Conyers posing as a couple interested in buying a ring. The couple wore hats and sunglasses to disguise their facial features and Sears wore a wig.
After White introduced the couple as “Jamal” and “Monae,” White pulled out a gun and Sears helped him bind the two store clerks with zip-ties. White’s and Sears’s criminal scheme netted the pair a cache of jewelry with a retail value of approximately $1.5 million.
Cephos Leyon Jamal White, a/k/a Jamal, 30, of Lawrenceville, Georgia, was sentenced by U.S. District Court Judge Steven C. Jones to ten years, one month in prison to be followed by five years of supervised release. White was convicted of these charges on December 12, 2017, after he pleaded guilty. Sandrika Sears also pleaded guilty on January 12, 2018, to the armed robbery of Kay Jewelers, but her sentencing hearing is pending.
This case was investigated by the FBI and Conyers Police Department.
Assistant U.S. Attorney Joseph Plummer prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information, please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Amelia Man Pleads Guilty to Distributing and Receiving Child PornographyRead the Press Release
CINCINNATI – Jerry Wilkinson, 42, of Amelia, Ohio, pleaded guilty in U.S. District Court today to receiving and distributing child pornography by using a peer-to-peer file-sharing Internet application to locate, download, distribute and view it.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Steve Francis, Special Agent in Charge, U.S. Homeland Security Investigations, Amelia Police Chief Jeff Wood, Cincinnati Police Chief Eliot K. Isaac, Hamilton County Sheriff Jim Neil and agencies participating in the Regional Electronics Computer Investigations (RECI) Task Force announced the plea entered before U.S. District Judge Susan J. Dlott.
Wilkinson pleaded guilty to one count of receipt and distribution of child pornography, a crime punishable by at least five years and up to 20 years in prison. The law also requires him to pay restitution to the victims of the crime and to forfeit the computer equipment, storage media and files related to the crimes.
Court documents say Wilkinson committed the crimes between January and October 2017 when agents and task force officers arrested him. In the plea agreement, Wilkinson acknowledged that he had been viewing, downloading and trading child pornography over the past ten years. He possessed more than 500 videos and 8,000 images of child pornography when agents arrested him. Wilkinson also had printed images of child pornography which he printed at the public library from thumb drives he had containing the images.
Judge Dlott will schedule sentencing following an investigation by the court.
U.S. Attorney Glassman commended the investigation by the FBI, as well as Assistant United States Attorney Kyle Healey, who is representing the United States in this case.
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Ambulance Company to Pay $9 Million to Settle False Claims Act AllegationsRead the Press Release
Medical Transport LLC, a Virginia Beach-based provider of ambulance services, agreed to pay $9 million to resolve allegations that it violated the False Claims Act by submitting false claims for ambulance transports, the Justice Department announced today.
“Those who benefit from federal health care programs must play by the rules,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice is committed to ensuring that those whose conduct results in improper payments by the federal government will be held accountable.”
The government alleged that Medical Transport submitted false or fraudulent claims to Medicare, Medicaid, and TRICARE for ambulance transports that were not medically necessary, that did not qualify as Specialty Care Transports, and that were billed improperly to the federal health care programs when they should have been billed to other payers.
As part of the settlement, Medical Transport entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). This CIA is designed to promote compliance with the statutes, regulations, program requirements, and written directives of Medicare and all other federal health care programs.
“Allegations of illegally billing federal health care programs to increase revenue is a serious matter,” said U.S. Attorney Tracy Doherty-McCormick for the Eastern District of Virginia. “This agreement underscores our continued commitment to civil health care fraud enforcement.”
“Besides agreeing to being monitored for five years, Medical Transport is paying $9 million to settle these government charges,” said Maureen R. Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “The message to all providers invoicing government health programs should be clear: Fraudulently billing for services is bad business.”
Today’s settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, The U.S. Attorneys’ Office for the Eastern District of Virginia, HHS-OIG, DCIS, the FBI, and the Commonwealth of Virginia’s Office of the Attorney General.
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
Accountant pleads guilty to embezzling from employerRead the Press Release
ATLANTA – Stantisha D. Kemp, an accounting manager who embezzled over $1.5 million dollars from her employer over a six-year period, has pleaded guilty to wire fraud.
“Accountants who lie, cheat, and steal threaten the financial solvency of businesses,” said U.S. Attorney Byung J. “BJay” Pak. “Businesses must remain vigilant against fraud – all too often the perpetrator is someone they know.”
“For several years, Kemp took advantage of her position of managing the company’s payroll,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “Her guilty plea should send a message that no matter your position, you cannot profit illegally, or violate the trust of the company who hires you.”
According to U.S. Attorney Pak, the charges and other information presented in court: From 2007 to 2013, Kemp served as a payroll and accounting manager of an Atlanta-based company that developed medical technology (“the company”). During that time, Kemp embezzled over $1.5 million dollars by falsifying payroll records sent to a third-party payroll processing company and instructing the payroll processor to direct deposit funds into her personal bank accounts on a monthly basis. She falsely instructed the payroll processing company that a doctor with the initials Y.H.J. was a company employee, and she further instructed the payroll processing company to direct deposit Y.H.J.’s salary payments into her personal bank accounts. She concealed her scheme by preparing a set of fabricated internal payroll records that made no mention of Y.H.J., who had not been employed by the company since early April 2010. Nonetheless, Y.H.J.’s unauthorized salary payments were deposited into Kemp’s personal bank accounts, month after month, until February 2013.
Sentencing for Stantisha Kemp, 40, of Atlanta, Georgia, is scheduled for June 11, 2018 at 11:00 a.m., before U.S. District Judge Steven C. Jones.
This case is being investigated by the FBI.
Assistant U.S. Attorney Kamal Ghali is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
12 Southwestern Pennsylvania Residents Facing Federal Cocaine Conspiracy ChargesRead the Press Release
PITTSBURGH- After a lengthy investigation into drug trafficking in Pittsburgh, Pennsylvania, 12 people were indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today. The indictments were returned under seal on March 20 and unsealed this week following the arrests of the defendants.
"Our intense focus on fighting the opioid epidemic in no way deters our efforts to prosecute individuals and organizations trafficking other illegal substances, including cocaine," said U.S. Attorney Brady. "Just as this 14-month investigation resulted in charges against the members of two separate, but related, drug trafficking organizations, we will continue to work tirelessly to identify and prosecute drug dealers at all levels in order to keep our communities safe."
THE INDICTMENTS
The first indictment, containing two counts, named:
Thomas Poole aka Thomas Dupree, 52, of Pittsburgh, PA;
Cameron Mele, 42, of Pittsburgh, PA;
Jayson Markulin, 46, of McKees Rocks, PA;
Brian Horvath, 46, of Pittsburgh, PA;
Albert Mastrippolito, Jr., 59, of Claridge, PA;
Craig George, 50, of Greensburg, PA;
Anthony Monteleone, 58, of Pittsburgh, PA;
Scott Spangler, 38, of North Versailles, PA; and
Richard Kosmar, 56, of Pittsburgh, PA.
