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26 March 2018
Thackerville Man Pleads Guilty to Conspiracy to Commit Wire Fraud, Aggravated Identity TheftRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Robert Ashley Bond, age 34, of Thackerville, Oklahoma, pled guilty to Conspiracy To Commit Wire Fraud, in violation of Title 18, United States Code, Section 1343, punishable by not more than 20 years imprisonment, up to a $250,000.00 fine, or both; and to Aggravated Identity Theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2, punishable by up to 2 years imprisonment, up to a $250,000.00 fine, or both.
The Indictment alleged that from in or about April 2017 and continuing until on or about June 23, 2017, the Defendant, and others, knowingly conspired, agreed and confederated to execute and attempt to execute a scheme and artifice to defraud M.A., L.L., O.L., C.M., J.P., K.P., S.D., K.M., and others known and unknown to the Grand Jury, to obtain money and property by means of materially false and fraudulent pretenses, representations and promises which the Defendant transmitted or caused to be transmitted by means of wire communications in interstate commerce.The Indictment further alleged that on or about June 8, 2017, in the Eastern District of Oklahoma, the Defendant, did knowingly transfer, possess and use, without lawful authority, a means of identification of another person, J.P., during and in relation to a felony violation enumerated in 18 U.S.C. § 1028A(c), to wit: Conspiracy to Commit Wire Fraud pursuant to 18 U.S.C. §§ 1343 and 1349, knowing that the means of identification belonged to another actual person.
The charges arose from an investigation by the Marietta Police Department, the Love County Sheriff’s Office, the United States Postal Inspection Service, and the United States Secret Service.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Rob Wallace represented the United States.
St. Francis Man and Woman Charged with Drug ChargesRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, couple has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Possession with Intent to Distribute a Controlled Substance.
Vinessa Farmer, a/k/a Vinessa Kills In Water, age 42, and Robert Kills In Water, age 40, were indicted on February 14, 2018. They appeared before U.S. Magistrate Judge Mark A. Moreno on March 19, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $500,000 fine, 4 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between August 1, 2012, and August 22, 2017, Farmer and Kills In Water, along with a third accomplice, knowingly and intentionally combined, conspired, confederated, and agreed with others to distribute marijuana, a Schedule I controlled substance.
The Indictment also alleges that on August 22, 2017, Farmer and Kills In Water knowingly and intentionally possessed marijuana with intent to distribute it in Todd County.
The charges are merely accusations and Farmer and Kills In Water are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Farmer and Kills In Water were released on bond pending trial, which has not been set.
St. Francis Man Indicted for Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Assault With a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Assaulting, Resisting, and Impeding a Federal Officer.
Sylvan White Hat, Jr., a/k/a Bud White Hat, age 37, was indicted on March 13, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 23, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 2 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on October 16, 2017, White Hat assaulted an individual with shod feet with the intent to do bodily harm, and that the assault resulted in serious bodily injury. The Indictment further alleges that White Hat assaulted two Rosebud Sioux Tribe Law Enforcement Services officers on the same date.
The charges are merely accusations and White Hat is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
White Hat was released on bond pending trial. A trial date has not been set.
St. Croix Man Pleads Guilty to Possession of Firearm with Obliterated Serial NumberRead the Press Release
St. Croix, USVI – Dale Ritter, 53, of St. Croix, pled guilty on March 23, 2018, in District Count to one federal count of Possession of a Firearm with Obliterated Serial Number, and one local count of Illegal Use of Utility Equipment, United States Attorney Gretchen C.F. Shappert announced.
This federal offense carries a possible sentence of incarceration of up to 5 years, a maximum fine of up to $250,000 dollars, and a term of supervised release for not more than 3 years. The local offense carries a potential fine of not less than $500 nor more than $3,000, or a prison sentence of up to 1 year. Sentencing is set for July 25, 2018.
According to court documents, on July 21, 2017, the Drug Enforcement Administration (DEA) executed a search warrant at Ritter’s residence in Frederiksted, St. Croix. During the execution of this search warrant, DEA agents located a Taurus Millennium 9mm handgun with an obliterated serial number. This firearm was determined to be operable and had been shipped in interstate commerce. Additionally, the agents located unauthorized electric wires running from a pole owned by WAPA that provided electricity to Ritter’s residence and a marijuana grow room.
The case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Task Force Officers with the Virgin Islands Police Department. The case was prosecuted by Assistant U.S. Attorney Daniel H. Huston.
Rosebud Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer with a Dangerous Weapon was sentenced on March 19, 2018, by U.S. District Judge Roberto A. Lange.
Robert Lee Burnette, a/k/a Robert Small Bear, Jr., a/k/a Robert Small Bear, a/k/a B.J. Small Bear, age 24, was sentenced to 7 months in prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Burnette was indicted by a federal grand jury on August 16, 2017. He pled guilty on December 29, 2017.
The conviction stemmed from an incident that occurred on July 14, 2017, in the North Antelope Community, near Mission, South Dakota. On that evening, Rosebud Sioux Tribe Law Enforcement Services received a call that Burnette was drunk and causing a disturbance at a residence in North Antelope. An officer arrived to find Burnette standing in the street brandishing a knife, and yelling at another man, who was holding a bar. The officer drew his duty weapon, aimed it at Burnette, ordered him to drop the knife, and ordered the other man to back up. The other man complied and put down the bar. Burnette ignored the officer’s repeated commands and began to approach the other man, brandishing the knife and yelling. As Burnette walked past the officer and neared the other man, the officer fired at Burnette, wounding him in the buttocks. Burnette then went to the ground and complied with a command to drop the knife. Burnette was subsequently hospitalized for his injuries.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Burnette was immediately turned over to the custody of the U.S. Marshals Service.
Rosebud Man Indicted for Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Cassius Farmer, age 24, was indicted on February 14, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 21, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on December 9, 2017, Farmer assaulted an individual with a club with the intent to do bodily harm and that the assault resulted in serious bodily injury.
The charges are merely accusations and Farmer is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Farmer was released on bond pending trial. A trial date has not been set.
Rapid City Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Jasyn Curley, age 23, was indicted on March 20, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 22, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or between January 4, 2018, and January 17, 2018, Curley, a person required to register under the Sex Offender Registration and Notification Act, did fail to register and update his registration.
The charge is merely an accusation and Curley is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Office. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Curley was remanded to the custody of the U.S. Marshals Service pending trial.
Queens Criminal Defense Attorney and Three Other Individuals Indicted for Conspiracy and Making False StatementsRead the Press Release
A two-count indictment was unsealed today in federal court in Brooklyn charging attorney Scott Brettschneider, also known as “Mighty Whitey,” Charles Gallman, also known as “T.A.,” Richard Marshall, also known as “Love,” and Reginald Shabazz-Muhammad, also known as “Reggie,” with conspiring to make false statements and making false statements to the United States Bureau of Prisons (“BOP”). Brettschneider was arrested earlier today and will be arraigned this afternoon in federal court in Brooklyn before United States Magistrate Judge Steven M. Gold. Gallman and Marshall were arrested on March 22, 2018 and ordered detained. Shabazz-Muhammad is still at large. The case has been assigned to United States District Judge Carol B. Amon.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Richard A. Brown, District Attorney of Queens County, announced the charges.
“The defendants, including a practicing attorney, participated in a scheme to gain a narcotics trafficker early release from prison by falsely informing the Bureau of Prisons that he was a candidate for a drug rehab program,” stated United States Attorney Donoghue. “This Office and our law enforcement partners are committed to ensuring that the resources to fight drug addiction go to the people who need them, not the drug dealers who put poison on our streets and who deserve to serve the entirety of their prison sentences.”
“Those charged today allegedly conspired to release an inmate from prison under the auspices that he was eligible to receive treatment from the BOP’s Residential Drug Abuse Program when, in fact, he was not,” stated FBI Assistant Director-in-Charge Sweeney. “Petitioning to send a known drug dealer back onto our streets before his sentence is served, and providing false documentation to prove he’s eligible for early release, is a reckless prospect that risks the well-being of society as a whole. Drug addiction is a serious issue that deserves the appropriate response from all those involved. We won’t stand for anything less.”
“Integrity is the foundation of our criminal justice system,” stated Queens District Attorney Brown. “These allegations go to the core of that foundation and are prejudicial to the administration of justice. The charges today send a strong message to those who would undermine that integrity that they will be held accountable. No one can be allowed to ‘fix’ any part of a case. I commend our federal partners in the United States Attorney’s Office for the Eastern District and the Federal Bureau of Investigation working with my Rackets, Special Victims and District Attorney’s Detective Bureaus for their vigorous pursuit of justice in this matter.”
As alleged in the indictment and detailed in court filings, a federal inmate (Marshall), his defense attorney (Brettschneider) and two other defendants (Gallman and Shabazz-Muhammad) wrote a letter to the BOP, falsely recounting Marshall’s history of substance and alcohol dependence. The letter was signed by Shabazz-Muhammad, purporting to be Marshall’s treatment provider, and was submitted to the BOP on Marshall’s behalf, for Marshall to fraudulently gain entry into the BOP’s Residential Drug Abuse Program (“RDAP”). An inmate who is accepted into and successfully completes the RDAP program is potentially eligible to receive a year off his or her sentence. Shabazz-Muhammad was not Marshall’s treatment provider; he was Brettschneider’s assistant. Intercepted communications over a court-authorized wiretap revealed the defendants talking to Marshall on a smuggled cell phone in prison, discussing what the letter should state to ensure Marshall’s acceptance into the program. Gallman predicted that it would “knock a year off his sentence,” and doubted that the BOP would be “scrutinizing it that much.” As it turned out, the BOP did scrutinize it, and requested that Marshall submit progress reports of his past treatment.
