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Wednesday 14 February 2018
Two Cedar Falls Men Charged with Possessing Carfentanil Disguised as Oxycodone Pills with Intent to DistributeRead the Press Release
Cameron James Lensmeyer, age 20, and Evan Paul Sage, age 20, from Cedar Falls, Iowa, have each been charged with one count of possessing with intent to distribute carfentanil, as well as other drugs. Sage has also been charged with possessing a firearm in furtherance of a drug trafficking crime. The charges are contained in an Indictment unsealed on February 9, 2018, in United States District Court in Cedar Rapids.
The Indictment alleges that, on or about June 30, 2017, Lensmeyer possessed with intent to distribute carfentanil and marijuana. It further alleges that, on the same date, Sage possessed with intent to distribute carfentanil, marijuana, and cocaine, and that he possessed a firearm in furtherance of those drug crimes.
Evidence at a detention hearing held on February 13, 2018, showed that, in June 2017, the Tri-County Drug Enforcement Task Force conducted a search of Lensmeyer’s and Sage’s shared Cedar Falls residence. During the search, investigators seized over 800 blue pills that appeared to be prescription oxycodone pills (depicted below), over $20,000 in cash, over 30 grams of cocaine, over 600 grams of marijuana, and a loaded .32 caliber handgun. Later testing determined that the blue pills contained carfentanil. Carfentanil is a powerful narcotic that is 10,000 times more potent than morphine and 100 times more potent than fentanyl. It is not approved for use by humans, but is used as an elephant tranquilizer.
If convicted, Lensmeyer faces a maximum possible sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and a lifetime of supervised release following any imprisonment. If convicted on all charges, Sage faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $5,250,000 fine, $200 in special assessments, and a lifetime of supervised release following any imprisonment.
Both men appeared on February 9, 2018, in federal court in Cedar Rapids. Trial for both men is set for March 26, 2018.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being investigated by the Tri‑County Drug Enforcement Task Force and is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2004-LRR.
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Tallahassee Woman Convicted of Drug TraffickingRead the Press Release
TALLAHASSEE, FLORIDA – After a day and a half trial, Jamila Takiyah Hunter, 32, of Tallahassee, was convicted yesterday afternoon of possession with intent to distribute the controlled substance α-Pyrrolidinovalerophenone or “Alpha-PVP.” The verdict was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Hunter’s four co-defendants pled guilty in late 2017 and early 2018 as follows:
- Conspiracy to distribute and possess with intent to distribute a controlled substance:
Travis L. Glasco, Charik James, Tyrail Gallman, and Dora Williams; - Possess with intent to distribute a controlled substance: Glasco, James, and Williams;
- Possession of a firearm in furtherance of drug trafficking: Glasco; and
- Possession of a firearm by a convicted felon: Glasco.
In November 2016, law enforcement officers identified a kilogram package of alpha-PVP destined for delivery to a commercial UPS mailbox rented by Hunter. Agents conducted a controlled delivery of the drug-laden parcel and arrested Hunter after she signed for and accepted the parcel. When agents attempted to contact her co-conspirators, Glasco fled from the parking lot and abandoned a vehicle in the middle of Capital Circle during lunch hour traffic. Subsequent investigation revealed the identity of Hunter’s co-conspirators, who were charged in a superseding indictment.
Glasco, James, Gallman, Williams, and Hunter face a maximum of 20 years in prison for each controlled substance conviction. Additionally, Glasco faces a minimum of 5 years and a maximum of life in prison for possession of a firearm in furtherance of drug trafficking; and a minimum of 15 years and a maximum of life in prison for possession of a firearm by a convicted felon.
The sentencing hearings are scheduled as follows at the U.S. Courthouse in Tallahassee:
- February 23, 2018: Williams (9:30 a.m.);
- April 20, 2018: James (9:00 a.m.) and Gallman (10:30 a.m.); and
- May 10, 2018: Glasco (9:30 a.m.) and Hunter (3:00 p.m.).
This case resulted from investigations by the United States Immigration and Customs Enforcement Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the United States Postal Inspection Service; the Drug Enforcement Administration; the Leon County Sheriff’s Office; and the Tallahassee Police Department. The case was prosecuted by Assistant United States Attorney Michael J. Harwin.
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.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For mcoore information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
- Conspiracy to distribute and possess with intent to distribute a controlled substance:
South Bend Woman Sentenced to 120 Months in PrisonRead the Press Release
SOUTH BEND - Brittany N. Stenberg, age 30, of South Bend, Indiana, was sentenced before South Bend District Court Judge Jon E. DeGuilio for the crime of transporting a minor with intent to engage in criminal sexual activity, announced United States Attorney Thomas L. Kirsch II.
Stenberg was sentenced to 120 months imprisonment followed by 5 years of supervised release.
According to documents in this case, from September 30, 2014, to October 3, 2014, Stenberg transported a minor from Indiana to Illinois for the purpose of engaging in prostitution.
This case was investigated by the Federal Bureau of Investigation with the assistance of the Cook County, Illinois, Sheriff’s Department. The case was handled by Assistant U.S. Attorneys John Maciejczyk and Molly Donnelly.
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South Bend Man Sentenced to 51 Months in PrisonRead the Press Release
SOUTH BEND - George Harvey, age 64, of South Bend, Indiana, was sentenced before South Bend District Court Judge Jon E. DeGuilio for being a convicted felon in possession of a firearm announced United States Attorney Thomas L. Kirsch II.
Harvey was sentenced to 51 months imprisonment followed by 1 year of supervised release.
According to documents in this case, in the middle of the night Harvey was driving without a valid license. Police stopped the car for a traffic violation, found a loaded handgun and a crack pipe. Harvey has approximately eleven (11) felony convictions and twenty (20) misdemeanor convictions. Harvey was awaiting sentencing for a crime in state court when he possessed the firearm.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms with the assistance of the South Bend Police Department. The case was handled by Assistant United States Attorney Joel Gabrielse.
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Second Pittsburgh Woman Sentenced for Role in Fraudulent Tax Return SchemeRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to three years probation on her convictions of mail fraud conspiracy and conspiracy to defraud the United States, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Simone Prater, 29, who was incarcerated pending sentencing. Judge Hornak also ordered that Ms. Prater pay $25,000 in restitution to the Internal Revenue Service.
According to information presented to the court, Sean Brooks, while incarcerated on other charges, prepared and arranged for the filing of more than one hundred fraudulent tax returns on behalf of fellow inmates and other individuals and generated more than $200,000 in fraudulent refunds. The fraudulent refunds were sent to a number of different addresses, and, after forging the endorsement of the payees, the checks were cashed through federally insured financial institutions and through check-cashing establishments. Simone Prater, among others, assisted the conspiracy in a variety of ways, including sending the Internal Revenue Service the fraudulent tax returns, picking up refund checks and providing them to others to cash; disbursing the proceeds of the fraud amongst the conspirators, and providing the names and addresses of closed businesses for Brooks to use as fake employers for taxpayers on the fraudulent tax returns.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Brady commended the Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service and the Department of Homeland Security – Homeland Security Investigations, for the investigation leading to the successful prosecution of Prater.
Providence Man Admits to Selling Silencer Equipped Machine Gun and Fentanyl Laced HeroinRead the Press Release
PROVIDENCE, RI – A Providence man arrested in April 2017 during a year-long Project Safe Neighborhoods investigation to identify individuals possessing or trafficking firearms in and around the Chad Brown neighborhood of Providence, pleaded guilty today in federal court to possessing and selling an unregistered machine gun equipped with a silencer and selling 240 grams of fentanyl laced heroin to an undercover federal law enforcement agent.
Edward Trinidad, 29, plead guilty as charged in an indictment returned on April 6, 2017, to one count each of possession of an unregistered machine, possession of an unregistered silencer, and transfer of a machine gun; two counts of distribution of heroin and fentanyl; and one count of distribution of 100 grams or more of heroin.
Project Safe Neighborhoods is a federal, state and local law enforcement collaboration to identify, investigate and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
Trinidad’s guilty plea is announced by United States Attorney Stephen G. Dambruch; Mickey Leadingham, Special Agent in Charge of the Boston Field Division of ATF; and Providence Police Chief Colonel Hugh T. Clements, Jr.
Appearing before U.S. District Court Chief Judge William E. Smith, Trinidad admitted to the Court that on June 3, 2016, he sold an undercover ATF agent an unregistered Koch Model 94 machine gun equipped with a silencer for $2,500. Trinidad also admitted to the Court that on June 24, 2016, he sold the undercover agent 29.61 grams of fentanyl laced heroin for $1,800; on November 9, 2016, he sold the undercover agent 109.42 grams of fentanyl laced heroin for $5,500; and that on March 31, 2017, he sold the agent 101.15 grams of a material containing fentanyl for $5,500.
In spring 2016, the ATF, the Rhode Island ATF Task Force and the Providence Police Department launched a joint Safe Streets Neighborhoods investigation to analyze shell casings retrieved from crime scenes in and around the Chad Brown neighborhood and elsewhere, utilizing ATF’s National Integrated Ballistic Information Network (NIBN). The investigation was expanded to attempt to determine who possessed various firearms used to commit crimes and the origin of those firearms.
NIBN identifies marks left on shell casings unique to a particular firearm. NIBN then assists in linking crime scenes to a firearm.
The investigation, publicly disclosed in April 2017, resulted in the seizure of the machine gun equipped with a silencer, a .45 caliber semi-automatic pistol, a .40 caliber semi-automatic pistol, a .25 caliber semi-automatic pistol, a .22 caliber revolver; a .380 caliber semi-automatic pistol, various types and quantities of ammunition, substantial quantities of heroin, fentanyl, cocaine and crack cocaine, and approximately $21,000 in suspected drug proceeds.
Trinidad, who has been detained in federal custody since his arrest on April 7, 2017, is scheduled to be sentenced on May 11, 2018. Possession of an unregistered machine gun, transfer of a machine gun and possession of an unregistered silence are each punishable by up to 10 years in federal prison followed by up to 3 years supervised release. Distribution of heroin and fentanyl is punishable by up to 20 years in federal prison followed by up to a life term of supervised release with a minimum 3 years. Distribution of 100 grams or more of heroin is punishable by up to 40 years and no less than 5 years of imprisonment followed by a life term of supervised release with a minimum of 5 years.
At sentencing, Trinidad also faces fines of up to $7,270,000.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The ATF Task Force is comprised of agents and officers from ATF, Providence Police Department, Pawtucket Police Department, Cranston Police Department, Rhode Island State Police, Providence Fire Department and the Rhode Island Department of Corrections.
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Previously Convicted Felon from Essex County Admits Firearms Possession, Drug Distribution OffensesRead the Press Release
NEWARK, N.J. – A Newark man with at least six prior felony convictions today admitted distributing narcotics and possessing multiple firearms, including two assault rifles and a 12-guage shotgun, U.S. Attorney Craig Carpenito announced.
Carlos Bess, 37, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an indictment charging him with two counts of illegal possession of a firearm as a convicted felon and four counts of distribution and possession with intent to distribute heroin and cocaine.
According to documents filed in this case and statements made in court:
Bess admitted that as a previously convicted felon, he knowingly possessed multiple firearms, including two Rebel Arms AR-15 rifles, a loaded .357 revolver, two loaded .380 pistols, a loaded 9 millimeter pistol, and a 12-gauge shotgun. Bess also admitted distributing heroin in an around Newark on Sept. 30, 2015 and Dec. 1, 2015, and knowingly possessing the heroin and more than 500 grams of cocaine that were found at his residence when he was arrested in December 2015. Sentencing is scheduled for May 31, 2018.