According to the indictment, from in and around January 2016, and continuing thereafter to on or about November 30, 2017, the defendants conspired with one another, and others known and unknown, to distribute and possess with intent to distribute cocaine, a Schedule II controlled substance. While all defendants are charged in the conspiracy to distribute the narcotics, Albert Mastrippolito, Jr. is specifically charged with conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine; and Thomas Poole, Cameron Mele, Jayson Markulin and Brian Horvath are specifically charged with conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. Jayson Markulin is charged at Count 2 with possession with intent to distribute cocaine.
The law provides for maximum total sentences ranging from 10 years in prison up to life in prison, as well as mandatory minimum sentences starting at five years in prison. Fines range from $1,000,000 to up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The second indictment, containing two counts, named:
Diop Fitzgerald, 40, formerly of West Mifflin, PA, currently incarcerated;
Landriff Macklin, 39, formerly of Pittsburgh, PA, currently incarcerated; and
James White, 45, of Duquesne, PA.
According to the indictment, from in and around September 2016, and continuing thereafter to on or about November 30, 2017, the defendants conspired with one another, and others known and unknown, to distribute and possess with intent to distribute cocaine. While all defendants are charged in the conspiracy to distribute the narcotics, Landriff Macklin is specifically charged with conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine; and Diop Fitzgerald is specifically charged with conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. Landriff Macklin is charged at Count 2 with possession with intent to distribute 500 grams or more of cocaine.
The law provides for a mandatory minimum of five years and up to a maximum total sentence of 40 years in prison, a fine of up to $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephen S. Gilson is prosecuting these cases on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the indictments in this case. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The Stowe Township Police Department also provided assistance in this investigation. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
27 March 2018
Wounded Knee Man Pleads Guilty to Second Degree MurderRead the Press Release
United States Attorney Ron Parsons announced Darwin Wade Red Cloud, a/k/a Darwin Raisch, 25, of Wounded Knee, South Dakota, appeared before U.S. Magistrate Judge Daneta Wollmann on March 22, 2018, and pleaded guilty to Second Degree Murder.
The Magistrate Judge recommended Red Cloud’s plea be accepted by the District Court. The maximum penalty upon conviction is life imprisonment and/or a $250,000 fine.
Between August 2014 and October 2014, at Wounded Knee, Red Cloud knowingly failed to provide sufficient sustenance to an infant, which resulted in the baby’s death.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs Office of Justice Services. The case is being prosecuted by Assistant U.S. Attorney Sarah Collins.
A presentence investigation was ordered and a sentencing date will be set. Red Cloud was remanded to the custody of the U.S. Marshals pending acceptance of his plea and sentencing
Woodland Park Man Indicted for Tax EvasionRead the Press Release
DENVER – On March 26, 2018, Scott Daniel Roughen, age 52, of Woodland Park, Colorado was arrested following a federal grand jury indictment on charges of tax evasion, announced United States Attorney Robert C. Troyer and IRS Criminal Investigation Special Agent in Charge Steven Osborne. Roughen had his initial appearance on March 26, 2018, before U.S. Magistrate Judge Kristen L. Mix. His arraignment is set for March 29, 2018, before Magistrate Judge Nina Y. Wang.
Roughen faces one count of tax evasion. According to the indictment, he allegedly failed to file an individual federal tax return for any of the tax years 2000 through 2006. After the IRS assessed tax liabilities for Roughen for those tax years, Roughen allegedly evaded the payment of those taxes in a number of ways, including hiding his income and using bank accounts held in names other than his own. This charge carries a penalty of not more than 5 years imprisonment.
This case is being investigated by the Internal Revenue Service – Criminal Investigation. This case is being prosecuted by Assistant United States Attorney Pegeen Rhyne.
The defendant is presumed innocent unless and until proven guilty in a court of law.
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Wood County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A Wood County man pled guilty today to a federal gun crime, announced United States Attorney Mike Stuart. Charles “Rusty” Conrad, 26, of Parkersburg, pled guilty to being a prohibited person in possession of a firearm. Conrad is prohibited from possessing any firearms due to a 2012 Wood County felony conviction for fraudulent use of an access device. During his plea hearing, Conrad admitted that on July 8, 2016, he possessed sawed-off .12 gauge shotgun at his Parkersburg residence. United States Attorney Stuart commended the investigative efforts of the Parkersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“I firmly believe in protecting our gun rights by keeping firearms out of the hands of felons like this guy,” said United States Attorney Mike Stuart. “We will work with our law enforcement partners every day of the week to prosecute criminals who violate gun laws.”
Conrad faces up to 10 years in federal prison when he is sentenced on June 20, 2018.
Assistant United States Attorney Matt Davis is responsible for the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
This case is being prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
Follow us on Twitter: @SDWVNews and @USAttyStuart
###Williamsport Man Sentenced to Nine Year’s in Prison for Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Morris Smith, age 35, of Williamsport, Pennsylvania, was sentenced to nine years’ imprisonment on March 21, 2018, by United States District Court Judge Matthew W. Brann for possession with intent to distribute cocaine.
According to United States Attorney David J. Freed, Smith pled guilty to possessing more than 28 grams of cocaine base, or “crack,” along with a quantity of cocaine with the intent to distribute the narcotics in the Williamsport area. Smith was arrested in March 2016 in Williamsport following a vehicle and foot pursuit that began when Smith fled a routine traffic stop. Williamsport police recovered over 150 grams of powder cocaine and 74 grams of crack, along with a loaded 9mm handgun, from the trunk of the car Smith drove while attempting to elude police. Those quantities amount to more than 400 individual doses of crack and 900 doses of powder cocaine.
Judge Brann considered Smith’s lengthy criminal history when imposing the sentence, specifically noting two prior federal convictions for drug trafficking and escape.
The investigation was conducted the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Williamsport Bureau of Police. Assistant United States Attorney Sean A. Camoni prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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Williamsport Man Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
WILLIAMSPORT- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Kenneth Sharif Johnson, age 27, of Williamsport, Pennsylvania, was indicted on March 22, 2018, by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney David J. Freed, the indictment alleges that Johnson, a convicted felon, illegally possessed three stolen handguns on June 18, 2016 and that from January 2015 through June 2016, Johnson possessed with the intent to distribute over 28 grams of crack cocaine and a detectable amount of heroin.
The three-count indictment charges Johnson with one count each of possession of a firearm by a convicted felon and receiving stolen firearms and a separate count of possession with intent to distribute crack cocaine and heroin.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the South Williamsport Police Department. Assistant U.S. Attorney George J. Rocktashel is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 40 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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West Mifflin Woman Pleads Guilty in Drug Trafficking SchemeRead the Press Release
PITTSBURGH, PA. - A resident of West Mifflin, Pennsylvania, pleaded guilty in federal court to conspiring to distribute narcotics, United States Attorney Scott W. Brady announced today.
Jammie Fridley, 49, pleaded guilty to one count of conspiring with 20 other individuals, between March and August of 2017, to distribute narcotics. In connection with the guilty plea, the court was advised that Fridley regularly purchased fentanyl, cocaine, and cocaine base from her co-defendant, Skyler Carter, for both personal use and further distribution, and was responsible for the distribution of between 32 and 40 grams of fentanyl. Fridley is the seventh of 21 defendants charged in the case to enter a plea of guilty.