As alleged in court documents, the charges contained in the federal indictment stem from an investigation conducted by the Queens County District Attorney’s Office.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Lindsay K. Gerdes and Andrey Spektor are in charge of the prosecution.
The Defendants:
Scott Brettschneider
Age: 61
Queens, New York
Mint Hill, North CarolinaCharles Gallman
Age: 56
Queens, New YorkRICHARD MARSHALL
Age: 56
Charlotte, North CarolinaReginald Shabazz-Muhammad
Age: 62
Queens, New YorkE.D.N.Y. Docket No. 18-CR-123 (CBA)
Porcupine Man Found Guilty of Assault and Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that Kison Robertson, age 45, was found guilty of Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Discharge of a Firearm During the Commission of a Crime of Violence following a federal trial in Rapid City, South Dakota. The jury returned the verdict on March 21, 2018.
The charges carry a mandatory minimum sentence of 10 years’ custody, up to a maximum penalty of up to life in custody and/or a $250,000 fine, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Evidence at trial established Robertson shot a man in his stomach following a fight at Porcupine on March 30, 2017. This assault resulted in the victim suffering serious bodily injury.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, and the Federal Bureau of Investigation. Assistant U.S. Attorney Eric Kelderman prosecuted and tried the case.
A sentencing date was set for June 22, 2018. Robertson was remanded to the custody of the U.S. Marshals Service pending sentencing.
Pleasantville, New Jersey, Teacher and Sewell, New Jersey, Salesman Admit Health Care Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – Two men today admitted defrauding New Jersey state health benefits programs and other insurers out of millions of dollars by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito and New Jersey Attorney General Gurbir S. Grewal announced.
William Hunter, 43, a salesman from Sewell, New Jersey, and Richard McAllister, 42, a Pleasantville school teacher from Ocean City, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to separate informations charging them with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
From January 2015 through April 2016, Hunter and McAllister recruited individuals to obtain very expensive and unnecessary compounded medications from an out-of-state pharmacy, identified in the informations as the “Compounding Pharmacy.” The conspirators knew that certain compound medications – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.
The conspirators also learned that these medications would be covered by an entity referred to in the informations as the “Pharmacy Benefits Administrator.” The Pharmacy Benefits Administrator provided benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The amounts paid for the prescription drug claims were billed to the State of New Jersey.
Hunter, McAllister, and others recruited individuals covered by the Pharmacy Benefits Administrator, including public employees, to fraudulently obtain unnecessary compounded medications from the Compounding Pharmacy. Hunter and McAllister obtained insurance information from those individuals and gave it to another conspirator, who completed the prescriptions and had a doctor sign them without examining the individuals. The prescriptions were faxed to the Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.
The pharmacy then paid one of their conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to Hunter, McAllister, and other members of the conspiracy. Hunter and McAllister paid individuals with insurance coverage to reward them for obtaining prescriptions. McAllister himself received compounded medications based on a prescription signed by a doctor he did not see.
According to the informations, the Pharmacy Benefits Administrator paid the Compounding Pharmacy over $50 million for compounded medications mailed to individuals in New Jersey.
Both defendants face a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Hunter must forfeit $245,020.08 in criminal proceeds and pay restitution of at least $1,323,930.57. McAllister must forfeit $456,806.23 and pay restitution of at least $3,428,222.97. Sentencing for both defendants is scheduled for July 18, 2018.
Sixteen other conspirators – Matthew Tedesco, Robert Bessey, Michael Pepper, Thomas Hodnett, Steven Urbanski, John Gaffney, Judd Holt, George Gavras, Richard Zappala, Michael Neopolitan, Andrew Gerstel, Timothy Frazier, Michael Pilate, Shawn Sypherd, Nicholas Tedesco, and Michael Sher – pleaded guilty from August through March 2018 and await sentencing.
U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, and the U.S. Department of Labor, Office of Inspector General, under the direction of Acting Special Agent in Charge Peter Nozka in New York, with the investigation leading to the guilty pleas. He also thanked the Pensions and Financial Transactions Section of the Division of Law, within the Attorney General’s Office, under the direction of Attorney General Grewal and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Jacqueline M. Carle of the U.S. Attorney’s Office in Camden.
Defense counsel: Hunter: Jill Cohen Esq., Westmont, New Jersey
McAllister: Edward F. Borden Jr. Esq., Cherry Hill, New JerseyPittsburgh Woman Admits Distributing Multiple Drugs, Including Fentanyl and Cocaine that Caused an Overdose DeathRead the Press Release
PITTSBURGH, PA. - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to conspiring to distribute narcotics, United States Attorney Scott W. Brady announced today.
Katie Spratt, 32, pleaded guilty to one count of conspiring with 20 other individuals, between March and August 2017, to distribute heroin, fentanyl, cocaine, and cocaine base, more commonly known as crack. In connection with the guilty plea, the court was advised that Spratt regularly purchased fentanyl and cocaine from her co-defendant, Skylar Carter, for both personal use and further distribution, and was responsible for distributing quantities of fentanyl and cocaine resulting in the overdose death of a victim identified as A.B. on June 5, 2017. Spratt further acknowledged her responsibility for participating with other members of the conspiracy in the distribution of more than 160 grams of fentanyl, 280 grams of cocaine base, and 3.5 kilograms of cocaine. She is the fifth of 21 defendants charged in the case to enter a plea of guilty.
Judge Arthur J. Schwab scheduled sentencing for August 29, 2018, at 10 a.m. Spratt has a prior felony drug conviction, and as such, she is subject to enhanced penalties. The law provides for a maximum total sentence of 30 years in prison, a fine of not more than $2 million, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will depend upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Spratt remains incarcerated pending the sentencing hearing.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Physician Pleads Guilty to Drug Distribution and Money Laundering ConspiraciesRead the Press Release
DUBLIN, GA: On March 21, 2018, gynecologist George “Mack” Bird, III, 59, entered a guilty plea before Senior United States District Court Judge Dudley H. Bowen, Jr. to charges of Conspiracy to Distribute Controlled Substances and Conspiracy to Commit Money Laundering, both federal felonies carrying up to five years of imprisonment without the possibility of parole. Bird also conceded that approximately $2.7 million of seized assets and five parcels of land were traceable to proceeds of his crimes, and he agreed to forfeit the same to the United States.
According to information presented at the March 21 hearing, Dr. Bird was the owner and operator of medical practices in Eastman and Dublin, Georgia, from which prescription drugs were sold to patients for cash and prescribed without a legitimate medical purpose. Those drugs included but were not limited to opioids (such as hydrocodone combination products), alprazolam (Xanax), carisoprodol (Soma), phentermine (Adipex), and phendimetrazine (Plegine). In the years leading to his arrest in 2015, Dr. Bird delegated many of his patient care responsibilities to employees who could not legally distribute or dispense controlled substances without a physician’s oversight. To facilitate the distribution and dispensation of controlled substances, Dr. Bird directed his staff to use pre-signed prescription forms and pre-printed medical notes that were placed in patients’ files to give the appearance that the patients had been examined by Dr. Bird when, in fact, they had not been.
Dr. Bird’s criminal conduct netted him millions of dollars. Although he kept a significant portion of that money, Dr. Bird used some of his proceeds to pay his co-conspirators and purchase drugs for eventual distribution.
United States Attorney Bobby L. Christine stated, “Blinded by greed, Mack Bird broke the law, sold out his patients’ welfare, and violated his solemn oath to do no harm. This Office takes seriously the opioid crisis in the United States and will continue to prosecute drug dealers who fuel addiction and poison the community, whether from the street or inside an exam room.”
U.S. Attorney Christine commended the hard work and dedication of the Drug Enforcement Administration’s Tactical Diversion Squad and the Oconee Drug Task Force, both of which investigated the case.
Assistant United States Attorneys Patricia G. Rhodes and Theodore S. Hertzberg prosecuted the case on behalf of the United States. For any questions, please contact the United States Attorney’s Office at (912) 652-4422
Pasadena Man Sentenced to 125 months in Federal Prison for ‘Dual Valley Bandit’ Bank Robbery SpreeRead the Press Release
LOS ANGELES – A Pasadena man was sentenced today for the commission of a series of bank robberies culminating in an armed robbery at a Pasadena bank where he brandished a shotgun and placed it to the side of a bank employee’s head while demanding money.
Shownee Shon Smith, 41, was sentenced today to over 10 years in prison by United States District Judge Percy Anderson for robbing a Wells Fargo Bank branch in East Pasadena while armed with a loaded shotgun. In addition to the prison term, Smith was sentenced to five years of supervised release and ordered to pay $20,285 in restitution to the victimized banks.
On June 10, 2017, Pasadena Police Department officers responded to alarms and a 911 call from inside the Wells Fargo branch and arrested Smith immediately after he exited the bank.
According to court records, Smith committed six bank robberies between May 15 and June 10, 2017. In addition to the Wells Fargo robbery in East Pasadena, Smith was charged with robbing branches of US Bank in Burbank on May 15, Wells Fargo in South Pasadena also on May 15, Chase Bank in East Pasadena on May 20, Chase Bank in North Hollywood on May 27, and Citibank in Tarzana also on May 27. Prior to the Wells Fargo robbery on June 10, Smith had allegedly used notes to demand money from bank employees.