U.S. Attorney Carpenito credited special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge John B. Devito, and special agents with the Drug Enforcement Administration’s (DEA) New Jersey Division, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the U.S. Attorney’s Office Organized Crime/Drug Enforcement Task Force Unit in Newark.
18-059
Defense Counsel: Frank Arleo, Esq., West Orange, New Jersey
Pittsburgh Woman Sentenced for Participating in Tax Return SchemeRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to three years of probation on her convictions of mail fraud conspiracy and conspiracy to defraud the United States, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence yesterday on Amber Eubanks, 28, who was incarcerated pending sentencing. Judge Hornak also ordered that Ms. Eubanks pay $26,000 in restitution to the Internal Revenue Service.
According to information presented to the court, Sean Brooks, while incarcerated on other charges, prepared and arranged for the filing of more than 100 fraudulent tax returns on behalf of fellow inmates and other individuals and generated more than $200,000 in fraudulent refunds. The fraudulent refunds were sent to a number of different addresses, and, after forging the endorsement of the payees, the checks were cashed through federally insured financial institutions and through check-cashing establishments. Amber Eubanks, among others, assisted the conspiracy in a variety of ways, including receiving and cashing the fraudulent refund checks using power of attorney provided to her by Brooks, and arranging for checks to be sent to the address of a friend, after which Eubanks would pick up and cash the checks.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Brady commended the Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service and the Department of Homeland Security – Homeland Security Investigations, for the investigation leading to the successful prosecution of Eubanks.
Pittsburgh Man Pleads Guilty to Illegally Distributing Oxycodone PillsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania pleaded guilty in federal court to a charge of possession with intent to distribute and distribution of oxycodone, a Schedule II controlled substance, United States Attorney Scott W. Brady announced today.
Michael C. Pegher, 46, pleaded guilty yesterday to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that Pegher, from April 2013 to September 2014, unlawfully distributed more than 3,000 oxycodone tablets he acquired by prescription from Alan Barnett, M.D. Alan Barnett entered a guilty plea on August 26, 2016, to unlawfully distributing prescriptions for oxycodone to Pegher and others, knowing that the recipients were drug addicts or were unlawfully distributing the drugs to others. Barnett was sentenced to five years probation, to include eight months of home detention, and 250 hours community service. Barnett was also ordered to pay $50,000 in fines.
Judge Conti scheduled Pegher’s sentencing for June 4, 2018, at 3:30 p.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pegher was released on an unsecured bond pending sentencing.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Pegher.
Palmer Man Sentenced for Conspiring to Import Prescription Drugs from PakistanRead the Press Release
BOSTON – A Palmer man was sentenced for conspiring to import prescription drugs from Pakistan.
Harry Aliengena, 65, was sentenced by U.S. District Court Judge Mark G. Mastroianni to two years in prison and three years of supervised release. In November 2017, Aliengena pleaded guilty to one count of conspiracy to import controlled substances, two counts of felony introduction of misbranded drugs with intent to defraud or mislead, and one count of misdemeanor introduction of misbranded drugs.
Between July 2011 and June 2012, Aliengena conspired to import prescription drugs from Pakistan into the United States and distributed misbranded drugs to U.S. customers. Aliengena communicated regularly with a Pakistani company and ordered various drugs - including Ritalin, Percocet, Hydrocodone, Adderall, and Restoril - all DEA controlled substances. Aliengena then reshipped a portion of these drugs to customers in the United States on behalf of the Pakistani company in return for payments and discounts on drugs for his personal use.
United States Attorney Andrew E. Lelling; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Deepika Bains Shukla of Lelling’s Springfield Branch Office prosecuted the case.
Owner of Medford Pizza Shop Pleads Guilty to Federal Tax ChargesRead the Press Release
BOSTON – The owner of Pinky’s Famous Pizza in Medford pleaded guilty yesterday in federal court in Boston in connection with filing tax returns which failed to disclose the cash payroll payments he paid to employees.
Nikita Yanakopulos, 40, pleaded guilty to two counts of aiding and assisting in filing false Forms 941, Employer’s Quarterly Federal Tax Return, which is used to report income taxes, Social Security taxes, and Medicare taxes withheld from employees’ paychecks. U.S. District Court Judge Richard G. Stearns scheduled sentencing for May 22, 2018.
Yanakopulos owned and operated Pinky’s from approximately 2000 to 2016. During that period, Yanakopulos paid several employees by check and cash and other employees entirely in cash. Yanakopulos caused his payroll service to file Forms 941 that only included the payroll paid by check. During those years, Yanakopulos made cash payroll payments to his employees totaling approximately $675,000, but failed to report those payments to his payroll service or pay the required withholding amounts to the IRS. He thereby avoided paying FICA, Medicare, and withholding taxes totaling approximately $172,000.
The charge of aiding and assisting the filing of false tax returns provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. Assistant U.S. Attorney Mark J. Balthazard of Lelling’s Economic Crimes Unit is prosecuting the case.
North Country Man Pleads Guilty to Contraband Cigarette ChargesRead the Press Release
SYRACUSE, NEW YORK – Jeffrey Lazare, age 47, of Hogansburg, New York, pled guilty today to failing to maintain required records relating to the manufacture and sale of cigarettes, announced United States Attorney Grant C. Jaquith and Tom Crone, Assistant Administrator for Field Operations, U.S. Alcohol and Tobacco Trade and Tax Bureau (TTB). Sentencing is scheduled for June 7, 2018, in Utica, New York.
In pleading guilty, Jeffrey Lazare admitted that from January 2014 through August 2014, in Franklin County, he shipped, sold, and distributed quantities of cigarettes in excess of 10,000 in single transactions and failed to maintain required information about these transfers as required by federal law. Lazare further admitted that during this period his business generated proceeds of at least $3,500,000.00 from his unlicensed cigarette manufacturing operation.
As part of his guilty plea today, Lazare admitted that on numerous occasions between January 2014 and August 2014, as the sole owner of Braves Manufacturing and/or Braves Packaging, he shipped, sold, or distributed quantities of cigarettes in single transactions involving in excess of 10,000 cigarettes, to numerous tobacco and cigarette vendors. Lazare failed to keep required records concerning the shipment, sale, and distribution of cigarettes, which records are mandated to include the identity of, and shipping information for, the purchaser.
Lazare also admitted that his failure to maintain required records was part of an effort to avoid paying the Federal Excise Tax (FET) on the cigarettes he manufactured and distributed, and that the thirty-eight (38) separate sales of 10,000 or more cigarettes were subject to an FET of at least $247,623.60 that was not paid.
The plea agreement in this case calls for a recommended sentence for Lazare of one year and a day imprisonment, and forfeiture of $3,500,000, which includes $957,065.00 seized by federal authorities from the defendant’s bank account in 2013. The Court can also impose a term of supervised release of up to one year. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the U.S. Alcohol and Tobacco Trade and Tax Bureau (TTB) and is being prosecuted by Assistant U.S. Attorney Carl Eurenius.
New York Man Admits Orchestrating $45 Million Dollar Compounding Pharmacy SchemeRead the Press Release
NEWARK, N.J. – A North Tonawanda, New York, man today admitted running a large-scale scheme to defraud private and federally-funded health care benefit programs out of millions of dollars by submitting fraudulent claims for medically unnecessary compounded medications, U.S. Attorney Craig Carpenito announced.
Steven M. Butcher, 39, a former pharmaceutical sales representative turned owner and operator of MedMax LLC, a marketing company for compounded medications, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with conspiracy to commit health care fraud and violate the Anti-Kickback Statute.
According to documents filed in this case and statements made in court:
Butcher admitted that from July 2014 through April 2016, he organized a large-scale scheme to defraud health insurance plans by submitting phony claims for medically unnecessary prescription compounded medications, including scar creams, pain creams, and metabolic supplements marketed by MedMax for certain compounding pharmacies.
Through MedMax, Butcher and others targeted individuals covered by private and federally-funded insurance plans that paid for compounded medications and convinced these individuals to obtain them regardless of medical necessity. Butcher also admitted that from December 2014 through June 2015, he conspired with others to pay kickbacks to persuade individuals to bill TRICARE – a health care benefit program for members of the military and their families – for medically unnecessary compounded medications.
During the scheme, Butcher would either send prescriptions directly to a compounding pharmacy or to a billing distribution company, which would then refer the prescription to a particular compounding pharmacy and submit a claim to the appropriate health insurance plan on behalf of that pharmacy. In return, Butcher received anywhere between 40 and 53 percent of the reimbursement received for each paid claim. At that time, health insurance plans were reimbursing compounding pharmacies anywhere between $3,000 and $43,000 for each compounded prescription.
To maximize profit in the compounding scheme, Butcher recruited several individuals as “sales representatives” who were paid a certain percentage for each compounded medication that they caused to be billed to a targeted health insurance plan. If a sales representative was a direct beneficiary of a targeted health insurance plan, Butcher paid them to obtain medically unnecessary compounded medications for themselves or their family. In addition, Butcher paid sales representatives for any individual that they recruited to the scheme.
For instance, Butcher recruited former pharmaceutical employee Peter Pappas, 45, of Drexel Hill, Pennsylvania. As a MedMax sales representative, Pappas received medically unnecessary prescriptions for himself and also recruited several other individuals, including other former pharmaceutical sales representatives Jason Cerge, 41, of Media, Pennsylvania, and Julie Andresen, 40, of Haddonfield, New Jersey. Cerge recruited an individual identified in the information as “CC-1,” a New Jersey resident who targeted TRICARE beneficiaries.
Butcher paid Pappas for each of his personal compounded prescriptions and for each medically unnecessary medication Cerge, CC-1, and Andresen caused to be billed to a targeted health insurance plan.
Butcher and other conspirators, including Pappas, Cerge, and Andresen, took advantage of their relationships with physicians and other health care professionals to get prescriptions. For instance, Butcher used his relationship with an individual identified in the information as “Physician Assistant 1,” to request that Physician Assistant 1 prescribe several medically unnecessary compounded medications for TRICARE beneficiaries. Physician Assistant-1 agreed and Butcher and others profited from phony claims to TRICARE.
As part of his plea agreement, Butcher must forfeit $4,584,597.92 in criminal proceeds and pay restitution of at least $45 million.
Of the $45 million loss Butcher caused to health care benefit programs, at least $3 million was attributable to TRICARE.
For the conspiracy to commit health care fraud charge, Butcher faces a statutory maximum of 10 years in prison. For the conspiracy to violate the Anti-Kickback Statute charge, Butcher faces a statutory maximum of five years in prison. Each offense is also punishable by a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for May 18, 2018.
Pappas, Andresen and Cerge have all pleaded guilty to their roles in the scheme. Pappas and Cerge await sentencing. Andresen was sentenced Feb. 7, 2018 to 15 months in prison.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; and the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey, with the ongoing investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Erica Liu and Vikas Khanna, Deputy Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark and Assistant U.S. Attorney Jafer Aftab of the Asset Forfeiture and Money Laundering Unit.
To date, the New Jersey U.S. Attorney’s Office has prosecuted 19 individuals involved in various compounding pharmacy schemes across New Jersey to defraud health care benefit programs, and has recovered more than $4 million through forfeiture and restitution. These schemes have caused a total loss of more than $70 million to the health care industry, which has affected state, federal and private health care benefit programs.
The New Jersey U.S. Attorney’s Office reorganized its health care practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.38 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Herbert L. Greenman Esq., Buffalo, New York
New Orleans Man Charged with Illegal Possession of a FirearmRead the Press Release
U.S. Attorney Duane A. Evans announced that DARREN RUFFIN, age 26, of New Orleans, was charged in a one-count Indictment with being a felon in possession of a firearm.