Judge Arthur J. Schwab scheduled sentencing for August 23, 2018 at 11 a.m. Under the Federal Sentencing Guidelines, the actual sentence imposed will depend upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Fridley remains on bond pending the sentencing hearing.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises. Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
Wellsville Man Sentenced on Methamphetamine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051Buffalo, N.Y.–U.S. Attorney James P. Kennedy, Jr. announced today that Derek Fagan, 33, of Wellsville, NY, who was convicted of conspiracy to manufacture, possess with intent to distribute, and to distribute, a mixture and substance containing methamphetamine, was sentenced to 30 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Brendan T. Cullinane, who handling the case, stated that between January of 2011 and October 25, 2012, the defendant conspired to manufacture and distribute methamphetamine. In order to avoid restrictions on the purchase of pseudoephedrine, an important chemical in the methamphetamine manufacturing process, Fagan engaged in the practice of “smurfing” (buying small quantities) at local pharmacies.
The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Lieutenant Kevin Reyes and Major Mary Clark; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Region; the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb; the Wellsville Police Department, under the direction of Chief Timothy O’Grady; U.S. Border Patrol, under the direction of Patrol Agent-in-Charge Steven Oldman; and the New York State Department of Environmental Conservation, under the direction of Captain John Burke.
Waldorf Man Sentenced to 105 Years in Prison for Production of Child PornographyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge Paul W. Grimm sentenced Carlos DeAngelo Bell, 30, of Waldorf, Maryland was sentenced to 105 years in prison, followed by a lifetime period of supervised release for 10 counts of Sexual Exploitation of Minors for the Purpose of Producing Child Pornography. Judge Grimm ordered that, should he complete the term of his imprisonment, Bell must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Baltimore; Charles County State’s Attorney Anthony B. Covington, Sr.; Sheriff Troy D. Berry of the Charles County Sheriff’s Office and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to the plea agreement, from the period of January 1, 2014 to December 22, 2016, Bell used and coerced minors to engage in sexually explicit conduct for the purpose of producing child pornography. Bell was charged with committing this offense against ten minors. During the relevant period, Bell was employed as an Instructional Assistant in Charles County Public Schools, and a track and field coach at a Charles County Public High School.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
Acting United States Attorney Stephen M. Schenning thanked HSI, the Charles County State’s Attorney’s Office, the Charles County Sheriff’s Office, and the Maryland State Police. Mr. Schenning also commended Assistant United States Attorneys Timothy F. Hagan and Joseph R. Baldwin of the United States Attorney’s Office for the District of Maryland, who prosecuted this case.
Virginia Beach Man Pleads Guilty to Multiple Bank RobberiesRead the Press Release
RICHMOND, Va. – A Virginia Beach man pleaded guilty today to committing a dozen bank robberies throughout Virginia and North Carolina in 2016 and 2017.
According to court documents, Russell Carter, 50, robbed 11 banks and attempted to rob another, all by approaching the tellers with a note demanding money, and claiming that he had a firearm. Carter robbed nine banks in the Richmond, Williamsburg, and Fredericksburg areas, as well as one bank in Charlottesville, and one in Durham, North Carolina.
Carter pleaded guilty to bank robbery and faces a maximum penalty of 40 years in prison when sentenced on June 19. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea. Assistant U.S. Attorney Peter S. Duffey is prosecuting the case.
This investigation was conducted by FBI Richmond’s Central Virginia Violent Crimes Task Force.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-166.
Verona Man Charged with Multiple Counts of Violating Child Exploitation LawsRead the Press Release
PITTSBURGH, PA - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of attempted production, production, distribution and possession of material depicting the sexual exploitation of minors, United States Attorney Scott W. Brady announced today.
The eight-count indictment, returned on March 21, named John O’Donnell, age 50, of Verona, Pennsylvania, as the sole defendant. O’Donnell was arrested on Friday and today was ordered to be detained pending trial.
According to the indictment, on or about February 28, 2015, March 4, 2015, March 9, 2015, March 24, 2015, April 3, 2015 and April 14, 2015, O’Donnell employed, used, persuaded, induced, enticed, and coerced a minor to engage in sexually explicit conduct for the purpose of producing or attempting to produce a visual depiction of the sexual exploitation of the minor. The indictment also alleges that on or about October 25, 2017, O’Donnell knowingly distributed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age. The indictment further alleges that on or about December 20, 2017, O’Donnell knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a minimum sentence of 15 years in prison and a maximum total sentence of 210 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania Attorney’s General Office, the Allegheny County Police Department and the Allegheny County District Attorney’s Office conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
U.S. Attorney Honors Law Enforcement Officials and Bestows Award for Extraordinary ValorRead the Press Release
Senior Mgt. Counsel and Law Enforcement Coordinator Cindy Cipriani (619) 546-9608
NEWS RELEASE SUMMARY – March 23, 2018
SAN DIEGO – U.S. Attorney Adam Braverman will honor the work of federal, state and local law enforcement officers and bestow an award for Extraordinary Valor at the first annual Excellence in the Pursuit of Justice Awards Ceremony today.
“Serving as a law enforcement officer is demanding, dangerous, and all too often unappreciated. Many officers leave their families each day not knowing what dangers lurk ahead, because they want to make a difference. Those who have chosen this profession and who work selflessly day and night through the harshest of conditions are a special breed – they are heroes,” U.S. Attorney Braverman stated. “It is no accident that America’s Finest City is also one of America’s safest cities. The cooperation and collaboration between our federal, state and local law enforcement partners is unparalleled. Today, I honor 80 special officers who have made a difference in our community and moved the cause of justice forward.”
U.S. Attorney Braverman’s Excellence in the Pursuit of Justice Awards are being presented this afternoon to 79 agents and officers who demonstrated creativity, initiative, and persistence to achieve justice in difficult cases, including international murder investigations, counterterrorism matters, opiate diversion conspiracies, and large takedowns of gang-led drug trafficking organizations. “Each of these agents and officers demonstrated total commitment to the cause of justice and refused to give up in the face of numerous obstacles. They went above and beyond to ensure that justice was done, and in doing so they upheld the rule of law, brought justice to victims and enhanced community safety.”
In addition to the Excellence in the Pursuit of Justice Awards, U.S. Attorney Braverman will present an Award for Extraordinary Valor to Special Agent Geoffrey Rice, who works in the Carlsbad office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. SA Rice happened to be attending the Route 91 Harvest music festival in Las Vegas when he heard the unmistakable sound of rapid gunfire. A mass murderer took the lives of 58 and injured more than 500 that day.
Agent Rice was off duty and unarmed, enjoying the concert with his wife on October 1, 2017. The shooter opened fire on the large outdoor gathering of concertgoers from a high rise hotel across the street from the concert venue. In the first few moments after the shooting began there was much confusion as to the source and nature of the sound of the gunfire over the amplified music and the background noise from a crowd of thousands. Many people initially thought that the sound was firecrackers or something else innocuous.
As a result of his extensive tactical training, Agent Rice immediately recognized the sound as gunfire and correctly determined the direction from which it came. After yelling out “gunfire!” he swiftly took action to move himself and his wife to cover behind a metal sound equipment box nearby, even as others in their immediate proximity were shot. As they moved to cover, Agent Rice noticed one person who had sustained a wound to the neck, and helped carry him along to a position of cover. Agent Rice exposed himself further to the assailant’s fire to grab two young women nearby and bring them back with him to safety behind the box.