The case against Smith is the result of an investigation by the FBI, which received substantial assistance from the Pasadena Police Department, the South Pasadena Police Department, the Burbank Police Department, the Los Angeles Police Department, and the Santa Monica Police Department.
The case is being prosecuted by Assistant United States Attorney Carolyn Small of the General Crimes Section.
Owner of Meriden Transportation Broker Firm Admits to Defrauding Manufacturing CompaniesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DIGBY KERR, 50, of Meriden, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of wire fraud.
According to court documents and statements made in court, KERR owned and operated Transportation Cost Management, LLC (“TCM”), which was in the business of brokering shipping contracts between manufacturers and trucking companies. As part of its business, TCM would receive shipping invoices from trucking companies, process the invoices, and forward the billing information to the manufacturers. The manufacturers would transmit the payment funds to TCM for remittal to the trucking companies. TCM would then remit payment to the trucking companies and send confirmation reports to the manufacturers indicating that payment had been made to the trucking companies. The manufactures compensated TCM for providing this service.
In pleading guilty, KERR admitted that, between approximately December 2016 and April 2017, he and TCM failed to remit $603,489.30 in payment funds that TCM received from four manufacturers to the trucking companies that transported goods for those victim manufacturers. TCM, at KERR’s direction, e-mailed confirmation reports to the victim manufacturers that falsely represented that the manufacturers’ payments had been properly forwarded to the trucking companies.
Wire fraud carries a maximum term of imprisonment of 20 years. Judge Meyer scheduled sentencing for June 18, 2018.
KERR was released on a $100,000 bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Avi M. Perry.
Optometrist Sentenced to 33 Months in Prison for Health Care Fraud Involving at Least $250,000 in LossesRead the Press Release
PITTSBURGH – A resident of Hazelet, New Jersey, was sentenced in federal court for engaging in health care fraud, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon sentenced Dr. Vincent J. Gamuzza, 31, to serve 33 months’ incarceration and pay a $25,000 fine.
Gamuzza previously pleaded guilty to one count of health care fraud on September 18, 2017. In connection with his guilty plea, Gamuzza, a doctor of optometry, admitted that he operated multiple vision centers in Pennsylvania, including Western Pennsylvania, and in New Jersey. Gamuzza was responsible for handling all billing to insurance companies, including Highmark Inc. and Davis Vision. As part of his guilty plea, Gamuzza admitted that between in or around December 2015 and July 2016, he submitted fraudulent claims to Highmark Inc. for services that were never provided to patients. He also admitted that he impermissibly submitted claims for the same services to both Highmark Inc. and Davis Vision. In total, Gamuzza admitted this his crime involved losses of between $250,000 and $550,000 to insurance providers. At his sentencing hearing, Gamuzza further acknowledged that he attempted to obstruct justice when he submitted fabricated treatment records to the government in an effort to justify his continued fraudulent billing.
Judge Bissoon also ordered Gamuzza to make restitution of $95,667 to Highmark Inc. and $3,333 to Davis Vision.
Assistant United States Attorneys Eric G. Olshan and Robert S. Cessar prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, the United States Department of Health and Human Services – Office of Inspector General, and the Department of Defense – Office of Inspector General conducted the investigation of Gamuzza.
Ohio Man Pleads Guilty in a Money Laundering Conspiracy Involving Nearly $940,000 in Drug ProceedsRead the Press Release
ERIE, Pa. - A former resident of Coshocton, Ohio, pleaded guilty in Erie federal court to a charge of violating money laundering laws, United States Attorney Scott W. Brady announced today.
Guadalupe Cortez Beserra, 30, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Beserra conspired to commit money laundering by transferring and delivering approximately $939,610.00 in U.S. currency representing the proceeds of the buying, selling and otherwise dealing in cocaine from an Erie, Pennsylvania drug dealing operation. According to the information provided to the court, Beserra received the money from the organization’s drug dealing operation in Erie, and was instructed to count the money and repackage it in vacuum-sealed bags for further transport. Investigators seized the money after conducting a search of a residence in Coshocton, Ohio. The money seized by the investigators is subject to forfeiture.
Judge Cercone scheduled sentencing for July 16, 2018 at 1:30 p.m. The law provides for a total sentence of 20 years in prison, a fine of $500,000, 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.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The U.S Immigration and Customs Enforcement/Homeland Security Investigations, the Pennsylvania State Police, and the Coshocton County, Ohio Sheriff’s Office conducted the investigation that led to the prosecution of Beserra.
Mobile County Man Receives 54 Month Sentence and Must Pay $2,108.62 in Restitution for Two Aggravated Identity Theft Convictions and a Wire Fraud ConvictionRead the Press Release
The United States Attorney, Richard W. Moore, announces that Joshua Roberts, a 38 year old, resident of Mobile, Alabama was sentenced to six months for a wire fraud conviction followed by consecutive two year sentences for two aggravated identity theft convictions, totaling 54 months of incarceration. Roberts was ordered to repay defrauded businesses $2,108.62 in restitution.
Starting in January 2015 and continuing for 35 days, Roberts and co-defendant, Marcella Watkins stole large amounts of mail from area apartment complexes, pillaged through it and found credit cards and personal checks of several citizens. They then victimized those citizens by using their financial information to fraudulently buy goods online totaling approximately $2108.62. Roberts also used the identities of the victims and their checking account to purchase additional items for his personal use and enjoyment. Roberts pled guilty to the three charges on December 14, 2017.
The United States Postal Inspection Service investigated the case and presented it to the United States Attorney’s Office for prosecution. The prosecutor assigned to the case was Assistant United States Attorney, Gina S. Vann.Millvale Man with Prior Conviction for Distributing Child Pornography will Spend 10 More Years in Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH, Pa. - A former resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 10 years’ imprisonment, followed by seven years’ supervised release, on a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Robert Paladino, Jr., age 61, of Millvale, Pennsylvania.
According to information presented to the Court, on or about August 13, 2015, Paladino knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age. Paladino had previously been convicted of distribution of material depicting the sexual exploitation of a minor in 2006 and served 121 months imprisonment on that offense.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Postal Inspection Service for conducting the investigation leading to the successful prosecution of Paladino.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Manderson Man Charged in ShootingRead the Press Release
United States Attorney Ron Parsons announced that a Manderson, South Dakota, man was charged in federal district court with Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Discharging, Brandishing, or Possessing a Firearm During and in Relation to a Crime of Violence.
Elijah West, age 20, was charged on February 20, 2018. He appeared before U.S. Magistrate Judge Daneta Wollmann on March 16, 2018, and pleaded not guilty to the charges. The maximum penalty upon conviction is life imprisonment and/or a $250,000 fine, 5 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to West shooting two women near Porcupine in February 2018. The charges are merely an accusation and West is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Police Department. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
West was detained pending trial.
Madison County, NY Man Arrested, Charged with EnticementRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Steven D. Hathaway, of DeRuyter, NY, was arrested and charged by criminal complaint with enticing a minor to engage in sexual activity. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, a $250,000 fine, or both.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that according to the complaint, the defendant participated in online communications with an individual he believed was a 12 year old girl. Over the course of several weeks, Hathaway engaged in sexually explicit conversations, during which the defendant asked for nude photographs. Hathaway also requested that the child meet in person to engage in sexual activity. At one point, the defendant purchased the child an iPhone, which he placed in a location near the child’s home, so that the child would be able to communicate with Hathaway and send him photographs. Unbeknownst to the defendant, the child was actually an undercover New York State Police Investigator.
On March 23, 2018, Hathaway arranged to meet the child in the Western District of New York, at which time he was arrested by members of the New York State Police and the Department of Homeland Security.
The defendant made an initial appearance before U.S. Magistrate Judge Jonathan W. Feldman and is being held without bail pending a detention hearing.
The complaint is the result of an investigation by the New York State Police, under the direction of Major Richard Allen and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
MS-13 Gang Member Pleads Guilty to Long Island Murder and Attempted Murder ChargesRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Elmer Alexander Lopez (“Smiley”), a member of the Centrales Locos Salvatruchas clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, pleaded guilty to racketeering charges relating to his participation in the June 3, 2016 murder of Jose Pena, and the July 3, 2016 attempted murder of a suspected rival gang member. The guilty plea was entered before United States District Judge Joseph F. Bianco.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (“FBI”), and Stuart J. Cameron, Acting Commissioner, Suffolk County Police Department (“SCPD”), announced the guilty plea.
“Lopez and his coconspirators took turns slashing and stabbing to death a fellow MS-13 member because the victim was suspected of violating gang rules, and merely one month later, turned a basketball court into a shooting gallery in a brazen attempt to kill a rival gang member, ” stated United States Attorney Donoghue. “The killing and attempted murder perpetrated by Lopez are typical of the violence carried out by MS-13 to instill fear within its own ranks and terrorize our community. Today’s guilty plea holds the defendant accountable for his crimes and reflects the unwavering commitment by this Office and our partners with the FBI’s Long Island Gang Task Force to eradicate the scourge that is MS-13.”