According to the Indictment, RUFFIN, who had previously been convicted of a felony in Orleans Parish Criminal District Court, possessed a .40 caliber Glock Model 27 pistol in December 2017.
If convicted, RUFFIN faces a maximum term of imprisonment of ten years, a fine of $250,000, and three years of supervised release following any term of imprisonment.
U. S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
Multi-Agency Collaboration Leads to 69 Searches and over 25 Arrests in Effort to Fight Coordinated Criminal Activity in Northern CaliforniaRead the Press Release
SACRAMENTO, Calif. — Today U.S. Attorney McGregor W. Scott announced the arrest of 18 federal defendants on narcotics and weapons-related charges as part of a multi-agency law enforcement investigation into coordinated criminal activity in Woodland, California. The U.S. Attorney was joined in announcing the results of the operation by FBI Special Agent in Charge Sean Ragan, California Department of Corrections and Rehabilitation Secretary Scott Kernan, Woodland Chief of Police Luis Soler, Yolo County District Attorney Jeff Reisig, and Yolo County Sheriff Ed Prieto.
Early this morning, a coalition of local, state and federal law enforcement officers conducted 69 searches pursuant to federal warrants and parole or probation search conditions at various locations throughout Northern California. Officers arrested 18 individuals on charges alleged in six separate federal indictments and one federal criminal complaints that were unsealed today. Three additional, related criminal complaints were filed this week, one in the Eastern District of California, one in the Western District of Pennsylvania, and one in the District of Oregon. In addition, local officials arrested more than 10 additional individuals on state charges as part of the operation. The investigation, led by the FBI, the California Department of Corrections and Rehabilitation, and the Woodland Police Department, focused on coordinated criminal activity that centered in Yolo County but extended to other Northern California counties and prisons.
Beginning in the spring of 2016, this investigation uncovered organized criminal activity in Woodland, California with ties to criminal organizations located in California’s jail and prison system. Although centered in Yolo County, the investigation revealed that at least 9 other California counties were negatively impacted by these criminal organizatons: Sacramento, Sutter, Colusa, Yuba, Del Norte, Solano, Fresno, Santa Clara, and Siskiyou.
The investigation focused on intercepting communications of those involved in drug and firearms offenses – including cellphone communications, social media communications on Facebook and Instagram, and clandestine communications on Snapchat and other platforms. In several instances, these modes of communication were used to sell weapons and coordinate the sales of cocaine, methamphetamine, and prescription drugs. In some instances, it is alleged that prison inmates directed defendants outside the prisons to smuggle drugs into the prison or to sell and distribute narcotics outside the prison.
U.S. Attorney McGregor W. Scott stated, “Today’s operation is the result of a months-long endeavor involving federal, state, and local law enforcement agencies to disrupt coordinated criminal activity that, although centered in Yolo County, spread to several other Northern California counties. This operation demonstrates how federal law enforcement can join forces with our state and local partners to make our communities safer and stop illegal guns and drugs from flooding our streets.”
“The FBI is committed to joining forces with our state and local partners to effectively combat the gang and drug-related violence that plagues our communities,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Our shared goal is stopping gang violence, getting drugs and weapons off the streets, and helping to bring justice to the victims of crimes committed in our communities. Today’s arrests demonstrate the strength of successful law enforcement collaboration and highlight our shared commitment to the public we serve.”
“Our department is committed to putting a stop to illegal activities conducted by prison gangs in our neighborhoods, schools and communities to further their criminal organizations and instill fear in people,” said Secretary Scott Kernan, California Department of Corrections and Rehabilitation. “The success of this investigation demonstrates how effective our partnerships are with local, state, and federal agencies. When we work together, we effectively are able to target dangerous individuals in and out of prison. I am thankful and proud of the hard work that went into this operation.”
“Over the last several years, many of the defendants who were arrested today and their associates have plagued Yolo County with their criminal activity. This operation has helped to disable their organization at its most basic level and will hopefully have positive long term impacts on public safety,” said Yolo County District Attorney Jeff Reisig.
Operation Silent Night is the product of an investigation by the FBI, California Department of Corrections and Rehabilitation (CDCR), Yolo County District Attorney, Woodland Police Department, and the California Highway Patrol. The following agencies provided substantial assistance: Colusa County Sheriff’s Office, Sacramento Police Department, Sacramento County Sheriff’s Office, West Sacramento Police Department, Yolo County Sheriff’s Office, Davis Police Department, Yuba City Police Department, Yuba County Sheriff’s Office, Sutter County Sheriff’s Office, Solano County Sheriff’s Office, Vacaville Police Department, the Correctional Intelligence Task Force (CITF), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Postal Inspection Service, and the Drug Enforcement Administration (DEA). Assistant U.S. Attorneys Owen Roth and Justin L. Lee are prosecuting the cases.
The federal defendants and their charges are listed below. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
• Aldo Arellano, 24, of Marysville, is charged with distribution of methamphetamine.
• Raul Barajas, 21, of Woodland, is charged with conspiracy to possess with intent to distribute and to distribute controlled substances, and possession with intent to distribute methamphetamine.
• Patrick Botello, 31, of Pelican Bay State Prison, is charged with conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin and using a cellphone to facilitate a drug trafficking offense.
• Israel Covarrubias, 25, of Woodland, is charged with conspiracy to possess with intent to distribute and to distribute controlled substances after having been convicted of a felony drug offense, possession with intent to distribute methamphetamine, distribution of methamphetamine, and using a cellphone to facilitate a drug trafficking offense.
• Milton Escobedo, 28, of Woodland, is charged with conspiracy to possess with intent to distribute and to distribute controlled substances, distribution of cocaine, and using a cellphone to facilitate a drug trafficking offense.
• Rachel Felix, 38, of Woodland, is charged with distribution of methamphetamine.
• Ashley Habash, 28, of Marysville, is charged with conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin and using a cellphone to facilitate a drug trafficking offense.
• Edgar Jimenez, 19, of Sacramento, is charged with distribution of cocaine and using a cellphone to facilitate a drug trafficking offense.
• Justin Johnson, 33, of Sacramento, is charged with possession with intent to distribute methamphetamine and being a felon in possession of a firearm.
• Jose Madrigal-Vega, 31, Woodland, is charged with conspiracy to possess with intent to distribute and to distribute controlled substances, and distribution of methamphetamine.
• Victor Magana, 24, of Woodland, is charged with conspiracy to possess with intent to distribute and to distribute controlled substances, possession with intent to distribute methamphetamine, distribution of methamphetamine, distribution of cocaine, and using a cellphone to facilitate a drug trafficking offense.
• James Masterson, 28, of Newcastle, is charged with using a cellphone to facilitate a drug trafficking offense.
• Brenda Miranda, 21, of Napa, is charged with conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin and using a cellphone to facilitate a drug trafficking offense.
• Reginald Pajimola, 23, of Marysville, is charged with possession with intent to distribute cocaine and using a cellphone to facilitate a drug trafficking offense.
• Mercedez Silva-Sims, 21, of Colusa, is charged with conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin and using a cellphone to facilitate a drug trafficking offense.
• Joshua Sims, 24, of Colusa, is charged with conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin, attempted distribution of methamphetamine, using a cellphone to facilitate a drug trafficking offense, and distribution of cocaine.
• Erica Umbay, 42, of Woodland, is charged with being a felon in possession of a firearm.
• Ricardo Villa, 39, of Pelican Bay State Prison, is charged with conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin, and using a cellphone to facilitate a drug trafficking offense.
• Trevor White, 27, of Sacramento, is charged with conspiracy to possess with intent to distribute and to distribute controlled substances and distribution of methamphetamine.
Two additional defendants are being charged in the District of Oregon and the Western District of Pennsylvania. The Yolo County District Attorney’s Office and the U.S. Attorney’s Office continue to review possible charges against additional potential defendants.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
This case is brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders.
Mineral County woman admits to drug distribution chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Keyser, West Virginia woman has admitted to a drug distribution charge, United States Attorney Bill Powell announced.
Autumn Breann Ward, age 34, pled guilty to one count of “Distribution of Heroin.” Ward admitted to selling heroin in August 2016 in Mineral County.
Ward faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, is prosecuting the case on behalf of the government. The Potomac Highlands Drug and Violent Crimes Task Force investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Man Arrested for “Ponzi” Style Investment Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A Fairfax man was arrested today on charges of orchestrating a multi-year investment fraud scheme causing at least hundreds of thousands of dollars in losses to dozens of victims.
According to allegations in the complaint, Amrit Jaswant Singh Chahal, 30, operated an investment fraud scheme through The Kane Capital Investment Group, LLC (Kane Capital), a company he established and operated. Chahal executed this fraud through a “Ponzi” scheme, whereby funds solicited from new investors were used to pay disbursements to old investors, without disclosing this fact to his investors.
According to allegations in the complaint, Chahal falsely represented that Kane Capital had earned returns of roughly 28 to 34 percent annually, when in fact, Chahal had suffered substantial losses in managing investors’ funds. The complaint further alleges that Chahal created falsified brokerage statements to conceal the losses he had sustained, opened a bank account in the name of an investor without that investor’s knowledge or consent, and siphoned off some of his investors’ funds by transferring the money to accounts he controlled or by spending the funds on personal items.
The criminal complaint charging Chahal with wire fraud was unsealed today. He faces a maximum penalty of 20 years in prison if convicted. 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 Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. Assistant U.S. Attorneys Matthew Burke and Jamar K. Walker are prosecuting the case.
Individuals who believe they may be a victim of this fraud are encouraged to call the Eastern District of Virginia Victim/Witness Coordinators at 1-800-221-6538.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-MJ-70.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
MS-13 gang member sentenced in federal court for illegal gun possessionRead the Press Release
Illegal alien from El Salvador lived on the Westside of Indianapolis
PRESS RELEASE
Indianapolis - United States Attorney Josh Minkler today announced the sentencing of an illegal alien and violent gang member found to be in possession of a firearm. Jose Salvador Gonzalez-Campos, age 27, was sentenced to 1 year and 1 day imprisonment by U.S. District Judge Sarah Evans Barker.
“Protecting our communities from ruthless transnational criminal organizations like MS-13 who exploit our immigration laws and terrorize our communities is a top priority of this office and the Department of Justice,” said Minkler.
Gonzalez-Campos was found in the company of other known MS-13 gang members’ associates in the Columbus, Ohio area. On more than one occasion, investigators observed Gonzalez-Campos wearing a light blue backpack. In addition, photographs posted on a Facebook page associated with Gonzalez-Campos showed him wearing a light blue backpack.
On August 15, 2017, members of an FBI SWAT team executed a search of the defendant’s residence, 2810 West Ray Street, Indianapolis, and agents took Gonzalez-Campos and three other alleged MS-13 gang members into federal custody. During a subsequent search of the residence, agents located a light blue backpack similar to the one Gonzalez-Campos had been seen wearing. In the backpack, agents discovered an El Salvadorian passport with the defendant's name listed on it; a stainless steel Taurus .357 caliber revolver and five rounds of .357 ammunition. In the same room with the backpack, agents found a second passport with Gonzalez-Campos’ name and a photograph that depicted the defendant in various poses with family members.
Gonzalez Campos is an illegal alien and cannot legally possess a firearm.
This 18-month investigation was conducted by the Federal Bureau of Investigation (FBI); Immigration Customs Enforcement; the Columbus, Indiana Police Department; and the Franklin County, Indiana, Sheriff’s Office.