As Agent Rice and the others gathered behind the sound box, the shooter took direct aim on their cover, repeatedly shooting at it in a clear attempt to penetrate it and hit them. Agent Rice, having correctly assessed that the cover was adequate and that they were in a relatively good position, commanded everyone to stay put. Although some felt their best chance was to run for better cover, Agent Rice’s confidence was compelling. One person nearby who left cover in an attempt to flee was fatally shot.
During a lull in the shooter’s fire, Agent Rice abandoned his position of safety and with help from another person he managed to move the person with the neck injury out into the open, where he had room to lie him flat in order to assess his injuries. Fully exposed to the shooter, Agent Rice performed CPR on the injured person until it was clear that he could do nothing further. As he attempted to treat the injured person the shooter resumed fire, with bullets hitting all around them. Agent Rice only then returned to safety with the injured man.
After some time the shooting stopped and Agent Rice assessed that he and the others could leave their position, and gave them calm and commanding instructions on how to do so. Agent Rice unselfishly remained on scene and at the casualty collection area nearby, volunteering to assist first responders and collecting a statement from a potential witness.
For his heroism, Agent Rice received the Award for Extraordinary Valor during today’s ceremony.
“Agent Rice’s quick thinking and swift action, in the face of an unforeseeable event reflects on his exceptional professionalism and strength of character,” said U.S. Attorney Braverman. “His selfless choice to expose himself to a known fatal threat for an injured stranger demonstrated exceptional personal valor, and exemplifies the finest traditions of law enforcement and public service. Without question his actions saved many lives and he is a hero.”
Two Individuals Charged for Robbery and Carjacking Murder of Orocovis BusinessmanRead the Press Release
SAN JUAN, Puerto Rico – On March 26, 2018, a federal grand jury returned a four-count indictment charging Juan A. Negrón-Rodríguez, 27, and Jonathan Torres-Rojas, 29, for conspiracy to interfere with commerce by robbery, interference with commerce by robbery, carjacking resulting in death, and using and carrying a firearm during a crime of violence resulting in death, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The FBI is in charge of the investigation of the case.
On June 12, 2015, Negrón-Rodríguez and Torres-Rojas robbed and carjacked José A. Medina-Meléndez, 67, as he was closing his bar, “El Rejón del Gallo,” in Orocovis. Before they fled in the victim’s stolen 2001 grey Toyota Sequoia, one of the defendants shot and mortally wounded Medina-Meléndez.
Assistant U.S. Attorney Victor O. Acevedo-Hernández is in charge of the prosecution case. If convicted, the defendants face from 10 years to a maximum sentence of life imprisonment. The charges and allegations in the indictment are merely accusations; all defendants are presumed innocent unless and until proven guilty in a court of law.
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Two Behavioral Health Clinic Operators Sentenced to Prison in Healthcare Fraud ConspiracyRead the Press Release
Jacksonville, FL – Shawn Thorpe (30) and Ruben McLain (46), both of Winston Salem, North Carolina, have been sentenced to prison for their participation in a conspiracy to commit healthcare fraud. Thorpe was sentenced to 2 years’ imprisonment and McLain was sentenced to 4 years and 9 months in federal prison. Thorpe and McLain were also ordered to pay $211,311.20 and $1,159,050.51, respectively, in restitution to their victims.
According to court documents, Thorpe and McLain worked together to create and manage Coastal Bay, a company that provided medical care to Medicaid patients. McLain had been excluded from billing federal healthcare programs based on his 2011 conviction for healthcare fraud. Thorpe never disclosed to the Medicaid program that he was working with an individual who had been excluded from participating in the program. In an effort to conceal his involvement, McLain used an alias – “Julian Winchester;” he performed a variety of functions, including hiring and firing individuals, seeing patients, and performing other managerial tasks using the alias. McLain routinely traveled to Jacksonville from his home in North Carolina to assist in Coastal Bay’s operations.
McLain and his family received significant financial benefits because of his involvement in Coastal Bay. He had access to a Coastal Bay credit card that he used to make routine purchases at restaurants, furniture stores, gas stations, and other places in North Carolina, even though Coastal Bay had no operations in North Carolina. In addition, he and his immediate family received more than $10,000 in direct payments from the Coastal Bay business account.
This matter was investigated by the U.S. Department of Health and Human Services - Office of Inspector General and the State of Florida Medicaid Fraud Control Unit. It was prosecuted by Assistant United States Attorney Jay Taylor.
St. Louis Man Pleads Guilty to Three HomicidesRead the Press Release
St. Louis, MO - Jacobi Temple, 27, of Saint Louis, MO, pled guilty yesterday, March 26, 2018, for his killing of James Lacey, Paige Schaefer, and Tammie Thurmond. Mr. Lacey and Ms. Schaefer were shot and killed inside a residence located in the 4400 block of Itaska in the City of Saint Louis. Ms. Thurmond was found by police in an alley behind the 4200 block of South 37th Street and died a short time later.
Temple pled guilty to one count of conspiracy to distribute heroin and two counts of discharge of a firearm in furtherance of drug trafficking where deaths resulted. He appeared before United States District Court Judge John A. Ross.
According to court documents, Temple, along with his two co-defendants, Demante Syms and Samuel Spires, traveled in a vehicle to the area of 4467 Itaska Street. Temple went there to obtain payment for heroin previously distributed by him that had not been paid for. Temple learned of the 4467 Itaska location from Tammie Thurmond who was the mother of Paige Schaefer. While inside 4467 Itaska demanding payment, Temple shot and killed James Lacey and Paige Schaefer. Brittney Brown was shot in the head and severely injured. Shortly after, Temple, Syms and Spires located Ms. Thurmond. Temple took Ms. Thurmond to an alley, then shot and killed her.
After being shot in the head inside the Itaska residence, Brittney Brown struggled to, but successfully contacted 911. Ms. Brown survived but was hospitalized for a significant period of time. While hospitalized (and continuing after her release), Ms. Brown provided invaluable support and assistance to law enforcement officials. Following the change of plea proceeding, United States Attorney Jeffrey B. Jensen praised her strength and courage, saying “Brittney Brown is a very courageous young lady who deserves our community’s respect and gratitude.”
Temple’s guilty plea caps a three-year investigation and federal prosecution resulting in convictions of all three charged participants. Syms and Spires previously pleaded guilty on December 2, 2016, and August 25, 2016, respectively. Sentencing for each of the three co-defendants is as follows: Spires, May 23, 2018; Syms, May 31, 2018; Temple, June 27, 2018.
Likewise, this investigation resulted in the separate prosecution and convictions of Syms and his mother, Tabitha Hunt, for witness tampering in connection with the underlying homicide investigation. Sentencing of Syms and Hunt on those witness tampering charges will also occur on May 31, 2018.
In determining any actual sentence to be imposed, a judge is required to consider the United States Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated as part of the on-going effort between the United States Attorney’s Office, the Saint Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives to address the violent crime within the City of Saint Louis.
Scituate Man Indicted in Alleged Tax Scheme to Thwart IRS Tax CollectionsRead the Press Release
PROVIDENCE – A federal grand jury in Providence returned an indictment today charging a Scituate man with allegedly corruptly endeavoring to impede the internal revenue laws, tax evasion, and perjury, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Stephen G. Dambruch for the District of Rhode Island.