“This case is just one in our systematic and focused dismantling of MS-13 on Long Island,” stated FBI Assistant Director-in-Charge Sweeney. “Our ultimate goal is to eradicate the deadly and violent gang from the communities that have experienced murders, shooting, violence and criminal activity. The FBI Long Island Gang Task Force and our law enforcement partners have created a massive surge of pressure on MS-13, and this plea shows proof that pressure is paying off.”
“The Suffolk County Police Department thanks the Eastern District of New York for their steadfast commitment to prosecute violent MS-13 gang members,” stated SCPD Commissioner Cameron. “Today’s news is an example of the ongoing effort by the Suffolk County Police Department and our law enforcement partners to protect the residents of Suffolk County from the scourge of gang violence. Ridding our community of gangs is a long-term commitment and one that we are strongly committed to. Gang members should know that if they commit crimes in this county they will be arrested and prosecuted to the fullest extent of the law.”
As set forth in prior court filings, a detention letter, the fourth superseding indictment, and the defendant’s statements during his guilty plea, Lopez and several co-conspirators, who have been charged in the Eastern District of New York, decided to kill Pena, a member of the MS-13, because he was suspected of violating gang rules. Prior to the murder, Lopez and the other MS-13 members held meetings where they discussed killing Pena because the MS-13 suspected that Pena had cooperated with law enforcement authorities and that he might be homosexual. After consulting with MS-13 leadership in El Salvador, Lopez and the other MS-13 members agreed to murder Pena and tasks were assigned to each of the co-conspirators to carry out the plan, including obtaining weapons and a vehicle to be used in the murder. On June 3, 2016, Lopez and the other MS-13 members lured Pena into a car and drove to a secluded wooded area in Brentwood, where they attacked Pena, taking turns stabbing and slashing him with knives until he was dead. Pena’s body was not discovered until October 17, 2016, more than four months after his murder.
In addition, Lopez admitted during his guilty plea that, one month after murdering Pena, he and other MS-13 members attempted to kill a suspected rival gang member on Lukens Avenue in Brentwood. During 2016, Lopez and other members of the MS-13 had a series of conflicts with members of Goon Squad, a rival gang in Brentwood. On July 3, 2016, at approximately 7:50 p.m., a man identified as John Doe #4 in the fourth superseding indictment was playing basketball with a group of individuals in front of a house on Lukens Avenue. Lopez and two co-conspirators, who were in a Ford Mustang, saw the group, who they suspected were rival gang members, drove toward them, and one of the MS-13 members shot at the group. John Doe #4 was struck by a bullet in the shoulder. The victim received medical treatment and survived the shooting.
Lopez, an illegal alien from El Salvador, faces a maximum sentence of life in prison when sentenced by United States District Judge Joseph F. Bianco on September 13, 2018. Upon completion of his sentence, the defendant faces deportation from the United States.
The charges in the fourth superseding indictment against the other defendants remain pending and are merely allegations. Those defendants are presumed innocent unless and until proven guilty.
Today’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international criminal organization. The MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or “cliques,” the MS-13 is the largest and most violent street gang on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 45 murders in the Eastern District of New York, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, Rockville Centre Police Department, the New York State Police, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys John J. Durham, Paul G. Scotti, Michael T. Keilty and Raymond A. Tierney are in charge of the prosecution.
The Defendant:
ELMER ALEXANDER LOPEZ (“Smiley”)
Age: 20
Central Islip, New YorkE.D.N.Y. Docket No. 16-CR-403 (S-4) (JFB)
Lower Brule Woman Charged with AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Megan Crazy Bull, age 22, was indicted on February 14, 2018. She appeared before U.S. Magistrate Judge Mark A. Moreno on March 21, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 44 years in custody and/or a $1,000,000 fine, 13 years of supervised release, and up to $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on November 10, 2017, January 4, 2018, and also on January 18, 2018, Crazy Bull forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with five correctional officers and one law enforcement officer, while all the officers were engaged in the performance of their official duties, and said conducts involved physical contact with the officers.
The charges are merely accusations and Crazy Bull is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Crazy Bull was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for May 1, 2018.
Jamesville Man Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Cody Childress, age 29, of Jamesville, New York, pled guilty today in United States District Court to one count of receipt of child pornography and one count of possession of child pornography, announced United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation.
Childress, who was ordered detained in custody pending his sentencing, faces a minimum sentence of at least five years and up to 20 years of imprisonment for distribution of child pornography and up to 20 years of imprisonment for receipt of child pornography. Childress will also be required to serve a term of supervised release of between five years and life, and will be required to register as a sex offender. 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.
As part of his guilty plea, Childress admitted that he received images of child pornography through a Peer-to-Peer file-sharing program. A search of Childress’s laptop computer revealed that he possessed 51 videos depicting child pornography. Sentencing is scheduled for August 2, 2018, in Syracuse, New York.
Childress’s case was investigated by the New York State Police, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Indianapolis Man Sentenced to 195 Months ImprisonmentRead the Press Release
FORT WAYNE – Richard A. Council, 46, of Indianapolis, Indiana, was sentenced before Chief Judge Theresa L. Springmann on his plea of guilty to conspiring to possess with intent to distribute more than 5 kilograms of cocaine and possessing a firearm in furtherance of a Drug Trafficking Crime, announced U.S. Attorney Thomas L. Kirsch II.
Council was sentenced to 195 months imprisonment and 5 years of supervised release.
According to documents in this case, between November 13, 2013, and February 12, 2014, Council conspired with his named codefendants to possess with intent to distribute a controlled substance, namely 5 kilograms or more of cocaine. Further, on February 12, 2014, Counse possessed a firearm in furtherance of the drug trafficking crime.
This case was investigated by the Bureau of Alcohol Tobacco Firearms and Explosives, with the assistance of the Drug Enforcement Administration as well as the Warsaw Police Department, the Fort Wayne Police Department and the IMAGE Drug Task Force. This case was prosecuted by Assistant U.S. Attorney Anthony Geller.
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Habitual Drug Trafficker Gets 20 Years in PrisonRead the Press Release
McALLEN, Texas – A 45-year-old Mexican national residing in San Juan has been sentenced for his leadership role in a drug trafficking case involving nearly 40 kilograms of cocaine, announced U.S. Attorney Ryan K. Patrick. Carlos Guerrero pleaded guilty Aug. 28, 2015.
Today, U.S. District Judge Ricardo H. Hinojosa confirmed that Carlos Guerrero was previously convicted of a federal drug trafficking crime and re-imposed a 240-month sentence that he originally ordered on March 15. The court found Guerrero to be a leader/organizer within the drug trafficking organization. The sentence was enhanced due to his 2005 convictions for conspiracy to possess with intent to distribute more than five kilograms of cocaine and possession with intent to distribute approximately 45.5 kilograms of cocaine. Not a U.S. citizen, he is expected to face deportation proceedings following completion of the sentence.
On May 28, 2015, authorities followed a vehicle from the Hidalgo Port of Entry to a parking lot in McAllen. Yadira Martinez-Gomez, a 24-year-old Mexican national, was driving. She then handed the vehicle off to 43-year-old Mexican national Rodolfo Hernandez-Flores who drove it to Guerrero’s residence in San Juan. A search of the vehicle and the residence led to the seizure of 39 kilograms of cocaine. Raul Sanchez-Solano, a 40-year-old Mexican national, and Guerrero were arrested at that time and charged for storing the narcotics at the residence.
Martinez-Gomez was previously sentenced to 37 months imprisonment, while Sanchez-Solano and Hernandez-Flores received 60 and 48 months in prison, respectively.
Guerrero has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Pharr Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kristen J. Rees prosecuted the case.
Guatemalan National Pleads Guilty to Illegally Reentering the United StatesRead the Press Release
Defendant had a misdemeanor illegal entry conviction in Arizona and two prior removals
HUNTINGTON, W.Va. – Roberto Tulul-Ambrocio pled guilty to the felony offense of Reentry of a Removed Alien, announced United States Attorney Mike Stuart. Mr. Tulul-Ambrocio, 29, of Sonola, Guatemala, faces up to 2 years of incarceration, a 250,000 dollar fine, supervised release for one year, and a special assessment when he is sentenced on May 14, 2018 by United States District Judge Robert C. Chambers. He also faces removal proceedings at the conclusion of any sentence of incarceration. United States Attorney Mike Stuart praised the work of Immigration and Customs Enforcement (ICE).
“If you’re an illegal and we catch you, we’ll prosecute you and then send you back. If you won’t follow the law to come to the United States, you’ll break our laws when you’re here, you can’t stay,” said United States Attorney Mike Stuart.
On January 16, 2018, Mr. Tulul-Ambrocio was spotted by Immigrations and Customs Enforcement Agents in Hurricane, Putnam County, West Virginia during an investigation of a nearby business location. Approached by two Immigrations and Customs Enforcement Agents, Mr. Tulul-Ambrocio fled on foot and was apprehended after a short chase. Immigration and Customs Enforcement agents confirmed that Mr. Tulul-Ambrocio was not in the United States legally and he was taken into custody. Fingerprints taken from the defendant matched him to two prior removals in 2011. The first 2011 prior removal occurred when he was caught near Tucson, Arizona in August and removed from the United States In October of 2011, Mr. Tulul-Ambrocio was found in Nogalez, Arizona and convicted in federal court of the misdemeanor crime of illegal entry. After this conviction, Mr. Tulul-Ambrocio was subsequently removed again from the United States . Mr. Tulul-Ambrocio then reentered the United States a third time without legal permission from the Secretary of Homeland Security. Mr. Tulul-Ambrocio is a citizen of Guatemala.