“Violent criminal street gangs like MS-13 threaten our communities. Today’s sentence will not only make our neighborhoods safer, but send a message to other gang members that the FBI and its law enforcement partners will continue to aggressively pursue efforts to disrupt and dismantle organized crime groups such as these,” said Robert Middleton, Acting Special Agent in Charge of the FBI’s Indianapolis Division.
According to Assistant United States Attorney Barry Glickman, who serves as the Deputy Chief of Gun and Violent Crimes, Gonzalez-Campos will likely be removed to his native country of El Salvador after serving his sentence. Judge Barker also imposed a term of three years supervised release.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute illegal immigration cases, to prosecute our most violent criminals and focus local prosecutions on illegal gun possession. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 1.8, 2.2 and 2.9.
MS-13 Member Pleads Guilty to Conspiring to Participate in a Violent Racketeering EnterpriseRead the Press Release
A Maryland gang member pleaded guilty today to his participation in a racketeering enterprise in furtherance of the activities of the gang known as La Mara Salvatrucha, or MS-13, including his participation in two conspiracies to commit murder.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Acting U.S. Attorney Stephen M. Schenning of the District of Maryland; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Henry P. Stawinski III of the Prince George’s County, Maryland, Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief Douglas Holland of the Hyattsville Police Department; Chief Edward Hargis of the Frederick Police Department; Frederick County State’s Attorney J. Charles Smith; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy made the announcement.
Selvin Raymundo Salazar, aka “Inquieto,” aka “Little,” 26, pleaded guilty before the Honorable Judge Peter J. Messitte in the District of Maryland to conspiracy to participate in a racketeering enterprise.
“Selvin Raymundo Salazar and his MS-13 clique terrorized communities in Maryland by committing senseless acts of violence,” said Acting Assistant Attorney General Cronan. “Today’s guilty plea makes plain the Department’s unwavering commitment to working with our federal, state, and local partners to use all lawful tools at our disposal to disrupt the significant threat that this violent and ruthless gang poses to our communities.”
“MS-13 is a transnational criminal organization that presents a direct public safety threat, not just to the Maryland-area communities we’ve been sworn to protect, but also to communities across the country,” said Special Agent in Charge Watson. “Homeland Security Investigations is committed to investigating MS-13 criminal activities, collaborating with our local law-enforcement partners to crackdown on this international gang and ensuring that Maryland remains safeguarded from the violent crimes MS-13 commits.”
According to the plea agreement, MS-13 is a national and international gang composed primarily of immigrants or descendants of immigrants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County, and Frederick County, Maryland. MS-13 members are required to commit acts of violence within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
Pursuant to his plea agreement, Salazar admitted that from at least 2012 through at least 2014, he was a member and associate of the Normandie Locos Salvatrucha clique of MS-13. Salazar admitted that on Feb. 28, 2013, and again on July 30, 2014, for the purpose of maintaining and increasing his position in MS-13, he and other MS-13 members conspired to murder victims that he and his co-conspirators had identified as chavalas.
Specifically, Salazar admitted that on Feb. 28, 2013, in the Lewisdale community of Prince George’s County, Maryland, he and members of the Sailors Locos Salvatrucha Westside clique of MS-13 traveled in a vehicle, searching for chavalas. Salazar was armed with a .380 caliber handgun that belonged to the Normandie clique. After observing an individual that he and his co-conspirators believed to be a chavala, a co-conspirator took the firearm from Salazar, and Salazar and a co-conspirator exited the car and approached the victim, who was standing with a companion. Salazar’s co-conspirator took the handgun from Salazar and shot the victim as the victim’s companion ran away. Salazar and his co-conspirator ran back to the vehicle and he and the occupants of the vehicle fled. Salazar then returned the .380 caliber firearm to the Normandie clique.
Salazar further admitted that on July 30, 2014, in Hyattsville, Maryland, he and at least two other members or associates of the Normandie clique of MS-13 approached three victims. According to Salazar, two of his co-defendants pulled out firearms and shot one of the victims seven times, causing wounds to the victim’s upper torso, right arm and face. The second victim sustained a gunshot wound to his right side. Salazar further stated that, prior to the shooting, he and his co-conspirators had been informed by an associate of MS-13 that the victims were chavalas.
Five of the shell casings recovered from the scene of the July 30, 2014 shooting were linked to fired casings recovered at other MS-13-related crime scenes, including the Feb. 28, 2013 shooting described above; a murder that took place in Hyattsville, Maryland on Nov. 11, 2012; and a shooting that took place in Laurel, Maryland on March 28, 2014.
Two of Salazar’s co-defendants remain charged in the third superseding indictment with various racketeering violations and multiple violent crimes, including murder. The trial of one of the remaining defendants is scheduled to commence on Feb. 20. An indictment is merely an allegation. Those defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Salazar is scheduled to be sentenced on May 23.
HSI Baltimore, the Prince George’s County Police Department, the Frederick County Police Department, the Hyattsville City Police Department, the Montgomery County Police Department, and the Prince George’s County State’s Attorney’s Office investigated the case. Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau and Lindsay Eyler Kaplan are prosecuting the case.
MS-13 Member Pleads Guilty to Conspiring to Participate in A Violent Racketeering EnterpriseRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – A Maryland gang member pleaded guilty today to his participation in a racketeering enterprise in furtherance of the activities of the gang known as La Mara Salvatrucha, or MS-13, including his participation in two conspiracies to commit murder.
Acting U.S. Attorney Stephen M. Schenning of the District of Maryland; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Henry P. Stawinski III of the Prince George’s County, Maryland, Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief Douglas Holland of the Hyattsville Police Department; Chief Edward Hargis of the Frederick Police Department; Frederick County State’s Attorney J. Charles Smith; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy made the announcement.
Selvin Raymundo Salazar, aka “Inquieto,” aka “Little,” 26, pleaded guilty before the Honorable Judge Peter J. Messitte in the District of Maryland to conspiracy to participate in a racketeering enterprise.
“Selvin Raymundo Salazar and his MS-13 clique terrorized communities in Maryland by committing senseless acts of violence,” said Acting Assistant Attorney General Cronan. “Today’s guilty plea makes plain the Department’s unwavering commitment to working with our federal, state, and local partners to use all lawful tools at our disposal to disrupt the significant threat that this violent and ruthless gang poses to our communities.”
According to the plea agreement, MS-13 is a national and international gang composed primarily of immigrants or descendants of immigrants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County, and Frederick County, Maryland. MS-13 members are required to commit acts of violence within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
Pursuant to his plea agreement, Salazar admitted that from at least 2012 through at least 2014, he was a member and associate of the Normandie Locos Salvatrucha clique of MS-13. Salazar admitted that on Feb. 28, 2013, and again on July 30, 2014, for the purpose of maintaining and increasing his position in MS-13, he and other MS-13 members conspired to murder victims that he and his co-conspirators had identified as chavalas.
Specifically, Salazar admitted that on Feb. 28, 2013, in the Lewisdale community of Prince George’s County, Maryland, he and members of the Sailors Locos Salvatrucha Westside clique of MS-13 traveled in a vehicle, searching for chavalas. Salazar was armed with a .380 caliber handgun that belonged to the Normandie clique. After observing an individual that he and his co-conspirators believed to be a chavala, a co-conspirator took the firearm from Salazar, and Salazar and a co-conspirator exited the car and approached the victim, who was standing with a companion. Salazar’s co-conspirator took the handgun from Salazar and shot the victim as the victim’s companion ran away. Salazar and his co-conspirator ran back to the vehicle and he and the occupants of the vehicle fled. Salazar then returned the .380 caliber firearm to the Normandie clique.
Salazar further admitted that on July 30, 2014, in Hyattsville, Maryland, he and at least two other members or associates of the Normandie clique of MS-13 approached three victims. According to Salazar, two of his co-defendants pulled out firearms and shot one of the victims seven times, causing wounds to the victim’s upper torso, right arm and face. The second victim sustained a gunshot wound to his right side. Salazar further stated that, prior to the shooting, he and his co-conspirators had been informed by an associate of MS-13 that the victims were chavalas.
Five of the shell casings recovered from the scene of the July 30, 2014 shooting were linked to fired casings recovered at other MS-13-related crime scenes, including the Feb. 28, 2013 shooting described above; a murder that took place in Hyattsville, Maryland on Nov. 11, 2012; and a shooting that took place in Laurel, Maryland on March 28, 2014.
Two of Salazar’s co-defendants remain charged in the third superseding indictment with various racketeering violations and multiple violent crimes, including murder. The trial of one of the remaining defendants is scheduled to commence on Feb. 20. An indictment is merely an allegation. Those defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Salazar is scheduled to be sentenced on May 23.
HSI Baltimore, the Prince George’s County Police Department, the Frederick County Police Department, the Hyattsville City Police Department, the Montgomery County Police Department, and the Prince George’s County State’s Attorney’s Office investigated the case. Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau and Lindsay Eyler Kaplan are prosecuting the case.
Law Office Manager Forged and Cashed Firm Checks for Personal UseRead the Press Release
PITTSBURGH - An Allegheny County resident pleaded guilty in federal court to a charge of bank fraud, United States Attorney Scott W. Brady announced today.
Anthony Calaiaro, 34, of Pittsburgh, Pennsylvania, pleaded guilty to one count before United States District Judge David S. Cercone.
According to the indictment, from June 2014 through approximately April 2016, Calaiaro, who was employed as an Office Manager for a law firm, wrote checks to himself by forging the signature of a partner from the firm. Calaiaro then cashed the forged checks at various locations and used the funds for his own personal use. The total loss is approximately $827,020.39.
Judge Cercone scheduled sentencing for June 22, 2018 at 11 a.m. The law provides for a total sentence of 30 years in prison, a fine of $1,000,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Anthony Calaiaro.
Jury Convicts Attorney-Imposter Who Operated Fraudulent Nationwide Law PracticeRead the Press Release
PHILADELPHIA – A federal jury yesterday returned guilty verdicts on all counts against Leaford George Cameron, 65, of Burlington, New Jersey, in connection with his operation of a fraudulent nationwide law practice. Cameron was convicted of one count of mail fraud, two counts of wire fraud, and three counts of making false statements.
The government’s trial evidence proved that for over a decade, Cameron posed as an attorney in numerous legal cases pending in federal and state courts around the United States, defrauding over 100 victim “clients” who paid Cameron for what they believed were legitimate legal services. Cameron’s victim “clients” resided around the country and world, including in Pennsylvania, New York, New Jersey, Connecticut, Florida, Illinois, Jamaica, and India.
To gain access to the legal system, and to deceive victims, courts, judges, and opposing lawyers, Cameron repeatedly stated in his legal motions, forms, and filings – often under the penalty of perjury – that he was an attorney with a law license issued by the Pennsylvania Supreme Court. Cameron, who is not a lawyer and has never been a lawyer, used multiple stolen Attorney Identification Numbers belonging to real lawyers, including an Administrative Law Judge in Washington, D.C., when filing his legal forms and motions.
To deceive the world into believing that he was a real lawyer, Cameron devised a fake law firm complete with fake lawyers and fake administrative/support staff. Cameron, who called his fraudulent firm “The Law Offices of Cameron, Hamilton and Associates” or “The Law Offices of Bernstein, Cameron, Hamilton and Associates,” invented the identities of fake lawyers with the last names “Hamilton” and “Bernstein,” neither of whom were real lawyers working at the firm. Cameron obtained and used business cards, letters, and envelopes which contained images of the scales of justice and that listed the name of his fake law firm and the other fake lawyers in the firm. Cameron submitted legal filings to courts in which he forged the name of one of the fake lawyers at his fake firm, and also communicated with victims by writing letters that he signed using different versions of a fake staff worker who Cameron called, at various times, either “Ann Marie Hyde,” “Ann Marie Hall,” or “Ann Marie Hinds.” In one letter Cameron wrote to a victim using the “Ann Marie” identity, Cameron threatened the victim that failing to pay Cameron’s legal bill would cause adverse consequences for the victim’s immigration status in the United States.