According to the indictment, from 2005 through 2016, Billie Schofield worked for local fishing companies and earned hundreds of thousands of dollars in income. The indictment alleges that Schofield obstructed the Internal Revenue Service’s (IRS) efforts to collect and assess his unpaid taxes by filing false income tax returns, preventing the delivery of IRS levy notices to his employer, and sending bogus checks to the IRS in a fraudulent attempt to pay off an IRS lien placed on his property.
Additionally, the indictment alleges that from 2005 to 2016 Schofield evaded the payment and assessment of his personal tax liabilities by using nominees to hide his personal income, and in February 2018 Schofield gave false testimony before a federal grand jury in response to questions about checks that were drawn on a closed bank account that he submitted to the IRS.
If convicted, Schofield faces a statutory maximum sentence of five years in prison on the tax evasion and perjury charges, as well as three years in prison for obstructing the internal revenue laws. He also faces a period of supervised release, restitution and monetary penalties. An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Dambruch thanked special agents of IRS Criminal Investigation and the U.S. Treasury Inspector General for Tax Administration, who investigated the case, and Assistant U.S. Attorney Sandra Hebert and Tax Division Trial Attorney Christopher O’Donnell, who are prosecuting the case.
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Rhode Island Man Charged in Tax Scheme for Allegedly Thwarting IRS Efforts to Collect Taxes on Hundreds of Thousands of DollarsRead the Press Release
A federal grand jury sitting in Providence returned an indictment today charging a Rhode Island man with corruptly endeavoring to impede the internal revenue laws, tax evasion, and perjury, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Stephen G. Dambruch for the District of Rhode Island.
According to the indictment, from 2005 through 2016, Billie Schofield worked for local fishing companies and earned hundreds of thousands of dollars in income. The indictment alleges that Schofield obstructed the Internal Revenue Service’s (IRS) efforts to collect and assess his unpaid taxes by filing false income tax returns, preventing the delivery of IRS levy notices to his employer, and sending bogus checks to the IRS in a fraudulent attempt to pay off an IRS lien placed on his property.
Additionally, the indictment alleges that from 2005 to 2016 Schofield evaded the payment and assessment of his personal tax liabilities by using nominees to hide his personal income, and in February 2018 Schofield gave false testimony before a federal grand jury in response to questions about checks that were drawn on a closed bank account that he submitted to the IRS.
If convicted, Schofield faces a statutory maximum sentence of five years in prison on the tax evasion and perjury charges, as well as three years in prison for obstructing the internal revenue laws. He also faces a period of supervised release, restitution, and monetary penalties.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Dambruch thanked special agents of IRS Criminal Investigation and the U.S. Treasury Inspector General for Tax Administration, who investigated the case, and Assistant U.S. Attorney Sandra Hebert and Tax Division Trial Attorney Christopher O’Donnell, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Redirections Treatment Operations Manager Charged with Unlawfully Dispensing Buprenorphine and Defrauding MedicaidRead the Press Release
PITTSBURGH, PA – The manager of an opioid addiction treatment practice has been indicted by a federal grand jury in Pittsburgh on charges of unlawfully dispensing controlled substances and health care fraud, Attorney General Jeff Sessions, United States Attorney Scott W. Brady of the Western District of Pennsylvania and United States Attorney William J. Powell of the Northern District of West Virginia announced today. This indictment is the third in Western Pennsylvania since Attorney General Sessions announced the formation of the Opioid Fraud and Abuse Detection Unit, a Department of Justice initiative that uses data to target and prosecute individuals that commit opioid-related health care fraud.
The four-count indictment, returned on March 21, named Christopher Handa, 47, of Pittsburgh, Pennsylvania.
According to the indictment, Handa was an employee in charge of operations at Redirections Treatment Advocates, LLC, an addiction treatment facility with multiple locations in Southwestern Pennsylvania and Northern West Virginia. The indictment alleges that Handa and others conspired to create and submit unlawful prescriptions for buprenorphine, known as Subutex and Suboxone, and then unlawfully dispensed those controlled substances to other persons. Handa is also charged with health care fraud for allegedly causing fraudulent claims to be submitted to Medicaid for payments to cover the costs of the unlawfully prescribed buprenorphine.
"Today we are facing the worst drug crisis in American history, with one American dying of a drug overdose every nine minutes," said Attorney General Jeff Sessions. "It's incredible but true that some of our trusted medical professionals have chosen to violate their oaths and exploit this crisis for profit. Last summer, I sent a dozen of our top federal prosecutors to focus solely on the problem of opioid-related health care fraud in places where the epidemic was at its worst—including Western Pennsylvania. These cases cut off the supply of drugs and stop fraudsters from exploiting vulnerable people. Our prosecutors began issuing indictments back in October, and today we bring even more charges against those who allegedly defrauded the taxpayer while diverting potentially addictive drugs. We will file many more charges in the months to come—because the Department of Justice will be relentless in hunting down drug dealers and turning the tide of this epidemic."
"Because high quality, medication-assisted treatment is so essential to our opioid response, we must act rapidly and decisively to charge the unlawful diversion of buprenorphine," stated U.S. Attorney Brady. "This indictment is the result of a well-coordinated investigation by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which is working to attack the opioid problem at its root: the diversion and overprescription of opioid painkillers."
"We are unified with our sister districts to combat those who believe they can hide behind professional services and violate the law," added U.S. Attorney Powell. We will continue our joint effort to prosecute the opioid crisis at its very source."
"The DEA recognizes that the use of buprenorphine as part of a comprehensive drug treatment program is an effective tool in helping those that struggle with substance use disorder," said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. "We are also aware that when buprenorphine is illegally diverted, it can affect the lives of countless people as well as their families and friends. The DEA will aggressively pursue those that seek to illegally distribute controlled substances as is alleged in this indictment."
"The FBI will continue to investigate those accused of exploiting our health care system at the expense of those suffering from addiction and the taxpayers who help fund rehabilitation centers," said Special Agent in Charge Bob Johnson of the FBI Pittsburgh Division. "I applaud the Health Care Fraud Task Force and its partners as they work to make our community safer."
Handa faces a maximum sentence of 10 years in prison and a fine of $250,000 for each of the two counts charging him with unlawfully dispensing Schedule III controlled substances, a maximum sentence of 10 years imprisonment and a fine of $1 million for the one count charging him with conspiracy to unlawfully dispense a Schedule III controlled substance, and a maximum sentence of 10 years imprisonment and a fine of $250,000 for the one count charging him with health care fraud. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar of the Western District of Pennsylvania and Assistant United States Attorney Sarah Wagner of the Northern District of West Virginia are prosecuting this case on behalf of the United States.
The investigation leading to the indictment in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Unites States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration- Office of Criminal Investigations and the Pennsylvania Bureau of Licensing.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Rapid City Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Troy Sampson, age 40, was indicted on March 20, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 23, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or between December 1, 2017, and January 20, 2018, Sampson, a person required to register under the Sex Offender Registration and Notification Act, did fail to register and update his registration.
The charge is merely an accusation and Sampson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Office. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Sampson was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Randolph Man Sentenced to 15 Years in Federal Prison for Marijuana Trafficking and Money LaunderingRead the Press Release
BOSTON – A Randolph man was sentenced in federal court in Boston yesterday for his role in a trans-national marijuana scheme that distributed thousands of pounds of marijuana and laundered millions of dollars in proceeds.