Assistant United States Attorney Erik S. Goes is handling the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
###Guatemalan Man Sentenced for Methamphetamine TraffickingRead the Press Release
WICHITA, KAN. – A load of methamphetamine that investigators followed from Amarillo, Texas, to Kansas City, Kan., is sending a Guatemalan man to federal prison, U.S. Attorney Stephen McAllister said.
Jose Adrian Cua-Garcia, 30, was sentenced Monday to five years in federal prison. He pleaded guilty to one count of possession with intent to distribute methamphetamine.
The investigation began when law enforcement officers stopped an SUV near Amarillo, Texas, and found more than 12 pounds of methamphetamine hidden in a spare tire. Investigators arranged for part of the load to be delivered while they kept it under surveillance.
Co-defendant Jorge Vazquez-Rodriguez, 30, Kansas City, Kan., met the load in a hotel parking lot near I-70 and 78th Street. He took the drugs to a house in Kansas City, Kan., where he met Cua-Garcia. Later, Cua-Garcia left the house carrying the tire in the back of his truck. Investigators pulled him over after a chase and arrested him.
Vazquez-Rodriguez pleaded guilty and sentencing is set for June 4. McAllister commended the Drug Enforcement Administration and Assistant U.S. Attorney David Zabel for their work on the case.
Glenwood Man Sentenced to 20 Years in Prison for Drug OffenseRead the Press Release
COUNCIL BLUFFS, IA- On March 22, 2018, David Joseph Jay, III, age 36, of Glenwood, Iowa, appeared before United States District Court Chief Judge John A. Jarvey and was sentenced to 20 years in prison for possession with intent to distribute methamphetamine, announced United States Attorney Marc Krickbaum. Jay was ordered to serve ten years of supervised release to follow his prison term.
This investigation began with a citizen complaint regarding possible drug trafficking at a residence in Glenwood. Following subsequent investigation, a search warrant was executed at Jay’s residence. Methamphetamine, lysergic acid diethylamide (LSD), along with prescription pills and marijuana were discovered.
This investigation was conducted by the Glenwood Police Department, Mills County Sheriff’s Office, and Southwest Iowa Narcotics Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Georgia Man Sentenced for Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Gordon, Georgia, man convicted of Receipt of Child Pornography was sentenced on March 9, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Marshall Brown, age 27, formerly of Ellsworth Air Force Base, was sentenced to 8 years of imprisonment, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Brown was one of ten men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2016 Sturgis Motorcycle Rally, targeting persons seeking to pay to have sex with underage girls or boys obtained through the Internet. The conviction stemmed from Brown communicating with someone he believed to be a minor for the purpose of engaging in sexual acts and sending pornographic images of himself to the minor. After the execution of a search warrant on Brown’s phone, law enforcement discovered pornographic images of a separate15 year-old minor.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Brown was immediately remanded to the custody of the U.S. Marshals Service.
General Foreman at Port Elizabeth Sentenced to Two Years in Prison for Salary FraudRead the Press Release
NEWARK, N.J. – A member of the International Longshoremen’s Association (ILA) and general foreman for a Port Elizabeth terminal operator was sentenced today to 24 months in prison for fraudulently collecting a nearly $500,000 annual salary, much of which was for work he never performed, U.S. Attorney Craig Carpenito announced.
Paul Moe Sr., 66, of Atlantic Highlands, New Jersey, was convicted at trial in October 2017 on all 14 counts of an indictment charging him with one count of wire fraud conspiracy and 13 substantive counts of wire fraud. He was convicted following a 10-day trial before U.S. District Court Judge Katharine S. Hayden, who imposed the sentence today in Newark federal court.
According to statements made in court and the evidence at trial:
From September 2015 through March 2017, Moe fraudulently collected a compensation package that paid him almost $500,000 annually while showing up at his job site for as little as eight hours per week. In order for Moe to collect his $9,300 weekly paycheck, other conspirators submitted false timesheets each day on his behalf and even credited him for up to 16 hours of overtime a day. The 13 substantive wire fraud counts consist of one-week increments in which Moe – having either failed to appear at the job site or while being out of state or out of the country – was paid as if he had been on the job for a minimum of 40 hours a week.
In addition to the prison term, Judge Hayden sentenced Moe to three years of supervised release and ordered him to pay restitution of $749,000.U.S. Attorney Carpenito credited special agents and investigators with the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter M. Arsenault; the U.S. Department of Labor, Office of Inspector General, under the direction of Acting Special Agent in Charge Peter Nozka in New York; the Office of Employee Benefit Security Act (EBSA), under the direction of Regional Director Jonathan Kay; and the Office of Labor Management Standards, under the supervision of District Director Andriana Vamvakas, with the investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel V. Grady O’Malley, Assistant U.S. Attorney Anthony Moscato, Chief of the National Security Unit, and Special Assistant U.S. Attorney Tracey Agnew.
Defense counsel: Gerald McMahon Esq., New York
Gary Man Sentenced to 57 Months in PrisonRead the Press Release
HAMMOND- Darryl Hall, 40, of Gary, Indiana, was sentenced before Hammond District Court Judge Joseph S. Van Bokkelen on his plea of guilty to wire fraud and aggravated identity theft, announced U.S. Attorney Thomas L. Kirsch II.
Hall was sentenced to 57 months imprisonment, 3 years of supervised release and ordered to pay $26,616.28 in restitution.
According to documents in this case, Hall engaged in a scheme that included purchasing stolen credit card numbers and other personally identifying information from online criminal forums using Bitcoin. Once Hall obtained the credit card numbers, he embossed them onto blank cards for use at retail stores and restaurants. Among other things, Hall used stolen card numbers to purchase luxury goods and jewelry, which he then resold at a discount for cash.
This case was investigated by the United States Secret Service. This case was prosecuted by Assistant U.S. Attorney Alexandra McTague.
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Fort Thompson Woman Sentenced for Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, woman charged with Conspiracy to Distribute a Controlled Substance was sentenced on March 19, 2018, by U.S. District Judge Roberto A. Lange.
Ashley Ross, age 30, was sentenced to 168 months in custody, followed by 5 years of supervised release, a fine of $1,000, and a special assessment of $100 to the Federal Crime Victims Fund.
Ross was indicted by a federal grand jury on June 14, 2017, for Conspiracy to Distribute a Controlled Substance and Possession with Intent to Distribute a Controlled Substance. Ross plead guilty on December 29, 2017.
The conviction is a result of Ross receiving distributable quantities of methamphetamine and distributing it in South Dakota beginning in January of 2015. It was reasonably foreseeable to Ross that over 1.5 kilograms of methamphetamine would be distributed during the course of the conspiracy. This methamphetamine was distributed by Ross on the Crow Creek and Lower Brule Indian reservations.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, Rosebud Sioux Tribe Law Enforcement Services, Bureau of Indian Affairs Crow Creek Agency, and the Sioux Falls Police Department. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Ross was immediately turned over to the custody of the U.S. Marshals Service.
Fort Thompson Man Charged with Embezzlement and TheftRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Embezzlement and Theft from an Indian Tribal Organization.
Christopher Rabbit, age 42, was indicted on March 13, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 20, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between December 1, 2016, and July 31, 2017, Rabbit embezzled, stole, willfully misapplied and permitted to be misapplied, and converted to his own use more than $1,000 of monies, funds, credits, goods, assets, and other property belonging to the Crow Creek Sioux Tribe Solid Waste Management Program, an Indian Tribal organization.
The charge is merely an accusation and Rabbit is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Rabbit was released on bond pending trial, which has not been set.
Former U.S. Postal Service Employee from Socorro Pleads Guilty to Federal Misdemeanor Embezzlement ChargeRead the Press Release
ALBUQUERQUE – Adrianne D. Marquez, 42, of Socorro, N.M., pled guilty today in federal court in Albuquerque, N.M, to a misdemeanor charge of theft of government property.
Marquez was charged in a misdemeanor information filed on Jan. 23, 2018, with theft of government funds from Jan. 1, 2017 through July 12, 2017, in Socorro County, N.M. According to the information, Marquez intentionally stole money from the United States in an amount less than $1,000 by writing herself U.S. Postal Service money orders and not paying the U.S. Postal Service for them.
During today’s proceedings, Marquez pled guilty to the misdemeanor information without the benefit of a plea agreement. At sentencing, Marquez faces a maximum penalty of one year in federal prison and a fine up to $100,000. A sentencing hearing has yet to be scheduled.
This case was investigated by the U.S. Postal Service, Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Former Federal Prison Lieutenant Sentenced for Using Excessive Force and Obstructing InvestigationRead the Press Release
Gregory McLeod, 44, of East Point, Georgia, and a former correctional officer and supervisor at the U.S. Penitentiary in Atlanta (USP Atlanta), was sentenced today in federal court to one year and eight months in prison, followed by three years supervised release, for using excessive force against an inmate in 2016, and for writing two false reports about the incident in an effort to cover up his crime.
According to information presented in court, McLeod, who achieved the rank of lieutenant, and worked as a supervisor at the prison, strip searched an inmate in his office in front of three other correctional officers. After the inmate complained that the strip search was taking too long, McLeod repeatedly punched the inmate in his face, injuring him.