Cameron, who ran his fraudulent law practice from his house in Burlington, NJ, created fake identifiers for his home address to deceive his victims and the courts into believing that he had a real commercial office. Specifically, Cameron added the words “Suite B-1,” “Suite B-2,” “PO Box 399,” and/or “PO Box 1399” to his letters and filings to give the impression that his house was a commercial setting. Cameron, however, knew that he could not tell the IRS or the New Jersey government that he was a lawyer in his tax returns, and risk being caught; Cameron thus stated in his tax returns that he either was a “consultant,” “litigation specialist,” or “legal consultant.”
Cameron, who claimed to have earned various degrees including a BSC, MBA, LLB and LLM, had little idea what he was doing in his victims’ legal matters, causing significant harm to his victims and their cases. In one home foreclosure case pending in the Delaware County, Pennsylvania Court of Common Pleas, Cameron’s victim “client” lost her home as a result of the lawsuit; the same victim “client” later hired Cameron for a guardianship matter pending in the Probate Court of Gwinnett County, Georgia, which also resulted in a loss. Cameron also posed as a lawyer in other types of cases, including in an automobile accident case and a divorce case. Cameron also represented dozens of victim “clients” in their immigration matters pending in immigration courts around the country, including in Chicago, IL, New York City, NY, Philadelphia, PA, and Hartford, CT. Cameron’s fraudulent legal work in those cases resulted in his victim “clients” suffering serious adverse consequences, including being ordered removed from the United States.
Cameron’s sentencing was set for Thursday, May 31, 2018, before U.S. District Judge Gene E.K. Pratter. Cameron faces a statutory maximum sentence of 75 years in prison, up to $1.5 million in fines, three years of supervised release, and a $600 special assessment.
The case was investigated by Homeland Security Investigations (HSI), within the U.S. Department of Homeland Security, with assistance provided by U.S. Citizenship and Immigration Services. It was prosecuted by Assistant United States Attorney James Petkun.
Indictment for Attempted Production of Child Pornography Returned for Man Accused of Recording Video in High School Locker RoomRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announced that today the grand jury returned an indictment charging Timothy Brian Burnette, age 40, of Union Point, Georgia, with two counts of attempted production of child pornography.
The charges against Mr. Burnette stem from the allegation that while working as a custodian at Oconee County High School, he repeatedly used a cell phone to record video of minor students while they were changing in the locker room. Mr. Burnette was previously arrested on state charges of illegal surveillance and remains in custody in the Oconee County Jail.
Each of the charges against Mr. Burnette carries a mandatory minimum sentence of 15 years in federal prison, up to a maximum of 30 years in prison, a maximum fine of $250,000.00, at least 5 years and up to a lifetime of supervised release, and registration as a sex offender.
A copy of the indictment is attached. The indictment is only an allegation of criminal conduct. A defendant is presumed innocent until and unless proven guilty in a court of law.
This case is being investigated by the Oconee County Sheriff’s Office and the Federal Bureau of Investigation. The Georgia Bureau of Investigation has provided additional assistance. Assistant U.S. Attorney Peter D. Leary is prosecuting the case for the Government.
Indianola Man Sentenced to 235 months in Prison for Child Pornography OffensesRead the Press Release
DES MOINES, Iowa – On February 2, 2018, Scott Jacob Smith, age 33, of Indianola, appeared before United States District Court Judge Stephanie M. Rose and was sentenced to 235 months in prison following a jury trial where he was found guilty of receipt of visual depictions of minors engaging in sexually explicit conduct and possession of child pornography.
According to evidence presented at trial, a search warrant was executed at Smith’s residence in Indianola on August 1, 2013, and his computer was seized by law enforcement. A subsequent forensic examination of Smith’s computer showed he received and possessed images containing child pornography.
This investigation was conducted by the United States Department of Homeland Security – Homeland Security Investigations, Iowa Division of Criminal Investigation – Internet Crimes Against Children Task Force, United States Marshals Service, Indianola Police Department, and Iowa Department of Human Services. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the United States Department of Justice’s “Project Safe Child” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children.Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Illegal Alien Guilty of Drug Trafficking, Immigration Violations in East TexasRead the Press Release
TYLER, Texas – A 48-year-old Mexican national illegally residing in Carthage, Texas, has been found guilty of drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Alan R. Jackson today.
Conrado Depaz Arellano was found guilty by a jury of conspiracy to possess with intent to distribute cocaine today following a three-day trial before U.S. District Judge Ron Clark. Additionally, Arellano pleaded guilty on Feb. 12, 2018, to being illegally in the United States after having been deported.
According to information presented in court, on Aug. 2, 2017, a vehicle was stopped for a traffic violation in the Western District of Texas by U.S. Border Patrol Agents. The vehicle contained two kilograms of cocaine, which was intended to be delivered to Arellano in Carthage, Texas. Federal agents arranged for the cocaine to be delivered to Arellano in Carthage as planned and at that time arrested him for drug trafficking crimes. At the time of his arrest, Arellano was in possession of two Mexican identification documents. Further investigation revealed Arellano had been deported to Mexico in 2012 and 2007 and had since reentered the United States illegally. Arellano was indicted by a federal grand jury on Sep. 20, 2017.
Under federal statutes, Arellano faces up to 40 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Drug Enforcement Administration, U.S. Border Patrol and ICE-Homeland Security Investigations. This case is being prosecuted by Assistant U.S. Attorneys Allen Hurst and Jim Noble.
Idaho Falls Man Sentenced for Filing a False Claim with the U.S. Department of EnergyRead the Press Release
POCATELLO – Michael Hendrickson, 56, Idaho Falls, was sentenced yesterday to one year of confinement, including six months of imprisonment and six months of home detention, for filing a false claim with the United States Department of Energy, U.S. Attorney Bart Davis announced. Hendrickson pleaded guilty to the charge in November 2017.
Hendrickson worked for Paramount Supply of Idaho Falls. In April 2009, Hendrickson created another business entity. Both Paramount Supply and Hendrickson’s other business sold equipment to the Department of Energy at the Idaho National Laboratory (INL). In June and July 2010, while still employed with Paramount Supply, Hendrickson ordered a number of valves and transmitters from Paramount for the INL. Hendrickson shipped the items to the INL and billed Battelle Energy Alliance, the contractor which operates the INL for the U.S. Department of Energy, approximately $80,000 for the items. The bill submitted by Hendrickson to the INL fraudulently represented that the items were being sold to the government by Hendrickson’s other business, not Paramount, and payment went to Hendrickson’s business. Actually, the items had been paid for by Paramount Supply. Because of Hendrickson’s false claim, the government paid Hendrickson’s business for the items which had been stolen from Paramount Supply.
U.S. District Judge David C. Nye also ordered Hendrickson to pay restitution of $337,000 to Paramount and ordered that Hendrickson pay a fine of $5,000 and be on supervised release for three years.
The case was investigated by the Federal Bureau of Investigation and the Department of Energy Office of Inspector General.
Honduran National Pleads Guilty to Illegal Use of a Social Security NumberRead the Press Release
United States Attorney Duane A. Evans announced that ALLAN ARZU MATAMOROS-BANEGAS (“MATAMOROS-BANEGAS”), age 31, pleaded guilty today to a one-count Bill of Information charging him with illegal use of a social security number in violation of Title 42, United States Code, Section 408(a)(7)(B).
According to court records, MATAMOROS-BANEGAS knowingly and with the intent to deceive, falsely represented that a social security number was assigned to him by the Commissioner of Social Security when, in fact, as MATAMOROS-BANEGAS knew, the social security number had not been assigned to him. His deception and illegal use of the social security number was done for the purpose of obtaining employment located in the Eastern District of Louisiana. At sentencing, which is currently set for May 17, 2018, MATAMOROS-BANEGAS faces a maximum term of imprisonment of five years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment.
U.S. Attorney Evans praised the work of the U. S. Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Michael M. Simpson is in charge of the prosecution.
Four from Cleveland indicted for trafficking Oxycodone and hundreds of pounds of marijuana; five firearms and $2.1 million seizedRead the Press Release
Four Cleveland men were named in a 25-count federal indictment that charges they conspired to distribute at least 220 pounds of marijuana and 345 pills of Oxycodone, law enforcement officials said.
Indicted are Amer Jabir, 37; Ahmad Jabir, 22; Aymen Abdelrahim, 28, and Gerald Knox, 37. All four are charged with conspiracy to possess with intent to distribute least 100 kilograms of marijuana and 345 pills of Oxycodone between 2015 and 2018.
There are additional charges for distribution of marijuana, distribution of Oxycodone, and related charges. Knox is charged with possession of a firearm related to drug trafficking and being a felon in possession of a firearm.
The indictment also seeks to forfeit more than $2.1 million in cash, five firearms, a 2015 Range Rover, a $5,000 casino poker chip and miscellaneous jewelry seized from locations in Cleveland, North Olmsted and Chicago as part of the investigation.
Amer Jabir was the leader of an organization that brought hundreds of pounds of marijuana from grow operations in California to Chicago and then Cleveland. The marijuana was hidden in secret trap compartments in vehicles that were then placed in the back of car haulers, according to court documents.
Some of the pills and marijuana were sold by Aymen Abdhelrahim, from a gas station on West 25th Street where Abdelrahim worked as a clerk, according to court documents.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Federal Bureau of Investigation, the North Olmsted Police Department, the Westlake Police Department, the Ohio State Highway Patrol, U.S. Customs and Border Protection and the Westshore Enforcement Bureau. It is being handled by Assistant U.S. Attorneys Justin Seabury Gould and Robert F. Corts.
An charge is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Four Individuals Indicted in February 2018 Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the February 2018 Federal Grand Jury.
"The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable."
RICKY LEE BANKS JR, age 40, of Muskogee, OklahomaCounterfeiting An Obligation Of The United States (4 counts)
In or about November, 2017, to on or about January 16, 2018, in the Eastern District of Oklahoma, the Defendant, RICKY LEE BANKS JR., with intent to defraud, did counterfeit and falsely make an obligation of the United States, that is, falsely made and counterfeited Federal Reserve Notes, in violation of Title 18, United States Code, Sections 471 and 2, punishable by not more than 20 years imprisonment, a fine up to $250,000.00 or both for each count.
The charges arose from an investigation by the Muskogee Police Department and the United States Secret Service.
Assistant United States Attorney John David Luton.
CARLOS PERALTA, age 32, of Wagoner, OklahomaPossession With Intent To Distribute Methamphetamine
On or about June 22, 2017, within the Eastern District of Oklahoma, the Defendant, CARLOS PERALTA, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years imprisonment, a fine up to $10,000,000.00 or both.
The charges arose from an investigation by the Cherokee County Sherriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Chris Wilson
WAYLON LEE WILLIAMS, age 36, of Stilwell, Oklahoma
CHASSIDY DAWN BURKE, age 36, of Stilwell, OklahomaDrug Conspiracy (1 count each)
On a date unknown to the Grand Jury prior to July 26, 2017, and continuing until on or about January 29, 2018, within the Eastern District of Oklahoma and elsewhere, the defendants, WAYLON LEE WILLIAMS and CHASSIDY DAWN BURKE, did knowingly and intentionally combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to commit offenses against the United States in violation of Title 21, United States Code, Section 846, as follows: possession with intent to distribute and distribution of 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A); and possession with intent to distribute less than 50 kilograms of a mixture or substance containing a detectable amount of Marijuana, a Schedule I Controlled Substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(D), punishable by not less than 10 years and not more than life imprisonment, a fine up to $10,000,000.00 or both.