Michael Gordon, 48, was sentenced by U.S. District Court Judge Douglas P. Woodlock to 15 years in prison, five years of supervised release, and ordered to pay forfeiture of $5,030,812, to forfeit his interests in a house in Randolph, two houses in Florida, $371,239 seized during the investigation, and an Acura SUV used to facilitate his crimes.
In December 2017, Gordon and his co-conspirator, Daphne Jean, were convicted by a federal jury of conspiracy to distribute and possession with intent to distribute marijuana, and conspiring to launder drug money through real estate transactions. Gordon was also convicted of conspiracy to distribute and possession with intent to distribute more than 1000 kilograms (2200 pounds) of marijuana and various counts of money laundering involving the purchase of real estate in Florida and Randolph.
From at least July 2011 to November 2014, Gordon shipped large amounts of marijuana from sources in California to Boston through the U.S. Postal Service and Federal Express, and then distributed the marijuana in the Boston area. Jean assisted Gordon by renting apartments that were used to receive the shipments of marijuana, and helping to launder drug proceeds. The operation produced millions of dollars in profits, and Gordon and Jean laundered the drug proceeds by participating in various financial transactions in Massachusetts and elsewhere.
Jean is scheduled to be sentenced on April 6, 2018.
United States Attorney Andrew E. Lelling; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Raymond Moss, Acting Inspector in Charge of the U.S. Postal Inspection Service; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Substantial assistance was also provided by Homeland Security Investigations in San Francisco; the Boston, Norwood, Randolph and Needham Police Departments; the Sonoma County (Calif.) Sheriff’s Department; and the Irwindale (Calif.) Police Department. Assistant U.S. Attorneys Karen Beausey and David G. Lazarus are prosecuting the case.
Prisoner at Mount Oliver Correctional Facility Sentenced for Making ThreatsRead the Press Release
Charleston, WEST VIRGINIA – An inmate serving state prison time in West Virginia was sentenced yesterday to federal prison time for mailing a threatening letter to a federal judge in Utah, United States Attorney Rick A. Mountcastle announced today.
The U.S. Attorney’s Office for the Western District of Virginia prosecuted the case following the recusal of the U.S. Attorney’s Office for the Southern District of West Virginia.
Eric Jacob Riggs, 26, was sentenced yesterday to 60 months in federal prison following his guilty plea on June 29, 2017, to one count of mailing a threatening communication. The case arose from a letter, sent in July 2015 that threatened a United States District Court Judge in Utah. United States Attorney Mountcastle commended the West Virginia State Police Forensic Laboratory, the Federal Bureau of Investigation, and the United States Marshals Service for their investigation and the use of latent fingerprint analysis to identify Jacobs as the perpetrator. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Porter Man Sentenced to 27 Months for Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Donald Jack Kilgore, age 67, of Porter, Oklahoma, was sentenced to 27 months imprisonment, and 2 years supervised release for Felon In Possession Of Firearm And Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charge arose from an investigation by the Broken Arrow Police Department, the Wagoner County Sherriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on or about June 6, 2017, within the Eastern District of Oklahoma, the defendant, Donald Jack Kilgore, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “Reducing violent crime is a top priority of the Department of Justice and the United States Attorney’s Offices. Enforcing the federal gun laws that prohibit convicted felons from possessing firearms is one way that we are able to prevent violence with firearms. The federal and local law enforcement joint investigation of the defendant allowed this office to hold him accountable for his actions.”
The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney John David Luton represented the United States.
Pittsburgh Man Charged with Fentanyl TraffickingRead the Press Release
PITTSBURGH – A local man has been indicted by a federal grand jury in Pittsburgh for fentanyl trafficking, United States Attorney Scott W. Brady announced today.
The indictment charges Dorian Dawson, age 29, of Pittsburgh, with possession with intent to distribute fentanyl on October 17, 2016.
The law provides for a maximum total sentence of up to 30 years in prison and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Pennsylvania Attorney General’s Office and the Brentwood Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Ocala Man Pleads Guilty to Conspiracy to Commit Wire Fraud and Executing A False Income Tax ReturnRead the Press Release
Jacksonville, Florida – Donald Edward Smith (65, Ocala) has pleaded guilty to conspiracy to commit wire fraud and to executing a false income tax return. He faces a maximum penalty of eight years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, between September 2011 and September 2015, Smith and others conspired to engage in a scheme to defraud individuals who were interested in investing in green technology and other projects. Operating under his company, Legacy Investments of Brandon, Inc., Smith solicited funds from investors and promised lucrative returns, as well as access to hundreds of millions of dollars in financing. He was assisted by others that purported to offer services to the investors to obtain funding and/or loans for their projects. These funding opportunities and/or loans never materialized.
Smith knowingly failed to report as income the fraudulent proceeds he received from the victim-investors during 2012. For that tax year, he reported a negative income of $15,122 on his Form 1040, when he should have reported $560,924 as income. His failure to do so resulted in a tax loss of $163,726 to the United States. In his plea agreement, Smith agreed to pay approximately $1.45 million in restitution to the victims of the scheme. He also agreed to pay $1,937,127.95 in restitution to victims of a separate scheme involving investments in a purported Styrofoam recycling business, and to pay restitution to the Internal Revenue Service for the tax loss resulting from the false 2012 Form 1040. Additionally, he agreed to forfeit two parcels of real property, sales proceeds from the sale of a third parcel of real property, a number of vehicles, a backhoe, and $1.45 million.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the State of Florida’s Office of Financial Regulation –Bureau of Financial Investigations. It is being prosecuted by Assistant United States Attorneys Frank Talbot and Bonnie Glober.
Northfield Man Sentenced to 106 Months in Prison for Drug Trafficking and Firearm OffensesRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced today that Justin Gauthier, 39, formerly of Northfield, was sentenced to serve 106 months in federal prison for drug trafficking and firearms crimes.
According to court documents, law enforcement officers executed two search warrants on Gauthier’s Northfield residence. During the first search on August 5, 2016, law enforcement officers seized quantities of methamphetamine and fentanyl, multiple firearms, and $13,980 in cash. During the second search on March 10, 2017, quantities of methamphetamine, fentanyl, carfentanil, additional firearms, and $6,791 in cash were seized.
Gauthier previously pleaded guilty on December 15, 2017, to charges that he unlawfully possessed methamphetamine, heroin, fentanyl, and carfentanil with the intent to distribute and that he unlawfully possessed firearms in furtherance of drug trafficking crimes. As part of his plea agreement, Gauthier forfeited 11 firearms to the United States. Over $20,000 in cash seized from Gauthier previously was forfeited by the State of New Hampshire.
“Guns and drugs are a deadly combination and those who use guns as part of the drug trade present a substantial threat to our community,” said U.S. Attorney Murray. “The defendant’s conduct in this case was especially troubling due to his involvement in distributing carfentanil, an extremely dangerous and deadly drug. In order to protect the public, we will work closely with all of our law enforcement partners to identify, disarm, and prosecute those who seek to profit from the sales of illegal drugs.”
This case was investigated by the New Hampshire State Police, Narcotics Investigation Unit, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Tilton and Northfield, New Hampshire Police Departments. The case was prosecuted by Assistant United States Attorney Jennifer Cole Davis.