Following the assault, McLeod wrote an incident report and a separate memorandum about the encounter in which he falsely claimed that the inmate swung a closed fist at McLeod and attempted to assault other officers before the officers could apply hand and leg restraints.
“Correctional officers have an important duty to protect inmates from violence or any act of unreasonable force,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “McLeod’s violent actions, and attempt to obstruct justice, blatantly violated the inmate’s civil rights. This Justice Department will not tolerate any abuse of power by a law enforcement officer and will continue to prosecute these cases to the fullest extent of the law.”
“McLeod broke the law and repeatedly lied about his conduct,” said U.S. Attorney Byung J. “BJay” Pak. “The men and women who work in prisons and jails have very stressful jobs, but they must adhere to the laws that each has sworn to uphold. At the same time, inmates and detainees in our nation’s prisons and jails have the right to be free from the use of excessive force.”
“We certainly understand that detention officers have a difficult job maintaining order and protecting inmates in our nation’s prisons,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “But inherent in that job is a power that cannot be abused. It is unfortunate that the actions of this one defendant harm the reputation of the vast majority of officers who respect that power.”
“Violence against inmates and false reporting have no place in the federal prison system,” stated Robert A. Bourbon, Special Agent in Charge of the Department of Justice Office of the Inspector General’s (OIG) Miami Field Division. “The DOJ OIG is committed to ensuring that there are serious consequences for any DOJ employee who intentionally violates the rights of inmates and lies about it.”
At his guilty plea on Nov. 22, 2017, McLeod admitted that he used excessive force and that he intentionally violated the inmate’s constitutional rights. McLeod also admitted that he intentionally impeded and obstructed the investigation of the incident by writing the two false reports.
McLeod was sentenced by U.S. District Judge Steven C. Jones to one year and eight months in prison, followed by three years supervised release.
This case was investigated by the Atlanta Division of the FBI and the Department of Justice OIG. This case was prosecuted by Assistant U.S. Attorney Brent Alan Gray, and Department of Justice Trial Attorney Mary J. Hahn of the Civil Rights Division.
Federal Grand Jury Indicts 44 Individuals in Methamphetamine Distribution ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On January 9, 2018, a federal Grand Jury in Greeneville returned a 30-count indictment against the following individuals for their roles in the distribution of methamphetamine:
- Samuel William Aloisio, 40, of Greeneville, Tennessee
- Kenneth Lee Sholtz, 49, of Summerville, Georgia
- Rockcella Nicole Russell, 31, of Summerville, Georgia
- Troy Dale Sholtz, 54, of Rossville, Georgia
- Christal Gale Bean, 40 of Knoxville, Tennessee
- Leslie William Steelman, 47, of Oliver Springs, Tennessee
- Danielle Marie Coatney, 37, of Townsend, Tennessee
- Elizabeth Jean Patterson, 22, of Rocky Top, Tennessee
- Brandon Joseph Thorpe, 33, of Bristol, Tennessee
- David Henry Estep, Jr., 38, of Church Hill, Tennessee
- Lisa Carol Weems, 49, of Morristown, Tennessee
- Timothy Millard Rose, 34, of Kingsport, Tennessee
- Paul Joseph Whitt, II, 54, of Honaker, Virginia
- Paul David Borror, 31, of Bristol, Tennessee
- Jason Abraham Clements, 42, of Kingsport, Tennessee
- David Dewolf Derrick, 43, of Kingsport, Tennessee
- Kevin Scott Dingus, 37, of Glade Springs, Virginia
- Lawrence Powell Earhart, II, 54 of Bluff City, Tennessee
- John Roosevelt Farner, Jr., 40, of Piney Flats, Tennessee
- Adam Randall Fulbright, 31, of Bristol, Virginia
- Michael Ryan Goins, 26, of Church Hill, Tennessee
- Timothy Barry Hall, 38, of Saint Paul, Virginia
- Jason Darrell Larkins, 40, of Kingsport, Tennessee
- Gary Allen Miller, 47, of Bristol, Tennessee
- Alexander Andrew Milne, 25, of Kingsport, Tennessee
- Charles William Mitchell, Jr., 34, of Bluff City, Tennessee
- Crystal Diane Pharis, 37, of Bristol, Tennessee
- Christopher Allen Reynolds, 36, of Bristol, Tennessee
- Rachel Elizabeth Sammons, 32, of Bristol, Tennessee
- Robert Jessee Estes, 47, of Rogersville, Tennessee
- Marketta Rae Jarnigan, 26, of Rogersville, Tennessee
- Scotty Ledon Foster, 49, of Lafayette, Georgia
- Cameron Lowry, 40, of Old Hickory, Tennessee
- David Alan Emery, 41, of Clinton, Tennessee
- Crystal Mcguire, 42 of Powell, Tennessee
- Larkin Henry Hensley, 41, of Clinton, Tennessee
- Lashawn Johnson, 34, of Knoxville, Tennessee
- Randall Wood, 39, of Clinton, Tennessee
- Stacy Jo Ferguson, 37 of Rocky Top, Tennessee
- David Dunlap, 47, of Oliver Springs, Tennessee
- Edward Uthe, 53, of Mascot, Tennessee
- Mitchell Chadwick Dorris, 30, of Knoxville, Tennessee
- Kristen Perkins, 44, of Knoxville, Tennessee
- Gerald Brummett, 39, of Clinton, Tennessee
A trial date before the Honorable Leon Jordan, Senior U.S. District Court Judge, has not yet been set.
The indictment, on file with the U.S. District Court, alleges that each of these individuals was involved in a conspiracy to distribute 50 grams or more of methamphetamine in the Eastern District of Tennessee and elsewhere. Kenneth Sholtz, Russell, Weems, Rose, Steelman, Patterson, Thorpe, Whitt, Borror, Derrick, Farner, Fulbright, Hall, Johnson, and Uthe were also each charged with possession of a firearm in furtherance of a drug trafficking crime. Patterson, and Thorpe are each charged with an additional count of possession of a firearm in furtherance of a drug trafficking crime. The indictment also alleges other charges related to the distribution and possession with the intent to distribute methamphetamine as well as the unlawful possession firearms and money laundering.
If convicted of the methamphetamine conspiracy charge, each faces a minimum mandatory prison term of at least 10 years and up to life, at least five years of supervised release, a fine of up to $10,000,000, any applicable forfeiture, and a $100 special assessment. The punishment for the firearm charges returned against Kenneth Sholtz, Russell, Weems, Rose, Steelman, Patterson, Thorpe, Whitt, Borror, Derrick, Farner, Fulbright, Hall, Johnson, and Uthe is a minimum mandatory term of at least five years and up to life in prison, which must be served consecutively to any other prison term imposed, up to five years supervised release, a fine of up to $250,000, and a $100 special assessment. Patterson and Thorpe, on the second firearms charge returned against them, face a minimum mandatory 25 years in prison to life in prison, which must be served consecutively to any other prison term.
The ongoing investigation leading to the indictment was the product of a partnership between the Kingsport Police Department, Bristol Police Department, Sullivan County Sheriff’s Department, Second Judicial Drug Task Force, Hawkins County Sheriff’s Office, Soddy Daisy Police Department, Clinton Police Department, Anderson County Sheriff’s Office, Oliver Springs Police Department, Oak Ridge Police Department, Seventh Judicial District Crime Task Force, Eighth Judicial District Crime Task Force, Campbell County Sheriff’s Office, Bristol Virginia Police Department, Tennessee Highway Patrol, U.S. Marshal Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, and FBI Joint Terrorism Task Force. Assistant U.S. Attorneys J. Gregory Bowman and Robert M. Reeves will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. 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.
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Erie Woman Who Possessed Fentanyl with Intent to Distribute is Sentenced to Serve 10 Years in Federal PrisonRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 120 months on her conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Tiesha Lasha Henderson, 31.
According to information presented to the court, on March 15, 2017, Henderson possessed with intent to distribute 67.27 grams of fentanyl. The fentanyl was discovered when members of the Erie County Drug Task Force executed a search warrant at Henderson’s residence in Erie, Pennsylvania. According to information provided to the court, Henderson attempted to flush the fentanyl down the toilet before officers executed the warrant. The fentanyl was packaged in three baggies, one of which had been diluted or "cut" for redistribution to other individuals in Erie, Pennsylvania.
Prior to imposing sentence, Judge Cercone commented on the seriousness of the offense and the dangerousness associated with the distribution of fentanyl.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
United States Attorney Brady commended the Erie County Detective Bureau, the Erie Police Department, the Millcreek Township Police Department and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Henderson.
Erie Man Sentenced to 6 Years in Prison for Crack Cocaine ConspiracyRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 72 months in prison on his conviction of violating federal drug laws, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Delmar R. Tate, 40.
According to information presented to the court, Tate conspired with a co-defendant to possess with intent to distribute and distribute approximately 40 grams of crack cocaine.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
United States Attorney Brady commended the EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office, Bureau of Narcotics Investigation and the Erie Police Department for the investigation leading to the successful prosecution of Tate.
Eagle Butte Man Sentenced for Possession of a Firearm by a Prohibited Person and Failure to AppearRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Possession of Firearm by a Prohibited Person and Failure to Appear was sentenced on March 22, 2018, by U.S. District Judge Roberto A. Lange.