The charges arose from an investigation by the Adair County Sheriff’s Office, the Oklahoma Bureau of Narcotics, and the Drug Enforcement Administration.
Assistant United States Attorney Rob Wallace
Fort Myers Armed Career Criminal Sentenced to Fifteen Years for Firearms OffenseRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Jovon McClures (40, Fort Myers) to 15 years in federal prison for possessing a firearm as a convicted felon. The Court also ordered him to forfeit the firearm used during the offense. He pleaded guilty on October 31, 2017.
According to court documents, on January 29, 2017, officers from the Fort Myers Police Department located a loaded firearm in McClures’s jacket pocket while investigating a loud argument in an apartment parking lot. As a previously convicted felon, McClures is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Myers Police Department. It was prosecuted by Assistant United States Attorney Simon R. Eth.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety – one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Former San Juan Municipal Police Officer Sentenced to 40 Years in Prison for Violating the Rico Act in Puerto RicoRead the Press Release
SAN JUAN, P.R. – Today, U.S. District Court Judge Jay A. García-Gregory sentenced former San Juan Municipal Police officer Carlos Velázquez-Fontanez to 40 years in prison for RICO Act violations, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Puerto Rico Police Department (PRPD) San Juan and Carolina Strike Forces were in charge of the investigation, with the assistance of PRPD’s Major Crimes Unit.
After a 17-day jury trial, on November 9, 2016, Velázquez-Fontanez was found guilty of racketeering, drug trafficking, drive-by shooting murders and related firearm offenses. During trial, the government presented photos, videos, other documentary evidence, and witness testimonies that proved that the defendant had been participating actively in the drug trafficking organization "La Rompe ONU" and found him guilty of all charges against him.
"La Rompe ONU" was a criminal organization that sold crack, cocaine, heroin, and marihuana in public housing projects, including: Jardines del Paraíso, Villa Andalucía, Alturas de Cupey, Jardines de Cupey, Brisas de Cupey, Los Claveles, Nuestra Señora de Covodonga, Los Lirios, Jardines de Monte Hatillo, Jardines de Campo Rico, Jardines de Berwind, San Martín, Monte Park, and Villa Lomas Verdes Public Housing Projects; as well as El Polvorín Ward, Mango Sector and other surrounding areas within the municipalities of San Juan, Trujillo Alto and Carolina, PR. Members of the organization used violence and intimidation, including murder, to increase the power, territory, and profits of "La Rompe ONU."
According to the evidence presented during trial, Velázquez-Fontanez participated during a drive-by shooting known as the "Tortuguero Massacre." On June 25, 2011, during a "drive-by" shooting, enforcers from the organization shot and killed Edwin Díaz-Cruz, Hervin Valcarcel-Martínez, aka "Prieto," Javier Catala-Bermúdez, and Orlando Meléndez-Villegas.
"We remain undeterred in our commitment to ensure safety and seek justice for victims of violent crimes in Puerto Rico," said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. "‘I thank our team of prosecutors and our federal law enforcement partners for the teamwork they showed in leading us to a successful outcome. We will continue to use all the tools at our disposal to build solid cases against violent criminals and bring them to justice."
Assistant U.S. Attorneys Alberto López-Rocafort and Victor O. Acevedo-Hernández were in charge of the prosecution of the case. They were assisted by Attorney from the United States Department of Justice’s Capital Crimes Section and Organized Crime and Gang Section. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Puerto Rico Police Department (PRPD) were in charge of the investigation.
Former President and CEO of Pennsylvania Health Services Company Indicted for Conspiring to Defraud the IRS and Filing False Tax ReturnsRead the Press Release
PITTSBURGH – The former President and Chief Executive Officer of a Pennsylvania health services management company has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to defraud the United States and filing fraudulent income tax returns, United States Attorney Scott W. Brady announced today.
The 10-count indictment, returned on February 13, named Joseph W. Nocito as the sole defendant.
"This indictment charges Joseph Nocito, the CEO and President of AHS, Inc., with defrauding the Internal Revenue Service through a multi-year, multi-million dollar tax fraud," stated U.S. Attorney Brady. "The indictment alleges that Nocito conspired to conceal millions of dollars in personal income from the IRS in two ways: first, by causing construction costs for his multi-million dollar personal residence to be recorded as business expenses of companies he controlled, and second, by devising an elaborate shell game where he transferred money among his companies for the purpose of evading taxes. My office is committed to protecting the taxpayers of western Pennsylvania from those who would defraud the United States government."
Ed Wirth, Acting Special Agent in Charge, IRS Criminal Investigation, added, "When dishonest individuals fraudulently write off their personal expenses and underreport their income, this cheats the honest taxpayers who pay their fair share for the government services and protections that we all enjoy. The Special Agents of IRS Criminal Investigation remain committed to investigating and recommending prosecution of these individuals."
According to the indictment, Joseph W. Nocito was CEO and President of Automated Health Systems Inc. (AHS), a Pittsburgh-based company that administered public health programs for state and local governments. The indictment alleges that Nocito conspired with others to defraud the IRS by fraudulently claiming millions of dollars of personal expenses as corporate business expenses – including the construction of his 39,000 square-foot home in Sewickley, which Nocito referred to as "Villa Noci," payments on a Jaguar, Maserati, and Rolls Royce, a personal butler and cook, and country club memberships. Nocito is also charged with understating his income on his personal tax returns by not reporting the income he diverted for personal expenses.
The indictment further alleges that Nocito concealed millions in taxable profits of AHS by shuffling millions in payments between AHS and other companies Nocito owned, such as Northland Properties, Golden Triangle Leasing, Management Financial Services, in order to fraudulently deduct the payments as business expenses and reduce the tax liability of AHS. Nocito is accused of falsely characterizing these payments as management, administrative and consulting expenses, and in turn fraudulently deducting the payments on corporate tax returns filed with the IRS.
The law provides for a total sentence of 32 years in prison, a fine of $2,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorneys Gregory C. Melucci, Mary M. Houghton, and Nelson P. Cohen, as well as Department of Justice Tax Division Trial Attorney Jeffrey B. Bender, are prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation and the United States Postal Inspection Service 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.
Former President and CEO of Pennsylvania Health Services Company Indicted for Conspiring to Defraud the IRS and Filing False Tax ReturnsRead the Press Release
The former President and CEO of a Pennsylvania health services management company was indicted by a federal grand jury in Pittsburgh yesterday for conspiring to defraud the United States and filing fraudulent income tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and U.S. Attorney Scott W. Brady for the Western District of Pennsylvania.
According to the indictment, Joseph W. Nocito was CEO and President of Automated Health Systems Inc. (AHS), a Pittsburgh-based company that administered public health programs for state and local governments. The indictment alleges that Nocito conspired with others to defraud the Internal Revenue Service (IRS) by fraudulently claiming millions of dollars of personal expenses as corporate business expenses – including the construction of his 39,000 square-foot home in Sewickley, which Nocito referred to as “Villa Noci,” payments on a Jaguar, Maserati, and Rolls Royce, a personal butler and cook, and country club memberships. Nocito is also charged with understating his income on his personal tax returns by not reporting the income he diverted for personal expenses.
The indictment further alleges that Nocito concealed millions in taxable profits of AHS by shuffling millions in payments between AHS and other companies Nocito owned, such as Northland Properties, Golden Triangle Leasing, Management Financial Services, in order to fraudulently deduct the payments as business expenses and reduce the tax liability of AHS. Nocito is accused of falsely characterizing these payments as management, administrative and consulting expenses, and in turn fraudulently deducting the payments on corporate tax returns filed with the IRS.
Nocito faces a statutory maximum sentence of five years in prison on the conspiracy charge and three years in prison on each count of filing a fraudulent tax return. He also faces a period of supervised release, restitution and monetary penalties. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
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 Brady praised special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U. S. Attorneys Gregory C. Melucci, Mary M. Houghton and Nelson P. Cohen and Trial Attorney Jeffrey B. Bender of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former New Rochelle Schools Director Sentenced for Bribery SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that JOHN C. GALLAGHER JR., the former head of Buildings and Grounds at the City of New Rochelle School District, was sentenced to 37 months in prison for his role in a scheme to solicit bribes from an outside contractor to channel school district business to the contractor’s company for bribery. GALLAGHER pled guilty on October 10, 2017, before U.S. District Judge Kenneth M. Karas, who imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “John C. Gallagher Jr. was in a position of trust while working for the City of New Rochelle School District. But instead of ensuring that the City’s schools and grounds were safe and sound to educate children, he used his position to demand – and receive – more than $125,000 in kickbacks from a contractor for the school district. Thanks to our law enforcement partners, Gallagher’s scheme is over, and he has been sentenced for his crimes.”
According to the allegations contained in the Indictment, as well as statements made in related court filings and proceedings:
The City School District of New Rochelle, which receives federal benefits significantly in excess of $10,000 each year, has a Buildings and Grounds Department. It is responsible for, among other things, maintenance and repair of facilities used by the School District to educate children. To do certain maintenance and repair work, the School District uses outside contractors.
Among the outside contractors used by the School District are companies with specialties – in, for example, masonry, electrical work, plumbing, and carpentry – sometimes referred to as “bid vendors” or “time and materials” contractors. These contractors bid annually, using set rates, and if awarded contracts, are paid by the School District to handle any projects within the contractors’ specialties that do not exceed a certain threshold cost. (As of 2009, that amount, per New York State law, was $35,000.) A more costly project that exceeds the threshold is offered for bid and awarded to the lowest responsible bidder, unless the project is deemed a health and safety emergency (i.e., a major plumbing leak during the school year), in which case, the time and materials vendor may be asked to do the job, regardless of the cost.
GALLAGHER, the defendant, was the School District’s Director of Environmental Services, overseeing the School District’s buildings and grounds. To fill this position, the School District contracted with a company that provided, among other things, management services (“Company-1”). GALLAGHER, as an employee of Company-1, was thereby made the School District’s Director of Environmental Services, and worked full-time in the School District, as its agent, with authority to act on its behalf. GALLAGHER, as Director of Environmental Services, had influence over which contractors were awarded work by the School District, and over whether, when, and how contractors were assigned work and paid for work.
Mauro Zonzini owned and wholly controlled a construction company in Westchester County (the “Company”). The Company contracted with the School District to do masonry work, and was hired each year by the School District as its time and materials contractor for masonry work.
From 2009 through 2013, GALLAGHER engaged in a corrupt, criminal scheme in which he solicited, demanded, and accepted bribes in the form of cash payments intending to be influenced and rewarded in connection with the School District’s business and transactions with the Company. The bribe payments that GALLAGHER solicited, demanded, and accepted were paid by Zonzini. Routinely, after the School District paid the Company for work performed, GALLAGHER met in person with Zonzini in a parking lot, where Zonzini provided GALLAGHER with a kickback in the amount of 10 percent of the payment the Company had received from the School District. In this way, GALLAGHER received dozens of cash bribe payments from Zonzini, over the course of at least approximately four years, which together amounted to approximately $125,000. GALLAGHER solicited, demanded, and accepted the bribe payments intending to be influenced in and rewarded for the School District’s decisions to award the Company contracts for masonry work, to assign masonry projects to the Company, and to make timely payment to the Company.