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Non-Indian Man Residing on Laguna Pueblo Pleads Guilty to Federal Child Abuse ChargeRead the Press Release
ALBUQUERQUE – Aris Jaramillo, 36, a non-Indian man residing in Encinal, N.M., pled guilty today in federal court in Albuquerque, N.M., to a child abuse charge under a plea agreement with the U.S. Attorney’s Office.
Jaramillo was arrested in Aug. 2017, on a criminal complaint charging him with engaging in child abuse on Aug. 13, 2017, on the Laguna Pueblo in Cibola County, N.M. According to the complaint, Jaramillo struck a Laguna Pueblo child multiple times in the head.
During today’s proceedings, Jaramillo pled guilty to an information charging him with child abuse. In entering the guilty plea, Jaramillo admitted that on Aug. 13, 2017, he became upset and hit the victim several times in the head and left red marks on the victim’s head.
At sentencing, Jaramillo faces a maximum penalty of three years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Laguna Pueblo Tribal Police Department and was prosecuted by Assistant U.S. Attorney Nicholas J. Marshall.
Multiple Arrests Dismantle North Little Rock Drug Trafficking OrganizationRead the Press Release
LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Justin C. King, Assistant Special Agent in Charge of the Little Rock Field Office of the Drug Enforcement Administration (DEA), announced the Tuesday morning arrests of 10 defendants who, along with two other defendants, were charged in a 26-count indictment returned by a federal grand jury on March 6, 2018, and unsealed today.
The overall operation, led by the DEA, was part of the Organized Crime and Drug Enforcement Task Force (OCDETF) case “Wheelin’ and Dealin’,” which focused on the distribution of illegal drugs, including opioids and marijuana, in the North Little Rock area. Along with the 10 arrests Tuesday morning—including one in Clarkson, Washington—one defendant was already in state custody and one defendant was issued a summons to appear in court.
“The opioid epidemic has inflicted an unprecedented toll of addiction and suffering on communities throughout our nation,” Hiland said. “We recognize the Eastern District of Arkansas is not immune to this epidemic, and we will continue to work with the DEA and our law enforcement partners to aggressively pursue and prosecute those who illegally traffic these deadly substances.”
During the course of the investigation law enforcement agents utilized three court-authorized wiretaps, executed three search warrants, and made nine controlled buys and seizures. Agents seized nine firearms, 189 oxycodone pills, 187 alprazolam pills, 61 ecstasy pills, and several pounds of marijuana. The defendants were charged with violations of various drug and firearms laws.
“The arrests and seizures in this investigation are the direct result of outstanding partnerships with federal, state and local law enforcement,” DEA ASAC King said. “DEA, along with our law enforcement partners, will continue to pursue those who threaten our communities through the smuggling and distribution of illegal and dangerous drugs such as prescription drugs and marijuana. The abuse of these drugs can have devastating health and societal effects and these arrests strike a significant blow to the illegal drug trafficking trade in this region.”
The indictment alleges that Michael B. Webb, Jr., directed a drug trafficking organization based in North Little Rock that was responsible for the distribution of marijuana, oxycodone, ecstasy, and alprazolam (Xanax) in Pulaski County and surrounding areas. The indictment further alleges that Terry W. Morrison, aka “T,” supplied Webb’s organization withmarijuana by shipping it through the U.S. mail from the state of Washington to central Arkansas.
“Arresting those who abuse the nation’s mail system by using it to transport illegal narcotics is one of Postal Inspectors’ top concerns,” said Thomas L. Noyes, Inspector in Charge of the Fort Worth Division, U.S. Postal Inspection Service. “We are committed to ensuring the safety of our employees and customers from the violence drug traffickers spread throughout the community. I would like to thank the U.S. Attorney’s Office and the many agencies involved for their hard work and dedication to this case.”
Those defendants arrested or served with a summons will appear before U.S. Magistrate Judge Patricia S. Harris on Wednesday, for plea and arraignment, with the exception of Morrison, who will appear before a federal magistrate judge in the Eastern District of Washington, in Spokane, on Wednesday. Webb, who is in the custody of the Arkansas Department of Corrections, will appear before a federal magistrate judge in the Eastern District of Arkansas at a later date.
These cases were investigated by the DEA Little Rock District Office Tactical Diversion Squad composed of DEA agents and local task force officers. DEA was assisted by the North Little Rock Police Department, United States Postal Inspection Service, Pulaski County Sheriff’s Office, and Arkansas Attorney General’s Medicaid Fraud Control Unit. The case is being prosecuted by Assistant United States Attorney Julie Peters.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available on-line athttp://www.justice.gov/edar
Twitter: @EDARNEWS
Defendants, Charges and Maximum Penalties
United States v. Michael B. Webb, Jr., et al.: 4:18CR00179 KGBMICHAEL B. WEBB, JR., 29, North Little Rock, AR $
ROOSEVELT FRANKS, 48, North Little Rock, AR %
TEASHARA HARRISON, 30, North Little Rock, AR %
REGGIE HORTON, 28, Hot Springs, AR %
MICHAEL JAMES, aka WHITE MIKE, 31, Sherwood, AR %
TERRY W. MORRISON, aka T, 66, Clarkston, WA % @
GARRETT SHEETS, 27, North Little Rock, AR %
REGINALD SMITH, aka RED, 29, Stuttgart, AR %
FRANCES VIDAL, 52, North Little Rock, AR *
STACY VINCENT, aka STACY BOLDEN, 29, North Little Rock, AR %
JEREMY WEBB, 24, North Little Rock, AR %
CHANTES WILLIAMS, 38, Little Rock, AR %% = arrested Tuesday, March 27, 2018
$ = Already in state custody
@ = Arrested in Clarkston, Washington
* = Served with summons to appearSTATUTORY SENTENCES
The offenses of Conspiracy to Possess with Intent to Distribute and Distribution/Possession with Intent to Distribute the Schedule I and II controlled substances identified in the indictment are punishable by not more than 20 years’ incarceration with a possible fine up to $1,000,000, and not less than 3 years’ supervised release.
The offenses of Conspiracy to Possess with Intent to Distribute and Distribution/Possession with Intent to Distribute the Schedule IV controlled substance identified in the indictment is punishable by not more than 5 years’ incarceration with a possible fine up to $250,000, and not less than 1 year supervised release.
The offense of Felon in Possession of a Firearm is punishable by not more than 10 years’ incarceration with a possible file of up to $250,000, and not more than 3 years supervised release.
The offense of Possession of a Firearm in Furtherance of a Drug Trafficking Crime is punishable by not less than 5 years and up to life incarceration, consecutive to any other sentence, with a possible fine of up to $250,000, and not more than 5 years supervised release.
The offense of Use of a Communications Facility in Commission of a Drug Trafficking Crime is punishable by not more than 4 years incarceration, a possible fine of up to $250,000, and not more than 1 year supervised release.The offense of Conspiracy to Launder Monetary Instruments is punishable by not more than 20 years’ incarceration with a possible fine up to $500,000, and not less than 3 years’ supervised release.
The offense of Misprision of a Felony is punishable by not more than 3 years’ incarceration, with a possible fine of up to $250,000, and not more than 1 year supervised release.