Colten Walker Dolphus, age 31, was sentenced to 15 months in custody for Possession of a Firearm by a Prohibited Person and 3 months in custody for Failure to appear, to be run consecutively, followed by 3 years of supervised release, forfeiture of two firearms and ammunition, and a special assessment of $200 to the Federal Crime Victims Fund.
Dolphus was indicted by a federal grand jury on June 14, 2017, for Possession of a Firearm by a Prohibited Person and a Superseding Indictment was filed on December 5, 2017, for Failure to Appear. Dolphus pled guilty to both charges on December 29, 2017.
The firearms charges against Dolphus stem from a traffic stop conducted by the Cheyenne River Sioux Tribal Police on December 9, 2016, on a vehicle in which he was a passenger. At the time of the stop, law enforcement seized a rifle from the front seat of the vehicle, and a 12 gauge sawed off shotgun located in the back seat next to where Dolphus was sitting. He admitted to smoking marijuana on the date of the traffic stop and regularly prior to that time. A blood sample taken from Dolphus tested positive for methamphetamine and marijuana. He admitted that he owned both firearms and agreed to forfeit both of them and the ammunition seized by law enforcement. Besides his drug use, Dolphus also had a prior misdemeanor domestic violence conviction that prohibited him from possessing a firearm.
The failure to appear charges stem from Dolphus’ failure to attend his initial change of plea hearing scheduled for November 14, 2017.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotic Division. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Dolphus was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Sentenced for Distribution of a Controlled SubstanceRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man charged with Distribution of a Controlled Substance was sentenced on March 19, 2018, by U.S. District Judge Roberto A. Lange.
Eunice Jamiel Smart, age 28, was sentenced to 6 months in custody, followed by 3 years of supervised release, a $1,000 fine, and a special assessment of $100 to the Federal Victims Fund.
Smart was indicted by a federal grand jury on April 12, 2017, for Distribution of a Controlled Substance. Smart pled guilty on December 19, 2017.
On three occasions, September 10, 22, and 23, 2016, in Eagle Butte, Smart knowingly and intentionally distributed methamphetamine, a Schedule II controlled substance.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Smart was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Sentenced for ArsonRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Arson was sentenced on March 20, 2018, by U.S. District Judge Roberto A. Lange.
Stuart Turning Heart, age 44, was sentenced to 42 months in custody, followed by 3 years of supervised release, $790 in restitution to the victim, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Turning Heart was indicted by a federal grand jury on November 14, 2017. He pled guilty on December 29, 2017.
The conviction stems from an incident on August 14, 2017, when Turning Heart and his girlfriend had been drinking at a friend’s residence in Eagle Butte, and were asked to leave by the owner as they were being disrespectful and disorderly. The owner then went to the Dollar Store in Eagle Butte, and when he arrived back to his residence a short time later, it was on fire. Law enforcement was called immediately.
During the investigation, law enforcement learned that Turning Heart’s girlfriend saw Turning Heart come running from the victim’s home and say “I finally lit it, I lit the house on fire.” She looked up and saw smoke coming from the house. Law enforcement also interviewed two witnesses who stated that Turning Heart admitted to each of them separately that he had lit the home on fire and was laughing and joking about it.
ATF was called and completed an investigation. They concluded that the fire started at the back of the home where a mattress was lit on fire.
This case was investigated by the Cheyenne River Sioux Tribe and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Turning Heart was immediately turned over to the custody of the U.S. Marshals Service.
Dubuque Man Sentenced to Federal Prison for Unlawfully Possessing GunRead the Press Release
A convicted felon and drug user who unlawfully possessed a loaded gun was sentenced on March 26, 2018, to more than two years in federal prison.
Todd Richard McDonald, age 49, from Dubuque, Iowa, received the prison term after an October 16, 2017, guilty plea to possession of a firearm by a felon and drug user. At the guilty plea, McDonald admitted that on June 15, 2017, he possessed a loaded revolver. McDonald had previously been convicted of a felony theft offense in 1994. He was also an unlawful user of methamphetamine and marijuana. Officers from the Dubuque Police Department found the loaded gun in McDonald’s car during a traffic stop. McDonald also had ammunition, marijuana, and drug paraphernalia in the car.
McDonald was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. McDonald was sentenced to 27 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
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.
McDonald is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco, and Firearms.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-1033.
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Doctor Gets Three Years in Prison for Billing Medicare, Other Insurers $3 Million for Therapy Services Performed by Unqualified PersonnelRead the Press Release
NEWARK, N.J. – A doctor with offices in Paterson, Passaic, and Elizabeth was sentenced today to 36 months in prison for defrauding Medicare and private insurance companies out of $3 million by billing them for over 150,000 physical therapy sessions that were performed by unlicensed and unqualified personnel, U.S. Attorney Craig Carpenito announced.
Anthony J. Enrico, 60, of North Haledon, New Jersey, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of health care fraud. Judge McNulty imposed the sentence today in Newark federal court.
According to the documents filed in the case and statements made in court:
From January 2007 through May 2016, Enrico billed Medicare and other health insurance providers for physical therapy services that he supposedly provided to his patients. In order for them to be reimbursable, Medicare and private insurers required that physical therapy services be performed only by individuals like Enrico who met certain criteria based on training and certifications.
Enrico admitted that on more than 150,000 occasions, those services were performed at his direction by individuals who lacked the necessary training and certifications, resulting in him fraudulently obtaining approximately $3 million from Medicare and private insurers.
In addition to the prison term, Judge McNulty sentenced Enrico to three years of supervised release and ordered him to pay restitution of $3 million.U.S. Attorney Carpenito credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, and the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, with the investigation.
The government is represented by Senior Litigation Counsel Joseph N. Minish of the U.S. Attorney’s Health Care and Government Fraud Unit and Assistant U.S. Attorney Elaine Lou of the U.S. Attorney’s Office Criminal Division in Newark.
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: Christopher D. Adams Esq., Holmdel, New Jersey
District Man Indicted on Health Care Fraud ChargesRead the Press Release
WASHINGTON – Tarek Abou-Khatwa, also known as Dean Addem, 58, of Washington, D.C., has been indicted on charges that he defrauded CareFirst, a health care benefit program, and through his scheme, gained for himself in excess of $2 million.
The indictment was announced by U.S. Attorney Jessie K. Liu, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Stephen C. Taylor, Commissioner of the District of Columbia Department of Insurance, Securities and Banking.
Abou-Khatwa was arrested earlier today and pled not guilty to the charges this afternoon in the U.S. District Court for the District of Columbia. He was released on high-intensity supervision pending a status hearing set for April 10, 2018. The 24-count indictment charges him with violations of health care fraud, false statements to a health care benefit program, wire and mail fraud, and identity theft, which is a District of Columbia Code offense. The indictment also includes a forfeiture allegation seeking all proceeds that can be traced to the fraud scheme. The indictment was returned on March 20, 2018, and unsealed today.
According to the indictment, Abou-Khatwa defrauded CareFirst BlueCross BlueShield (“CareFirst”) a not-for-profit, private health care benefit program, offering health insurance plans for individuals and groups, as well as other products. Group health insurance coverage is a policy purchased by an employer and offered to eligible employees (and often to the employees’ family members) as a benefit of working for that employer.
The insurance premium rates for group contracts at issue in this indictment were based on multiple factors, the most significant one being the average age of the covered employees listed on the census and wage/tax forms for the employer groups. Abou-Khatwa, through his company, was a broker for CareFirst until May 2011, and received commissions from CareFirst as his compensation as a broker; later he continued to work through other CareFirst brokers.
According to the indictment, Abou-Khatwa defrauded CareFirst by creating fake groups of insured individuals, which included both fictitious names and real people with altered years of birth, to fraudulently obtain lower insurance premium quotes from CareFirst; once the premium rates were set, he had the CareFirst invoices sent directly to him instead of his clients, marked up the insurance premiums charged by CareFirst, and pocketed the difference between the two. Through this scheme, Abou-Khatwa allegedly fraudulently siphoned off in excess of $2 million in illegal proceeds, and diverted the proceeds of the fraud for his personal use and benefit.
The indictment further states that when CareFirst undertook audits of the employer groups, Abou-Khatwa submitted false employee census reports and wage/tax forms to CareFirst to justify the listings of employees in the shell company contracts.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, U.S. Attorney Liu, Assistant Director in Charge Vale, and Commissioner Taylor expressed appreciation for the work performed by Special Agents and forensic accountants from the FBI’s Washington Field Office and fraud investigators from the District of Columbia Department of Insurance, Securities and Banking. They also acknowledged the efforts of those working on the case from the U.S. Attorney’s Office, including former Forensic Accountant Crystal Boodoo and current Forensic Accountant Bryan Snitselaar; former Assistant U.S. Attorneys Christopher Kavanaugh, Philip A. Selden, and Richard DiZinno; Assistant U.S. Attorneys Kendra Briggs and Peter Lallas; former Paralegal Specialists John Lowell, Angela Lawrence, and Jessica Mundi; Paralegal Specialists Donna Galindo, Joshua Fein, and Aisha Keys, and Litigation Technology Specialist Claudia Gutierrez. Finally, they commended the work of Assistant U.S. Attorney Diane Lucas, who is assisting with forfeiture issues, and Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the case.
District Court Enters Permanent Injunction and Civil Penalty Against Utah-Based TelemarketersRead the Press Release
A federal court entered an order against three Utah-based telemarketing companies and their owner, the Department of Justice announced today. That order permanently enjoins them from engaging in deceptive and abusive telemarketing practices. The order also imposes a civil monetary penalty.