To avoid detection of his corrupt scheme, GALLAGHER concealed the cash bribe payments he received from Zonzini. GALLAGHER did so, as he admitted during a secretly recorded conversation, by keeping the payments “in my car or in my trunk.” In some instances he used the cash to make payments directly toward living expenses, without depositing it in his bank account. For example, during the corrupt scheme, GALLAGHER used the bribe money to make credit card payments, car payments, and, as he admitted during the secretly recorded conversation, “I paid for some college.”
* * *
In addition to the prison term, GALLAGHER, 53, of Harrisburg, Pennsylvania, was sentenced to two years of supervised release, ordered to forfeit $125,000, and pay restitution in the same amount.
Zonzini, 52, of South Carolina, pled guilty on May 9, 2017, to one count of bribing a public official, which carries a maximum sentence of 10 years in prison, and one count of tax evasion, which carries a maximum sentence of five years in prison. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge. Zonzini will be sentenced on February 16, 2018. His case is assigned to U.S. District Judge Nelson S. Román.
Mr. Berman praised the outstanding investigative efforts of the United States Postal Inspection Service, the Internal Revenue Service, Criminal Investigation, and the U.S. Attorney’s Office’s Special Agents. He also thanked the U.S. Department of Education’s Office of Inspector General for its assistance.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Kathryn Martin and Benjamin Allee are in charge of the prosecution.
Former Chief Financial Officer of Rocky Boy Health Clinic Sentenced to PrisonRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced that on February 14, 2018, U.S. District Judge Brian Morris, sentenced Kathy Ann Sutherland, 61, of Box Elder, Montana, to 12 months and 1 day of imprisonment and two years of supervised release for the crime of Wire Fraud. Sutherland must also pay $111,902.50 in restitution and a $100 special assessment.
Sutherland began working as the Cash and Grants Manager for the Rocky Boy Health Clinic of the Chippewa Cree Tribe in Box Elder, Montana. Ultimately, Sutherland became the interim Chief Financial Officer for the Health Clinic. In Sutherland’s roles at the Health Clinic, one of her duties included administering the employee loan programs. For example, Sutherland issued loan checks to Rocky Boy Health Board employees, including issuing loan checks to herself. Before a loan check could be disbursed, the applicant was required to fill out a loan application and submit it to the loan committee for approval. New loans were not to be issued if an individual owed over $800 to the loan program. Sutherland used her position to circumvent this process and take out over $111,902.50 in loans—far in excess of the $800 limit. Even assuming Sutherland continued to pay back the loans through payroll deductions, (which she ceased doing) Sutherland would have to work until she was at least 81 years old, assuming no interest accrued.
In a sentencing memo filed in federal court, Ryan G. Weldon stated, “Sutherland’s actions are particularly problematic when she knew about other prosecutions, and she was serving as the interim chief financial officer during some of her embezzlement. Her actions were calculated and without regard for the law.”
The Sutherland case was investigated by Health and Human Services, Office of Inspector General (HHS-OIG). This case is the latest in a series of prosecutions and convictions relating to public corruption, fraud, and theft in federal grants, contracts, and programs brought by the investigators and prosecutors of the U.S. Attorney’s Guardians Project, an anti-corruption strike force created in 2011.
Fifth Member of Drug Conspiracy Sentenced to 20 YearsRead the Press Release
NEWPORT NEWS, Va. – A Newport man was sentenced today to 20 years in prison for his role in a cocaine trafficking conspiracy and obstruction of justice.
According to court documents, Marcus Davis, 37, was an associate of Marvin O’Neal Carter, the former leader of a large-scale cocaine trafficking conspiracy who was sentenced to 27 years in prison on Nov. 2, 2017. Davis sold heroin from Carter’s 39th Street garage and helped Carter conceal the delivery of 54 kilograms of cocaine on October 20, 2016. He also obstructed the federal drug investigation by writing a letter to an uncharged member of the conspiracy after Davis met with federal agents in May, 2017.
Marvin O’Neal Carter, 50, along with Michael Stephen Kuna, 42, of Canada, and brothers Hilario Rodriguez, 50, and Daniel Rodriguez, 49, both of California, were charged with conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. Carter was also charged with possession with intent to distribute 500 grams or more of cocaine, possession with intent to distribute heroin, possession of a firearm during a drug trafficking crime and maintaining a drug involved premises.
All five members of the drug trafficking conspiracy have been convicted and sentenced:
Defendant
Sentencing Date
Total Sentence
Marcus Davis
Feb. 14, 2018
240 months
Marvin Carter
Nov. 7, 2017
324 months
Michael Kuna
Oct. 19, 2017
144 months
Daniel Rodriguez
July 20, 2017
120 months
Hilario Rodriguez
July 12, 2017
162 months
According to court documents, agents observed the arrival of a tractor-trailer at a garage leased by Carter. With the assistance of Michael Kuna, who stopped traffic and directed the driver, the trailer was off-loaded next to the garage. Agents observed Daniel and Hilario Rodriguez arrive and park in Carter’s garage parking lot. The men then worked together to unload cocaine from a hidden compartment located underneath the trailer. A short time later, Kuna left and returned with two large duffel bags which were taken underneath the trailer. Kuna left the location after loading the now-empty duffel bags into a vehicle. Law enforcement agents conducted a traffic stop on Kuna and located the two duffle bags which smelled of bulk currency. As Kuna was being detained, agents executed two federal search warrants on the garage and trailer. During the search, approximately 54 kilograms of cocaine and 100 bundles of cash in $5,000 to $10,000 stacks, totaling nearly $1 million, were recovered. The search of the garage also led to the recovery of a firearm, a quantity of heroin and more cocaine, in addition to approximately $49,000 in cash from a safe.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, Michael C. Grinstead, Acting Chief of Newport News Police, Terry L. Sult, Chief of Hampton Police Division, and Anton A. Bell, Commonwealth’s Attorney for the City of Hampton, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Managing Assistant U.S. Attorney Howard J. Zlotnick and Special Assistant U.S. Attorney Amy E. Cross prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-76.
Federal Jury Convicts Charlotte Man of Using an Altered Document to Obtain a United States Passport, Passport Application Fraud and Making False Statements to Federal AgentsRead the Press Release
CHARLOTTE, N.C. – A federal jury convicted John Daley Strothers, 59, of Charlotte, on four counts of using a false document in a federal matter, making a false statement to obtain a passport, possession of a fraudulent identification document (birth certificate) and making a false statement to federal agents, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Murray is joined in making today’s announcement by Richard J. Ingram, Special Agent in Charge, Diplomatic Security Service, Washington Field Office, U.S. Department of State.
According to filed court documents and evidence presented at trial, Strothers engaged in fraudulent conduct to obtain a United States passport in the name of his alias Giovanni Daliente Strassini. Trial evidence established, on September 28, 2015, Strothers submitted an application for a United States passport at a postal facility in Charlotte. In support of the passport application, Strothers attached an Ohio birth certificate that was altered. The birth certificate Strothers submitted identified him in the name of his alias “Giovanni Daliente Strassini,” and it contained several other fraudulent alterations. Because of these alterations, Strothers’ application was referred to the fraud section of the United States passport processing center in Charleston, South Carolina. A witness from that section testified that they screen passport applications and the documents attached to them to ensure that only applicants who establish their true identities and prove their citizenship statuses are issued a United States passport.
During trial, a witness from the Ohio Department of Health, Bureau of Vital Statistics, testified that nobody under the name “Giovanni Daliente Strassisni” had even been born in the State of Ohio. Trial evidence also established that the true birth certificate for the Strothers was issued in the name “John Daley Strothers.” Trial evidence further established that Strothers had previously submitted his true birth certificate, identifying himself as “John Daley Strothers,” in connection with a prior application for a United States passport submitted on October 7, 1996.
Finally, the Government’s evidence will show that Strothers participated in a voluntary interview with Special Agents of the U.S. Department of State’s Diplomatic Security Service on or about March 1, 2016. During that interview, Strothers falsely stated that “Giovanni Daliente Strassini” was his birth name and that he did not submit an application for a United States passport on October 7, 1996.
The federal jury delivered the guilty verdict following a one and a half day trial. Strothers is currently released on bond. The penalty for using a false writing in a federal matter and giving false statements to federal agents is a maximum term of five years in prison and a $250,000 fine. The penalty for passport application fraud is a maximum term of ten years in prison and a $250,000 fine. The penalty for possessing a fraudulent identification document is a maximum of 15 years in prison and a $250,000 fine.
A sentencing date for the defendant has not been set.
The U.S. Department of State’s Diplomatic Security Service led this investigation. Assistant United States Attorneys Kenneth Smith and Casey Arrowood of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Federal Inmate Sentenced to 3 Additional Months in Prison for Possessing MarijuanaRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., pleaded guilty in federal court in Johnstown to a charge of possession of a prohibited object in prison, and immediately following, was sentenced to three months in prison, consecutive to the current prison term he is serving, and three years’ supervised release, United States Attorney Scott W. Brady announced today.
Edward R. Harris, 42, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on January 9, 2017, Harris possessed a quantity of marijuana.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Federal Correctional Institution, Special Investigative Staff, for the investigation leading to the successful prosecution of Harris.
Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Beth Drake stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictments against the following:
Greenville County Resident Indicted for Assaulting a Federal Employee. Kenneth David Sipple, age 58, of Travelers Rest, South Carolina, was charged in a one count indictment with assaulting a federal employee, a violation of Title 18, United States Code, Section 111. The maximum penalty Sipple could receive is a fine of $250,000.00 and/or imprisonment of 20 years. The case was investigated by agents of the Department of Homeland Security, Federal Protective Service, and is assigned to Assistant United States Attorney David C. Stephens of the Greenville office for prosecution.
Two Aliens Charged with Illegal Re-Entry into the United States. Jorge Luis Silva-Aguiar, age 44, and Jose Pineda-Flores, age 47, were each charged in separate indictments with illegal re-entry to the United States, a violation of Title 8, United States Code, Section 1326. The maximum penalty each could face is a fine of $250,000.00 and/or imprisonment up to 10 years depending on their record. The cases were investigated by agents of the Department of Homeland Security (DHS) and is being prosecuted by Assistant United States Attorney Max Cauthen of the Greenville Office.
Individual Charged with False Claim to be a US Citizen. Fermin Jimenez-Virelas, age 38, was charged in a two count indictment with false claim to be a United States citizen, a violation of Title 18, United States Code, Section 911, and false use of a social security number, a violation of Title 42, United States Code, Section 408(a)(7)(B). The maximum penalty he could face is a fine of $250,000.00 and/or imprisonment of 5 years. The case was investigated by agents of ICE-Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Max Cauthen of the Greenville Office.
The United States Attorney stated that all charges in these indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Fairfield Man Sentenced to 39 Days for Stealing Postal Money OrdersRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Brandon Knox, 38, of Fairfield, Maine was sentenced yesterday in U.S. District Court by U.S. Magistrate Judge John C. Nivison to 39 days in prison and one year of supervised release for stealing Postal Money Orders. He was also ordered to pay $485 in restitution. He pleaded guilty to the charge on October 26, 2017.
Court records reveal Knox stole a pouch of money orders while working as a subcontractor at the Post Office in Unity, Maine. He cashed three of the money orders totaling $485 at the Post Office in Waterville, Maine.
The investigation was conducted by the U.S. Postal Inspection Service.
Ebensburg Woman Sentenced for Removing Funds from Bank Customers’ AccountsRead the Press Release
JOHNSTOWN, Pa. - A resident of Ebensburg, Pa., has been sentenced in federal court to two months in prison, three years’ supervised release, with the first six months to be served as home confinement with electronic monitoring, on her conviction of misapplication of funds by a bank employee, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Tonya Wade, 44, of Ebensburg, Pa.