Mexican National Charged with Illegal Re-entry After DeportationRead the Press Release
Fernando Salinas-Palma, a/k/a “Fernando Gutierrez-Palma,” of Norristown, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Louis D. Lappen. The indictment alleges that on or about February 21, 2018, Salinas-Palma, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about April 6, 2012, April 24, 2012, and June 30, 2012. If convicted the defendant faces a maximum possible sentence of ten years.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations (“HSI”), and is being prosecuted by Assistant United States Attorney Katherine E. Driscoll.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Mexican Man Sentenced to Prison for Illegally Returning to the United States Following Two Prior DeportationsRead the Press Release
A Mexican man who illegally returned to the United States after two prior deportations was sentenced today to more than three months in federal prison.
Noel Ramirez-Bonifacio, age 31, a citizen of Mexico illegally present in the United States and residing in Humboldt, Iowa, received the prison term after a January 11, 2018, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Ramirez-Bonifacio admitted he had previously been deported from the United States on February 24, 2007, and November 14, 2007, and that he illegally reentered the United States without the permission of the United States government. On November 10, 2017, immigration officials learned of Ramirez-Bonifacio’s illegal reentry into the United States following his arrest in Hamilton County, Iowa, for driving while license under suspension. On November 28, 2017, Ramirez-Bonifacio was found by immigration officers during a traffic stop in Hamilton County. Ramirez-Bonifacio had been convicted of possession of drug paraphernalia in Humboldt County in November 2014.
Ramirez-Bonifacio was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Ramirez-Bonifacio was sentenced to 105 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Ramirez-Bonifacio is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 17-CR-3054.
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Maryland Woman Sentenced to Prison for Her Role in Stolen Identity and Tax Refund Fraud SchemeRead the Press Release
A Maryland woman was sentenced today to 28 months in prison for her involvement in a scheme to fraudulently obtain millions of dollars in income tax refunds, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Special Agent in Charge Kimberly Lappin of the Internal Revenue Service Criminal Investigation Washington D.C. Field Office, Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service, Washington Division and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
According to court documents, Cheryle Murphy, 48, participated in a massive and sophisticated stolen identity refund fraud scheme involving a network of more than 130 people, many of whom were receiving public assistance. Conspirators fraudulently claimed refunds for tax years 2005 through 2012, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts, and incarcerated prisoners. The overall case involved the filing of over 12,000 fraudulent federal income tax returns that sought at least $42 million in refunds.
Conspirators played various roles in the scheme to include: stealing identifying information, creating and mailing fraudulent federal tax returns, cashing fraudulent refund checks and forging endorsements of identity theft victims. The false returns typically reported inflated or fictitious income from a sole proprietorship and claimed phony dependents to generate an Earned Income Tax Credit, a refundable federal income tax credit for working families with low to moderate incomes. To date, approximately two dozen participants in this scheme have pleaded guilty.
From approximately August 2010 through November 2010, Murphy participated in claiming approximately $570,280 in fraudulent refunds from the IRS. Murphy agreed to allow her residence to be used for the delivery of tax refund checks and agreed with a co-conspirator to be paid for each check she received. Murphy also deposited into bank accounts under her name two cash deposits and four checks which Murphy received from a co-conspirator and that were obtained as part of the scheme. Ultimately, Murphy deposited a total of approximately $73,396 obtained as part of the scheme, of which she withdrew from ATMs approximately $17,500.
In addition to the term of imprisonment imposed, U.S. District Judge Rosemary M. Collyer ordered Murphy to serve three years of supervised release and to pay $127,180 in restitution to the IRS. She also ordered a forfeiture money judgment of $17,500.
Principal Deputy Assistant Attorney General Zuckerman, U.S. Attorney Liu, Special Agent in Charge Lappin, Inspector in Charge Wemyss and Assistant Inspector General Phillips commended the special agents, who conducted the investigation, and Assistant U.S. Attorneys Ellen Chubin Epstein and Michelle Bradford of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorney Kimberly G. Ang of the Tax Division, who prosecuted the case, as well as Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues.
They also expressed appreciation for the work of Tax Division Trial Attorneys Jeffrey B. Bender, Thomas F. Koelbl, and Jessica Moran and acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein, Assistant U.S. Attorney Chrisellen Kolb, Paralegal Specialists Aisha Keys and Donna Galindo, former Paralegal Specialists Jessica Mundi and Julie Dailey, Litigation Technology Specialist Ron Royal, Investigative Analysts William Hamann and Zachary McMenamin, and Victim/Witness Services Coordinator Tonya Jones.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Maryland Woman Sentenced to Prison for Her Role in Stolen Identity and Tax Refund Fraud SchemeRead the Press Release
WASHINGTON – A Maryland woman was sentenced today to 28 months in prison for her involvement in a scheme to fraudulently obtain millions of dollars in income tax refunds, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Special Agent in Charge Kimberly Lappin of the Internal Revenue Service Criminal Investigation Washington D.C. Field Office, Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service, Washington Division and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
According to court documents, Cheryle Murphy, 48, participated in a massive and sophisticated stolen identity refund fraud scheme involving a network of more than 130 people, many of whom were receiving public assistance. Conspirators fraudulently claimed refunds for tax years 2005 through 2012, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts, and incarcerated prisoners. The overall case involved the filing of over 12,000 fraudulent federal income tax returns that sought at least $42 million in refunds.
Conspirators played various roles in the scheme to include: stealing identifying information, creating and mailing fraudulent federal tax returns, cashing fraudulent refund checks and forging endorsements of identity theft victims. The false returns typically reported inflated or fictitious income from a sole proprietorship and claimed phony dependents to generate an Earned Income Tax Credit, a refundable federal income tax credit for working families with low to moderate incomes. To date, approximately two dozen participants in this scheme have pleaded guilty.
From approximately August 2010 through November 2010, Murphy participated in claiming approximately $570,280 in fraudulent refunds from the IRS. Murphy agreed to allow her residence to be used for the delivery of tax refund checks and agreed with a co-conspirator to be paid for each check she received. Murphy also deposited into bank accounts under her name two cash deposits and four checks which Murphy received from a co-conspirator and that were obtained as part of the scheme. Ultimately, Murphy deposited a total of approximately $73,396 obtained as part of the scheme, of which she withdrew from ATMs approximately $17,500.
In addition to the term of imprisonment imposed, U.S. District Judge Rosemary M. Collyer ordered Murphy to serve three years of supervised release and to pay $127,180 in restitution to the IRS. She also ordered a forfeiture money judgment of $17,500.
Principal Deputy Assistant Attorney General Zuckerman, U.S. Attorney Liu, Special Agent in Charge Lappin, Inspector in Charge Wemyss and Assistant Inspector General Phillips commended the special agents, who conducted the investigation, and Assistant U.S. Attorneys Ellen Chubin Epstein and Michelle Bradford of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorney Kimberly G. Ang of the Tax Division, who prosecuted the case, as well as Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues.
They also expressed appreciation for the work of Tax Division Trial Attorneys Jeffrey B. Bender, Thomas F. Koelbl, and Jessica Moran and acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein, Assistant U.S. Attorney Chrisellen Kolb, Paralegal Specialists Aisha Keys and Donna Galindo, former Paralegal Specialists Jessica Mundi and Julie Dailey, Litigation Technology Specialist Ron Royal, Investigative Analysts William Hamann and Zachary McMenamin, and Victim/Witness Services Coordinator Tonya Jones.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.