The Department filed a complaint in May 2011, alleging that the defendants, Feature Films for Families Inc., Corporations for Character L.C., Family Films of Utah Inc., and Forrest S. Baker III, committed widespread violations of the FTC Act and Telemarketing Sales Rule in various telemarketing campaigns to sell DVDs and movie tickets, and in charitable solicitation call campaigns. The complaint alleged that the defendants: (1) made multiple deceptive claims regarding the use of sales proceeds and charitable donations and the sales purpose of calls; (2) placed millions of calls to phone numbers on the National Do Not Call Registry under the guise of survey and informational calls; (3) ignored consumers’ prior do-not-call requests; (4) transmitted inaccurate caller-identification information; (5) failed to make required oral disclosures; and (6) abandoned calls.
“Unwanted telemarketing calls invade the privacy of American consumers,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the Federal Trade Commission to ensure telemarketers adhere to laws designed to protect against abusive and deceptive telemarketing practices.”
On May 25, 2016, following eight days of trial, a jury found the defendants committed more than 117 million knowing violations of the Telemarketing Sales Rule, including 99 million calls to phone numbers on the Do Not Call Registry, and more than four million additional calls in which they made misleading statements to induce DVD sales. The verdict was the first-ever in an action to enforce the Telemarketing Sales Rule and Do Not Call Registry rules.
The stipulated final order, entered by the district court, permanently enjoins the defendants from making material misrepresentations or omissions in the course of marketing entertainment products, services, or recordings, and from violating any provision of the Telemarketing Sales Rule. The stipulated order also imposes a civil penalty judgment of approximately $45.4 million, of which all but $487,735 is conditionally suspended based on the defendants’ inability to pay the entire penalty.
“As this case demonstrates, the FTC is aggressively pursuing law enforcement action against those that violate our nation’s Do Not Call rules, including those that use deception to secure sales or donations,” said Tom Pahl, Acting Director of the FTC’s Bureau of Consumer Protection.
This matter was handled by Trial Attorneys Arturo DeCastro and David A. Frank of the Civil Division’s Consumer Protection Branch, with assistance from Attorney Michael Tankersley of the Federal Trade Commission and the U.S. Attorney’s Office for the District of Utah.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch.
District Court Enters Permanent Injunction and Civil Penalty Against Utah-Based TelemarketersRead the Press Release
WASHINGTON – A federal court entered an order against three Utah-based telemarketing companies and their owner, the Department of Justice announced today. That order permanently enjoins them from engaging in deceptive and abusive telemarketing practices. The order also imposes a civil monetary penalty.
The Department filed a complaint in May 2011, alleging that the defendants, Feature Films for Families Inc., Corporations for Character L.C., Family Films of Utah Inc., and Forrest S. Baker III, committed widespread violations of the FTC Act and Telemarketing Sales Rule in various telemarketing campaigns to sell DVDs and movie tickets, and in charitable solicitation call campaigns. The complaint alleged that the defendants: (1) made multiple deceptive claims regarding the use of sales proceeds and charitable donations and the sales purpose of calls; (2) placed millions of calls to phone numbers on the National Do Not Call Registry under the guise of survey and informational calls; (3) ignored consumers’ prior do-not-call requests; (4) transmitted inaccurate caller-identification information; (5) failed to make required oral disclosures; and (6) abandoned calls.
“Unwanted telemarketing calls invade the privacy of American consumers,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the Federal Trade Commission to ensure telemarketers adhere to laws designed to protect against abusive and deceptive telemarketing practices.”
On May 25, 2016, following eight days of trial, a jury found the defendants committed more than 117 million knowing violations of the Telemarketing Sales Rule, including 99 million calls to phone numbers on the Do Not Call Registry, and more than four million additional calls in which they made misleading statements to induce DVD sales. The verdict was the first-ever in an action to enforce the Telemarketing Sales Rule and Do Not Call Registry rules.
The stipulated final order, entered by the district court, permanently enjoins the defendants from making material misrepresentations or omissions in the course of marketing entertainment products, services, or recordings, and from violating any provision of the Telemarketing Sales Rule. The stipulated order also imposes a civil penalty judgment of approximately $45.4 million, of which all but $487,735 is conditionally suspended based on the defendants’ inability to pay the entire penalty.
“As this case demonstrates, the FTC is aggressively pursuing law enforcement action against those that violate our nation’s Do Not Call rules, including those that use deception to secure sales or donations,” said Tom Pahl, Acting Director of the FTC’s Bureau of Consumer Protection.
This matter was handled by Trial Attorneys Arturo DeCastro and David A. Frank of the Civil Division’s Consumer Protection Branch, with assistance from Attorney Michael Tankersley of the Federal Trade Commission and the U.S. Attorney’s Office for the District of Utah.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch.
Davenport Man Sentenced for Theft of Government FundsRead the Press Release
DAVENPORT, Iowa-- On March 22, 2018, Timothy George Brandon Svejda, age 33, of Davenport, was sentenced by United States District Court Judge Stephanie M. Rose to three years of probation, after pleading guilty to theft of government funds from the United States Army National Guard Recruiting Assistance Program (G-RAP), announced United States Attorney Marc Krickbaum. Svejda was ordered to pay $9,000 in restitution.
In 2005, the United States Army National Guard created the G-RAP to assist in meeting recruitment goals. This program allowed National Guard soldiers to become independent contractors, referred to as Recruiting Assistants, and in return for compensation, recruit potential soldiers for enlistment. Depending on the enlistee’s grade and military occupational specialty, Recruiting Assistants could receive from $2,000 to $7,500 per new enlistee. This program was funded by the United States Government.
In 2006, Svejda was honorably discharged from the United States Army. From 2006 to 2011, Svejda was authorized to act as a Recruiting Assistant. Between December 2010 and July 2011, Svejda used the G-RAP to knowingly and intentionally apply for and claim fraudulent benefits for the recruitment of five potential soldiers and received $9,000 of funds belonging to the United States Government. At the time he applied for and received these benefits, Svejda knew he was not entitled to these funds.
This investigation was conducted by the United States Army, Criminal Investigation Command, Rock Island Fraud Resident Agency. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Connecticut Woman Sentenced to 33 Months for Bank RobberiesRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Cara M. Blewitt, 31, of Oakville, Connecticut was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr., to 33 months in prison and three years of supervised release for aiding and abetting bank robbery and Hobbs Act robbery. The charges arose from the robberies of a TD Bank branch and a Dollar Tree store. The defendant pleaded guilty on October 11, 2017.
Court records reveal that on May 28, 2017, the defendant’s husband, Seth Blewitt robbed a TD Bank branch in Bangor. He entered the bank, approached a teller, and said, “I’m actually robbing you. I want all of your money, no dye packs or GPS trackers.” He was wearing a black knit hat, sunglasses, gloves, and a plaid shirt. The teller complied and Seth Blewitt absconded with a bag of cash.
The next day, Seth Blewitt robbed the Dollar Tree store in Bangor with a shotgun. He was wearing a mask and sunglasses and he demanded that a cashier open the register. When the cashier said that she could not open the register, he struck the register with the shotgun. The cashier yelled for the manager and the manager opened the register and gave Seth Blewitt cash. He absconded with the cash.
The defendant served as the getaway driver for both robberies. Officers from the Bangor Police Department arrested the defendant and her husband within minutes of the Dollar Tree store robbery.
Seth J. Blewitt pleaded guilty to both robberies on November 30, 2017. He is scheduled to be sentenced on April 11, 2018.
The investigation was conducted by the Bangor Police Department; the Federal Bureau of Investigation; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Clairton Man Pleads Guilty in Cocaine Trafficking ConspiracyRead the Press Release
PITTSBURGH, PA. - A resident of Clairton, Pennsylvania, pleaded guilty in federal court to conspiring to distribute narcotics, United States Attorney Scott W. Brady announced today.
Kevin Jackson, 35, pleaded guilty to one count of conspiring with 20 other individuals, between March and August 2017, to distribute narcotics. In connection with the guilty plea, the court was advised that Jackson was responsible for the distribution of between 100 and 400 grams of heroin, which he purchased from his codefendant, Skyler Carter, in the Clairton, Pennsylvania area. He is the sixth of 21 defendants charged in the case to enter a plea of guilty.
Judge Arthur J. Schwab scheduled sentencing for August 30, 2018, at 9:30 a.m. Jackson has a prior felony drug conviction, and as such, he is subject to enhanced penalties. The law provides for a maximum total sentence of 30 years in prison, a fine of not more than $2 million, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will depend upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Jackson remains incarcerated pending the sentencing hearing.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Chamberlain Woman Charged with Embezzlement and TheftRead the Press Release
United States Attorney Ron Parsons announced that a Chamberlain, South Dakota, woman has been indicted by a federal grand jury for Embezzlement and Theft from an Indian Tribal Organization.
Lana Steele, age 53, was indicted on March 13, 2018. She appeared before U.S. Magistrate Judge Mark A. Moreno on March 19, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between November 2013 and November 2015, Steele embezzled, stole, willfully misapplied and permitted to be misapplied, and converted to her own use more than $1,000 of monies, funds, credits, goods, assets, and other property belonging to the Crow Creek District Business Committee, an Indian Tribal organization.
The charge is merely an accusation and Steele is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Steele was released on bond pending trial, which has not been set.