According to information presented to the court, from Sept. 17, 2012, to Aug. 29, 2013, Wade, while employed as a teller at C & G Savings Bank in Gallitzin, Pa, removed $23,175 from customers’ accounts and thereafter converted those funds to her personal use.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Wade.
Durant Man Sentenced to 40 Months for Bank RobberyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Graham Allen Helms, age 30, of Durant, Oklahoma, was sentenced to 40 months imprisonment, and 3 years supervised release for two counts of Bank Robbery, in violation of Title 18, United States Code, Section 2113(a). Helms was ordered to pay $6,000.00 in restitution. The charges arose from an investigation by the Ardmore Police Department, the Coal County Sherriff’s Office, and the Federal Bureau of Investigation.
The Information alleged that on or about July 24, 2017, in the Eastern District of Oklahoma, the defendant, by force, violence and intimidation did take from the person and presence of another, money belonging to and in the care, custody, control, management and possession of IBC Bank, located in Ardmore, Oklahoma, a bank whose deposits were then insured by the Federal Deposit Insurance Corporation.
The Information further alleged that on or about August 1, 2017, in the Eastern District of Oklahoma, the defendant, by force, violence and intimidation did take from the person and presence of another, money belonging to and in the care, custody, control, management and possession of Shamrock Bank, located in Coalgate, Oklahoma, a bank whose deposits were then insured by the Federal Deposit Insurance Corporation.
United States Attorney Brian J. Kuester said, “Over the course of one week the defendant committed two bank robberies, each time by using a note to threaten violence. Although he had no prior criminal history, these offenses were serious in nature and the defendant is being held accountable for his criminal conduct. It is our hope that his time in the custody of the Bureau of Prisons and the three year period that he is supervised by the United States Probation Office following his imprisonment will serve to protect the public and also deter Mr. Helms from committing additional criminal acts.” Kuester added, “I would like to commend the Ardmore Police Department, the Coal County Sheriff’s Office and the FBI for their investigation and swift apprehension of the defendant following the robberies.”
The Honorable Ronald A. White, 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 Chris Wilson represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Detroit drug dealer sentenced to 10 years in federal prison for methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. – A Detroit man was sentenced today to 10 years in federal prison for a drug charge, announced United States Attorney Mike Stuart. Willie McCall, 34, previously pled guilty to distribution of methamphetamine. U.S. Attorney Stuart commended the investigative efforts of the Metropolitan Drug Enforcement Network Team.
“Let this sentence send a message to any Detroit criminals who want to set up shop in our state – your poison peddling is not welcome, and we’ll make sure you have plenty of time to think about it behind bars,” said U.S. Attorney Stuart. “You can be sure that my office is laser focused on keeping our streets safe by targeting drug dealers with aggressive prosecution.”
McCall admitted that on February 7, 2017, he sold methamphetamine to a confidential informant working with law enforcement. The drug deal took place outside a local business near Nitro. Later that same date, when McCall was arrested, law enforcement found $100 of recorded buy money in his possession that was used in the controlled purchase. At the time McCall committed this offense, he was on parole in Michigan for weapons charges.
Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. Senior United States District Judge David A. Faber imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Department of Justice Files Motion to Hold Missouri Pesticide Manufacturer in Contempt for Failing to Comply with 2011 SettlementRead the Press Release
The United States and the State of Missouri have filed a motion asking a federal court to hold in contempt HPI Products Inc., its owner William Garvey, and St. Joseph Properties, LLC, for failing to comply with a 2011 environmental settlement by illegally storing thousands of pounds of hazardous chemicals in unsafe and dilapidated facilities in western Missouri. The Department of Justice, on behalf of the Environmental Protection Agency, and the Missouri Attorney General, on behalf of the Missouri Department of Natural Resources, filed the motion today in U.S. District Court for the Western District of Missouri.
The contempt motion also requests that the court appoint a receiver to oversee the operation of the defendants’ business in compliance with the 2011 consent decree and applicable law.
The defendants own and operate a pesticide formulating business with six facilities in St. Joseph, Missouri. The 2011 consent decree was intended to resolve numerous violations of federal and state environmental laws and requires the defendants to characterize and properly manage large quantities of hazardous wastes generated or stored at its St. Joseph facilities.
Despite a May 2017 court order requiring the defendants to comply with the 2011 consent decree, HPI and Garvey continue to store thousands of pounds of uncharacterized, often unidentified, chemicals, some with labels indicating that they have been stored for a dozen years or more. In addition, many of HPI’s facilities lack functional fire suppression equipment, two facilities previously suffered partial collapse, one burning down, and many of them are in extreme disrepair and in danger of collapse. Chemical wastes at these facilities are exposed to the elements and are readily accessible to members of the public, posing a significant danger to public health and safety and the environment.
“Today, we are asking the court to hold the defendants in contempt for their utter failure to comply with federal and state hazardous waste laws at their property,” said Jeffrey H. Wood, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “This is a serious public health and safety matter. We also are asking the court to appoint a receiver to manage the defendants’ hazardous wastes in a manner that protects the citizens of St. Joseph, ensures the safety of employees at HPI, and prevents harm to the environment.”
“EPA works with companies to assist them in complying with federal environmental laws when we have a willing party,” said James Gulliford, EPA Region 7 Administrator. “We have passed that stage with HPI and value the diligent work of the Department of Justice in helping EPA carry out our Congressional mandate to enforce federal laws that protect human health and the environment."
Davenport Man Sentenced to Prison for Firearms OffenseRead the Press Release
DAVENPORT, Iowa-- On February 13, 2018, Devon Durran Davis, age 25, of Davenport was sentenced by United States District Court Chief Judge John A. Jarvey to 46 months in prison following his guilty plea to felon in possession of a firearm, announced United States Attorney Marc Krickbaum. Davis was ordered to serve three years of supervised release to follow his prison term and pay $100 to the Crime Victims’ Fund. The firearm was forfeited.
On February 1, 2017, Davenport Police conducted a traffic stop on a vehicle in which Davis was a passenger. A loaded 9mm handgun and marijuana were located in the car and attributed to Davis. At the time of the traffic stop, Davis was on state probation after receiving a deferred judgment for unlawful possession with the intent to deliver heroin.
This investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms and Explosives and Davenport Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Clarksburg woman admits to methamphetamine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Daneille Archambault, of Clarksburg, West Virginia, has admitted to a drug distribution charge, United States Attorney Bill Powell announced.
Archambault, age 28, pled guilty to one count of “Conspiracy to Distribute Methamphetamine.” She admitted to distributing methamphetamine in Harrison County and elsewhere April 2017.
Archambault faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Greater Harrison County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.Cherry Tree Man Sentenced to 51 Months for Assault with A Dangerous WeaponRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Leeroy Soap Jr, age 40, of Cherry Tree, Oklahoma, was sentenced to 51 months imprisonment, and 3 years supervised release for Assault With A Dangerous Weapon In Indian Country, in violation of Title 18, United States Code, Sections 113(a)(3), 1151 and 1153. The charge arose from an investigation by the Cherokee Nation Marshal Service, the Adair County Sherriff’s Office, and the Federal Bureau of Investigation.
The Indictment alleged that on or about July 13, 2017, in the Eastern District of Oklahoma, within Indian country, on an Indian allotment the Indian title to which had not been extinguished, and within the special maritime and territorial jurisdiction of the United States, the defendant, an Indian, did knowingly assault J.E. with a dangerous weapon with intent to do bodily harm.
United States Attorney Brian J. Kuester said, “The United States Attorney’s Office is committed to working with state, local, tribal and federal agencies to combat violent crime. The investigation and prosecution of Mr. Soap involved four different agencies working cooperatively to achieve justice for the victim and to hold the defendant accountable for his actions.”The Honorable Ronald A. White, 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 Edward Snow represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.
Charleston meth dealer pleads guilty to federal drug chargeRead the Press Release
CHARLESTON, W.Va. – A Charleston man who sold methamphetamine while on federal supervised release pled guilty today, announced United States Attorney Mike Stuart. Ravi White, 27, entered his guilty plea to distribution of methamphetamine. U.S. Attorney Stuart commended the investigative efforts of the Metropolitan Drug Enforcement Network Team.
“Thanks to the brave work of officers who put their lives on the line every day to protect our safety, another drug dealer is off the streets,” said U.S. Attorney Stuart. “We will keep going after drug thugs until they get the message - we’re determined to put them out of business and behind bars for a long time.”
White admitted that on October 26, 2017, he sold nearly 90 grams of methamphetamine to a confidential informant working with law enforcement. The drug deal took place on McClung Street in Charleston. White further admitted that he also sold over 50 grams of methamphetamine to a confidential informant on two separate occasions in October 2017. Officers executed a search warrant on White’s residence on November 2, 2017, and seized $320 in recorded buy money from the controlled purchases of narcotics, as well as an additional $5,040 in cash and a handgun from his vehicle.
White faces at least five and up to 45 years in federal prison when he is sentenced on May 23, 2018.
Assistant United States Attorney Monica D. Coleman is in charge of the prosecution. The plea hearing was held before United States District Judge Irene C. Berger.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Charleston man headed to prison for illegally possessing sawed-off shotgunRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to two years in federal prison for a gun crime, announced United States Attorney Mike Stuart. Joe Orville Fooce, III, 44, previously pled guilty to possession of a shotgun with a barrel length less than 18 inches and an overall length less than 26 inches not registered to him in the National Firearms Registration and Transfer Record. U.S. Attorney Stuart commended the investigative efforts of the South Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“I support the Second Amendment 100%, but criminals who possess guns are a threat to innocent people, law enforcement, and, ultimately, the Second Amendment,” said U.S. Attorney Stuart. “As United States Attorney, I will make sure that my office continues working with law enforcement to prosecute anyone that cannot respect the Second Amendment and the gun laws that protect it.”
In July 2016, South Charleston police officers found Fooce unresponsive at an intersection. After Fooce was transported by medics, officers discovered the sawed-off shotgun in his backpack. Fooce admitted that he knew the firearm had been modified from its original length.
Assistant United States Attorney Monica D. Coleman is in charge of the prosecution. United States District Judge Irene C. Berger imposed the sentence.
This case was brought 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.
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Bronx Man Sentenced to 51 Months in Prison for Transporting Multiple Kilograms of Heroin as Part of A Cross-Country Drug Distribution ConspiracyRead the Press Release
TRENTON, N.J. – A Bronx, New York, man was sentenced to 51 months in prison for transporting fifteen kilograms of heroin hidden in a secret compartment on Christmas Eve in 2014, United States Attorney Craig Carpenito announced.
Dany Francisco-Valerio, 44, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an Information charging him with conspiracy to distribute heroin. Judge Sheridan imposed the sentence today in federal court.
According to documents filed in this case and statements made in court:
In or around December 2014, Francisco-Valerio engaged in a conspiracy with members of a drug trafficking organization to transport and distribute kilogram quantities of heroin. On December 24, 2014, Francisco-Valerio was arrested in Warren County while transporting fifteen kilograms of heroin contained in a hidden compartment in his vehicle. Vionel Rondon Cortorreal, Francisco-Valerio’s conspirator, has also pleaded guilty before Judge Sheridan and is awaiting sentencing.
In addition to the prison term, Judge Sheridan sentenced Francisco-Valerio to 3 years of supervised release.
U.S. Attorney Carpenito credited the Drug Enforcement Administration New Jersey Division, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, and officers of the New Jersey State Police, under the direction of Acting Superintendent Col. Patrick J. Callahan, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Thomas S. Kearney and Jamari Buxton of the U.S. Attorney’s Office OC/Gangs Unit in Newark.
Defense counsel: John D. Lynch, Esq., Jersey City, New Jersey